REGISTERED NUMBER: SC260654 (Scotland) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 September 2023 |
for |
Braidwood (Metals) Limited |
REGISTERED NUMBER: SC260654 (Scotland) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 September 2023 |
for |
Braidwood (Metals) Limited |
Braidwood (Metals) Limited (Registered number: SC260654) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 September 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 7 |
Consolidated Other Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 16 |
Braidwood (Metals) Limited |
Company Information |
for the Year Ended 30 September 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
25 Castle Terrace |
Edinburgh |
EH1 2ER |
Braidwood (Metals) Limited (Registered number: SC260654) |
Group Strategic Report |
for the Year Ended 30 September 2023 |
The directors present their strategic report of the company and the group for the year ended 30 September 2023. |
The principal activity of the group in the year under review was that of scrap metal processing and letting of commercial properties. |
REVIEW OF BUSINESS |
Angus Braidwood & Son Limited, the trading subsidiary, carries on business buying, processing and selling scrap metals for recycling. |
The board monitors the progress of the company by reference to the following key performance indicators: |
Turnover has fallen by 10% (2022: risen by 5%] whilst gross profit margin has risen by 1% to 20% (2022: 19%). This drop in turnover was offset by a 50% increase in other income, mainly rental income, following a significant investment in additional land and buildings for commercial letting. Overheads increased slightly in line with inflation resulting in an overall increase in pre tax profits of 6%. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main risks that affect the group are the general economic position of the UK and of the overseas countries that import scrap metal from the UK. However the directors believe that the company is well placed to face the current difficult trading conditions. In order to maintain liquidity the company makes use of an overdraft facility with its bank, short term funding by means of a director's loan and a 5 year fixed rate loan from the bank. |
FUTURE DEVELOPMENTS |
Angus Braidwood & Son Limited continues to explore and invest in innovative procedures, techniques and technologies for the benefit of the business and the community.The company having diversified and expanded the investment property portfolio aims to spread the risk exposure to the scrap metal markets. |
ON BEHALF OF THE BOARD: |
Braidwood (Metals) Limited (Registered number: SC260654) |
Report of the Directors |
for the Year Ended 30 September 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 September 2023. |
DIVIDENDS |
An interim dividend of £ 4,000 per share was paid on 31 December 2022. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 30 September 2023 will be £ 4,000,000 . |
DIRECTORS |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Braidwood (Metals) Limited |
Opinion |
We have audited the financial statements of Braidwood (Metals) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Braidwood (Metals) Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Braidwood (Metals) Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory framework applicable to the company, identified the principal risks of non-compliance and the extent to which non-compliance may impact on the company's ability to continue trading and risk a material misstatement in the financial statements. |
We evaluated management's incentive and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks related to the misstatement of revenue and valuation of assets. |
Based on this understanding we designed our audit procedures to identify irregularities. Our procedures involved the following: |
- In relation to laws and regulations, we enquired of senior management a) the procedures in place for ensuring compliance and b) their knowledge of any non-compliance or potential non-compliance which could affect the financial statements. We also confirmed with management that there were no known instances of fraud. |
- We reviewed minutes of meetings of management and those charged with governance. |
- We challenged judgements made by management in its significant accounting policies and estimates. |
- We addressed the risk of management override of controls. This included the testing of journal entries and the evaluation of significant transactions outside the norms course of business. |
- Our work on revenue included substantive testing of sales invoices, cash received and credits raised post year end. |
- Our work on expenditure included substantive testing of purchase invoices, cash received and credits raised post year end. |
