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REGISTERED NUMBER: SC281166 (Scotland)















HAMILTON ROSS GROUP LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2023






HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)






CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023




Page

Company Information 1

Group Strategic Report 2 to 3

Report of the Directors 4 to 5

Report of the Independent Auditors 6 to 9

Consolidated Statement of Comprehensive Income 10

Consolidated Statement of Financial Position 11

Company Statement of Financial Position 12

Consolidated Statement of Changes in Equity 13

Company Statement of Changes in Equity 14

Consolidated Statement of Cash Flows 15

Notes to the Consolidated Statement of Cash Flows 16 to 17

Notes to the Consolidated Financial Statements 18 to 34


HAMILTON ROSS GROUP LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 28 FEBRUARY 2023







DIRECTORS: Eric Hay Macleod Gardiner
James Steel
Jamie Hay Macleod Gardiner



SECRETARY: Jamie Hay Macleod Gardiner



REGISTERED OFFICE: 171 St. Leonard Street
Lanark
Lanarkshire
ML11 7DZ



REGISTERED NUMBER: SC281166 (Scotland)



AUDITORS: Milne Craig
Chartered accountants
Statutory auditor
Abercorn House
79 Renfrew Road
Paisley
Renfrewshire
PA3 4DA



BANKERS: Clydesdale Bank PLC
Dunn Square
1 Causeyside Street
Paisley
Renfrewshire
PA1 1BH

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023

The directors present their strategic report of the company and the group for the year ended 28 February 2023.

The principal activity of the group in the year under review was that of the distribution, sale and repair of motor vehicles and agricultural machinery.

REVIEW OF BUSINESS
In view of the current agricultural climate the development of the business of the group during the year and its position at the end of the year are considered reasonable.

The key financial highlights are as follows:

2023 2022 2021

Turnover growth 4.6% 9.7% (11% )
Profit before tax 1,634,287 1,314,507 680,481

The net assets of the group have increased from £9,753,370 at 28 February 2022 to £11,953,615 at 28 February 2023.

PRINCIPAL RISKS AND UNCERTAINTIES
Competitive pressure has increased in the marketplace and margins remain under pressure.

The directors seek to control overhead costs in order to maintain the profitability of the group.

Demand has been high following the easing of COVID-19 restrictions, however, it is anticipated that the cost of living crisis and volatile fuel prices will have an effect demand as well as profitability.

SECTION 172(1) STATEMENT
The directors are aware of their duty under s.172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be the most likely to promote the success of the Company for the benefit of its members as a whole and, in doing so, to have regard amongst other matters to:

The interest of the Company's employees;
The need to foster the Company's relationships with suppliers, customers and others;
The impact of the Company's operations on the community and the environment; and
The desirability of the Company maintaining a reputation for high standards of business conduct.

Employees
The Company's employees are key to delivering the overall strategy of the Company. Ensuring that the business has the right values and culture is of paramount importance to the continued success of the business.

The business engages on a regular basis with all of its employees via regular meetings and appraisals.

Customers
The Company is committed to delivering a professional customer experience and engages with customers regularly.

Suppliers
Successful operation is dependant on the continued maintenance of strong relationships with suppliers through regular engagement.

Community and environment
The directors are committed to ensuring the Company is environmentally responsible, a good neighbour and an good workplace.

FUTURE DEVELOPMENTS
The directors aim to follow management policies which will enhance the normal activities of the business.


HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023

FINANCIAL INSTRUMENTS
The group's principal financial instruments comprise bank balances, trade creditors, other loans and loans to group undertakings. The main purpose of these instruments is to finance the group's operations.

Loans to group undertakings are interest free and will only be repaid as cashflow allows.

Trade debtors are managed in respect of credit and cashflow risk by policies concerning the credit offered to customers and the monitoring of amounts outstanding.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Other loans are short term and are repaid when the stock items they are financing are sold.

ENVIRONMENT
The group recognises the importance of its environmental responsibilities, and has policies in place to manage its impact on the environment.

