Company registration number SC065227 (Scotland)
MOFFAT & WILLIAMSON LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
MOFFAT & WILLIAMSON LIMITED
COMPANY INFORMATION
Directors
Mr George Devine
Mrs Lesley Devine
Mr Fraser Pearce
Mrs Sharon Smith
Mr Lindsay Devine
Company number
SC065227
Registered office
The Old Railway Yard
St Fort
Newport On Tay
DD6 8RG
Auditor
Findlays Audit Limited
11 Dudhope Terrace
Dundee
DD3 6TS
MOFFAT & WILLIAMSON LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 22
MOFFAT & WILLIAMSON LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -

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

Review of the business

The accounts for the year to 30 November 2023 show a decrease in turnover due primarily to the reduction in the COVID Support Payments. Contract Hire Revenues remain relatively low and the majority of the trade has arisen from the school and service routes.

Wages and Salaries are high relative to turnover as the Company has invested in the team to allow for increasing contract numbers in the year to 30 November 2024. There has also been considerable expense undertaken to convert buses to be Euro 6 emission standards and compliant with the new LEZ in Dundee, and also converting service buses to a 70 seat configuration. The vast majority of this expenditure is now complete.

This has resulted in a loss of £255,127 for the year. The directors knew that the two years ended 30 November 2022 and 30 November 2023 would be difficult given the price pressures experienced and the fact that contracts had been extended without full tenders and at only minimal price changes. They are content to have been able to report a very small profit for these two years combined.

Principal risks and uncertainties

Most of the tenders for services have now been awarded and this gives some certainty for the coming 3 to 4 years. There are some more tenders for existing and new routes coming up which the directors will carefully consider in terms of capacity and value as always.

The main risk for the business is increasing wage and fuel costs. The directors are content that all potential mitigations are already built into the business to best cope with these.

Key performance indicators

The main Key performance indicators used in the business are those of Gross Margin excluding depreciation, turnover and cash flow. The company has a good handle on all of these, and the November 2023 outcome is by no way unexpected.

Other information and explanations

The company continues to seek opportunities to increase turnover and profitability. The company continues to improve and develop its relationships with all it’s customers and in particular its relationships within the local authorities, and the services it provides to them.

Successful tender applications have been awarded commencing in August 2024 for a further three to four year term. There are several other tender opportunities which will be assessed as to whether these fit with the Companies capacity and whether they offer viable additions to the companies existing business.

On behalf of the board

Mr George Devine
Director
30 August 2024
MOFFAT & WILLIAMSON LIMITED
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.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final 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 George Devine
Mrs Lesley Devine
Mr Fraser Pearce
Mrs Sharon Smith
Mr Lindsay Devine
Auditor

In accordance with the company's articles, a resolution proposing that Findlays Audit Limited be reappointed as auditor of the company 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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr George Devine
Director
30 August 2024
MOFFAT & WILLIAMSON LIMITED
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:

 

 

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.

MOFFAT & WILLIAMSON LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MOFFAT & WILLIAMSON LIMITED
- 4 -
Opinion

We have audited the financial statements of Moffat & Williamson Limited (the 'company') for the year ended 30 November 2023 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

MOFFAT & WILLIAMSON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MOFFAT & WILLIAMSON LIMITED
- 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 strategic report and the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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.

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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 mis-statements in respect of irregularities, including fraud and non-compliance with laws and regulations is detailed below

 

The audit team has appropriate skills and expertise required and through discussions with management and Directors knowledge of the sector to ensure any non compliance is recognised and all necessary disclosures are made. the controls in place help the charity mitigate the risk of fraud and also aids them in highlighting any instances of fraud that might have occurred.

 

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

MOFFAT & WILLIAMSON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MOFFAT & WILLIAMSON LIMITED
- 6 -

Because of the field in which the client operates we identified the following areas as those most likely to have a material impact on the financial statements:

 

Direct impact on financial statements:

 

Indirect impact on financial statements:

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report 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 member, for our audit work, for this report, or for the opinions we have formed.

Alexander Squires, C.A. (Senior Statutory Auditor)
For and on behalf of Findlays Audit Limited
Chartered Accountants
Statutory Auditor
Dundee
DD3 6TS
30 August 2024
Findlays is eligible for appointment as auditor of the company by virtue of its eligibility for appointment as auditor of a company under s 1212 of the Companies Act 2006
MOFFAT & WILLIAMSON LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
6,884,623
7,842,289
Cost of sales
(6,445,351)
(6,726,895)
Gross profit
439,272
1,115,394
Distribution costs
(138,621)
(197,680)
Administrative expenses
(651,830)
(620,659)
Other operating income
133,000
38,000
Operating (loss)/profit
4
(218,179)
335,055
Interest receivable and similar income
8
11,802
-
0
Interest payable and similar expenses
9
(48,750)
(50,987)
(Loss)/profit before taxation
(255,127)
284,068
Tax on (loss)/profit
10
39,745
34,140
(Loss)/profit for the financial year
(215,382)
318,208
Retained earnings brought forward
4,187,547
3,905,339
Dividends
11
-
0
(36,000)
Retained earnings carried forward
3,972,165
4,187,547

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 10 to 22 form part of these financial statements.