- Our work on the valuation of assets included assessing the company's depreciation policy on fixed assets and whether it is in line with industry practice. We also reviewed the performance of related party companies to assess management's valuation and recoverability of loans included as other loans. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
25 Castle Terrace |
Edinburgh |
EH1 2ER |
Braidwood (Metals) Limited (Registered number: SC260654) |
Consolidated Income Statement |
for the Year Ended 30 September 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 4 | 13,495,671 | 14,941,714 |
Cost of sales | 10,735,124 | 12,078,417 |
GROSS PROFIT | 2,760,547 | 2,863,297 |
Distribution costs | 10,383 | 24,947 |
Administrative expenses | 1,844,743 | 1,764,421 |
1,855,126 | 1,789,368 |
905,421 | 1,073,929 |
Other operating income | 5 | 795,129 | 525,305 |
OPERATING PROFIT | 1,700,550 | 1,599,234 |
Interest receivable and similar income | 161 | - |
1,700,711 | 1,599,234 |
Interest payable and similar expenses | 7 | 19,316 | 20,369 |
PROFIT BEFORE TAXATION | 8 | 1,681,395 | 1,578,865 |
Tax on profit | 9 | 445,721 | 375,003 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,235,674 | 1,203,862 |
Braidwood (Metals) Limited (Registered number: SC260654) |
Consolidated Other Comprehensive Income |
for the Year Ended 30 September 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,235,674 | 1,203,862 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,235,674 |
1,203,862 |
Total comprehensive income attributable to: |
Owners of the parent | 1,235,674 | 1,203,862 |
Braidwood (Metals) Limited (Registered number: SC260654) |
Consolidated Balance Sheet |
30 September 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 415,397 | 715,785 |
Tangible assets | 13 | 1,249,275 | 676,685 |
Investments | 14 | - | - |
Investment property | 15 | 3,325,586 | 1,927,359 |
4,990,258 | 3,319,829 |
CURRENT ASSETS |
Stocks | 16 | 2,938,390 | 2,528,252 |
Debtors | 17 | 1,542,037 | 1,594,974 |
Cash at bank | 83,566 | 94,062 |
4,563,993 | 4,217,288 |
CREDITORS |
Amounts falling due within one year | 18 | 8,014,895 | 3,128,953 |
NET CURRENT (LIABILITIES)/ASSETS | (3,450,902 | ) | 1,088,335 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
1,539,356 |
4,408,164 |
CREDITORS |
Amounts falling due after more than one year |
19 |
(318,478 |
) |
(500,008 |
) |
PROVISIONS FOR LIABILITIES | 21 | (203,489 | ) | (126,441 | ) |
NET ASSETS | 1,017,389 | 3,781,715 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 1,000 | 1,000 |
Retained earnings | 23 | 1,016,389 | 3,780,715 |
SHAREHOLDERS' FUNDS | 1,017,389 | 3,781,715 |
The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2024 and were signed on its behalf by: |
T McIntyre - Director |
A M Braidwood - Director |
Braidwood (Metals) Limited (Registered number: SC260654) |
Company Balance Sheet |
30 September 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
Investment property | 15 |
CREDITORS |
Amounts falling due within one year | 18 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 4,000,000 | 2,500,000 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Braidwood (Metals) Limited (Registered number: SC260654) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 September 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 October 2021 | 1,000 | 5,076,853 | 5,077,853 |
Changes in equity |
Dividends | - | (2,500,000 | ) | (2,500,000 | ) |
Total comprehensive income | - | 1,203,862 | 1,203,862 |
Balance at 30 September 2022 | 1,000 | 3,780,715 | 3,781,715 |
Changes in equity |
Dividends | - | (4,000,000 | ) | (4,000,000 | ) |
Total comprehensive income | - | 1,235,674 | 1,235,674 |
Balance at 30 September 2023 | 1,000 | 1,016,389 | 1,017,389 |
Braidwood (Metals) Limited (Registered number: SC260654) |
Company Statement of Changes in Equity |
for the Year Ended 30 September 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 October 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 September 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 September 2023 |
Braidwood (Metals) Limited (Registered number: SC260654) |
Consolidated Cash Flow Statement |
for the Year Ended 30 September 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,729,179 | 946,488 |
Interest paid | (19,316 | ) | (20,459 | ) |
Interest element of hire purchase or finance lease rental payments paid |
- |
90 |
Tax paid | (473,631 | ) | (372,126 | ) |
Net cash from operating activities | 1,236,232 | 553,993 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (734,434 | ) | (270,764 | ) |
Purchase of investment property | (1,453,169 | ) | - |
Sale of tangible fixed assets | 19,010 | 4,836 |
Interest received | 161 | - |
Net cash from investing activities | (2,168,432 | ) | (265,928 | ) |
Cash flows from financing activities |
Loan repayments in year | (176,789 | ) | (172,049 | ) |