ON BEHALF OF THE BOARD:





Eric Hay Macleod Gardiner - Director


21 November 2023

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 28 FEBRUARY 2023

The directors present their report with the financial statements of the company and the group for the year ended 28 February 2023.

PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of the distribution, sale and repair of motor vehicles and agricultural machinery.

DIVIDENDS
No dividends will be distributed for the year ended 28 February 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 March 2022 to the date of this report.

Eric Hay Macleod Gardiner
James Steel

Other changes in directors holding office are as follows:

Bryce Smith - resigned 31 May 2022
Jamie Hay Macleod Gardiner - appointed 26 August 2022

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
Delivery of excellent service and top quality goods to our customers is key to the success of the business in order to retain, grow and acquire new business. We hold regular communications with suppliers, customers and others in the industry to enable an open and honest communication to talk about innovations in the industry and give an opportunity to share ideas. The Group maintains excellent relationships with all of our suppliers and communicate with them on a very regular basis.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 28 FEBRUARY 2023


AUDITORS
The auditors, Milne Craig, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Eric Hay Macleod Gardiner - Director


21 November 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HAMILTON ROSS GROUP LIMITED

Opinion
We have audited the financial statements of Hamilton Ross Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 28 February 2023 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HAMILTON ROSS GROUP LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HAMILTON ROSS GROUP LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company, and determined that the most significant are those that relate to the form and content of the financial statements such as the accounting policies and the UK Companies Act 2006.

We assessed how the Company is complying with these frameworks by observing the oversight of those charged with governance, the culture of honesty and ethical behaviours and a strong emphasis placed on fraud prevention, which may reduce opportunities for fraud to take place, and fraud deterrence, which could persuade individuals not to commit fraud because of the likelihood of detection and punishment.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur, by making an assessment of the key fraud risks to the Company, and the manner in which such risks may occur in practice, based on our previous knowledge of the Company, as well as an assessment of the current business environment.

Based on this understanding, we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered higher, we performed audit procedures to address each identified fraud risk, including management override of controls. These procedures included testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud or error. We evaluated the design and operational effectiveness of controls put in place to address the risks identified, or that otherwise prevent, deter and detect fraud.

In addition, our audit procedures included enquiring of management concerning actual and potential litigation and claims, and performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. We addressed the fraud risk in relation to revenue recognition by testing completeness and cut off of income.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards.

As with any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance, and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HAMILTON ROSS GROUP LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Kirsty Mackie BAcc CA (Senior Statutory Auditor)
for and on behalf of Milne Craig
Chartered accountants
Statutory auditor
Abercorn House
79 Renfrew Road
Paisley
Renfrewshire
PA3 4DA

21 November 2023

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

CONSOLIDATED
STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023

28/2/23 28/2/22
Notes £    £   

TURNOVER 3 48,183,914 46,061,985

Cost of sales (41,188,833 ) (38,523,935 )
GROSS PROFIT 6,995,081 7,538,050

Distribution costs (3,063 ) (949 )
Administrative expenses (5,540,198 ) (6,309,744 )
1,451,820 1,227,357

Other operating income 433,815 202,810
OPERATING PROFIT 1,885,635 1,430,167

Interest receivable and similar income - 2,128
1,885,635 1,432,295

Interest payable and similar expenses 5 (251,348 ) (117,788 )
PROFIT BEFORE TAXATION 6 1,634,287 1,314,507

Tax on profit 7 (308,334 ) (326,745 )
PROFIT FOR THE FINANCIAL YEAR 1,325,953 987,762

OTHER COMPREHENSIVE INCOME
Gain on revaluation of freehold property 889,292 -
Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

889,292

-
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,215,245

987,762

Profit attributable to:
Owners of the parent 1,325,953 987,762

Total comprehensive income attributable to:
Owners of the parent 2,215,245 987,762

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
28 FEBRUARY 2023

28/2/23 28/2/22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 4,459,548 3,008,830
Investments 11 - -
4,459,548 3,008,830

