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REGISTERED NUMBER: 05072615 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2024

for

R & W Scott Ltd

R & W Scott Ltd (Registered number: 05072615)






Contents of the Financial Statements
for the Year Ended 31 March 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Notes to the Financial Statements 14


R & W Scott Ltd

Company Information
for the Year Ended 31 March 2024







DIRECTORS: S J Currie
J C Easton
M J Hewitt





REGISTERED OFFICE: Aberdein Considine
30 Cloth Market
Newcastle Upon Tyne
NE1 1EE





REGISTERED NUMBER: 05072615 (England and Wales)





AUDITORS: Sharles Audit Limited
Statutory Auditors
29 Brandon Street
Hamilton
ML3 6DA

R & W Scott Ltd (Registered number: 05072615)

Strategic Report
for the Year Ended 31 March 2024

The directors present their strategic report for the year ended 31 March 2024.

REVIEW OF BUSINESS
R&W Scott manufactures and sells chocolate coatings, confectionary fillings, specialist soft icings, sauces, jams and dry powder blends for the industrial, retail, wholesale and foodservice markets.

RESULTS
R&W Scott continued its growth trend, with improved performance, despite the challenges and continued difficulties of commodity market pricing and general inflation increase.

The business ended the year with its highest historical turnover figure as sales increased 7% year on year. This was supported by existing growth, new business revenue and increased pricing.

The increase in revenue has helped to offset the continued rise in input prices, predominantly in raw materials, heat, light & power, and distribution. The business is a commodity driven business which has seen unprecedented increases in sugar throughout the course of the year, along with other raw materials. These pricing pressures have been felt down to end user level with the cost-of-living crisis well documented across the UK's media.

Despite these challenges, the business has managed to mitigate the impact of these external and internal factors, minimising, the impact on margin, customer service and quality. It has increased profitability, competitiveness and maintained service levels to our long-standing customers whist being flexible enough to support new business growth, one of our key USP's.

The R&W Scott business continued to drive efficiencies in overhead control, It also continued to invest in plant and machinery, and commissioned a 3rd drop line to support existing and future growth. The financial performance has allowed the business to continue to improve its short-term debt position, whilst enforcing it's standing as a sustainable and profitable business.

GOING CONCERN
The directors have assessed the group as having sufficient resources to meet the expected ongoing costs of the business for a period of at least 12 months from the date of signing the financial statements. As a result they have continued to adopt the going concern basis when preparing the financial statements.

FUTURE DEVELOPMENTS
This business will continue to develop a range of new products based on both customer requests and market trends. These include but are not limited to more bespoke added value confectionary fillings and speciality jam recipes as well as broadening our no added sugar protein enriched variants of existing products.

This business is expected to continue to benefit from strong, long standing customer relationships, whilst retaining the support of key suppliers. It expects to see its cash position increase and net debt reduce, continuing to improve the long-term profitability/sustainability of the business.

KEY PERFORMANCE INDICATORS
All key performance indicators both financial and non-financial are covered in the financial accounts. The main items being Turnover £18,227,795 (2023: £17,096,028), Gross Profit 30.74% (2023:26.79%) and Profit before tax £1,395,629 (2023: Profit of £749,066).


R & W Scott Ltd (Registered number: 05072615)

Strategic Report
for the Year Ended 31 March 2024

PRINCIPAL RISKS AND UNCERTAINTIES
The directors have outlined their perception on particular risks and uncertainties facing the company below. These risks and uncertainties could cause the actual results to vary from those experienced previously or described in forward looking statements within the annual report.

a) Key Customers
The business has a number of key customers, some of whom operate on contracts which are subject to annual renewals. As a consequence, the retention of particular customers may change on a year to year basis.

b) Raw Materials
Raw materials used by the business are subject to price fluctuations. Typically, these items are purchased on forward contracts, providing cover for some months ahead generally and in particular to lock in commitments with sales contracts on a "back to back" basis.

c) Food Safety
As a reputable food trader we enforce our technical policies and procedures in relation to the production and storage of our products. The business recognises the importance and currently holds an A+ grade unannounced BRC accreditation.

d) Health & Safety
The business could be adversely impacted if it failed to manage the safety of its facility effectively.

