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REGISTERED NUMBER: SC094717 (Scotland)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 November 2023

for

McDonald Scaffolding (Services) Limited

McDonald Scaffolding (Services) Limited (Registered number: SC094717)






Contents of the Financial Statements
for the Year Ended 30 November 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


McDonald Scaffolding (Services) Limited

Company Information
for the Year Ended 30 November 2023







DIRECTORS: M M McDonald
R M Sutherland


SECRETARY: LC Secretaries Limited


REGISTERED OFFICE: Rosskeen Old Manse
Invergordon
Ross-shire
IV18 0PR


REGISTERED NUMBER: SC094717 (Scotland)


SENIOR STATUTORY AUDITOR: Jonathan Neil Innes FCCA


AUDITORS: Innes & Partners Limited
Chartered Certified Accountants
and Statutory Auditors
9 Ardross Street
Inverness
IV3 5NN


SOLICITORS: Ledingham Chalmers
Kintail House
Beechwood Business Park
Inverness
IV2 3BW

McDonald Scaffolding (Services) Limited (Registered number: SC094717)

Strategic Report
for the Year Ended 30 November 2023

The directors present their strategic report for the year ended 30 November 2023.

REVIEW OF BUSINESS
The principal activities of the company in the year under review were:
providing scaffolding and access solutions to the oil and gas industry, civil construction and shipping and boating sector; specialist transport and road haulage services;
shrinkwrap and containment services;
painting and decorating services through the Ian Dingwall painting division.

The trading results for the period, the financial position of the company and the transfer to reserves are shown in the annexed financial statements.

PRINCIPAL RISKS AND UNCERTAINTIES
The key business risks and uncertainties affecting the company are considered to be:

Competitive risk
Competition is a risk for the company as the environment the company operates in is highly competitive with local and national companies competing for similar business. The directors are comfortable that the company has the resource, diversification of trade and dedication to customer service to mitigate this risk.

Pricing risk
The risk and impact of inflation is affecting pricing. The company will strive to negotiate and source at the best prices possible to protect supply of services, protect margins and mitigate the risk of substantial price increases to its customers.

Credit risk
Credit risk is the risk that one party will cause financial loss to another party by failing to pay a debt as it falls due. The company only trades with customers who it deems are credit worthy. This is monitored on an ongoing basis.

Labour risk
People do business with people. Our staff ensure this business is delivered successfully. A shortage of staff is therefore a key risk to the business. The company will mitigate this risk by investing and retaining its staff.

Health and Safety risk
The health, safety and well-being of our staff and customers is a priority. We have a dedicated health and safety officer who monitors our working environment to ensure we are always working safely and follow government guidance. In some cases, where we perceive there to be a risk, we are implementing practices that are above and beyond what is recommended. Depending on the severity of any cases, there would be business disruption, however, we have a plan of action to follow which should minimise disruption whilst keeping everyone safe.

OVERVIEW OF PERFORMANCE IN YEAR
The company is pleased that since the end of the pandemic that trading has returned to normal levels with slight increase in turnover. They are confident that increased trading activity will continue and will result in further development in trading performance going forward. Turnover has increased from £6.8m to £7.25m. The company's profit for the year after tax was £108,172 compared to £124,647 in the previous year.

FINANCIAL KEY PERFORMANCE INDICATORS
The company is a financially focused business, which monitors performance using a range of measures.

KPI Aim 2023 2022
Gross Profit Maintain and strengthen margin 12.3% 14.6%
Net Profit/(Loss)before tax Deliver sustainable profitability £124k £235k
Capital Expenditure Reinvest retained profits £697k £530k

The directors also review monthly aged debtor reports and monitor cash availability against forecast expenditure levels.


McDonald Scaffolding (Services) Limited (Registered number: SC094717)

Strategic Report
for the Year Ended 30 November 2023

FUTURE DEVELOPMENTS
The company will continue to support and develop it's current client base and build on their existing relationships, along with seeking to expand it's services to potential new customers.

ON BEHALF OF THE BOARD:





M M McDonald - Director


20 August 2024

McDonald Scaffolding (Services) Limited (Registered number: SC094717)

Report of the Directors
for the Year Ended 30 November 2023

The directors present their report with the financial statements of the company for the year ended 30 November 2023.

DIVIDENDS
The total distribution of dividends for the year ended 30 November 2023 will be £76,667 (2022: £173,000).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 December 2022 to the date of this report.

M M McDonald
R M Sutherland

GOING CONCERN
These financial statements have been prepared on a going concern basis. The directors are required to state whether it is appropriate to adopt the going concern basis of accounting in preparing the financial statements, and to identify any material uncertainties as to the Company's ability to continue as a going concern over a period of at least 12 months from the date of approval of the financial statements. The period of management's going concern assessment is the period to 30 November 2024.

