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REGISTERED NUMBER: SC441561 (Scotland)









Strategic Report, Report of the Directors and

Audited Financial Statements

For The Year Ended 31 December 2023

for

Insulated Render Systems (Scotland) Ltd.

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Contents of the Financial Statements
For The Year Ended 31 December 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 16


Insulated Render Systems (Scotland) Ltd.

Company Information
For The Year Ended 31 December 2023







DIRECTORS: J A Collum
B Collum
A E Collum
A L Collum





REGISTERED OFFICE: 74 Glencraig Street
Airdrie
ML6 9AS





REGISTERED NUMBER: SC441561 (Scotland)





AUDITORS: Cahill Jack Associates Limited
Chartered Accountants and Statutory Auditors
91 Alexander Street
Airdrie
North Lanarkshire
ML6 0BD

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Strategic Report
For The Year Ended 31 December 2023


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

The strategic report forms part of the company's annual accounts and copies are available from the registered office given on the company information page.

REVIEW OF BUSINESS
The directors consider the results for the year to be satisfactory and in line with expectations despite the challenging trading conditions resulting from global events.

Below is a summary of the main key performance indicators (KPIs) from the amounts included within the financial statements:

2023 2022
Gross Profit % age 16.39% 32.50%
Net Profit before tax % age 7.37% 24.10%
Turnover £19.00m £18.31m
Net profit before tax £1.40m £4.41m
Net asset value £3.34m £2.68m

Given the straightforward nature of the business, the directors are of the opinion that the KPIs above are sufficient to enable an understanding of the development, performance and position of the company. KPIs are continuously measured internally in order to monitor comparative efficiencies and to measure the results of implemented strategies.

Although turnover increased, the gross profit fell significantly due to increased costs relating to direct purchases and subcontractors fees.

The directors are confident that the company has sufficient resources to enable the company's operations to continue effectively.

Going Concern
The company meets its day-to-day working capital requirements through its cash reserves. The company’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company should be able to operate within the level of its current cash reserves.

The directors have carried out a going concern assessment using forecasts across a period to the end of 2024. These forecasts include both a base case and a severe but plausible downside scenario. Across the forecast period, the company is forecast in both scenarios to be profitable and cash generative in aggregate. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, a period of not less than 12 months following the date of approval of the financial statements and that the company is well placed to manage business risks successfully despite the current uncertain economic outlook. The company has a strong balance sheet and is not reliant on long term bank borrowings. The financial statements have been prepared on a going concern basis.


Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Strategic Report
For The Year Ended 31 December 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the execution of the company's strategy are subject to a number of risks. The key risks affecting the company are set out below:-

Competition
The company operates in a highly competitive market, particularly in respect of pricing and services availability and quality. This results in not only constant pressure on margins but also in the risk that the company may fall short of customers' expectations. In order to mitigate this risk the directors and managers ensure that the company continually monitors market prices and routinely undertakes quality control procedures in order to ensure that customer expectations are fully met. They also maintain a constant programme of innovation within the professional expertise and services offered to customers as well as regular development meetings with customers to ensure their satisfaction in the quality of service supplied.

Employees
The company's performance depends largely on the experience of its managers and staff. The loss of key individuals or the inability to recruit people with the right level of experience and skills could adversely impact on the financial performance. In order to mitigate these risks they have introduced a programme for employees to enhance continuous learning and skills improvements and has implemented an incentive scheme designed to retain key individuals.

Services provision
Given the company's focus on service availability and quality it continually monitors available services within the market plus the demands and requirements of its customers. The company retains staff of a specialist nature who regularly attend training courses both in house and externally. This ensures the required level of expertise is maintained to ensure the quality and variety of services expected by its customers.

FINANCIAL RISK MANAGEMENT
Credit and price risk
Company policies are aimed at minimising any potential exposure and require that deferred terms are only offered where customers demonstrate an appropriate payment history and satisfy credit worthiness procedures. Credit limits are subject to regular review to ensure that limits remain appropriate to the circumstances of each customer.

Liquidity risk
The company aims to mitigate liquidity risk by managing cash generations from its operations. The company also manages liquidity risk via revolving credit facilities.

Interest rate and cash flow risk
The company also uses short term deposit to ensure cash availability throughout the year.

ON BEHALF OF THE BOARD:





B Collum - Director


16 August 2024

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Report of the Directors
For The Year Ended 31 December 2023


The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of supply and fit of insulation related products.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 will be £510,000.

