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Registered number: SC663297













T D C PARSONS PEEBLES LIMITED






DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

 
T D C PARSONS PEEBLES LIMITED
 

COMPANY INFORMATION


Directors
Neil Milne 
Helen Milne 
Karen McNeil 
John Douglas 




Company secretary
Shepherd & Wedderburn Secretaries Limited



Registered number
SC663297



Registered office
Bankhead Industrial Estate
Bankhead Avenue

Bucksburn

Aberdeen

AB21 9ET




Independent auditor
Anderson Anderson & Brown Audit LLP

Kingshill View

Prime Four Business Park

Kingswells

Aberdeen

AB15 8PU





 
T D C PARSONS PEEBLES LIMITED
 

CONTENTS



Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9 - 10
Statement of changes in equity
11
Notes to the financial statements
12 - 21


 
T D C PARSONS PEEBLES LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

The directors present their report and the financial statements for the year ended 30 September 2023.

Business review

Despite the backdrop of various macro environmental factors presenting risk to all businesses both in the UK and overseas during the financial year, including the ongoing Russo-Ukrainian war, high inflation, and continuing post pandemic supply chain disruptions, it is pleasing to report that the business achieved significant growth.  
Sales turnover for the year increased by 286% to £9,667,089 and this generated a healthy profit before tax of £935,110.
This high growth trajectory was achieved by the business through being successful in the award of several large contracts from domestic and international clients, which resulted in order intake during the year reaching £16.5 million, a new record level for the company.   This provides a strong order book with which to commence the current financial year.
The business combines the benefits of being a high voltage motor and generator OEM and a service provider.  The company has a well-established brand, with a large installed product base across the globe, and is continuing to increase business activity through the supply of spares, repairs to high voltage rotational equipment, and the manufacture of drop-in replacement machines.
The company provides services to a range of key industries including power generation, renewables, oil and gas, nuclear, petrochemicals, utilities, manufacturing and defence, in geographically diverse locations across the UK and globally, removing reliance on individual market sectors.  
There are several other factors which assist with the company’s operational resilience.  These include having a highly skilled and flexible workforce, and the capability to utilise labour resources with the same engineering disciplines from within the wider TDC Group.  The company has also expanded its global supply chain to limit reliance on individual vendors.  

Directors

The directors who served during the year were:

Neil Milne 
Helen Milne 
Karen McNeil 
John Douglas 

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware; and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Auditor

The auditor, Anderson Anderson & Brown Audit LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

Page 1

 
T D C PARSONS PEEBLES LIMITED
 

DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

This report was approved by the board and signed on its behalf.
 





Neil Milne
Director

Date: 4 April 2024

Page 2

 
T D C PARSONS PEEBLES LIMITED
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

The directors are responsible for preparing the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent; and


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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 3

 
T D C PARSONS PEEBLES LIMITED
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF T D C PARSONS PEEBLES LIMITED
 

Opinion


We have audited the financial statements of T D C Parsons Peebles Limited (the 'company') for the year ended 30 September 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 September 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 Auditor's 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 United Kingdom, including the Financial Reporting Council'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 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 reportOur 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.


Page 4

 
T D C PARSONS PEEBLES LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF T D C PARSONS PEEBLES LIMITED (CONTINUED)

Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' report has been prepared in accordance with applicable legal requirements.


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 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:


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; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' report and from the requirement to prepare a Strategic report.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, 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 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.


Page 5

 
T D C PARSONS PEEBLES LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF T D C PARSONS PEEBLES LIMITED (CONTINUED)

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.


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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, Employment, Health & Saftey and Taxation legislation.
We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:

Management override of controls to manipulate the company's key performance indicators to meet targets;
Timing and completeness of revenue recognition;
Management judgement applied in calculating provisions; and
Compliance with relevant laws and regulations which directly impact the financial statements and those that the company needs to compy with for the purpose of trading.

Our audit procedures to respond to these risks included:

Testing of journal entries and other adjustments for appropriateness;
Evaluating the business rationale of significant transactions outside the normal course of business;
Reviewing judgements made by management in their calculation of accounting estimates for potential management bias, including estimates with regard to revenue recognition;
Enquiries of management about litigation and claims and inspection of relevant correspondence;
Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non-compliance with laws and regulations; and
Performing a disclosure checklist on the financial statements to ensure Companies Act 2006 requirements are satisfied.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditor's report.


Page 6

 
T D C PARSONS PEEBLES LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF T D C PARSONS PEEBLES LIMITED (CONTINUED)

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 2006Our 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.





