REGISTERED NUMBER: SC332393 (Scotland) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 November 2022 |
for |
Rosskeen Holdings Limited |
REGISTERED NUMBER: SC332393 (Scotland) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 November 2022 |
for |
Rosskeen Holdings Limited |
Rosskeen Holdings Limited (Registered number: SC332393) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 November 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
Rosskeen Holdings Limited |
Company Information |
for the Year Ended 30 November 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Jonathan Neil Innes FCCA |
AUDITORS: |
Chartered Certified Accountants |
and Statutory Auditors |
9 Ardross Street |
Inverness |
IV3 5NN |
Rosskeen Holdings Limited (Registered number: SC332393) |
Group Strategic Report |
for the Year Ended 30 November 2022 |
The directors present their strategic report of the company and the group for the year ended 30 November 2022. |
REVIEW OF BUSINESS |
The principal activities of the company in the year under review were: |
providing scaffolding and access solutions to the oil and gas industry, civil construction and shipping and boating sector; |
specialist transport and road haulage services; |
shrinkwrap and containment services; |
painting and decorating services through the Ian Dingwall painting division. |
The trading results for the period, the financial position of the company and the transfer to reserves are shown in the annexed financial statements. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The spread of COVID-19 had a major impact on the UK economy which is gradually emerging from the impact of the restrictions introduced to control the spread of the virus. |
The company is confident that the increased trading activity will continue and will result in further development in trading performance going forward. |
OVERVIEW OF PERFORMANCE IN THE YEAR |
Although the impact of the COVID-19 pandemic has continued to impact on trading conditions, improvements in turnover and profitability have been achieved during the year. Turnover has increased from £7.9m to £9.1m. The group has recorded a profit of £189,629 compared to £338 in the previous year. |
FINANCIAL KEY PERFORMANCE INDICATORS |
The company is a financially focused business, which monitors performance using a range of measures. |
KPI | Aim | 2022 | 2021 |
Gross Profit | Maintain and strengthen margin | 16.9% | 14.7% |
Net Profit/(Loss)before tax | Deliver sustainable profitability | 190k | £0.3k |
Capital Expenditure | Reinvest retained profits | 538k | £369k |
The directors also review monthly aged debtor reports and monitor cash availability against forecast expenditure levels. |
FUTURE DEVELOPMENTS |
The group companies will continue to support and develop their current client base and build on their existing relationships, along with seeking to expand their services to potential new customers. |
ON BEHALF OF THE BOARD: |
Rosskeen Holdings Limited (Registered number: SC332393) |
Report of the Directors |
for the Year Ended 30 November 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 30 November 2022. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 November 2022 will be £ 173,000 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 December 2021 to the date of this report. |
GOING CONCERN |
These financial statements have been prepared on a going concern basis. The directors are required to state whether it is appropriate to adopt the going concern basis of accounting in preparing the financial statements, and to identify any material uncertainties as to the Group's ability to continue as a going concern over a period of at least 12 months from the date of approval of the financial statements. The period of management's going concern assessment is the period to 30 November 2024. |
The restrictions imposed since the arrival of the Coronavirus pandemic has had a major impact on the economy and the sectors in which the company operates and was particularly pronounced in the oil and gas sector where expected scaffolding contracts have been delayed or cancelled. The results for the current year show an improvement with increased turnover and increased profits. Turnover has increased by 16.6% from £7.8m to £9.1m and the profit after tax has increased to £190k from £0.3k in the previous year. |
The group's historical trading results have created substantial reserves and the cash and net asset position remain strong. The group held bank balances of £1,295k and net assets of £5.3m at 30 November 2022. |
Turnover has increased since March 2021 and the Directors are confident that the continued easing of restrictions will result in this pattern continuing which will substantially improve the trading performance. |
The Group has reviewed its forecasts and projections for the going concern assessment period to November 2024. Based on the anticipated demand for services, the Directors have a reasonable expectation that the y Group has adequate resources to continue in operational existence for the period to 30 November 2024. The Group therefore continues to adopt the going concern basis in preparing its financial statements. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen in accordance with s.414C(11) of the Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of review of the business, future developments and Key Performance Indicators. |
