Company registration number SC002626 (Scotland)
MALCOLM, OGILVIE & COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
MALCOLM, OGILVIE & COMPANY LIMITED
COMPANY INFORMATION
Directors
Mr HF Ogilvie
Mr NG Cunningham
Secretary
Mr NG Cunningham
Company number
SC002626
Registered office
8 Tom Johnston Road
West Pitkerro Industrial Estate
Dundee
Scotland
DD4 8XD
Auditor
MMG Archbold Limited
78-84 Bell Street
Dundee
DD1 1RQ
Solicitors
Thorntons WS
Whitehall House
33 Yeaman Shore
DUNDEE
DD1 4BJ
MALCOLM, OGILVIE & COMPANY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 37
MALCOLM, OGILVIE & COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

The directors present the strategic report of the company and the group for the year ended 31 October 2023.

Review of the business

The Groups principal activities during the year were the manufacturing of insulating glass units, glass processing, tempering, laminating and painting of glass, as well as the leasing of two commercial properties to third parties. Additionally within the year under review The Company commenced the processing of natural & synthetic stone slabs for supply to kitchen and other surfaces markets.

 

Group turnover saw a decrease of some 13.42% relative to the previous year, to £18.27 million, accounted for primarily by The Company having strategically consolidated its manufacturing during the period from occupying two factories to a single site in an endeavour to moderate the effects of continuingly pressured margins as well as significant energy increases faced in 2023.

 

Despite the post pandemic reversion to more routine trading it was deemed imperative to further reduce operating costs and so rationalise the business.

 

Despite The Companys quest for greater operational efficiency and continuing endeavour to promote sales in its product range within the construction industry sector The Board were determined to take whatever action was deemed necessary to stem reversed trading fortunes which has resulted in significant decisions being implemented in regard to numbers employed and plant utilisation. The associated costs were significant resulting in the operating loss posted within this Group Report which incorporates the costs of significant redundancies within the staff numbers necessary to address revised budgets.

 

The Directors none the less continue to remain confident in their future outlook for The Company and its prospects as having undertaken strategic consolidation of operations it may take some time to successfully attain new budgeted standards.

 

The loss was reached following close scrutiny of administrative expenses coupled to optimising of all margins, as well as by addressing managerial issues and contingencies. Rationalisation and reviews throughout the business on an ongoing basis see considerable adjustments made to our ongoing budgets, all of which have been increasingly necessary to keep the cost base in check against markedly inflationary spirals in respect of all our raw materials within the period.

 

The balance between Commercial market glazing and Domestic supply markets saw the customer base seeing altered proportions of involvement. Asset additions in both plant & machinery during the period under review were stalled and the effect of this is under continuing review.

 

The tenanted commercial properties continue to be perceived as well let.

The Company is in the process of tenanting its former Fowler Road facility which has seen investment in subdividing it into smaller units deemed more appropriate to the local letting market.

 

The development of our newest operating company involved in surface processing and accommodated within one of the newly prepared Fowler Road site units, was at an embryonic phase during the period and with concentrated ongoing and future sales effort the already well developed manufacturing niche is anticipated to contribute to The Group in time.

 

The Companys Accounts demonstrate activity within the glass processing related field, stone processing, and property letting which have combined to reflect a financial outcome which is considered disappointing under all the circumstances, given the trading opportunities faced during the period. The Directors remain confident none the less in their forward outlook and remain committed to growing and encouraging the staff and workforce through continuous development and focused training where appropriate.

Financial key performance indicators (KPIs)

The directors rely upon a number of financial KPIs and for the year under review, consider all of these to be in line with expectations.

MALCOLM, OGILVIE & COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
Non financial key performance indicators (KPIs)

The directors consider a number of non financial performance indicators on an ongoing basis, such as statistical information relating to staff turnover and absence, supplier and customer service levels and the monitoring of health and safety and security incident reports.

Financial and competitive risk assessment

Group retained profits finance on-going operating requirements and bank borrowings are only utilised to finance major capital expenditure.

 

The group operates within a highly competitive environment and acknowledges that whilst exercising due diligence and prudence as a matter of policy, it cannot always rely on the information used in assessing competitive risk to be wholly reliable.

