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REGISTERED NUMBER: SC166057 (Scotland)















Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 30 June 2024

for

Algo (Blairgowrie) Limited

Algo (Blairgowrie) Limited (Registered number: SC166057)






Contents of the Financial Statements
for the Year Ended 30 June 2024




Page

Strategic Report 1

Report of the Directors 2

Report of the Independent Auditors 4

Statement of Comprehensive Income 7

Balance Sheet 8

Statement of Changes in Equity 9

Cash Flow Statement 10

Notes to the Cash Flow Statement 11

Notes to the Financial Statements 13


Algo (Blairgowrie) Limited (Registered number: SC166057)

Strategic Report
for the Year Ended 30 June 2024

The directors present their strategic report for the year ended 30 June 2024.

REVIEW OF BUSINESS
The expertise of Algo (Blairgowrie) Limited sits across a range of specific sectors with specialisms in the construction of agricultural buildings and commercial buildings related to the whisky sector.

The directors are pleased to report that the company has performed strongly in the year to 30 June 2024, in line with expectations, with turnover and other operating income increasing 26% from £28.8m to £36.3m.

Following the completion of onerous contracts reported in the previous year's results, profitability and gross margins have returned to normalised levels generating a profit before tax of £1.5m.

The results reflect the company's renewed focus on its core competencies and the directors anticipate the positive trading results will continue into the current trading period. The directors consider this financial performance to be good, particularly in in view of the prevailing economic conditions and high level of competitiveness experienced across the sectors in which the company operates.

The company's financial position is healthy and the company's balance sheet remains robust with net assets increasing from £3.0m as at 30 June 2023 to £4.1m as at 30 June 2024.

The directors continue to monitor and measure past performance and results against current market conditions and opportunities with the aim of maintaining competitive and sustainable gross margins to ensure the long-term success of the business.

The company has a strong, loyal, and varied customer base across the agricultural and commercial sectors as well as private clients and looking forward the directors are confident the company will exceed the profitability of prior years.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties affecting the company are those associated with all construction/building sectors and include:

1. The general and political climate in Scotland.
2. The competitive nature of our industry.
3. The increase in the regulatory environment including health & safety, planning and utilities.
4. The increased level of contracting opportunities which could result in a skills shortage.
5. The impact of increasing costs on the margin achievable on contracts already in place.

ON BEHALF OF THE BOARD:





Mr C M Alexander - Director


23 October 2024

Algo (Blairgowrie) Limited (Registered number: SC166057)

Report of the Directors
for the Year Ended 30 June 2024

The directors present their report with the financial statements of the company for the year ended 30 June 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of design and construction of industrial and agricultural buildings.

DIVIDENDS
The total distribution of dividends for the year ended 30 June 2024 will be £108,000.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report.

Mr P Alexander
Mrs C P Alexander
Mr C M Alexander

Other changes in directors holding office are as follows:

Mr A A Farmer - resigned 27 October 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT 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 company'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 company's auditors are aware of that information.

Algo (Blairgowrie) Limited (Registered number: SC166057)

Report of the Directors
for the Year Ended 30 June 2024


AUDITORS
Drummond Laurie CA are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:




Mr C M Alexander - Director


23 October 2024

Report of the Independent Auditors to the Members of
Algo (Blairgowrie) Limited

Opinion
We have audited the financial statements of Algo (Blairgowrie) Limited (the 'company') for the year ended 30 June 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 30 June 2024 and of its 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 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 directors are responsible for the other information. The other information comprises the information in the 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 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 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
Algo (Blairgowrie) Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the 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 two, 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 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.

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.

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.

Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and regulations related to fraudulent manipulation of the financial statements, including the risk of override of controls, to reduce profits and tax liabilities. We determined that the most likely method of manipulation would be the posting of inappropriate journal entries. Audit procedures performed by the audit engagement team consisted of a review of large and unusual journal entries, challenging assumptions and judgements made by management in significant accounting estimates, discussions with management related to known or suspected instances of non-compliance with laws and regulations, review of Board minutes where available, and an evaluation of management controls designed to prevent and detect irregularities.

