Company registration number SC330796 (Scotland)
C.SPRATT MULTIUTILITY LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
C.SPRATT MULTIUTILITY LTD
COMPANY INFORMATION
Directors
Mr C L Spratt
Mr. P A Moffett
Secretary
Mr J Spratt
Company number
SC330796
Registered office
440 Helen Street
Glasgow
Scotland
G51 3HR
Auditor
Martin Aitken & Co Ltd
Chartered Accountants
Caledonia House
89 Seaward Street
Glasgow
United Kingdom
G41 1HJ
Business address
440 Helen Street
Glasgow
Scotland
G51 3HR
C.SPRATT MULTIUTILITY LTD
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
C.SPRATT MULTIUTILITY LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -
The directors present the strategic report for the year ended 30 November 2023.
Business Review
The directors are satisfied with the profit for the year and hope that the company will continue to be profitable in the current year.
Principal Risks and Uncertainties
The principal risk affecting the continuing growth of the company is the availability of the required workforce and the lasting impacts of the Covid-19 pandemic.
Key Performance Indicators
Our Key Performance Indicators in 2024 will be sales and gross profit margin.
Future Developments
The directors' assessment of risk leads them to continue to concentrate on gaining more business which meet the company's required risk profile whilst ensuring that margins are not eroded.
Mr C L Spratt
Director
29 August 2024
C.SPRATT MULTIUTILITY LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 30 November 2023.
Principal activities
The principal activity of the company continued to be that of multi utility contracting.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £2,365,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr C L Spratt
Mr P A Moffett
Financial instruments
The directors do not beleive that the company is exposed to any risks that are sufficient to require the use of financial instruments.
Auditor
Martin Aitken & Co Ltd were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr C L Spratt
Director
29 August 2024
C.SPRATT MULTIUTILITY LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -
The directors are responsible for preparing the annual report 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.
state whether applicable accounting standards have been followed subject to any material departures described and explained in the financial statements
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.
C.SPRATT MULTIUTILITY LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF C.SPRATT MULTIUTILITY LTD
- 4 -
Opinion
We have audited the financial statements of C. Spratt Multiutility Ltd (the 'company') for the period ended 30 November 2023 which comprise the Income Statement, Balance Sheet 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 period 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.
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 Auditor responsibilities for the audit of the financial statements section of my report. We are independent of the company in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK, including the FRC’s Ethical Standard, and wee 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.
The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and my Report of the Auditor 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 I 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 during the audit:
the information given in the Report of the Directors and Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Report of the Directors and Strategic Report has been prepared in accordance with applicable legal requirements.
C.SPRATT MULTIUTILITY LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF C.SPRATT MULTIUTILITY LTD
- 5 -
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 Report of the Directors.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires me to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for my audit have not been received frobranches not visited by me; 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
t and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page one, 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.
C.SPRATT MULTIUTILITY LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF C.SPRATT MULTIUTILITY LTD
- 6 -
Auditor's 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 Auditor 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 can detect irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our knowledge and experience of the car industry.
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company including the Companies Act 2006, FRS 102 and taxation legislation. We also consider those laws and regulations having an indirect impact but nonetheless significant, including GDPR, anti-bribery, employment, environment and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected, and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 2 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In assessing the risk of material misstatement due to fraud in relation to revenue recognition, we:
performed analytical procedures to identify unusual or unexpected relationships;
performed walkthrough tests and substantive sample testing; and
carried out cut off testing to ensure revenue recognised in the correct period.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation.
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of my 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 the Report of the Auditor.
C.SPRATT MULTIUTILITY LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF C.SPRATT MULTIUTILITY LTD
- 7 -
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 Auditor 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.
Duncan Peter MacCaig (Senior Statutory Auditor)
For and on behalf of Martin Aitken & Co Ltd
29 August 2024
Chartered Accountants
Statutory Auditor
Chartered Accountants
Caledonia House
89 Seaward Street
Glasgow
United Kingdom
G41 1HJ
C.SPRATT MULTIUTILITY LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
12,623,086
12,615,828
Cost of sales
(7,695,284)
(7,081,795)
Gross profit
4,927,802
5,534,033
Administrative expenses
(566,158)
(599,406)
Operating profit
4
4,361,644
4,934,627
Interest receivable and similar income
8
9,964
1,529
Interest payable and similar expenses
9
(160)
(13,964)
Profit before taxation
4,371,448
4,922,192
Tax on profit
10
(1,023,001)
(922,113)
Profit for the financial year
3,348,447
4,000,079
Retained earnings brought forward
2,842,582
1,917,503
Dividends
11
(2,365,000)
(3,075,000)
Retained earnings carried forward
3,826,029
2,842,582
The profit and loss account has been prepared on the basis that all operations are continuing operations.