CURRENT ASSETS
Stocks 12 20,734,251 17,253,276
Debtors 13 5,658,019 5,029,019
Cash in hand 2,137 3,168
26,394,407 22,285,463
CREDITORS
Amounts falling due within one year 14 17,847,745 15,080,265
NET CURRENT ASSETS 8,546,662 7,205,198
TOTAL ASSETS LESS CURRENT
LIABILITIES

13,006,210

10,214,028

CREDITORS
Amounts falling due after more than one
year

15

(566,383

)

(254,352

)

PROVISIONS FOR LIABILITIES 20 (486,212 ) (206,306 )
NET ASSETS 11,953,615 9,753,370

CAPITAL AND RESERVES
Called up share capital 21 63,732 65,366
Share premium 22 401,859 401,859
Fair value reserve 22 1,342,203 1,382,577
Capital redemption reserve 22 130,402 128,768
Retained earnings 22 10,015,419 7,774,800
SHAREHOLDERS' FUNDS 11,953,615 9,753,370

The financial statements were approved by the Board of Directors and authorised for issue on 21 November 2023 and were signed on its behalf by:





Eric Hay Macleod Gardiner - Director


HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

COMPANY STATEMENT OF FINANCIAL POSITION
28 FEBRUARY 2023

28/2/23 28/2/22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 2,243,413 -
Investments 11 502,994 502,994
2,746,407 502,994

CURRENT ASSETS
Debtors 13 95,637 -
Cash at bank 4,611 -
100,248 -
CREDITORS
Amounts falling due within one year 14 1,474,837 100
NET CURRENT LIABILITIES (1,374,589 ) (100 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,371,818

502,894

PROVISIONS FOR LIABILITIES 20 160,449 -
NET ASSETS 1,211,369 502,894

CAPITAL AND RESERVES
Called up share capital 21 63,732 65,366
Fair value reserve 22 889,292 -
Capital redemption reserve 22 1,634 -
Retained earnings 22 256,711 437,528
SHAREHOLDERS' FUNDS 1,211,369 502,894

Company's loss for the financial year (165,817 ) -

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 21 November 2023 and were signed on its behalf by:





Eric Hay Macleod Gardiner - Director


HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023

Called up
share Retained Share
capital earnings premium
£    £    £   

Balance at 1 March 2021 65,366 6,787,038 401,859

Changes in equity
Total comprehensive income - 987,762 -
Balance at 28 February 2022 65,366 7,774,800 401,859

Changes in equity
Share buyback (1,634 ) (15,000 ) -
Total comprehensive income - 2,255,619 -
Balance at 28 February 2023 63,732 10,015,419 401,859
Fair Capital
value redemption Total
reserve reserve equity
£    £    £   

Balance at 1 March 2021 1,382,577 128,768 8,765,608

Changes in equity
Total comprehensive income - - 987,762
Balance at 28 February 2022 1,382,577 128,768 9,753,370

Changes in equity
Share buyback - 1,634 (15,000 )
Total comprehensive income (40,374 ) - 2,215,245
Balance at 28 February 2023 1,342,203 130,402 11,953,615

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023

Called up Fair Capital
share Retained value redemption Total
capital earnings reserve reserve equity
£    £    £    £    £   

Balance at 1 March 2021 65,366 437,528 - - 502,894

Changes in equity
Balance at 28 February 2022 65,366 437,528 - - 502,894

Changes in equity
Share buyback (1,634 ) (15,000 ) - 1,634 (15,000 )
Total comprehensive income - (165,817 ) 889,292 - 723,475
Balance at 28 February 2023 63,732 256,711 889,292 1,634 1,211,369

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023

28/2/23 28/2/22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (2,079,773 ) (2,682,080 )
Interest paid (249,009 ) (101,418 )
Interest element of hire purchase payments
paid

(2,339

)

(16,370

)
Tax paid (217,364 ) (129,176 )
Net cash from operating activities (2,548,485 ) (2,929,044 )

Cash flows from investing activities
Purchase of tangible fixed assets (1,316,182 ) (229,873 )
Purchase of financed stock 2,141,092 2,315,896
Sale of tangible fixed assets 1,249,204 31,346
Interest received - 2,128
Net cash from investing activities 2,074,114 2,119,497

