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REGISTERED NUMBER: SC136445 (Scotland)















Strategic Report, Report of the Directors and

Audited Financial Statements For The Year Ended 31 December 2023

for

Thomas Johnstone Limited

Thomas Johnstone Limited (Registered number: SC136445)






Contents of the Financial Statements
For The Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 6

Income Statement 10

Statement of Financial Position 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


Thomas Johnstone Limited

Company Information
For The Year Ended 31 December 2023







DIRECTORS: T Green
D S Haddow
R Young
G Cameron
D Campbell
C Buttar
N Crighton
K Pick
C Ross


SECRETARY: C Buttar


REGISTERED OFFICE: Cartside Avenue
Inchinnan Business Park
Inchinnan
Renfrewshire
PA4 9RU


REGISTERED NUMBER: SC136445 (Scotland)


INDEPENDENT AUDITORS: Robb Ferguson
Chartered Accountants & Statutory Auditors
Regent Court
70 West Regent Street
Glasgow
G2 2QZ


BANKERS: Santander UK Plc
12-13 St Andrew Square
Edinburgh
EH2 2AF


SOLICITORS: MacRoberts
Capella
60 York Street
Glasgow
G2 8JX

Thomas Johnstone Limited (Registered number: SC136445)

Strategic Report
For The Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS
Strong sales in 2022 carried on into 2023 and were further strengthened by securing "anchor" projects of varying sizes within our existing market sectors. By continuing to focus on the needs of our customers we have maximised the sales opportunities available to us. Annual sales of £86.4 million reflect a 46% growth from 2022. This has been delivered by careful recruitment of additional staff and labour, always keeping the guiding principles of TJL to the forefront. Our customer care and operational performance continues to be our strongest selling point.

As a result of strong sales, we were able to generate a gross margin percentage return which allowed the business to deliver an operating profit in line with budget expectations. This was achieved against a backdrop of high inflation throughout the construction sector, affecting Subcontractor, Labour, Plant and Material costs. By careful negotiations and risk management we managed to secure projects with favourable terms regarding cost increases. We anticipate a strong first quarter in 2024 which we will build upon.

A lack of skilled trades persons and skilled management teams still restricts growth in our industry. We must be proactive in training and retraining new and not so new recruits. Therefore, we continue to invest in apprenticeships for trades persons of all ages and sponsor undergraduates training to be professionals in the construction sector.

We continue to strive for improvements in our environmental performance as part of our wider corporate social responsibility. We will continue to seek to improve our impact on the environment by taking steps to reduce our energy use. Our programme of investment has led us to install 925 m2 of Solar Panels on our factory roof, supplying most of our energy needs throughout the day. We are also investigating the use of batteries for storage which would further reduce our dependence on "grid" electricity.

We continue to put our people first and this is reflected in our excellent staff retention levels. We aim to make their place of work an enjoyable experience and encourage a good work-life balance.

The Directors continue to believe that our healthy order book and increasing customer base, combined with our stated intent of constant improvement in our practises and procedures provides solid grounds for confidence and that we will continue to grow the business and reduce our effective cost base through innovation and efficiencies.

We have seen two years of sustained growth and continue to be optimistic about the future of the construction market sectors we are in. We believe we are in good shape to seek out and take advantage of opportunities as they arise in 2024.

ON BEHALF OF THE BOARD:





R Young - Director


16 September 2024

Thomas Johnstone Limited (Registered number: SC136445)

Report of the Directors
For The Year Ended 31 December 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of fit-out contractor with associated support divisions.

DIVIDENDS
Interim dividends per share on the Ordinary £1 shares were paid as follows:
£0.37 - 24 January 2023
£0.08 - 6 April 2023
£0.45

The directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 31 December 2023 will be £ 181,319 .


Thomas Johnstone Limited (Registered number: SC136445)

Report of the Directors
For The Year Ended 31 December 2023

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

T Green
D S Haddow
R Young
G Cameron
D Campbell
C Buttar
N Crighton
K Pick
C Ross

STREAMLINED ENERGY AND CARBON REPORTING
Energy and Carbon Report
In accordance with the Companies (Directors Report) and the Energy and Carbon Report Regulations 2018, the company, having met the thresholds of large unquoted company status in the UK, is now required to report their UK energy use and associated GHG emissions relating to electricity, gas and transport fuel.

The requirement also calls for an intensity ratio.

For company reporting purposes the methods adopted in the calculations of the total greenhouse gas emissions incorporate the GHG Protocol Corporate Standard, the 2019 HM Government Environmental Reporting Guidelines and the 2023 UK Government Conversion Factors.

Information surrounding Business travel and power consumption have been sourced internally from invoices and receipts and converted accordingly to CO2e utilising UK Government GHG Conversion Factors.

