Company Registration No. SC712246 (Scotland)
KIRKWOOD TIMBER FRAME LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
PAGES FOR FILING WITH REGISTRAR
KIRKWOOD TIMBER FRAME LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 12
KIRKWOOD TIMBER FRAME LIMITED
BALANCE SHEET
- 1 -
Unaudited
2023
2022
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
4
1,912
Current assets
Stocks
1,142
-
Debtors
5
1,377
Cash at bank and in hand
617
3,136
Creditors: amounts falling due within one year
6
(5,107)
Net current liabilities
(1,971)
Total assets less current liabilities
(59)
Provisions for liabilities
7
(254)
Net liabilities
(313)
Capital and reserves
Profit and loss reserves
9
(313)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered 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 28 March 2024 and are signed on its behalf by:
Mr M Harper
Director
Company Registration No. SC712246
KIRKWOOD TIMBER FRAME LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
Profit and loss reserves
£'000
Balance at 14 October 2021 and 30 June 2022 (unaudited)
Year ended 30 June 2023:
Loss and total comprehensive expenditure for the year
(313)
Balance at 30 June 2023
(313)
Share capital at 30 June 2022 and 30 June 2023 was £1 and has not been shown as the financial statements have been prepared in round thousands.
KIRKWOOD TIMBER FRAME LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -
1
Accounting policies
Company information
Kirkwood Timber Frame Limited is a private company limited by shares incorporated in Scotland. The registered office is Johnstone House, 52-54 Rose Street, Aberdeen, United Kingdom, AB10 1HA. The business address is Kirkwood Business Park, Sauchen, Inverurie, AB51 7LE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 £'000.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
At the year-end, the company has net liabilities of £313k and incurred a loss in the period to 30 June 2023 of £313k. Included within creditors are amounts due to related parties of £2,040k. The related party has confirmed that immediate repayment of this amount will not be sought for a period of at least 12 months from signature of these financial statements, as required to maintain the company’s going concern applicability and that financial support will be available to the company as required. true
At the time of approving the financial statements, the directors have a reasonable expectation that the company has access to adequate resources to continue in operational existence for the foreseeable future. This incorporates consideration of the future trading forecasts coupled with ongoing support from the related party. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Reporting period
The company was incorporated on 14 October 2021 and prepared its first set of financial statements to 30 June 2022. The comparative figures therefore reflect this period and are unaudited.
1.4
Turnover
Turnover can arise primarily from either the supply of timberframe structures or the supply and build of the timberframe structures. The former is treated as a supply of goods and turnover is recognised when the structure is physically delivered to the customer. The latter is treated as a construction contract and turnover is recognised as described below. Turnover is stated net of VAT and trade discounts.
Turnover is only recognised on a construction contract where the outcome can be estimated reliably. Variations to, and claims arising in respect of, construction contracts, are included in revenue to the extent that they have been agreed with the customer. Turnover and costs are recognised by reference to that stage of completion of contract activity at the balance sheet date. This is normally measured by surveys of work performed to date. An estimate of the profit attributable to work completed is recognised once the outcome of contract can be assessed with reasonable certainty. Contracts are only treated as construction contracts when they have been specifically negotiated for the supply, manufacture and erection of timberframe structures. When it is probable that the total costs on a construction contract will exceed total contract revenue, the expected loss is recognised as an expense in the profit and loss account immediately.
Revenue received in relation to contract retentions is recognised when it is probable that the economic benefits associated with the transaction will flow to the company.
KIRKWOOD TIMBER FRAME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
10 years straight line
Plant and equipment
1 to 10 years straight line
Fixtures and fittings
4 to 5 years straight line
Motor vehicles
3 to 5 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit or loss account.
Deposits for amounts paid for fixed assets committed to purchasing but not yet delivered at the year-end are included within tangible fixed assets at cost. Depreciation is recognised once the asset is delivered and being used.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Stocks
Stocks are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Net realisable value is calculated as estimated selling price less costs to complete and sell.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit or loss account. Reversals of impairment losses are also recognised in the profit or loss account.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.
1.9
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.
KIRKWOOD TIMBER FRAME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 5 -
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 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.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting end 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. The impairment loss is recognised in profit or loss account.
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. All of the company's financial liabilities are classified as basic.
Basic financial liabilities
Basic financial liabilities, including creditors, and loans from related parties, 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.
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.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
KIRKWOOD TIMBER FRAME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 6 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. 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 underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
KIRKWOOD TIMBER FRAME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 7 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Recognition of retention revenue
Management consider the recoverability of construction contract retentions in relation to timberframe supplies to be uncertain and as such these are recognised when it is deemed that it is probable that the economic benefits associated with the transaction will flow to the company rather than as part of construction contract revenue as the job progresses. Management consider this treatment to be appropriate on the basis that the company generally acts as subcontractor on contracts and is normally beholding to the main contractor, which creates significant uncertainty around the receipt of retentions.
Contract accounting - construction contracts
Contract accounting impacts a number of significant account balances within the company's financial statements, including: turnover, cost of sales, amounts recoverable on contracts within trade receivables and stock and work in progress. Turnover, cost and ultimately profit recognition in respect of contracts require estimations on the outcome of contracts including the stage of completion, the recoverability of construction costs, any variations in the contract and any expected changes in contract costs.
The recoverability of amounts recoverable on contracts and other receivables are regularly reviewed in light of available economic information specific to each receivable and provisions are recognised for balances considered to be irrecoverable.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
Unaudited
2023
2022
Number
Number
Total
40
4
KIRKWOOD TIMBER FRAME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£'000
£'000
£'000
Cost
At 1 July 2022 (unaudited)
Additions
3
517
520
Additions - from related parties
33
1,589
1,622
At 30 June 2023
36
2,106
2,142
Depreciation and impairment
At 1 July 2022 (unaudited)
Depreciation charged in the year
3
227
230
At 30 June 2023
3
227
230
Carrying amount
At 30 June 2023
33
1,879
1,912
At 30 June 2022 (unaudited)
During the year, the company acquired tangible fixed assets of £1,622k (2022: £nil) from other related parties.
5
Debtors
Unaudited
2023
2022
Amounts falling due within one year:
£'000
£'000
Trade debtors
870
Amounts owed by related parties
91
Prepayments and accrued income
282
Other debtors
134
1,377
-
Amounts owed by related parties are interest free and repayable on demand.
KIRKWOOD TIMBER FRAME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
6
Creditors: amounts falling due within one year
Unaudited
2023
2022
£'000
£'000
Trade creditors
2,060
Amounts due to related parties
2,327
Taxation and social security
91
Accruals and deferred income
604
Other creditors
25
5,107
-
Amounts owed to related parties include an amount of £1.7m (2022: £nil) that attracts interest at 3% per annum. The remainder of the balance is interest free. The entire balance is repayable on demand.
7
Deferred taxation
The following are the major deferred tax liabilities recognised by the company and movements thereon:
Unaudited
2023
2022
£'000
£'000
Accelerated capital allowances
254
-
2023
Movements in the year:
£'000
Liability at 1 July 2022
-
Charge to profit or loss
254
Liability at 30 June 2023
254
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
KIRKWOOD TIMBER FRAME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 10 -
8
Called up share capital
Unaudited
Unaudited
2023
2022
2023
2022
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 1p each
100
100
1
1
100
100
1
1
The numbers are stated as the full amount and not in round thousands.
The company has two class of ordinary shares as follows:
Both carry full voting rights but no right to fixed income or repayment of capital. Distributions are at the discretion of the company.
9
Profit and loss reserves
The company's profit and loss reserve represents the cumulative historic profits and losses, net of dividends and other adjustments.