The directors believe that the safety of the employees, contractors and suppliers is fundamentally important. A business compliance program is in place ensuring that all legal obligations are adhered to. Regular third-party auditing takes place to maintain a continuous improvement in standards.

e) Changing Consumer Trends
The business could be impacted by changing consumer trends, with potential risk areas including concerns over obesity and healthier eating. The business's proactive development and technical teams are well positioned to help mitigate these risks.

EMPLOYEE INVOLVEMENT
The company is committed to involve all employees in the performance and development of the company. Employees are encouraged to discuss with management matters of interest to the employee and subjects affecting day to day operations of the company.

It is the company's policy to give full consideration to suitable applications for employment by disabled persons.

Disabled employees are eligible to participate in all career development opportunities available to staff. Opportunities also exist for employees of the company who became disabled to continue in employment or to be trained for other positions in the company.

GOING CONCERN
The directors have assessed the company as having sufficient resources to meet the expected ongoing costs of the business for a period of at least 12 months from the date of signing the financial statements. As a result they have continued to adopt the going concern basis when preparing the financial statements.

ON BEHALF OF THE BOARD:





M J Hewitt - Director


3 September 2024

R & W Scott Ltd (Registered number: 05072615)

Report of the Directors
for the Year Ended 31 March 2024

The directors present their report with the financial statements of the company for the year ended 31 March 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the manufacture amd sale of chocolate coatings, specialist soft icings, sauces, jams and dry powder blends for the industrial, retail, wholesale and foodservice markets.

DIVIDENDS
An interim dividend of £0.089 per share was paid on 31 March 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2024 will be £ 445,000 .

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

S J Currie
J C Easton
M J Hewitt

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

R & W Scott Ltd (Registered number: 05072615)

Report of the Directors
for the Year Ended 31 March 2024


AUDITORS
The auditors, Sharles Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



M J Hewitt - Director


3 September 2024

Report of the Independent Auditors to the Members of
R & W Scott Ltd

Opinion
We have audited the financial statements of R & W Scott Ltd (the 'company') for the year ended 31 March 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
R & W Scott Ltd


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
R & W Scott Ltd


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

The aims of our audit are to identify and assess the risks of material misstatement of the financial statements as a result of fraud or error, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement as a result of fraud or error and to respond appropriately to those risks. As a result of the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK).

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures include the following:

- We obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector
in which they operate. We determined that the following laws and regulations were most significant: the
Companies Act 2006 and UK corporate tax laws, The Food Safety Act, Health & Safety at Work Act, GDPR
and Anti Money Laundering legislation. We confirmed with management that there were no actual, suspected, or
alleged issues instances of non-compliance with laws and regulations during the year.
- Assessment of the appropriateness of the collective competence and capabilities of the engagement team
included consideration of the engagement teams:
- knowledge of the industry in which the client operates- understanding of and practical enactments of a similar nature, and complexity through appropriate training and participation
- understanding of the legal and regulatory requirements specific to the entity
- We obtained an understanding of how the company complies with those legal and regulatory frameworks by
making inquiries of management. We undertook a review of legal fees for any evidence of non-compliance.
- We assessed the susceptibility of the company financial statements to material misstatement, including how
fraud might occur. Audit procedures performed by the audit team included:
- identifying and documenting the controls management has in place to prevent and detect fraud and error;
- understanding how those charged with governance considered and addressed the potential for override of
controls or other inappropriate influence over the financial reporting process;
- challenging assumptions and judgements made by management in its significant accounting estimates;
- identifying and testing journal entries, in particular any journal entries posted for large or unusual amounts;
- assessing the extent of compliance with relevant laws and regulations; and
- sample testing of transactions and balances.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
R & W Scott Ltd


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Robert A Pollock BA CA (Senior Statutory Auditor)
for and on behalf of Sharles Audit Limited
Statutory Auditors
29 Brandon Street
Hamilton
ML3 6DA

9 September 2024

R & W Scott Ltd (Registered number: 05072615)