Amount introduced by directors | 4,896,999 | 1,233,405 |
Equity dividends paid | (4,000,000 | ) | (2,500,000 | ) |
Net cash from financing activities | 720,210 | (1,438,644 | ) |
Decrease in cash and cash equivalents | (211,990 | ) | (1,150,579 | ) |
Cash and cash equivalents at beginning of year |
2 |
(127,334 |
) |
1,023,245 |
Cash and cash equivalents at end of year | 2 | (339,324 | ) | (127,334 | ) |
Braidwood (Metals) Limited (Registered number: SC260654) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 September 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 1,681,395 | 1,578,865 |
Depreciation charges | 506,628 | 457,859 |
(Profit)/loss on disposal of fixed assets | (8,464 | ) | 2,574 |
Finance costs | 19,316 | 20,369 |
Finance income | (161 | ) | - |
2,198,714 | 2,059,667 |
Increase in stocks | (410,138 | ) | (243,408 | ) |
Decrease/(increase) in trade and other debtors | 52,937 | (834,690 | ) |
Decrease in trade and other creditors | (112,334 | ) | (35,081 | ) |
Cash generated from operations | 1,729,179 | 946,488 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 September 2023 |
30.9.23 | 1.10.22 |
£ | £ |
Cash and cash equivalents | 83,566 | 94,062 |
Bank overdrafts | (422,890 | ) | (221,396 | ) |
(339,324 | ) | (127,334 | ) |
Year ended 30 September 2022 |
30.9.22 | 1.10.21 |
£ | £ |
Cash and cash equivalents | 94,062 | 1,023,245 |
Bank overdrafts | (221,396 | ) | - |
(127,334 | ) | 1,023,245 |
Braidwood (Metals) Limited (Registered number: SC260654) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 September 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.10.22 | Cash flow | At 30.9.23 |
£ | £ | £ |
Net cash |
Cash at bank | 94,062 | (10,496 | ) | 83,566 |
Bank overdrafts | (221,396 | ) | (201,494 | ) | (422,890 | ) |
(127,334 | ) | (211,990 | ) | (339,324 | ) |
Debt |
Debts falling due within 1 year | (172,049 | ) | (4,741 | ) | (176,790 | ) |
Debts falling due after 1 year | (500,008 | ) | 181,530 | (318,478 | ) |
(672,057 | ) | 176,789 | (495,268 | ) |
Total | (799,391 | ) | (35,201 | ) | (834,592 | ) |
Braidwood (Metals) Limited (Registered number: SC260654) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 September 2023 |
1. | STATUTORY INFORMATION |
Braidwood (Metals) Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention, except for investment properties which are stated at fair value. |
Going concern |
The group has consistently over recent years been making strong profits enabling large dividends to be paid to the shareholder in recent years. Group net current liabilities stand at £3.45m (2022: £1.1m net current assets) the change is due to the directors loan account increasing to £6.5m, having financed the property acquisitions in the year and introduced additional funding. No terms have been agreed on this loan hence it is classified as repayable under 1 year. The directors continue to provide support and funding to the group to further grow the business and to meet the day to day financial requirements. |
The group has seen it's net assets drop to £1m from £3.8m as a result of the payment of a £4m dividend in the year to the shareholder, though future profits are expected to continue to rebuild reserves to a stronger level. |
The directors, with their financial support, consider that it is appropriate to prepare the accounts on the going concern basis. |
Significant judgements and estimates |
Preparing the financial statements may require the directors to make significant judgements and estimates. The assertions in the financial statements where the judgements and estimates are applied include the valuation of stock and fair value of investment properties. The directors assess the value of stock at the end of each accounting period based on published trade prices and historic cost, utilising their many years of experience to reasonably estimate the quantities in stock.The directors have made key assumptions in the determination of the fair value of the investment properties in respect of the state of the property market in the location where the property is situated and in respect of the range of reasonable fair value estimates of the asset. |
Turnover |
Turnover represents the value, net of value added tax and discounts, of amounts invoiced during the year in respect of goods and services provided to customers falling within the company's ordinary activities and is recognised when stock is despatched. Rental income is recognised on the accruals, time apportioned basis. |
Goodwill |
Goodwill, being the amount paid in connection with the past acquisition of a businesses, is being amortised evenly over its estimated useful life of ten - twenty years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Braidwood (Metals) Limited (Registered number: SC260654) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