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; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
Rosskeen Holdings Limited (Registered number: SC332393) |
Report of the Directors |
for the Year Ended 30 November 2022 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
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. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Rosskeen Holdings Limited |
Opinion |
We have audited the financial statements of Rosskeen Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2022 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 30 November 2022 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 |
Rosskeen Holdings 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 pages three and 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 |
Rosskeen Holdings 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
The extent to which the audit was considered capable of detecting irregularities including fraud |
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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
The extent to which the audit was considered capable of detecting irregularities including fraud |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with Directors and other management, and from our wider knowledge and experience of the sector; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company/group, including the Companies Act 2006, FRS 102 |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the group's and the parent company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
Audit response to risks identified |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 2 were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- enquiring of management as to actual and potential litigation and claims; and |
- requesting correspondence with HMRC |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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 |
Rosskeen Holdings 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. |
for and on behalf of |
Chartered Certified Accountants |
and Statutory Auditors |
9 Ardross Street |
Inverness |
IV3 5NN |
Rosskeen Holdings Limited (Registered number: SC332393) |
Consolidated Statement of Comprehensive Income |
for the Year Ended 30 November 2022 |
2022 | 2021 |
Notes | £ | £ |
TURNOVER | 3 | 9,119,907 | 7,819,736 |
Cost of sales | 7,576,523 | 6,670,794 |
GROSS PROFIT | 1,543,384 | 1,148,942 |
Administrative expenses | 1,265,439 | 1,115,924 |
277,945 | 33,018 |
Other operating income | 14,305 | 4,500 |
OPERATING PROFIT | 5 | 292,250 | 37,518 |
Interest payable and similar expenses | 6 | 4,594 | 5,071 |
PROFIT BEFORE TAXATION | 287,656 | 32,447 |
Tax on profit | 7 | 106,949 | 32,109 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
180,707 |
338 |
Profit attributable to: |
Owners of the parent | 180,707 | 338 |
Total comprehensive income attributable to: |
Owners of the parent | 180,707 | 338 |
Rosskeen Holdings Limited (Registered number: SC332393) |
Consolidated Balance Sheet |
30 November 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | - | - |
Tangible assets | 11 | 2,562,788 | 2,521,342 |
Investments | 12 | - | - |
2,562,788 | 2,521,342 |
CURRENT ASSETS |
Stocks | 13 | 402,021 | 446,660 |
Debtors | 14 | 2,314,973 | 2,378,067 |
Cash at bank and in hand | 1,295,034 | 875,679 |
4,012,028 | 3,700,406 |
CREDITORS |
Amounts falling due within one year | 15 | 935,651 | 747,994 |
NET CURRENT ASSETS | 3,076,377 | 2,952,412 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,639,165 |
5,473,754 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(77,161 |
) |
(26,406 |
) |
PROVISIONS FOR LIABILITIES | 19 | (285,982 | ) | (179,033 | ) |
NET ASSETS | 5,276,022 | 5,268,315 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 35,002 | 35,002 |
Retained earnings | 21 | 5,241,020 | 5,233,313 |
SHAREHOLDERS' FUNDS | 5,276,022 | 5,268,315 |
The financial statements were approved by the Board of Directors and authorised for issue on 23 November 2023 and were signed on its behalf by: |
M M McDonald - Director |
Rosskeen Holdings Limited (Registered number: SC332393) |
Company Balance Sheet |
30 November 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's (loss)/profit for the financial year | (178,568 | ) | 88,749 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Rosskeen Holdings Limited (Registered number: SC332393) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 November 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 December 2020 | 35,002 | 5,317,975 | 5,352,977 |
Changes in equity |
Dividends | - | (85,000 | ) | (85,000 | ) |
Total comprehensive income | - | 338 | 338 |
Balance at 30 November 2021 | 35,002 | 5,233,313 | 5,268,315 |
Changes in equity |
Dividends | - | (173,000 | ) | (173,000 | ) |
Total comprehensive income | - | 180,707 | 180,707 |
Balance at 30 November 2022 | 35,002 | 5,241,020 | 5,276,022 |
Rosskeen Holdings Limited (Registered number: SC332393) |
