IRIS Accounts Production v24.3.0.553 SC023788 Board of Directors 1.2.23 31.1.24 31.1.24 true false true true false false true false Defined benefit pension plans Ordinary 1.00000 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









WILLIAM LOCKIE & COMPANY LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST JANUARY 2024






WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST JANUARY 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 17


WILLIAM LOCKIE & COMPANY LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST JANUARY 2024







DIRECTORS: D Nuttall
R Nuttall
M R Thorburn
Miss J J Thorburn





SECRETARY: S P R Jackson





REGISTERED OFFICE: Westfield Works
27/28 Drumlanrig Square
Hawick
TD9 0AW





REGISTERED NUMBER: SC023788 (Scotland)





AUDITORS: JRW
Chartered Accountants & Statutory Auditor
19 Buccleuch Street
Hawick
Roxburghshire
TD9 0HL

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST JANUARY 2024

The directors present their strategic report for the year ended 31st January 2024.

REVIEW OF BUSINESS
We aim to present a balanced review of the development and performance of the company during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.

As a knitwear manufacturer the company continues to produce a range of products for sale in a number of geographic areas. Sales in these areas are set out in note 3 to the financial statements.

We consider that our key performance indicators are those that communicate the financial performance of the company as a whole. A summary of these figures are set out below:

2024 2023 2022 2021
£ £ £ £
Turnover 8,386,837 7,634,066 6,755,439 5,853,892
Gross Profit 2,402,350 2,326,558 2,203,112 2,011,564
Net Profit/(Loss) (before tax and dividends) (116,370 ) (134,225 ) 190,705 270,297
Net Assets 2,434,432 2,801,984 721,603 98,149

Turnover has increased by 9.9% from last year following an increase in selling prices. Gross profit rate has decreased from last year to 28.6% (2023 30.5%), as cost of sales have increased, mainly in wage costs..

Distribution and selling costs have decreased from last year mainly in commissions paid. Administrative expenses have increased from last year, particularly in pension and heat & light costs.

As a result of the increase in turnover the loss before tax has reduced from last year's level.

The net assets have decreased by £367,552 in the year. This is due to the increase in borrowing in the year and the movement in pension scheme liability which had an increase in the liability of £117,000.

PRINCIPAL RISKS AND UNCERTAINTIES
The key business risks affecting the company continue to come from fluctuations in the British Economy and the impact of Brexit as well as alternative suppliers importing from territories with lower labour costs along with the cash outflows resulting from the losses experienced.

The current economic conditions create uncertainty particularly over the level of demand for the company's products. The company seeks to manage this risk by diversifying and updating its product ranges where possible.


WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST JANUARY 2024

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The company's activities expose it to a number of financial risks including credit risk, interest rate risk, currency risk and liquidity risk.

Credit risk
The company seeks to manage its credit risk by dealing with established customers or otherwise checking the credit-worthiness of new customers, establishing clear contractual relationships with these customers and by identifying and addressing any credit issues arising in a timely manner.

Interest rate risk
The company exposure to market risk for the changes in interest rates relates primarily to its bank borrowings. The company seeks to manage this risk by the use of a combination of variable and fixed rates.

Currency risk
The company minimises its risk to foreign currency fluctuations by invoicing and purchasing sterling where possible and where not by contracted exchange rates with bank.

Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. Short-term flexibility is achieved by overdraft facilities and borrowings. This gives the company the necessary financial backing to carry out its intended plans and properly finance the ongoing operation of the business.

GOING CONCERN
After making enquiries, and evaluating business developments subsequent to the year end, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Further details of this assessment are provided in note 1 to the financial statements.

FUTURE DEVELOPMENTS
We continue to pursue a strategy of growth with our customers in wholesale, retail and online. Demand during 2024 is likely to be impacted by national and global economic factors and sales in some key customers are expected to be lower than previous years, and may still be subject to heightened and unpredictable variability.

Margins will also be under pressure as the stock being sold through has been acquired at a time of high cashmere prices. Expectations are therefore for a reduction in profitability in the coming year.

ON BEHALF OF THE BOARD:





S P R Jackson - Secretary


30th October 2024

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST JANUARY 2024

The directors present their report with the financial statements of the company for the year ended 31st January 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the manufacture and sale of knitwear.

