IRIS Accounts Production v23.4.0.336 SC280783 Board of Directors 1.12.22 30.11.23 30.11.23 true false true true false false true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWhSC2807832022-11-30SC2807832023-11-30SC2807832022-12-012023-11-30SC2807832021-11-30SC2807832021-12-012022-11-30SC2807832022-11-30SC280783ns15:Scotland2022-12-012023-11-30SC280783ns14:PoundSterling2022-12-012023-11-30SC280783ns10:Director12022-12-012023-11-30SC280783ns10:PrivateLimitedCompanyLtd2022-12-012023-11-30SC280783ns10:FRS1022022-12-012023-11-30SC280783ns10:Audited2022-12-012023-11-30SC280783ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-12-012023-11-30SC280783ns10:LargeMedium-sizedCompaniesRegimeForAccounts2022-12-012023-11-30SC280783ns10:FullAccounts2022-12-012023-11-30SC280783ns10:OrdinaryShareClass12022-12-012023-11-30SC280783ns10:Director22022-12-012023-11-30SC280783ns10:Director32022-12-012023-11-30SC280783ns10:Director42022-12-012023-11-30SC280783ns5:CurrentFinancialInstruments2023-11-30SC280783ns5:CurrentFinancialInstruments2022-11-30SC280783ns5:Non-currentFinancialInstruments2023-11-30SC280783ns5:Non-currentFinancialInstruments2022-11-30SC280783ns5:ShareCapital2023-11-30SC280783ns5:ShareCapital2022-11-30SC280783ns5:RevaluationReserve2023-11-30SC280783ns5:RevaluationReserve2022-11-30SC280783ns5:FurtherSpecificReserve1ComponentTotalEquity2023-11-30SC280783ns5:FurtherSpecificReserve1ComponentTotalEquity2022-11-30SC280783ns5:RetainedEarningsAccumulatedLosses2023-11-30SC280783ns5:RetainedEarningsAccumulatedLosses2022-11-30SC280783ns5:ShareCapital2021-11-30SC280783ns5:RetainedEarningsAccumulatedLosses2021-11-30SC280783ns5:RevaluationReserve2021-11-30SC280783ns5:FurtherSpecificReserve1ComponentTotalEquity2021-11-30SC280783ns5:RetainedEarningsAccumulatedLosses2021-12-012022-11-30SC280783ns5:RevaluationReserve2021-12-012022-11-30SC280783ns5:FurtherSpecificReserve1ComponentTotalEquity2021-12-012022-11-30SC280783ns5:RetainedEarningsAccumulatedLosses2022-12-012023-11-30SC280783ns5:RevaluationReserve2022-12-012023-11-30SC280783ns5:FurtherSpecificReserve1ComponentTotalEquity2022-12-012023-11-30SC280783ns5:OwnedOrFreeholdAssetsns5:LandBuildings2022-12-012023-11-30SC280783ns5:ShortLeaseholdAssetsns5:LandBuildings2022-12-012023-11-30SC280783ns5:PlantMachinery2022-12-012023-11-30SC280783ns5:FurnitureFittings2022-12-012023-11-30SC280783ns5:MotorVehicles2022-12-012023-11-30SC280783ns5:OwnedAssets2022-12-012023-11-30SC280783ns5:OwnedAssets2021-12-012022-11-30SC280783ns5:LeasedAssets2022-12-012023-11-30SC280783ns5:LeasedAssets2021-12-012022-11-30SC280783ns5:HirePurchaseContracts2022-12-012023-11-30SC280783ns5:HirePurchaseContracts2021-12-012022-11-30SC280783ns10:OrdinaryShareClass12021-12-012022-11-30SC280783ns5:LandBuildings2022-12-012023-11-30SC280783ns5:LandBuildings2023-11-30SC280783ns5:ShortLeaseholdAssetsns5:LandBuildings2023-11-30SC280783ns5:PlantMachinery2023-11-30SC280783ns5:LandBuildings2022-11-30SC280783ns5:ShortLeaseholdAssetsns5:LandBuildings2022-11-30SC280783ns5:PlantMachinery2022-11-30SC280783ns5:LandBuildings2022-11-30SC280783ns5:ShortLeaseholdAssetsns5:LandBuildings2022-11-30SC280783ns5:PlantMachinery2022-11-30SC280783ns5:FurnitureFittings2023-11-30SC280783ns5:MotorVehicles2023-11-30SC280783ns5:FurnitureFittings2022-11-30SC280783ns5:MotorVehicles2022-11-30SC280783ns5:FurnitureFittings2022-11-30SC280783ns5:MotorVehicles2022-11-30SC280783ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2022-11-30SC280783ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2022-11-30SC280783ns5:LeasedAssetsHeldAsLessee2022-11-30SC280783ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2022-12-012023-11-30SC280783ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2022-12-012023-11-30SC280783ns5:LeasedAssetsHeldAsLessee2022-12-012023-11-30SC280783ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2023-11-30SC280783ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-11-30SC280783ns5:LeasedAssetsHeldAsLessee2023-11-30SC280783ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2022-11-30SC280783ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2022-11-30SC280783ns5:LeasedAssetsHeldAsLessee2022-11-30SC280783ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-11-30SC280783ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-11-30SC280783ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2023-11-30SC280783ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2022-11-30SC280783ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-11-30SC280783ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2022-11-30SC280783ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-11-30SC280783ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-11-30SC280783ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2023-11-30SC280783ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2022-11-30SC280783ns5:HirePurchaseContracts2023-11-30SC280783ns5:HirePurchaseContracts2022-11-30SC280783ns5:DeferredTaxation2022-11-30SC280783ns5:DeferredTaxation2022-12-012023-11-30SC280783ns5:DeferredTaxation2023-11-30SC280783ns10:OrdinaryShareClass12023-11-30SC280783ns5:RetainedEarningsAccumulatedLosses2022-11-30SC280783ns5:RevaluationReserve2022-11-30SC280783ns5:FurtherSpecificReserve1ComponentTotalEquity2022-11-30SC280783ns5:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity2022-12-012023-11-30SC280783ns5:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity2021-12-012022-11-30SC280783ns5:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity2023-11-30SC280783ns5:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity2022-11-30SC280783ns5:OtherRelatedParties2022-12-012023-11-30SC280783ns5:OtherRelatedParties2021-12-012022-11-30SC280783ns5:OtherRelatedParties2023-11-30SC280783ns5:OtherRelatedParties2022-11-30
REGISTERED NUMBER: SC280783 (Scotland)















Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 30 November 2023

for

Dow Group Limited

Dow Group Limited (Registered number: SC280783)






Contents of the Financial Statements
for the Year Ended 30 November 2023




Page

Strategic Report 1

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 14


Dow Group Limited (Registered number: SC280783)

Strategic Report
for the Year Ended 30 November 2023

The directors present their strategic report for the year ended 30 November 2023.

REVIEW OF BUSINESS
The directors would like to report a successful trading year in which the company has generated turnover of £14,689,916, a decrease of only 0.1% from the £14,713,724 generated in the prior year. However, profits before tax have increased to £1,484,092 from £1,314,548 in the prior year.

The gross margin has increased from 20.0% to 22.0% in the current year. Given the current increase in costs across the wider economy as a whole, the directors are very pleased to have improved on an already strong margin in the current year.

At the year end the company had shareholders' funds of £4,003,708 (2022: £3,464,564) including retained earnings of £3,422,243 (2022: £2,855,416). The company has cash at the bank of £2,632,877 (2022: £2,521,320) with net current assets of £2,004,995 (2022: £1,981,129) and the directors believe the company's position to be satisfactory.


Dow Group Limited (Registered number: SC280783)

Strategic Report
for the Year Ended 30 November 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties that could impact the company's performance and our mitigating activities:

Trading environment
Impact on sales, margins, costs, profit and cash of:

Economic conditions - the business is directly affected by the construction industry which is cyclical and typically lags behind the general economic cycle by 12 and 24 months. Mitigating activities include prudent management through the different phases of the economic cycle, achieved by the use of a flexible business model. We aim to have a sound capital structure and stringent financial management in recognition of the cyclical nature of our market and to be able to withstand market shocks.

Competitor activity - in an already competitive market the company faces increased competition from large national competitors and smaller local operators which could result in a reduced market share and lower revenue. Mitigating activities include the regular monitoring of our market share and the performance of our competitors. We continue to create a commercial advantage by consistently providing the highest level of service at a price which offers value to our customers. We also aim to excel in areas that provide barriers to entry to newcomers and by differentiation of service, for example, avoidance of landfill through the process of Refuse Derived Fuels.