Company Statement of Changes in Equity |
for the Year Ended 30 November 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 December 2020 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 November 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 November 2022 |
Rosskeen Holdings Limited (Registered number: SC332393) |
Consolidated Cash Flow Statement |
for the Year Ended 30 November 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 928,646 | (489,063 | ) |
Interest element of hire purchase payments paid |
(4,594 |
) |
(5,071 |
) |
Tax paid | - | 8,596 |
Net cash from operating activities | 924,052 | (485,538 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (537,871 | ) | (369,469 | ) |
Sale of tangible fixed assets | 106,873 | 92,150 |
Net cash from investing activities | (430,998 | ) | (277,319 | ) |
Cash flows from financing activities |
Capital repayments in year | 97,730 | (10,106 | ) |
Amount introduced by directors | 1,571 | - |
Amount withdrawn by directors | - | (506 | ) |
Equity dividends paid | (173,000 | ) | (85,000 | ) |
Net cash from financing activities | (73,699 | ) | (95,612 | ) |
Increase/(decrease) in cash and cash equivalents | 419,355 | (858,469 | ) |
Cash and cash equivalents at beginning of year |
2 |
875,679 |
1,734,148 |
Cash and cash equivalents at end of year | 2 | 1,295,034 | 875,679 |
Rosskeen Holdings Limited (Registered number: SC332393) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 November 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation | 287,656 | 32,447 |
Depreciation charges | 393,063 | 350,975 |
Profit on disposal of fixed assets | (3,512 | ) | (20,914 | ) |
Finance costs | 4,594 | 5,071 |
681,801 | 367,579 |
Decrease in stocks | 44,639 | 18,901 |
Decrease/(increase) in trade and other debtors | 63,094 | (640,838 | ) |
Increase/(decrease) in trade and other creditors | 139,112 | (234,705 | ) |
Cash generated from operations | 928,646 | (489,063 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 November 2022 |
30.11.22 | 1.12.21 |
£ | £ |
Cash and cash equivalents | 1,295,034 | 875,679 |
Year ended 30 November 2021 |
30.11.21 | 1.12.20 |
£ | £ |
Cash and cash equivalents | 875,679 | 1,734,148 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.12.21 | Cash flow | At 30.11.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 875,679 | 419,355 | 1,295,034 |
875,679 | 419,355 | 1,295,034 |
Debt |
Finance leases | (54,466 | ) | (97,730 | ) | (152,196 | ) |
(54,466 | ) | (97,730 | ) | (152,196 | ) |
Total | 821,213 | 321,625 | 1,142,838 |
Rosskeen Holdings Limited (Registered number: SC332393) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 November 2022 |
1. | STATUTORY INFORMATION |
Rosskeen Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated profit and loss account and balance sheet include the financial statements of the company and its subsidiary undertakings up to 30 November 2022. The results of subsidiaries acquired are included in the profit and loss account from the date control passes. Intra-group sales and profits have been eliminated fully on consolidation. |
Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions that affect the amounts reported for assets, liabilities, income and expenditure. |
The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods should it affect future periods. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover represents sales of goods, excluding value added tax, and includes: |
scaffolding and access solutions to the oil and gas industry, civil construction and shipping and boating sector; specialist transport and road haulage services; |
shrinkwrap and containment services; |
decorating services through the Ian Dingwall painting division; |
sale and hire of lifting gear, safety equipment and consumables; |
and the inspection, testing and certification of lifting gear and electrical equipment. |
Turnover is recognised when the risks and rewards associated with ownership have transferred to the purchaser. |
Goodwill |
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. |
Rosskeen Holdings Limited (Registered number: SC332393) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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. |
Basic financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised. |
Impairment of financial assets |
The company assesses the financial assets for evidence of impairment at each balance sheet date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. |
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. |
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, bank loans and loans from group companies are classified as debt and are initially recognised at transaction price. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled. |
Rosskeen Holdings Limited (Registered number: SC332393) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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. |
Going concern |
These financial statements have been prepared on a going concern basis. The directors are required to state whether it is appropriate to adopt the going concern basis of accounting in preparing the financial statements, and to identify any material uncertainties as to the Group's ability to continue as a going concern over a period of at least 12 months from the date of approval of the financial statements. The period of management's going concern assessment is the period to 30 November 2024. |