There are inherent limitations in the audit procedures described above 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 would become aware of it. Also, 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 deliberate concealment by, for example, forgery or intentional misrepresentations or through collusion.

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.

Report of the Independent Auditors to the Members of
Algo (Blairgowrie) Limited


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.




Greig Brown (Senior Statutory Auditor)
for and on behalf of Drummond Laurie CA
Statutory Auditor
Unit 5
Gateway Business Park
Beancross Road
Grangemouth
FK3 8WX

23 October 2024

Algo (Blairgowrie) Limited (Registered number: SC166057)

Statement of Comprehensive Income
for the Year Ended 30 June 2024

30.6.24 30.6.23
Notes £    £   

TURNOVER 36,224,466 28,643,039

Cost of sales (32,207,538 ) (29,840,061 )
GROSS PROFIT/(LOSS) 4,016,928 (1,197,022 )

Administrative expenses (2,444,138 ) (2,429,240 )
1,572,790 (3,626,262 )

Other operating income 69,819 136,730
OPERATING PROFIT/(LOSS) 4 1,642,609 (3,489,532 )


Interest payable and similar expenses 6 (138,235 ) (71,946 )
PROFIT/(LOSS) BEFORE TAXATION 1,504,374 (3,561,478 )

Tax on profit/(loss) 7 (377,846 ) 872,297
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

1,126,528

(2,689,181

)

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,126,528

(2,689,181

)

Algo (Blairgowrie) Limited (Registered number: SC166057)

Balance Sheet
30 June 2024

30.6.24 30.6.23
Notes £    £   
FIXED ASSETS
Tangible assets 9 1,272,367 1,275,260

CURRENT ASSETS
Stocks 10 1,534,569 1,505,960
Debtors 11 10,602,822 9,354,302
Cash at bank and in hand 973,179 58
13,110,570 10,860,320
CREDITORS
Amounts falling due within one year 12 (9,165,682 ) (8,243,710 )
NET CURRENT ASSETS 3,944,888 2,616,610
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,217,255

3,891,870

CREDITORS
Amounts falling due after more than one
year

13

(1,158,619

)

(851,762

)
NET ASSETS 4,058,636 3,040,108

CAPITAL AND RESERVES
Called up share capital 18 2 2
Retained earnings 19 4,058,634 3,040,106
SHAREHOLDERS' FUNDS 4,058,636 3,040,108

The financial statements were approved by the Board of Directors and authorised for issue on 23 October 2024 and were signed on its behalf by:





Mr C M Alexander - Director


Algo (Blairgowrie) Limited (Registered number: SC166057)

Statement of Changes in Equity
for the Year Ended 30 June 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 July 2022 2 5,837,287 5,837,289

Changes in equity
Dividends - (108,000 ) (108,000 )
Total comprehensive income - (2,689,181 ) (2,689,181 )
Balance at 30 June 2023 2 3,040,106 3,040,108

Changes in equity
Dividends - (108,000 ) (108,000 )
Total comprehensive income - 1,126,528 1,126,528
Balance at 30 June 2024 2 4,058,634 4,058,636

Algo (Blairgowrie) Limited (Registered number: SC166057)

Cash Flow Statement
for the Year Ended 30 June 2024

30.6.24 30.6.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,308,630 543,595
Interest paid (102,366 ) (60,579 )
Interest element of hire purchase payments
paid

(35,869

)

(11,367

)
Tax paid 34,361 (75,505 )
Net cash from operating activities 1,204,756 396,144

Cash flows from investing activities
Purchase of tangible fixed assets (21,467 ) (16,000 )
Sale of tangible fixed assets 92,373 130,657
Net cash from investing activities 70,906 114,657