DIVIDENDS
The total distribution of dividends during the year ended 1st February 2024 will be £Nil (2023 - £90,000).

DIRECTORS
The directors set out in the table below have held office during the whole of the period from 1st February 2023 to the date of this report.

The beneficial interests of the directors holding office at 31st January 2024 in the shares of the company, according to the register of directors' interests, were as follows:

31.1.24 1.2.23
Ordinary shares of £1.00 each
D Nuttall 600 600
R Nuttall 600 600
M R Thorburn 2,825 2,825
Miss J J Thorburn 1,675 1,675

These directors did not hold any non-beneficial interests in the shares of the company.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST JANUARY 2024


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.

AUDITORS
The auditors, JRW, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



S P R Jackson - Secretary


30th October 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
WILLIAM LOCKIE & COMPANY LIMITED

Opinion
We have audited the financial statements of William Lockie & Company Limited (the 'company') for the year ended 31st January 2024 which comprise the Income Statement, Other 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 31st January 2024 and of its loss 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
WILLIAM LOCKIE & COMPANY LIMITED


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.

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 four, 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
WILLIAM LOCKIE & COMPANY 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:

Identifying and assessing potential risks related to irregularities
- Enquiring with management and the directors, including obtaining and reviewing supporting documentation, concerning the company's policies and procedures relating to:
- Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances on non compliance;
- Detecting and responding to the risks of fraud and whether they have any knowledge of any actual, suspected or alleged fraud; and
- The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;
- Discussing with the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud.
- Obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements. These areas were identified through enquiries with the director, management and our knowledge and understanding of the company accumulated throughout the audit and our sector-specific experience.

Audit responses to risks identified
As a result of performing the above, we identified the stock as being particularly susceptible to misstatement. The following work was carried out:
- Stock existence, movement, cut-off and valuation tested.

In addition to the above, our procedures to respond to the risks identified included the following:
-Reviewing the financial statement disclosures and testing and supporting documentation to assess compliance with relevant laws and regulations.
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate the risk of material misstatement due to fraud.
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments.

We also communicated relevant laws and regulations identified and potential fraud risks to all engagement team members and remained vigilant to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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
WILLIAM LOCKIE & COMPANY 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.




Kevin D Ferguson (Senior Statutory Auditor)
for and on behalf of JRW
Chartered Accountants & Statutory Auditor
19 Buccleuch Street
Hawick
Roxburghshire
TD9 0HL

30th October 2024

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

INCOME STATEMENT
FOR THE YEAR ENDED 31ST JANUARY 2024

Year ended Period
31.1.24 2.2.22 to 31.1.23
Notes £    £    £    £   

TURNOVER 3 8,386,837 7,634,066

Cost of sales 5,984,487 5,307,508
GROSS PROFIT 2,402,350 2,326,558

Distribution and selling costs 923,020 990,617
Administrative expenses 1,457,443 1,348,810
2,380,463 2,339,427
21,887 (12,869 )

Other operating income 4 23,001 21,019
OPERATING PROFIT 6 44,888 8,150

Interest receivable and similar income 7 5,373 1,093
50,261 9,243

Interest payable and similar expenses 8 31,631 13,468
Other finance costs 22 135,000 130,000
166,631 143,468
LOSS BEFORE TAXATION (116,370 ) (134,225 )

Tax on loss 9 (19,818 ) (3,606 )
LOSS FOR THE FINANCIAL YEAR (96,552 ) (130,619 )

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31ST JANUARY 2024

Period
2.2.22
Year ended to
31.1.24 31.1.23
Notes £    £   

LOSS FOR THE YEAR (96,552 ) (130,619 )


OTHER COMPREHENSIVE (LOSS)/INCOME
Actuarial gains/(losses) on pension plan (335,000 ) 2,841,000
Income tax relating to other
comprehensive (loss)/income

64,000

(540,000

)
OTHER COMPREHENSIVE
(LOSS)/INCOME FOR THE YEAR,
NET OF INCOME TAX


(271,000


)


2,301,000
TOTAL COMPREHENSIVE
(LOSS)/INCOME FOR THE YEAR

(367,552

)