Our adopted intensity metric has been defined as tonnes of CO2e per £1million of Sales Revenue.

The company in the latter part of 2023 invested in Solar Panels installation to our Manufacturing Facility Roof at our Inchinnan premises. The extent of the benefit and improvement impact should become more evident in 2024's Energy reduction measures. New Energy Efficient Boilers were also installed during 2023.

The company has in previous years implemented a raft of initiatives to reduce our carbon footprint some of which include, the changing of all lights to LED, introducing PIR sensors for controlled lighting in various areas, introducing EV charging points and insulation to our Factory roof.

2023
UK Energy Use kWh 858,919.46
Associated Greenhouse Gas
Emissions

TCO2e

390.21
Intensity Ratio TCO2e per £M Sales Revenue 4.5

As 2023 is the first year of disclosure requirements, there is no comparative figure for 2022.

Energy Reduction Measures Planned for 2024 surround the following:
- Monitoring of solar generation export back to the Grid, for battery storage feasibility study.
- Full year benefits from Solar Panel Investment.
- Additional Awareness, briefings and training for all employees.


Thomas Johnstone Limited (Registered number: SC136445)

Report of the Directors
For The Year Ended 31 December 2023

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.

ON BEHALF OF THE BOARD:





R Young - Director


16 September 2024

Report of the Independent Auditors to the Members of
Thomas Johnstone Limited

Opinion
We have audited the financial statements of Thomas Johnstone Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Statement of Financial Position, 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 December 2023 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
Thomas Johnstone Limited


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 five, 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
Thomas Johnstone Limited


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:

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 misstatements in respect of irregularities, including fraud.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- We identified the laws and regulations applicable to the company through discussions with directors and other
management, and from our wider knowledge and experience;
- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and FRS 102;
- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of
management and inspecting legal correspondence; and
- Identified laws and regulations were communicated within the audit team regularly and the team remained alert to
instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of
actual, suspected and alleged fraud; and
- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations

Audit response to risks identified
To address the risk of fraud through management bias and override of controls, we:
- Performed analytical procedures to identify any unusual or unexpected relationships;
- Tested journal entries to identify unusual transactions;
- Assessed whether judgements and assumptions made in determining the accounting estimates set out were indicative of potential bias;
and
- Investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were
not limited to:
- Agreeing financial statement disclosures to underlying supporting documentation;
- Reading the minutes of meetings of those charged with governance;
- Enquiring of management as to actual and potential litigation and claims; and
- Requesting correspondence with HMRC, Companies House and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of 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
Thomas Johnstone Limited


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.




Janice Alexander CA (Senior Statutory Auditor)
for and on behalf of Robb Ferguson
Chartered Accountants & Statutory Auditors
Regent Court
70 West Regent Street
Glasgow
G2 2QZ

19 September 2024

Thomas Johnstone Limited (Registered number: SC136445)

Income Statement
For The Year Ended 31 December 2023

2023 2022
as restated
Notes £    £   

TURNOVER 3 86,455,559 59,432,071

Cost of sales 72,937,708 51,086,271
GROSS PROFIT 13,517,851 8,345,800

Administrative expenses 9,780,611 7,612,102
3,737,240 733,698

Other operating income 112,716 138,467
OPERATING PROFIT 5 3,849,956 872,165

Interest receivable and similar income 159,460 -
4,009,416 872,165

Interest payable and similar expenses 6 97,208 103,394
PROFIT BEFORE TAXATION 3,912,208 768,771

Tax on profit 7 963,254 113,159
PROFIT FOR THE FINANCIAL YEAR 2,948,954 655,612

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,948,954

655,612

Thomas Johnstone Limited (Registered number: SC136445)

Statement of Financial Position
31 December 2023

2023 2022
as restated
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 2,229,129 2,062,819

CURRENT ASSETS
Stocks 12 39,269 33,047
Debtors 13 18,898,955 15,884,075
Cash at bank and in hand 12,323,894 2,996,686
31,262,118 18,913,808
CREDITORS
Amounts falling due within one year 14 25,262,179 15,572,925
NET CURRENT ASSETS 5,999,939 3,340,883
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,229,068

5,403,702

PROVISIONS FOR LIABILITIES 16 105,757 48,026
NET ASSETS 8,123,311 5,355,676

CAPITAL AND RESERVES
Called up share capital 17 406,289 406,289
Revaluation reserve 18 784,278 807,015
Capital redemption reserve 18 100,000 100,000
Retained earnings 18 6,832,744 4,042,372
SHAREHOLDERS' FUNDS 8,123,311 5,355,676

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2024 and were signed on its behalf by:





