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REGISTERED NUMBER: SC109397 (Scotland)















Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 December 2023

for

Lomond Plant Limited

Lomond Plant Limited (Registered number: SC109397)






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

Statement of Financial Position 11

Statement of Changes in Equity 12

Statement of Cash Flows 13

Notes to the Statement of Cash Flows 14

Notes to the Financial Statements 16


Lomond Plant Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: Mrs S E Easton
Mr R A Easton
Mrs A S McGrillis
Ms K E Porter





SECRETARY: Mrs A S McGrillis





REGISTERED OFFICE: 15 Merchiston Industrial Estate
Bankside
Falkirk
FK2 7PD





REGISTERED NUMBER: SC109397 (Scotland)





AUDITORS: Accountants Plus (Hamilton) Ltd
T/A Accountants Plus
Statutory Auditor
Unit 1 Cadzow Park
82 Muir Street
Hamilton
ML3 6BJ

Lomond Plant Limited (Registered number: SC109397)

Strategic Report
for the Year Ended 31 December 2023

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

REVIEW OF BUSINESS
2023 has again been a difficult year in the construction industry. As the economy continued it's Covid recovery the war in Ukraine was starting to take effect on energy prices.The disastrous mini budget then exacerbated the situation raising the cost of borrowing to levels unseen in many years.Turnover declined by 10% which nullified the growth of 2022. Housebuilding ground to a halt as interest rates prevented people from either moving house or coming into the market as a first time buyer.

Despite the restraints above the company continued to invest in its fleet as plant which was refinanced during covid and as a result was much older than the company would normally countenance had to be offloaded to renew the fleet.This has had multiple effects :-
a) Hire Purchase repayments and interest were much higher than on the older machines financed before the economy meltdown.This effected both cash flow and profits.
b) Repair costs started to reduce(29% of turnover compared to 32% in 2022)
c) The company was able to increase hire rates as new machinery was more attractive.
d) As a result margins went up from 19% to 23.5%

The company has invested £5.7m in new plant in the year but has reduced its fleet by a net £3.2m.

Inflation continued to rage in 2023 but is now under control and this had an effect on all costs.and margins.The company has as mentioned raised contract hire rates to compensate in part for these increases. We see 2024 as a year of consolidation to allow inflation and interest rates to subside and relative stability come back to the economy.

Overheads rose by £297k mainly as a result of suffering £253K losses on the aforementioned asset replacement exercise. As a result of holding on to plant longer than anticipated during the Covid period and the fact that the assets had to be replaced during a period in which the price of second hand plant fell sharply with the down turn in the construction sector assets did not hold their price and significant losses were incurred. Fortunately the new finance agreements have a residual buyback clause from JCB and the assets are written down to coincide with the value which is guaranteed on disposal.

The company has higher funding charges as it uses its bank facility to a greater extent as costs and funding payments increase.The facility is strong and has significant headroom to allow the business to take advantage of the expected recovery over the next few years.

The company made a modest Profit before tax of £198k was achieved which is down on 2022 (£510k). In 2024 there has been a strategic review of the asset base and plant utility.The company monitors plant utilisation on a daily basis through it's KPIs and costs are controlled by micro management. Utilisation has started to grow in 2024 and is currently at it's highest rate in several months.The fleet is slimmer but more efficient which means that as utilisation is expanded so are profits.

To date in 2024 the company has continued to update the fleet and has invested £2.9m in new machinery during the first 5 months of 2024.The fleet has been trimmed for under used plant and further buying decisions require to be made late in quarter 4 of 2024.These decisions will be driven by the costs of replacement and the condition of plant where the contract agreement has expired. Having a more modern fleet makes the business more competitive and justifies rate increases.


Lomond Plant Limited (Registered number: SC109397)

Strategic Report
for the Year Ended 31 December 2023

The first 5 months of 2024 has been slow and the company is consolidating it's position. Results are modest which is not where most companies want to be but strategies are in place to raise revenues and signs are that the recovery of the construction industry has begun and this should kick in during the latter part of 2024.

The Directors are encouraged by the activity in the market and the response to the fleet modernisation. Inflationary pressures will continue to ease in 2024 and it is anticipated that borrowing costs will reduce in the Autumn.

The up to date Key Performance Indicator reports mean that results are monitored weekly and corrective action taken quickly.

