Company registration number 01026946 (England and Wales)
FIRST SCOTTISH SEARCHING SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
FIRST SCOTTISH SEARCHING SERVICES LIMITED
COMPANY INFORMATION
Directors
Mr I J Fraser
Mr P Barry
Mr R Rostas
(Appointed 20 November 2023)
Company number
01026946
Registered office
Phenna Group
The Poynt
45 Wollaton Street
Nottingham
NG1 5FW
Auditor
Thomson Cooper
3 Castle Court
Carnegie Campus
Dunfermline
Fife
KY11 8PB
Business address
St David's House
Dalgety Bay
Fife
KY11 9NB
Bankers
Bank of Scotland
1 Rennie's Isle
Leith
Edinburgh
EH6 6QT
Barclays Bank
Market Place
Leicester
Leicestershire
LE87 2BB
FIRST SCOTTISH SEARCHING SERVICES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 21
FIRST SCOTTISH SEARCHING SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present their strategic report and financial statements for the year ended 31 December 2023.

Fair review of the business

The Scottish Property Market in 2023 was slower than 2022 with residential house sales down 9.45% on 2022. The market in 2023 apart from the years affected by Covid saw the lowest level of transactions since 2013. Whilst FSSS’s sales fell by 7.6% against a market fall of 9.45% this was a good result and reflects the company’s continued success in winning new business and introducing new products for the legal profession. The company continued to be the leading provider of legal searches, property enquiry certificates and plans related work in Scotland.

The company’s profit before tax was £2.4m. During the year the company continued to invest in product development and build the technical expertise necessary to allow it to help its customers meet the changing requirements of the conveyancing process.

The key areas of strategic development are product range extension, sales and marketing. The company ensures it has the technical expertise to develop services to meet the needs of its customer base and to respond to changes in legislation or reporting requirements as they arise. The company closely monitors and develops relationships with its customers.

The Directors are confident that the company can continue to grow both turnover and profitability for the foreseeable future.

Principal risks and uncertainties

The principal risks facing the company include:

 

Market performance - the company’s sales are dependent on the strength of the Scottish property market. The company monitors trends in the market closely and resource plans to meet anticipated changes.

 

Competitive risk - the company operates in a competitive market where there are few barriers to entry. It maintains a dialogue with its customers and continually reviews its products and services to ensure that they remain competitive.

Major disruption / Disaster - the company regularly reviews its business continuity plans to minimise the impact of major disruption or disasters.

 

Liquidity Risk - the company maintains a mixture of development and working capital finance facilities which ensures it has sufficient funds for its operations.

 

 

 

Key performance indicators

The key performance indicators for the company are:

 

2023             2022

Turnover             £10,160,590             £10,996,015

 

Profit before taxation          £2,426,151             £3,106,227

 

On behalf of the board

Mr I J Fraser
Director
2 April 2024
FIRST SCOTTISH SEARCHING SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present their report and financial statements for the year ended 31 December 2023.

Principal activities
The principal activity of the company continued to be that of the searching of public records and company formations.
Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr I J Fraser
Mr P Barry
Mr D Harrison
(Resigned 20 November 2023)
Mr R Rostas
(Appointed 20 November 2023)
Results and dividends

The results for the year are set out on page 7.

Auditor
The auditor, Thomson Cooper, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
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 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;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- 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 of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

FIRST SCOTTISH SEARCHING SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
Mr I J Fraser
Director
2 April 2024
FIRST SCOTTISH SEARCHING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FIRST SCOTTISH SEARCHING SERVICES LIMITED
- 4 -
Opinion

We have audited the financial statements of First Scottish Searching Services Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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 report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

FIRST SCOTTISH SEARCHING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FIRST SCOTTISH SEARCHING SERVICES LIMITED
- 5 -
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 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

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.

Extent to which the audit was capable of detecting irregularities, including fraud

We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: existence and timing of recognition of income, posting of unusual journals along with complex transactions and manipulating the Company’s key performance indicators to meet targets. We discussed these risks with management, designed audit procedures to test the timing and existence of revenue, tested a sample of journals to confirm they were appropriate and reviewed areas of judgement for indicators of management bias to address these risks.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by the auditing standards).

We reviewed the laws and regulations in areas that directly affect the financial statements including financial and taxation legislation and considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

With the exception of any known or possible non-compliance with relevant and significant laws and regulations, and as required by the auditing standards, our work in respect of these was limited to enquiry of the officers and management of the company.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

FIRST SCOTTISH SEARCHING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FIRST SCOTTISH SEARCHING SERVICES LIMITED
- 6 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 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.

