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REGISTERED NUMBER: SC069414 (Scotland)




















WELDING ENGINEERS (MERSEY) LTD

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023






WELDING ENGINEERS (MERSEY) LTD (REGISTERED NUMBER: SC069414)






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




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


WELDING ENGINEERS (MERSEY) LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: J Cassells
R A Holmes
G C Nicol
P F B Wilson





SECRETARY: P F B Wilson





REGISTERED OFFICE: 3 Cardowan Park
Uddingston
Glasgow
G71 5PF





REGISTERED NUMBER: SC069414 (Scotland)





AUDITORS: Gerber Landa & Gee
Statutory Auditor
Chartered Accountants
Pavilion 1
Finnieston Business Park
Minerva Way
Glasgow
G3 8AU

WELDING ENGINEERS (MERSEY) LTD (REGISTERED NUMBER: SC069414)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 596,265 459,023

CURRENT ASSETS
Stocks 76,354 66,310
Debtors 5 1,826,886 1,543,709
Cash at bank and in hand 1,502,273 1,098,239
3,405,513 2,708,258
CREDITORS
Amounts falling due within one year 6 1,448,335 886,540
NET CURRENT ASSETS 1,957,178 1,821,718
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,553,443

2,280,741

CREDITORS
Amounts falling due after more than one
year

7

(80,092

)

(37,879

)

PROVISIONS FOR LIABILITIES 10 (68,803 ) (26,561 )
NET ASSETS 2,404,548 2,216,301

CAPITAL AND RESERVES
Called up share capital 3,500 3,500
Capital redemption reserve 1,500 1,500
Retained earnings 2,399,548 2,211,301
SHAREHOLDERS' FUNDS 2,404,548 2,216,301

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

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

The financial statements were approved by the Board of Directors and authorised for issue on 29 July 2024 and were signed on its behalf by:




P F B Wilson - Director



G C Nicol - Director


WELDING ENGINEERS (MERSEY) LTD (REGISTERED NUMBER: SC069414)

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

1. STATUTORY INFORMATION

Welding Engineers (Mersey) Ltd is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
Preparation of the financial statements requires the directors to make significant judgements and estimates regarding the carrying amounts 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 relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

The directors consider that the items in the financial statements where these judgements and estimates have been made include:

- Tangible fixed assets - depreciation has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually by the directors, and they assessed that no changes were required. The stated depreciation policies applied in prior years remains appropriate.

- At the balance sheet date, the directors consider whether there are any indicators that the trade debtor balances relating to goods supplied and services rendered will not be recoverable, to ensure an adequate provision is made for any potentially irrecoverable amounts. Based on their knowledge of the customers concerned, the directors consider that no provision is required against the balances.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover includes revenue earned from the rendering of services, which is recognised by reference to the stage of completion of the assignment. This is measured by comparing the costs incurred for work performed to date to the total estimated contract cost. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Leasehold property - 2% on cost
Plant and machinery - 15% on reducing balance
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 25% on cost and 25% on reducing balance

Fixed assets are included in the financial statements at cost less accumulated depreciation and impairment losses.

At each reporting date non-financial assets not carried at fair value, like plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher in use and fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, but not in excess of the amount that would have been determined had no impairment carrying amount of the asset is reduced to its recoverable amount an an impairment loss is recognised immediately in the income statement.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in previous years. A reversal of an impairment loss is recognised immediately in the income statement.

WELDING ENGINEERS (MERSEY) LTD (REGISTERED NUMBER: SC069414)

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

2. ACCOUNTING POLICIES - continued

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

In respect of work in progress and finished goods, cost includes a relevant proportion of overheads according to the stage of completion.

Financial instruments
The company only enters into basic financial instruments that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, and loans to/from related parties.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest rate method. Debt instruments that are payable or receivable within one year, typically trade debtors and trade creditors, are measured initially and subsequently, at the undiscounted amount of cash or other consideration to be paid or received.

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in the income statement.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

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

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

WELDING ENGINEERS (MERSEY) LTD (REGISTERED NUMBER: SC069414)

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

2. ACCOUNTING POLICIES - continued

Provisions
Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, if it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

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

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 57 (2022 - 51 ) .

4. TANGIBLE FIXED ASSETS
Fixtures
Leasehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 January 2023 229,028 165,810 60,451 582,880 1,038,169
Additions - 1,100 - 272,223 273,323
Disposals - (7,813 ) - (164,820 ) (172,633 )
At 31 December 2023 229,028 159,097 60,451 690,283 1,138,859
DEPRECIATION
At 1 January 2023 68,167 115,508 46,359 349,112 579,146
Charge for year 4,580 7,440 2,114 115,512 129,646
Eliminated on disposal - (4,822 ) - (161,376 ) (166,198 )
At 31 December 2023 72,747 118,126 48,473 303,248 542,594
NET BOOK VALUE
At 31 December 2023 156,281 40,971 11,978 387,035 596,265
At 31 December 2022 160,861 50,302 14,092 233,768 459,023

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 January 2023 258,988
Additions 272,223
Transfer to ownership (64,315 )
At 31 December 2023 466,896
DEPRECIATION
At 1 January 2023 120,088
Charge for year 77,936
Transfer to ownership (88,768 )
At 31 December 2023 109,256
NET BOOK VALUE
At 31 December 2023 357,640
At 31 December 2022 138,900

WELDING ENGINEERS (MERSEY) LTD (REGISTERED NUMBER: SC069414)

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

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,717,535 1,475,675
Amounts owed by group undertakings 10,925 10,925
Other debtors 1,800 2,800
VAT 66,173 11,567
Prepayments and accrued income 30,453 42,742
1,826,886 1,543,709

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 8) 156,255 95,526
Trade creditors 537,491 531,595
Corporation tax 234,070 105,226
Social security and other taxes 56,278 50,185
Other creditors 102,143 46,936
Directors' current accounts 1 -
Accrued charges 362,097 57,072
1,448,335 886,540

7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 8) 80,092 37,879

8. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 156,255 95,526
Between one and five years 80,092 37,879
236,347 133,405

Non-cancellable operating leases
2023 2022
£    £   
Within one year 60,000 60,000
Between one and five years 97,333 157,333
157,333 217,333

WELDING ENGINEERS (MERSEY) LTD (REGISTERED NUMBER: SC069414)

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

9. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Hire purchase contracts 236,347 133,405

Hire purchase contracts are secured on the assets to which they relate.

The Bank of Scotland holds a bond and floating charge over the whole assets of the company.

The Bank of Scotland holds a cross corporate guarantee between the Welding Engineers Group of Companies.

10. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 68,803 26,561

Deferred
tax
£   
Balance at 1 January 2023 26,561
Charge to Income Statement during year 42,242
Balance at 31 December 2023 68,803

The provision for deferred tax consists of the tax effect of timing differences in respect of the excess of taxation allowances over depreciation on fixed assets.

11. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Ian McGougan (Senior Statutory Auditor)
for and on behalf of Gerber Landa & Gee

12. PARENT COMPANY

The company's parent company is Welding Engineers (Holdings) Limited, a company incorporated in Scotland, having its registered office at 3 Cardowan Park, Uddingston, Glasgow, G71 5PF. Copies of the accounts of this company are available from the Registrar of Companies, Edinburgh.