2,170,381

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

BALANCE SHEET
31ST JANUARY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 715,550 809,631

CURRENT ASSETS
Stocks 12 3,052,310 3,259,569
Debtors 13 1,639,417 1,549,986
Cash at bank and in hand 1,327,862 1,055,684
6,019,589 5,865,239
CREDITORS
Amounts falling due within one year 14 1,271,708 1,113,069
NET CURRENT ASSETS 4,747,881 4,752,170
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,463,431

5,561,801

CREDITORS
Amounts falling due after more than one
year

15

(385,333

)

(213,333

)

PROVISIONS FOR LIABILITIES 19 (60,666 ) (80,484 )

PENSION LIABILITY 22 (2,583,000 ) (2,466,000 )
NET ASSETS 2,434,432 2,801,984

CAPITAL AND RESERVES
Called up share capital 20 9,000 9,000
Capital redemption reserve 21 13,500 13,500
Retained earnings 21 2,411,932 2,779,484
SHAREHOLDERS' FUNDS 2,434,432 2,801,984

The financial statements were approved by the Board of Directors and authorised for issue on 30th October 2024 and were signed on its behalf by:





D Nuttall - Director


WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST JANUARY 2024

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 2nd February 2022 9,000 699,103 13,500 721,603

Changes in equity
Dividends - (90,000 ) - (90,000 )
Total comprehensive income - 2,170,381 - 2,170,381
Balance at 31st January 2023 9,000 2,779,484 13,500 2,801,984

Changes in equity
Total comprehensive loss - (367,552 ) - (367,552 )
Balance at 31st January 2024 9,000 2,411,932 13,500 2,434,432

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST JANUARY 2024

Period
2.2.22
Year ended to
31.1.24 31.1.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 10,668 (7,051 )
Interest paid (17,620 ) (13,468 )
Interest element of hire purchase
payments paid

(14,011

)

-
Tax paid 44,618 (44,618 )
Net cash from operating activities 23,655 (65,137 )

Cash flows from investing activities
Purchase of tangible fixed assets (850 ) (324,532 )
Interest received 5,373 1,093
Net cash from investing activities 4,523 (323,439 )

Cash flows from financing activities
New loans in year 360,000 -
Loan repayments in year (116,000 ) (80,001 )
Equity dividends paid - (90,000 )
Net cash from financing activities 244,000 (170,001 )

Increase/(decrease) in cash and cash equivalents 272,178 (558,577 )
Cash and cash equivalents at
beginning of year

2

1,055,684

1,614,261

Cash and cash equivalents at end of
year

2

1,327,862

1,055,684

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST JANUARY 2024

1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

Period
2.2.22
Year ended to
31.1.24 31.1.23
£    £   
Loss before taxation (116,370 ) (134,225 )
Depreciation charges 94,931 110,750
Pension charge less cash contributions (289,000 ) (197,000 )
Finance costs 166,631 143,468
Finance income (5,373 ) (1,093 )
(149,181 ) (78,100 )
Decrease/(increase) in stocks 207,259 (8,384 )
Increase in trade and other debtors (134,049 ) (262,792 )
Increase in trade and other creditors 86,639 342,225
Cash generated from operations 10,668 (7,051 )

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 31st January 2024
31.1.24 1.2.23
£    £   
Cash and cash equivalents 1,327,862 1,055,684
Period ended 31st January 2023
31.1.23 2.2.22
£    £   
Cash and cash equivalents 1,055,684 1,614,261


WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST JANUARY 2024

3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.2.23 Cash flow At 31.1.24
£    £    £   
Net cash
Cash at bank and in hand 1,055,684 272,178 1,327,862
1,055,684 272,178 1,327,862
Debt
Finance leases - (324,000 ) (324,000 )
Debts falling due within 1 year (80,000 ) - (80,000 )
Debts falling due after 1 year (213,333 ) 80,000 (133,333 )
(293,333 ) (244,000 ) (537,333 )
Total 762,351 28,178 790,529

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST JANUARY 2024

1. STATUTORY INFORMATION

William Lockie & Company Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

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

Going concern
The company's business activities, together with the factors likely to affect its future development, performance and position are set out in the Strategic Report on pages 2 to 3. The financial position of the company, including its cash flows, are set out in pages 10 to 14 and the notes to the financial statements.