Cash flows from financing activities
New loans in year - 406,000
Loan repayments in year (39,634 ) (36,810 )
Capital repayments in year (417,331 ) (422,615 )
Amount withdrawn by directors (31,732 ) (113,307 )
HP assets refinanced in the year 496,241 -
Equity dividends paid (108,000 ) (108,000 )
Net cash from financing activities (100,456 ) (274,732 )

Increase in cash and cash equivalents 1,175,206 236,069
Cash and cash equivalents at beginning of
year

2

(202,027

)

(438,096

)

Cash and cash equivalents at end of year 2 973,179 (202,027 )

Algo (Blairgowrie) Limited (Registered number: SC166057)

Notes to the Cash Flow Statement
for the Year Ended 30 June 2024

1. RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

30.6.24 30.6.23
£    £   
Profit/(loss) before taxation 1,504,374 (3,561,478 )
Depreciation charges 414,666 471,227
Profit on disposal of fixed assets (33,622 ) (41,518 )
Finance costs 138,235 71,946
2,023,653 (3,059,823 )
Increase in stocks (28,609 ) (45,060 )
(Increase)/decrease in trade and other debtors (1,618,286 ) 1,479,441
Increase in trade and other creditors 931,872 2,169,037
Cash generated from operations 1,308,630 543,595

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 June 2024
30.6.24 1.7.23
£    £   
Cash and cash equivalents 973,179 58
Bank overdrafts - (202,085 )
973,179 (202,027 )
Year ended 30 June 2023
30.6.23 1.7.22
£    £   
Cash and cash equivalents 58 31
Bank overdrafts (202,085 ) (438,127 )
(202,027 ) (438,096 )


Algo (Blairgowrie) Limited (Registered number: SC166057)

Notes to the Cash Flow Statement
for the Year Ended 30 June 2024

3. ANALYSIS OF CHANGES IN NET DEBT

Other
non-cash
At 1.7.23 Cash flow changes At 30.6.24
£    £    £    £   
Net cash
Cash at bank
and in hand 58 973,121 973,179
Bank overdrafts (202,085 ) 202,085 -
(202,027 ) 1,175,206 973,179
Debt
Finance leases (244,785 ) (78,910 ) (875,763 ) (772,752 )
Debts falling due
within 1 year (54,867 ) (1,724 ) - (56,591 )
Debts falling due
after 1 year (808,104 ) 41,358 - (766,746 )
(1,107,756 ) (39,276 ) (875,763 ) (1,596,089 )
Total (1,309,783 ) 1,135,930 (875,763 ) (622,910 )

Algo (Blairgowrie) Limited (Registered number: SC166057)

Notes to the Financial Statements
for the Year Ended 30 June 2024

1. STATUTORY INFORMATION

Algo (Blairgowrie) Limited is a private company, limited by shares, domiciled in Scotland, registration number SC166057. The registered office is Algo Business Centre, Glenearn Road, Perth, PH2 0NJ.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover represents net invoiced sales of goods and services in respect of construction, excluding value added tax.

Turnover comprises the fair value of construction carried out in the year, based on an internal assessment of work carried out. Once the outcome of a construction contract can be estimated reliably, profit is recognised on a stage of contract completion basis by reference to either costs incurred to date and total forecast costs on the contract as a whole, or certified value.

Losses expected in bringing a contract to completion are recognised immediately as soon as they are forecast. Where the outcome of variations is uncertain, the company only recognises turnover and associated profit where it is probable that the client will approve the variation. Where the outcome of claims is uncertain, the company only recognises turnover when negotiations have reached an advanced stage such that it is probable that the customer will accept the claim.

Amounts due from construction contract customers which are included within debtors, represent turnover less progress payments received. Where progress payments exceed turnover and other contract balances, the excess is shown as amounts due to construction contract customers within current liabilities.