PRINCIPAL RISKS AND UNCERTAINTIES
The key risks and uncertainties are as follows :-

Continuous price increases mean profits on contracts are under pressure and will require scrutiny on a regular basis

The costs of new plant need to be matched by savings on repairs and running costs and added value charge out rates.Current experience is favourable but there is still an element of uncertainty which needs to be monitored over asset lives

Liquidity risks are reasonably low due to the exemplary cash collection techniques and the comfort of having an almost 100% bad debt cover allied to a circa £1.5m Invoice Discounting facility which is still well below it's allowable drawdown levels.

The company remains ISO 45001 accredited and strives continually to increase standards which reflects in the lack of any major health incidents in the past 12 months.

ON BEHALF OF THE BOARD:





Mr R A Easton - Director


15 August 2024

Lomond Plant Limited (Registered number: SC109397)

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 the hire of operated and self drive plant to customers

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 will be £ 704,513 .

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

Mrs S E Easton
Mr R A Easton
Mrs A S McGrillis
Ms K E Porter

POLITICAL DONATIONS AND EXPENDITURE
The donations made in the year were to registered charities

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

Lomond Plant Limited (Registered number: SC109397)

Report of the Directors
for the Year Ended 31 December 2023


AUDITORS
The auditors, Accountants Plus (Hamilton) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr R A Easton - Director


15 August 2024

Report of the Independent Auditors to the Members of
Lomond Plant Limited

Opinion
We have audited the financial statements of Lomond Plant Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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.

Report of the Independent Auditors to the Members of
Lomond Plant Limited


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.

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 control 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
Lomond Plant Limited


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.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.

The key factors impacting the detection of irregularities are the inherent difficulty in detecting irregularities, the effectiveness of the company's controls and the nature, timing and extent of the audit procedures performed.

We note that it can be harder to detect irregularities arising due to fraud as they may involve deliberate concealment or collusion. We focused on laws and regulations that could give rise to a material misstatement in the financial statements Including, but not limited to, the Companies Act 2006 and significant regulations relating to the sector in which the company operates.

Our procedures in relation to fraud and irregularities included but were not limited to:

-Inquiries of management whether they have knowledge of any actual, suspected or alleged fraud.

- Gaining an understanding of the legal and regulatory framework through discussion with management and identifying how the entity ensures compliance through a review of systems. Assessing the collective ability of the audit team to identify or recognize non-compliance with laws and regulations.

-Gaining an understanding of the internal controls established to mitigate risk related to fraud.

- Making an assessment of the susceptibility of the company's financial statements to material misstatement.

- Carrying out a review of accounting systems and procedure and making an assessment on the effectiveness of its control environment.

-Identifying the principal risks where fraud could take place eg posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates and significant one-off or unusual transaction. Discussion of these matters by the audit team.


Report of the Independent Auditors to the Members of
Lomond Plant Limited

-Addressing the risk of fraud through management override of controls by performing journal entry testing.

- Review of board minutes and relevant correspondence with regulators and legal advisors.

- Agreement of the financial statement disclosures to underlying supporting documentation

The primary responsibility for the prevention and detection of irregularities including fraud rests with both those charged with governance and management.

Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK)

In particular, the more removed from the financial transactions, the less likely it is that we would become aware of non-compliance with laws and regulations.

As a result of our procedures, we did not identify any key audit matters relating to irregularities.

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.

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.




Fiona Struthers CA (Senior Statutory Auditor)
for and on behalf of Accountants Plus (Hamilton) Ltd
T/A Accountants Plus
Statutory Auditor
Unit 1 Cadzow Park
82 Muir Street
Hamilton
ML3 6BJ

15 August 2024

Lomond Plant Limited (Registered number: SC109397)

Statement of Comprehensive Income
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

TURNOVER 10,191,144 11,409,747

Cost of sales 7,801,161 9,232,576
GROSS PROFIT 2,389,983 2,177,171

Administrative expenses 1,462,563 1,111,528
927,420 1,065,643

Other operating income 9,808 23,999
OPERATING PROFIT 4 937,228 1,089,642

Interest receivable and similar
income

-

31
937,228 1,089,673

Interest payable and similar
expenses

5

739,129

579,437
PROFIT BEFORE TAXATION 198,099 510,236

Tax on profit 6 35,539 (361,473 )
PROFIT FOR THE FINANCIAL YEAR 162,560 871,709

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

162,560

871,709

Lomond Plant Limited (Registered number: SC109397)