Graeme Penman (Senior statutory auditor)
  
for and on behalf of
Anderson Anderson & Brown Audit LLP
 
Statutory Auditor
  
Kingshill View
Prime Four Business Park
Kingswells
Aberdeen
AB15 8PU

4 April 2024
Page 7

 
T D C PARSONS PEEBLES LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023
2022
£
£

  

Turnover
  
9,667,089
2,501,514

Cost of sales
  
(6,781,071)
(1,965,006)

Gross profit
  
2,886,018
536,508

Administrative expenses
  
(1,950,908)
(1,188,442)

Other operating income
  
-
19,630

Operating profit/(loss)
  
935,110
(632,304)

Tax on profit/(loss)
  
(238,886)
(12,562)

Profit/(loss) for the financial year
  
696,224
(644,866)

There was no other comprehensive income for 2023 (2022 - £nil).

The notes on pages 12 to 21 form part of these financial statements.

Page 8

 
T D C PARSONS PEEBLES LIMITED
REGISTERED NUMBER:SC663297

BALANCE SHEET
AS AT 30 SEPTEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 5 
5
5

Tangible assets
 6 
608,183
211,918

  
608,188
211,923

Current assets
  

Stocks
 7 
494,067
233,854

Debtors: amounts falling due within one year
 8 
2,968,081
1,506,981

Cash at bank and in hand
  
859,523
127,701

  
4,321,671
1,868,536

Creditors: amounts falling due within one year
 9 
(4,381,271)
(2,287,650)

Net current liabilities
  
 
 
(59,600)
 
 
(419,114)

Total assets less current liabilities
  
548,588
(207,191)

Provisions for liabilities
  

Deferred tax
  
(108,033)
(48,478)

  
 
 
(108,033)
 
 
(48,478)

Net assets/(liabilities)
  
440,555
(255,669)


Capital and reserves
  

Called up share capital 
 10 
250,001
250,001

Profit and loss account
  
190,554
(505,670)

  
440,555
(255,669)


Page 9

 
T D C PARSONS PEEBLES LIMITED
REGISTERED NUMBER:SC663297

BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2023

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Neil Milne
Director

Date: 4 April 2024

The notes on pages 12 to 21 form part of these financial statements.

Page 10

 
T D C PARSONS PEEBLES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 October 2021
250,001
139,196
389,197



Profit for the year
-
(644,866)
(644,866)



At 1 October 2022
250,001
(505,670)
(255,669)



Profit for the year
-
696,224
696,224


At 30 September 2023
250,001
190,554
440,555


The notes on pages 12 to 21 form part of these financial statements.

Page 11

 
T D C PARSONS PEEBLES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

1.


General information

T D C Parsons Peebles Limited (the 'company') is a private company limited by shares incorporated in Scotland. The registered office is Bankhead Industrial Estate, Bankhead Avenue, Bucksburn, Aberdeen, United Kingdom, AB21 9ET. 
The principal activity of the company is that of electrical and mechanical engineering services. The company supplies a comprehensive range of services and products to the international energy, marine, utilities and manufacturing markets. These include high voltage electric motor and generator manufacture, maintenance and repairs.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).

 
2.2

Going concern

In making their going concern assessment the directors have considered cashflow forecasts to September 2025.  Taking into account current order levels and business activity, the company is forecasting a healthy profit for the financial year ending September 2024.  Based on the operating forecasts prepared, the directors are satisfied that the company has adequate financial resources to continue to operate and meet its liabilities as they fall due for at least 12 months from the date of approving the financial statements. The company is also part of the TDC Group and has access to funding support if required.
At the year end the company has net current liabilities of £59,600 (2022 - £419,114), and net assets of £440,555 (2022 net liabilities - £255,669) of which £123,945 (2022 - £954,223) relate to the intercompany loan.  The directors note the improvement in the strength of the balance sheet and do not consider the net current liability position to be a concern.  Thus, given the current circumstances and forecast projections, the directors have prepared the accounts on a going concern basis.

 
2.3

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 12

 
T D C PARSONS PEEBLES LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

The amount of profit attributable to the stage of completion of a long term contract is recognised when the outcome of the contract can be foreseen with reasonable certainty, Turnover for such contracts is stated at the cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous years. Provision is made for losses as soon as they are foreseen. 
Amounts recoverable on long-term contracts are included in debtors and represent turnover recognised in excess of payments on account. 

