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REGISTERED NUMBER: SC067751 (Scotland)












Unaudited Financial Statements

for the Year Ended 31 October 2023

for

Hugh Simpson (Contractors) Limited

Hugh Simpson (Contractors) Limited (Registered number: SC067751)

Contents of the Financial Statements
for the Year Ended 31 October 2023










Page

Company Information 1

Abridged Balance Sheet 2

Notes to the Financial Statements 4


Hugh Simpson (Contractors) Limited

Company Information
for the Year Ended 31 October 2023







DIRECTORS: H Simpson
H A Simpson
D J Simpson



SECRETARY: Mrs E C Simpson



REGISTERED OFFICE: South Quay
The Harbour
Wick
Caithness
KW1 5HA



REGISTERED NUMBER: SC067751 (Scotland)



ACCOUNTANTS: Victor T Fraser & Co Limited
Chartered Accountants
3-4 Market Place
Wick
Caithness
KW1 4LP



BANKERS: Virgin Money
15 Academy Street
Inverness
IV1 1JN



SOLICITORS: MacRoberts LLP
Capella
60 York Street
Glasgow
G2 8JX

Hugh Simpson (Contractors) Limited (Registered number: SC067751)

Abridged Balance Sheet
31 October 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 - -
Tangible assets 5 9,295,555 8,512,851
9,295,555 8,512,851

CURRENT ASSETS
Stocks 135,722 103,061
Debtors 6 2,257,727 3,547,810
Cash at bank and in hand 1,316,271 2,091,723
3,709,720 5,742,594
CREDITORS
Amounts falling due within one year 854,302 1,994,332
NET CURRENT ASSETS 2,855,418 3,748,262
TOTAL ASSETS LESS CURRENT
LIABILITIES

12,150,973

12,261,113

CREDITORS
Amounts falling due after more than one year (161,130 ) (636,395 )

PROVISIONS FOR LIABILITIES (1,436,191 ) (1,341,376 )

ACCRUALS AND DEFERRED INCOME 8 (60,104 ) (75,129 )
NET ASSETS 10,493,548 10,208,213

CAPITAL AND RESERVES
Called up share capital 82,107 82,107
Capital redemption reserve (472,391 ) (472,391 )
Retained earnings 10,883,832 10,598,497
SHAREHOLDERS' FUNDS 10,493,548 10,208,213

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

Hugh Simpson (Contractors) Limited (Registered number: SC067751)

Abridged Balance Sheet - continued
31 October 2023


The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

All the members have consented to the preparation of an abridged Balance Sheet for the year ended 31 October 2023 in accordance with Section 444(2A) of the Companies Act 2006.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 25 July 2024 and were signed on its behalf by:





H Simpson - Director


Hugh Simpson (Contractors) Limited (Registered number: SC067751)

Notes to the Financial Statements
for the Year Ended 31 October 2023


1. STATUTORY INFORMATION

Hugh Simpson (Contractors) 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.

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover represents the value of the sale of goods and services to external customers net of value added tax, rebates and discounts.
Turnover is recognised when significant risks and rewards of ownership of the goods are transferred to the buyer, which generally arises on delivery or in accordance with specific terms and conditions agreed with customers.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2005 was fully written off in the year of acquisition.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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.
Freehold property - 2% on cost
Long leasehold - at varying rates on cost
Plant and machinery - 10% on reducing balance
Fixtures and fittings - 10% on reducing balance
Motor vehicles - 20% on reducing balance

Freehold property is stated at cost less accumulated depreciation and any recognised provision for impairment. Costs include original purchase price of the asset and the costs incurred attributable to bringing the asset to its working condition for intended use.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.


Hugh Simpson (Contractors) Limited (Registered number: SC067751)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2023


2. ACCOUNTING POLICIES - continued
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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least the next 12 months from signing. The company has a strong net assets position and a good pipeline of work.

Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements. The financial statements do not include any adjustments that would result in the going concern basis of preparation not being appropriate.

Hugh Simpson (Contractors) Limited (Registered number: SC067751)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2023


2. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial statements.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the next amounts presented in the financial statements, when there is legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include trade and other debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in profit or loss.

Derecognition of financial assets and liabilities
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity. Financial liabilities are derecognised when, and only when, the company's obligations are discharged, cancelled, or they expire.