R Young - Director


Thomas Johnstone Limited (Registered number: SC136445)

Statement of Changes in Equity
For The Year Ended 31 December 2023

Called up Capital
share Retained Revaluation redemption Total
capital earnings reserve reserve equity
£    £    £    £    £   
Balance at 1 January 2022 406,289 3,364,023 829,752 100,000 4,700,064

Changes in equity
Total comprehensive income - 678,349 (22,737 ) - 655,612
Balance at 31 December 2022 406,289 4,042,372 807,015 100,000 5,355,676

Changes in equity
Dividends - (181,319 ) - - (181,319 )
Total comprehensive income - 2,971,691 (22,737 ) - 2,948,954
Balance at 31 December 2023 406,289 6,832,744 784,278 100,000 8,123,311

Thomas Johnstone Limited (Registered number: SC136445)

Notes to the Financial Statements
For The Year Ended 31 December 2023

1. STATUTORY INFORMATION

Thomas Johnstone Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

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

The significant accounting policies applied in the preparation of the financial statements are set out below. The policies have been consistently applied to all years presented unless otherwise stated.

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 33.7.

Thomas Johnstone Limited is a qualifying subsidiary and has taken advantage of the reduced disclosure exemptions listed above. The parent company of the group is TJH1868 Limited and the group financial statements are available from TJH1868 Limited, Cartside Avenue, Inchinnan Business Park, Renfrewshire, PA4 9RU.

Significant judgements and estimates
In the application of the group's accounting policies the directors and management are required to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the period end date, and the amounts reported for revenues and expenses during the period.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, and in future periods should it affect future periods.

Management consider that the following have the most significant effect on the amounts recognised in the financial statements:

- Financial outcome of individual construction contracts - all long-term contracts are reviewed on a monthly basis, with particular attention to contract stage of completion, costs to date and costs still to be incurred. Movement in margin is recognised when prudent to do so but immediately in the event there is a foreseeable loss.

Thomas Johnstone Limited (Registered number: SC136445)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Turnover
Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer.

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. This is normally measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred.

Where it is probable that contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Property and improvements - 2.5% on cost
Fixed plant and equipment - 10% on cost
Computer equipment - 25% on cost

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the profit and loss.

Stocks
Stocks are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items.

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Financial instruments
Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.


Thomas Johnstone Limited (Registered number: SC136445)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
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 statement of financial position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

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.

Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Loans and borrowings that are classified as payable or receivable within one year on initial recognition are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023 2022
as restated
£    £   
Construction contract income 86,455,559 59,432,071
86,455,559 59,432,071

Thomas Johnstone Limited (Registered number: SC136445)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023

4. EMPLOYEES AND DIRECTORS
2023 2022
as restated
£    £   
Wages and salaries 10,120,266 8,587,498
Social security costs 787,979 1,022,725
Other pension costs 637,159 488,296
11,545,404 10,098,519

The average number of employees during the year was as follows:
2023 2022
as restated

Office and administration 89 84
Production 120 115
209 199

2023 2022
as restated
£    £   
Directors' remuneration 1,330,261 1,205,516
Directors' pension contributions to money purchase schemes 254,900 191,768

Information regarding the highest paid director is as follows:
2023 2022
as restated
£    £   
Emoluments etc 176,185 192,235
Pension contributions to money purchase schemes 40,000 40,000

5. OPERATING PROFIT

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

2023 2022
as restated
£    £   
Hire of plant and machinery 1,366,961 1,091,129
Operating lease income (112,716 ) (115,794 )
Depreciation - owned assets 147,379 156,023
Auditors' remuneration 20,350 20,865
Operating lease costs - property 152,479 152,000
Operating lease costs - other 422,241 396,712

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
as restated
£    £   
Bank overdraft & loan interest 97,208 103,394

Thomas Johnstone Limited (Registered number: SC136445)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
as restated
£    £   
Current tax:
UK corporation tax 905,523 131,974

Deferred tax 57,731 (18,815 )
Tax on profit 963,254 113,159

UK corporation tax has been charged at 23.50% (2022 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
as restated
£    £   
Profit before tax 3,912,208 768,771
Profit multiplied by the standard rate of corporation tax in the UK of
23.500% (2022 - 19%)

919,369

146,066

Effects of:
Income & expenses not deductible for tax purposes 27,981 (37,551 )

Timing differences (41,827 ) 23,459
Deferred tax movement 57,731 (18,815 )


Total tax charge 963,254 113,159

8. DIVIDENDS
2023 2022
as restated
£    £   
Ordinary shares of £1 each
Interim 181,319 -

9. PRIOR YEAR ADJUSTMENT

During the year the company made a prior year adjustment to restate the bank loans included on the 2022 Statement of Financial Position. These loans are held in the name of the ultimate parent company (TJH1868 Limited) and as such recognised on their Statement of Financial Position.The value of the prior year adjustment was £2,203,125 with no impact on reserves.

