REGISTERED NUMBER: |
Unaudited Financial Statements for the Year Ended 31 December 2023 |
for |
Scottish Building Federation |
REGISTERED NUMBER: |
Unaudited Financial Statements for the Year Ended 31 December 2023 |
for |
Scottish Building Federation |
Scottish Building Federation (Registered number: SC354581) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Statement of Financial Position | 1 |
Notes to the Financial Statements | 3 |
Scottish Building Federation (Registered number: SC354581) |
Statement of Financial Position |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
FIXED ASSETS |
Investments | 4 |
CURRENT ASSETS |
Debtors | 5 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 6 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
7 |
( |
) |
( |
) |
NET ASSETS |
RESERVES |
Income and expenditure account |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
Scottish Building Federation (Registered number: SC354581) |
Statement of Financial Position - continued |
31 December 2023 |
In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
Scottish Building Federation (Registered number: SC354581) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Scottish Building Federation is a private company limited by guarantee domiciled in Scotland, registration number SC354581. The registered office is Unit 5 Gateway Business Park, Beancross Road, Grangemouth, FK3 8WX. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
In relation to investment property and certain financial instruments, historical cost convention has been modified for revaluation to fair value. |
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. The directors are of the opinion that it remains appropriate to adopt the going concern basis of accounting in preparing the financial statements. |
Turnover |
Turnover represents net invoiced sales of services in respect of federation membership and training, excluding value added tax. Income is recognised at the point at which the service is complete, with proportional adjustment depending on cut-off at the year-end. |
Fixed asset investments |
Interests are initially measured at transaction price excluding transaction costs, and are subsequently measured at market value at each reporting date. Changes in fair value are recognised in the profit or loss. Transaction costs are expensed to the profit or loss as incurred. |
Cash and cash equivalents |
Cash and cash equivalents are basic financial assets and include cash in hand, cash held as part of the investment portfolio and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in surplus or deficit. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 statement of financial position date. |
Scottish Building Federation (Registered number: SC354581) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 |
Rentals paid under operating leases are charged to surplus or deficit on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined benefit pension scheme and the pension charge is based on a full actuarial valuation dated 31 July 2017 and updated by the actuary to 31 December 2023. |
The cost of providing benefits under defined benefit plans is determined using the projected unit credit method, and is based on actuarial advice. |
The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise. |
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost. |
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods. |
The defined net benefit pension asset or liability in the balance sheet comprises the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities, is the published bid price. The value of a defined benefit pension asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme. |
The company also operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account. |
Provisions |
Provisions are recognised when the company has a legal or constructive obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Provisions are discounted where the time value of money is material. |
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. |
Scottish Building Federation (Registered number: SC354581) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | FIXED ASSET INVESTMENTS |
Other |
investments |
£ |
COST OR VALUATION |
At 1 January 2023 |
Additions |
Disposals | ( |
) |
Revaluations | ( |
) |
Dividends received | 4,360 |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The portfolio valued at £149,244 at the year-end (2022: £143,000) has a historical cost of £122,133 (2022: £116,483). |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade debtors |
Other debtors |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans and overdrafts |