Land and Buildings 2% straight line |
Property improvements 10% straight line |
Plant and machinery 25% reducing balance |
Motor vehicles 25% reducing balance |
Impairment of tangible fixed assets |
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss. |
If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss. |
Investment property |
Investment property is shown at fair value. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks are valued at the lower of cost and net realisable value. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price. The impairment loss is recognised immediately in the consolidated income statement. |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, bank overdraft and loan from related parties. |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. |
Loans from related parties which are basic financial instruments with no stated interest and receivable or payable within one year are recorded at transaction price. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Braidwood (Metals) Limited (Registered number: SC260654) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
3. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing |
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. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Sales of goods | 13,467,500 | 14,936,462 |
Services rendered | 28,171 | 5,252 |
13,495,671 | 14,941,714 |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 13,495,671 | 14,941,714 |
13,495,671 | 14,941,714 |
5. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Rents received | 575,234 | 311,819 |
Commissions receivable | 45,065 | 46,166 |
Insurance receipts | 7,510 | - |
Licence fees | 167,320 | 167,320 |
795,129 | 525,305 |
Braidwood (Metals) Limited (Registered number: SC260654) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
6. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 331,756 | 335,653 |
Social security costs | 25,826 | 27,378 |
Other pension costs | 8,435 | 14,540 |
366,017 | 377,571 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administration | 3 | 3 |
Processing | 8 | 8 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 39,416 | 41,184 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 19,316 | 20,459 |
Leasing | - | (90 | ) |
19,316 | 20,369 |
8. | PROFIT BEFORE TAXATION |
The profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 1,917 | 14,076 |
Other operating leases | 9,600 | 9,600 |
Depreciation - owned assets | 206,240 | 157,472 |
(Profit)/loss on disposal of fixed assets | (8,464 | ) | 2,574 |
Goodwill amortisation | 300,388 | 300,388 |
Auditors' remuneration | 18,490 | 6,000 |
Braidwood (Metals) Limited (Registered number: SC260654) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 368,673 | 316,609 |
Deferred tax | 77,048 | 58,394 |
Tax on profit | 445,721 | 375,003 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 1,681,395 | 1,578,865 |
Profit multiplied by the standard rate of corporation tax in the UK of 22 % (2022 - 19 %) |
369,907 |
299,984 |
Effects of: |
Expenses not deductible for tax purposes | 7,377 | 5,759 |
Capital allowances in excess of depreciation | (8,614 | ) | - |
Depreciation in excess of capital allowances | - | 10,867 |
Adjustments to tax charge in respect of previous periods | 3 | (1 | ) |
Deferred tax | 77,048 | 58,394 |
Total tax charge | 445,721 | 375,003 |
10. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
Interim dividends of £4,000 per share were declared during the year. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 30 September 2023 will be £4,000,000 |
Braidwood (Metals) Limited (Registered number: SC260654) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 October 2022 |
and 30 September 2023 | 3,003,877 |
AMORTISATION |
At 1 October 2022 | 2,288,092 |
Amortisation for year | 300,388 |
At 30 September 2023 | 2,588,480 |
NET BOOK VALUE |
At 30 September 2023 | 415,397 |
At 30 September 2022 | 715,785 |
13. | TANGIBLE FIXED ASSETS |
Group |
Land & |
property | Plant and | Motor |
improvements | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 October 2022 | 165,202 | 2,064,016 | 909,101 | 3,138,319 |
Additions | 262,252 | 367,182 | 105,000 | 734,434 |
Disposals | - | (31,000 | ) | (20,768 | ) | (51,768 | ) |
Reclassification/transfer | 54,942 | - | - | 54,942 |
At 30 September 2023 | 482,396 | 2,400,198 | 993,333 | 3,875,927 |
DEPRECIATION |
At 1 October 2022 | 123,825 | 1,820,645 | 517,164 | 2,461,634 |
Charge for year | 13,889 | 91,209 | 101,142 | 206,240 |
Eliminated on disposal | - | (30,432 | ) | (10,790 | ) | (41,222 | ) |
At 30 September 2023 | 137,714 | 1,881,422 | 607,516 | 2,626,652 |
NET BOOK VALUE |
At 30 September 2023 | 344,682 | 518,776 | 385,817 | 1,249,275 |
At 30 September 2022 | 41,377 | 243,371 | 391,937 | 676,685 |