The restrictions imposed since the arrival of the Coronavirus pandemic has had a major impact on the economy and the sectors in which the company operates and was particularly pronounced in the oil and gas sector where expected scaffolding contracts have been delayed or cancelled. The results for the current year show an improvement with increased turnover and now once again profitable. Turnover has increased by 5% from £6.8m to £7.25m and the profit after tax has was £108k from £124k in the previous year.

The company's historical trading results have created substantial reserves and the cash and net asset position remain strong. The company held bank balances of £1.09m and net assets of £4.4m at 30 November 2023.

The Company has reviewed forecasts and projections for the going concern assessment period to November 2024. Based on the anticipated demand for services, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the period to 30 November 2024. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen in accordance with s.414C(11) of the Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of review of the business, future developments and Key Performance Indicators.

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.


McDonald Scaffolding (Services) Limited (Registered number: SC094717)

Report of the Directors
for the Year Ended 30 November 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





M M McDonald - Director


20 August 2024

Report of the Independent Auditors to the Members of
McDonald Scaffolding (Services) Limited

Opinion
We have audited the financial statements of McDonald Scaffolding (Services) Limited (the 'company') for the year ended 30 November 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 30 November 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
McDonald Scaffolding (Services) Limited


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 pages four and five, 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
McDonald Scaffolding (Services) 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:

We gained and understanding of the legal and regulatory framework applicable to the Company and the industry in which it operated and considered the risk of acts by the company which were contrary to applicable laws and regulations, including fraud. These included but were not limited to the Companies Act 2006.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentation or through collusion.

We focussed on laws and regulations that could give rise to a material misstatement in the company's financial statement. Our tests included, but were not limited to:
- Agreement of the financial statement disclosures to underlying supporting documentation;
- Enquiries of the directors;
- Review of legal correspondence or invoices;
- Obtaining an understanding of the control environment in monitoring compliance with laws and regulations.

There are inherent limitations in and audit of financial statements and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the director that represented a risk of material misstatement due to fraud.

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.




Jonathan Neil Innes FCCA (Senior Statutory Auditor)
for and on behalf of Innes & Partners Limited
Chartered Certified Accountants
and Statutory Auditors
9 Ardross Street
Inverness
IV3 5NN

20 August 2024

McDonald Scaffolding (Services) Limited (Registered number: SC094717)

Statement of Comprehensive Income
for the Year Ended 30 November 2023

2023 2022
Notes £    £   

TURNOVER 3 7,250,068 6,892,131

Cost of sales 6,358,937 5,883,534
GROSS PROFIT 891,131 1,008,597

Administrative expenses 814,387 822,547
76,744 186,050

Other operating income 32,500 32,305
OPERATING PROFIT 5 109,244 218,355

Interest receivable and similar income 28,796 27,050
138,040 245,405

Interest payable and similar expenses 6 13,669 10,356
PROFIT BEFORE TAXATION 124,371 235,049

Tax on profit 7 16,199 110,402
PROFIT FOR THE FINANCIAL YEAR 108,172 124,647

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

108,172

124,647

McDonald Scaffolding (Services) Limited (Registered number: SC094717)

Balance Sheet
30 November 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 2,501,391 2,251,459

CURRENT ASSETS
Stocks 10 35,676 44,722
Debtors 11 1,906,343 2,278,992
Cash at bank and in hand 1,090,542 954,411
3,032,561 3,278,125
CREDITORS
Amounts falling due within one year 12 817,276 849,394
NET CURRENT ASSETS 2,215,285 2,428,731
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,716,676

4,680,190

CREDITORS
Amounts falling due after more than one
year

13

(65,943

)

(77,161

)

PROVISIONS FOR LIABILITIES 16 (298,987 ) (282,788 )
NET ASSETS 4,351,746 4,320,241

CAPITAL AND RESERVES
Called up share capital 17 58,336 58,336
Retained earnings 18 4,293,410 4,261,905
SHAREHOLDERS' FUNDS 4,351,746 4,320,241

The financial statements were approved by the Board of Directors and authorised for issue on 20 August 2024 and were signed on its behalf by:





M M McDonald - Director


McDonald Scaffolding (Services) Limited (Registered number: SC094717)

Statement of Changes in Equity
for the Year Ended 30 November 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 December 2021 58,336 4,310,258 4,368,594

Changes in equity
Dividends - (173,000 ) (173,000 )
Total comprehensive income - 124,647 124,647
Balance at 30 November 2022 58,336 4,261,905 4,320,241

Changes in equity
Dividends - (76,667 ) (76,667 )
Total comprehensive income - 108,172 108,172
Balance at 30 November 2023 58,336 4,293,410 4,351,746

McDonald Scaffolding (Services) Limited (Registered number: SC094717)

Notes to the Financial Statements
for the Year Ended 30 November 2023

1. STATUTORY INFORMATION

McDonald Scaffolding (Services) 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.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Significant judgements and estimates
In the application of the society's accounting policies, the management committee are required to make judgement, estimates and assumptions that affect the amounts reported for assets, liabilities, income and expenditure.

