Company Registration No. SC212755 (Scotland)
HIGHLAND COLOUR COATERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
HIGHLAND COLOUR COATERS LIMITED
COMPANY INFORMATION
Directors
R Sheils
L Reed
R G Steel
G C Bulloch
I Boyle
J Macintosh
B Brown
(Appointed 1 May 2023)
Secretary
R G Steel
Company number
SC212755
Registered office
Pinefield Industrial Estate
ELGIN
IV30 6FG
Auditor
Johnston Carmichael LLP
Strathlossie House
Elgin Business Park
Kirkhill Avenue
Elgin
IV30 8DE
HIGHLAND COLOUR COATERS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
HIGHLAND COLOUR COATERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Fair review of the business

Volume of business across Galvanizing and Powder Coating remained steady for the year to 31 March 2024 but with satisfactory growth in market prices, overall turnover increased 9.75% from £8.4m to £9.2m.

 

Gross margin increased to 40.3% as a result of inflationary pressure on direct costs easing together with positive measures to improve efficiency and manage the cost base.

 

This led to an improvement in both operating profit and profit before taxation, the latter to £1.2m, a result that the directors are pleased with considering all of the market circumstances.

 

At 31 March 2024 the company had net assets of £4.7m and a balance sheet reflecting a very strong financial position.

Principal risks and uncertainties

The company is exposed to fluctuations in commodity prices as referred to above, particularly raw materials (zinc, mainly) and energy.

 

Although inflation has reduced considerably, control of some direct costs remains challenging (notably labour as referred to below) and there is a risk of negative impact on margins due to market pressure on selling prices.

 

The labour market shows little sign of improving so the difficulties in recruiting and retaining employees, particularly at factory level, are likely to persist.

 

The directors are satisfied that all available measures to monitor and manage these risks are in place.

Key performance indicators

The directors manage the main areas of the business using a broad range of key financial performance indicators designed to ensure regular, tight monitoring and control of all operational activity. These financial indicators focus mainly on revenue growth and operating margin and with regard to the latter, specific ratios to measure the effectiveness of labour and raw material consumption are analysed in detail, allowing real time management and control aspects of operational performance.

 

There are also non-financial key performance indicators used to ensure continuous improvement in Health & Safety, Quality and Environmental performance.

Future developments

Substantial capital investment is planned across the company’s buildings and plant & machinery and this together with increased commitment to measures to improve the development and wellbeing of people will enable strategic and operational objectives to be achieved.

On behalf of the board

R G Steel
Director
2 October 2024
HIGHLAND COLOUR COATERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

The directors present their report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company is that of the supply of galvanizing, powder coating and the duplex service combining these processes, "Colourgalv".

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £1,000,000. The directors do not recommend payment of a further dividend.

No preference dividends were paid.

Directors

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

R Sheils
L Reed
R G Steel
G C Bulloch
I Boyle
J Macintosh
B Brown
(Appointed 1 May 2023)
Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the strategic report, directors' 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 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.

HIGHLAND COLOUR COATERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Information contained within the Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Directors' Report. It has done so in respect of future developments.

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.

On behalf of the board
R G Steel
Director
2 October 2024
HIGHLAND COLOUR COATERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HIGHLAND COLOUR COATERS LIMITED
- 4 -
Opinion

We have audited the financial statements of Highland Colour Coaters Limited (the 'company') for the year ended 31 March 2024 which comprise of the statement of comprehensive income, balance sheet, statement of changes in equity 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 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:

 

HIGHLAND COLOUR COATERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HIGHLAND COLOUR COATERS LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of our 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 and 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 directors' responsibilities statement, set out on page 2, 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 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.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: http://frc.org.uk/auditorsresponsibilities. The description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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.

 

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

 

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

HIGHLAND COLOUR COATERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HIGHLAND COLOUR COATERS LIMITED
- 6 -

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and the sector in which it operates, focusing on provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

 

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of submitted returns, external inspections, relevant correspondence with regulatory bodies and board meeting minutes.

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

 

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:    

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

 

 

HIGHLAND COLOUR COATERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HIGHLAND COLOUR COATERS LIMITED
- 7 -

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.