Income Statement
for the Year Ended 31 March 2024

2024 2023
Notes £    £   

TURNOVER 18,227,795 17,096,028

Cost of sales 12,624,740 12,515,250
GROSS PROFIT 5,603,055 4,580,778

Administrative expenses 4,039,072 3,684,942
1,563,983 895,836

Other operating income 4,750 81,387
OPERATING PROFIT 5 1,568,733 977,223


Interest payable and similar expenses 6 173,104 228,157
PROFIT BEFORE TAXATION 1,395,629 749,066

Tax on profit 7 301,804 (128,166 )
PROFIT FOR THE FINANCIAL YEAR 1,093,825 877,232

R & W Scott Ltd (Registered number: 05072615)

Other Comprehensive Income
for the Year Ended 31 March 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 1,093,825 877,232


OTHER COMPREHENSIVE INCOME
Property revaluation 996,215 -
Deferred tax on revaluation reserve rele 6,777 -
Income tax relating to components of other
comprehensive income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

1,002,992

-
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,096,817

877,232

R & W Scott Ltd (Registered number: 05072615)

Balance Sheet
31 March 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 3,742,218 2,993,092

CURRENT ASSETS
Stocks 10 2,386,136 2,490,261
Debtors 11 6,738,859 6,626,531
Cash at bank and in hand 18,162 53,914
9,143,157 9,170,706
CREDITORS
Amounts falling due within one year 12 3,320,269 4,044,084
NET CURRENT ASSETS 5,822,888 5,126,622
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,565,106

8,119,714

CREDITORS
Amounts falling due after more than one
year

13

-

(502,595

)

PROVISIONS FOR LIABILITIES 17 (205,920 ) -

ACCRUALS AND DEFERRED INCOME 18 (90,250 ) -
NET ASSETS 9,268,936 7,617,119

CAPITAL AND RESERVES
Called up share capital 19 5,000,000 5,000,000
Revaluation reserve 20 1,335,113 359,230
Retained earnings 20 2,933,823 2,257,889
SHAREHOLDERS' FUNDS 9,268,936 7,617,119

The financial statements were approved by the Board of Directors and authorised for issue on 3 September 2024 and were signed on its behalf by:





M J Hewitt - Director


R & W Scott Ltd (Registered number: 05072615)

Statement of Changes in Equity
for the Year Ended 31 March 2024

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 April 2022 5,000,000 1,880,657 359,230 7,239,887

Changes in equity
Dividends - (500,000 ) - (500,000 )
Total comprehensive income - 877,232 - 877,232
Balance at 31 March 2023 5,000,000 2,257,889 359,230 7,617,119

Changes in equity
Dividends - (445,000 ) - (445,000 )
Total comprehensive income - 1,120,934 975,883 2,096,817
Balance at 31 March 2024 5,000,000 2,933,823 1,335,113 9,268,936

R & W Scott Ltd (Registered number: 05072615)

Notes to the Financial Statements
for the Year Ended 31 March 2024

1. STATUTORY INFORMATION

R & W Scott Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There were no material departures from the standard.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements have been prepared on a going concern basis.

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

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and
11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirement of paragraph 33.7.

Significant judgements and estimates
The company makes judgements, estimates and assumptions that affect the application of polices and the carrying values of assets and liabilities, income and expenses. The resulting accounting estimates calculated using these judgements will, by definition, seldom equal the related actual results but are based on the experience of the directors and the expectations of future events. The estimates are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is reviewed.

Key judgement's and sources of estimation uncertainty are;

- The recovery of trade receivables and provision for bad debt. Based on the principle that any debtors overdue by more than 120 days will not be recoverable and should be provided for in full.

- The provision for redundant and non re-workable stock. This is costed on the basis of labour and packaging input costs for re-workable stock and full input cost for stock recognised as redundant.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is measured at the fair value from the manufacture and sale of chocolate coatings, specialist soft icings, sauces, jams and dry powder blends for the industrial, retail wholesale and foodservice markets.

Turnover therefore represents the sale of these goods and services, net of discounts and excluding value added tax, and is recognised at the point that these goods and services are supplied.

