Company Registration No. SC311140 (Scotland)
Gowrie Contracts Limited
unaudited financial statements
for the year ended 31 August 2023
Pages for filing with Registrar
Gowrie Contracts Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
Gowrie Contracts Limited
Balance sheet
as at 31 August 2023
31 August 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
140,658
119,958
Current assets
Stocks
8,500
4,500
Debtors
5
453,325
591,118
Cash at bank and in hand
110,340
137,949
572,165
733,567
Creditors: amounts falling due within one year
6
(314,787)
(408,917)
Net current assets
257,378
324,650
Total assets less current liabilities
398,036
444,608
Creditors: amounts falling due after more than one year
7
(113,426)
(164,828)
Provisions for liabilities
(29,156)
(23,998)
Net assets
255,454
255,782
Capital and reserves
Called up share capital
4
4
Profit and loss reserves
255,450
255,778
Total equity
255,454
255,782
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 August 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Gowrie Contracts Limited
Balance sheet (continued)
as at 31 August 2023
31 August 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 29 March 2024 and are signed on its behalf by:
Mr JG Henderson
Director
Company Registration No. SC311140
Gowrie Contracts Limited
Notes to the financial statements
for the year ended 31 August 2023
- 3 -
1
Accounting policies
Company information
Gowrie Contracts Limited is a private company limited by shares incorporated in Scotland. The registered office is 9 Faraday Street, Dryburgh Industrial Estate, Dundee, DD2 3QQ.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents revenue recognised in the accounts. Revenue is recognised when the company fulfils its contractual obligations to customers by supplying goods and services and excludes value added tax. Where services are provided gradually over time revenue is recognised as activity progresses by reference to value of work done.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, 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
Over 10 years
Plant and machinery
Over 5 years
Computer equipment
Over 3 years
Motor vehicles
Over 4 years
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 profit or loss.
1.4
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.
Gowrie Contracts Limited
Notes to the financial statements (continued)
for the year ended 31 August 2023
1
Accounting policies (continued)
- 4 -
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. 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.
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 profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
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. Bank overdrafts are shown within borrowings in current liabilities.
1.7
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 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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
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.
1.8
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.
Gowrie Contracts Limited
Notes to the financial statements (continued)
for the year ended 31 August 2023
1
Accounting policies (continued)
- 5 -
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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 is measured on differences between the carrying amounts of assets and liabilities in the accounts and the corresponding tax bases, as used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all temporary timing differences that have not reversed by the balance sheet date and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available. Deferred tax is calculated at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is charged or credited in the profit and loss accounts, 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 taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Gowrie Contracts Limited
Notes to the financial statements (continued)
for the year ended 31 August 2023
1
Accounting policies (continued)
- 6 -
1.13
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
25
25
3
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
11,570
36,153
Deferred tax
Origination and reversal of timing differences
5,158
1,708
Changes in tax rates
5,350
Total deferred tax
5,158
7,058
Total tax charge
16,728
43,211
Gowrie Contracts Limited
Notes to the financial statements (continued)
for the year ended 31 August 2023
- 7 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 September 2022
13,448
727,096
740,544
Additions
22,876
72,193
95,069
Disposals
(65,692)
(65,692)
At 31 August 2023
36,324
733,597
769,921
Depreciation and impairment
At 1 September 2022
13,448
607,138
620,586
Depreciation charged in the year
977
39,905
40,882
Eliminated in respect of disposals
(32,205)
(32,205)
At 31 August 2023
14,425
614,838
629,263
Carrying amount
At 31 August 2023
21,899
118,759
140,658
At 31 August 2022
119,958
119,958
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
347,537
493,480
Other debtors
105,788
97,638
453,325
591,118
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
46,731
42,612
Trade creditors
187,094
274,319
Corporation tax
11,570
36,153
Other taxation and social security
21,546
19,663
Other creditors
47,846
36,170
314,787
408,917
Gowrie Contracts Limited
Notes to the financial statements (continued)
for the year ended 31 August 2023
- 8 -
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
86,846
133,576
Other creditors
26,580
31,252
113,426
164,828
8
Profit and loss reserve
The profit and loss reserve is made up of all current and prior period retained profits and losses.
9
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:
2023
2022
£
£
30,000
30,000
10
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Purchases
2023
2022
2023
2022
£
£
£
£
Other related parties
867
3,540
3,540
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£
£
Other related parties
1,787
1,787
No guarantees have been given or received.
Other information
During the period under review, key management personnel were paid by the company an aggregate total of £Nil (2022: £Nil). At the reporting date, the company owed key management personnel £8 (2022: £8).
Gowrie Contracts Limited
Notes to the financial statements (continued)
for the year ended 31 August 2023
- 9 -
11
Directors' transactions
In the year to 31 August 2023, dividends to directors and their spouses totalled £57,500 (2022 - £86,500).