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REGISTERED NUMBER: SC070183 (Scotland)



















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

FOR

STEWART LANDSCAPES (CONTRACTS) LIMITED

STEWART LANDSCAPES (CONTRACTS) LIMITED (REGISTERED NUMBER: SC070183)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Income and Retained Earnings 9

Balance Sheet 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


STEWART LANDSCAPES (CONTRACTS) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JULY 2023







DIRECTORS: A D Mackenzie
D J M Laird
K Turley





SECRETARY: A D Mackenzie





REGISTERED OFFICE: Busby Road
Carmunnock
Glasgow
G76 9EL





REGISTERED NUMBER: SC070183 (Scotland)





AUDITORS: Gilmour Hamilton
Statutory Auditor
37 Portland Road
KILMARNOCK
Ayrshire
KA1 2DJ

STEWART LANDSCAPES (CONTRACTS) LIMITED (REGISTERED NUMBER: SC070183)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023

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

REVIEW OF BUSINESS
Turnover rose from £14,259,948 to £15,494,686 in the year and operating profit decreased from £931,211 to £547,945.

The Directors are satisfied with the level of turnover and profitability despite this being a difficult and somewhat challenging period for our mainly housebuilding client base.

Global shortages of certain materials and equipment have caused significant price increases; however, these have been managed and negotiated between our customers and suppliers.

We continue to invest in safety, management systems and plant to ensure we are well placed to deal with present and future contracts.

The Directors are focused on maintaining strong relationships with key customers and suppliers and have long established controls and procedures in place which are closely monitored and continue to serve us well.

The company has secured significant long term contracts which, given the current global uncertainty, will ensure continued, managed growth. We will continue to monitor and manage market conditions to ensure any changes are proactively dealt with.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties affecting the business include the following:
The general economic environment - particularly the housing market
Continuing to remain competitive
Retaining existing customers and acquiring new ones
Maintaining a skilled and efficient workforce which works safely
Financial risks

The company operates in a competitive marketplace, influenced by the general economic environment, including the level of interest rates which impact the housing market. The company works closely with a number of key customers and aims to provide an excellent standard of customer service. The management team work hard to minimise contract risk and to control contract costs and profitability.

The company works with its suppliers to build long term relationships and secure the best possible prices and reliable supplies for key products.

We aim to provide a safe and enjoyable working environment for our employees and offer training and other opportunities for them to progress within the company.

The company's activities expose it to a number of financial risks, primarily credit risk.

The company monitors its customers for creditworthiness. Trade debtors and contract balances are monitored closely on an ongoing basis and provision is made for any doubtful debts where necessary.

Cash flow is closely monitored, and the company's bank deposits are held by banks with high credit ratings assigned by international credit rating agencies.

ON BEHALF OF THE BOARD:





A D Mackenzie - Director


19 March 2024

STEWART LANDSCAPES (CONTRACTS) LIMITED (REGISTERED NUMBER: SC070183)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JULY 2023

The directors present their report with the financial statements of the company for the year ended 31 July 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of a groundwork and civil engineering contractor.

DIVIDENDS
An interim dividend of 97.2p per share was paid on 31 July 2023. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 July 2023 will be £ 97,200 .

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

A D Mackenzie
D J M Laird
K Turley

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

STEWART LANDSCAPES (CONTRACTS) LIMITED (REGISTERED NUMBER: SC070183)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JULY 2023


AUDITORS
The auditors, Gilmour Hamilton, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



A D Mackenzie - Director


19 March 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
STEWART LANDSCAPES (CONTRACTS) LIMITED

Opinion
We have audited the financial statements of Stewart Landscapes (Contracts) Limited (the 'company') for the year ended 31 July 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, 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 31 July 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 matter
The corresponding figures are unaudited

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
STEWART LANDSCAPES (CONTRACTS) 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
STEWART LANDSCAPES (CONTRACTS) LIMITED


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. A summary of the procedures we designed and executed to detect irregularities, including fraud is set out below:

- performing analytical procedures to identify unusual or unexpected relationships that may indicate
risks of material misstatement due to fraud and tested accordingly;

- reviewing correspondence with regulatory bodies, such as HMRC, and reviewing documentation
for indications of non-compliance with laws and regulations;

- determining whether the accounting policies, treatments and presentation adopted in the financial
statements is in accordance with 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);

- identifying whether there are instances of potential bias in areas with significant degrees of
judgement such as useful lives of assets subject to depreciation or amortisation;

- in addressing the risk of fraud through management override of controls, testing the appropriateness
of journal entries and other adjustments; assessing whether the judgements made in making
accounting estimates are indicative of a potential bias; and evaluating the business rationale of any
significant transactions that are unusual or outside the normal course of business;

- in addressing the risk of fraud in revenue recognition obtaining an understanding of the controls
in place and where possible testing the operating effectiveness of those controls. Substantive tests
were executed to supplement testing of controls;

- vouching balances and reconciling items in management's key control account reconciliations to
supporting documentation as at 31 July 2023; and

- carrying out detailed testing, on a sample basis, of material transactions, financial statement
categories and balances to appropriate documentary evidence to verify the completeness,
occurrence and accuracy of the reported financial statements.

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

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
STEWART LANDSCAPES (CONTRACTS) 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.




Neil McConnell BAcc CA (Senior Statutory Auditor)
for and on behalf of Gilmour Hamilton
Statutory Auditor
37 Portland Road
KILMARNOCK
Ayrshire
KA1 2DJ

19 March 2024

STEWART LANDSCAPES (CONTRACTS) LIMITED (REGISTERED NUMBER: SC070183)

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JULY 2023

2023 2022
(Unaudited)
Notes £    £    £    £   

TURNOVER 3 15,494,686 14,259,948

Changes in stocks of finished goods and
work in progress

109,105

62,532
15,603,791 14,322,480

Other operating income 159,754 3,345
15,763,545 14,325,825

Raw materials and consumables 5,997,515 5,447,172
Other external expenses 4,153,768 3,776,565
10,151,283 9,223,737
5,612,262 5,102,088

Staff costs 4 4,546,677 3,779,120
Depreciation 180,339 142,316
Other operating expenses 337,301 249,441
5,064,317 4,170,877
OPERATING PROFIT 5 547,945 931,211

Interest receivable and similar income 23,172 703
571,117 931,914

Interest payable and similar expenses 6 10,861 316
PROFIT BEFORE TAXATION 560,256 931,598

Tax on profit 7 140,305 150,569
PROFIT FOR THE FINANCIAL YEAR 419,951 781,029

Retained earnings at beginning of year 1,491,253 710,224

Dividends 8 (97,200 ) -

RETAINED EARNINGS AT END OF
YEAR

1,814,004

1,491,253

STEWART LANDSCAPES (CONTRACTS) LIMITED (REGISTERED NUMBER: SC070183)

BALANCE SHEET
31 JULY 2023

2023 2022
(Unaudited)
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 676,403 540,409

CURRENT ASSETS
Stocks 10 236,619 127,514
Debtors 11 2,807,469 2,911,200
Cash at bank 1,310,354 1,038,252
4,354,442 4,076,966
CREDITORS
Amounts falling due within one year 12 2,705,827 2,918,344
NET CURRENT ASSETS 1,648,615 1,158,622
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,325,018

1,699,031

CREDITORS
Amounts falling due after more than one
year

13

(253,232

)

(15,592

)

PROVISIONS FOR LIABILITIES 17 (157,782 ) (92,186 )
NET ASSETS 1,914,004 1,591,253

CAPITAL AND RESERVES
Called up share capital 18 100,000 100,000
Retained earnings 19 1,814,004 1,491,253
SHAREHOLDERS' FUNDS 1,914,004 1,591,253

The financial statements were approved by the Board of Directors and authorised for issue on 19 March 2024 and were signed on its behalf by:





K Turley - Director


STEWART LANDSCAPES (CONTRACTS) LIMITED (REGISTERED NUMBER: SC070183)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JULY 2023

2023 2022
(Unaudited)
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 441,968 1,262,297
Interest element of hire purchase
payments paid

(10,861

)

(316

)
Tax paid (83,234 ) (20,406 )
Net cash from operating activities 347,873 1,241,575

Cash flows from investing activities
Purchase of tangible fixed assets (379,733 ) (594,123 )
Sale of tangible fixed assets 63,400 42,196
Interest received 23,172 703
Net cash from investing activities (293,161 ) (551,224 )

Cash flows from financing activities
New hire purchase agreement 384,750 24,143
Capital repayments in year (70,160 ) (2,516 )
Equity dividends paid (97,200 ) -
Net cash from financing activities 217,390 21,627

Increase in cash and cash equivalents 272,102 711,978
Cash and cash equivalents at
beginning of year

2

1,038,252

326,274

Cash and cash equivalents at end of
year

2

1,310,354

1,038,252

STEWART LANDSCAPES (CONTRACTS) LIMITED (REGISTERED NUMBER: SC070183)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JULY 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
(Unaudited)
£    £   
Profit before taxation 560,256 931,598
Depreciation charges 236,541 172,254
Profit on disposal of fixed assets (56,202 ) (29,938 )
Finance costs 10,861 316
Finance income (23,172 ) (703 )
728,284 1,073,527
Increase in stocks (109,105 ) (62,532 )
Decrease/(increase) in trade and other debtors 103,730 (1,330,993 )
(Decrease)/increase in trade and other creditors (280,941 ) 1,582,295
Cash generated from operations 441,968 1,262,297

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 31 July 2023
31.7.23 1.8.22
£    £   
Cash and cash equivalents 1,310,354 1,038,252
Year ended 31 July 2022
31.7.22 1.8.21
(Unaudited)
£    £   
Cash and cash equivalents 1,038,252 326,274


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.8.22 Cash flow At 31.7.23
£    £    £   
Net cash
Cash at bank 1,038,252 272,102 1,310,354
1,038,252 272,102 1,310,354
Debt
Finance leases (21,627 ) (314,590 ) (336,217 )
(21,627 ) (314,590 ) (336,217 )
Total 1,016,625 (42,488 ) 974,137

STEWART LANDSCAPES (CONTRACTS) LIMITED (REGISTERED NUMBER: SC070183)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

1. STATUTORY INFORMATION

Stewart Landscapes (Contracts) Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The financial statements are presented in pounds sterling which is the functional currency of the company, rounded to the nearest pound.

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.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned companies within the group.

Critical accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported as assets, liabilities, revenues and expenses for the year. The key sources of estimation uncertainty are as follows:

Depreciation and amortisation of tangible and intangible fixed assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The expected lives of assets and their residual values are assessed regularly and may vary depending on a number of factors including asset life cycles, maintenance programmes etc.

Contract accounting
When determining the amount to include as amounts recoverable on contracts and thereby the amount of profit to recognise on individual contracts, factors such as the stage of completion and forecasted outturn of the contract are taken into account.

Impairment of debtors and contract balances
Trade debtors and contract balances are reviewed for evidence of impairment. Factors considered are ageing, past recovery, customer creditworthiness and the stage and expected outcome of any recovery proceedings.

Turnover
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Groundworks, Hard/Soft Landscaping Contracts and Civil Engineering Works:

When the outcome of a contract can be estimated reliably, contract costs and turnover are recognised by reference to stage of completion at the balance sheet date. Stage of completion is measured by reference to current and projected contract costs and expected sales value, while taking into consideration cash certified at the reporting date.

Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable.

When it is probable that contract costs will exceed the total contract turnover, the expected loss was recognised as an expense immediately with a corresponding provision.

STEWART LANDSCAPES (CONTRACTS) LIMITED (REGISTERED NUMBER: SC070183)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
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.
Plant and machinery - 20% on cost
Fixtures and fittings - 20% on cost
Motor vehicles - 20% on cost
Computer equipment - 33% on cost

Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Taxation
Taxation for the year comprises current and deferred tax.