R & W Scott Ltd (Registered number: 05072615)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

3. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - Straight line over 40 - 50 years
Plant and machinery - Straight line over 2 - 13 years
Computer equipment - Straight line over 4 years

At each balance sheet date, the company reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Expenditure of £500 or more on individual tangible fixed assets is capitalised at cost. Expenditure on assets below this threshold is charged directly to the income account in the period it is incurred.

All assets are depreciated on the basis of a Nil residual value.

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

At each balance sheet date, stocks are assessed for impairment. If stocks are impaired the carrying value is reduced to its selling price less costs to sell. The impairment loss is recognised immediately in the profit and loss account.

Financial instruments
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts.

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


R & W Scott Ltd (Registered number: 05072615)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

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

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

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

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Invoice discounting policy
During the year R & W Scott had an invoice discounting facility with Bibby Financial Services secured against trade debtors on a revolving basis with a three month notice period. The facility is secured against the trade debtors of the company with an interest rate of 3.5% above base rate.

Trade debtors remained the assets of the business and were shown at the total amount collectable. Liabilities under this agreement were shown under borrowings.

Significant judgements and estimates
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Basic financial instruments
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts.

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Government grants
Grants in respect of capital expenditure are treated as deferred income and are credited to the profit and loss account over the estimated useful life of the assets to which they relate. Revenue grants are credited to the profit and loss account in the period in which they become receivable. Grants which impose specific performance related conditions are recognised when those conditions have been met.

R & W Scott Ltd (Registered number: 05072615)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 1,814,029 1,642,482
Social security costs 213,907 197,138
Other pension costs 199,123 187,306
2,227,059 2,026,926

The average number of employees during the year was as follows:
2024 2023

Directors and administration 21 20
Selling and distribution 11 12
Production 61 58
93 90

2024 2023
£    £   
Directors' remuneration 417,760 364,953

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 146,833 132,496

5. OPERATING PROFIT

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

2024 2023
£    £   
Other operating leases 98,931 102,349
Depreciation - owned assets 553,845 524,287
Auditors' remuneration 13,875 13,500
Foreign exchange differences (1,373 ) (215 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Other interest 173,104 228,157

R & W Scott Ltd (Registered number: 05072615)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

7. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax - (39,058 )

Deferred tax 301,804 (89,108 )
Tax on profit 301,804 (128,166 )

Tax effects relating to effects of other comprehensive income

2024
Gross Tax Net
£    £    £   
Property revaluation 996,215 - 996,215
Deferred tax on revaluation reserve rele 6,777 - 6,777
1,002,992 - 1,002,992

8. DIVIDENDS
2024 2023
£    £   
Ordinary shares of 1 each
Interim 445,000 500,000

9. TANGIBLE FIXED ASSETS
Freehold Plant and Computer
property machinery equipment Totals
£    £    £    £   
COST OR VALUATION
At 1 April 2023 900,000 7,743,790 111,416 8,755,206
Additions - 304,972 1,784 306,756
Revaluation 900,000 - - 900,000
At 31 March 2024 1,800,000 8,048,762 113,200 9,961,962
DEPRECIATION
At 1 April 2023 78,215 5,598,016 85,883 5,762,114
Charge for year 18,000 517,780 18,065 553,845
Fair value adjustment (96,215 ) - - (96,215 )
At 31 March 2024 - 6,115,796 103,948 6,219,744
NET BOOK VALUE
At 31 March 2024 1,800,000 1,932,966 9,252 3,742,218
At 31 March 2023 821,785 2,145,774 25,533 2,993,092

R & W Scott Ltd (Registered number: 05072615)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

9. TANGIBLE FIXED ASSETS - continued

Cost or valuation at 31 March 2024 is represented by:

Freehold Plant and Computer
property machinery equipment Totals
£    £    £    £   
Valuation in 2020 (2,044,283 ) - - (2,044,283 )
Valuation in 2024 900,000 - - 900,000
Cost 2,944,283 8,048,762 113,200 11,106,245
1,800,000 8,048,762 113,200 9,961,962

If Freehold Property had not been revalued it would have been included at the following historical cost:

2024 2023
£    £   
Cost 2,944,283 2,944,283
Aggregate depreciation 294,428 235,543

Freehold Property was valued on an open market value basis on 9 April 2024 by Sanderson Weatherall Surveyors .