The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods should it affect future periods.

The estimates and assumptions which carry a higher degree of risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Useful economic lives of tangible fixed assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. They are amended when necessary to reflect current estimates, future investment, economic utilisation and the physical condition of the assets. See note 9 for details of the values of tangible fixed assets.

Turnover
Turnover represents sales of goods, excluding value added tax, and includes the erection and hire of scaffolding, painting and decorating services and haulage. Turnover is recognised when the risks and rewards associated with ownership have transferred to the purchaser.

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.
Improvements to property - 5% on reducing balance
Plant and machinery - varying rates on cost & reducing balance
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance

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

McDonald Scaffolding (Services) Limited (Registered number: SC094717)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets
The company assesses the financial assets for evidence of impairment at each balance sheet date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Classification of fìfinancial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from group companies are classified as debt and are initially recognised at transaction price. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

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.


McDonald Scaffolding (Services) Limited (Registered number: SC094717)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

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

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

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

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

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

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.

Going concern
These financial statements have been prepared on a going concern basis. The directors are required to state whether it is appropriate to adopt the going concern basis of accounting in preparing the financial statements, and to identify any material uncertainties as to the Company's ability to continue as a going concern over a period of at least 12 months from the date of approval of the financial statements. The period of management's going concern assessment is the period to 30 November 2024.

The restrictions imposed since the arrival of the Coronavirus pandemic has had a major impact on the economy and the sectors in which the company operates and was particularly pronounced in the oil and gas sector where expected scaffolding contracts have been delayed or cancelled. The results for the current year show an improvement with increased turnover and now once again profitable. Turnover has increased by 5% from £6.8m to £7.25m and the profit after tax has was £108k from a loss of £124k in the previous year.

The company's historical trading results have created substantial reserves and the cash and net asset position remain strong. The company held bank balances of £1.09m and net assets of £4.4m at 30 November 2023.

The Company has reviewed forecasts and projections for the going concern assessment period to November 2024. Based on the anticipated demand for services, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the period to 30 November 2024. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

McDonald Scaffolding (Services) Limited (Registered number: SC094717)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

3. TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Erection & hire of scaffolding 5,310,565 4,720,218
Painting & decorating services 352,344 451,212
Haulage 1,587,159 1,720,701
7,250,068 6,892,131

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 7,250,068 6,892,131
7,250,068 6,892,131

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 4,126,776 3,668,292
Social security costs 427,528 488,399
Other pension costs 68,030 115,066
4,622,334 4,271,757

The average number of employees during the year was as follows:
2023 2022

Production 75 74
Management and administration 11 9
86 83

2023 2022
£    £   
Directors' remuneration 126,850 142,753
Directors' pension contributions to money purchase schemes 1,200 1,200

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

Money purchase schemes 1 1

McDonald Scaffolding (Services) Limited (Registered number: SC094717)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

5. OPERATING PROFIT

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

2023 2022
£    £   
Depreciation - owned assets 315,424 293,211
Depreciation - assets on hire purchase contracts 74,509 72,415
Profit on disposal of fixed assets (7,771 ) (3,277 )
Auditors' remuneration 18,633 21,775

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Interest on group loans 7,014 5,980
Hire purchase 6,655 4,376
13,669 10,356

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Deferred tax 16,199 110,402
Tax on profit 16,199 110,402

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:

2023 2022
£    £   
Profit before tax 124,371 235,049
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

23,630

44,659

Effects of:
Adjustments to tax charge in respect of previous periods - (20,335 )
credits
for current year

Depreciation on property 2,556 2,688
Group relief 3,343 17,236
Deferred tax rate change 4,010 66,154
Super deductions (17,340 ) -
Total tax charge 16,199 110,402

McDonald Scaffolding (Services) Limited (Registered number: SC094717)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of 1 each
Interim 76,667 173,000

9. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 December 2022 372,903 5,099,468 75,774 1,588,270 7,136,415
Additions 2,850 151,006 6,665 536,243 696,764
Disposals - - - (166,926 ) (166,926 )
Reclassification/transfer - (17,125 ) - 17,125 -
At 30 November 2023 375,753 5,233,349 82,439 1,974,712 7,666,253
DEPRECIATION
At 1 December 2022 104,065 3,932,556 64,333 784,002 4,884,956
Charge for year 13,454 125,505 3,732 247,242 389,933
Eliminated on disposal - - - (110,027 ) (110,027 )
Reclassification/transfer - (16,528 ) - 16,528 -
At 30 November 2023 117,519 4,041,533 68,065 937,745 5,164,862
NET BOOK VALUE
At 30 November 2023 258,234 1,191,816 14,374 1,036,967 2,501,391
At 30 November 2022 268,838 1,166,912 11,441 804,268 2,251,459

The net book value of tangible fixed assets includes £ 329,635 (2022 - £ 272,557 ) in respect of assets held under hire purchase contracts.