MOFFAT & WILLIAMSON LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,318,685
1,913,034
Current assets
Stocks
13
156,471
141,584
Debtors
14
3,005,221
2,643,797
Cash at bank and in hand
331,123
1,435,300
3,492,815
4,220,681
Creditors: amounts falling due within one year
15
(923,399)
(1,155,447)
Net current assets
2,569,416
3,065,234
Total assets less current liabilities
4,888,101
4,978,268
Creditors: amounts falling due after more than one year
16
(498,533)
(485,639)
Provisions for liabilities
Deferred tax liability
18
282,215
169,894
(282,215)
(169,894)
Net assets
4,107,353
4,322,735
Capital and reserves
Called up share capital
20
135,188
135,188
Profit and loss reserves
3,972,165
4,187,547
Total equity
4,107,353
4,322,735

The notes on pages 10 to 22 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 30 August 2024 and are signed on its behalf by:
Mr George Devine
Director
Company registration number SC065227 (Scotland)
MOFFAT & WILLIAMSON LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 9 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
25
(39,095)
1,069,242
Interest paid
(48,750)
(50,987)
Income taxes paid
(134,905)
(241,476)
Net cash (outflow)/inflow from operating activities
(222,750)
776,779
Investing activities
Purchase of tangible fixed assets
(1,096,676)
(292,437)
Proceeds from disposal of tangible fixed assets
278,000
193,172
Interest received
11,802
-
0
Net cash used in investing activities
(806,874)
(99,265)
Financing activities
Repayment of bank loans
(23,526)
(22,337)
Payment of finance leases obligations
(120,434)
(469,959)
Dividends paid
-
0
(36,000)
Net cash used in financing activities
(143,960)
(528,296)
Net (decrease)/increase in cash and cash equivalents
(1,173,584)
149,218
Cash and cash equivalents at beginning of year
1,391,874
1,242,656
Cash and cash equivalents at end of year
218,290
1,391,874
Relating to:
Cash at bank and in hand
331,123
1,435,300
Bank overdrafts included in creditors payable within one year
(112,833)
(43,426)

The notes on pages 10 to 22 form part of these financial statements.

MOFFAT & WILLIAMSON LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 10 -
1
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. 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 underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Depreciation

Tangible fixed assets are depreciated over a period to reflect their estimated useful lives. The applicability of the assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence.

 

Fixed assets are also assessed as to whether there are indicators of impairment. This assessment involves consideration of the economic viability of the purpose for which the asset is used.

Deferred Tax

Deferred tax is calculated based on the difference between capital allowances and net book value of assets.

2
Accounting policies
Company information

Moffat & Williamson Limited is a private company limited by shares incorporated in Scotland. The registered office is The Old Railway Yard, St Fort, Newport On Tay, DD6 8RG.

2.1
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.

2.2
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.

MOFFAT & WILLIAMSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
2
Accounting policies
(Continued)
- 11 -
2.3
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

2.4
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:

Freehold land and buildings
40 years straight line
Plant and equipment
15% reducing balance
Fixtures and fittings
15-33% reducing balance
Motor vehicles
25% reducing balance
Buses & Coaches
Between 5-20% reducing balance

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.

2.5
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.

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.

MOFFAT & WILLIAMSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
2
Accounting policies
(Continued)
- 12 -

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.

2.6
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.

2.7
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.

2.8
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.

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.

MOFFAT & WILLIAMSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
2
Accounting policies
(Continued)
- 13 -
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.

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.

MOFFAT & WILLIAMSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
2
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities

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

2.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

2.10
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.

2.11
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.

 

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

2.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

MOFFAT & WILLIAMSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
2
Accounting policies
(Continued)
- 15 -
2.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

3
Turnover and other revenue
2023
2022
£
£
Other revenue
Interest income
11,802
-
Grants received
133,000
38,000
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Government grants
(133,000)
(38,000)
Fees payable to the company's auditor for the audit of the company's financial statements
13,013
10,839
Depreciation of owned tangible fixed assets
403,631
968,869
Loss/(profit) on disposal of tangible fixed assets
9,394
(82,655)
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
13,013
10,839
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
126
129
MOFFAT & WILLIAMSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
6
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,437,995
2,969,836
Social security costs
328,347
280,685
Pension costs
64,224
60,698
3,830,566
3,311,219
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
183,979
202,692
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
n/a
70,990

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest receivable from group companies
11,802
-
0
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
11,802
-
0
MOFFAT & WILLIAMSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 17 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
8,451
9,640
Other finance costs:
Interest on finance leases and hire purchase contracts
40,299
41,347
48,750
50,987
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
152,066
Adjustments in respect of prior periods
(152,066)
(2,679)
Total current tax
(152,066)
149,387
Deferred tax
Origination and reversal of timing differences
112,321
(183,527)
Total tax credit
(39,745)
(34,140)

