IRIS Accounts Production v24.3.0.553 SC260654 Board of Directors Board of Directors 30.9.23 1.10.22 30.9.23 30.9.23 scrap metal processing. true true true false true true false false false true false Ordinary shares 0 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWhSC2606542022-09-30SC2606542023-09-30SC2606542022-10-012023-09-30SC2606542021-09-30SC2606542021-10-012022-09-30SC2606542022-09-30SC260654ns15:Scotland2022-10-012023-09-30SC260654ns14:PoundSterling2022-10-012023-09-30SC260654ns10:Director12022-10-012023-09-30SC260654ns10:Director22022-10-012023-09-30SC260654ns10:Consolidated2023-09-30SC260654ns10:ConsolidatedGroupCompanyAccounts2022-10-012023-09-30SC260654ns10:PrivateLimitedCompanyLtd2022-10-012023-09-30SC260654ns10:Consolidatedns10:FRS1022022-10-012023-09-30SC260654ns10:Consolidatedns10:Audited2022-10-012023-09-30SC260654ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-10-012023-09-30SC260654ns10:LargeMedium-sizedCompaniesRegimeForAccounts2022-10-012023-09-30SC260654ns10:Consolidatedns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-10-012023-09-30SC260654ns10:LargeMedium-sizedCompaniesRegimeForAccountsns10:Consolidated2022-10-012023-09-30SC260654ns10:FullAccounts2022-10-012023-09-30SC26065412022-10-012023-09-30SC260654ns10:OrdinaryShareClass12022-10-012023-09-30SC260654ns10:Consolidated2022-10-012023-09-30SC260654ns10:RegisteredOffice2022-10-012023-09-30SC260654ns10:Director32022-10-012023-09-30SC260654ns10:Consolidated2021-10-012022-09-30SC260654ns5:CurrentFinancialInstruments2023-09-30SC260654ns5:CurrentFinancialInstruments2022-09-30SC260654ns5:ShareCapital2023-09-30SC260654ns5:ShareCapital2022-09-30SC260654ns5:RetainedEarningsAccumulatedLosses2023-09-30SC260654ns5:RetainedEarningsAccumulatedLosses2022-09-30SC260654ns5:ShareCapital2021-09-30SC260654ns5:RetainedEarningsAccumulatedLosses2021-09-30SC260654ns5:RetainedEarningsAccumulatedLosses2021-10-012022-09-30SC260654ns5:RetainedEarningsAccumulatedLosses2022-10-012023-09-30SC260654ns5:NetGoodwill2022-10-012023-09-30SC260654ns5:IntangibleAssetsOtherThanGoodwill2022-10-012023-09-30SC260654ns10:OrdinaryShareClass12023-09-30SC260654ns5:RetainedEarningsAccumulatedLosses2022-09-30
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: T McIntyre
A M Braidwood





REGISTERED OFFICE: 10 Castle Drive
Bankside Industrial Estate
Falkirk
FK2 7XQ





REGISTERED NUMBER: SC260654 (Scotland)





AUDITORS: Jeffrey Crawford & Co
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:





T McIntyre - Director


30 September 2024

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
A M Braidwood has held office during the whole of the period from 1 October 2022 to the date of this report.

Other changes in directors holding office are as follows:

T McIntyre - appointed 6 March 2023
C Burt - resigned 31 March 2023

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:





T McIntyre - Director


30 September 2024

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.




R L H Crawford (Senior Statutory Auditor)
for and on behalf of Jeffrey Crawford & Co
Chartered Accountants and Statutory Auditors
25 Castle Terrace
Edinburgh
EH1 2ER

30 September 2024

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 1,235,674 1,203,862
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 4,020,000 4,020,000
Investment property 15 - -
4,020,000 4,020,000

CREDITORS
Amounts falling due within one year 18 19,656 19,656
NET CURRENT LIABILITIES (19,656 ) (19,656 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,000,344

4,000,344

CAPITAL AND RESERVES
Called up share capital 22 1,000 1,000
Retained earnings 23 3,999,344 3,999,344
SHAREHOLDERS' FUNDS 4,000,344 4,000,344

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 30 September 2024 and were signed on its behalf by:




T McIntyre - Director



A M Braidwood - Director


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 1,000 3,999,344 4,000,344

Changes in equity
Dividends - (2,500,000 ) (2,500,000 )
Total comprehensive income - 2,500,000 2,500,000
Balance at 30 September 2022 1,000 3,999,344 4,000,344

Changes in equity
Dividends - (4,000,000 ) (4,000,000 )
Total comprehensive income - 4,000,000 4,000,000
Balance at 30 September 2023 1,000 3,999,344 4,000,344

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 private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the General Information page.

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
11 11

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 - - 18,576 18,576
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 1,080 1,080
8,014,895 3,128,953 19,656 19,656

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: £    £   
1,000 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 3,999,344
Profit for the year 4,000,000
Dividends (4,000,000 )
At 30 September 2023 3,999,344


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.