Health and safety/environmental impact - compliance with laws and regulations governing occupational health and safety matters and the wider environment is essential to ensure the safety of employees, the public and the environment and avoid the risk of reputational damage to the company. Mitigating activities include ensuring that we have adequate insurance cover and maintaining and updating appropriate health and safety and environmental policies. We provide induction training for new staff and regular refresher training for existing staff to reinforce the policies and ensure a safe working environment. We also offer a programme of support to customers to allow them to fulfil their responsibilities to their own workforce when using our equipment.

Business strategy
We face a number of risks in the environment in which we operate as there are many competitors in this sector. We aim to manage and monitor these risks and any factors which could impact our plans for long-term sustainable growth of the company. We recognise that risk is inherent in all business activities and must be balanced when assessing returns. Successful management of these risks is therefore key to accomplishing our strategic objectives and the long-term sustainable growth of the business.

Management and staff
Key risks would be reliance on key personnel along with the availability and retention of adequately qualified staff. Mitigating activities include succession planning, commitment to open communication with staff and monitoring employee satisfaction. Internal and external training is also available for all staff. Retention of staff is paramount to our business goals and we focus on this to ensure continuity, efficient use of resources and increased productivity to achieve the maximum profit.

ON BEHALF OF THE BOARD:





S P Baxter - Director


29 February 2024

Dow Group Limited (Registered number: SC280783)

Report of the Directors
for the Year Ended 30 November 2023

The directors present their report with the financial statements of the company for the year ended 30 November 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the provision of waste management services.

DIVIDENDS
The total distribution of dividends for the year ended 30 November 2023 will be £584,000.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 December 2022 to the date of this report.

S P Baxter
W M Dow
S H M Dow

Other changes in directors holding office are as follows:

G W Green - appointed 22 November 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Dow Group Limited (Registered number: SC280783)

Report of the Directors
for the Year Ended 30 November 2023


AUDITORS
Drummond Laurie CA are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:





S P Baxter - Director


29 February 2024

Report of the Independent Auditors to the Members of
Dow Group Limited

Opinion
We have audited the financial statements of Dow Group Limited (the 'company') for the year ended 30 November 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 30 November 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Dow Group Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

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.

Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and regulations related to fraudulent manipulation of the financial statements, including the risk of override of controls, to reduce profits and tax liabilities. We determined that the most likely method of manipulation would be the posting of inappropriate journal entries. Audit procedures performed by the audit engagement team consisted of a review of large and unusual journal entries, challenging assumptions and judgements made by management in significant accounting estimates, discussions with management related to known or suspected instances of non-compliance with laws and regulations, review of Board minutes where available, and an evaluation of management controls designed to prevent and detect irregularities.

There are inherent limitations in the audit procedures described above 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 would become aware of it. Also, 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 deliberate concealment by, for example, forgery or intentional misrepresentations or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Dow Group Limited


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 a Report of the Auditors 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.




Greig Brown (Senior Statutory Auditor)
for and on behalf of Drummond Laurie CA
Statutory Auditor
Unit 5
Gateway Business Park
Beancross Road
Grangemouth
FK3 8WX

6 March 2024

Dow Group Limited (Registered number: SC280783)

Statement of Comprehensive Income
for the Year Ended 30 November 2023

30.11.23 30.11.22
Notes £    £   

TURNOVER 14,689,916 14,713,724

Cost of sales (11,452,893 ) (11,769,051 )
GROSS PROFIT 3,237,023 2,944,673

Administrative expenses (1,752,142 ) (1,570,164 )
1,484,881 1,374,509

Other operating income 75,315 (198 )
OPERATING PROFIT 4 1,560,196 1,374,311

Interest receivable and similar income 39,324 -
1,599,520 1,374,311

Interest payable and similar expenses 5 (115,428 ) (59,763 )
PROFIT BEFORE TAXATION 1,484,092 1,314,548

Tax on profit 6 (360,948 ) (281,610 )
PROFIT FOR THE FINANCIAL YEAR 1,123,144 1,032,938

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,123,144

1,032,938

Dow Group Limited (Registered number: SC280783)

Balance Sheet
30 November 2023

30.11.23 30.11.22
Notes £    £   
FIXED ASSETS
Tangible assets 8 4,195,150 3,894,828