Braidwood (Metals) Limited (Registered number: SC260654) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
13. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts or finance leases are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 October 2022 | 254,114 |
Transfer to ownership | (254,114 | ) |
At 30 September 2023 | - |
DEPRECIATION |
At 1 October 2022 | 59,704 |
Transfer to ownership | (59,704 | ) |
At 30 September 2023 | - |
NET BOOK VALUE |
At 30 September 2023 | - |
At 30 September 2022 | 194,410 |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertaking |
£ |
COST |
At 1 October 2022 and 30 September 2023 | 4,020,000 |
NET BOOK VALUE |
At 30 September 2023 | 4,020,000 |
At 30 September 2022 | 4,020,000 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Angus Braidwood & Son Limited |
Registered office: 10 Castle Drive, Bankside Industrial Estate, Falkirk, FK2 7XQ |
Nature of business: Scrap metal processing |
% |
Class of shares: holding |
Ordinary 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 749,583 | 3,240,456 |
Profit for the year | 1,509,127 | 1,477,316 |
Braidwood (Metals) Limited (Registered number: SC260654) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
15. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 October 2022 | 1,927,359 |
Additions | 1,453,169 |
Reclassification/transfer | (54,942 | ) |
At 30 September 2023 | 3,325,586 |
NET BOOK VALUE |
At 30 September 2023 | 3,325,586 |
At 30 September 2022 | 1,927,359 |
The investment properties introduced into the company in the year were last valued professionally in 2018 by Shepherd Chartered Surveyors. These valuations were reflected in the acquisition cost in the year. |
In the opinion of the directors there is no material difference between the fair value of investment property and value at transfer. |
16. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 2,938,390 | 2,528,252 |
17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Trade debtors | 1,278,324 | 1,379,616 |
Other debtors | 145,123 | 130,486 |
Prepayments and accrued income | 118,590 | 84,872 |
1,542,037 | 1,594,974 |
Braidwood (Metals) Limited (Registered number: SC260654) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 20) | 599,680 | 393,445 |
Trade creditors | 196,781 | 199,459 |
Amounts owed to group undertakings | - | - |
Tax | 174,596 | 279,554 |
Social security and other taxes | 582 | - |
VAT | 328,126 | 346,542 | - | - |
Other creditors | 66,957 | 13,338 |
Directors' current accounts | 6,503,354 | 1,606,355 | - | - |
Accruals and deferred income | 144,819 | 290,260 |
8,014,895 | 3,128,953 |
The bank borrowings and overdraft are secured by a bond and floating charge over the company's assets, a standard security over the company's property and a personal guarantees given by a director. |
19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 20) | 318,478 | 500,008 |
20. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 422,890 | 221,396 |
Bank loans | 176,790 | 172,049 |
599,680 | 393,445 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 318,478 | 172,049 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | - | 327,959 |
Braidwood (Metals) Limited (Registered number: SC260654) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
21. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 203,489 | 126,441 |
Group |
Deferred |
tax |
£ |
Balance at 1 October 2022 | 126,441 |
Accelerated capital allowances | 77,048 |
Balance at 30 September 2023 | 203,489 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary shares | £1 | 1,000 | 1,000 |
23. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 October 2022 | 3,780,715 |
Profit for the year | 1,235,674 |
Dividends | (4,000,000 | ) |
At 30 September 2023 | 1,016,389 |
Company |
Retained |
earnings |
£ |
At 1 October 2022 |
Profit for the year |
Dividends | ( |
) |
At 30 September 2023 |
24. | PENSION COMMITMENTS |
The defined contribution pension cost for the year was £8,435 (2022: £14,540). Outstanding contributions at the year end totalled £735 (2022: £ Nil). |
Braidwood (Metals) Limited (Registered number: SC260654) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
25. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £4,000,000 were paid to a director. |
During the year a director and shareholder transferred a personal land and buildings investment portfolio into the group with a corresponding credit to the director's loan account. The transfer value was £1,660,000 and was based on historic professional valuations and the director's estimated open market value at the time. |
The same director has an unsecured lending to the company of £6,503,354 (2022: £1,606,355). This loan is interest free and has no fixed repayment terms so disclosed as repayable within one year. |
26. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Mr A M Braidwood. |