Cash flows from financing activities
New loans in year 340,000 -
Capital repayments in year 347,778 (161,926 )
Amount introduced by directors 18,340 85,000
Amount withdrawn by directors (25,000 ) (20,770 )
Share buyback (15,000 ) -
Net cash from financing activities 666,118 (97,696 )

Increase/(decrease) in cash and cash equivalents 191,747 (907,243 )
Cash and cash equivalents at beginning of
year

2

(296,164

)

611,079

Cash and cash equivalents at end of year 2 (104,417 ) (296,164 )

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
28/2/23 28/2/22
£    £   
Profit before taxation 1,634,287 1,314,507
Depreciation charges 394,517 422,048
Profit on disposal of fixed assets (888,964 ) (24,839 )
Finance costs 251,348 117,788
Finance income - (2,128 )
1,391,188 1,827,376
Increase in stocks (3,480,975 ) (3,976,541 )
Increase in trade and other debtors (622,338 ) (643,114 )
Increase in trade and other creditors 632,352 110,199
Cash generated from operations (2,079,773 ) (2,682,080 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 28 February 2023
28/2/23 1/3/22
£    £   
Cash and cash equivalents 2,137 3,168
Bank overdrafts (106,554 ) (299,332 )
(104,417 ) (296,164 )
Year ended 28 February 2022
28/2/22 1/3/21
£    £   
Cash and cash equivalents 3,168 611,079
Bank overdrafts (299,332 ) -
(296,164 ) 611,079


HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023

3. ANALYSIS OF CHANGES IN NET DEBT

At 1/3/22 Cash flow At 28/2/23
£    £    £   
Net cash
Cash at bank and in hand 3,168 (1,031 ) 2,137
Bank overdrafts (299,332 ) 192,778 (106,554 )
(296,164 ) 191,747 (104,417 )
Debt
Finance leases (432,077 ) (347,778 ) (779,855 )
Debts falling due within 1 year (8,999,610 ) (2,481,095 ) (11,480,705 )
(9,431,687 ) (2,828,873 ) (12,260,560 )
Total (9,727,851 ) (2,637,126 ) (12,364,977 )

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

1. STATUTORY INFORMATION

Hamilton Ross Holdings Limited is a private company, limited by shares, registered in Scotland. The Company’s registered number is SC281166 and registered office address is 171 St Leonard Street, Lanark, ML11 7DZ.

The nature of the Company's operations and its principal activities are the distribution, sale, and repair of motor vehicles and agricultural machinery.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements are prepared in sterling, which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Basis of consolidation
The group accounts consolidate the accounts of Hamilton Ross Holdings Limited and its subsidiaries, Hamilton Bros. (Engineering) Limited, Reekie Ltd and Daniel Ross (Engineers) Limited.

No profit and loss account is presented for Hamilton Ross Holdings Limited as permitted by Section 408 of the Companies Act 2006.

Critical accounting judgements and key sources of estimation uncertainty
In preparing these financial statements, the directors have made the following judgements:

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Assets are considered for indications of impairment. If required an impairment review will be carried out and a decision made on possible impairment. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Bad debts are provided for where objective evidence of the need for a provision exists.

Inventories are assessed for evidence of obsolescence and a provision is made against any inventory unlikely to be sold, or where stock is sold post year end at a loss.

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

2. ACCOUNTING POLICIES - continued

Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Consideration is given to the point at which the company is entitled to receive the income, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue from the provision of services is recognised in the period in which the services are provided when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;
- it is probable that the Company will receive the consideration due;
- the costs incurred can be measured reliably.