CURRENT ASSETS
Stocks 9 3,016 42,013
Debtors 10 3,249,911 3,475,321
Cash at bank 2,632,877 2,521,320
5,885,804 6,038,654
CREDITORS
Amounts falling due within one year 11 (3,880,809 ) (4,057,525 )
NET CURRENT ASSETS 2,004,995 1,981,129
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,200,145

5,875,957

CREDITORS
Amounts falling due after more than one year 12 (1,313,979 ) (1,637,766 )

PROVISIONS FOR LIABILITIES 16 (882,458 ) (773,627 )
NET ASSETS 4,003,708 3,464,564

CAPITAL AND RESERVES
Called up share capital 17 100 100
Revaluation reserve 18 55,365 83,048
Other reserves 18 526,000 526,000
Retained earnings 18 3,422,243 2,855,416
SHAREHOLDERS' FUNDS 4,003,708 3,464,564

The financial statements were approved by the Board of Directors and authorised for issue on 29 February 2024 and were signed on its behalf by:





S P Baxter - Director


Dow Group Limited (Registered number: SC280783)

Statement of Changes in Equity
for the Year Ended 30 November 2023

Called up
share Retained Revaluation Other Total
capital earnings reserve reserves equity
£    £    £    £    £   
Balance at 1 December 2021 100 2,157,795 110,731 526,000 2,794,626

Changes in equity
Dividends - (363,000 ) - - (363,000 )
Total comprehensive income - 1,060,621 (27,683 ) - 1,032,938
Balance at 30 November 2022 100 2,855,416 83,048 526,000 3,464,564

Changes in equity
Dividends - (584,000 ) - - (584,000 )
Total comprehensive income - 1,150,827 (27,683 ) - 1,123,144
Balance at 30 November 2023 100 3,422,243 55,365 526,000 4,003,708

Dow Group Limited (Registered number: SC280783)

Cash Flow Statement
for the Year Ended 30 November 2023

30.11.23 30.11.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,166,238 1,841,019
Interest paid (15,175 ) (5,062 )
Interest element of hire purchase payments
paid

(100,253

)

(54,701

)
Tax paid - (8,198 )
Net cash from operating activities 2,050,810 1,773,058

Cash flows from investing activities
Purchase of tangible fixed assets (514,147 ) (356,043 )
Sale of tangible fixed assets 214,645 142,450
Interest received 39,324 -
Net cash from investing activities (260,178 ) (213,593 )

Cash flows from financing activities
Loan repayments in year (52,933 ) (49,564 )
Capital repayments in year (993,075 ) (979,106 )
Amount withdrawn by directors (49,067 ) (7,133 )
Equity dividends paid (584,000 ) (363,000 )
Net cash from financing activities (1,679,075 ) (1,398,803 )

Increase in cash and cash equivalents 111,557 160,662
Cash and cash equivalents at beginning of
year

2

2,521,320

2,360,658

Cash and cash equivalents at end of year 2 2,632,877 2,521,320

Dow Group Limited (Registered number: SC280783)

Notes to the Cash Flow Statement
for the Year Ended 30 November 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
30.11.23 30.11.22
£    £   
Profit before taxation 1,484,092 1,314,548
Depreciation charges 880,115 806,159
Profit on disposal of fixed assets (148,649 ) (107,198 )
Finance costs 115,428 59,763
Finance income (39,324 ) -
2,291,662 2,073,272
Decrease in stocks 38,997 594
Decrease/(increase) in trade and other debtors 225,410 (82,235 )
Decrease in trade and other creditors (389,831 ) (150,612 )
Cash generated from operations 2,166,238 1,841,019

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 November 2023
30.11.23 1.12.22
£    £   
Cash and cash equivalents 2,632,877 2,521,320
Year ended 30 November 2022
30.11.22 1.12.21
£    £   
Cash and cash equivalents 2,521,320 2,360,658


Dow Group Limited (Registered number: SC280783)

Notes to the Cash Flow Statement
for the Year Ended 30 November 2023

3. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

Other
non-cash
At 1.12.22 Cash flow changes At 30.11.23
£    £    £    £   
Net cash
Cash at bank 2,521,320 111,557 2,632,877
2,521,320 111,557 2,632,877
Debt
Finance leases (2,220,855 ) 993,075 (732,285 ) (1,960,065 )
Debts falling due
within 1 year (52,933 ) (4,118 ) - (57,051 )
Debts falling due
after 1 year (235,178 ) 57,051 - (178,127 )
(2,508,966 ) 1,046,008 (732,285 ) (2,195,243 )
Total 12,354 1,157,565 (732,285 ) 437,634

Dow Group Limited (Registered number: SC280783)

Notes to the Financial Statements
for the Year Ended 30 November 2023

1. STATUTORY INFORMATION

Dow Group Limited is a private company, limited by shares, domiciled in Scotland, registration number SC280783. The registered office is 23 Lenziemill Road, Lenziemill Industrial Estate, Cumbernauld, G67 2RL.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover
Turnover includes net invoiced sales of waste management services, excluding value added tax. Sales are recognised at the point at which the service is complete.

