Company registration number 01756304 (England and Wales)
D.G. SCOTT LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
D.G. SCOTT LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
D.G. SCOTT LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
635,579
660,175
Current assets
Stocks
322,980
195,806
Debtors
4
475,247
545,576
Cash at bank and in hand
1,683
155,640
799,910
897,022
Creditors: amounts falling due within one year
5
(755,757)
(725,287)
Net current assets
44,153
171,735
Total assets less current liabilities
679,732
831,910
Provisions for liabilities
(71,769)
(75,797)
Net assets
607,963
756,113
Capital and reserves
Called up share capital
100
100
Revaluation reserve
6
206,641
209,520
Profit and loss reserves
401,222
546,493
Total equity
607,963
756,113
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 10 July 2024 and are signed on its behalf by:
D N Frost
Director
Company registration number 01756304 (England and Wales)
D.G. SCOTT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
D.G. Scott Limited is a private company limited by shares incorporated in England and Wales. The registered office is Industrial Estate South, Park Road, Calverton, Nottingham, NG14 6BP.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of B.S. Specialist Products Limited. These consolidated financial statements are available from its registered office.
1.2
Going concern
The Board believes that the business has the ability to remain trading for a period of at least 12 months from the date of signing of these financial statements. true
The directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
1.3
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.
D.G. SCOTT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
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.
Revenue from contracts for the provision of engineering services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
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:
Land and buildings Freehold
Not depreciated or 2% straight line basis
Plant and machinery
15% reducing balance basis or 10% straight line basis
Fixtures, fittings & equipment
10% reducing balance basis
Motor vehicles
25% reducing balance basis
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.
1.6
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).
1.7
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.
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.
D.G. SCOTT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.8
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.
1.9
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.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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.
D.G. SCOTT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
20
21
3
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2023
545,000
661,961
21,117
32,031
1,260,109
Additions
44,000
44,000
Disposals
(11,799)
(11,799)
At 31 December 2023
545,000
694,162
21,117
32,031
1,292,310
Depreciation and impairment
At 1 January 2023
1,038
564,552
7,165
27,179
599,934
Depreciation charged in the year
6,229
58,878
1,387
1,213
67,707
Eliminated in respect of disposals
(10,910)
(10,910)
At 31 December 2023
7,267
612,520
8,552
28,392
656,731
Carrying amount
At 31 December 2023
537,733
81,642
12,565
3,639
635,579
At 31 December 2022
543,962
97,409
13,952
4,852
660,175
Land and buildings with a carrying amount of £543,962 were revalued at 26 October 2022 by Spencer Birch Chartered Surveyors, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
D.G. SCOTT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Tangible fixed assets
(Continued)
- 6 -
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £331,650 (2022 - £335,000), being cost £351,359 (2022 - £351,359) and depreciation £20,109 (2022 - £16,759).
The directors believe the fair value of the property has not materially changed since the last valuation.
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
53,178
54,494
Amounts owed by group undertakings
400,500
461,127
Other debtors
21,569
29,955
475,247
545,576
The invoice discounting account of £18,684 (2022: 4,791 included in creditprs) is included within other debtors and is secured against trade debtors.
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
114,950
192,158
Amounts owed to group undertakings
597,295
471,853
Taxation and social security
22,522
38,804
Other creditors
20,990
22,472
755,757
725,287
6
Revaluation reserve
2023
2022
£
£
At the beginning of the year
209,520
Revaluation surplus arising in the year
210,000
Transfer to retained earnings
(2,879)
(480)
At the end of the year
206,641
209,520
D.G. SCOTT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
James Simmonds
Statutory Auditor:
UHY Hacker Young
8
Financial commitments, guarantees and contingent liabilities
The company has signed cross guarantees in respect of bank borrowings of the group companies.
These borrowings are secured by a fixed and floating charge over the assets of the company.
D.G. SCOTT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
9
Related party transactions
Transactions with related parties
During the year the company paid hire of equipment charges of £35,103 (2022: £54,140) to Milo Trading Ltd, of which J Watkinson is a director of.
Other information
Under FRS 102, it is not necessary for the company to disclose related party transactions with fellow subsidiaries or parents 100% owned within the group.
10
Parent company
The company is controlled by B.S. Specialist Products Limited by virtue of their 100% shareholding. B.S. Specialist Products Limited is the smallest and largest group into which the results are consolidated. The consolidated financial statements are available at companies house.