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

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 or the lease term, whichever is 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.

STEWART LANDSCAPES (CONTRACTS) LIMITED (REGISTERED NUMBER: SC070183)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The company makes payments to defined contribution pension schemes on behalf of employees. The assets of the schemes are held separately from those of the company in independently administered funds. Contributions payable for the year are charged in the statement of income and retained earnings.

Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Employee benefits
Where employees have rendered service to the company, short term benefits (including holiday pay) to which the employees are entitled are recognised at the amount expected to be paid in exchange for that service.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023 2022
(Unaudited)
£    £   
Groundwork & civil engineering 15,494,686 14,259,948
15,494,686 14,259,948

An analysis of turnover by geographical market is given below:

2023 2022
(Unaudited)
£    £   
United Kingdom 15,494,686 14,259,948
15,494,686 14,259,948

4. EMPLOYEES AND DIRECTORS
2023 2022
(Unaudited)
£    £   
Wages and salaries 4,044,862 3,372,033
Social security costs 429,781 351,698
Other pension costs 72,034 55,389
4,546,677 3,779,120

STEWART LANDSCAPES (CONTRACTS) LIMITED (REGISTERED NUMBER: SC070183)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2023 2022
(Unaudited)

Production 95 82
Administration 15 11
110 93

2023 2022
(Unaudited)
£    £   
Directors' remuneration 241,255 221,054
Directors' pension contributions to money purchase schemes 2,642 2,642

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

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
2023 2022
(Unaudited)
£    £   
Emoluments etc 124,406 118,104
Pension contributions to money purchase schemes 1,321 1,321

5. OPERATING PROFIT

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

2023 2022
(Unaudited)
£    £   
Depreciation - owned assets 138,723 158,785
Depreciation - assets on hire purchase contracts 97,818 13,468
Profit on disposal of fixed assets (56,202 ) (29,938 )
Auditors' remuneration 16,000 -
Government and other grant income (159,754 ) (3,345 )
Cost of stock recognised as an expense 5,888,410 5,384,640
Operating Leases 62,707 32,553

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
(Unaudited)
£    £   
Hire purchase 10,861 316

STEWART LANDSCAPES (CONTRACTS) LIMITED (REGISTERED NUMBER: SC070183)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
(Unaudited)
£    £   
Current tax:
UK corporation tax 74,709 83,234

Deferred tax 65,596 67,335
Tax on profit 140,305 150,569

UK corporation tax has been charged at 21% (2022 - 19%).

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:

2023 2022
(Unaudited)
£    £   
Profit before tax 560,256 931,598
Profit multiplied by the standard rate of corporation tax in the UK of
21% (2022 - 19%)

117,654

177,004

Effects of:
Expenses not deductible for tax purposes 2,756 3,592
Super deduction (15,074 ) (30,027 )
Change in tax rates 34,969 -
Total tax charge 140,305 150,569

Rate of UK corporation tax
The main UK Corporation tax rate changed from 19% to 25% on 1 April 2023. That results in an average tax rate for the company's financial year of 21%

Factors that may affect future tax charges
The increase in the UK Corporation tax will impact the company's future tax charge accordingly. The value of the deferred tax liability at the balance sheet date has been calculated using the applicable rate when the liability is expected to be realised.

8. DIVIDENDS
2023 2022
(Unaudited)
£    £   
Ordinary shares of 1 each
Interim 97,200 -

STEWART LANDSCAPES (CONTRACTS) LIMITED (REGISTERED NUMBER: SC070183)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

9. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 August 2022 586,365 43,845 340,143 25,565 995,918
Additions 190,340 - 185,546 3,847 379,733
Disposals (72,250 ) - (63,098 ) - (135,348 )
At 31 July 2023 704,455 43,845 462,591 29,412 1,240,303
DEPRECIATION
At 1 August 2022 230,665 40,095 163,226 21,523 455,509
Charge for year 140,718 937 90,888 3,998 236,541
Eliminated on disposal (72,250 ) - (55,900 ) - (128,150 )
At 31 July 2023 299,133 41,032 198,214 25,521 563,900
NET BOOK VALUE
At 31 July 2023 405,322 2,813 264,377 3,891 676,403
At 31 July 2022 355,700 3,750 176,917 4,042 540,409

The columns for plant and machinery and motor vehicles above include assets with a net book value of £293,453 (2022: £53,871) which are held under hire purchase agreements.