Tangible fixed assets and depreciation
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - not provided
Short leasehold - 25% on cost
Plant and machinery - 25% on cost, 20% on cost and 10% on cost
Fixtures and fittings - 50% on cost, 33% on cost and 20% on cost
Motor vehicles - 50% on cost, 33% on cost and 20% on cost

Tangible fixed assets are stated at cost less depreciation. Cost represent purchase price together with any incidental costs of acquisition.

The directors have considered the residual value of all tangible fixed assets to be immaterial and therefore all tangible fixed assets are depreciated to nil value.

No depreciation has been provided on freehold property as this is currently land and assets under the course of construction.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is represented by purchase price.

Dow Group Limited (Registered number: SC280783)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Financial assets
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

If transaction costs are immaterial and the credit period is short, amortised cost is equal to the nominal value less any allowance for credit losses. Amortised interest is recognised as Interest income within the Income Statement.

Where loans are provided interest-free or below market rate, the market value on initial recognition is required to be estimated by discounting the loan amount to the present value of future payments using an equivalent rate of a similar instrument.

Financial liabilities
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

If transaction costs are immaterial and the credit period is short, amortised cost is equal to the nominal value. The amortisation of financial liabilities is recognised as an Interest expense within the Income Statement.

Where loans are provided interest-free or below market rate, the market value on initial recognition is required to be estimated by discounting the loan amount to the present value of future payments using an equivalent rate of a similar instrument.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Dow Group Limited (Registered number: SC280783)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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.

Cash and cash equivalents
Cash and cash equivalents include cash at bank and in hand and highly liquid interest-bearing securities with maturities of three months or less. In the cash-flow statement, cash and cash equivalents are shown net of bank overdrafts, which are included as current borrowings in liabilities on the balance sheet.

Going concern
The directors of the company have reviewed the company's financial position for 12 months from the balance sheet signing date and it is the directors belief that the company should prepare financial statements on a going concern basis.

Significant estimates and judgements
The preparation of financial statements required management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and assumptions are reviewed on an ongoing basis and revisions to estimates are recognised in the period in which the estimate is revised and in any future periods affected. The following are key estimates and judgements:

a) Bad debt provisions
The company regularly reviews its sales ledger to identify any debtors which will potentially not be paid. The amounts not expected to be received are then provided for in the accounts to be prudent.

Depreciation and provisions are also key estimates and judgements which are detailed in other accounting policies.

Dow Group Limited (Registered number: SC280783)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

3. EMPLOYEES AND DIRECTORS
30.11.23 30.11.22
£    £   
Wages and salaries 2,163,121 2,146,426
Social security costs 218,010 187,536
Other pension costs 36,236 34,840
2,417,367 2,368,802

The average number of employees during the year was as follows:
30.11.23 30.11.22

Directors 2 2
Management and admin 17 16
Plant operators, drivers and depot staff 45 53
64 71

30.11.23 30.11.22
£    £   
Directors' remuneration 63,582 50,565
Directors' pension contributions to money purchase schemes 173 173

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

30.11.23 30.11.22
£    £   
Other operating leases 67,204 67,204
Depreciation - owned assets 204,902 170,403
Depreciation - assets on hire purchase contracts 675,212 635,754
Profit on disposal of fixed assets (148,649 ) (107,198 )
Auditors' remuneration 7,285 6,875

5. INTEREST PAYABLE AND SIMILAR EXPENSES
30.11.23 30.11.22
£    £   
Bank loan interest 15,175 5,062
Hire purchase 100,253 54,701
115,428 59,763

Dow Group Limited (Registered number: SC280783)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
30.11.23 30.11.22
£    £   
Current tax:
UK corporation tax 252,117 -
Over/under provision - (43,496 )
Total current tax 252,117 (43,496 )

