GORDON MITCHELL (CONTRACTORS) LIMITED

Company Registration Number:
SC189883 (Scotland)

Unaudited abridged accounts for the year ended 29 May 2023

Period of accounts

Start date: 01 June 2022

End date: 29 May 2023

GORDON MITCHELL (CONTRACTORS) LIMITED

Contents of the Financial Statements

for the Period Ended 29 May 2023

Balance sheet
Notes

GORDON MITCHELL (CONTRACTORS) LIMITED

Balance sheet

As at 29 May 2023


Notes

2023

2022


£

£
Fixed assets
Tangible assets: 3 821,900 777,833
Total fixed assets: 821,900 777,833
Current assets
Stocks: 174,210 76,040
Debtors:   1,624,600 1,085,019
Cash at bank and in hand: 214,846 190,693
Total current assets: 2,013,656 1,351,752
Creditors: amounts falling due within one year:   (1,854,479) (1,342,217)
Net current assets (liabilities): 159,177 9,535
Total assets less current liabilities: 981,077 787,368
Creditors: amounts falling due after more than one year: 4 (20,000) (34,234)
Provision for liabilities: (144,528) (109,748)
Total net assets (liabilities): 816,549 643,386
Capital and reserves
Called up share capital: 10,000 10,000
Profit and loss account: 806,549 633,386
Shareholders funds: 816,549 643,386

The notes form part of these financial statements

GORDON MITCHELL (CONTRACTORS) LIMITED

Balance sheet statements

For the year ending 29 May 2023 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

The members have agreed to the preparation of abridged accounts for this accounting period in accordance with Section 444(2A).

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The directors have chosen to not file a copy of the company’s profit & loss account.

This report was approved by the board of directors on 21 February 2024
and signed on behalf of the board by:

Name: GORDON MITCHELL
Status: Director

The notes form part of these financial statements

GORDON MITCHELL (CONTRACTORS) LIMITED

Notes to the Financial Statements

for the Period Ended 29 May 2023

1. Accounting policies

These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

Turnover policy

Turnover is recognised at the fair value of the consideration received or receivable for goods and servicesprovided in the normal course of business, and is shown net of VAT and other sales related taxes. The fairvalue 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 isthe present value of the future receipts. The difference between the fair value of the consideration and thenominal amount received is recognised as interest income.Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of thegoods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measuredreliably, it is probable that the economic benefits associated with the transaction will flow to the entity and thecosts incurred or to be incurred in respect of the transaction can be measured reliably.Revenue from contracts for the provision of professional services is recognised by reference to the stage ofcompletion when the stage of completion, costs incurred and costs to complete can be estimated reliably. Thestage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staffrates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenueis recognised only to the extent of the expenses recognised that it is probable will be recovered.

Tangible fixed assets and depreciation policy

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net ofdepreciation and any impairment losses.Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over theiruseful lives on the following bases:Leasehold improvements - 10% reducing balancePlant and equipment - 20% reducing balanceFixtures and fittings - 20% reducing balanceMotor vehicles - 20% reducing balanceThe gain or loss arising on the disposal of an asset is determined as the difference between the sale proceedsand the carrying value of the asset, and is credited or charged to profit or loss.

Other accounting policies

Going concernThe directors have assessed the Balance Sheet and likely future cash flows at the date of approving thesefinancial statements. The directors have a reasonable expectation that the Company has adequate resourcesto continue in operational existence and to meet its financial obligations as they fall due for at least 12 monthsfrom the date of signing these financial statements. Accordingly, they continue to adopt the going concernbasis in preparing the financial statements.StocksStocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costcomprises direct materials and, where applicable, direct labour costs and those overheads that have beenincurred in bringing the stocks to their present location and condition.Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacementcost, adjusted where applicable for any loss of service potential.At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocksover its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit orloss. Reversals of impairment losses are also recognised in profit or loss.Cash and cash equivalentsCash and cash equivalents are basic financial assets and include cash in hand, deposits held at call withbanks, other short-term liquid investments with original maturities of three months or less, and bankoverdrafts. Bank overdrafts are shown within borrowings in current liabilities.TaxationThe tax expense represents the sum of the tax currently payable and deferred tax.Current taxThe tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit asreported in the profit and loss account because it excludes items of income or expense that are taxable ordeductible in other years and it further excludes items that are never taxable or deductible. The company’sliability for current tax is calculated using tax rates that have been enacted or substantively enacted by thereporting end date.Deferred taxDeferred tax liabilities are generally recognised for all timing differences and deferred tax assets arerecognised to the extent that it is probable that they will be recovered against the reversal of deferred taxliabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing differencearises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affectsneither the tax profit nor the accounting profit.The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extentthat it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to berecovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liabilityis settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, exceptwhen it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt within equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right tooffset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by thesame tax authority.Employee benefitsThe costs of short-term employee benefits are recognised as a liability and an expense, unless those costsare 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 arereceived.Termination benefits are recognised immediately as an expense when the company is demonstrablycommitted to terminate the employment of an employee or to provide termination benefits.Retirement benefitsPayments to defined contribution retirement benefit schemes are charged as an expense as they fall due.LeasesLeases are classified as finance leases whenever the terms of the lease transfer substantially all the risks andrewards 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 ofinception and the present value of the minimum lease payments. The related liability is included in the balancesheet as a finance lease obligation. Lease payments are treated as consisting of capital and interestelements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on theremaining balance of the liability.Rentals payable under operating leases, including any lease incentives received, are charged to profit or losson a straight line basis over the term of the relevant lease except where another more systematic basis ismore representative of the time pattern in which economic benefits from the leases asset are consumed.Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease.Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amountof the leased asset and recognised on a straight line basis over the lease term.Judgements and key sources of estimation uncertaintyIn the application of the company’s accounting policies, the directors are required to make judgements,estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparentfrom other sources. The estimates and associated assumptions are based on historical experience and otherfactors 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 accountingestimates are recognised in the period in which the estimate is revised where the revision affects only thatperiod, or in the period of the revision and future periods where the revision affects both current and futureperiods.

GORDON MITCHELL (CONTRACTORS) LIMITED

Notes to the Financial Statements

for the Period Ended 29 May 2023

2. Employees

2023 2022
Average number of employees during the period 33 32

GORDON MITCHELL (CONTRACTORS) LIMITED

Notes to the Financial Statements

for the Period Ended 29 May 2023

3. Tangible Assets

Total
Cost £
At 01 June 2022 3,891,046
Additions 237,434
Disposals (62,000)
At 29 May 2023 4,066,480
Depreciation
At 01 June 2022 3,113,213
Charge for year 132,400
On disposals (1,033)
At 29 May 2023 3,244,580
Net book value
At 29 May 2023 821,900
At 31 May 2022 777,833

GORDON MITCHELL (CONTRACTORS) LIMITED

Notes to the Financial Statements

for the Period Ended 29 May 2023

4. Creditors: amounts falling due after more than one year note

Other creditors are comprised of hire purchase contracts which are secured over the assets to which they relate to.

GORDON MITCHELL (CONTRACTORS) LIMITED

Notes to the Financial Statements

for the Period Ended 29 May 2023

5. Financial commitments

LesseeAt the reporting end date the company had outstanding commitments for future minimum lease paymentsunder non-cancellable operating leases, of £20,000 (2022: £20,000).