The restrictions imposed since the arrival of the Coronavirus pandemic has had a major impact on the economy and the sectors in which the company operates and was particularly pronounced in the oil and gas sector where expected scaffolding contracts have been delayed or cancelled. The results for the current year show an improvement with increased turnover and increased profits. Turnover has increased by 16.6% from £7.8m to £9.1m and the profit after tax has increased to £190k from £0.3k in the previous year. |
The group's historical trading results have created substantial reserves and the cash and net asset position remain strong. The group held bank balances of £1,295k and net assets of £5.3m at 30 November 2022. |
Turnover has increased since March 2021 and the Directors are confident that the continued easing of restrictions will result in this pattern continuing which will substantially improve the trading performance. |
The Group has reviewed its forecasts and projections for the going concern assessment period to November 2024. Based on the anticipated demand for services, the Directors have a reasonable expectation that the y Group has adequate resources to continue in operational existence for the period to 30 November 2024. The Group therefore continues to adopt the going concern basis in preparing its financial statements.required to state whether it is appropriate to adopt the going concern basis of accounting in |
Rosskeen Holdings Limited (Registered number: SC332393) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
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: |
2022 | 2021 |
£ | £ |
Erection & hire of scaffolding | 4,720,218 | 3,923,730 |
Painting & decorating services | 451,212 | 326,119 |
Haulage | 1,720,701 | 1,558,948 |
Testing and general services | 1,206,151 | 1,115,446 |
Sale of goods | 646,539 | 510,547 |
Hire of equipment | 375,086 | 384,946 |
9,119,907 | 7,819,736 |
An analysis of turnover by geographical market is given below: |
2022 | 2021 |
£ | £ |
United Kingdom | 9,119,907 | 7,819,736 |
9,119,907 | 7,819,736 |
4. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries | 4,491,629 | 3,992,764 |
Social security costs | 583,799 | 467,188 |
Other pension costs | 161,140 | 147,289 |
5,236,568 | 4,607,241 |
The average number of employees during the year was as follows: |
2022 | 2021 |
Production | 92 | 92 |
Management and administration | 11 | 11 |
The average number of employees by undertakings that were proportionately consolidated during the year was 103 (2021 - 103 ) . |
2022 | 2021 |
£ | £ |
Directors' remuneration | 142,753 | 165,725 |
Directors' pension contributions to money purchase schemes | 1,200 | 22,000 |
Rosskeen Holdings Limited (Registered number: SC332393) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Depreciation - owned assets | 320,649 | 301,144 |
Depreciation - assets on hire purchase contracts | 72,415 | 49,831 |
Profit on disposal of fixed assets | (3,512 | ) | (20,914 | ) |
Auditors' remuneration | 33,855 | - |
Auditors' remuneration - previous auditor | - | 8,700 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Hire purchase | 4,594 | 5,071 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Deferred tax | 106,949 | 32,109 |
Tax on profit | 106,949 | 32,109 |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Ordinary shares of 1 each |
Interim | 173,000 | 85,000 |
Rosskeen Holdings Limited (Registered number: SC332393) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 December 2021 |
and 30 November 2022 | 1,645,170 |
AMORTISATION |
At 1 December 2021 |
and 30 November 2022 | 1,645,170 |
NET BOOK VALUE |
At 30 November 2022 | - |
At 30 November 2021 | - |
11. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 December 2021 | 506,195 | 372,903 | 5,288,590 |
Additions | - | - | 24,547 |
Disposals | - | - | (535 | ) |
At 30 November 2022 | 506,195 | 372,903 | 5,312,602 |
DEPRECIATION |
At 1 December 2021 | 224,980 | 89,916 | 3,998,762 |
Charge for year | 13,081 | 14,149 | 133,525 |
Eliminated on disposal | - | - | (485 | ) |
At 30 November 2022 | 238,061 | 104,065 | 4,131,802 |
NET BOOK VALUE |
At 30 November 2022 | 268,134 | 268,838 | 1,180,800 |
At 30 November 2021 | 281,215 | 282,987 | 1,289,828 |
Rosskeen Holdings Limited (Registered number: SC332393) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 December 2021 | 203,618 | 1,404,338 | 7,775,644 |
Additions | 1,423 | 511,901 | 537,871 |
Disposals | - | (177,455 | ) | (177,990 | ) |
At 30 November 2022 | 205,041 | 1,738,784 | 8,135,525 |
DEPRECIATION |
At 1 December 2021 | 186,186 | 754,458 | 5,254,302 |
Charge for year | 4,240 | 228,069 | 393,064 |
Eliminated on disposal | - | (74,144 | ) | (74,629 | ) |
At 30 November 2022 | 190,426 | 908,383 | 5,572,737 |
NET BOOK VALUE |
At 30 November 2022 | 14,615 | 830,401 | 2,562,788 |
At 30 November 2021 | 17,432 | 649,880 | 2,521,342 |
The net book value of tangible fixed assets includes £ 272,557 (2021 - £ 145,507 ) in respect of assets held under hire purchase contracts. |
