Company registration number SC190122 (Scotland)
CONTRACT SCOTLAND LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CONTRACT SCOTLAND LIMITED
COMPANY INFORMATION
Directors
Mr J-P Toner
Mr AM Shave
Mrs JA Fleming
Secretary
Ms AM Fotheringham
Company number
SC190122
Registered office
Scotia House
Castle Business Park
Stirling
Scotland
FK9 4TZ
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
CONTRACT SCOTLAND LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 20
CONTRACT SCOTLAND LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

 

Review of the business

On the whole, 2023 was an underwhelming year with conditions across the year less favourable than anticipated.

 

In the face of ongoing challenges and some unforeseen disruption, various decisions were made as to the deployment and redeployment of staffing resources which resulted in the company trading profitably across the year. This last quarter of the year saw us make our first hire in the North of England, as we looked to introduce our service offering to clients and candidates south of the border under the trading name CS Construction Staffing.

 

The strategic focus of the of the year was the roll out of our 5 year plan which, notwithstanding circumstances beyond our control, will see us grow our market share of recruitment activity across the Construction, Engineering and Property sectors in Scotland, geographically expand our service office both internationally and domestically and continue to develop our Business Support Services and CS Executive divisions.

Principal risks and uncertainties

The company has an established, structured approach to risk management.

 

The company's activities expose it to a variety of financial risks, including effects of credit, liquidity and cash flows. The company has adopted risk management policies that seek to mitigate these risks in a cost effective manner. Financial assets that expose the company to financial risk consist primarily of trade debtors and cash. Financial liabilities that expose the company to financial risk consist primarily of trade creditors.

 

CREDIT RISK

Credit risk is the loss in the value of financial assets due to counterparties failing to meet all or part of their obligations. The company performs ongoing credit evaluations of its customer's financial condition.

 

LIQUIDITY RISK

Liquidity risk is the risk that the company does not have sufficient liquid assets to meet its obligations as they fall due. Liquidity is maintained at the prudent level and the company ensure there is adequate liquidity buffer to cover contingencies. The company maintains sufficient cash and credit lines to meet its funding requirements.

Key performance indicators

The company uses a number of performance related indicators, both non-financial and financial, to ensure that the company's activities are monitored and controlled effectively. The main financial key performance indicators (KPI's) used by the company are: Turnover Trend Analysis and Gross Profit Margin Review, both on a company wide basis and in relation to individual contracts. During the year ended 31 December 2023 the Directors have monitored and reviewed the company's activities against these financial key performance indicators and they are satisfied that this will provide sustainability and opportunities for 2024 and beyond.

On behalf of the board

 

 

Mr J-P Toner
Director
19 September 2024
CONTRACT SCOTLAND LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company during the year was acting as an Employment Agency and as an Employment Business to the Scottish Construction and Associated Industries.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £650,220. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

 

Mr J-P Toner
Mr AM Shave
Mrs JA Fleming
Auditor

The auditors, Robson Laidler Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report 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). 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:

 

 

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 of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

CONTRACT SCOTLAND LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
Mr J-P Toner
Director
19 September 2024
CONTRACT SCOTLAND LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CONTRACT SCOTLAND LIMITED
- 4 -
Opinion

We have audited the financial statements of Contract Scotland Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

CONTRACT SCOTLAND LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CONTRACT SCOTLAND LIMITED
- 5 -
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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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.

Auditor's 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 an auditor's report 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.

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:

The risk of material misstatement due to error or fraud has been assessed in conjunction with internal controls to mitigate any such risk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant.

 

Manual journal entries are scrutinised by data analytics software used as part of the audit, this software was also used to analyse bank transactions.

 

The laws and regulations which are considered to be significant to the entity relate to health and safety and legislation with regards to temporary workers. Discussions are held with management to determine whether any breaches have occurred as well as legal expenditure being scrutinised for any evidence on non-compliance.

 

The audit was considered capable of identifying irregularities only to the extent of the substantive testing performed and from discussions with management.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

CONTRACT SCOTLAND LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CONTRACT SCOTLAND LIMITED
- 6 -

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 an auditor's report 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.

Michael T Moran BA FCA (Senior Statutory Auditor)
For and on behalf of Robson Laidler Accountants Limited
23 September 2024
Statutory Auditor
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
CONTRACT SCOTLAND LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
1
11,328,576
11,778,024
Cost of sales
(9,078,585)
(9,294,951)
Gross profit
2,249,991
2,483,073
Administrative expenses
(1,764,716)
(1,757,295)
Other operating income
6,966
11,046
Operating profit
3
492,241
736,824
Interest receivable and similar income
5
95
174
Interest payable and similar expenses
6
(30,259)
(8,003)
Profit before taxation
462,077
728,995
Tax on profit
8
(108,278)
(130,003)
Profit for the financial year
353,799
598,992

The profit and loss account has been prepared on the basis that all operations are continuing operations.