 
2.5

Operating leases: the company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 13

 
T D C PARSONS PEEBLES LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.7

Pensions

Defined contribution pension plan

The company contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 14

 
T D C PARSONS PEEBLES LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.9

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
20% straight line
Plant & machinery
-
10 - 20% straight line
Fixtures, fittings & equipment
-
20% - 33.3% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 15

 
T D C PARSONS PEEBLES LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.12

Debtors

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.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.14

Creditors

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

 
2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

 
2.16

Financial instruments

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's Balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
 
Page 16

 
T D C PARSONS PEEBLES LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)


2.16
Financial instruments (continued)


Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

Page 17

 
T D C PARSONS PEEBLES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In 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 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Depreciation
Depreciation is provided based on the estimated useful economic life of each class of asset, which is an  estimate made by management. Depreciation is taken to the profit and loss in order to write off the asset over its useful economic life. The rates used for depreciation are disclosed within note 2.10.
Work in Progess
The percentage complete of work in progress at the year end is a judgement exercised by the directors. They have reviewed actual costs both pre and post year end to ensure that the stage of completion is accurately identified and the corresponding costs and revenue recorded correctly. 


4.


Employees

The average monthly number of employees, including directors, during the year was 41 (2022 - 40).


5.


Intangible assets




Trademarks
Goodwill
Total

£
£
£



Cost


At 1 October 2022
4
1
5



At 30 September 2023

4
1
5






Net book value



At 30 September 2023
4
1
5



At 30 September 2022
4
1
5



Page 18

 
T D C PARSONS PEEBLES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

6.


Tangible fixed assets





Long-term leasehold property
Plant & machinery
Fixtures, fittings & equipment
Total

£
£
£
£



Cost or valuation


At 1 October 2022
24,070
198,061
56,206
278,337


Additions
97,154
263,922
117,936
479,012



At 30 September 2023

121,224
461,983
174,142
757,349



Depreciation


At 1 October 2022
6,059
46,689
13,671
66,419


Charge for the year on owned assets
7,678
45,056
30,013
82,747



At 30 September 2023

13,737
91,745
43,684
149,166



Net book value



At 30 September 2023
107,487
370,238
130,458
608,183



At 30 September 2022
18,011
151,372
42,535
211,918


7.


Stocks

2023
2022
£
£

Raw materials and consumables
87,337
94,388

Work in progress
406,730
139,466

494,067
233,854



8.


Debtors

2023
2022
£
£


Trade debtors
1,790,459
953,864

Other debtors
52,676
56,930

Prepayments and accrued income
106,104
87,787

Amounts recoverable on long-term contracts
1,018,842
408,400

2,968,081
1,506,981


Page 19

 
T D C PARSONS PEEBLES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

9.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
1,011,180
348,525

Amounts owed to group undertakings
123,945
954,223

Corporation tax
150,391
-

Other taxation and social security
84,207
87,062

Other creditors
29,412
22,343

Accruals and deferred income
2,982,136
875,497

4,381,271
2,287,650


Amounts owed to group undertakings are unsecured, interest free and repayable on demand. 


10.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



250,001 (2022 - 250,001) Ordinary shares of £1.00 each
250,001
250,001



11.


Pension commitments

The company's contributions to defined contribution pension schemes in the year were £63,897 (2022 - £52,611). Outstanding contributions accrued at the year end amounted to £15,230 (2022 - £12,704).


12.


Commitments under operating leases

At 30 September 2023, the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Total
1,440,000
1,643,140

Total lease commitments include a lease agreement in relation to it's operating premises. The lease, which has annual payments of £120,000, is due to expire on 30 September 2035. 


13.Other financial commitments

The company has a Cross Corporation Guarantee in place covering the bank borrowings of other group companies. At the year end the value of group borrowings was £1,449,762 (2022 - £1,749,621).

Page 20

 
T D C PARSONS PEEBLES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

14.


Related party transactions

During the year, the company paid rent of £120,000 (2022 - £120,000) to a pension fund which a director is a member of. As at the year end £84,000 (2022 - £84,000) was outstanding.
During the year the company entered into transactions, in the  normal course of business, with related parties. The company has taken advantage of the exemption available in FRS 102 Section 1AC.35 to not disclose transactions with 100% owned group companies. 


15.


Controlling party

The company is a wholly owned subsidiary of T D C (Aberdeen) Limited and its registered office is 37 Albyn Place, Aberdeen, AB10 1YN. T D C (Aberdeen) Limited represents the largest and smallest group which  prepares consolidated financial statements. A copy of the T D C (Aberdeen) Limited consolidated financial  statements are available from the company's registered office, 37 Albyn Place, Aberdeen, AB10 1YN.


Page 21