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REGISTERED NUMBER: SC378869 (Scotland)
















Financial Statements

for the Year Ended 31 December 2023

for

AEP (Scotland) Ltd.

AEP (Scotland) Ltd. (Registered number: SC378869)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


AEP (Scotland) Ltd.

Company Information
for the Year Ended 31 December 2023







DIRECTORS: Mr C McAdam
Mrs A McAdam





REGISTERED OFFICE: Unit 2
1 Alleysbank Road
Rutherglen
Glasgow
G73 1LX





REGISTERED NUMBER: SC378869 (Scotland)





ACCOUNTANTS: Gillespie & Anderson
Chartered Accountants
Westburn Business Centre
McNee Road
Prestwick
KA9 2PB

AEP (Scotland) Ltd. (Registered number: SC378869)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 347,697 384,621
Tangible assets 5 100,227 128,910
447,924 513,531

CURRENT ASSETS
Stocks 630,697 560,111
Debtors 6 683,153 719,051
Cash at bank and in hand 91,034 114,506
1,404,884 1,393,668
CREDITORS
Amounts falling due within one year 7 743,620 709,568
NET CURRENT ASSETS 661,264 684,100
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,109,188

1,197,631

CREDITORS
Amounts falling due after more than one
year

8

(135,309

)

(268,918

)

PROVISIONS FOR LIABILITIES (25,057 ) (24,493 )
NET ASSETS 948,822 904,220

CAPITAL AND RESERVES
Called up share capital 1 1
Retained earnings 948,821 904,219
SHAREHOLDERS' FUNDS 948,822 904,220

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Profit and loss account has not been delivered.

AEP (Scotland) Ltd. (Registered number: SC378869)

Balance Sheet - continued
31 December 2023



The financial statements were approved by the Board of Directors and authorised for issue on 13 September 2024 and were signed on its behalf by:





Mr C McAdam - Director


AEP (Scotland) Ltd. (Registered number: SC378869)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

AEP (Scotland) Ltd. 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The financial statements have been prepared on a going concern basis which assumes the company will continue to trade for a period of 12 months from the date of approval.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with it's Parent Company KCM Holdings (Scotland) Limited or wholly owned subsidiaries within the group.

Turnover/revenue recognition
Sales comprise the fair value of the consideration received or receivable for the sale of goods and rendering of services in the ordinary course of the company's activities. Sales are presented, net of value-added tax, rebates and discounts.

The company recognises revenue when the amount of revenue and related cost can be reliably measured, it is probable that the collectability of the related receivables is reasonably assured and when the specific criteria for each of the company's activities are met.

Goodwill
Goodwill arising on an acquisition of a trade is the difference between the fair value of the consideration paid and the fair value of the assets and liabilities acquired. Positive goodwill is capitalised and amortised through the profit and loss account over the director's estimate of its useful economic life which is 20 years. Impairment tests on the carrying value of goodwill are undertaken;

- at the end of the first full financial year following acquisition;
- in other period if events or changes in circumstances indicate that the carrying value may not be recoverable.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

AEP (Scotland) Ltd. (Registered number: SC378869)

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

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 20% on reducing balance
Fixtures and fittings - 20% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment and website costs - 20% on reducing balance

Tangible fixed assets are stated at cost less depreciation.

Impairment of fixed assets
At each reporting date, the company reviews the carrying amounts of its tangible and intangible fixed 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 amount 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.

Stocks
Stocks are valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis. Net realisable value is based on estimated selling price less additional costs to completion and disposal.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and loss account, 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.

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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

AEP (Scotland) Ltd. (Registered number: SC378869)

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

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Where assets are financed by leasing agreements that give rights approximating to ownership (finance leases), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable over the term of the lease. The corresponding leasing commitments are shown as amounts payable to the lessor. Depreciation on the relevant assets is charged to the profit and loss account over the shorter of estimated useful economic life and the period of the lease.

Lease payments are analysed between capital and interest components so that the interest element of the payment is charged to the profit and loss account over the period of the lease and is calculated so that it represents a constant proportion of the balance of capital repayments outstanding. The capital part reduces the amounts payable to the lessor.

All other leases are treated as operating leases. Their annual rentals are charged to the profit and loss account on a straight line basis over the terms of the lease.

Pension costs and other post-retirement benefits
The company operates a money purchase pension scheme in the form of employee personal pension plans. The contracts are between the individual and the pension provider and all funds are held externally by a third party pension provider. Pension contributions are charged to the profit and loss account in the period to which they relate.

Cash and cash equivalents
Cash and cash equivalents comprise cash held by the company and short term bank deposits with an original maturity of three months or less from inception and are subject to insignificant risk of changes in value.