Martin Bannerman (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
9 October 2024
Statutory Auditor
Strathlossie House
Elgin Business Park
Kirkhill Avenue
Elgin
IV30 8DE
HIGHLAND COLOUR COATERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
9,188,479
8,371,862
Cost of sales
(5,484,669)
(5,277,364)
Gross profit
3,703,810
3,094,498
Distribution costs
(733,201)
(704,408)
Administrative expenses
(1,810,701)
(1,451,047)
Other operating income
30,840
30,840
Operating profit
4
1,190,748
969,883
Interest payable and similar expenses
7
(36,124)
(30,000)
Profit before taxation
1,154,624
939,883
Tax on profit
8
(312,793)
(177,601)
Profit for the financial year
841,831
762,282
Total comprehensive income for the year
841,831
762,282

The statement of comprehensive income account has been prepared on the basis that all operations are continuing operations.

HIGHLAND COLOUR COATERS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,506,674
2,666,316
Investments
11
98
98
2,506,772
2,666,414
Current assets
Stocks
13
650,736
696,114
Debtors
14
1,818,563
1,715,370
Cash at bank and in hand
1,623,850
1,291,202
4,093,149
3,702,686
Creditors: amounts falling due within one year
15
(1,595,396)
(1,172,112)
Net current assets
2,497,753
2,530,574
Total assets less current liabilities
5,004,525
5,196,988
Creditors: amounts falling due after more than one year
16
(184,515)
(215,355)
Provisions for liabilities
Deferred tax liability
17
153,638
157,092
(153,638)
(157,092)
Net assets
4,666,372
4,824,541
Capital and reserves
Called up share capital
20
1,000,000
1,000,000
Profit and loss reserves
3,666,372
3,824,541
Total equity
4,666,372
4,824,541
The financial statements were approved by the board of directors and authorised for issue on 2 October 2024 and are signed on its behalf by:
G C Bulloch
Director
Company Registration No. SC212755
HIGHLAND COLOUR COATERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
1,000,000
4,062,259
5,062,259
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
762,282
762,282
Dividends
9
-
(1,000,000)
(1,000,000)
Balance at 31 March 2023
1,000,000
3,824,541
4,824,541
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
841,831
841,831
Dividends
9
-
(1,000,000)
(1,000,000)
Balance at 31 March 2024
1,000,000
3,666,372
4,666,372
HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
1
Accounting policies
Company information

Highland Colour Coaters Limited is a private company limited by shares incorporated and domiciled in Scotland. The registered office is Pinefield Industrial Estate, ELGIN, IV30 6FG.

1.1
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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent

of that group prepares publicly available consolidated financial statements, including this company, which are

intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group.

 

The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

Highland Colour Coaters Limited is a wholly owned subsidiary of Highland Metals Limited and the results of Highland Colour Coaters Limited are included in the consolidated financial statements of Highland Metal Developments Limited, which are publicly available.

1.2
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.

1.3
Turnover
Turnover represents amounts receivable for galvanizing and powder coating services net of VAT and trade discounts. Turnover is recognised at the point of despatch.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Freehold buildings
- Straight line over 25 years
Plant and machinery
- Straight line over 4 to 10 years
Fixtures, fittings & equipment
- Straight line over 4 to 10 years

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 the profit and loss account.

 

Land is not depreciated.

1.5
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the profit and loss account.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.6
Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.7
Stocks

Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises the invoiced price of goods and materials on a first in first out basis. The cost of work in progress comprises materials, direct labour and attributable production overheads.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit and loss account. Reversals of impairment losses are also recognised in the profit and loss account.

1.8
Cash and cash equivalents

Cash and cash equivalents include cash in hand.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs.

HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

Financial assets 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. The impairment loss is recognised in the profit and loss account.

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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, are recognised at transaction price.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less.

Derecognition of financial liabilities

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

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is provided in full on timing differences which result in an obligation at the balance sheet date to pay more tax, or right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the financial statements. Deferred tax assets are recognised to the extent that it is regarded as more likely than not they will be recovered. Deferred tax assets and liabilities are not discounted.

HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Government grants

Government grants are recognised in accordance with the accruals model. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock

The calculation of the value of the zinc held in the kettle of £423,870 (2023 - £455,570) which is included within raw materials and consumables stock, is based on the total quantity held, which remains relatively constant and which in turn is made up of the estimated tonnage of zinc itself (valued at cost) and the estimated tonnage of residues (valued at estimated realisable value).