The directors regularly monitor and review the financial information, and at the year end had significantly increased the cash reserves held by the company. On the basis of this information the directors consider that the company will continue to operate within its banking arrangements.

Based on their reviews the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024

2. ACCOUNTING POLICIES - continued

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements
The judgements (apart from those involving estimations) that management has made in the process of applying the company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

Depreciation
Tangible assets are recognised at cost less accumulated depreciation and impairments. Depreciation takes place over the estimated useful life, down to the assets residual value. The rate of depreciation for different asset categories is set out in a separate note below, these are reviewed regularly by the directors. The carrying amount of the company's fixed assets is tested as changed conditions show that a need for impairment has arisen.

Stock obsolescence provision
The company's stock values have been assessed at the reporting date for slow moving stock whereby the future value of the stock may be reduced below current valuations due to stock obsolescence. An allowance has therefore been made for slow moving stock in the valuation of the stock.

Stock margin adjustment
The value of finished goods and work in progress at the reporting date is based upon sales price less a profit margin that is reviewed calculated each year. Work in progress valuations are based on those reduced sales prices on a percentage complete basis.

Recognition of deferred tax asset
Deferred tax assets should only be recognised when it is considered probable that they will be recovered against future taxable profits. The pension liability in the balance sheet is shown at a lower value than it would appear from the pension assets and liabilities, as reported later in the notes, due to the reduction in future taxable profits from the contributions required to fund the pension liability.

Pension scheme liability
The company operates a defined benefit pension scheme, as reported on later in the notes. The calculation of the scheme assets and future liabilities is subject to a number of variables outwith the company's control. The company employs the scheme actuaries to provide an annual valuation taking into account these variables, which they review regularly, in order to report on the valuation of the assets and liabilities.

Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, may not equal the related actual outcome.

Accruals
At the end of the year costs due for the period that are unpaid and uninvoiced are reviewed and accounted for by way of accruals, the key figure being commission due to sales agents. The final figure included in the financial statements are checked as far as possible to actual payments made after the year end to be as accurate as possible.

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024

2. ACCOUNTING POLICIES - continued

Bad debt provision
At the end of the year the list of outstanding debtors is reviewed for those who may be at risk of non-payment and a provision is made to include that potential cost in the year. Efforts to collect the debts continue even if provided for and if recovered will be offset against bad debts in the following year.

Turnover
Turnover comprises revenue recognised by the company in respect of goods and services supplied, exclusive of Value Added Tax and trade discounts. Revenue is recognised when when goods are dispatched.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Buildings - Straight line over 40 years
Plant and machinery - at varying rates on cost
Office equipment - 33% on cost
Motor vehicles - 25% on cost

Whilst Buildings are noted to be depreciated over 40 years no charge has been made against their cost on the basis that their estimated residual value is in line with the cost carried in the balance sheet. Should a difference arise in future years it will be depreciated in line with the policy stated above.

Stocks and work in progress
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. In the case of finished goods and work in progress cost comprises direct materials, direct labour and an appropriate proportion of manufacturing fixed and variable overheads. The allocation of manufacturing fixed overhead has regard to budgeted normal production.

Raw materials, consumables and goods for resale - purchase cost on a first in, first out basis. Yarn stock has a small provision made to allow for waste.

Finished goods - cost of direct materials and labour plus attributable overheads based on a normal level of activity. These are calculated from a sales price and a profit margin deducted.

Work in progress - on the same basis as finished goods but with a reduction to allow for percentage of completion at 6 key stages.

Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal.

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
Financial assets
Basic financial assets, including trade and other debtors and bank balances, are initially recognised at transaction price.
At the end of each reporting period financial assets measured at cost are assessed for evidence of impairment. Any impairment loss is recognised in the Income Statement.
Financial assets are derecognised when the contractual rights to the cash flows from the asset expire or are settled.

Financial liabilities
Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. These are classed as current liabilities as payment is due within one year of less. If not they are presented as non-current liabilities.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Other financial instruments
The company utilises short term foreign exchange contracts to try to mitigate the impact of currency fluctuations. At the end of the year there were no contracts carrying forward into the following year, thereby there is no adjustment to the accounts for their use.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

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.