Deferred tax 108,831 325,106
Tax on profit 360,948 281,610

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

30.11.23 30.11.22
£    £   
Profit before tax 1,484,092 1,314,548
Profit multiplied by the standard rate of corporation tax in the UK of
23.011% (2022 - 19%)

341,504

249,764

Effects of:
Expenses not deductible for tax purposes 2,057 1,684
Income not taxable for tax purposes (34,206 ) (20,368 )
Capital allowances in excess of depreciation (48,400 ) (238,378 )
Utilisation of tax losses (8,838 ) -
Adjustments to tax charge in respect of previous periods - (43,496 )
Deferred tax movement 108,831 325,106
Unutilised tax losses - 7,298
Total tax charge 360,948 281,610

7. DIVIDENDS
30.11.23 30.11.22
£    £   
Ordinary shares of £1 each
Final 584,000 363,000

Dow Group Limited (Registered number: SC280783)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

8. TANGIBLE FIXED ASSETS
Freehold Short Plant and
property leasehold machinery
£    £    £   
COST OR VALUATION
At 1 December 2022 310,491 63,149 5,287,941
Additions 99,984 143,129 677,301
Disposals - - (380,252 )
Reclassification/transfer - 162,041 (162,041 )
At 30 November 2023 410,475 368,319 5,422,949
DEPRECIATION
At 1 December 2022 - 30,763 2,809,744
Charge for year - 10,168 450,313
Eliminated on disposal - - (373,751 )
At 30 November 2023 - 40,931 2,886,306
NET BOOK VALUE
At 30 November 2023 410,475 327,388 2,536,643
At 30 November 2022 310,491 32,386 2,478,197

Fixtures
and Motor
fittings vehicles Totals
£    £    £   
COST OR VALUATION
At 1 December 2022 78,523 2,359,821 8,099,925
Additions 9,223 316,795 1,246,432
Disposals (20,929 ) (723,177 ) (1,124,358 )
Reclassification/transfer - - -
At 30 November 2023 66,817 1,953,439 8,221,999
DEPRECIATION
At 1 December 2022 33,274 1,331,316 4,205,097
Charge for year 19,841 399,792 880,114
Eliminated on disposal (20,922 ) (663,689 ) (1,058,362 )
At 30 November 2023 32,193 1,067,419 4,026,849
NET BOOK VALUE
At 30 November 2023 34,624 886,020 4,195,150
At 30 November 2022 45,249 1,028,505 3,894,828

Included in cost or valuation of land and buildings is freehold land of £ 158,998 (2022 - £ 158,998 ) which is not depreciated.

Included within freehold property is £251,477 (2022: £151,493) of assets under construction at the year end.

Dow Group Limited (Registered number: SC280783)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

8. TANGIBLE FIXED ASSETS - continued

Cost or valuation at 30 November 2023 is represented by:

Freehold Short Plant and
property leasehold machinery
£    £    £   
Valuation in 2015 - - 276,829
Cost 410,475 368,319 5,146,120
410,475 368,319 5,422,949

Fixtures
and Motor
fittings vehicles Totals
£    £    £   
Valuation in 2015 - - 276,829
Cost 66,817 1,953,439 7,945,170
66,817 1,953,439 8,221,999

If plant and machinery had not been revalued it would have been included at the following historical cost:

30.11.23 30.11.22
£    £   
Cost 600,000 600,000
Aggregate depreciation 600,000 600,000

Plant and machinery was valued on an open market basis on 11 December 2014 by EMS Environmental Marketing Solutions Ltd .

Dow Group Limited (Registered number: SC280783)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

8. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Short Plant and Motor
leasehold machinery vehicles Totals
£    £    £    £   
COST OR VALUATION
At 1 December 2022 - 3,716,113 1,442,173 5,158,286
Additions 59,712 426,875 245,698 732,285
Disposals - (105,500 ) (61,995 ) (167,495 )
Transfer to ownership - (109,517 ) (200,850 ) (310,367 )
At 30 November 2023 59,712 3,927,971 1,425,026 5,412,709
DEPRECIATION
At 1 December 2022 - 1,739,926 532,893 2,272,819
Charge for year 199 354,899 320,114 675,212
Eliminated on disposal - (105,500 ) (33,256 ) (138,756 )
Transfer to ownership - (33,705 ) (137,144 ) (170,849 )
At 30 November 2023 199 1,955,620 682,607 2,638,426
NET BOOK VALUE
At 30 November 2023 59,513 1,972,351 742,419 2,774,283
At 30 November 2022 - 1,976,187 909,280 2,885,467

