Company registration number SC111981 (Scotland)
DICKSONS OF FORRES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
DICKSONS OF FORRES LIMITED
COMPANY INFORMATION
Directors
Mr F Bryce
Mr J T Mackenzie
Mr R Dunlop
(Appointed 15 March 2024)
Miss L Macphee
(Appointed 15 March 2024)
Mr D Laird
(Appointed 15 March 2024)
Company number
SC111981
Registered office
28-34 Carsegate Road
Telford Retail Park
Inverness
IV3 8EX
Auditor
A9 Accountancy Limited
Elm House
Cradlehall Business Park
Inverness
United Kingdom
IV2 5GH
Solicitors
Harper Macleod LLP
Alder House
Cradlehall Business Park
Inverness
United Kingdom
IV2 5GH
DICKSONS OF FORRES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11 - 12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 35
DICKSONS OF FORRES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

Group turnover has increased in the financial year to £43.5m (2022 - £33.3m). Revenue was split between vehicle sales £38.7m (2022 - £29.4m) and after sales revenue of £4.8m (2022 - £3.9m).

The group reported pre-tax profits to 31 December 2023 of £232,913 compared to a profit of £279,474 in the prior year.

During the year the company sold 1,872 retail vehicles (2022 – 1,459). Vehicle sales were split 849 new (2022 - 623) and 948 used (2022 – 836).

New vehicle sales were split between the manufacturers as follows: Nissan 198 (2022 - 127), Kia 278 (2022 - 273), Suzuki 153 (2022 - 81) and MG 220 (2022 – 142).

During the year we opened our fifth trading premises on the Carsegate Industrial Estate, under the brand of “Carzar by Dicksons”. We opened this as a used car entity for part exchanges that we would normal have traded and not retailed, this will give us a greater opportunity to attract a different dynamic of customer to our sites and grow our used car sales in the coming years. We have also grown the number of sale executives we employee to be able to fulfil the demands of the business.

We have continued to grow the aftersales side of the business with capacity for 21 technicians. Our parts division is also expanding by taking on additional franchises so that we can deliver a wider range of products to our customers.

Principal risks and uncertainties

Currently the risks and uncertainties within the motor sector is that UK inflation may continue to increase which is impacting costs to the business. Interest rates appeared to have plateaued and this will hopefully stabilise funding costs for 2024.

There were still issues surrounding the supply of new cars during the 2023 financial year, however, the issue surrounding the supply of sold orders has eased slightly by the end of the 2023 financial year. Nevertheless, at the year-end there were still a number of units to fulfil, and we cannot give customers exact dates of when they are likely to receive their new cars and this can lead to customers cancelling and not fulfilling orders.

These are risks that the group monitors closely and are confident can react accordingly to minimise their impact on performance.

Key performance indicators

In terms of monitoring the business performance, the key performance indicators are turnover, gross profit, and net profit. Additional departmental indicators are reviewed monthly.

 

 

 

2023

 

2022

 

Variance

Turnover

 

43,492,390

 

33,234,640

 

30.86%

Cost of sales

 

(42,299,279)

 

(32,288,197)

 

31.01%

Gross profit

 

1,193,111

 

976,443

 

118.83%

Gross Profit %

 

2.74%

 

2.94%

 

0.2%

Net Profit %

 

0.38%

 

0.67%

 

0.29%

DICKSONS OF FORRES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Future Developments

As a board of directors, we are constantly looking at future proofing the business for the foreseeable future, we are constantly looking at opportunities that may arise in the local area, be this adding other franchises we will always consider these.

Electric / hybrid vehicles are still at the forefront of the nation’s political agenda stating that the country will move away from Diesel/Petrol vehicles and towards entirely electric powered vehicles. All our manufacturers we represent have hybrid and the majority have fully electric vehicles available throughout the range.