Deferred tax
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.

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024

2. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
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 company operates a defined benefits pension scheme and the pension charge is based on a full actuarial valuation. The assets of these plans are held in separate trustee administered funds. The defined benefit plan's assets are measured using market values. Pension plan liabilities are measured by an actuary using the projected unit method and discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability. The increase in the present value of the liabilities of the company's defined benefit pension plans expected to arise from employee service in the period is charged to operating profit. The expected return on the plan's assets and the increase during the period in the present value of the plan's liabilities arising from the passage of time are included in other finance income. Actuarial gains and losses are recognised in the statement of total recognised gains and losses.

The pension plans, surpluses to the extent that they are considered recoverable, or deficits are recognised in full and presented on the face of the balance sheet net of the related deferred tax.

Government grants
Government grants relating to tangible fixed assets are treated as deferred income and released to the profit and loss account over the expected useful lives of the assets concerned. Other grants are credited to the profit and loss account as the related expenditure is incurred.

3. TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

Period
2.2.22
Year ended to
31.1.24 31.1.23
£    £   
United Kingdom 2,327,062 1,888,523
Europe 4,821,276 4,548,519
United States of America 716,719 672,802
Asia 369,868 376,254
Rest of world 151,912 147,968
8,386,837 7,634,066

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024

4. OTHER OPERATING INCOME
Period
2.2.22
Year ended to
31.1.24 31.1.23
£    £   
Rents received 3,179 3,120
Sundry receipts 2,398 475
Government grants 17,424 17,424
23,001 21,019

5. EMPLOYEES AND DIRECTORS
Period
2.2.22
Year ended to
31.1.24 31.1.23
£    £   
Wages and salaries 3,335,052 2,885,184
Social security costs 298,491 276,981
Other pension costs 217,777 251,560
3,851,320 3,413,725

The average number of employees during the year was as follows:
Period
2.2.22
Year ended to
31.1.24 31.1.23

Production Staff 115 116
Administrative Staff 11 13
126 129

Period
2.2.22
Year ended to
31.1.24 31.1.23
£    £   
Directors' remuneration 107,520 150,569

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

Defined benefit schemes 1 1

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024

6. OPERATING PROFIT

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

Period
2.2.22
Year ended to
31.1.24 31.1.23
£    £   
Hire of plant and machinery 9,392 12,736
Other operating leases 16,120 16,120
Depreciation - owned assets 94,931 110,750
Auditors' remuneration 44,350 29,313
Foreign exchange differences 38,624 (53,686 )

7. INTEREST RECEIVABLE AND SIMILAR INCOME
Period
2.2.22
Year ended to
31.1.24 31.1.23
£    £   
Deposit account interest 3,558 1,093
Other interest receivable 1,815 -
5,373 1,093

8. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
2.2.22
Year ended to
31.1.24 31.1.23
£    £   
Bank interest - 1,876
Bank loan interest 17,620 11,592
Hire purchase 14,011 -
31,631 13,468

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024

9. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
Period
2.2.22
Year ended to
31.1.24 31.1.23
£    £   
Current tax:
Over provision of taxation - (44,618 )

Deferred tax (19,818 ) 41,012
Tax on loss (19,818 ) (3,606 )

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

Period
2.2.22
Year ended to
31.1.24 31.1.23
£    £   
Loss before tax (116,370 ) (134,225 )
Loss multiplied by the standard rate of corporation tax in the UK of
0% (2023 - 0%)

-

-

Effects of:
Adjustments to tax charge in respect of previous periods - (44,618 )

Movement in deferred tax (19,818 ) 41,012
Total tax credit (19,818 ) (3,606 )

Tax effects relating to effects of other comprehensive income

2024
Gross Tax Net
£    £    £   
Actuarial gains/(losses) on pension plan (335,000 ) 64,000 (271,000 )

2.2.22 to 31.1.23
Gross Tax Net
£    £    £   
Actuarial gains/(losses) on pension plan 2,841,000 (540,000 ) 2,301,000