FUTURE DEVELOPMENTS
The company intends to continue expanding and is continually adapting its business plan to changes within the business sector.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

J A Collum
B Collum
A E Collum
A L Collum

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Report of the Directors
For The Year Ended 31 December 2023


AUDITORS
The auditors, Cahill Jack Associates Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





B Collum - Director


16 August 2024

Report of the Independent Auditors to the Members of
Insulated Render Systems (Scotland) Ltd.


Opinion
We have audited the financial statements of Insulated Render Systems (Scotland) Ltd. (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Insulated Render Systems (Scotland) Ltd.


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 controls as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Insulated Render Systems (Scotland) Ltd.


Auditors' 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 a Report of the Auditors 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. Having been appointed as auditors under the relevant sections of the Companies Act 2006, our objectives were 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 was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity through communication with management and determined the most significant regulations included employment law, tax legislation, data protection laws, health and safety, bribery and corruption practices, and the Companies Act 2006.

Identified laws and regulations that were considered to have a possible direct material effect on the financial statements or the operations of the company, were communicated with the audit team who were instructed to remained alert for instances of non-compliance throughout the audit. We also ensured that the team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. Based on the results of our risk assessment, we designed our audit procedures to identify non-compliance with these laws and regulations by questioning management and those charged with governance and corroborated by review of board minutes, HMRC correspondence and regulatory bodies.

We also assessed the risks of material misstatement in respect of fraud through enquiries of management and those charged with governance augmented by discussions with the audit team at pre audit meetings. This included an assessment of internal controls used to mitigate risks of fraud. Audit procedures were also designed to identify the main areas of weakness and address any possible material misstatements in relation to fraud.

We also considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Insulated Render Systems (Scotland) Ltd.


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.




Antony Fraser (Senior Statutory Auditor)
Cahill Jack Associates Limited Cahill Jack Associates Limited
Chartered Accountants and Statutory Auditors
91 Alexander Street
Airdrie
North Lanarkshire
ML6 0BD

16 August 2024

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Statement of Comprehensive Income
For The Year Ended 31 December 2023

31.12.23 31.12.22
as restated
Notes £    £    £    £   

TURNOVER 19,008,801 18,314,545

Cost of sales 15,892,441 12,578,253
GROSS PROFIT 3,116,360 5,736,292

Distribution costs 51,755 7,393
Administrative expenses 1,649,696 1,278,364
1,701,451 1,285,757
1,414,909 4,450,535

Other operating income 5,000 5,000
OPERATING PROFIT 4 1,419,909 4,455,535

Interest receivable and similar income 2,301 658
1,422,210 4,456,193

Interest payable and similar expenses 5 21,409 42,046
PROFIT BEFORE TAXATION 1,400,801 4,414,147

Tax on profit 6 232,132 958,883
PROFIT FOR THE FINANCIAL YEAR 1,168,669 3,455,264

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,168,669

3,455,264
Prior year adjustment 8 (661,180 )
TOTAL COMPREHENSIVE INCOME
SINCE LAST ANNUAL REPORT

507,489

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Balance Sheet
31 December 2023

31.12.23 31.12.22 1.1.22
as restated
Notes £    £    £   
FIXED ASSETS
Tangible assets 9 520,368 516,169 202,383
Investments 10 165,098 - -
685,466 516,169 202,383

CURRENT ASSETS
Stocks 11 78,555 120,659 17,297
Debtors 12 3,642,068 2,953,876 909,153
Cash at bank and in hand 1,531,702 4,158,775 266,183
5,252,325 7,233,310 1,192,633
CREDITORS
Amounts falling due within one year 13 (2,370,056 ) (4,600,668 ) (891,917 )
NET CURRENT ASSETS 2,882,269 2,632,642 300,716
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,567,735

3,148,811

503,099

CREDITORS
Amounts falling due after more than one
year

14

(124,402

)

(386,485

)

(237,164

)

PROVISIONS FOR LIABILITIES 18 (99,094 ) (76,756 ) (35,629 )
NET ASSETS 3,344,239 2,685,570 230,306

CAPITAL AND RESERVES
Called up share capital 19 4,000 4,000 4,000
Retained earnings 20 3,340,239 2,681,570 226,306
SHAREHOLDERS' FUNDS 3,344,239 2,685,570 230,306

The financial statements were approved by the Board of Directors and authorised for issue on 16 August 2024 and were signed on its behalf by:





B Collum - Director


Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Statement of Changes in Equity
For The Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 4,000 226,306 230,306
Profit for the year - 4,116,444 4,116,444
Total comprehensive income - 4,116,444 4,116,444
Dividends - (1,000,000 ) (1,000,000 )
Total transactions with owners,
recognised directly in equity

-

(1,000,000

)