10. STOCKS
2023 2022
(Unaudited)
£    £   
Work-in-progress 236,619 127,514

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
(Unaudited)
£    £   
Trade debtors 215,241 430,874
Amounts recoverable on contracts 2,432,470 2,263,267
Other debtors and prepayments 35,248 23,328
Value added tax 124,510 193,731
2,807,469 2,911,200

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
(Unaudited)
£    £   
Hire purchase contracts (see note 14) 82,985 6,035
Trade creditors 2,048,544 2,498,210
Amounts owed to group undertakings 97,200 -
Tax 74,709 83,234
Social security and other taxes 135,571 121,437
Accruals and deferred income 266,818 209,428
2,705,827 2,918,344

STEWART LANDSCAPES (CONTRACTS) LIMITED (REGISTERED NUMBER: SC070183)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued

Included in Creditors: amounts falling due within one year is £22,121 (2022: £14,382) in respect of pension payments.

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
(Unaudited)
£    £   
Hire purchase contracts (see note 14) 253,232 15,592

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
(Unaudited
£    £   
Gross obligations repayable:
Within one year 95,627 6,793
Between one and five years 292,064 17,549
387,691 24,342

Finance charges repayable:
Within one year 12,642 758
Between one and five years 38,832 1,957
51,474 2,715

Net obligations repayable:
Within one year 82,985 6,035
Between one and five years 253,232 15,592
336,217 21,627

Non-cancellable operating leases
2023 2022
(Unaudited)
£    £   
Within one year 65,995 27,420
Between one and five years 79,771 45,390
145,766 72,810

STEWART LANDSCAPES (CONTRACTS) LIMITED (REGISTERED NUMBER: SC070183)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

15. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
(Unaudited)
£    £   
Hire Purchase Contracts 336,217 21,628

Hire purchase contracts are secured over the relevant assets.

16. FINANCIAL INSTRUMENTS

The carrying amount of the company's financial instruments are as follows:
2023 2022
£    £   
Financial assets
Debt instruments measured at amortised cost
Cash at bank and in hand 1,310,354 1,038,252
Trade and other debtors 2,807,469 2,911,200

Financial liabilities
Measured at amortised cost
Trade creditors 2,048,544 2,498,209
Accrued expenses 266,818 209,428
Hire purchase liabilities 336,217 21,627

17. PROVISIONS FOR LIABILITIES
2023 2022
(Unaudited)
£    £   
Deferred tax
Accelerated capital allowances 157,782 92,186

Deferred
tax
£   
Balance at 1 August 2022 92,186
Charge to Statement of Comprehensive Income during year 65,596
Balance at 31 July 2023 157,782

£50,537 of the deferred tax provision is expected to reverse in the period to 31 July 2024.

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100,000 Ordinary 1 100,000 100,000

STEWART LANDSCAPES (CONTRACTS) LIMITED (REGISTERED NUMBER: SC070183)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

19. RESERVES
Retained
earnings
£   

At 1 August 2022 1,491,253
Profit for the year 419,951
Dividends (97,200 )
At 31 July 2023 1,814,004

Retained earnings
Represents cumulative profits and losses net of dividends and other adjustments.

20. CAPITAL COMMITMENTS
2023 2022
(Unaudited)
£    £   
Contracted but not provided for in the
financial statements 55,900 -

21. RELATED PARTY DISCLOSURES

During the year a management charge of £35,393 (2022: £28,800) was paid to a company controlled by one of the group's directors.

22. ULTIMATE CONTROLLING PARTY

The company's immediate and ultimate parent is SLCH Limited, registered in the United Kingdom.