Tangible fixed assets and depreciation
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Long leasehold - 15% on cost and 4% on cost
Plant and machinery - 33% on reducing balance, 25% on reducing balance, 20% on reducing balance and 15% on reducing balance
Motor vehicles - 33% on reducing balance and 25% on reducing balance
Computer equipment - 33% on reducing balance and 25% on reducing balance

Tangible fixed assets are stated at cost less depreciation. Cost represent purchase price together with any incidental costs of acquisition.

The directors have considered the residual value of all tangible fixed assets to be immaterial and therefore all tangible fixed assets are depreciated to nil value.

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is represented by purchase price.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

Algo (Blairgowrie) Limited (Registered number: SC166057)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

2. ACCOUNTING POLICIES - continued

Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the profit and loss account as incurred.

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account on a straight line basis.

Investment in finance leases are included in current assets and amortised on a straight line basis over the lease term. Rentals receivable under operating leases are credited to income on a straight line basis over the lease term.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Contributions have been made by the company for certain employees into their respective personal pension plans. Contributions paid into the individual pension plans are charged to the profit and loss account as incurred.

Provisions
Provisions are recognised when the company has a legal or constructive obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Provisions are discounted where the time value of money is material.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Cash and cash equivalents
Cash and cash equivalents include cash at bank and in hand and highly liquid interest-bearing securities with maturities of three months or less. In the cash-flow statement, cash and cash equivalents are shown net of bank overdrafts, which are included as current borrowings in liabilities on the balance sheet.

Going concern
The directors of the company have reviewed the results for the year ended 30th June 2024, the subsequent post year end trading period as well as the detailed company forecasts and projections beyond a period of 12 months from the balance sheet signing date which indicate the company will be profitable and cash generative. The company has a large current order book and continues to attract and win viable projects at sustainable gross margins. Therefore, it is the directors' belief that the company should prepare financial statements on a going concern basis.

Algo (Blairgowrie) Limited (Registered number: SC166057)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Financial assets
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

If transaction costs are immaterial and the credit period is short, amortised cost is equal to the nominal value less any allowance for credit losses. Amortised interest is recognised as Interest income within the Income Statement.

Where loans are provided interest-free or below market rate, the market value on initial recognition is required to be estimated by discounting the loan amount to the present value of future payments using an equivalent rate of a similar instrument.

Financial liabilities
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

If transaction costs are immaterial and the credit period is short, amortised cost is equal to the nominal value. The amortisation of financial liabilities is recognised as an Interest expense within the Income Statement.

Where loans are provided interest-free or below market rate, the market value on initial recognition is required to be estimated by discounting the loan amount to the present value of future payments using an equivalent rate of a similar instrument.

Significant estimates and judgements
The preparation of financial statements required management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and assumptions are reviewed on an ongoing basis and revisions to estimates are recognised in the period in which the estimate is revised and in any future periods affected.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities relate to construction contract accounting as the values recognised are based on the proportion of work carried out on a contract by contract basis.

3. EMPLOYEES AND DIRECTORS
30.6.24 30.6.23
£    £   
Wages and salaries 3,591,996 3,022,485
Social security costs 362,862 304,859
Other pension costs 100,456 84,162
4,055,314 3,411,506

The average number of employees during the year was as follows:
30.6.24 30.6.23

Construction and administration 92 84

Algo (Blairgowrie) Limited (Registered number: SC166057)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

3. EMPLOYEES AND DIRECTORS - continued

30.6.24 30.6.23
£    £   
Directors' remuneration 30,356 73,535
Directors' pension contributions to money purchase schemes 498 1,989
Compensation to director for loss of office 48,421 -

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

4. OPERATING PROFIT/(LOSS)

The operating profit (2023 - operating loss) is stated after charging/(crediting):

30.6.24 30.6.23
£    £   
Hire of plant and machinery 941,709 1,078,097
Depreciation - owned assets 175,263 254,366
Depreciation - assets on hire purchase contracts 239,403 216,860
Profit on disposal of fixed assets (33,622 ) (41,518 )
Auditors' remuneration 12,500 12,000

5. EXCEPTIONAL ITEMS

The prior year results include exceptional losses of £4,548,768 on two onerous government contracts. These projects were negotiated and agreed on a fixed price basis before the hyper-inflation post Covid 19 era increased material prices and despite regular negotiations with government agencies and representatives, the company was unable to recover these additional costs. In the interest of prudence, the business recognised the full loss on these two projects in the year to June 2023 annual accounts. Both projects completed in early 2024 and the business has returned its focus to its core areas of expertise therefore the directors do not expect similar contract losses going forward.