Andrew Croxford (Senior Statutory Auditor)
For and on behalf of Thomson Cooper, Statutory Auditors
Dunfermline
2 April 2024
FIRST SCOTTISH SEARCHING SERVICES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
10,160,590
10,996,015
Cost of sales
(3,814,532)
(4,034,405)
Gross profit
6,346,058
6,961,610
Administrative expenses
(3,919,907)
(3,855,383)
Profit before taxation
2,426,151
3,106,227
Tax on profit
7
(53,555)
(347,821)
Profit for the financial year
2,372,596
2,758,406

The profit and loss account has been prepared on the basis that all operations are continuing operations.

FIRST SCOTTISH SEARCHING SERVICES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
209,757
53,270
Investments
10
2
2
209,759
53,272
Current assets
Debtors
12
4,545,511
4,181,844
Cash at bank and in hand
700,783
1,139,814
5,246,294
5,321,658
Creditors: amounts falling due within one year
13
(1,051,502)
(1,100,730)
Net current assets
4,194,792
4,220,928
Total assets less current liabilities
4,404,551
4,274,200
Provisions for liabilities
14
(7,755)
-
0
Net assets
4,396,796
4,274,200
Capital and reserves
Called up share capital
16
101,000
101,000
Profit and loss reserves
4,295,796
4,173,200
Total equity
4,396,796
4,274,200
The financial statements were approved by the board of directors and authorised for issue on 2 April 2024 and are signed on its behalf by:
Mr I J Fraser
Director
Company Registration No. 01026946
FIRST SCOTTISH SEARCHING SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
101,000
4,364,794
4,465,794
Year ended 31 December 2022:
Profit and total comprehensive income
-
2,758,406
2,758,406
Dividends
8
-
(2,950,000)
(2,950,000)
Balance at 31 December 2022
101,000
4,173,200
4,274,200
Year ended 31 December 2023:
Profit and total comprehensive income
-
2,372,596
2,372,596
Dividends
8
-
(2,250,000)
(2,250,000)
Balance at 31 December 2023
101,000
4,295,796
4,396,796
FIRST SCOTTISH SEARCHING SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
2,337,252
3,326,678
Income taxes paid
(282,394)
(367,667)
Net cash inflow from operating activities
2,054,858
2,959,011
Investing activities
Purchase of tangible fixed assets
(243,889)
(26,917)
Net cash used in investing activities
(243,889)
(26,917)
Financing activities
Dividends paid
(2,250,000)
(2,950,000)
Net cash used in financing activities
(2,250,000)
(2,950,000)
Net decrease in cash and cash equivalents
(439,031)
(17,906)
Cash and cash equivalents at beginning of year
1,139,814
1,157,720
Cash and cash equivalents at end of year
700,783
1,139,814
FIRST SCOTTISH SEARCHING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

First Scottish Searching Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Phenna Group, The Poynt, 45 Wollaton Street, Nottingham, NG1 5FW.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, based on the current financial position of the company, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company has adequate reserves and the support of the group, which they consider to be more than adequate. Accordingly the directors continue to adopt the going concern basis of accounting in preparing the financial statements. The directors have considered a period of 12 months from the date of approval of the financial statements.

1.3
Turnover
Turnover represents amounts receivable for property related searches supplied to customers during the year and excludes VAT.

Turnover is recognised when the company has earned the right to the consideration, where the significant risk and rewards of the provision of the service has passed to the customer who has accepted the sales price and the receipt of payment can be assured.
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that assets as follows:
Leasehold improvements
Over the term of the lease
Computer Equipment
33% - 50% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

FIRST SCOTTISH SEARCHING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
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 instruments.

 

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

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a 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 debtors and cash and bank balances, 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. Financial assets classified as receivable within one year are not amortised.

FIRST SCOTTISH SEARCHING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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

Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

FIRST SCOTTISH SEARCHING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities

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 hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

FIRST SCOTTISH SEARCHING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Group accounts

The financial statements present information about the company as an individual undertaking and not about its group. The company and its subsidiary undertaking comprise a small-sized group. The company has taken advantage of the small companies regime to not prepare group accounts.