(1,000,000

)
Balance at 31 December 2022 4,000 3,342,750 3,346,750
Prior year adjustment - (661,180 ) (661,180 )
As restated 4,000 2,681,570 2,685,570
Profit for the year - 1,168,669 1,168,669
Total comprehensive income - 1,168,669 1,168,669
Dividends - (510,000 ) (510,000 )
Total transactions with owners,
recognised directly in equity

-

(510,000

)

(510,000

)
Balance at 31 December 2023 4,000 3,340,239 3,344,239

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Cash Flow Statement
For The Year Ended 31 December 2023

31.12.23 31.12.22
as restated
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (65,999 ) 5,322,672
Interest paid (9,889 ) (32,488 )
Interest element of hire purchase and finance
lease rental payments paid

(11,520

)

(9,558

)
Tax paid (946,882 ) (244,959 )
Net cash from operating activities (1,034,290 ) 5,035,667

Cash flows from investing activities
Purchase of tangible fixed assets (236,821 ) (183,331 )
Purchase of fixed asset investments (165,098 ) -
Sale of tangible fixed assets 53,152 58,016
Interest received 2,301 658
Net cash from investing activities (346,466 ) (124,657 )

Cash flows from financing activities
Loan repayments in year (233,995 ) (38,265 )
Intercompany Loan (349,418 ) -
Capital repayments in year (77,661 ) (70,297 )
Amount introduced by directors - 90,144
Amount withdrawn by directors (75,243 ) -
Equity dividends paid (510,000 ) (1,000,000 )
Net cash from financing activities (1,246,317 ) (1,018,418 )

(Decrease)/increase in cash and cash equivalents (2,627,073 ) 3,892,592
Cash and cash equivalents at beginning of
year

2

4,158,775

266,183

Cash and cash equivalents at end of year 2 1,531,702 4,158,775

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Notes to the Cash Flow Statement
For The Year Ended 31 December 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.12.23 31.12.22
as restated
£    £   
Profit before taxation 1,400,801 4,414,147
Depreciation charges 186,034 100,713
Profit on disposal of fixed assets (6,564 ) (17,443 )
Finance costs 21,409 42,046
Finance income (2,301 ) (658 )
1,599,379 4,538,805
Decrease/(increase) in stocks 42,104 (103,361 )
Increase in trade and other debtors (338,773 ) (2,044,723 )
(Decrease)/increase in trade and other creditors (1,368,709 ) 2,931,951
Cash generated from operations (65,999 ) 5,322,672

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 1,531,702 4,158,775
Year ended 31 December 2022
31.12.22 1.1.22
as restated
£    £   
Cash and cash equivalents 4,158,775 266,183


Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Notes to the Cash Flow Statement
For The Year Ended 31 December 2023


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 4,158,775 (2,627,073 ) 1,531,702
4,158,775 (2,627,073 ) 1,531,702
Debt
Hire purchase and finance leases (262,223 ) 77,661 (184,562 )
Debts falling due within 1 year (69,957 ) 59,957 (10,000 )
Debts falling due after 1 year (191,538 ) 174,038 (17,500 )
(523,718 ) 311,656 (212,062 )
Total 3,635,057 (2,315,417 ) 1,319,640

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Notes to the Financial Statements
For The Year Ended 31 December 2023


1. STATUTORY INFORMATION

Insulated Render Systems (Scotland) 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
The preparation of financial information in compliance with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The directors have identified the following areas which give rise to estimation uncertainty:

1) Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and any residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account.

2) Valuation of stock and work in progress use estimations of recoverable amounts based on recent sales for items included within stock. Comparison of estimated net realisable value with written down costs may give rise to changes in values of stock reported in the accounts.

3) Debtors recoverability: For any balance considered irrecoverable, provision is made against the debtor. The remaining debtor balance at the year end not provided for, is therefore considered fully recoverable.

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 and in any future periods affected.

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding trade discounts, value added tax and any other sales taxes The following criteria must also be met before revenue is recognised:

Sale of goods
Revenue from sale of goods is recognised when all of the following conditions are satisfied:

- the company has transferred the significant risks and rewards of ownership to the buyer;
- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
- the amount of revenue can be measured reliably;
- it is probable that the company will receive the consideration due under the transaction;
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.


Rendering of services
Revenue from agreement to provide services is recognised in the period in which the services are provided when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;
- it is probable that the company will receive the consideration due under the agreement.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 20% on reducing balance
Motor vehicles - 33% on cost
Computer equipment - 33% on reducing balance

Tangible assets are stated at original cost less accumulated depreciation and accumulated impairment losses.