Environmental risk assessment

The directors recognise the group's environmental responsibilities and the increasing legislation in this area. The group complies with relevant legislation and also strives to ensure that environmental best practices are adopted, particularly in fuel efficiency, pollution control and waste management. The group's operations address industry specific requirements, and the directors are satisfied that the group continues to improve its environmental contribution.

Uncertainties and prospects

The main uncertainties facing the group are the extent to which the national economic and political climate will affect product demand directly linked to the Companys area of expertise. Those particular uncertainties involve the building and construction industry opportunities in respect of which the directors take a continuing closely scrutinised view on an ongoing basis.

 

It is to be hoped that with the pandemic behind us advancement is not further impeded by any future such constraints although the energy impact which has since prevailed looks to be moderating in our current outlook.

 

The directors remain confident that future growth opportunities exist for its products and they will advance to focus on that sector of opportunity for the foreseeable future. They believe that the Group is well enough placed financially, and in terms of the strength of its management team, to maintain its underlying performance and build upon it. Rationalisation of all its operations remains paramount to the Companys ongoing prospects.

On behalf of the board

Mr NG Cunningham
Director
24 July 2024
MALCOLM, OGILVIE & COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -

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

Principal activities

The principal activity of the company and group continued to be that of the manufacturing of insulating glass units, glass processing, tempering, laminating and painting of glass, as well as the leasing of two commercial properties to third parties.

Results and dividends

The group loss for the year after taxation amounts to (£1,041,681). (2022 Profit – £99,515)

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

Mr HF Ogilvie
Mr NG Cunningham
Mr KG Small
(Resigned 8 April 2024)
Future developments

Capital expenditure projects previously referred to within the Financial Statements are asset improvements aimed at expanding productive capacity for existing and new market outlets in the longer term. It is to be hoped that a fuller programme of new asset acquisitions can be revived in time.

 

It is anticipated that with continuing managerial monitoring of operating practices introduced activities will enable some controlled expansion where possible and consistent with market opportunities within their respective fields of operations. The Board did replace much of the older equipment with the original factory during the 2021-22 period with very significant additional borrowings provided for this project which was fully commissioned in early 2022.

 

The Board will continue to consider further investment commitments in glass and stone processing plant and undertake these on an ongoing basis to address both in-house product and processing improvements and to enable The Company to remain at the forefront of our markets.

 

Ongoing research and development will be undertaken consistent with any appropriate opportunities arising.

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 auditor of the company 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 auditor of the company is aware of that information.

Subsidiaries

The main board directors at 31st October, 2023 had no interest in the share capital of any subsidiary company during the year under review.

 

The Managing Directors are not subject to retirement by rotation. Mr Kevin Small has resigned as a director since the year end following his departure from the business.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

MALCOLM, OGILVIE & COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -
On behalf of the board
Mr NG Cunningham
Director
24 July 2024
MALCOLM, OGILVIE & COMPANY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 5 -

The directors are responsible for preparing the Annual 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

MALCOLM, OGILVIE & COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MALCOLM, OGILVIE & COMPANY LIMITED
- 6 -
Opinion

We have audited the financial statements of Malcolm, Ogilvie & Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 group and parent 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 group's and parent 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:

MALCOLM, OGILVIE & COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MALCOLM, OGILVIE & COMPANY LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent 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.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We considered the opportunities that may exist within the organisation for fraud and identified the greatest risk in relation to revenue recognition, valuation of work in progress and management override of internal controls. Our audit procedures to respond to these risks included, but were not limited to;

MALCOLM, OGILVIE & COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MALCOLM, OGILVIE & COMPANY LIMITED
- 8 -

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities including those leading to a material misstatement in the financial statements or non-compliance with regulation. As a result of these, we considered the opportunities that may exist within the organisation for fraud and audit procedures were designed in response to the risks identified, 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, for example, forgery, deliberate concealment, or collusion.

 

As part of an audit in accordance with ISAs (UK), professional judgement was exercised, and professional scepticisms was maintained throughout the audit.

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.

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.

Paul Crichton BAcc CTA CA (Senior Statutory Auditor)
For and on behalf of MMG Archbold Limited
24 July 2024
Chartered Accountants
Statutory Auditor
78-84 Bell Street
Dundee
DD1 1RQ
MALCOLM, OGILVIE & COMPANY LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
2023
2022
as restated
Notes
£
£
Turnover
3
18,270,693
21,103,019
Cost of sales
(14,882,139)
(16,788,992)
Gross profit
3,388,554
4,314,027
Administrative expenses
(4,645,246)
(4,358,419)
Other operating income
465,349
123,710
Operating (loss)/profit
4
(791,343)
79,318
Interest receivable and similar income
7
14,528
7,853
Interest payable and similar expenses
8
(180,866)
(114,088)
Amounts written off investments
-
26
Loss before taxation
(957,681)
(26,891)
Tax on loss
9
(84,000)
126,406
(Loss)/profit for the financial year
28
(1,041,681)
99,515
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
MALCOLM, OGILVIE & COMPANY LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
2023
2022
as restated
£
£
(Loss)/profit for the year
(1,041,681)
99,515
Other comprehensive income
-
-
Total comprehensive income for the year
(1,041,681)
99,515
Total comprehensive income for the year is all attributable to the owners of the parent company.
MALCOLM, OGILVIE & COMPANY LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 11 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
11
6,657,227
8,644,711
Investment property
12
1,010,233
760,233
7,667,460
9,404,944
Current assets
Stocks
15
1,452,908
1,819,713
Debtors
16
3,821,086
4,894,813
Cash at bank and in hand
999,294
776,439
6,273,288
7,490,965
Creditors: amounts falling due within one year
17
(2,703,801)
(4,139,970)
Net current assets
3,569,487
3,350,995
Total assets less current liabilities
11,236,947
12,755,939
Creditors: amounts falling due after more than one year
18
(1,782,001)
(2,437,541)
Provisions for liabilities
Provisions
21
129,802
-
0
Deferred tax liability
22
55,169
9,443
(184,971)
(9,443)
Net assets
9,269,975
10,308,955
Capital and reserves
Called up share capital
24
112,718
112,441
Revaluation reserve
25
109,213
109,213
Other reserves
82,331
79,907
Profit and loss reserves
28
8,965,713
10,007,394
Total equity
9,269,975
10,308,955

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 24 July 2024 and are signed on its behalf by:
24 July 2024
Mr NG Cunningham
Director
Company registration number SC002626 (Scotland)
MALCOLM, OGILVIE & COMPANY LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 12 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,379,326
1,465,100
Investment property
12
1,010,233
760,233
Investments
13
65,498
65,398
2,455,057
2,290,731
Current assets
Debtors
16
3,518,619
3,403,629
Cash at bank and in hand
461,505
329,519
3,980,124
3,733,148
Creditors: amounts falling due within one year
17
(177,502)
(134,971)
Net current assets
3,802,622
3,598,177
Total assets less current liabilities
6,257,679
5,888,908
Provisions for liabilities
Provisions
21
32,476
-
0
Deferred tax liability
22
55,169
9,443
(87,645)
(9,443)
Net assets
6,170,034
5,879,465
Capital and reserves
Called up share capital
24
112,718
112,441
Revaluation reserve
25
109,213
109,213
Other reserves
82,331
79,907
Profit and loss reserves
28
5,865,772
5,577,904
Total equity
6,170,034
5,879,465

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £287,869 (2022 - £68,299 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 24 July 2024 and are signed on its behalf by:
24 July 2024
Mr NG Cunningham
Director
Company registration number SC002626 (Scotland)
MALCOLM, OGILVIE & COMPANY LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 13 -
Share capital
Revaluation reserve
Other reserve
Fair value reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
As restated for the period ended 31 October 2022:
Balance at 1 November 2021
111,424
109,213
179,609
(127,497)
9,975,142
10,247,891
Year ended 31 October 2022:
Profit and total comprehensive income
-
-
-
-
99,515
99,515
Issue of share capital
24
1,017
-
-
-
-
1,017
Dividends
10
-
-
-
-
(48,357)
(48,357)
Transfers
-
-
8,889
-
(18,906)
(10,017)
Other movements
-
-
-
18,906
-
18,906
Balance at 31 October 2022
112,441
109,213
188,498
(108,591)
10,007,394
10,308,955
Year ended 31 October 2023:
Loss and total comprehensive income
-
-
-
-
(1,041,681)
(1,041,681)
Issue of share capital
24
277
-
-
-
-
277
Transfers
-
-
2,424
-
-
2,424
Balance at 31 October 2023
112,718
109,213
190,922
(108,591)
8,965,713
9,269,975
MALCOLM, OGILVIE & COMPANY LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 14 -
Share capital
Revaluation reserve
Other reserve
Fair value reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
As restated for the period ended 31 October 2022:
Balance at 1 November 2021
111,424
109,213
179,609
(127,497)
5,576,868
5,849,617
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
-
-
-
68,299
68,299
Issue of share capital
24
1,017
-
-
-
-
1,017
Dividends
10
-
-
-
-
(48,357)
(48,357)
Transfers
-
-
8,889
-
(18,906)
(10,017)
Other movements
-
-
-
18,906
-
18,906
Balance at 31 October 2022
112,441
109,213
188,498
(108,591)
5,577,904
5,879,465
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
-
-
287,868
287,868
Issue of share capital
24
277
-
-
-
-
277
Transfers
-
-
2,424
-
-
2,424
Balance at 31 October 2023
112,718
109,213
190,922
(108,591)
5,865,772
6,170,034
MALCOLM, OGILVIE & COMPANY LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 15 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
1,258,870
1,062,743
Interest paid
(180,866)
(114,088)
Income taxes (paid)/refunded
(24,490)
103,707
Net cash inflow from operating activities
1,053,514
1,052,362
Investing activities
Purchase of fixed asset investment assets
-
(19,865)
Purchase of tangible fixed assets
(600,970)
(3,328,733)
Proceeds from disposal of tangible fixed assets
1,427,250
167,502
Purchase of investment property
-
(287,080)
Purchase of investments
-
468,521
Management charge
-
3,212
Interest received
14,528
1,578
Dividends received
-
0
4,588
Other income received from investments
-
0
1,687
Net cash generated from/(used in) investing activities
840,808
(2,988,590)
Financing activities
Proceeds from issue of shares
2,700
9,905
New HP in the year
-
0
1,809,982
Repayment of bank loans
(277,405)
(286,161)
Payment of finance leases obligations
(1,396,762)
(421,491)
Dividends paid to equity shareholders
-
0
(48,357)
Net cash (used in)/generated from financing activities
(1,671,467)
1,063,878
Net increase/(decrease) in cash and cash equivalents
222,855
(872,350)
Cash and cash equivalents at beginning of year
776,439
1,648,789
Cash and cash equivalents at end of year
999,294
776,439
MALCOLM, OGILVIE & COMPANY LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 16 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
33
155,385
(786,330)
Income taxes paid
-
0
(23,725)
Net cash inflow/(outflow) from operating activities
155,385
(810,055)
Investing activities
Purchase of tangible fixed assets
(52,000)
(287,494)
Proceeds from disposal of tangible fixed assets
14,000
-
Purchase of subsidiaries
(100)
-
0
Sale of fixed asset investments
-
0
468,515
Purchase of fixed asset investments
-
0
(19,865)
Management charge
-
3,212
Interest received
12,001
228
Dividends received
-
0
4,588
Other income received from investments
-
0
1,687
Net cash (used in)/generated from investing activities
(26,099)
170,871
Financing activities
Proceeds from issue of shares
2,700
9,905
Dividends paid to equity shareholders
-
(48,357)
Net cash generated from/(used in) financing activities
2,700
(38,452)
Net increase/(decrease) in cash and cash equivalents
131,986
(677,636)
Cash and cash equivalents at beginning of year
329,519
1,007,155
Cash and cash equivalents at end of year
461,505
329,519
MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 17 -
1
Accounting policies
Company information

Malcolm, Ogilvie & Company Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 8 Tom Johnston Road, West Pitkerro Industrial Estate, Dundee, Scotland, DD4 8XD.

 

The group consists of Malcolm, Ogilvie & Company Limited and all of its subsidiaries.

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 under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Malcolm, Ogilvie & Company Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 October 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 18 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
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 recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
Straight line over 25-50 years
Plant and equipment
Straight line over 3-4 years, 4-10 years and 6-7 years
Fixtures and fittings
Straight line over 5-7 years
Motor vehicles
Straight line over 4 years

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 recognised in the profit and loss account.

MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 19 -
1.7
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

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 group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

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

1.9
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 20 -

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.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
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.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 21 -
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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

 

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. 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.

MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 22 -
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 group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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 group’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 if, and only if, there is 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.

MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 23 -
1.15
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.16
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.

1.17
Retirement benefits

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

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 24 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
18,270,693
21,103,019
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
18,270,693
21,103,019
2023
2022
£
£
Other revenue
Interest income
14,528
3,265
Dividends received
-
4,588
Grants received
-
4,031
4
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Government grants
-
(4,031)
Fees payable to the group's auditor for the audit of the group's financial statements
6,750
3,030
Depreciation of owned tangible fixed assets
980,155
1,313,956
Loss/(profit) on disposal of tangible fixed assets
181,049
(122,822)
MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 25 -
5
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration
40
38
6
7
116
144
-
-
Total
156
182
6
7

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,018,747
5,725,626
459,372
667,338
Social security costs
464,803
524,758
59,754
87,602
Pension costs
190,883
223,749
41,365
72,749
5,674,433
6,474,133
560,491
827,689
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
319,478
542,857
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
195,916
195,649
MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 26 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
14,528
1,578
Other income from investments
Dividends received
-
0
4,588
Gains on financial instruments measured at fair value through profit or loss
-
0
1,687
Total income
14,528
7,853
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
14,528
1,578
Interest on financial assets measured at fair value through profit or loss
-
0
1,687
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
47,690
27,183
Other finance costs:
Interest on finance leases and hire purchase contracts
133,176
86,905
Total finance costs
180,866
114,088
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(12,405)
Deferred tax
Origination and reversal of timing differences
84,000
(114,001)
Total tax charge/(credit)
84,000
(126,406)
MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
9
Taxation
(Continued)
- 27 -

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

2023
2022
£
£
Loss before taxation
(957,681)
(26,891)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(181,959)
(5,109)
Tax effect of expenses that are not deductible in determining taxable profit
-
0
975
Tax effect of income not taxable in determining taxable profit
(9,025)
(9,025)
Gains not taxable
9,704
6,619
Unutilised tax losses carried forward
13,050
-
0
Change in unrecognised deferred tax assets
238,299
12,800
Adjustments in respect of prior years
-
0
1,379
Effect of change in corporation tax rate
-
4,277
Depreciation on assets not qualifying for tax allowances
13,931
16,403
Superdeduction
-
0
(83,979)
R&D Refund
-
0
(38,501)
Utilised tax losses
-
0
(32,245)
Taxation charge/(credit)
84,000
(126,406)
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
-
48,357
MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 28 -
11
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2022
4,630,463
14,429,904
279,043
963,304
20,302,714
Additions
1,500
445,135
7,860
146,475
600,970
Disposals
(52,127)
(3,217,606)
(143,344)
(270,549)
(3,683,626)
At 31 October 2023
4,579,836
11,657,433
143,559
839,230
17,220,058
Depreciation and impairment
At 1 November 2022
1,418,900
9,069,588
275,555
893,960
11,658,003
Depreciation charged in the year
94,915
819,240
2,619
63,381
980,155
Eliminated in respect of disposals
(1,043)
(1,693,892)
(143,344)
(237,048)
(2,075,327)
At 31 October 2023
1,512,772
8,194,936
134,830
720,293
10,562,831
Carrying amount
At 31 October 2023
3,067,064
3,462,497
8,729
118,937
6,657,227
At 31 October 2022
3,211,563
5,360,316
3,488
69,344
8,644,711
Company
Freehold land and buildings
Plant and equipment
Total
£
£
£
Cost
At 1 November 2022
2,520,605
232,427
2,753,032
Additions
-
0
52,000
52,000
Disposals
(52,127)
(35,670)
(87,797)
At 31 October 2023
2,468,478
248,757
2,717,235
Depreciation and impairment
At 1 November 2022
1,085,262
202,670
1,287,932
Depreciation charged in the year
53,217
33,473
86,690
Eliminated in respect of disposals
(1,043)
(35,670)
(36,713)
At 31 October 2023
1,137,436
200,473
1,337,909
Carrying amount
At 31 October 2023
1,331,042
48,284
1,379,326
At 31 October 2022
1,435,343
29,757
1,465,100
MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 29 -
12
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 November 2022
760,233
760,233
Net gains or losses through fair value adjustments
250,000
250,000
At 31 October 2023
1,010,233
1,010,233

The directors consider that the value in the financial statements represents a reasonable approximation to fair value at the balance sheet date.

13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
65,498
65,398
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2022
65,398
Additions
100
At 31 October 2023
65,498
Carrying amount
At 31 October 2023
65,498
At 31 October 2022
65,398
14
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Ravensby Glass Company Ltd
United Kingdom
Ordinary
100.00
Discovery Stone Surfaces Limited
United Kingdom
Ordinary
100.00
MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 30 -
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
1,146,653
1,547,337
-
-
Work in progress
306,255
272,376
-
-
1,452,908
1,819,713
-
-
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,347,925
4,597,562
8,331
318,030
Corporation tax recoverable
-
0
13,783
-
0
-
0
Amounts owed by group undertakings
-
-
3,191,307
3,061,569
Other debtors
401,714
53,989
315,946
15,715
Prepayments and accrued income
71,447
229,479
3,035
8,315
3,821,086
4,894,813
3,518,619
3,403,629
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
227,405
289,497
-
0
-
0
Obligations under finance leases
20
294,216
1,250,751
-
0
-
0
Trade creditors
837,540
903,343
21,472
590
Other taxation and social security
509,312
641,691
93,757
59,814
Other creditors
311,500
297,500
-
0
-
0
Accruals and deferred income
523,828
757,188
62,273
74,567
2,703,801
4,139,970
177,502
134,971
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
464,309
679,622
-
0
-
0
Obligations under finance leases
20
1,317,692
1,757,919
-
0
-
0
1,782,001
2,437,541
-
-
MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 31 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
691,714
969,119
-
0
-
0
Payable within one year
227,405
289,497
-
0
-
0
Payable after one year
464,309
679,622
-
0
-
0

The Royal Bank of Scotland plc holds an unlimited inter-company guarantee granted by Malcolm, Ogilvie & Company Limited and Ravensby Glass Company Limited. In addition, the bank holds bonds and floating charges granted by the aforementioned companies. Malcolm, Ogilvie & Company Limited and Ravensby Glass Company Limited have also granted the bank a standard security over the subjects at West Pitkerro, Dundee. Funding arrangements are acknowledged in an unregistered letter of set-off by all group members involved.

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
294,216
1,250,751
-
0
-
0
In two to five years
1,317,692
1,757,919
-
0
-
0
1,611,908
3,008,670
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Provision for redundancies
129,802
-
32,476
-
Movements on provisions:
Provision for redundancies
Group
£
Additional provisions in the year
129,802
MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
21
Provisions for liabilities
(Continued)
- 32 -
Provision for redundancies
Company
£
Additional provisions in the year
32,476
22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
7,669
9,443
Revaluations
47,500
-
55,169
9,443
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
7,669
9,443
Revaluations
47,500
-
55,169
9,443
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 November 2022
9,443
9,443
Charge to profit or loss
45,726
45,726
Liability at 31 October 2023
55,169
55,169

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 33 -
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
190,883
223,749

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
104,550
104,550
104,550
104,550
Ordinary B of £1 each
8,168
7,891
8,168
7,891
112,718
112,441
112,718
112,441
25
Revaluation reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
109,213
109,213
109,213
109,213
26
2023
2022
Group and company
£
£
At the beginning of the year
188,498
179,609
Additions
2,424
8,889
At the end of the year
190,922
188,498
27
2023
2022
Group and company
£
£
At the beginning of the year
(108,591)
(127,497)
Other movements
-
18,906
At the end of the year
(108,591)
(108,591)
MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 34 -
28
Profit and loss reserves
Group
Company
2023
2022
2023
2022
as restated
as restated
£
£
£
£
At the beginning of the year
10,007,394
9,975,142
5,577,904
5,576,868
Profit/(loss) for the year
(1,041,681)
99,515
287,868
68,299
Dividends
-
(48,357)
-
(48,357)
Transfer to reserves
-
(18,906)
-
(18,906)
At the end of the year
8,965,713
10,007,394
5,865,772
5,577,904
29
Operating lease commitments
30
Directors' transactions

During the year, the directors received dividends from the company totalling £0 (2022 - £21,494) which were paid in full,

 

Key management personnel of the entity or its parent (in the aggregate)

 

During the year, the company transferred funds of £150 (2022 - £315,796) to MOCO SPV Limited, a company owned and controlled by the directors N G Cunningham and H Ogilvie. The balance outstanding at the end of the year is £315,946. (2022 - £315,796).