Financial instruments
Financial assets and liabilities are recognised when the company becomes a party to the contractual provisions of the instrument and are classified in accordance with their underlying economic reality.

The company has two main categories of financial instruments, which are loans and other receivables and other financial liabilities:

Loans and other receivables
Loans and other receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Upon recognition, these assets are measured at fair value less directly related transaction expenses. In successive periods these are measured at amortised cost, and any differences between acquisition cost and redemption value is accounted for over the borrowing period by using the effective interest method. If transaction costs are immaterial and the credit period is short, amortised cost is equal to the nominal value less any allowance for credit losses.

Other financial liabilities
Other financial liabilities are recognised initially at fair value, net of transaction costs incurred. In successive periods these are measured at amortised cost. Any differences between acquisition cost and redemption value is accounted for over the borrowing period by using the effective interest method. If transaction costs are immaterial and the credit period is short, amortised cost is equal to the nominal value.

Impairment of financial instruments
A provision for impairment is established when there is objective evidence that, as a result of one or more events that occurred after the initial recognition, the estimated future cash flows have been impacted.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 38 (2022 - 38 ) .

AEP (Scotland) Ltd. (Registered number: SC378869)

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

4. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 744,481
AMORTISATION
At 1 January 2023 359,860
Charge for year 36,924
At 31 December 2023 396,784
NET BOOK VALUE
At 31 December 2023 347,697
At 31 December 2022 384,621

5. TANGIBLE FIXED ASSETS
Computer
equipment
Fixtures and
Plant and and Motor website
machinery fittings vehicles costs Totals
£    £    £    £    £   
COST
At 1 January 2023
and 31 December 2023 15,288 45,096 70,433 160,375 291,192
DEPRECIATION
At 1 January 2023 12,145 28,645 12,425 109,067 162,282
Charge for year 629 3,290 14,502 10,262 28,683
At 31 December 2023 12,774 31,935 26,927 119,329 190,965
NET BOOK VALUE
At 31 December 2023 2,514 13,161 43,506 41,046 100,227
At 31 December 2022 3,143 16,451 58,008 51,308 128,910

AEP (Scotland) Ltd. (Registered number: SC378869)

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

5. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 January 2023 22,495
Transfer to ownership (22,495 )
At 31 December 2023 -
DEPRECIATION
At 1 January 2023 5,624
Charge for year 4,218
Transfer to ownership (9,842 )
At 31 December 2023 -
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 16,871

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 436,361 504,032
Amounts owed by group undertakings 209,701 208,387
Amounts owed by associates 2,790 2,790
Other debtors 34,301 3,842
683,153 719,051

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts 318,515 296,883
Hire purchase contracts (see note 9) - 10,310
Trade creditors 301,648 269,881
Taxation and social security 118,777 119,185
Other creditors 4,680 13,309
743,620 709,568

Included in bank overdrafts is the sum of £185,182 (2022: £163,550) in respect of a debtor factoring account. The debtor factoring account is secured over specific trade debtors and by the restricted personal guarantee of Mr & Mrs Colin McAdam.

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans 135,309 268,918

AEP (Scotland) Ltd. (Registered number: SC378869)

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

9. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year - 10,310

Non-cancellable operating leases
2023 2022
£    £   
Within one year - 45,000

10. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 185,182 163,550
Bank loans 268,642 402,251
Hire purchase contracts - 10,310
453,824 576,111

Bank loans are secured by way of a floating charge over the assets of the company, cross company guarantee and a restricted personal guarantee by Colin and Aileen McAdam.

The CBILS Loan is secured under the enterprise Finance Guarantee Scheme. Interest on the loan is charged at a fixed rate. This loan is repayable by December 2025.

Hire purchase liabilities were secured over the assets being financed.

11. CONTINGENT LIABILITIES

The company has granted a corporate guarantee in favour of the bank in respect of all borrowings of its parent company, KCM Holdings (Scotland) Limited. As at 31 December 2023 these liabilities amounted to £Nil (2022: £Nil).

The company has granted a corporate guarantee, in favour of the bank, in respect of all bank borrowings of CAM Autos Limited. As at 31 December 2023 these liabilities amounted to £Nil (2022: £Nil).

12. RELATED PARTY DISCLOSURES

During the year the company entered into transactions with a company under the control of the ultimate controlling parties, Mr & Mrs McAdam, AEP Car parts SL. This company is registered and based in Alicante, Spain. Transactions during the year amounted to £7,894 (2022: £10,858). As at 31 December 2023, amounts due from this company were £2,790 (2022: £2,790).

13. ULTIMATE CONTROLLING PARTY

The company is under the joint control of Colin McAdam and Aileen McAdam by virtue of their 100% holding in the ultimate parent company KCM Holdings (Scotland) Ltd.