CONTRACT SCOTLAND LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
324,376
341,217
Current assets
Debtors
11
2,000,845
2,128,724
Cash at bank and in hand
141,588
163,775
2,142,433
2,292,499
Creditors: amounts falling due within one year
12
(1,164,464)
(1,031,230)
Net current assets
977,969
1,261,269
Total assets less current liabilities
1,302,345
1,602,486
Provisions for liabilities
Deferred tax liability
13
18,865
22,585
(18,865)
(22,585)
Net assets
1,283,480
1,579,901
Capital and reserves
Called up share capital
15
116
116
Share premium account
14,934
14,934
Capital redemption reserve
22
22
Profit and loss reserves
1,268,408
1,564,829
Total equity
1,283,480
1,579,901

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 19 September 2024 and are signed on its behalf by:
Mr J-P Toner
Director
Company registration number SC190122 (Scotland)
CONTRACT SCOTLAND LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
116
14,934
22
4,226,245
4,241,317
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
598,992
598,992
Dividends
9
-
-
-
(3,260,408)
(3,260,408)
Balance at 31 December 2022
116
14,934
22
1,564,829
1,579,901
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
353,799
353,799
Dividends
9
-
-
-
(650,220)
(650,220)
Balance at 31 December 2023
116
14,934
22
1,268,408
1,283,480
CONTRACT SCOTLAND LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
804,581
3,396,827
Interest paid
(30,259)
(8,003)
Income taxes paid
(138,246)
(141,481)
Net cash inflow from operating activities
636,076
3,247,343
Investing activities
Purchase of tangible fixed assets
(8,138)
(32,705)
Interest received
95
174
Net cash used in investing activities
(8,043)
(32,531)
Financing activities
Dividends paid
(650,220)
(3,260,408)
Net cash used in financing activities
(650,220)
(3,260,408)
Net decrease in cash and cash equivalents
(22,187)
(45,596)
Cash and cash equivalents at beginning of year
163,775
209,371
Cash and cash equivalents at end of year
141,588
163,775
CONTRACT SCOTLAND LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
11,328,576
11,778,024
2023
2022
£
£
Other revenue
Interest income
95
174
2
Accounting policies
Company information

Contract Scotland Limited is a private company limited by shares incorporated in Scotland. The registered office is Scotia House, Castle Business Park, Stirling, Scotland, FK9 4TZ.

2.1
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.

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.

2.2
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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

2.3
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, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

The revenues arising from temporary personnel services are recognised when the services are rendered. Revenues from permanent placement services are recognised at the time the candidate begins full time employment.

 

Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

CONTRACT SCOTLAND LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 12 -
2.4
Tangible fixed assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

 

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

 

Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure.

 

Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.

 

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

 

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

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:

Freehold land and buildings
Not depreciated
Fixtures and fittings
10 - 33.3% straight line basis

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.

2.5
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.

2.6
Financial instruments
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

CONTRACT SCOTLAND LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

2.7
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.

CONTRACT SCOTLAND LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 14 -
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.

2.8
Retirement benefits

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in the period in which is arises.

2.9
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

3
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
810
(3,111)
Fees payable to the company's auditor for the audit of the company's financial statements
16,280
18,900
Depreciation of owned tangible fixed assets
24,979
30,616
(Profit)/loss on disposal of tangible fixed assets
-
10,921
Operating lease charges
60,279
104,771
CONTRACT SCOTLAND LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
4
Employees

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

2023
2022
Number
Number
Direct staff
31
27
Employed workers supplied to customers
40
42
Total
71
69

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,095,778
3,546,508
Social security costs
328,086
385,713
Pension costs
63,889
98,242
3,487,753
4,030,463
5
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
95
174
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
95
174
6
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on invoice finance arrangements
30,259
8,003
CONTRACT SCOTLAND LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
72,102
90,142
Company pension contributions to defined contribution schemes
-
20,000
72,102
110,142

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2022 - 2).

8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
111,998
138,246
Deferred tax
Origination and reversal of timing differences
(3,720)
(8,243)
Total tax charge
108,278
130,003

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
462,077
728,995
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
108,681
138,509
Tax effect of expenses that are not deductible in determining taxable profit
1,479
1,354
Group relief
(1,623)
(958)
Permanent capital allowances in excess of depreciation
3,461
(659)
Movement in deferred tax
(3,720)
(8,243)
Taxation charge for the year
108,278
130,003
9
Dividends
2023
2022
£
£
Interim paid
650,220
3,260,408
CONTRACT SCOTLAND LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
10
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2023
240,000
345,600
585,600
Additions
-
0
8,138
8,138
At 31 December 2023
240,000
353,738
593,738
Depreciation and impairment
At 1 January 2023
-
0
244,383
244,383
Depreciation charged in the year
-
0
24,979
24,979
At 31 December 2023
-
0
269,362
269,362
Carrying amount
At 31 December 2023
240,000
84,376
324,376
At 31 December 2022
240,000
101,217
341,217
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,344,039
1,350,348
Amounts owed by group undertakings
483,016
650,220
Other debtors
3,460
13,549
Prepayments and accrued income
170,330
114,607
2,000,845
2,128,724
12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
61,751
72,500
Corporation tax
111,998
138,246
Other taxation and social security
365,061
438,393
Other creditors
496,492
243,112
Accruals and deferred income
129,162
138,979
1,164,464
1,031,230
CONTRACT SCOTLAND LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
13
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
18,865
22,585
2023
Movements in the year:
£
Liability at 1 January 2023
22,585
Credit to profit or loss
(3,720)
Liability at 31 December 2023
18,865

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to unwind.

14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
63,889
98,242

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

CONTRACT SCOTLAND LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
11,561
11,561
116
116
16
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
90,772
88,732
Between two and five years
131,010
167,200
221,782
255,932
18
Ultimate controlling party

The company is a wholly owned subsidiary of Contract Scotland Holdings Limited and the controlling party is Mr J-P Toner.

19
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
353,799
598,992
Adjustments for:
Taxation charged
108,278
130,003
Finance costs
30,259
8,003
Investment income
(95)
(174)
(Gain)/loss on disposal of tangible fixed assets
-
10,921
Depreciation and impairment of tangible fixed assets
24,979
30,616
Decrease in provisions
-
0
(42,000)
Movements in working capital:
Decrease in debtors
127,879
2,930,891
Increase/(decrease) in creditors
159,482
(270,425)
Cash generated from operations
804,581
3,396,827
CONTRACT SCOTLAND LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
20
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
163,775
(22,187)
141,588
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