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024

10. DIVIDENDS
Period
2.2.22
Year ended to
31.1.24 31.1.23
£    £   
Ordinary shares of £1.00 each
Final - 90,000

11. TANGIBLE FIXED ASSETS
Plant and Office Motor
Buildings machinery equipment vehicles Totals
£    £    £    £    £   
COST
At 1st February 2023 401,076 2,414,088 237,192 5,999 3,058,355
Additions - 850 - - 850
Disposals - (15,246 ) - - (15,246 )
At 31st January 2024 401,076 2,399,692 237,192 5,999 3,043,959
DEPRECIATION
At 1st February 2023 - 2,079,077 163,652 5,995 2,248,724
Charge for year - 57,467 37,460 4 94,931
Eliminated on disposal - (15,246 ) - - (15,246 )
At 31st January 2024 - 2,121,298 201,112 5,999 2,328,409
NET BOOK VALUE
At 31st January 2024 401,076 278,394 36,080 - 715,550
At 31st January 2023 401,076 335,011 73,540 4 809,631

12. STOCKS
2024 2023
£    £   
Raw materials 717,744 1,232,854
Work-in-progress 816,574 774,110
Finished goods 1,517,992 1,252,605
3,052,310 3,259,569

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,555,360 1,424,804
Tax - 44,618
Prepayments and accrued income 84,057 80,564
1,639,417 1,549,986

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 16) 80,000 80,000
Hire purchase contracts (see note 17) 72,000 -
Trade creditors 618,962 601,621
Social security and other taxes 6,831 23,937
Accruals and deferred income 493,915 407,511
1,271,708 1,113,069

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR
2024 2023
£    £   
Bank loans (see note 16) 133,333 213,333
Hire purchase contracts (see note 17) 252,000 -
385,333 213,333

16. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans 80,000 80,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 80,000 80,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 53,333 133,333

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024

17. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2024 2023
£    £   
Net obligations repayable:
Within one year 72,000 -
Between one and five years 252,000 -
324,000 -

18. SECURED DEBTS

The bank overdraft and loan is secured by a disposition ex facie absolute with The Royal Bank of Scotland over all of the company's premises, and a floating charge over the remaining assets.

19. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 60,666 80,484

Deferred
tax
£   
Balance at 1st February 2023 80,484
Accelerated capital allowances (19,818 )
Other timing differences
Balance at 31st January 2024 60,666

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
9,000 Ordinary £1.00 9,000 9,000

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024

21. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1st February 2023 2,779,484 13,500 2,792,984
Deficit for the year (96,552 ) (96,552 )
Actuarial gain/(loss) on the
pension plan net of deferred tax

(271,000

)

-

(271,000

)

At 31st January 2024 2,411,932 13,500 2,425,432

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024

22. EMPLOYEE BENEFIT OBLIGATIONS

The company operates a defined benefit pension scheme in the UK, which is funded by the payment of contributions to a separately administered trust fund. This scheme is closed to new entrants and therefore under the projected unit method used for FRS 102, the current service cost as a percentage of salary will increase as active members of the scheme approach retirement.

The valuation used for FRS 102 disclosures has been based on the most recent actuarial valuation as at 30 June 2017 and updated to 31 January 2024 by a qualified actuary, to take account of the requirements of FRS 102 in order to assess the liabilities of the scheme at 31 January 2024. Scheme assets are stated at their market value at the respective balance sheet dates.

As the scheme stands, the directors should expect the net pension asset or liability and profit and loss charge to be volatile from year to year. This is because the trustees currently invest the assets largely in equities whereas the liability value depends on the yield on long-dated corporate bonds. These two asset classes can move in different directions, causing the pension disclosure on the balance sheet to improve or deteriorate rapidly.

Analysis of Position
Over the accounting period to 31st January 2024 the FRS 102 overall deficit has increased in size from £3,084,000 to £3,265,000. The deficit reported on the balance sheet of £2,583,000 is after adjusting for deferred taxation.
The following specific items have contributed to this position:

Experience Items:
- The deficit reduction contributions paid by the Company have served to reduce the deficit.
- The performance of the assets was more than expected when compared to the assumption made last year which has served to increase the deficit.The actuarial gain for the year £234,000 (2023 actuarial gain £3,564,000)

Changes Made to the Assumptions:
- The discount rate used has increased from 4.6% p.a.to 4.8% p.a.. This has served to decrease the deficit.
- The CPI price inflation assumption has decreased from 2.75% p.a. to 2.65% p.a. This has served to decrease the deficit.
- The assumption for future salary increases has decreased from 2.75% p.a. to 2.65% p.a. This has served to decrease the deficit.
- Overall, the changes made to the assumptions have served to decrease the liabilities and resultant deficit.