C.SPRATT MULTIUTILITY LTD
BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,135,889
1,386,730
Current assets
Stocks
13
588,920
1,100,000
Debtors
14
1,206,394
1,550,513
Cash at bank and in hand
1,807,544
2,344,712
3,602,858
4,995,225
Creditors: amounts falling due within one year
15
(1,382,970)
(3,197,427)
Net current assets
2,219,888
1,797,798
Total assets less current liabilities
4,355,777
3,184,528
Provisions for liabilities
Deferred tax liability
17
528,547
340,745
(528,547)
(340,745)
Net assets
3,827,230
2,843,783
Capital and reserves
Called up share capital
19
1,201
1,201
Profit and loss reserves
3,826,029
2,842,582
Total equity
3,827,230
2,843,783
The financial statements were approved by the board of directors and authorised for issue on 29 August 2024 and are signed on its behalf by:
Mr C L Spratt
Director
Company Registration No. SC330796
C.SPRATT MULTIUTILITY LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2021
1,201
1,917,503
1,918,704
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
4,000,079
4,000,079
Dividends
11
-
(3,075,000)
(3,075,000)
Balance at 30 November 2022
1,201
2,842,582
2,843,783
Year ended 30 November 2023:
Profit and total comprehensive income for the year
-
3,348,447
3,348,447
Dividends
11
-
(2,365,000)
(2,365,000)
Balance at 30 November 2023
1,201
3,826,029
3,827,230
C.SPRATT MULTIUTILITY LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
3,835,258
5,467,886
Interest paid
(160)
(13,964)
Income taxes paid
(1,099,277)
(127,315)
Net cash inflow from operating activities
2,735,821
5,326,607
Investing activities
Purchase of tangible fixed assets
(1,319,910)
(888,813)
Proceeds from disposal of tangible fixed assets
292,250
175,728
Repayment of loans
109,707
(65,019)
Interest received
9,964
1,529
Net cash used in investing activities
(907,989)
(776,575)
Financing activities
Payment of finance leases obligations
(90,209)
Dividends paid
(2,365,000)
(3,075,000)
Net cash used in financing activities
(2,365,000)
(3,165,209)
Net (decrease)/increase in cash and cash equivalents
(537,168)
1,384,823
Cash and cash equivalents at beginning of year
2,344,712
959,889
Cash and cash equivalents at end of year
1,807,544
2,344,712
C.SPRATT MULTIUTILITY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 12 -
1
Accounting policies
Company information
C.Spratt Multiutility Ltd is a private company limited by shares incorporated in Scotland. The registered office is 440 Helen Street, Glasgow, Scotland, G51 3HR.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
- 20% on cost
Fixtures and fittings
- 20% on cost
Computers
- 20% on cost
Motor vehicles
- 20% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
C.SPRATT MULTIUTILITY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Work in progress is valued at cost. Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
C.SPRATT MULTIUTILITY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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 unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end 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. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial 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, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
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.
C.SPRATT MULTIUTILITY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.
Dividends payable on equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
C.SPRATT MULTIUTILITY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.13
Retirement benefits
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Judgements and key sources of estimation uncertainty
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies.
The directors are satisfied that accounting policies are appropriate and applied consistently. Key sources of accounting estimation have been applied to the valuation of stock and depreciation rates. Each estimate has been considered by the directors, and the basis for the estimate has been deemed to be reasonable.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales
12,623,086
12,615,828
2023
2022
£
£
Other significant revenue
Interest income
9,964
1,529
C.SPRATT MULTIUTILITY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 17 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
417,904
257,080
Profit on disposal of tangible fixed assets
(139,403)
(95,944)
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
19,750
23,650
For other services
All other non-audit services
27,742
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
43
43
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,152,734
2,013,162
Social security costs
241,072
230,743
Pension costs
263,607
251,393
2,657,413
2,495,298
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
167,856
156,860
Company pension contributions to defined contribution schemes
221,412
189,408
389,268
346,268
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).
C.SPRATT MULTIUTILITY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
7
Directors' remuneration
(Continued)
- 18 -
Directors are considered Key Management Personnel.