10. STOCKS
2024 2023
£    £   
Stocks 2,386,136 2,490,261

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 2,315,188 2,278,142
Amounts owed by group undertakings 3,682,321 3,684,799
Other debtors 205,979 61,305
Directors' current accounts 420,000 420,000
Deferred tax asset - 89,108
Prepayments 115,371 93,177
6,738,859 6,626,531

Trade debtors subject to the invoice discounting facility as at 31st March 2024 £2,315,188 (2023 £2,278,142).

R & W Scott Ltd (Registered number: 05072615)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 14) - 177,134
Other loans (see note 14) 8,000 18,917
Hire purchase contracts (see note 15) - 22,917
Trade creditors 1,392,865 1,390,331
Social security and other taxes 87,219 82,636
Other creditors 45,874 48,511
Invoice discounting facility 1,589,672 2,046,042
Accrued expenses 196,639 257,596
3,320,269 4,044,084

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans (see note 14) - 495,095
Other loans (see note 14) - 7,500
- 502,595

14. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans - 177,134
Other loans 8,000 18,917
8,000 196,051

Amounts falling due between one and two years:
Bank loans - 1-2 years - 185,803
Other loans - 1-2 years - 7,500
- 193,303

Amounts falling due between two and five years:
Bank loans - 2-5 years - 162,060

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal - 147,232

The group had an interest free Digital Development loan with the final repayment due in 2024.

R & W Scott Ltd (Registered number: 05072615)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year - 22,917

Non-cancellable operating leases
2024 2023
£    £   
Within one year 53,219 49,302
Between one and five years 79,829 127,365
133,048 176,667

16. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans - 672,229
Hire purchase contracts - 22,917
Invoice discounting facility 1,589,672 2,046,042
1,589,672 2,741,188

The invoice discounting facility is secured against the trade debtors of the company.

17. PROVISIONS FOR LIABILITIES
2024
£   
Deferred tax 205,920

Deferred
tax
£   
Balance at 1 April 2023 (89,108 )
Provided during year 301,805
Deferred tax on revaluation (6,777 )
Balance at 31 March 2024 205,920

18. ACCRUALS AND DEFERRED INCOME
2024 2023
£    £   
Deferred government grants 90,250 -

R & W Scott Ltd (Registered number: 05072615)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
5,000,000 Ordinary 1 5,000,000 5,000,000

20. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 April 2023 2,257,889 359,230 2,617,119
Profit for the year 1,093,825 1,093,825
Dividends (445,000 ) (445,000 )
Property revaluation - 996,215 996,215
Revaluation reserve release 27,109 (27,109 ) -
Deferred tax on revaluation
reserve release - 6,777 6,777
At 31 March 2024 2,933,823 1,335,113 4,268,936

21. PENSION COMMITMENTS

The company operates a defined contribution benefit scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.

The pension cost charge represents contributions payable by the group to the fund and amounted to £255.264 Contributions totalling £20,208 were payable to the fund at the reporting date and are included with liabilities.

22. ULTIMATE PARENT COMPANY

Scotts Holdco Limited is regarded by the directors as being the company's ultimate parent company.

Due to the spread of shareholders in Scotts Holdco Limited there was no one controlling party during the year under review. The largest shareholding as at 31st March 2024 was 22.15% held by J Easton.

23. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 March 2024 and 31 March 2023:

2024 2023
£    £   
S J Currie
Balance outstanding at start of year 140,000 -
Amounts advanced - 140,000
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 140,000 140,000

R & W Scott Ltd (Registered number: 05072615)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

23. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued

J C Easton
Balance outstanding at start of year 140,000 -
Amounts advanced - 140,000
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 140,000 140,000

M J Hewitt
Balance outstanding at start of year 140,000 -
Amounts advanced - 140,000
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 140,000 140,000

The loans are required as detailed in the R & W Scott 3 year plan dated April 2022. When drawn, interest will accrue at the official HMRC rate of interest. The loans shall be repayable on a value realisation event as detailed in the business plan.