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.Basic financial liabilities, including trade and other creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financial transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as 'creditors: amounts falling due within one year' if payment is due within one year or less. If not, they are presented as 'creditors: amounts falling due after more than one year'. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities
Other financial liabilities, including debt instruments that do not meet the definition of a basic financial instrument, are measured at fair value through profit or loss.

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

Hugh Simpson (Contractors) Limited (Registered number: SC067751)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2023


3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 27 (2022 - 31 ) .

4. INTANGIBLE FIXED ASSETS
Totals
£   
COST
At 1 November 2022
and 31 October 2023 21,500
AMORTISATION
At 1 November 2022
and 31 October 2023 21,500
NET BOOK VALUE

At 31 October 2023 -
At 31 October 2022 -

5. TANGIBLE FIXED ASSETS
Totals
£   
COST
At 1 November 2022 12,569,387
Additions 1,951,743
Disposals (760,922 )
At 31 October 2023 13,760,208
DEPRECIATION
At 1 November 2022 4,056,536
Charge for year 949,348
Eliminated on disposal (541,231 )
At 31 October 2023 4,464,653
NET BOOK VALUE
At 31 October 2023 9,295,555
At 31 October 2022 8,512,851

Hugh Simpson (Contractors) Limited (Registered number: SC067751)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2023


5. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Totals
£   
COST
At 1 November 2022
and 31 October 2023 3,344,735
DEPRECIATION
At 1 November 2022 222,982
Charge for year 312,176
At 31 October 2023 535,158
NET BOOK VALUE
At 31 October 2023 2,809,577
At 31 October 2022 3,121,753

6. DEBTORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Other debtors 15,399 17,301

7. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans - 1,000,000
Hire purchase contracts 636,395 1,099,472
636,395 2,099,472

8. ACCRUALS AND DEFERRED INCOME

2023 2022
£ £
Balance at 1 November 2022 75,129 90,155

Amount received in year nil nil

Amount released to profit and loss account -15,026 -15,026
Balance at 31 October 2023 60,103 75,129

Hugh Simpson (Contractors) Limited (Registered number: SC067751)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2023


9. RELATED PARTY DISCLOSURES

Simpson Oils Limited
A company in which H Simpson is majority shareholder.

The company provides management and other services to Simpson Oils Limited at normal commercial rates and on normal commercial terms.

The total value of services supplied by the company to Simpson Oils Limited during the year was £711,424 (2022 - £762,887).

The company purchases fuel and other products from Simpson Oils Limited at normal commercial rates and on normal commercial terms.

The total value of supplies to the company by Simpson Oils Limited during the year was £429,451 (2022 - £594,949).

2023 2022
£ £
Amount due from/(to) related party at the balance sheet date 114,387 62,445

Oil and Storage Services Limited
A company in which Hugh Simpsons two sons are shareholders/directors

The company provides goods and services to Oil and Storage Services Limited at normal commercial rates and on normal commercial terms.

The total value of goods and services supplied to the company by Oil and Storage Services Limited during the year was £nil (2022 - £nil).

The company purchase services from Oil and Storage Services Limited at normal commercial rates and on normal commercial terms.

The total value of services supplied to the company by Oil and Storage Services Limited during the year was £nil (2022 - £nil).

2023 2022
£ £
Amount due from/(to) related party at the balance sheet date nil nil


MPA Engineering Limited
A company owned by Oil and Storage Services Limited

The company provides goods and services to MPA Engineering Limited at normal commercial rates and on normal commercial terms.

The total value of goods and services supplied by the company to MPA Engineering Limited during the year was £583 (2022 - £94).

The company purchase services from MPA Engineering Limited at normal commercial rates and on normal commercial terms.

The total value of goods and services supplied to the company by MPA Engineering Limited during the year was £nil (2022 - £nil).

2023 2022
£ £
Amount due from/(to) related party at the balance sheet date -14,523 -14,442



Hugh Simpson (Contractors) Limited (Registered number: SC067751)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2023

H Simpson
Director and majority shareholder

The amounts outstanding at the end of the financial year in respect of loans from the director to the company were £6,662 (2022 - £6,662)

As at 31 October 2023, the company had outstanding loans due to members of the director's family totalling £19,789 (2022 - £19,789).

10. ULTIMATE CONTROLLING PARTY

The company is under the control of Mr H Simpson who owns 98.8% of the ordinary share capital.