Goodwill
Goodwill is the difference between the fair value of the consideration given on the acquisition of a business and the aggregate fair value of the separable net assets required. It is being amortised through the profit and loss account in equal annual instalments over it's estimated economic life of 5 years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 3% on cost
Plant and machinery - 33% on cost, 20% on cost, 12.5% on cost and 10% on cost
Fixtures and fittings - 50% on cost, 25% on cost, 10% on cost and 5% on cost
Motor vehicles - 25% on cost and at varying rates on cost
Computer equipment - 20% on cost

Individual freehold and leasehold properties are revalued to fair value every year with the surplus or deficit on book value being transferred to the revaluation reserve.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The Company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 ' Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Company's balance sheet when the Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transactions costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.


HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

2. ACCOUNTING POLICIES - continued
Taxation
Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

With the exception of changes arising on the initial recognition of a business combination, the tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income).

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

Deferred tax assets and deferred tax liabilities are offset only if the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously.

Leases
Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the assets have, passed to the company, and hire purchase contracts are capitalised in the balance sheet and are depreciated over their useful lives. The capital element of future obligations under the leases and hire purchase contracts are included as liabilities in the balance sheet. The interest element of the rental obligations is charged to the profit and loss account over the periods of the lease and hire purchase contracts, and represent a constant proportion of the balance of capital repayments outstanding.

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

The company operates a Group Personal Pension Scheme to which employers contributions are set. The overall contribution paid by the employer is therefore known and is a fixed percentage of the total salary roll for each given year.

Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

2. ACCOUNTING POLICIES - continued

Impairment of assets
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

Non-financial assets
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Financial assets
For financial assets carried at amortised cost, the amount of impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal.

An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

28/2/23 28/2/22
£    £   
Rendering of services 48,183,914 46,061,985
48,183,914 46,061,985

An analysis of turnover by geographical market is given below:

28/2/23 28/2/22
£    £   
United Kingdom 48,183,914 46,061,985
48,183,914 46,061,985

Segmental analysis has not been provided as the directors consider that such disclosure would be prejudicial to the business.

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

4. EMPLOYEES AND DIRECTORS
28/2/23 28/2/22
£    £   
Wages and salaries 3,234,665 3,172,877
Social security costs 420,773 343,460
Other pension costs 175,610 263,070
3,831,048 3,779,407

The average number of employees during the year was as follows:
28/2/23 28/2/22

Office and management 75 75
Mechanics, counter staff and forecourt 76 68
151 143

28/2/23 28/2/22
£    £   
Directors' remuneration 319,531 201,619
Directors' pension contributions to money purchase schemes 39,077 110,600

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

Information regarding the highest paid director is as follows:
28/2/23 28/2/22
£    £   
Emoluments etc 160,000 151,000
Pension contributions to money purchase schemes 35,608 35,600

5. INTEREST PAYABLE AND SIMILAR EXPENSES
28/2/23 28/2/22
£    £   
Stock line interest 245,892 97,514
Bank loan interest 3,117 3,902
Interest on corporation tax - 2
Hire purchase 2,339 16,370
251,348 117,788

6. PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

28/2/23 28/2/22
£    £   
Depreciation - owned assets 207,595 221,705
Depreciation - assets on hire purchase contracts 186,921 212,057
Profit on disposal of fixed assets (888,964 ) (24,839 )
Auditors' remuneration 30,450 33,813

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
28/2/23 28/2/22
£    £   
Current tax:
UK corporation tax 45,367 232,600
Adjustment in respect of
previous periods - 176
Adjustments in respect of previous periods (16,939 ) (2,316 )
Total current tax 28,428 230,460

Deferred tax 279,906 96,285
Tax on profit 308,334 326,745

UK corporation tax has been charged at 19 % (2022 - 19 %).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

28/2/23 28/2/22
£    £   
Profit before tax 1,634,287 1,314,507
Profit multiplied by the standard rate of corporation tax in the UK of 19 %
(2022 - 19 %)

310,515

249,756

Effects of:
Expenses not deductible for tax purposes (8,834 ) (115 )
Adjustments to tax charge in respect of previous periods (16,939 ) (2,140 )
Movement in unprovided deferred tax (1,917 ) 20,348
Deferred tax rate changes 78,183 50,170
Adjustment in respect of prior years deferred tax (62,345 ) 8,726
Indexation allowances and rebasing 9,671 -
Total tax charge 308,334 326,745