31
Share Options

During the year ended 31 October 2022, the company had a share based arrangement as described below.

EMI share options were granted to director G B Dickson under an agreement entered into on 30 December 2014. The number of share options granted was 5,652 ordinary B shares with an exercise price of £9.58 each.

 

EMI share options were also granted to K Small (director of Ravensby Glass Company Limited) under an agreement entered into on 30 December 2014. The number of share options granted was 2,826 ordinary B shares with an exercise price of £9.58 each.

 

Mr Dicksons remaining options can be exercised between 1 January 2014 and 31 December 2021 with 754 becoming available in each of the third to seventh years. The final 752 can be exercised between 1 January and 31 December 2021.

 

Mr Small's options can be exercised between 1 January 2014 and 31 December 2023 with 282 becoming available in each of the first nine years. The final 288 can be exercised between 1 January 2023 and 31 December 2023.

 

The estimated fair value of each share option granted approximates to the exercise price of the options.

 

On 22 December 2022 the 282 options available for 2022 were exercised in accordance with the agreement.

MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 35 -
32
Cash generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(1,041,681)
99,515
Adjustments for:
Taxation charged/(credited)
84,000
(126,402)
Finance costs
180,866
114,088
Investment income
(14,528)
(7,853)
Government Grants
(14,000)
(47,500)
Loss/(gain) on disposal of tangible fixed assets
181,049
(122,822)
Fair value gain on investment properties
(250,000)
-
0
Depreciation and impairment of tangible fixed assets
980,155
1,313,958
Other gains and losses
-
(32)
Increase in provisions
129,802
-
Movements in working capital:
Decrease/(increase) in stocks
366,805
(239,344)
Decrease in debtors
1,059,944
484,988
Decrease in creditors
(403,542)
(405,853)
Cash generated from operations
1,258,870
1,062,743
33
Cash generated from/(absorbed by) operations - company
2023
2022
£
£
Profit for the year after tax
287,868
68,299
Adjustments for:
Taxation charged/(credited)
45,726
(20,010)
Investment income
(12,001)
(6,503)
Loss on disposal of tangible fixed assets
37,084
34,840
Fair value gain on investment properties
(250,000)
-
0
Depreciation and impairment of tangible fixed assets
86,691
74,737
Other gains and losses
-
(23)
Increase in provisions
32,476
-
Movements in working capital:
Increase in debtors
(114,990)
(777,804)
Increase/(decrease) in creditors
42,531
(159,866)
Cash generated from/(absorbed by) operations
155,385
(786,330)
MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 36 -
34
Analysis of changes in net debt - group
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
776,439
222,855
999,294
Borrowings excluding overdrafts
(969,119)
277,405
(691,714)
Obligations under finance leases
(3,008,670)
1,396,762
(1,611,908)
(3,201,350)
1,897,022
(1,304,328)
35
Analysis of changes in net funds - company
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
329,519
131,986
461,505
36
Prior period adjustment
Reconciliation of changes in equity - group
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Total adjustments
-
Profit as previously reported
99,515
Profit as adjusted
99,515
Changes to the balance sheet - company
As previously reported
Adjustment
As restated at 31 Oct 2022
£
£
£
Fixed assets
Tangible assets
29,757
1,435,343
1,465,100
Investment properties
2,195,576
(1,435,343)
760,233
Net assets
5,879,465
-
5,879,465
Capital and reserves
Total equity
5,879,465
-
5,879,465
MALCOLM, OGILVIE & COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
36
Prior period adjustment
(Continued)
- 37 -
Changes to the profit and loss account - company
As previously reported
Adjustment
As restated
Period ended 31 October 2022
£
£
£
Profit after taxation
68,299
-
68,299
Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Total adjustments
-
Profit as previously reported
68,299
Profit as adjusted
68,299
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