On behalf of the board

Mr F Bryce
Director
28 March 2024
DICKSONS OF FORRES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company and group continued to be that of the sale and repair of motor vehicles.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £250,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr A Scrimgeour
(Resigned 15 March 2024)
Mrs M W Scrimgeour
(Resigned 15 March 2024)
Mr F Bryce
Mr H Bryce
(Resigned 15 March 2024)
Mr J T Mackenzie
Mr R Dunlop
(Appointed 15 March 2024)
Miss L Macphee
(Appointed 15 March 2024)
Mr D Laird
(Appointed 15 March 2024)
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic Report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments. true

DICKSONS OF FORRES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr F Bryce
Director
28 March 2024
DICKSONS OF FORRES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DICKSONS OF FORRES LIMITED
- 5 -
Opinion

We have audited the financial statements of Dicksons Of Forres Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

DICKSONS OF FORRES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DICKSONS OF FORRES LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

We gained an understanding of how the group is complying with these laws and regulations by making enquiries of management. We corroborated these enquiries through our review of external inspections, relevant correspondence with regulatory bodies and board meeting minutes.

We assessed the susceptibility of the group's financial statements to material misstatement, including how fraud might occur, by meeting with management to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management oversee the implementation and operation of controls. In areas of the financial statements where risks were considered to be higher, we performed procedures to address each identified risk.

DICKSONS OF FORRES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DICKSONS OF FORRES LIMITED
- 7 -

The following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

Paul Capewell (Senior Statutory Auditor)
For and on behalf of A9 Accountancy Limited
28 March 2024
Chartered Accountants
Statutory Auditor
Elm House
Cradlehall Business Park
Inverness
United Kingdom
IV2 5GH
DICKSONS OF FORRES LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
43,492,390
33,264,640
Cost of sales
(42,353,760)
(32,288,197)
Gross profit
1,138,630
976,443
Administrative expenses
(992,039)
(905,909)
Other operating income
350,687
339,525
Operating profit
5
497,278
410,059
Interest receivable and similar income
9
664
169
Interest payable and similar expenses
10
(265,029)
(130,754)
Profit before taxation
232,913
279,474
Tax on profit
11
(67,602)
(58,064)
Profit for the financial year
27
165,311
221,410
Profit for the financial year is all attributable to the owners of the parent company.
DICKSONS OF FORRES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
165,311
221,410
Other comprehensive income
-
-
Total comprehensive income for the year
165,311
221,410
Total comprehensive income for the year is all attributable to the owners of the parent company.
DICKSONS OF FORRES LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,396,436
1,098,238
Current assets
Stocks
16
6,266,712
5,706,278
Debtors
17
726,235
890,851
Cash at bank and in hand
154,384
391,025
7,147,331
6,988,154
Creditors: amounts falling due within one year
18
(5,714,796)
(5,180,214)
Net current assets
1,432,535
1,807,940
Total assets less current liabilities
2,828,971
2,906,178
Creditors: amounts falling due after more than one year
19
(15,000)
(31,450)
Provisions for liabilities
Deferred tax liability
21
72,691
48,759
(72,691)
(48,759)
Net assets
2,741,280
2,825,969
Capital and reserves
Called up share capital
24
44,150
44,150
Revaluation reserve
25
194,385
197,128
Capital redemption reserve
26
67,850
67,850
Profit and loss reserves
27
2,434,895
2,516,841
Total equity
2,741,280
2,825,969

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

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:
28 March 2024
Mr F Bryce
Director
Company registration number SC111981 (Scotland)
DICKSONS OF FORRES LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,396,436
1,098,238
Investments
14
10,000
10,000
1,406,436
1,108,238
Current assets
Stocks
16
6,266,712
5,706,278
Debtors
17
726,235
890,851
Cash at bank and in hand
154,384
391,025
7,147,331
6,988,154
Creditors: amounts falling due within one year
18
(5,724,796)
(5,190,214)
Net current assets
1,422,535
1,797,940
Total assets less current liabilities
2,828,971
2,906,178
Creditors: amounts falling due after more than one year
19
(15,000)
(31,450)
Provisions for liabilities
Deferred tax liability
21
72,691
48,759
(72,691)
(48,759)
Net assets
2,741,280
2,825,969
Capital and reserves
Called up share capital
24
44,150
44,150
Revaluation reserve
25
194,385
197,128
Capital redemption reserve
26
67,850
67,850
Profit and loss reserves
27
2,434,895
2,516,841
Total equity
2,741,280
2,825,969

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £165,311 (2022 - £221,410 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