Statement of Financial Position
31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 20,108,700 20,082,244

CURRENT ASSETS
Stocks 9 210,265 218,115
Debtors 10 4,976,533 5,407,269
Cash at bank 7,191 44,723
5,193,989 5,670,107
CREDITORS
Amounts falling due within one year 11 11,702,827 4,981,665
NET CURRENT (LIABILITIES)/ASSETS (6,508,838 ) 688,442
TOTAL ASSETS LESS CURRENT
LIABILITIES

13,599,862

20,770,686

CREDITORS
Amounts falling due after more than
one year

12

(9,219,824

)

(15,884,234

)

PROVISIONS FOR LIABILITIES 16 (640,152 ) (604,613 )
NET ASSETS 3,739,886 4,281,839

CAPITAL AND RESERVES
Called up share capital 17 23,102 23,102
Retained earnings 18 3,716,784 4,258,737
SHAREHOLDERS' FUNDS 3,739,886 4,281,839

The financial statements were approved by the Board of Directors and authorised for issue on 15 August 2024 and were signed on its behalf by:





Mr R A Easton - Director


Lomond Plant Limited (Registered number: SC109397)

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 23,102 3,631,516 3,654,618

Changes in equity
Dividends - (244,488 ) (244,488 )
Total comprehensive income - 871,709 871,709
Balance at 31 December 2022 23,102 4,258,737 4,281,839

Changes in equity
Dividends - (704,513 ) (704,513 )
Total comprehensive income - 162,560 162,560
Balance at 31 December 2023 23,102 3,716,784 3,739,886

Lomond Plant Limited (Registered number: SC109397)

Statement of Cash Flows
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 3,805,189 3,147,951
Interest paid (33,152 ) (16,510 )
Interest element of hire purchase
payments paid

(705,977

)

(562,927

)
Tax paid - (14,439 )
Net cash from operating activities 3,066,060 2,554,075

Cash flows from investing activities
Purchase of tangible fixed assets (5,796,695 ) (8,214,388 )
Sale of tangible fixed assets 3,010,785 2,462,835
Interest received - 31
Net cash from investing activities (2,785,910 ) (5,751,522 )

Cash flows from financing activities
Loan repayments in year (268,592 ) -
Capital repayments in year (198,529 ) 2,571,017
Amount introduced by directors 246,653 (37,444 )
Amount withdrawn by directors (29,368 ) (234,083 )
Equity dividends paid (704,513 ) (244,488 )
Net cash from financing activities (954,349 ) 2,055,002

Decrease in cash and cash equivalents (674,199 ) (1,142,445 )
Cash and cash equivalents at
beginning of year

2

(275,994

)

866,451

Cash and cash equivalents at end
of year

2

(950,193

)

(275,994

)

Lomond Plant Limited (Registered number: SC109397)

Notes to the Statement of Cash Flows
for the Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.12.23 31.12.22
£    £   
Profit before taxation 198,099 510,236
Depreciation charges 2,506,711 2,924,318
Loss/(profit) on disposal of fixed assets 252,743 (19,622 )
Finance costs 739,129 579,437
Finance income - (31 )
3,696,682 3,994,338
Decrease/(increase) in stocks 7,850 (18,751 )
Decrease/(increase) in trade and other debtors 199,115 (585,404 )
Decrease in trade and other creditors (98,458 ) (242,232 )
Cash generated from operations 3,805,189 3,147,951

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 7,191 44,723
Bank overdrafts (957,384 ) (320,717 )
(950,193 ) (275,994 )
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 44,723 866,451
Bank overdrafts (320,717 ) -
(275,994 ) 866,451


Lomond Plant Limited (Registered number: SC109397)

Notes to the Statement of Cash Flows
for the Year Ended 31 December 2023

3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 44,723 (37,532 ) 7,191
Bank overdrafts (320,717 ) (636,667 ) (957,384 )
(275,994 ) (674,199 ) (950,193 )
Debt
Finance leases (19,359,903 ) 198,529 (19,161,374 )
Debts falling due within 1 year (268,000 ) 18,362 (249,638 )
Debts falling due after 1 year (250,232 ) 250,232 -
(19,878,135 ) 467,123 (19,411,012 )
Total (20,154,129 ) (207,076 ) (20,361,205 )

Lomond Plant Limited (Registered number: SC109397)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Lomond Plant Limited 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.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Critical accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from these estimates. The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements.