10. STOCKS
2023 2022
£    £   
Raw materials and consumables 35,676 44,722

11. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 1,251,114 1,623,757
Amounts owed by group undertakings 347,438 496,705
Other debtors 5,250 20,032
Directors' loan accounts 102,778 -
Prepayments and accrued income 189,763 138,498
1,896,343 2,278,992

McDonald Scaffolding (Services) Limited (Registered number: SC094717)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

11. DEBTORS - continued
2023 2022
£    £   
Amounts falling due after more than one year:
Other debtors 10,000 -

Aggregate amounts 1,906,343 2,278,992

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 14) 91,209 75,035
Trade creditors 232,995 147,580
Amounts owed to group undertakings 140,496 121,982
Social security and other taxes 111,688 97,976
VAT 102,010 224,095
Other creditors 66,827 157,124
Directors' loan accounts - 3,602
Accruals and deferred income 72,051 22,000
817,276 849,394

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Hire purchase contracts (see note 14) 65,943 77,161

14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2023 2022
£    £   
Net obligations repayable:
Within one year 91,209 75,035
Between one and five years 65,943 77,161
157,152 152,196

15. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Hire purchase contracts 157,152 152,196

16. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 298,987 282,788

McDonald Scaffolding (Services) Limited (Registered number: SC094717)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

16. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 December 2022 282,788
Charge to Statement of Comprehensive Income during year 16,199
Balance at 30 November 2023 298,987

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
58,336 Ordinary 1 58,336 58,336

18. RESERVES
Retained
earnings
£   

At 1 December 2022 4,261,905
Profit for the year 108,172
Dividends (76,667 )
At 30 November 2023 4,293,410

19. ULTIMATE PARENT COMPANY

Rosskeen Holdings Limited is regarded by the directors as being the company's ultimate parent company.

Rosskeen Holdings Limited is a private limited company incorporated in Scotland, copies of the financial statements of Rosskeen Holdings Limited may be obtained from the company's registered office at Rosskeen Old Manse, Invergordon, Ross-shire, IV18 0PR.

20. BOND AND FLOATING CHARGES

The following charges were held as at 30 November 2023:
- a bond and floating charge is held by Lloyds TSB Commercial Finance Limited over the assets of the company.
- a floating charge is held by Lloyds TSB Commercial Finance Limited trading as Alex Lawrie Scotland over the assets of the company.
- a bond and floating charge is held by The Governor and the Company of the Bank of Scotland over the assets of the company.

The bond and floating charge held by Lloyds TSB Commercial Finance Limited over the assets of the company was satisfied on 21 December 2023.

21. CAPITAL COMMITMENTS
2023 2022
£    £   
Contracted but not provided for in the
financial statements - 120,600

McDonald Scaffolding (Services) Limited (Registered number: SC094717)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

22. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 30 November 2023 and 30 November 2022:

2023 2022
£    £   
M M McDonald
Balance outstanding at start of year (3,602 ) (2,031 )
Amounts advanced 101,505 103,429
Amounts repaid - (105,000 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 97,903 (3,602 )

R M Sutherland
Balance outstanding at start of year - -
Amounts advanced 4,875 -
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 4,875 -

Included within debtors (2022: creditors) are interest-free, unsecured loans of £97,903 (2022: £3,602 credit) from M McDonald, a director and £4,875 (2022: £nil) from R Sutherland, a director, which were repaid in March 2024.

During the year rent of £15,000 (2022: £15,000) was paid by the company to M McDonald, a director.

23. RELATED PARTY DISCLOSURES

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.

The company is a wholly owned subsidiary of Rosskeen Holdings Limited ('Rosskeen').

Dividends totalling £76,667 (2022: £173,000) were paid to Rosskeen during the year.

Key management personnel are considered to be the directors.

24. ULTIMATE CONTROLLING PARTY

The company is a wholly owned subsidiary of Rosskeen Holdings Limited. Rosskeen Holdings Limited is wholly owned by M Mcdonald, a director of Mcdonald Scaffolding Services Limited. Rosskeen Holdings Limited changed its name from Rosskeen Scaffolding Limited on 15 May 2015.