9. STOCKS
30.11.23 30.11.22
£    £   
Raw materials 3,016 42,013

10. DEBTORS
30.11.23 30.11.22
£    £   
Amounts falling due within one year:
Trade debtors 1,835,372 2,082,641
Amounts owed by related parties 365,032 301,295
Amounts recoverable on contract - 13,371
VAT - 7,817
Prepayments and accrued income 269,507 220,197
2,469,911 2,625,321

Amounts falling due after more than one year:
Amounts owed by related parties 780,000 850,000

Aggregate amounts 3,249,911 3,475,321

Dow Group Limited (Registered number: SC280783)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.11.23 30.11.22
£    £   
Bank loans and overdrafts (see note 13) 57,051 52,933
Hire purchase contracts (see note 14) 824,213 818,267
Trade creditors 1,571,409 1,853,676
Amounts owed to related parties 6,650 227,761
Tax 252,117 -
Social security and other taxes 49,120 55,565
VAT 201,209 -
Other creditors 91,192 106,008
Directors' current accounts 263,800 312,867
Accruals and deferred income 564,048 630,448
3,880,809 4,057,525

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
30.11.23 30.11.22
£    £   
Bank loans (see note 13) 178,127 235,178
Hire purchase contracts (see note 14) 1,135,852 1,402,588
1,313,979 1,637,766

13. LOANS

An analysis of the maturity of loans is given below:

30.11.23 30.11.22
£    £   
Amounts falling due within one year or on demand:
Bank loans 57,051 52,933

Amounts falling due between one and two years:
Bank loans - 1-2 years 61,170 57,051

Amounts falling due between two and five years:
Bank loans - 2-5 years 116,957 178,127

In September 2021 the company obtained a £350,000 loan through the Coronavirus Business Interruption Loan Scheme from Close Brothers. Capital repayments are made in 72 monthly installments from September 2021 with interest charged at 3.5% from September 2022.

Dow Group Limited (Registered number: SC280783)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

30.11.23 30.11.22
£    £   
Net obligations repayable:
Within one year 824,213 818,267
Between one and five years 1,135,852 1,402,588
1,960,065 2,220,855

15. SECURED DEBTS

The following secured debts are included within creditors:

30.11.23 30.11.22
£    £   
Hire purchase contracts 1,960,065 2,220,855

Hire purchase contracts are secured on the assets to which they relate.

16. PROVISIONS FOR LIABILITIES
30.11.23 30.11.22
£    £   
Deferred tax 882,458 773,627

Deferred
tax
£   
Balance at 1 December 2022 773,627
Provided during year 108,831
Balance at 30 November 2023 882,458

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.11.23 30.11.22
value: £    £   
100 Ordinary £1 100 100

Dow Group Limited (Registered number: SC280783)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

18. RESERVES
Retained Revaluation Other
earnings reserve reserves Totals
£    £    £    £   

At 1 December 2022 2,855,416 83,048 526,000 3,464,464
Profit for the year 1,123,144 1,123,144
Dividends (584,000 ) (584,000 )
Transfer 27,683 (27,683 ) - -
At 30 November 2023 3,422,243 55,365 526,000 4,003,608

For a number of specific assets, the company operates a policy of self insurance due to restrictively high quoted costs. The directors consider it prudent to allocate a proportion of reserves to cover potential repairs or replacement of these assets due to unexpected breakdown or damage.

19. ULTIMATE PARENT COMPANY

1951 Group Holdings Limited is regarded by the directors as being the company's ultimate parent company. This has been the case since shareholdings were transferred on 1st December 2023.

1951 Group Holdings Limited has a registered office of Unit 5 Gateway Business Park, Beancross Road, Grangemouth, Scotland, FK3 8WX.

20. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
30.11.23 30.11.22
£    £   
Sales 945,540 1,026,114
Purchases 1,307,943 2,447,154
Amount due from related party 1,145,032 1,151,295
Amount due to related party - 214,460

Other related parties
30.11.23 30.11.22
£    £   
Rent payable 66,500 67,204
Amount due to related party 6,650 13,301

21. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is the Board of Directors.