2
Judgements 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. Following a review, the directors considered there were no material estimates or underlying assumptions used in the preparation of these accounts.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Searching Services
10,160,590
10,996,015
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
10,160,590
10,996,015
FIRST SCOTTISH SEARCHING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
18,315
16,500
Depreciation of owned tangible fixed assets
87,402
83,676
Operating lease charges
216,159
216,771
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Administration
88
85

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,547,907
2,469,000
Social security costs
246,150
248,012
Pension costs
415,579
405,420
3,209,636
3,122,432
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
143,202
150,714
Company pension contributions to defined contribution schemes
31,014
30,111
174,216
180,825
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
517,695
556,002
Adjustments in respect of prior periods - group relief
(473,260)
(198,262)
Total current tax
44,435
357,740
FIRST SCOTTISH SEARCHING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Taxation
(Continued)
- 17 -
Deferred tax
Origination and reversal of timing differences
9,120
(12,635)
Changes in tax rates
-
0
2,716
Total deferred tax
9,120
(9,919)
Total tax charge
53,555
347,821

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
2,426,151
3,106,227
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
570,631
590,183
Tax effect of expenses that are not deductible in determining taxable profit
15,674
6,592
Group relief
(59,570)
(50,420)
Depreciation on assets not qualifying for tax allowances
959
726
Under/(over) provided in the year
(473,260)
(198,262)
Enhanced capital allowances
(879)
(998)
Tax expense for the year
53,555
347,821
8
Dividends
2023
2022
£
£
Interim paid
2,250,000
2,950,000
FIRST SCOTTISH SEARCHING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
9
Tangible fixed assets
Leasehold improvements
Computer Equipment
Total
£
£
£
Cost
At 1 January 2023
288,531
288,633
577,164
Additions
-
0
243,889
243,889
At 31 December 2023
288,531
532,522
821,053
Depreciation and impairment
At 1 January 2023
249,115
274,779
523,894
Depreciation charged in the year
18,808
68,594
87,402
At 31 December 2023
267,923
343,373
611,296
Carrying amount
At 31 December 2023
20,608
189,149
209,757
At 31 December 2022
39,416
13,854
53,270
10
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
11
2
2
11
Subsidiaries

These financial statements are separate company financial statements for First Scottish Searching Services Limited.

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
First Scottish Formation Services Limited
England & Wales
Ordinary Shares
100.00
0
FIRST SCOTTISH SEARCHING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,023,750
1,024,167
Corporation tax recoverable
565,271
327,312
Amounts owed by group undertakings
2,914,490
2,751,584
Other debtors
42,000
77,416
4,545,511
4,180,479
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 14)
-
0
1,365
Total debtors
4,545,511
4,181,844
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
246,548
270,162
Taxation and social security
253,119
217,587
Accruals and deferred income
551,835
612,981
1,051,502
1,100,730
14
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Accelerated capital allowances
7,755
-
-
1,365
2023
Movements in the year:
£
Liability/(Asset) at 1 January 2023
(1,365)
Charge to profit or loss
9,120
Liability at 31 December 2023
7,755
FIRST SCOTTISH SEARCHING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Deferred taxation
(Continued)
- 20 -

The deferred tax liability set out above is expected to reverse within 3 years and relates to accelerated capital allowances that are expected to mature within the same period.

15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
415,579
405,420

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

16
Share capital
2023
2022
Ordinary share capital
£
£
Issued and fully paid
75,750 'A' Ordinary Shares of £1 each
75,750
75,750
25,250 'B' Ordinary Shares of £1 each
25,250
25,250
101,000
101,000
17
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for the property from which it trades.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
183,015
183,015
Between two and five years
732,060
732,060
In over five years
259,271
442,286
1,174,346
1,357,361
18
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
459,475
448,162
Other information
FIRST SCOTTISH SEARCHING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Related party transactions
(Continued)
- 21 -

The company is claiming exemption from disclosing transactions with other group companies under paragraph 33 of FRS 102.

19
Ultimate parent company and control

During the period ended 20 December 2022, the ultimate parent company was Puma Topco Limited, a company registered in England. Harold Hansen was the ultimate controlling party during this period, by virtue of his shareholding in Puma Topco Limited. On 21 December 2022 the ultimate parent company became TIC Holdco Limited, a company registered in England. The ultimate controlling party became Peter Dubens, on 21 December 2022, by virtue of his shareholding in TIC Holdco Limited.

20
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
2,372,596
2,758,406
Adjustments for:
Taxation charged
53,555
347,821
Depreciation and impairment of tangible fixed assets
87,402
83,676
Movements in working capital:
(Increase)/decrease in debtors
(127,073)
390,475
Decrease in creditors
(49,228)
(253,700)
Cash generated from operations
2,337,252
3,326,678
21
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,139,814
(439,031)
700,783
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