Other factors have had an effect but to a lesser extent.

The table below shows the effect of these experience items and changes made in assumptions for the period ending 31st January 2024:
Item £'000s
Actual return less expected return on the Scheme assets (569 )
Experience gains and losses arising on the Scheme liabilities (57 )
Changes in assumptions underlying the present value of the Scheme liabilities 291
Actuarial gain/(loss) recognised in OCI (335 )

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024

22. EMPLOYEE BENEFIT OBLIGATIONS - continued

The amounts recognised in profit or loss are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Current service cost 77,000 104,000
Net interest from net defined benefit
asset/liability

135,000

130,000
Past service cost - -
212,000 234,000

Actual return on plan assets 227,000 124,000

Changes in the present value of the defined benefit obligation are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Opening defined benefit obligation 7,957,000 11,793,000
Current service cost 77,000 104,000
Contributions by scheme participants 22,000 25,000
Interest cost 362,000 254,000
Benefits paid (271,000 ) (655,000 )
Remeasurements:
Actuarial (gains)/losses from changes in
financial assumptions

(291,000

)

(3,775,000

)
Experience items 57,000 211,000
7,913,000 7,957,000

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024

22. EMPLOYEE BENEFIT OBLIGATIONS - continued

Changes in the fair value of scheme assets are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Opening fair value of scheme assets 4,873,000 5,801,000
Contributions by employer 366,000 301,000
Contributions by scheme participants 22,000 25,000
Expected return 227,000 124,000
Benefits paid (271,000 ) (655,000 )
Return on plan assets (excluding interest
income)

(569,000

)

(723,000

)
4,648,000 4,873,000

The amounts recognised in other comprehensive income are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Actuarial (gains)/losses from changes in
financial assumptions

291,000

3,775,000
Experience items (57,000 ) (211,000 )
Return on plan assets (excluding interest
income)

(569,000

)

(723,000

)
(335,000 ) 2,841,000

The major categories of scheme assets as amounts of total scheme assets are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Diversified Growth Funds 3,065,000 3,870,000
Bonds 1,494,000 955,000
Cash 89,000 48,000
4,648,000 4,873,000

Equities asset allocation includes the TEAMS Diversified Growth Fund.

The company expects to contribute £520,000 in respect of deficit reduction contributions rising by 4% annually.

WILLIAM LOCKIE & COMPANY LIMITED (REGISTERED NUMBER: SC023788)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024

22. EMPLOYEE BENEFIT OBLIGATIONS - continued

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2024 2023
Discount rate 4.80% 4.60%
Future salary increases 2.65% 2.75%
Retail price inflation 3.00% 3.10%
Rate of increase in pensions in payment 2.20% 2.20%
Rate of increase in deferred pensions 2.57% 2.62%

23. RELATED PARTY DISCLOSURES

Key management personnel of the entity or its parent (in the aggregate)

One of the directors is also a shareholder in another company. During the year the net sales and purchases with that company were £11,356 (2022, £5,480) and £97,879 (2023, £97,879) respectively. At the year end William Lockie & Company Ltd were owing the company £15,713 (2023, £12,413). These balances are included within trade creditors in the balance sheet.

One of the directors is also a shareholder and director of another company. During the year the net sales and purchases with that company were £130,586 (2023, £152,204) and £2,072 (2023, £125) respectively. At the year end William Lockie & Company Ltd were due £35,087 from the other company (2023, £52,641). These balances are included within trade debtors in the balance sheet. At the year end William Lockie & Company Ltd were owing the company £2,412 (2023, £Nil). These balances are included withing trade creditors in the balance sheet.

Other related parties

The son of a director has been employed by the company during the year and received a gross salary of £40,222.



24. ULTIMATE CONTROLLING PARTY

In the directors' opinion, the company has no ultimate controlling party.