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
9,964
1,529
9
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
-
3,464
Other interest
160
10,500
160
13,964
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
835,199
789,313
Deferred tax
Origination and reversal of timing differences
187,802
132,800
Total tax charge
1,023,001
922,113
C.SPRATT MULTIUTILITY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
10
Taxation
(Continued)
- 19 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
4,371,448
4,922,192
Expected tax charge based on the standard rate of corporation tax in the UK of 23.01% (2022: 19.00%)
1,005,914
935,216
Tax effect of expenses that are not deductible in determining taxable profit
12,593
3,266
Permanent capital allowances in excess of depreciation
(247,377)
(179,560)
Depreciation on assets not qualifying for tax allowances
96,164
48,845
Deferred tax movement
187,802
132,799
Pension creditor
(17)
(444)
Accounting loss/ (profit) on sale of fixed assets
(32,078)
(18,229)
Donations
220
Taxation charge for the year
1,023,001
922,113
Factors affecting tax charge for the year
The tax charge for the period has been calculated on the taxable profits at the standard rate of corporation tax in the UK of 23.01% (2022 - 19%).
11
Dividends
2023
2022
£
£
Final paid
2,365,000
3,075,000
C.SPRATT MULTIUTILITY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 20 -
12
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 December 2022
1,665,297
5,207
58,538
429,506
2,158,548
Additions
697,660
508
2,282
619,460
1,319,910
Disposals
(346,140)
(175,048)
(521,188)
At 30 November 2023
2,016,817
5,715
60,820
873,918
2,957,270
Depreciation and impairment
At 1 December 2022
497,947
4,853
32,607
236,411
771,818
Depreciation charged in the year
293,110
225
9,122
115,447
417,904
Eliminated in respect of disposals
(213,028)
(155,313)
(368,341)
At 30 November 2023
578,029
5,078
41,729
196,545
821,381
Carrying amount
At 30 November 2023
1,438,788
637
19,091
677,373
2,135,889
At 30 November 2022
1,167,350
354
25,931
193,095
1,386,730
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and equipment
168,412
13
Stocks
2023
2022
£
£
Work in progress
588,920
1,100,000
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
740,214
963,483
Other debtors
371,847
554,388
Prepayments and accrued income
94,333
32,642
1,206,394
1,550,513
C.SPRATT MULTIUTILITY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 21 -
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
467,089
1,608,938
Corporation tax
525,235
789,313
Other taxation and social security
196,881
735,000
Other creditors
152,974
12,102
Accruals and deferred income
40,791
52,074
1,382,970
3,197,427
16
Secured Debts
Bank of Scotland plc holds a floating charge over all the assets of the company.
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
528,547
340,745
2023
Movements in the year:
£
Liability at 1 December 2022
340,745
Charge to profit or loss
187,802
Liability at 30 November 2023
528,547
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
263,607
251,393
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Contributions totalling £1,372 (2022 - £662) were payable to the fund at the reporting date and are
included in creditors.
C.SPRATT MULTIUTILITY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 22 -
19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
1,000
1,000
1,000
1,000
Ordinary B of £1 each
100
100
100
100
Ordinary C of £1 each
100
100
100
100
Ordinary D of £1 each
1
1
1
1
1,201
1,201
1,201
1,201
Each share is entitled to one vote in any circumstance and each share is also entitled pari passu to dividend payments or any other distribution, including distribution arising from a winding up order.
20
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
2023
2022
Amounts due to related parties
£
£
Key management personnel
149,961
-
2023
2022
Amounts due from related parties
£
£
Amounts due from related parties
753
753
Key management personnel
-
109,707
Other information
The above amounts are unsecured, interest free and have no fixed terms of repayment.
C.SPRATT MULTIUTILITY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 23 -
21
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
3,348,447
4,000,079
Adjustments for:
Taxation charged
1,023,001
922,113
Finance costs
160
13,964
Investment income
(9,964)
(1,529)
Gain on disposal of tangible fixed assets
(139,403)
(95,944)
Depreciation and impairment of tangible fixed assets
417,904
257,080
Movements in working capital:
Decrease/(increase) in stocks
511,080
(241,960)
Decrease in debtors
234,412
400,704
(Decrease)/increase in creditors
(1,550,379)
213,379
Cash generated from operations
3,835,258
5,467,886
22
Analysis of changes in net funds
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
2,344,712
(537,168)
1,807,544
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