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
Unaudited
2023
2022
£'000
£'000
Total
1,015
11
Capital commitments
Amounts contracted for but not provided in the financial statements:
Unaudited
2023
2022
£'000
£'000
Acquisition of tangible fixed assets
762
-
KIRKWOOD TIMBER FRAME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 11 -
12
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Purchases
Unaudited
Unaudited
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Other related parties
4,036
866
-
Rent and Insurance Paid
Additions of Fixed Assets
Unaudited
Unaudited
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Other related parties
908
-
1,622
-
Unaudited
2023
2022
Amounts due to related parties
£'000
£'000
Other related parties
2,327
-
The following amounts were outstanding at the reporting end date:
Unaudited
2023
2022
Amounts due from related parties
£'000
£'000
Other related parties
91
-
Other information
Other related parties comprise entities in which the company's directors have a participating interest in .
Amounts owed to entities over which the entity has control, joint control or significant influence include an amount of £1.7m (2022: £nil) that accrues interest at 3% per annum. Included within this balance is £50k (2022: £nil) of accrued interest.
All other amounts due to / due from related parties are interest free and all amounts are repayable on demand.
13
Ultimate controlling party
The company is controlled by I Dunbar, director, by virtue of holding 95% of the share capital.
KIRKWOOD TIMBER FRAME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
14
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Allison Dalton and the auditor was Johnston Carmichael LLP.
2023-06-302022-07-01false28 March 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedMr C CrombieMr I DunbarMr S MartinMr M ThomsonMr M HarperMrs B MassieLC Secretaries LimitedfalseSC7122462022-07-012023-06-30SC7122462023-06-30SC7122462022-06-30SC712246core:LandBuildings2023-06-30SC712246core:OtherPropertyPlantEquipment2023-06-30SC712246core:LandBuildings2022-06-30SC712246core:OtherPropertyPlantEquipment2022-06-30SC712246core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-30SC712246core:CurrentFinancialInstrumentscore:WithinOneYear2022-06-30SC712246core:RetainedEarningsAccumulatedLosses2023-06-30SC712246core:RetainedEarningsAccumulatedLosses2022-06-30SC712246core:RetainedEarningsAccumulatedLosses2021-10-13SC712246bus:Director52022-07-012023-06-30SC712246core:RetainedEarningsAccumulatedLosses2022-07-012023-06-30SC712246core:LeaseholdImprovements2022-07-012023-06-30SC712246core:PlantMachinery2022-07-012023-06-30SC712246core:FurnitureFittings2022-07-012023-06-30SC712246core:MotorVehicles2022-07-012023-06-30SC7122462021-10-142022-06-30SC712246core:LandBuildings2022-06-30SC712246core:OtherPropertyPlantEquipment2022-06-30SC7122462022-06-30SC712246core:LandBuildings2022-07-012023-06-30SC712246core:OtherPropertyPlantEquipment2022-07-012023-06-30SC712246core:CurrentFinancialInstruments2023-06-30SC712246core:CurrentFinancialInstruments2022-06-30SC712246core:WithinOneYear2022-06-30SC712246core:OtherRelatedPartiescore:SaleOrPurchaseGoods2022-07-012023-06-30SC712246core:OtherRelatedPartiescore:SaleOrPurchaseGoods2021-10-142022-06-30SC712246bus:PrivateLimitedCompanyLtd2022-07-012023-06-30SC712246bus:SmallCompaniesRegimeForAccounts2022-07-012023-06-30SC712246bus:FRS1022022-07-012023-06-30SC712246bus:Audited2022-07-012023-06-30SC712246bus:Director12022-07-012023-06-30SC712246bus:Director22022-07-012023-06-30SC712246bus:Director32022-07-012023-06-30SC712246bus:Director42022-07-012023-06-30SC712246bus:Director62022-07-012023-06-30SC712246bus:CompanySecretary12022-07-012023-06-30SC712246bus:FullAccounts2022-07-012023-06-30xbrli:purexbrli:sharesiso4217:GBP