Trade creditors |
Amounts owed to related parties | 42,134 | 40,468 |
Taxation and social security |
Other creditors |
The unsecured Bounce Back loan of £50,000 was drawn down in June 2020 and is payable over 5 years commencing June 2021 and ending May 2026. |
7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans |
Scottish Building Federation (Registered number: SC354581) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
8. | EMPLOYEE BENEFIT OBLIGATIONS |
The scheme was closed to further accrual on 31 July 2007. The pension cost and provision is assessed in accordance with the advice of the scheme actuary, Little & Company. The last formal actuarial valuation was carried out as at 31 July 2017. |
Following the scheme being paid up, monthly contributions of £4,167 are payable. Single contributions will be paid to the scheme as funds become available. |
31.12.23 | 31.12.22 |
Key Assumptions | % | % |
Discount rate | 4.63 | 4.52 |
Expected rate of increase in pensions payment | 2.91 | 2.99 |
Expected rate of salary increases | 3.00 | 3.10 |
Mortality assumptions | 31.12.23 | 31.12.22 |
Assumed life expectations on retirement at age 65: | Years | Years |
Retiring today |
- Males | 85.5 | 86.0 |
- Females | 87.7 | 88.2 |
Retiring in 20 years |
- Males | 86.4 | 86.9 |
- Females | 88.8 | 89.3 |
Amounts recognised in the profit and loss account | 31.12.23 | 31.12.22 |
£ | £ |
Other costs and income | 104,000 | 96,000 |
Amounts taken to other comprehensive income | 31.12.23 | 31.12.22 |
£ | £ |
Actual return on scheme assets | (96,000 | ) | 772,000 |
Less: calculated interest element | 61,000 | 41,000 |
Return on scheme assets excluding interest income | (35,000 | ) | 813,000 |
Actuarial changes related to obligations | (79,000 | ) | (903,000 | ) |
Movement in unrecognised plan surplus | 60,000 | 44,000 |
Total costs/(income) | (54,000 | ) | (46,000 | ) |
Scottish Building Federation (Registered number: SC354581) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
8. EMPLOYEE BENEFIT OBLIGATIONS - continued |
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Present value of defined benefit obligations | 1,279,000 | 1,388,000 |
Fair value of asset plans | (1,689,000 | ) | (1,738,000 | ) |
Surplus in scheme | (410,000 | ) | (350,000 | ) |
Asset not recognised due to asset ceiling | 410,000 | 350,000 |
Total liability recognised | - | - |
FRS 102 limits the amount of surplus that can be recognised on the balance sheet. Surplus can only be recognised to the extent that the employer can expect to secure economic benefit from it. |
Movements in the present value of defined benefit obligations | 31.12.23 | 31.12.22 |
£ | £ |
Opening liabilities | 1,388,000 | 2,353,000 |
Benefits paid | (91,000 | ) | (103,000 | ) |
Actuarial gains and losses | (79,000 | ) | (903,000 | ) |
Interest cost | 61,000 | 41,000 |
Closing liabilities | 1,279,000 | 1,388,000 |
The defined benefit obligations arise from plans funded as follows | 31.12.23 | 31.12.22 |
£ | £ |
Wholly unfunded obligations | - | - |
Wholly or partly funded obligations | 1,279,000 | 1,388,000 |
1,279,000 | 1,388,000 |
Movements in the fair value of plan assets | 31.12.23 | 31.12.22 |
£ | £ |
Opening fair value | 1,738,000 | 2,659,000 |
Interest income | 61,000 | 41,000 |
Return on plan assets (excluding amounts included in net interest) | 35,000 | (813,000 | ) |
Benefits paid | (91,000 | ) | (103,000 | ) |
Contributions by the employer | 50,000 | 50,000 |
Other | (104,000 | ) | (96,000 | ) |
1,689,000 | 1,738,000 |
Scottish Building Federation (Registered number: SC354581) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
8. EMPLOYEE BENEFIT OBLIGATIONS - continued |
Fair value of plan assets at the reporting period end | 31.12.22 | 31.12.21 |
£ | £ |
Equity instruments | - | 94,000 |
Debt instruments | 1,662,000 | 1,598,000 |
Net current assets | 27,000 | 46,000 |
1,689,000 | 1,738,000 |
Defined contribution scheme |
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. |
Charge to the profit or loss in respect of defined contribution schemes total £13,787 (2022: £13,360). |
9. | RELATED PARTY DISCLOSURES |
Entities under common control are owed £42,134 at the year-end (2022: £40,468). |
10. | POST BALANCE SHEET EVENTS |
After the balance sheet date, the company has entered into a buy-in/buy-out transaction in relation to its defined benefit pension scheme. This will be an estimated cost of £390,000 to the company. |
11. | LIMITED BY GUARANTEE |
Scottish Building Federation is a company limited by guarantee. The members have agreed to contribute £1 in the event of Scottish Building Federation being unable to meet its debts. |