Tax effects relating to effects of other comprehensive income

28/2/23
Gross Tax Net
£    £    £   
Gain on revaluation of freehold property 889,292 - 889,292

8. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

9. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 March 2022
and 28 February 2023 62,114
AMORTISATION
At 1 March 2022
and 28 February 2023 62,114
NET BOOK VALUE
At 28 February 2023 -
At 28 February 2022 -

10. TANGIBLE FIXED ASSETS

Group
Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
COST OR VALUATION
At 1 March 2022 2,844,125 1,358,370 427,869
Additions 493,413 8,239 -
Disposals (415,000 ) (194,892 ) -
Revaluations 573,256 - -
At 28 February 2023 3,495,794 1,171,717 427,869
DEPRECIATION
At 1 March 2022 802,409 1,153,456 376,641
Charge for year 77,354 55,873 8,405
Eliminated on disposal (137,988 ) (188,456 ) -
Revaluation adjustments (316,036 ) - -
At 28 February 2023 425,739 1,020,873 385,046
NET BOOK VALUE
At 28 February 2023 3,070,055 150,844 42,823
At 28 February 2022 2,041,716 204,914 51,228

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

10. TANGIBLE FIXED ASSETS - continued

Group

Motor Computer
vehicles equipment Totals
£    £    £   
COST OR VALUATION
At 1 March 2022 2,008,465 265,445 6,904,274
Additions 814,530 - 1,316,182
Disposals (294,331 ) (12,122 ) (916,345 )
Revaluations - - 573,256
At 28 February 2023 2,528,664 253,323 7,877,367
DEPRECIATION
At 1 March 2022 1,335,313 227,625 3,895,444
Charge for year 237,405 15,479 394,516
Eliminated on disposal (219,083 ) (10,578 ) (556,105 )
Revaluation adjustments - - (316,036 )
At 28 February 2023 1,353,635 232,526 3,417,819
NET BOOK VALUE
At 28 February 2023 1,175,029 20,797 4,459,548
At 28 February 2022 673,152 37,820 3,008,830

Cost or valuation at 28 February 2023 is represented by:

Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
Valuation in 2023 573,256 - -
Cost 2,922,538 1,171,717 427,869
3,495,794 1,171,717 427,869

Motor Computer
vehicles equipment Totals
£    £    £   
Valuation in 2023 - - 573,256
Cost 2,528,664 253,323 7,304,111
2,528,664 253,323 7,877,367

The net book value of tangible fixed assets includes £ 922,487 (2022 - £ 426,386 ) in respect of assets held under hire purchase contracts.

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

10. TANGIBLE FIXED ASSETS - continued

Company
Freehold
property
£   
COST OR VALUATION
Additions 493,413
Revaluations 573,256
Reclassification/transfer 1,176,744
At 28 February 2023 2,243,413
DEPRECIATION
Revaluation adjustments (316,036 )
Reclassification/transfer 316,036
At 28 February 2023 -
NET BOOK VALUE
At 28 February 2023 2,243,413

Cost or valuation at 28 February 2023 is represented by:

Freehold
property
£   
Valuation in 2023 573,256
Cost 1,670,157
2,243,413

11. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 March 2022
and 28 February 2023 502,994
NET BOOK VALUE
At 28 February 2023 502,994
At 28 February 2022 502,994

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

11. FIXED ASSET INVESTMENTS - continued

The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Subsidiaries

Hamilton Bros. (Engineering) Limited
Registered office: 171 St Leonard Street, Lanark, ML11 7DZ
Nature of business: Sale and servicing of machinery
%
Class of shares: holding
Ordinary Shares 100.00
28/2/23 28/2/22
£    £   
Aggregate capital and reserves 6,377,997 5,937,305
Profit for the year 440,692 468,325

Daniel Ross (Engineers) Limited
Registered office: 171 St Leonard Street, Lanark, ML11 7DZ
Nature of business: Sale and servicing of machinery
%
Class of shares: holding
Ordinary Shares 100.00
28/2/23 28/2/22
£    £   
Aggregate capital and reserves 3,825,915 2,791,988
Profit for the year 1,033,927 139,653