Property, plant and equipment
The estimates and assumptions made to determine asset lives require judgements to be made as regards useful lives and residual values. The useful lives and residual values of the company's financial assets are determined by management at the time the asset is acquired and reviewed annually for appropriateness. The lives are based on historical experience with similar assets. Historically changes in useful lives have not resulted in material changes to the company's depreciation charge.

Lease arrangements
The company enters into hire purchase contracts and other lease arrangements for the use of plant and equipment. The classification of such leases as operating or finance leases requires the company to determine, based on evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.

Turnover
Revenue represents the total amount receivable for the hire of plant and provision of goods and services to customers net of returns and VAT. Rental revenue is recognised on a straight-line basis over the period of the rental agreement. Revenue from rental equipment delivery and collection is recognised when delivery or collection has occurred and is reported as rental revenue.

Lomond Plant Limited (Registered number: SC109397)

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

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided on the following basis

Freehold property - Nil to 2% on cost
Plant and machinery - 3 to 7 years straight line
Fixtures and fittings - 25% reducing balance
Computer equipment - 25% reducing balance
Property improvements - 20%/33% on cost and 25% reducing balance


Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The group adds to the carrying amount of an item of fixed assets 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 group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the consolidated statement of income and retained earnings during the period in which they are incurred.

No depreciation is provided on one of the freehold properties as the directors consider that the residual value is such that any depreciation charge would be immaterial.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the consolidated statement of income and retained earnings.

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

Financial instruments
Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors
Short term creditors are measured at transaction price, less any impairment. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Cash and bank balances
Cash and bank balances are measured at the transaction price.


Lomond Plant Limited (Registered number: SC109397)

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

2. ACCOUNTING POLICIES - continued
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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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
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.

Government grants
Grants of a revenue nature are recognised in the consolidated statement of income and retained earnings in the same period as the related expenditure.

3. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 2,561,816 2,859,064
Social security costs 240,330 280,789
Other pension costs 50,749 57,422
2,852,895 3,197,275

Lomond Plant Limited (Registered number: SC109397)

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

Operators 61 69
Management & admin 14 14
75 83

31.12.23 31.12.22
£    £   
Directors' remuneration 97,492 91,367
Directors' pension contributions to money purchase schemes 1,321 1,321

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

Money purchase schemes 1 1

4. OPERATING PROFIT

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

31.12.23 31.12.22
£    £   
Other operating leases 20,886 23,704
Depreciation - owned assets 2,506,711 2,924,318
Loss/(profit) on disposal of fixed assets 252,743 (19,622 )
Auditors' remuneration 14,251 9,120
Auditors' remuneration for non audit work 5,100 3,312

5. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
£    £   
Bank loan interest 33,152 16,510
Hire purchase 705,977 562,927
739,129 579,437

Lomond Plant Limited (Registered number: SC109397)

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

6. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
31.12.23 31.12.22
£    £   
Deferred tax 35,539 (361,473 )
Tax on profit 35,539 (361,473 )

UK corporation tax was charged at 19%) in 2022.

7. DIVIDENDS
31.12.23 31.12.22
£    £   
Final 704,513 244,488

8. TANGIBLE FIXED ASSETS
Improvements
Freehold to Plant and
property property machinery
£    £    £   
COST
At 1 January 2023 1,361,873 34,870 26,877,997
Additions 18,662 - 5,654,534
Disposals - - (7,488,483 )
At 31 December 2023 1,380,535 34,870 25,044,048
DEPRECIATION
At 1 January 2023 255,998 - 8,044,485
Charge for year 64,367 - 2,407,904
Eliminated on disposal - - (4,224,955 )
At 31 December 2023 320,365 - 6,227,434
NET BOOK VALUE
At 31 December 2023 1,060,170 34,870 18,816,614
At 31 December 2022 1,105,875 34,870 18,833,512

Lomond Plant Limited (Registered number: SC109397)

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

8. TANGIBLE FIXED ASSETS - continued

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 January 2023 63,069 97,473 103,852 28,539,134
Additions 3,688 119,811 - 5,796,695
Disposals - - - (7,488,483 )
At 31 December 2023 66,757 217,284 103,852 26,847,346
DEPRECIATION
At 1 January 2023 48,233 15,222 92,952 8,456,890
Charge for year 1,646 27,601 5,193 2,506,711
Eliminated on disposal - - - (4,224,955 )
At 31 December 2023 49,879 42,823 98,145 6,738,646
NET BOOK VALUE
At 31 December 2023 16,878 174,461 5,707 20,108,700
At 31 December 2022 14,836 82,251 10,900 20,082,244