The actual credit for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(255,127)
284,068
Expected tax charge based on the standard rate of corporation tax in the UK of 0% (2022: 19.00%)
-
0
53,973
Tax effect of expenses that are not deductible in determining taxable profit
-
0
756
Adjustments in respect of prior years
(152,066)
(2,679)
Permanent capital allowances in excess of depreciation
-
0
97,337
Other non-reversing timing differences
112,321
(183,527)
Taxation credit for the year
(39,745)
(34,140)
11
Dividends
2023
2022
£
£
Final paid
-
0
36,000
MOFFAT & WILLIAMSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 18 -
12
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Buses & Coaches
Total
£
£
£
£
£
£
Cost
At 1 December 2022
621,280
266,446
67,402
354,635
7,445,232
8,754,995
Additions
56,505
12,000
810
42,245
985,116
1,096,676
Disposals
-
0
-
0
-
0
(66,850)
(1,480,927)
(1,547,777)
At 30 November 2023
677,785
278,446
68,212
330,030
6,949,421
8,303,894
Depreciation and impairment
At 1 December 2022
326,785
260,138
47,477
239,473
5,968,088
6,841,961
Depreciation charged in the year
16,575
16,245
12,793
47,438
310,580
403,631
Eliminated in respect of disposals
-
0
-
0
-
0
(33,425)
(1,226,958)
(1,260,383)
At 30 November 2023
343,360
276,383
60,270
253,486
5,051,710
5,985,209
Carrying amount
At 30 November 2023
334,425
2,063
7,942
76,544
1,897,711
2,318,685
At 30 November 2022
294,495
6,308
19,925
115,162
1,477,144
1,913,034
13
Stocks
2023
2022
£
£
Finished goods and goods for resale
156,471
141,584
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
115,044
218,087
Corporation tax recoverable
134,905
-
0
Amounts owed by group undertakings
1,914,910
1,912,610
Other debtors
417,624
145,541
Prepayments and accrued income
422,738
367,559
3,005,221
2,643,797
MOFFAT & WILLIAMSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 19 -
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
136,359
65,764
Obligations under finance leases
190,107
348,149
Trade creditors
348,286
287,616
Corporation tax
-
0
152,066
Other taxation and social security
77,194
66,963
Other creditors
5,120
116,022
Accruals and deferred income
166,333
118,867
923,399
1,155,447
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
124,080
148,794
Obligations under finance leases
374,453
336,845
498,533
485,639
Amounts included above which fall due after five years are as follows:
Payable by instalments
80,695
59,445
17
Loans and overdrafts
2023
2022
£
£
Bank loans
147,606
171,132
Bank overdrafts
112,833
43,426
260,439
214,558
Payable within one year
136,359
65,764
Payable after one year
124,080
148,794

The long-term loans are secured by fixed charges over all assets of the company

MOFFAT & WILLIAMSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 20 -
18
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
282,215
169,894
2023
Movements in the year:
£
Liability at 1 December 2022
169,894
Charge to profit or loss
112,321
Liability at 30 November 2023
282,215

The deferred tax liability set out above is expected to reverse within the next few years and relates to accelerated capital allowances that are expected to mature within the same period.

19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
64,224
60,698

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 totally £nil (2022 - £nil) were payable to the fund at the balance sheet date.

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
135,188
135,188
135,188
135,188
MOFFAT & WILLIAMSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 21 -
21
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
2,516
-
0
Between two and five years
3,145
-
0
5,661
-
0
22
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
513,845
-
23
Ultimate controlling party

The ultimate parent of the company is Devine-Devine Transport Limited whose registered office is 11 Dudhope Terrace, Dundee. The ultimate controlling party is George Devine who is also a director in Moffat & Williamson Limited.

24
Analysis of changes in net funds/(debt)
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
1,435,300
(1,104,177)
331,123
Bank overdrafts
(43,426)
(69,407)
(112,833)
1,391,874
(1,173,584)
218,290
Borrowings excluding overdrafts
(171,132)
23,526
(147,606)
Obligations under finance leases
(684,994)
120,434
(564,560)
535,748
(1,029,624)
(493,876)
MOFFAT & WILLIAMSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 22 -
25
Cash (absorbed by)/generated from operations
2023
2022
£
£
(Loss)/profit for the year after tax
(215,382)
318,208
Adjustments for:
Taxation credited
(39,745)
(34,140)
Finance costs
48,750
50,987
Investment income
(11,802)
-
0
Loss/(gain) on disposal of tangible fixed assets
9,394
(82,655)
Depreciation and impairment of tangible fixed assets
403,631
968,869
Movements in working capital:
(Increase)/decrease in stocks
(14,888)
2,132
Increase in debtors
(226,519)
(254,690)
Increase in creditors
7,466
100,531
Cash (absorbed by)/generated from operations
(39,095)
1,069,242
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