Reekie Limited
Registered office: 171 St Leonard Street, Lanark, ML11 7DZ
Nature of business: Sale and servicing of machinery
%
Class of shares: holding
Ordinary Shares 100.00
28/2/23 28/2/22
£    £   
Aggregate capital and reserves 1,024,183 1,024,183
Profit for the year - 379,783


12. STOCKS

Group
28/2/23 28/2/22
£    £   
Stocks 2,724,841 2,608,549
Finished goods 18,009,410 14,644,727
20,734,251 17,253,276

At the balance sheet date unit stock includes stock to the value of 11,568,902 (2022 - £8,782,262) which were held under hire purchase contracts and finance loans. All amounts become repayable on sale of the related stock items.

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
28/2/23 28/2/22 28/2/23 28/2/22
£    £    £    £   
Trade debtors 4,869,343 4,365,815 - -
Amounts owed by group undertakings 11,034 - - -
Other debtors 649,279 492,926 - -
Directors' current accounts 34,930 28,270 - -
VAT - 44,123 95,637 -
Prepayments 93,433 97,885 - -
5,658,019 5,029,019 95,637 -

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
28/2/23 28/2/22 28/2/23 28/2/22
£    £    £    £   
Bank loans and overdrafts (see note 16) 444,571 299,332 338,014 -
Other loans (see note 16) 11,142,688 8,999,610 - -
Hire purchase contracts (see note 17) 213,472 177,725 - -
Trade creditors 3,558,839 3,044,438 - -
Amounts owed to group undertakings - - 1,136,723 -
Corporation tax 43,614 232,550 - -
Social security and other taxes 177,830 271,023 - -
VAT 38,165 - - -
Other creditors 100 8,873 100 100
Accrued expenses 2,228,466 2,046,714 - -
17,847,745 15,080,265 1,474,837 100

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group
28/2/23 28/2/22
£    £   
Hire purchase contracts (see note 17) 566,383 254,352

16. LOANS

An analysis of the maturity of loans is given below:

Group Company
28/2/23 28/2/22 28/2/23 28/2/22
£    £    £    £   
Amounts falling due within one year or on demand:
Bank overdrafts 106,554 299,332 - -
Bank loans 338,017 - 338,014 -
Other loans 11,142,688 8,999,610 - -
11,587,259 9,298,942 338,014 -

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
28/2/23 28/2/22
£    £   
Gross obligations repayable:
Within one year 241,788 189,215
Between one and five years 641,643 267,450
883,431 456,665

Finance charges repayable:
Within one year 28,316 11,490
Between one and five years 75,260 13,098
103,576 24,588

Net obligations repayable:
Within one year 213,472 177,725
Between one and five years 566,383 254,352
779,855 432,077

18. SECURED DEBTS

The following secured debts are included within creditors:

Group
28/2/23 28/2/22
£    £   
Bank overdraft 106,554 299,332
Bank loans 338,017 -
Hire purchase contracts 779,855 432,077
Other loans 11,142,688 8,999,610
12,367,114 9,731,019

The bank overdraft facility and bank loan are secured by a supported guarantee held by Daniel Ross (Engineers) Limited, Hamilton Bros. (Engineering) Limited, Reekie Limited and Hamilton Ross Holdings Limited, a floating charge over the group assets and a legal first charge over properties held at 171 St Leonard Street, Lanark and Cupar Trading Estate, Cupar, Fife KY15 4SX.

Hire purchase creditors are secured over the asset to which they relate.

Other loans are secured over the stock to which they relate.