The net book value of assets held under hire purchase agreements are as follows:

Plant & machinery £18,743,928 (2022 - £16,602,140)

9. STOCKS
31.12.23 31.12.22
£    £   
Stocks 210,265 218,115

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 1,696,631 1,972,227
Amounts owed by group undertakings 2,814,437 2,885,908
Other debtors 58,667 29,367
Directors' loan accounts 44,395 276,014
VAT 133,576 -
Prepayments and accrued income 228,827 243,753
4,976,533 5,407,269

Amounts due by group undertakings are repayable on demand. The directors however do not expect to call for repayment of amounts due from group undertakings within the next year.

Lomond Plant Limited (Registered number: SC109397)

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

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans and overdrafts (see note 13)
1,207,022

588,717
Hire purchase contracts (see note 14)
9,941,550

3,725,901
Trade creditors 326,664 371,326
Social security and other taxes 79,987 90,923
VAT - 42,233
Other creditors 3,954 -
Directors' loan accounts - 14,334
Accruals and deferred income 143,650 148,231
11,702,827 4,981,665

The company has granted floating charges to the bank over the assets and undertakings of the company, a charge over the debtor book and a standard security over the premises at 15 Merchiston Industrial Estate, Bankside, Falkirk. There are also cross guarantees between Lomond Holdings Limited and Lomond Plant Limited.

The hire purchase debt is secured over the plant and machinery for which it was provided.

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans (see note 13) - 250,232
Hire purchase contracts (see note 14)
9,219,824

15,634,002
9,219,824 15,884,234

13. LOANS

An analysis of the maturity of loans is given below:

31.12.23 31.12.22
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 957,384 320,717
Bank loans 249,638 268,000
1,207,022 588,717

Amounts falling due between one and two years:
Bank loans - 1-2 years - 250,232

Lomond Plant Limited (Registered number: SC109397)

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

14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

31.12.23 31.12.22
£    £   
Net obligations repayable:
Within one year 9,941,550 3,725,901
Between one and five years 9,219,824 15,634,002
19,161,374 19,359,903

The amount due < 1 year includes £6,666,909 in respect of balloon payments which will be settled by the agreed payment by the vendor on repurchase of the asset.

15. SECURED DEBTS

The following secured debts are included within creditors:

31.12.23 31.12.22
£    £   
Bank loans 249,638 518,232
Hire purchase contracts 19,161,374 19,359,903
19,411,012 19,878,135

The company has granted floating charges to the bank over the assets and undertakings of the company, a charge over the debtor book and a standard security over the premises at 15 Merchiston Industrial Estate, Bankside, Falkirk.
There are also cross guarantees between Lomond Holdings Limited and Lomond Plant Limited.

The hire purchase debt is secured over the plant and machinery for which it was provided.

16. PROVISIONS FOR LIABILITIES
31.12.23 31.12.22
£    £   
Deferred tax 640,152 604,613

Deferred
tax
£   
Balance at 1 January 2023 604,613
Provided during year 35,539
Balance at 31 December 2023 640,152

Lomond Plant Limited (Registered number: SC109397)

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

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
23,102 Ordinary £1 23,102 23,102

18. RESERVES
Retained
earnings
£   

At 1 January 2023 4,258,737
Profit for the year 162,560
Dividends (704,513 )
At 31 December 2023 3,716,784

19. ULTIMATE PARENT COMPANY

Lomond Holdings Ltd is regarded by the directors as being the company's ultimate parent company.

Copies of the group accounts can be obtained from the company's registered office.

20. CAPITAL COMMITMENTS
31.12.23 31.12.22
£    £   
Contracted but not provided for in the
financial statements 2,888,479 975,479

21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 December 2023 and 31 December 2022:

31.12.23 31.12.22
£    £   
Mr R A Easton and Mrs A S McGrillis
Balance outstanding at start of year 276,014 -
Amounts advanced 29,366 276,014
Amounts repaid (260,985 ) -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 44,395 276,014

Lomond Plant Limited (Registered number: SC109397)

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

22. RELATED PARTY DISCLOSURES

During the year, a total of key management personnel compensation of £ 177,692 (2022 - £ 100,861 ) was paid.