Company |
Freehold |
property |
£ |
COST |
At 1 December 2021 |
and 30 November 2022 |
DEPRECIATION |
At 1 December 2021 |
Charge for year |
At 30 November 2022 |
NET BOOK VALUE |
At 30 November 2022 |
At 30 November 2021 |
Rosskeen Holdings Limited (Registered number: SC332393) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 December 2021 |
Impairments | ( |
) |
At 30 November 2022 |
NET BOOK VALUE |
At 30 November 2022 |
At 30 November 2021 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Rosskeen Old Manse, Invergordon, Ross-shire, IV18 0PR |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Profit/(loss) for the year | ( |
) |
Registered office: Rosskeen Old Manse, Invergordon, Ross-shire, IV18 0PR |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Loss for the year | ( |
) | ( |
) |
13. | STOCKS |
Group |
2022 | 2021 |
£ | £ |
Stocks | 357,299 | 423,293 |
Raw materials and consumables | 44,722 | 23,367 |
402,021 | 446,660 |
Rosskeen Holdings Limited (Registered number: SC332393) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Trade debtors | 2,120,497 | 2,136,044 |
Amounts owed by group undertakings | - | - |
Other debtors | 20,075 | 76,765 |
Prepayments and accrued income | 174,401 | 165,258 |
2,314,973 | 2,378,067 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2022 | 2021 |
£ | £ |
Hire purchase contracts (see note 17) | 75,035 | 28,060 |
Trade creditors | 218,529 | 283,002 |
Social security and other taxes | 117,176 | 131,593 |
VAT | 265,890 | 199,274 |
Other creditors | 178,538 | 93,264 |
Directors' loan accounts | 3,602 | 2,031 |
Accruals and deferred income | 22,000 | 6,000 |
Accrued expenses | 54,881 | 4,770 |
935,651 | 747,994 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2022 | 2021 |
£ | £ |
Hire purchase contracts (see note 17) | 77,161 | 26,406 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2022 | 2021 |
£ | £ |
Net obligations repayable: |
Within one year | 75,035 | 28,060 |
Between one and five years | 77,161 | 26,406 |
152,196 | 54,466 |
Rosskeen Holdings Limited (Registered number: SC332393) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2022 | 2021 |
£ | £ |
Hire purchase contracts | 152,196 | 54,466 |
19. | PROVISIONS FOR LIABILITIES |
Group |
2022 | 2021 |
£ | £ |
Deferred tax | 285,982 | 179,033 |
Group |
Deferred |
tax |
£ |
Balance at 1 December 2021 | 179,033 |
Charge to Statement of Comprehensive Income during year | 106,949 |
Balance at 30 November 2022 | 285,982 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | 1 | 35,002 | 35,002 |
21. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 December 2021 | 5,233,313 |
Profit for the year | 180,707 |
Dividends | (173,000 | ) |
At 30 November 2022 | 5,241,020 |
Rosskeen Holdings Limited (Registered number: SC332393) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
21. | RESERVES - continued |
Company |
Retained |
earnings |
£ |
At 1 December 2021 |
Deficit for the year | ( |
) |
Dividends | ( |
) |
At 30 November 2022 |
22. | BOND, FLOATING CHARGES AND STANDARD SECURITIES |
The following charges are held: |
Mcdonald Scaffolding Limited |
- a bond and floating charge is held by Lloyds TSB Commercial Finance Limited over the assets of the company. |
- a floating charge is held by Lloyds TSB Commercial Finance Limited trading as Alex Lawrie Scotland over the assets of the company. |
- a bond and floating charge is held by The Governor and the Company of the Bank of Scotland over the assets of the company. |
Safety Welding and Lifting Holdings Limited |
- a floating charge is held by Bank of Scotland PLC over the assets of the company. |
Safety Welding and Lifting (International) Limited |
- a bond and floating charge is held by Lloyds TSB Commercial Finance Limited over the assets of the company. |
- a standard security is held by The Governor and the Company of the Bank of Scotland over Site 4, Inverbreakie Industrial Estate, Invergordon. |
- a bond and floating charge is held by The Governor and the Company of the Bank of Scotland over the assets of the company. |
23. | CAPITAL COMMITMENTS |
2022 | 2021 |
£ | £ |
Contracted but not provided for in the |
financial statements | 150,350 | - |
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 30 November 2022 and 30 November 2021: |
2022 | 2021 |
£ | £ |
M M McDonald |
Balance outstanding at start of year | (2,031 | ) | (2,538 | ) |
Amounts advanced | 103,429 | 25,507 |
Amounts repaid | (105,000 | ) | (25,000 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | (3,602 | ) | (2,031 | ) |
Rosskeen Holdings Limited (Registered number: SC332393) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued |
Included within creditors in McDonald Scaffolding Limited is an interest-free, unsecured loan of £3,602 (2021: £2,031) from M McDonald, a director. |
25. | RELATED PARTY DISCLOSURES |
During the year rent of £15,000 (2021: £15,000) was paid by McDonald Scaffolding Limited to M McDonald, a director. |
Dividends of £173,000 (2021: £85,000) were received from its subsidiary company, McDonald Scaffolding (Services) Limited. |
26. | ULTIMATE CONTROLLING PARTY |
The controlling party is M M McDonald. |