Company registration number SC023681 (Scotland)
Reekie Engineering Limited
unaudited financial statements
for the year ended 31 December 2023
Pages for filing with Registrar
Reekie Engineering Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
Reekie Engineering Limited
Balance sheet
as at 31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,790,903
1,819,040
Investments
4
4,019,417
3,914,319
5,810,320
5,733,359
Current assets
Debtors
5
2,052,087
1,796,395
Cash at bank and in hand
6,475
333,409
2,058,562
2,129,804
Creditors: amounts falling due within one year
6
(2,340,123)
(2,315,396)
Net current liabilities
(281,561)
(185,592)
Total assets less current liabilities
5,528,759
5,547,767
Creditors: amounts falling due after more than one year
7
(16,233)
(21,712)
Provisions for liabilities
-
0
(83,866)
Net assets
5,512,526
5,442,189
Capital and reserves
Called up share capital
22,705
22,705
Share premium account
8
6,312
6,312
Revaluation reserve
9
514,118
514,118
Capital redemption reserve
10
39,410
39,410
Profit and loss reserves
11
4,929,981
4,859,644
Total equity
5,512,526
5,442,189

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Reekie Engineering Limited
Balance sheet (continued)
as at 31 December 2023
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 27 August 2024
P N J S Reekie
Director
Company Registration No. SC023681
Reekie Engineering Limited
Notes to the financial statements
for the year ended 31 December 2023
- 3 -
1
Accounting policies
Company information

Reekie Engineering Limited is a private company limited by shares incorporated in Scotland. The registered office is Baden Powell Road, Kirkton Industrial Park, Arbroath, DD11 3LS.

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 as applicable to companies subject to the small companies' regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

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.

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.

Revenue consists of rental income from properties held and intergroup charges.

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:

Land and buildings Freehold
2% reducing balance
Plant and machinery
25% - 33.33% reducing balance
Fixtures, fittings & equipment
33.33% reducing balance
Motor vehicles
30% 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.

Reekie Engineering Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 4 -
1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
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.

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.

1.7
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.

Reekie Engineering Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 5 -
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.

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.

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.

1.9
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.

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.

Reekie Engineering Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 6 -
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.

1.11
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.

1.12
Retirement benefits

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

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

2
Employees

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

2023
2022
Number
Number
Total
3
3
Reekie Engineering Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 7 -
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
1,865,158
137,420
2,002,578
Depreciation and impairment
At 1 January 2023
91,514
92,024
183,538
Depreciation charged in the year
15,462
12,675
28,137
At 31 December 2023
106,976
104,699
211,675
Carrying amount
At 31 December 2023
1,758,182
32,721
1,790,903
At 31 December 2022
1,773,644
45,396
1,819,040
Reekie Engineering Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 8 -
4
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
4,019,417
3,914,319
Fixed asset investments revalued

The investment in a subsidiary company is carried at valuation.

Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 January 2023
3,914,319
Valuation changes
105,098
At 31 December 2023
4,019,417
Carrying amount
At 31 December 2023
4,019,417
At 31 December 2022
3,914,319
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,560
1,703
Amounts owed by group undertakings
1,999,051
1,700,018
Other debtors
51,476
94,674
2,052,087
1,796,395
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
14,828
7,996
Amounts owed to group undertakings
2,089,640
1,889,158
Corporation tax
16,266
-
0
Other taxation and social security
19,099
19,595
Other creditors
200,290
398,647
2,340,123
2,315,396
Reekie Engineering Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 9 -
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
16,233
21,712
8
Share premium account

The share premium account includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

9
Revaluation reserve
2023
2022
£
£
At the beginning of the year
514,118
-
0
Revaluation surplus arising in the year
-
0
514,118
At the end of the year
514,118
514,118

Non distributable reserves represent the revaluation gain on the recognition of changes in the value of the company's investment in its subsidiary and also on property held in the company.

10
Capital redemption reserve

Capital redemption reserve records the nominal value of shares repurchased by the company.

11
Profit and loss reserves

The profit and loss account includes all current and prior period retained distributable profit and losses.

12
Financial commitments, guarantees and contingent liabilities
The company has given cross guarantees for Reekie Steeltec Limited for all advances supported by a floating charge over its assets and undertakings.
13
Parent company

The ultimate controlling party is PNJS Reekie who is the majority shareholder and director of the company.

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