The prior year results included exceptional provisions of £143,309 against related party debts. The funds had been advanced to support the ventures through developmental stages however due to market conditions the directors took the prudent decision to provide against these balances.

6. INTEREST PAYABLE AND SIMILAR EXPENSES
30.6.24 30.6.23
£    £   
Bank interest 88,619 46,075
CT interest - 1,326
VAT interest 13,747 13,178
Hire purchase 35,869 11,367
138,235 71,946

Algo (Blairgowrie) Limited (Registered number: SC166057)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

7. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
30.6.24 30.6.23
£    £   
Current tax:
UK corporation tax - (79,476 )

Deferred tax 377,846 (792,821 )
Tax on profit/(loss) 377,846 (872,297 )

Reconciliation of total tax charge/(credit) 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:

30.6.24 30.6.23
£    £   
Profit/(loss) before tax 1,504,374 (3,561,478 )
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 19%)

376,094

(676,681

)

Effects of:
Expenses not deductible for tax purposes 540 480
Income not taxable for tax purposes (8,405 ) (7,955 )
Depreciation in excess of capital allowances 22,481 11,987
Utilisation of tax losses (390,710 ) -
Deferred taxation 377,846 (792,821 )
Unutilised tax losses - 592,693
Total tax charge/(credit) 377,846 (872,297 )

8. DIVIDENDS
30.6.24 30.6.23
£    £   
Ordinary shares of £1 each
Final 108,000 108,000

Algo (Blairgowrie) Limited (Registered number: SC166057)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

9. TANGIBLE FIXED ASSETS
Long Plant and Motor Computer
leasehold machinery vehicles equipment Totals
£    £    £    £    £   
COST
At 1 July 2023 144,246 3,338,188 984,900 117,233 4,584,567
Additions - 129,098 339,556 1,870 470,524
Disposals - (37,500 ) (155,838 ) - (193,338 )
At 30 June 2024 144,246 3,429,786 1,168,618 119,103 4,861,753
DEPRECIATION
At 1 July 2023 129,643 2,424,034 644,643 110,987 3,309,307
Charge for year 4,812 251,742 156,047 2,065 414,666
Eliminated on disposal - (33,207 ) (101,380 ) - (134,587 )
At 30 June 2024 134,455 2,642,569 699,310 113,052 3,589,386
NET BOOK VALUE
At 30 June 2024 9,791 787,217 469,308 6,051 1,272,367
At 30 June 2023 14,603 914,154 340,257 6,246 1,275,260

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 July 2023 342,850 215,434 558,284
Additions 109,500 339,557 449,057
Disposals - (77,500 ) (77,500 )
Transfer to ownership 77,750 181,225 258,975
At 30 June 2024 530,100 658,716 1,188,816
DEPRECIATION
At 1 July 2023 107,103 74,607 181,710
Charge for year 106,553 132,850 239,403
Eliminated on disposal - (42,730 ) (42,730 )
Transfer to ownership 24,756 106,116 130,872
At 30 June 2024 238,412 270,843 509,255
NET BOOK VALUE
At 30 June 2024 291,688 387,873 679,561
At 30 June 2023 235,747 140,827 376,574