DICKSONS OF FORRES LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
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:
28 March 2024
Mr F Bryce
Director
Company registration number SC111981 (Scotland)
DICKSONS OF FORRES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
44,150
199,871
67,850
2,292,688
2,604,559
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
221,410
221,410
Transfers
-
(2,743)
-
2,743
-
Balance at 31 December 2022
44,150
197,128
67,850
2,516,841
2,825,969
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
165,311
165,311
Dividends
12
-
-
-
(250,000)
(250,000)
Transfers
-
(2,743)
-
2,743
-
Balance at 31 December 2023
44,150
194,385
67,850
2,434,895
2,741,280
DICKSONS OF FORRES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
44,150
199,871
67,850
2,292,688
2,604,559
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
221,410
221,410
Transfers
-
(2,743)
-
2,743
-
Balance at 31 December 2022
44,150
197,128
67,850
2,516,841
2,825,969
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
165,311
165,311
Dividends
12
-
-
-
(250,000)
(250,000)
Transfers
-
(2,743)
-
2,743
-
Balance at 31 December 2023
44,150
194,385
67,850
2,434,895
2,741,280
DICKSONS OF FORRES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
677,104
111,193
Interest paid
(265,029)
(130,754)
Income taxes paid
(91,345)
(34,962)
Net cash inflow/(outflow) from operating activities
320,730
(54,523)
Investing activities
Purchase of tangible fixed assets
(532,403)
(49,654)
Proceeds from disposal of tangible fixed assets
197,604
-
Interest received
664
169
Net cash used in investing activities
(334,135)
(49,485)
Financing activities
Proceeds from borrowings
260,527
339,285
Repayment of borrowings
(223,763)
(330,594)
Repayment of bank loans
(10,000)
(10,000)
Dividends paid to equity shareholders
(250,000)
-
0
Net cash used in financing activities
(223,236)
(1,309)
Net decrease in cash and cash equivalents
(236,641)
(105,317)
Cash and cash equivalents at beginning of year
391,025
496,342
Cash and cash equivalents at end of year
154,384
391,025
DICKSONS OF FORRES LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
33
677,104
111,193
Interest paid
(265,029)
(130,754)
Income taxes paid
(91,345)
(34,962)
Net cash inflow/(outflow) from operating activities
320,730
(54,523)
Investing activities
Purchase of tangible fixed assets
(532,403)
(49,654)
Proceeds from disposal of tangible fixed assets
197,604
-
0
Interest received
664
169
Net cash used in investing activities
(334,135)
(49,485)
Financing activities
Proceeds from borrowings
260,527
339,285
Repayment of borrowings
(223,763)
(330,594)
Repayment of bank loans
(10,000)
(10,000)
Dividends paid to equity shareholders
(250,000)
-
Net cash used in financing activities
(223,236)
(1,309)
Net decrease in cash and cash equivalents
(236,641)
(105,317)
Cash and cash equivalents at beginning of year
391,025
496,342
Cash and cash equivalents at end of year
154,384
391,025
DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
1
Accounting policies
Company information

Dicksons Of Forres Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is .

 

The group consists of Dicksons Of Forres Limited and all of its subsidiaries.

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.

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, modified to include the revaluation of freehold properties to deemed cost, The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Dicksons Of Forres Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

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

DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

The sale of motor vehicles are recognised when the significant risks and rewards of ownership have been transferred to the buyer. Sales of parts and accessories are recognised on delivery to the customer. Servicing and parts sales are recognised on completion of the agreed work. Service plan agreement income is recognised in full when payment is received as the plan is non-refundable.

Dividend income from investments is recognised when the shareholder's right to receive payment has been established.

1.6
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.

 

Freehold & Long leasehold property is included at a deemed cost based on market value at the date of transition to FRS 102 being 1 January 2014.

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:

Land and buildings long leasehold
Straight line over 10 to 52 years
Plant and equipment
3 to 10 years
Fixtures and fittings
3 to 13 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 recognised in the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.8
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stock and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs incurred in bringing each product to its present location and conditions as follows:

 

Vehicle stock and parts/workshop supplies - purchase cost on a first in, first out basis.

 

Work in progress - cost of direct materials, direct labour and attributable overheads.

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.

1.10
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.

DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, 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. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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 group 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 group after deducting all of its liabilities.

DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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.

 

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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
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 group’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.

DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.14
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.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
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.

 

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 group’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.

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.