Land and buildings is comprised of freehold property. Buildings are depreciated using a straight line method. Land is not depreciated. Depreciation on other assets, is calculated using a reducing balance method to allocate the cost less the residual values over their estimated useful lives. The estimated useful lives and residual values are reviewed annually and revised as appropriate. Estimations are evidenced by previous disposal made by the company during current and prior accounting periods.

The company adds to the carrying amount of an item of fixed asset the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. Any carrying amount of the replaced part is written off. Repairs and maintenance are charged to the profit and loss during the year in which they are incurred except for any parts unused at the year end.

Asset residual values, useful lives and depreciation methods of relevant assets are reviewed, and adjusted prospectively if appropriate. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and recognised in the profit and loss during the year of disposal.

Government grants
Grants considered to be revenue in nature are credited to the profit and loss account in the same period as the related expenditure.

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

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

Stock and work in progress comprises of various costs of items and consumables used in the performance of the company's trading activity. Estimated values are reviewed annually and revised as appropriate taking into account any trading during current and prior accounting periods.

Financial instruments
Trade debtors and trade creditors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.

The following assets and liabilities are classified as financial instruments - trade debtors, trade creditors, bank loans, directors' loans and forward currency contracts (derivatives).

Any bank loans are initially measured at the present value of future payments, discounted at a market rate of interest, and subsequently at amortised cost using the effective interest method. Trade debtors and trade creditors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received. They are measured at fair value. Gains and losses arising from changes in the fair value of derivative financial instruments are included in the profit or loss in the period in which they arise.

Financial assets that are measured at amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss.

Any borrowing costs are recognised in the profit and loss account in the year in which they are incurred.

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

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Assets purchased under hire purchase agreement contracts are capitalise and show as assets on the balance sheet with the related liability shown in creditors. Capital repayments are deducted from this balance abd interest charge to the profit and loss when paid.

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.

Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than 3 months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Share capital and dividends
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividend distributions to the company’s shareholders are recognised in the profit and loss account when they have been paid.

3. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
as restated
£    £   
Wages and salaries 1,046,163 942,025
Social security costs 110,009 109,436
Other pension costs 19,414 18,423
1,175,586 1,069,884

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023


3. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
31.12.23 31.12.22
as restated

Average number of employees 33 36

31.12.23 31.12.22
as restated
£    £   
Directors' remuneration 243,633 172,121

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director for the year ended 31 December 2023 is as follows:
31.12.23

£   
Emoluments etc 80,157

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.23 31.12.22
as restated
£    £   
Hire of plant and machinery 369,351 303,582
Other operating leases 101,411 39,060
Depreciation - owned assets 71,104 100,713
Depreciation - assets on hire purchase contracts and finance leases 114,930 61,898
Profit on disposal of fixed assets (6,564 ) (17,443 )
Auditors' remuneration 15,000 7,500

5. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
as restated
£    £   
Bank loan interest 9,889 32,488
Hire purchase 8,236 6,775
Leasing 3,284 2,783
21,409 42,046

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023


6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.23 31.12.22
as restated
£    £   
Current tax:
UK corporation tax 209,794 881,640

Deferred tax 22,338 77,243
Tax on profit 232,132 958,883

UK corporation tax has been charged at 25% .

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.23 31.12.22
as restated
£    £   
Profit before tax 1,400,801 4,414,147
Profit multiplied by the standard rate of corporation tax in the UK of
23.520% (2022 - 22.160%)

329,468

978,175

Effects of:
Expenses not deductible for tax purposes 54,615 25,766
Capital allowances in excess of depreciation (48,666 ) (80,058 )
Losses offset against profits - (42,243 )
Prior period adjustment (125,624 ) -
Deferred tax charge 22,339 77,243
Total tax charge 232,132 958,883

7. DIVIDENDS
31.12.23 31.12.22
as restated
£    £   
Ordinary shares of £1 each
Final 510,000 1,000,000

8. PRIOR YEAR ADJUSTMENT

The last year's totals have been adjusted for the following prior year adjustments:

The closing stock value was overstated by £661,180 due to the inclusion of stock in both closing work in progress and final closing stock. Last year's amounts for stock have been adjusted for this overstatement.

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023


9. TANGIBLE FIXED ASSETS
Plant and Motor Computer
machinery vehicles equipment Totals
£    £    £    £   
COST
At 1 January 2023 27,276 802,274 34,259 863,809
Additions 3,367 232,205 1,249 236,821
Disposals - (138,194 ) - (138,194 )
At 31 December 2023 30,643 896,285 35,508 962,436
DEPRECIATION
At 1 January 2023 22,572 301,245 23,823 347,640
Charge for year 1,255 181,092 3,687 186,034
Eliminated on disposal - (91,606 ) - (91,606 )
At 31 December 2023 23,827 390,731 27,510 442,068
NET BOOK VALUE
At 31 December 2023 6,816 505,554 7,998 520,368
At 31 December 2022 4,704 501,029 10,436 516,169

Fixed assets, included in the above, which are held under hire purchase contracts and finance leases are as follows:
Motor
vehicles
£   
COST
At 1 January 2023 531,308
Disposals (44,497 )
At 31 December 2023 486,811
DEPRECIATION
At 1 January 2023 109,567
Charge for year 114,930
At 31 December 2023 224,497
NET BOOK VALUE
At 31 December 2023 262,314
At 31 December 2022 421,741

10. FIXED ASSET INVESTMENTS

Investments (neither listed nor unlisted) were as follows:
31.12.23 31.12.22
as restated
£    £   
Other investments 165,098 -

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023


11. STOCKS
31.12.23 31.12.22
as restated
£    £   
Work-in-progress 78,555 120,659

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
as restated
£    £   
Trade debtors 2,224,300 821,991
Amounts owed by participating interests 398,603 49,184
Other debtors 2,100 100
Corp tax recoverable assets 33,831 33,831
Prepayments and accrued income 816,472 1,929,614
Prepayments 166,762 119,156
3,642,068 2,953,876

Transcast Properties Ltd owed the company £398,603 (2022 - £49,184) at the year end which is interest free and repayable on demand.

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
as restated
£    £   
Bank loans and overdrafts (see note 15) 10,000 69,957
Hire purchase contracts and finance leases (see note 16)
77,660

67,276
Trade creditors 1,249,892 1,863,203
Tax 132,652 869,740
Social security and other taxes 59,122 80,216
VAT 138,752 1,335,065
Other creditors 5,931 8,100
Directors' current accounts 9,803 90,144
Directors' loan accounts 5,098 -
Accruals and deferred income 681,146 216,967
2,370,056 4,600,668

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.23 31.12.22
as restated
£    £   
Bank loans (see note 15) 17,500 191,538
Hire purchase contracts and finance leases (see note 16)
106,902

194,947
124,402 386,485

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023


15. LOANS

An analysis of the maturity of loans is given below:

31.12.23 31.12.22
as restated
£    £   
Amounts falling due within one year or on demand:
Bank loans 10,000 69,957

Amounts falling due between two and five years:
Bank loans - 2-5 years 17,500 191,538

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts Finance leases
31.12.23 31.12.22 31.12.23 31.12.22
as restated as restated
£    £    £    £   
Net obligations repayable:
Within one year 68,824 58,440 8,836 8,836
Between one and five years 57,147 136,355 49,755 58,592
125,971 194,795 58,591 67,428

17. SECURED DEBTS

The following secured debts are included within creditors:

31.12.23 31.12.22
as restated
£    £   
Bank loans 27,500 -
Hire purchase contracts and finance leases 184,562 262,223
212,062 262,223

The Royal Bank of Scotland has been granted a floating charge over all assets in respect of overdraft facility
provided.

Hire purchase creditors and finance lease creditors are secured on the assets concerned.

The BBL loan is supported by a 100% guarantee from the UK Government.

18. PROVISIONS FOR LIABILITIES
31.12.23 31.12.22
as restated
£    £   
Deferred tax 99,094 76,756

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023


18. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 January 2023 76,756
Accelerated capital allowances 18,260
Corporation tax rate change 4,078
Balance at 31 December 2023 99,094

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: as restated
£    £   
4,000 Ordinary £1 4,000 4,000

20. RESERVES
Retained
earnings
£   

At 1 January 2023 3,342,750
Prior year adjustment (661,180 )
2,681,570
Profit for the year 1,168,669
Dividends (510,000 )
At 31 December 2023 3,340,239

21. RELATED PARTY DISCLOSURES

During the year, total dividends of £510,000 were paid to the directors .

The company had the following related party transactions during the year:

A B Management & Contract Negotiation Consultants Ltd
Fee for consultancy services £150,000
Balance outstanding included within accruals

T A Consultancy Services Ltd

Fee for consultancy services £150,000
Balance outstanding included within accruals

Transcast Properties Ltd owed the company £398,603 (2022 - £49,184) at the year end which is interest free and repayable on demand.The balance is included within debtors due within one year.

Transactions between companies are at arms length based on open market value and mostly involve the transfer of funds between companies with common directors and shareholders unless stated other wise.

Insulated Render Systems (Scotland) Ltd. (Registered number: SC441561)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023


22. ULTIMATE CONTROLLING PARTY

In the opinion of the directors, there is no single ultimate controlling party.