Thomas Johnstone Limited (Registered number: SC136445)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023

10. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. Contributions payable by the company for the year were £637,159 (2022 - £488,296). Amounts outstanding at the year end 31 December 2023 were £64,386 (2022 - £55,623).

11. TANGIBLE FIXED ASSETS
Property Fixed
and plant and Computer
improvements equipment equipment Totals
£    £    £    £   
COST OR VALUATION
At 1 January 2023 1,830,000 1,361,647 566,507 3,758,154
Additions - 268,460 45,229 313,689
Disposals - (225,152 ) - (225,152 )
At 31 December 2023 1,830,000 1,404,955 611,736 3,846,691
DEPRECIATION
At 1 January 2023 45,750 1,133,887 515,698 1,695,335
Charge for year 45,750 61,441 40,188 147,379
Eliminated on disposal - (225,152 ) - (225,152 )
At 31 December 2023 91,500 970,176 555,886 1,617,562
NET BOOK VALUE
At 31 December 2023 1,738,500 434,779 55,850 2,229,129
At 31 December 2022 1,784,250 227,760 50,809 2,062,819

Cost or valuation at 31 December 2023 is represented by:

Property Fixed
and plant and Computer
improvements equipment equipment Totals
£    £    £    £   
Valuation in 2014 1,500,000 - - 1,500,000
Valuation in 2021 39,803 - - 39,803
Cost 290,197 1,404,955 611,736 2,306,888
1,830,000 1,404,955 611,736 3,846,691

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

2023 2022
as restated
£    £   
Cost 1,622,830 1,622,830
Aggregate depreciation 689,312 648,741

The property was valued on an open market basis in February 2021 by way of a 3rd party valuation. The Directors have reviewed the carrying value at December 2023 and consider it to be a reasonable estimate of valuation at that date.

Thomas Johnstone Limited (Registered number: SC136445)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023

12. STOCKS
2023 2022
as restated
£    £   
Raw materials & consumables 39,269 33,047

13. DEBTORS
2023 2022
as restated
£    £   
Amounts falling due within one year:
Trade debtors 7,524,587 6,499,869
Amounts owed by group undertakings 3,441,617 1,966,534
Amounts recoverable on contracts 4,631,460 5,096,771
Other debtors & prepayments 299,001 82,591
15,896,665 13,645,765

Amounts falling due after more than one year:
Trade debtors 1,949,864 2,238,310
Amounts recoverable on contracts 1,052,426 -
3,002,290 2,238,310

Aggregate amounts 18,898,955 15,884,075

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
as restated
£    £   
Trade creditors 7,975,383 4,798,493
Tax 2,069,019 608,575
Social security and other taxes 427,968 443,522
VAT 3,162,842 994,168
Other creditors 11,626,967 8,728,167
25,262,179 15,572,925

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
as restated
£    £   
Within one year 362,279 365,230
Between one and five years 732,278 781,664
In more than five years 12,667 164,667
1,107,224 1,311,561

Thomas Johnstone Limited (Registered number: SC136445)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023

16. PROVISIONS FOR LIABILITIES
2023 2022
as restated
£    £   
Deferred tax 105,757 48,026

Deferred
tax
£   
Balance at 1 January 2023 48,026
Provided during year 57,731
Accelerated capital allowances
Balance at 31 December 2023 105,757

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: as restated
£    £   
406,289 Ordinary £1 406,289 406,289

18. RESERVES
Capital
Retained Revaluation redemption
earnings reserve reserve Totals
£    £    £    £   

At 1 January 2023 4,042,372 807,015 100,000 4,949,387
Profit for the year 2,948,954 2,948,954
Dividends (181,319 ) (181,319 )
Revaluation reserve release 22,737 (22,737 ) - -
At 31 December 2023 6,832,744 784,278 100,000 7,717,022

19. ULTIMATE PARENT COMPANY

The ultimate parent company is TJH1868 Limited, a company registered in Scotland. Copies of the financial statements of the group are available from TJH1868 Limited, Cartside Avenue, Inchinnan Business Park, Renfrewshire, PA4 9RU.

20. SECURED DEBTS

A cross guarantee exists between the company and its ultimate parent company. The nature of the guarantee is a floating charge over the whole of the assets of the company and a first ranking standard security over the property at Cartside Avenue, Inchinnan is held by the company's bank.The loan balance at the year end is £728,042 (2022 - £2,203,125).

21. ULTIMATE CONTROLLING PARTY

The ultimate controlling party of the company are the directors of TJH1868 Limited.