Vehicle Stock

Vehicle stock is valued at the lower of cost and net realisable value. This includes any provision for slow moving or obsolete stock. Calculation of such provisions requires judgements to be made on various aspects of stock based on a mixture of Glass's guide, used car pricing and technical information supplied by CAP Automotive Limited, and general experience and understanding of the motor trade. The carrying amount is £5,904,936 (2022 - £5,409,432).

DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of vehicles
38,711,291
29,408,702
Parts and servicing
4,781,099
3,855,938
43,492,390
33,264,640
2023
2022
£
£
Turnover analysed by geographical market
UK
43,492,390
33,264,640
2023
2022
£
£
Other revenue
Interest income
664
169
Funding received
25,800
25,800
Commissions received
324,887
313,725
4
Funding received

Nissan provided funding for an upgrade to the Nissan showroom. There are performance related conditions in relation to this funding received and therefore this income is being recognised under the performance model.

 

The amount of grants recognised in the financial statements was £25,800 (2022 - £25,800).

5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
101,169
87,642
Profit on disposal of tangible fixed assets
(64,568)
-
Operating lease charges
59,936
54,924
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
30,120
16,500
For other services
All other non-audit services
13,435
5,315
DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management and administration
15
15
15
15
Sales
15
14
15
14
Workshop
49
41
49
41
Total
79
70
79
70

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,870,047
2,309,085
2,870,047
2,309,085
Social security costs
307,473
246,298
307,473
246,298
Pension costs
109,607
89,938
109,607
89,938
3,287,127
2,645,321
3,287,127
2,645,321
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
164,418
164,838
Company pension contributions to defined contribution schemes
7,789
7,483
172,207
172,321

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

In the year £35,500 (2022 - £34,425) was paid to third parties for directors' services.

9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
224
62
Other interest income
440
107
Total income
664
169
DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Interest receivable and similar income
(Continued)
- 25 -
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
224
62
10
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
762
1,012
Interest on invoice finance arrangements
12,272
7,195
Other interest on financial liabilities
251,995
122,547
265,029
130,754
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
43,670
58,887
Deferred tax
Origination and reversal of timing differences
23,932
(823)
Total tax charge
67,602
58,064

The tax rate in the year increased to 25% of all taxable profits over £50,000, taxable profits under £50,000 are taxed at 19%. In the 2022 financial year all taxable profits were taxed at 19%.

DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
(Continued)
- 26 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
232,913
279,474
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
58,228
53,100
Tax effect of expenses that are not deductible in determining taxable profit
5,574
2,557
Tax effect of income not taxable in determining taxable profit
(2,200)
(1,672)
Permanent capital allowances in excess of depreciation
(14,932)
4,712
Deferred tax adjustments in respect of prior years
23,933
(823)
Tax at marginal rate
(3,477)
-
0
476
190
Taxation charge
67,602
58,064
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
250,000
-
DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
13
Tangible fixed assets
Group
Land and buildings long leasehold
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2023
1,018,383
145,298
440,134
1,603,815
Additions
365,092
31,955
135,356
532,403
Disposals
(133,036)
(79,469)
(111,469)
(323,974)
At 31 December 2023
1,250,439
97,784
464,021
1,812,244
Depreciation and impairment
At 1 January 2023
184,113
98,656
222,808
505,577
Depreciation charged in the year
28,381
16,756
56,032
101,169
Eliminated in respect of disposals
-
0
(79,469)
(111,469)
(190,938)
At 31 December 2023
212,494
35,943
167,371
415,808
Carrying amount
At 31 December 2023
1,037,945
61,841
296,650
1,396,436
At 31 December 2022
834,270
46,642
217,326
1,098,238
Company
Land and buildings long leasehold
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2023
1,018,383
145,298
440,134
1,603,815
Additions
365,092
31,955
135,356
532,403
Disposals
(133,036)
(79,469)
(111,469)
(323,974)
At 31 December 2023
1,250,439
97,784
464,021
1,812,244
Depreciation and impairment
At 1 January 2023
184,113
98,656
222,808
505,577
Depreciation charged in the year
28,381
16,756
56,032
101,169
Eliminated in respect of disposals
-
0
(79,469)
(111,469)
(190,938)
At 31 December 2023
212,494
35,943
167,371
415,808
Carrying amount
At 31 December 2023
1,037,945
61,841
296,650
1,396,436
At 31 December 2022
834,270
46,642
217,326
1,098,238
DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 28 -

The carrying value of land and buildings comprises:

Group
Company
2023
2022
2023
2022
£
£
£
£
Long leasehold
1,037,945
834,270
1,037,945
834,270
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
10,000
10,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
10,000
Carrying amount
At 31 December 2023
10,000
At 31 December 2022
10,000
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Dicksons of Inverness Limited
Scotland
Ordinary
100.00
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
182,178
135,699
182,178
135,699
Work in progress
179,598
161,147
179,598
161,147
Finished goods and goods for resale
5,904,936
5,409,432
5,904,936
5,409,432
6,266,712
5,706,278
6,266,712
5,706,278
DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Stocks
(Continued)
- 29 -

Included within vehicle stock is £269,794 (2022 - £116,783) of vehicles held on consignment stock. The consignment period is usually 180 days although in certain cases extensions are arranged. The stock becomes due for repayment on the earlier of stock being purchased or the expiry of the consignment period.

Stock is stated after provisions for impairment of £Nil (2022 - £Nil).

17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
223,902
207,939
223,902
207,939
Other debtors
401,499
579,241
401,499
579,241
Prepayments and accrued income
100,834
103,671
100,834
103,671
726,235
890,851
726,235
890,851
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
10,000
10,000
10,000
10,000
Other borrowings
20
157,550
120,786
157,550
120,786
Trade creditors
4,700,238
4,493,286
4,700,238
4,493,286
Amounts owed to group undertakings
-
0
-
0
10,000
10,000
Corporation tax payable
43,670
91,345
43,670
91,345
Other taxation and social security
364,775
82,357
364,775
82,357
Deferred income
22
6,450
25,800
6,450
25,800
Other creditors
322,903
259,769
322,903
259,769
Accruals and deferred income
109,210
96,871
109,210
96,871
5,714,796
5,180,214
5,724,796
5,190,214

The Bank of Scotland PLC holds a floating charge over the company's assets and a negative pledge.

 

Other borrowings represent a stocking facility with ALD Automotive which is secured on the vehicles funded and is repayable on demand.

19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
15,000
25,000
15,000
25,000
Deferred income
22
-
0
6,450
-
0
6,450
15,000
31,450
15,000
31,450
DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
25,000
35,000
25,000
35,000
Other loans
157,550
120,786
157,550
120,786
182,550
155,786
182,550
155,786
Payable within one year
167,550
130,786
167,550
130,786
Payable after one year
15,000
25,000
15,000
25,000
21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
48,759
49,582
Tax losses
23,932
(823)
72,691
48,759
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
48,759
49,582
Tax losses
23,932
(823)
72,691
48,759
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
48,759
48,759
Charge to profit or loss
23,932
23,932
Liability at 31 December 2023
72,691
72,691
DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
22
Deferred income
Group
Company
2023
2022
2023
2022
£
£
£
£
Other deferred income
6,450
32,250
6,450
32,250

Deferred income is included in the financial statements as follows:

Current liabilities
6,450
25,800
6,450
25,800
Non-current liabilities
-
0
6,450
-
0
6,450
6,450
32,250
6,450
32,250
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
109,607
89,938

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
'B' Ordinary shares of £1 each
29,818
29,818
29,818
29,818
'A' Ordinary shares of £1 each
600
600
600
600
'C' Ordinary shares of £1 each
13,732
13,732
13,732
13,732
44,150
44,150
44,150
44,150

'B' Ordinary shares have the following rights, preferences and restrictions:

The 'B' Ordinary shares are entitled to one vote on a written resolution or on a poll (and on a show of hands one vote per member), each share is entitled pari passu to dividend payments or any other distribution; directors may declare dividends on one or more share class only, each share is entitled pari passu to participate in capital distribution on wind up. The shares are not redeemable.

 

'A' Ordinary share have the following rights, preferences and restrictions:

The 'A' Ordinary shares carry no voting rights, each share is entitled pari passu to dividend payments or any other distribution; directors may declare dividends on one share class only, each share is entitled pari passu to participate in capital distribution on wind up. The shares are not redeemable.

 

'C' Ordinary shares have the following rights, preferences and restrictions:

The 'C' Ordinary shares are entitled to one vote on a written resolution or on a poll (and show of hands one vote per member), each share is entitled pari passu to dividend payments or any other distribution; directors may declare dividends on one share class only, each share is entitled pari passu to participate in capital distribution on wind up. The shares are not redeemable.

DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
25
Revaluation reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
197,128
199,871
197,128
199,871
Transfer to retained earnings
(2,743)
(2,743)
(2,743)
(2,743)
At the end of the year
194,385
197,128
194,385
197,128

The revaluation reserve relates to a revaluation of property to deemed cost on transaction to FRS 102.

26
Capital redemption reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
67,850
67,850
67,850
67,850

The capital redemption reserve arose on the purchase of shares by the company in previous years.

27
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
2,516,841
2,292,688
2,516,841
2,292,688
Profit for the year
165,311
221,410
165,311
221,410
Dividends
(250,000)
-
(250,000)
-
Transfer from revaluation reserve
2,743
2,743
2,743
2,743
At the end of the year
2,434,895
2,516,841
2,434,895
2,516,841
28
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
93,322
106,322
46,661
53,161
Between two and five years
332,288
384,288
166,144
192,144
In over five years
4,472,356
5,731,236
2,236,178
2,865,618
4,897,966
6,221,846
2,448,983
3,110,923
DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
28
Operating lease commitments
(Continued)
- 33 -

The amount of non-cancellable operating lease payments recognised as an expense during the year was £45,990 (2022 - £41,190).

29
Events after the reporting date

In March 2024, the company completed a buy back of 240 'A' Ordinary shares and 29,818 'B' Ordinary shares. Following the transaction Mr F Bryce is the company’s sole shareholder. The buy back was financed by a loan from the Bank of Ireland of £1,540,000 and the company's own funds.

 

The loan was drawn down in March 2024 and is repayable over an 84 month term. The Bank of Ireland have a bond and floating charge over all of the assets and undertakings of the company and standard security over the property of the company.

30
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
531,190
513,968
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Dividends
2023
2022
£
£
Group
Other related parties
27,272
-
Company
Other related parties
27,272
-
Other information

Dicksons 2020 Limited (Company in which the majority shareholders & directors are also shareholders & directors)

 

During the year sales were made to Dicksons 2020 Limited amounting to £96,346 (2022 - £92,120). During the year purchases were made from Dicksons 2020 Limited amounting to £781 (2022 - £633).

 

At the balance sheet date Dicksons 2020 Limited owed the company £3,279 (2022 - £7,913).

DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
31
Directors' transactions

Dividends totalling £222,728 (2022 - £0) were paid in the year in respect of shares held by the company's directors.

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors loan accounts
-
254,398
136,400
(207,728)
183,070
254,398
136,400
(207,728)
183,070
32
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
165,311
221,410
Adjustments for:
Taxation charged
67,602
58,064
Finance costs
265,029
130,754
Investment income
(664)
(169)
Gain on disposal of tangible fixed assets
(64,568)
-
Depreciation and impairment of tangible fixed assets
101,169
87,642
Movements in working capital:
Increase in stocks
(560,434)
(1,617,529)
Decrease/(increase) in debtors
164,616
(165,234)
Increase in creditors
564,843
1,422,055
Decrease in deferred income
(25,800)
(25,800)
Cash generated from operations
677,104
111,193
DICKSONS OF FORRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
33
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
165,311
221,410
Adjustments for:
Taxation charged
67,602
58,064
Finance costs
265,029
130,754
Investment income
(664)
(169)
Gain on disposal of tangible fixed assets
(64,568)
-
Depreciation and impairment of tangible fixed assets
101,169
87,642
Movements in working capital:
Increase in stocks
(560,434)
(1,617,529)
Decrease/(increase) in debtors
164,616
(165,234)
Increase in creditors
564,843
1,422,055
Decrease in deferred income
(25,800)
(25,800)
Cash generated from operations
677,104
111,193
34
Analysis of changes in net funds/(debt) - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
391,025
(236,641)
154,384
Borrowings excluding overdrafts
(155,786)
(26,764)
(182,550)
235,239
(263,405)
(28,166)
35
Analysis of changes in net funds/(debt) - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
391,025
(236,641)
154,384
Borrowings excluding overdrafts
(155,786)
(26,764)
(182,550)
235,239
(263,405)
(28,166)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100Mr A ScrimgeourMrs M W ScrimgeourMr F BryceMr H BryceMr J T MackenzieMr R DunlopMiss L MacpheeMr D 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