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Galvanizing services
6,939,141
6,367,401
Powder coating services
2,249,338
2,004,461
9,188,479
8,371,862
HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 15 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
9,188,479
8,371,862
2024
2023
£
£
Other significant revenue
Grants received
30,840
30,840
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(30,840)
(30,840)
Fees payable to the company's auditor for the audit of the company's financial statements
13,750
12,500
Depreciation of owned tangible fixed assets
324,948
316,939
(Profit)/loss on disposal of tangible fixed assets
(610)
390

The company has taken advantage of the exemption from the disclosure of remuneration paid to its auditors for non-audit services. This exemption is available to the company as it prepares consolidated accounts which are required to include such disclosures in those accounts.

5
Employees

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

2024
2023
Number
Number
Office
12
12
Factory
65
61
Total
77
73

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,795,642
2,374,572
Social security costs
265,924
239,561
Pension costs
132,304
79,094
3,193,870
2,693,227
HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
315,532
239,925
Company pension contributions to defined contribution schemes
56,001
6,704
371,533
246,629

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
82,272
76,340
Company pension contributions to defined contribution schemes
50,510
3,854
7
Interest payable and similar expenses
2024
2023
£
£
Other interest
36,124
30,000
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
331,598
199,169
Adjustments in respect of prior periods
(15,351)
(30,703)
Total current tax
316,247
168,466
Deferred tax
Origination and reversal of timing differences
(3,439)
9,135
Adjustment in respect of prior periods
(15)
-
0
Total deferred tax
(3,454)
9,135
Total tax charge
312,793
177,601
HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Taxation
(Continued)
- 17 -

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:

2024
2023
£
£
Profit before taxation
1,154,624
939,883
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
288,656
178,578
Adjustments in respect of prior years
(15,351)
(30,703)
Deferred tax adjustments in respect of prior years
(15)
-
0
Adjustment to brought forward values
-
0
2,266
Deferred tax adjusted to the closing rate
-
0
2,192
Fixed asset differences
39,503
25,268
Taxation charge for the year
312,793
177,601

An increase in the UK corporation tax rate from 19% to 25% (effective from 1 April 2023) was substantively enacted on 24 May 2021.

 

Deferred tax has been calculated using the rate effective in the period it is expected to reverse.

9
Dividends
2024
2023
£
£
Final paid
1,000,000
1,000,000
HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
10
Tangible fixed assets
Freehold land and buildings
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 April 2023
4,673,534
3,128,579
49,349
7,851,462
Additions
-
0
169,250
4,196
173,446
Disposals
-
0
(8,880)
-
0
(8,880)
At 31 March 2024
4,673,534
3,288,949
53,545
8,016,028
Depreciation and impairment
At 1 April 2023
2,658,224
2,487,059
39,863
5,185,146
Depreciation charged in the year
180,980
135,619
8,349
324,948
Eliminated in respect of disposals
-
0
(740)
-
0
(740)
At 31 March 2024
2,839,204
2,621,938
48,212
5,509,354
Carrying amount
At 31 March 2024
1,834,330
667,011
5,333
2,506,674
At 31 March 2023
2,015,310
641,520
9,486
2,666,316

Freehold land with a cost of £178,398 (2023 - £178,398) has not been depreciated.

11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
98
98
Movements in fixed asset investments
Shares in group undertakings
£
Cost
At 1 April 2023 & 31 March 2024
98
Carrying amount
At 31 March 2024
98
At 31 March 2023
98
HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
12
Subsidiaries

These financial statements are separate company financial statements for Highland Colour Coaters Limited.

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Highland Galvanizers Limited
See below
Dormant
Ordinary
98.00
-
The registered office address of the subsidiaries is Pinefield Industrial Estate, Elgin, IV30 6FG.
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Highland Galvanizers Limited
100

 

13
Stocks
2024
2023
£
£
Raw materials and consumables
642,876
680,381
Work in progress
7,860
15,733
650,736
696,114
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,599,977
1,669,986
Amounts owed by group undertakings
164,818
-
0
Other debtors
53,768
45,384
1,818,563
1,715,370
HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
748,408
356,569
Amounts owed to group undertakings
-
0
52,105
Corporation tax
172,123
198,912
Other taxation and social security
294,964
267,572
Accruals and deferred income
379,901
296,954
1,595,396
1,172,112
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Government grants
18
184,515
215,355
17
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
159,635
158,143
Other timing differences
(5,997)
(1,051)
153,638
157,092
2024
Movements in the year:
£
Liability at 1 April 2023
157,092
Credit to profit or loss
(3,454)
Liability at 31 March 2024
153,638

 

18
Government grants
2024
2023
£
£
Arising from government grants
184,515
215,355
HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
18
Government grants
(Continued)
- 21 -

The company received an initial government grant in 2003 of £480,000, which is amortised over 25 years, with a balance of £93,992 included in the total above at the year end. The conditions of the grant have been satisfied.