10. STOCKS
30.6.24 30.6.23
£    £   
Work-in-progress 1,534,569 1,505,960

Algo (Blairgowrie) Limited (Registered number: SC166057)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£    £   
Trade debtors 5,264,020 2,826,919
Amounts owed by related parties 2,546,208 2,137,666
Amounts recoverable on contract 2,338,391 3,391,495
Directors' current accounts 220,249 188,517
Tax 74,334 97,986
Deferred tax asset 130,719 508,565
Prepayments and accrued income 28,901 203,154
10,602,822 9,354,302

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£    £   
Bank loans and overdrafts (see note 14) 56,591 256,952
Hire purchase contracts (see note 15) 380,879 201,127
Payments on account 1,776,996 533,336
Trade creditors 4,371,783 4,285,165
Amounts owed to related parties 599,188 465,763
Tax 10,709 -
Social security and other taxes 244,856 491,934
VAT 1,692,649 640,246
Directors' current accounts 1,258 1,258
Accruals and deferred income 30,773 1,367,929
9,165,682 8,243,710

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
30.6.24 30.6.23
£    £   
Bank loans (see note 14) 766,746 808,104
Hire purchase contracts (see note 15) 391,873 43,658
1,158,619 851,762

14. LOANS

An analysis of the maturity of loans is given below:

30.6.24 30.6.23
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts - 202,085
Bank loans 56,591 54,867
56,591 256,952

Amounts falling due between one and two years:
Bank loans - 1-2 years 58,360 56,591

Algo (Blairgowrie) Limited (Registered number: SC166057)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

14. LOANS - continued
30.6.24 30.6.23
£    £   
Amounts falling due between two and five years:
Bank loans - 2-5 years 186,588 177,532

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal 521,798 573,981

In February 2020 the company obtained a £565,000 loan from Bank of Scotland plc. Interest is charged at 3.00% plus base rate and the loan is repayable over 15 years with the final payment due in February 2035.

In November 2022 the company obtained a £203,000 loan from Bank of Scotland plc. Interest is charged at 3.59% plus base rate and the loan is repayable over 15 years with the final payment due in November 2037.

In November 2022 the company obtained a second £203,000 loan from Bank of Scotland plc. Interest is charged at 6.92% and the loan is repayable over 15 years with the final payment due in November 2037.

15. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

30.6.24 30.6.23
£    £   
Net obligations repayable:
Within one year 380,879 201,127
Between one and five years 391,873 43,658
772,752 244,785

16. SECURED DEBTS

The following secured debts are included within creditors:

30.6.24 30.6.23
£    £   
Bank loans 823,337 862,971
Hire purchase contracts 772,752 244,785
1,596,089 1,107,756

Hire purchase contracts are secured over the assets to which they relate.

In respect of the bank loans, Bank of Scotland plc holds a standard security over three plots of land held by the company and a bond and floating charge over the whole assets of the company.

17. DEFERRED TAX
£   
Balance at 1 July 2023 (508,565 )
Provided during year 377,846
Balance at 30 June 2024 (130,719 )

Algo (Blairgowrie) Limited (Registered number: SC166057)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.6.24 30.6.23
value: £    £   
2 Ordinary £1 2 2

19. RESERVES
Retained
earnings
£   

At 1 July 2023 3,040,106
Profit for the year 1,126,528
Dividends (108,000 )
At 30 June 2024 4,058,634

20. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 30 June 2024 and 30 June 2023:

30.6.24 30.6.23
£    £   
Mr C M Alexander
Balance outstanding at start of year 188,517 75,210
Amounts advanced 31,732 113,307
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 220,249 188,517

21. RELATED PARTY DISCLOSURES

Other related parties
30.6.24 30.6.23
£    £   
Sales and other operating income 270,661 326,193
Purchases 824,373 939,049
Loan funds advanced by the company 776,125 -
Loan funds repaid to the company 367,584 484,855
Loan funds received by the company 133,426 268,791
Amount due from related parties 2,546,208 2,137,666
Amount due to related parties 599,188 465,763
Provisions against amounts due from related parties - 143,309

22. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is C M Alexander, a director of the company.