Silverfin false false 30/11/2023 01/12/2022 30/11/2023 Michael Walker Brown 02/12/2005 28 August 2024 The principal activity of the Company continued to be that of electrical contracting, property development and property rental.

During the year, the final two properties held in stock were capitalised, with one being let and the other being sold.
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Company No: SC293279 (Scotland)

MICHAEL BROWN ELECTRICAL LIMITED

UNAUDITED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2023
PAGES FOR FILING WITH THE REGISTRAR

MICHAEL BROWN ELECTRICAL LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2023

Contents

MICHAEL BROWN ELECTRICAL LIMITED

BALANCE SHEET

AS AT 30 NOVEMBER 2023
MICHAEL BROWN ELECTRICAL LIMITED

BALANCE SHEET (continued)

AS AT 30 NOVEMBER 2023
Note 2023 2022
£ £
Fixed assets
Tangible assets 3 73,102 27,229
Investment property 4 555,000 400,000
Investments 5 233,000 233,000
861,102 660,229
Current assets
Stocks 6 2,750 415,290
Debtors 7 2,389,879 1,801,648
Cash at bank and in hand 876,207 878,469
3,268,836 3,095,407
Creditors: amounts falling due within one year 8 ( 325,813) ( 299,194)
Net current assets 2,943,023 2,796,213
Total assets less current liabilities 3,804,125 3,456,442
Provision for liabilities 9 ( 18,276) ( 6,807)
Net assets 3,785,849 3,449,635
Capital and reserves
Called-up share capital 10 4 4
Profit and loss account 3,785,845 3,449,631
Total shareholder's funds 3,785,849 3,449,635

For the financial year ending 30 November 2023 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The financial statements of Michael Brown Electrical Limited (registered number: SC293279) were approved and authorised for issue by the Director on 28 August 2024. They were signed on its behalf by:

Michael Walker Brown
Director
MICHAEL BROWN ELECTRICAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2023
MICHAEL BROWN ELECTRICAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2023
1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Michael Brown Electrical Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in Scotland. The address of the Company's registered office is Johnstone House, 52-54 Rose Street, Aberdeen, AB10 1HA, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Turnover

Revenue comprises of electrical services, property sale and development, and property rental.

Provision of electrical services are recognised at the fair value of the consideration received for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Sale of properties are recognised at the point at which an irrevocable contract exists and all material conditions have been met.

Rents received are recognised in the period to which they relate, and deposits relating to investment and rental property are recorded in the balance sheet as both assets and liabilities until the end of the tenancy.

Employee benefits

Short term benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Vehicles 25 % reducing balance
Fixtures and fittings 15 % reducing balance
Computer equipment 3 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Impairment of assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Investment property

Investment property is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at each reporting date with changes in fair value recognised in profit or loss. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

The fair value is determined annually by the director, on an open market value for existing use basis.

Fixed asset investments

The company has a 50% share in Cromdale Partners (Union Terrace) LLP which own investment property. The company's share of the partnership profit to the last accounting date on partnership falling on or before 30 November 2023 is included in the financial statements.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Work in progress is stated at the lower cost and estimated selling price less costs to complete and sell. Costs comprise of direct materials and, where applicable, direct labour costs. All work in progress has now been capitalised.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include deposits held at call with banks.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and bank balances, are measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.

Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group members, are recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

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 at transaction price.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

2. Employees

2023 2022
Number Number
Monthly average number of persons employed by the Company during the year, including the director 1 1

3. Tangible assets

Vehicles Fixtures and fittings Computer equipment Total
£ £ £ £
Cost
At 01 December 2022 64,014 39,881 4,879 108,774
Additions 64,841 0 0 64,841
Disposals ( 30,000) 0 0 ( 30,000)
At 30 November 2023 98,855 39,881 4,879 143,615
Accumulated depreciation
At 01 December 2022 45,891 31,405 4,249 81,545
Charge for the financial year 16,329 1,271 233 17,833
Disposals ( 28,865) 0 0 ( 28,865)
At 30 November 2023 33,355 32,676 4,482 70,513
Net book value
At 30 November 2023 65,500 7,205 397 73,102
At 30 November 2022 18,123 8,476 630 27,229

4. Investment property

Investment property
£
Valuation
As at 01 December 2022 400,000
Additions 155,000
As at 30 November 2023 555,000

Historic cost

If the investment properties had been accounted for under the cost accounting rules, the properties would have been measured as follows:

2023 2022
£ £
Historic cost 400,000 400,000

5. Fixed asset investments

Other investments Total
£ £
Cost or valuation before impairment
At 01 December 2022 233,000 233,000
At 30 November 2023 233,000 233,000
Carrying value at 30 November 2023 233,000 233,000
Carrying value at 30 November 2022 233,000 233,000

6. Stocks

2023 2022
£ £
Stocks 2,750 2,750
Work in progress 0 412,540
2,750 415,290

7. Debtors

2023 2022
£ £
Trade debtors 25,090 20,161
Amounts owed by related parties 2,326,500 1,750,000
Corporation tax 832 15,187
Other debtors 37,457 16,300
2,389,879 1,801,648

8. Creditors: amounts falling due within one year

2023 2022
£ £
Amounts owed to related parties 203,617 205,704
Taxation and social security 109,228 80,698
Other creditors 12,968 12,792
325,813 299,194

9. Deferred tax

2023 2022
£ £
At the beginning of financial year ( 6,807) ( 7,596)
(Charged)/credited to the Statement of Income and Retained Earnings ( 11,469) 789
At the end of financial year ( 18,276) ( 6,807)

10. Called-up share capital

2023 2022
£ £
Allotted, called-up and fully-paid
4 Ordinary shares of £ 1.00 each 4 4

11. Related party transactions

Transactions with the entity's director

2023 2022
£ £
Amounts due to the company from the director 2,509 2,001

The above loan is provided interes-free, and has no fixed terms of repayment in place.

Other related party transactions

2023 2022
£ £
Amounts due to limited liability partnerships of which the company is a member (203,617) (205,704)
Amounts due from related parties 2,326,500 1,750,000

The amounts due from related parties are subject to interest, charged at the following rates:

- loans of £1,851,500 are subject to monthly interest charges of 5% per annum
- loans of £425,000 are subject to monthly interest charges of 7.5% per annum
- loans of £50,000 are subject to quarterly interest charges of 7.5% per annum

There are no fixed repayment terms in place.