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

19. FINANCIAL INSTRUMENTS

The carrying amount for each category of financial instrument is as follows:


2023 2022
£ £
Financial assets
Financial assets that are debt instruments measured at amortised cost 5,564,586 4,887,011
Cash and cash equivalents 2,137 3,168
5,566,723 4,890,179
Financial liabilities
Financial liabilities measured at amortised cost 15,926,053 12,784,330

20. PROVISIONS FOR LIABILITIES

Group Company
28/2/23 28/2/22 28/2/23 28/2/22
£    £    £    £   
Deferred tax 486,212 206,306 160,449 -

Group
Deferred
tax
£   
Balance at 1 March 2022 206,306
Originating and reversal of
timing differences 279,906
Balance at 28 February 2023 486,212

Company
Deferred
tax
£   
Origination and reversal of
timing differences 160,449
Balance at 28 February 2023 160,449

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

20. PROVISIONS FOR LIABILITIES - continued

Group

Deferred taxation provided for at 25% (2022 - 25%) in the financial statements is set out below:

2023 2022
£ £

Accelerated capital allowances 327,905 206,818
Other timing differences 158,307 (517 )
486,212 206,301

Company

Deferred taxation provided for at 25% (2022 - 25%) in the financial statements is set out below:

2023 2022
£ £

Other timing differences 160,449 -

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 28/2/23 28/2/22
value: £    £   
65,366 Ordinary 1 63,732 65,366

During the year 1,634 ordinary shares with a nominal value of £1 each were bought back and subsequently cancelled by the company.

22. RESERVES

Group
Fair Capital
Retained Share value redemption
earnings premium reserve reserve Totals
£    £    £    £    £   

At 1 March 2022 7,774,800 401,859 1,382,577 128,768 9,688,004
Profit for the year 1,325,953 1,325,953
Revaluation in year 929,666 - (40,374 ) - 889,292
Share buy back (15,000 ) - - 1,634 (13,366 )
At 28 February 2023 10,015,419 401,859 1,342,203 130,402 11,889,883

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

22. RESERVES - continued

Company
Fair Capital
Retained value redemption
earnings reserve reserve Totals
£    £    £    £   

At 1 March 2022 437,528 - - 437,528
Deficit for the year (165,817 ) (165,817 )
Revaluation in year - 889,292 - 889,292
Share buy back (15,000 ) - 1,634 (13,366 )
At 28 February 2023 256,711 889,292 1,634 1,147,637

Called up share capital
Represents the nominal value of shares that have been issued.

Share premium
Includes any premiums received on issue of share capital.

Capital redemption reserve
Includes amounts arising from the redemption of shares from capital.

Fair value reserves
Where tangible fixed assets are revalued or reclassified as investment property, the cumulative increase in the fair value of the property at the date of reclassification in excess of any previous impairment losses in included in the other reserve.

Profit and loss account
Includes all current and prior year retained profits and losses less dividends.

23. PENSION COMMITMENTS

The company operates a Group Personal Pension Scheme to which employer contributions are set at 5% for qualifying employees. The overall contribution paid by the employer is therefore known and is a fixed percentage of the total salary roll at each given year.

The charge to the profit and loss account for the year ended 28 February 2023 in respect of the scheme was £175,611 (2022 - £263,070). There was £nil contributions payable to the fund at the year end (2022 - £nil).

24. ULTIMATE PARENT COMPANY

The share capital of the company's ultimate parent company, Daniel Ross (Channel Islands) Limited, is held in trust and no individual is considered by the directors to be the ultimate controlling party.

25. CONTINGENT LIABILITIES

Bank Guarantees
Cross bank guarantees exist between all group companies. The gross bank borrowing at 28 February 2023 amounted to £444,571 (2022 - £299,332).

Contract Hire Agreements
Under the terms of the contract hire agreements the group, has an obligation to purchase equipment at the cessation of the agreement, at a pre agreed price, if the customer wishes to sell back.

In the opinion of the directors the guaranteed buy back values will not be greater than the market values and therefore there should be no net liability to the group arising from this obligation.

HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

26. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The directors benefited from an interest free loan from the company, amounting to £34,930 at 28 February 2023 (2022 - £28,270), the balance will be repaid in full within 9 months of the year end.

27. RELATED PARTY DISCLOSURES

During the year, a total of key management personnel compensation of £ 394,431 (2022 - £ 226,975 ) was paid.