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REGISTERED NUMBER: SC063627 (Scotland)
















FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

NICHOL MCKAY LIMITED

NICHOL MCKAY LIMITED (REGISTERED NUMBER: SC063627)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


NICHOL MCKAY LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTOR: A Nichol



REGISTERED OFFICE: Building 190
Prestwick Airport
Monkton
Prestwick
Ayrshire
KA9 2SB



REGISTERED NUMBER: SC063627 (Scotland)



AUDITORS: McLay, McAlister & McGibbon LLP
Chartered Accountants and Statutory Auditors
145 St. Vincent Street
Glasgow
G2 5JF



BANKERS: Virgin Money
Alloway Street
AYR
KA7 1SP



SOLICITORS: Dentons UKMEA LLP
1 George Square
Glasgow
G2 1AL

NICHOL MCKAY LIMITED (REGISTERED NUMBER: SC063627)

BALANCE SHEET
31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 892,213 880,188

CURRENT ASSETS
Stocks 5 835,425 1,024,840
Debtors 6 1,792,696 1,957,195
Cash at bank 54,383 92,245
2,682,504 3,074,280
CREDITORS
Amounts falling due within one year 7 3,032,657 3,310,431
NET CURRENT LIABILITIES (350,153 ) (236,151 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

542,060

644,037

CREDITORS
Amounts falling due after more than one
year

8

97,288

238,236
NET ASSETS 444,772 405,801

CAPITAL AND RESERVES
Called up share capital 132,633 132,633
Capital redemption reserve 25,262 25,262
Retained earnings 286,877 247,906
444,772 405,801

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 Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 4 September 2024 and were signed by:





A Nichol - Director


NICHOL MCKAY LIMITED (REGISTERED NUMBER: SC063627)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

Nichol McKay 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

After making enquiries and assuming the continued support of the company's funders, the director believes that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly the accounts continue to be prepared on the going concern basis.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Land and buildings - over the term of the lease
Plant and machinery etc - 20% on reducing balance, 15% on reducing balance and over 5 years

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

The company's policy is to review the remaining useful economic lives and residual value of plant and machinery, fixtures and fittings, motor vehicles and office equipment on an on-going basis and to adjust the depreciation charge to reflect the remaining useful economic life and residual value.

Fully depreciated assets are retained in cost and related accumulated depreciation until they are removed from service. In the case of disposals, assets and related depreciation are removed from the financial statements and the net amount, less proceeds from disposal, is charged or credited to the income statement.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in, first out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.


NICHOL MCKAY LIMITED (REGISTERED NUMBER: SC063627)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued
Taxation
The tax credit for the year comprises 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.

Deferred tax
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors
Trade debtors and other debtors are recognised at the settlement amount due with appropriate allowances for any irrecoverable amounts when there is objective evidence the asset is impaired.

Trade creditors
Trade creditors and other creditors are recognised where the company has a present obligation resulting from a past event and are recognised at the settlement amount due after allowing for any trade discounts due.

Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the relevant period of borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

NICHOL MCKAY LIMITED (REGISTERED NUMBER: SC063627)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount and obligation.

Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation
A defined contribution pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as an employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 86 (2022 - 72 ) .

4. TANGIBLE FIXED ASSETS
Plant and
Land and machinery
buildings etc Totals
£    £    £   
COST
At 1 January 2023 762,535 8,780,711 9,543,246
Additions 47,116 121,623 168,739
At 31 December 2023 809,651 8,902,334 9,711,985
DEPRECIATION
At 1 January 2023 729,037 7,934,021 8,663,058
Charge for year 6,336 150,378 156,714
At 31 December 2023 735,373 8,084,399 8,819,772
NET BOOK VALUE
At 31 December 2023 74,278 817,935 892,213
At 31 December 2022 33,498 846,690 880,188

NICHOL MCKAY LIMITED (REGISTERED NUMBER: SC063627)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

4. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and
machinery
etc
£   
COST
At 1 January 2023 1,964,609
Additions 60,000
At 31 December 2023 2,024,609
DEPRECIATION
At 1 January 2023 1,481,955
Charge for year 86,998
At 31 December 2023 1,568,953
NET BOOK VALUE
At 31 December 2023 455,656
At 31 December 2022 482,654

5. STOCKS
31.12.23 31.12.22
£    £   
Raw materials 400,407 346,570
Work-in-progress 341,893 585,145
Finished goods 93,125 93,125
835,425 1,024,840

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 1,234,310 1,461,722
Other debtors 558,386 495,473
1,792,696 1,957,195

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans and overdrafts 1,110,858 1,360,035
Hire purchase contracts (see note 9) 75,901 136,206
Trade creditors 1,120,733 1,265,507
Taxation and social security 379,190 187,681
Other creditors 345,975 361,002
3,032,657 3,310,431

NICHOL MCKAY LIMITED (REGISTERED NUMBER: SC063627)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.23 31.12.22
£    £   
Bank loans 28,671 95,666
Hire purchase contracts (see note 9) 56,950 91,583
Other creditors 11,667 50,987
97,288 238,236

9. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31.12.23 31.12.22
£    £   
Net obligations repayable:
Within one year 75,901 136,206
Between one and five years 56,950 91,583
132,851 227,789

Non-cancellable operating leases
31.12.23 31.12.22
£    £   
Within one year 297,656 306,313
Between one and five years 568,556 866,212
866,212 1,172,525

NICHOL MCKAY LIMITED (REGISTERED NUMBER: SC063627)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

10. SECURED DEBTS

The following secured debts are included within creditors:

31.12.23 31.12.22
£    £   
Bank overdrafts 1,044,191 1,293,368
Other loans 31,667 51,667
Hire purchase contracts 132,851 227,789
1,208,709 1,572,824

Invoice finance creditor is denominated in £ sterling with a nominal interest rate of 9.6%. The carrying amount at the year end is £1,044,191 (2022 - £1,293,368).

The invoice finance creditor is secured by a charge over the debtor book together with a bond and floating charge over the whole of the company's assets.

Other loans with a carrying amount of £31,667 (2022 - £51,667) is denominated in £ sterling with a nominal interest rates of 6%.

Other loans are secured by a bond and floating charge over the whole of the company's assets and by personal guarantee.

Obligations under finance leases and hire purchase contracts are secured by a charge over the specific assets to which they relate.

11. DEFERRED TAX
£   
Balance at 1 January 2023 (110,309 )
Provided during year 20,224
Balance at 31 December 2023 (90,085 )

12. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Paul Martin (Senior Statutory Auditor)
for and on behalf of McLay, McAlister & McGibbon LLP

13. CONTINGENT LIABILITIES

The company has received assessments from HMRC in respect of tax planning carried out in prior years. These assessments have been appealed and postponed. No provision has been made in these financial statements as the potential liability still cannot be fully quantified.

14. CAPITAL COMMITMENTS
31.12.23 31.12.22
£    £   
Contracted but not provided for in the
financial statements 126,000 60,000

NICHOL MCKAY LIMITED (REGISTERED NUMBER: SC063627)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

15. DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 December 2023 and 31 December 2022:

31.12.23 31.12.22
£    £   
A Nichol
Balance outstanding at start of year 56,612 32,204
Amounts advanced 24,684 24,408
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 81,296 56,612

No interest is charged on this balance and is repayable on demand.

16. RELATED PARTY DISCLOSURES

Included in other debtors is a balance of £216,779 (2022 - £207,179) which relates to sums paid by the company for the Estate of Mr R. B. Nichol, former director and majority shareholder of the company. These sums will be recovered on the winding up of the Estate.