Company registration number SC159052 (Scotland)
SCOTTISH BOOK SOURCE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
SCOTTISH BOOK SOURCE LIMITED
COMPANY INFORMATION
Directors
Davinder Bedi
Marion Sinclair
Louise Morris
Jim Chalmers
Joanne Macleod
Resigned 30/08/2023
Katharine Lockwood-Holmes
Jonathan Williams
John Mitchell
Resigned 30/06/2023
Collette Wilson
Kathleen Gibb
Secretary
Davinder Bedi
Company number
SC159052
Registered office
50 Cambuslang Road
Glasgow
G32 8NB
Auditors
Wbg (Audit) Limited
168 Bath Street
Glasgow
G2 4TP
SCOTTISH BOOK SOURCE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
SCOTTISH BOOK SOURCE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
156,713
119,477
Current assets
Debtors
4
350,222
239,234
Cash at bank and in hand
619,585
634,191
969,807
873,425
Creditors: amounts falling due within one year
5
(460,428)
(549,077)
Net current assets
509,379
324,348
Total assets less current liabilities
666,092
443,825
Creditors: amounts falling due after more than one year
6
(182,542)
(13,080)
Provisions for liabilities
(30,920)
(21,580)
Net assets
452,630
409,165
Capital and reserves
Called up share capital
8
78,500
78,500
Share premium account
3,000
3,000
Profit and loss reserves
371,130
327,665
Total equity
452,630
409,165
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 4 September 2024 and are signed on its behalf by:
Davinder Bedi
Jonathan Williams
Director
Director
Company registration number SC159052 (Scotland)
SCOTTISH BOOK SOURCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Scottish Book Source Limited is a private company limited by shares incorporated in Scotland. The registered office is 50 Cambuslang Road, Glasgow, G32 8NB.
1.1
Accounting convention
These financial statements for the year ended 31 December 2023 are prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland 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 give 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. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors' have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.true
1.3
Turnover
Turnover represents the total invoice value, excluding value added tax, of sales made during the year. Revenue is recognised as books are distributed to the publisher at the point they leave the premises.
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:
Tenants Improvements
Straight line over the life of the lease
Plant and machinery
20 - 33% Straight line
Fixtures, fittings & equipment
20 - 50% Straight line
Computer equipment
20 - 50% Straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
SCOTTISH BOOK SOURCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
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
Basic financial liabilities
Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
SCOTTISH BOOK SOURCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.8
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.
1.9
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.
1.10
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.
The average number of persons employed by the company during the year amounted to 24 (2022:22).
1.11
Retirement benefits
The pension costs charged in the financial statements represent the contributions payable by the company during the year.
SCOTTISH BOOK SOURCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.12
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
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.
Bad debt provision
Calculations are made in respect of provisions for doubtful debts requires judgement. The judgement is based on the customer base and economic environment.
Depreciation
Tangible fixed assets are depreciated over the useful life of the assets. The useful life of the fixed assets are based on the knowledge of the directors, with reference to assets expected life cycle
3
Tangible fixed assets
Leasehold Improvements
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
38,172
597,569
635,741
Additions
4,145
107,470
111,615
At 31 December 2023
42,317
705,039
747,356
Depreciation and impairment
At 1 January 2023
12,679
503,585
516,264
Depreciation charged in the year
2,534
71,845
74,379
At 31 December 2023
15,213
575,430
590,643
Carrying amount
At 31 December 2023
27,104
129,609
156,713
At 31 December 2022
25,493
93,984
119,477
SCOTTISH BOOK SOURCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Tangible fixed assets
(Continued)
- 6 -
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
286,622
172,649
Other debtors
63,600
66,585
350,222
239,234
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
98,829
82,432
Corporation tax
5,033
7,917
Other taxation and social security
99,548
46,848
Other creditors
257,018
411,880
460,428
549,077
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Loans: due between 1 and 5 years
8,653
13,080
Other creditors
173,889
182,542
13,080
7
Deferred taxation
Liabilities
Liabilities
2023
2022
£
£
Accelerated capital allowances
21,580
32,593
(Credited)/Charged to the profit and loss account
9,340
(11,013)
Provision at end of year
30,920
21,580
SCOTTISH BOOK SOURCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
8
Called up share capital
2023
2022
£
£
Ordinary share capital
Alloted, issued and fully paid
78,500 Ordinary shares of £1 each
78,500
78,500
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Scott Gillion BA(Hons) FCCA CA
The auditor was Wbg (Audit) Limited
SCOTTISH BOOK SOURCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
10
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
287,868
300,000
Between two and five years
1,151,472
1,200,000
In over five years
1,439,340
1,800,000
2,878,680
3,300,000
11
Publisher Accounts
The company operates bank accounts for funds gathered on behalf of its Publisher clients. As the funds belong to the Publishers these funds have not been incorporated in the accounts. At the year end the balance of the Publisher bank accounts was £914,404 (2022 £888,586).
12
Related party transactions
Remuneration of key management personnel
2023
2022
£
£
Aggregate compensation
159,448
145,265
13
Control
The company is controlled by Publishing Scotland Limited, a company limited by guarantee which is also a registered charity.