 

A further grant was received in 2012 of £187,500, which has also been amortised over 25 years, with a balance of £90,523 included in the total above at the year end.

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
132,304
79,094

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.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
120,000
120,000
120,000
120,000
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Redeemable convertible preference shares of £1 each
880,000
880,000
880,000
880,000
Preference shares classified as equity
880,000
880,000
Total equity share capital
1,000,000
1,000,000

The 10% non voting redeemable convertible preference shares are redeemable at the option of the company and there is no premium on redemption.

21
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
143,000
-
HIGHLAND COLOUR COATERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
22
Related party transactions
Transactions with related parties

The company has taken advantage of the exemption available within FRS 102 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.

23
Ultimate controlling party

The company is a subsidiary of Highland Metals Limited. The ultimate parent company is Highland Metal Developments Limited, which heads the only group for which consolidated financial statements have been prepared. Copies of these results are publicly available and can be obtained from the Registrar of Companies at Companies House using https://find-and-update.company-information.service.gov.uk/.

 

 

 

 

 

 

2024-03-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.200falsefalseSC2127552023-04-012024-03-31SC212755bus:Director12023-04-012024-03-31SC212755bus:Director22023-04-012024-03-31SC212755bus:Director32023-04-012024-03-31SC212755bus:Director42023-04-012024-03-31SC212755bus:Director52023-04-012024-03-31SC212755bus:Director62023-04-012024-03-31SC212755bus:Director72023-04-012024-03-31SC212755bus:CompanySecretary12023-04-012024-03-31SC212755bus:RegisteredOffice2023-04-012024-03-31SC2127552024-03-31SC2127552022-04-012023-03-31SC212755core:RetainedEarningsAccumulatedLosses2022-04-012023-03-31SC212755core:RetainedEarningsAccumulatedLosses2023-04-012024-03-31SC2127552023-03-31SC212755core:LandBuildingscore:OwnedOrFreeholdAssets2024-03-31SC212755core:PlantMachinery2024-03-31SC212755core:FurnitureFittings2024-03-31SC212755core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-31SC212755core:PlantMachinery2023-03-31SC212755core:FurnitureFittings2023-03-31SC212755core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-31SC212755core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-31SC212755core:Non-currentFinancialInstrumentscore:AfterOneYear2024-03-31SC212755core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-31SC212755core:CurrentFinancialInstruments2024-03-31SC212755core:CurrentFinancialInstruments2023-03-31SC212755core:ShareCapital2024-03-31SC212755core:ShareCapital2023-03-31SC212755core:RetainedEarningsAccumulatedLosses2024-03-31SC212755core:RetainedEarningsAccumulatedLosses2023-03-31SC212755core:ShareCapital2022-03-31SC212755core:RetainedEarningsAccumulatedLosses2022-03-31SC2127552022-03-31SC212755core:LandBuildingscore:OwnedOrFreeholdAssets2023-04-012024-03-31SC212755core:PlantMachinery2023-04-012024-03-31SC212755core:FurnitureFittings2023-04-012024-03-31SC21275512023-04-012024-03-31SC21275512022-04-012023-03-31SC212755core:UKTax2023-04-012024-03-31SC212755core:UKTax2022-04-012023-03-31SC21275522023-04-012024-03-31SC21275522022-04-012023-03-31SC21275532023-04-012024-03-31SC21275532022-04-012023-03-31SC212755core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-31SC212755core:PlantMachinery2023-03-31SC212755core:FurnitureFittings2023-03-31SC2127552023-03-31SC212755core:Non-currentFinancialInstruments2024-03-31SC212755core:Non-currentFinancialInstruments2023-03-31SC21275512023-04-012024-03-31SC212755bus:PrivateLimitedCompanyLtd2023-04-012024-03-31SC212755bus:FRS1022023-04-012024-03-31SC212755bus:Audited2023-04-012024-03-31SC212755bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP