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T D C (ABERDEEN) LIMITED





ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

 
T D C (ABERDEEN) LIMITED
 

COMPANY INFORMATION


Directors
Neil Milne 
Helen Milne 
Karen Mcneil 
John Douglas 




Company secretary
Shepherd & Wedderburn Secretaries Limited



Registered number
SC181456



Registered office
37 Albyn Place

Aberdeen

Aberdeen City

AB10 1YN




Independent auditor
Anderson Anderson & Brown Audit LLP

Kingshill View

Prime Four Business Park

Kingswells

Aberdeen

AB15 8PU





 
T D C (ABERDEEN) LIMITED
 

CONTENTS



Page
Group strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Consolidated statement of comprehensive income
10
Consolidated balance sheet
11 - 12
Company balance sheet
13 - 14
Consolidated statement of changes in equity
15
Company statement of changes in equity
16
Consolidated statement of cash flows
17 - 18
Consolidated analysis of net debt
19
Notes to the financial statements
20 - 40

 
T D C (ABERDEEN) LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Introduction
 
The group supplies a comprehensive range of vital services and products to the international oil and gas, power generation, utilities, renewable's, marine, defence and manufacturing markets.  These include low voltage and high voltage electric motor and generator repairs, high voltage electric motor and generator manufacturing, electrical inspection, repair and maintenance services, mechanical engineering services, control panel manufacturing, and condition monitoring services, with particular specialism in the inspection and repair of ‘Ex’ certified equipment.

Business review
 
Despite the backdrop of various macro environmental factors presenting risk to all businesses both in the UK and overseas during the financial year, including the ongoing Russo-Ukrainian war, high inflation, and continuing post pandemic supply chain disruptions, it is extremely pleasing to be able to report that the group achieved substantial growth.  Turnover for the group increased by 43% to £33.2m and profit before tax increased by 69%.
The group attained this high growth trajectory by mitigating risks in the macro environment through supplying a wide range of equipment and services to a variety of market sectors.   The group also enjoys the combined benefits of having a high voltage motor and generator OEM within its company portfolio, and comprehensive electro-mechanical service capabilities.  The group holds the well-established Parsons Peebles brand and retains the intellectual property for the archived designs of a large installed base of equipment across the globe, dating back to the middle of the last century. This generates substantial aftermarket revenues and provides prospects for orders for the manufacture of new drop-in replacement machines. There are several other factors which assist with the group’s operational resilience.  These include a highly skilled and flexible workforce which can be deployed across the group, and a wide global supply base, to limit reliance on individual vendors.  
Business activity levels continued the increasing trend seen in the previous financial year.  The group’s strategy of related diversification, and expansion of its manufacturing and services portfolio, has been instrumental in the group continuing to expand market share within the oil and gas sector. It is expected that the UK North Sea industry will see a shift in focus from hydrocarbon energy to cleaner energy, and the group is reacting by not only concentrating on securing additional contracts within the renewable energy sector, but by also continuing to provide high quality services and products to customers in the oil and gas industry as they themselves transition into renewables.
The group has also seen continued expansion in other markets, such as defence and nuclear power generation, following the award of several high value contracts during the financial year, from domestic and international customers.   The group also has an established customer base within the utilities industry and is continuing to focus on increasing business levels in this sector. 
Moving into financial year ending 2024, the group carried forward a strong order book for the manufacture and overhaul of electro-mechanical rotational equipment and electrical protection and control cubicles. The group has subsequently been successful in securing several additional high value contracts within the UK and internationally, with further contract awards still pending.

Page 1

 
T D C (ABERDEEN) LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Principal risks and uncertainties
 
The group's operations expose it to a variety of financial risks that include competitive risk, market risk, credit risk and liquidity risk. The policies and management processes seek to mitigate any adverse effects of these on the financial performance of the group. The key business risks and uncertainties affecting the group are set below.
Competitive risk
The group faces competition for both contracts and resources. With a broad range of services, the group offers a variety of options to customers ranging from a single service through to fully integrated services. Focus is on project execution to deliver on time and budget. The board regularly monitor the market and its competitors in order to identify opportunities.
Market risk
The group is continuing to target customers out with the oil and gas industry to reduce exposure to volatility in the market. As a result, the group now operates in a number of UK and global markets, such as renewable's, marine, defence, nuclear power, and electrical and water utilities.  The group has a small share of the market in most cases, and therefore, should not be restricted for future growth potential.
Credit risk
The group's principal financial assets are bank balances and cash, trade and other receivables. Credit risk is primarily attributable to its trade and other receivables and is managed through maintaining good customer relationships and the monitoring of credit levels and settlement periods. The amounts presented in the balance sheet are net of allowances for doubtful receivables. In addition, the group monitors the financial health of customers and sets credit terms and limits appropriate to the customers' financial strength.
Liquidity risk
In order to maintain liquidity and to ensure sufficient funds are available for ongoing and future developments, the group monitor the timing of cash flows and aligns this with its strategic planning. The group's primary source of finance is the operating cash flows it generates and through equity. 
Financial key performance indicators 
The group's key financial performance indicators during the period were as follows:
 
Group key performance indicator 
2023
2022
Variance

£000
£000
%
Turnover
33,243
23,313
43
Gross profit
9,450
6,574
44
Profit before taxation
2,283
1,254
69
EBITDA
2,674
1,760
52
Equity shareholder funds
9,363
7,642
24

The results show that the group’s turnover increased from £23.3m in year ending 2023 to £33.2m in the financial year ending September 2023. This increase continued the trend seen in the previous financial year, as markets bounced back following the impact of the Coronavirus pandemic.
Page 2

 
T D C (ABERDEEN) LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023


EBITDA increased by 52% compared to the previous financial year. This has been achieved despite cost pressures caused by high energy costs, inflationary increases and higher interest rates. These have been mitigated through making operational efficiencies and cost control achieved by measures such as centralising support functions, whilst maintaining delivery of high-quality customer services.
The average number of employees during the year has increased by 18% to 228, and job vacancies within the group are at higher-than-normal levels.  Like many businesses in the engineering sector, the group faces the challenge of recruiting suitably qualified engineers.  To mitigate this risk, the group increased its level of apprentice intake during the year to invest in the future.  The group also understands that its people are its greatest asset and are the key to long term success, and it continued to make significant investment in staff training programmes throughout the year.  The group also aims to provide fair and competitive remuneration to employees, and it enhanced its standard employment packages during the year, to maximise retention and to attract suitable staff resources.

Future developments
 
The group continues to identify opportunities with existing and new clients to increase its market share and remove reliance on the oil and gas industry. Since the year end, the group has been successful in being awarded large contracts across a varied range of sectors, both in the UK and internationally, with further contract awards still pending.  This has been achieved through the group’s strategy of expansion through related diversification, and in particular, the addition of high voltage electric motor and generator manufacturing and repair capabilities to the service portfolio.  This has increased the group’s competitiveness in the electro-mechanical rotating equipment field and provides opportunities for expanding the geographic offering of existing services.
The directors’ primary concern continues to be the safety and well-being of all employees, and the group is committed to maintaining robust, effective health and safety management systems.  T D C Parsons Peebles achieved ISO 45001:2018 accreditation in early 2024; a certification which was already held by T D C (Aberdeen). The group shall focus on achieving this accreditation for the remainder of the companies in the group.


This report was approved by the board and signed on its behalf.





Neil Milne
Director

Date: 31 October 2024
Page 3

 
T D C (ABERDEEN) LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

The directors present their report and the financial statements for the year ended 30 September 2023.

Principal activity

The principal activity of the group and parent company continued to be that of the provision of electrical, mechanical, and electronic engineering services.

Results and dividends

The profit for the year, after taxation, amounted to £1,716,810 (2022 - £1,174,695).

During the year there were no dividends paid (2022 - £30,000).

Directors

The directors who served during the year were:

Neil Milne 
Helen Milne 
Karen Mcneil 
John Douglas 

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company and the group's auditor is unaware; and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the group's auditor is aware of that information.

Infomation contained within Strategic Report

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

Post balance sheet events

There have been no significant events affecting the group since the year end.

Auditor

Under section 487(2) of the Companies Act 2006Anderson Anderson & Brown Audit LLP will be deemed to have been reappointed as auditor.

This report was approved by the board and signed on its behalf.
 





Neil Milne
Director

Date: 31 October 2024
Page 4

 
T D C (ABERDEEN) LIMITED
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 the group and of the profit or loss of the group for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent; and


prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group 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 the group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5

 
T D C (ABERDEEN) LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF T D C (ABERDEEN) LIMITED
 

Opinion


We have audited the financial statements of T D C (Aberdeen) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2023, which comprise the group Statement of comprehensive income, the group and company Balance sheets, the group Statement of cash flows, the group and company Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the group's and of the parent company's affairs as at 30 September 2023 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 6

 
T D C (ABERDEEN) LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF T D C (ABERDEEN) LIMITED (CONTINUED)


Other information


The other information comprises the information included in the annual report other than the financial statements and  our Auditor's report thereon.  The directors are responsible for the other information contained within the annual report.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.  If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.  If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
T D C (ABERDEEN) LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF T D C (ABERDEEN) LIMITED (CONTINUED)


Auditor's responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the parent company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, Health & Safety, Employment and Taxation legislation.
 
We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:

Management override of controls to manipulate the group’s key performance indicators to meet targets;
Timing and completeness of revenue recognition;
Management judgement applied in calculating provisions; and
Compliance with relevant laws and regulations which directly impact the financial statements and those that the company needs to comply with for the purpose of trading.

Our audit procedures to respond to these risks included:

Testing of journal entries and other adjustments for appropriateness;
Evaluating the business rationale of significant transactions outside the normal course of business;
Reviewing judgements made by management in their calculation of accounting estimates for potential management bias, including estimates with regard to revenue recognition;
Enquiries of management about litigation and claims and inspection of relevant correspondence;
Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non-compliance with laws and regulations; and
Performing a disclosure checklist on the financial statements to ensure Companies Act 2006 requirements are satisfied.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditor's report.
Page 8

 
T D C (ABERDEEN) LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF T D C (ABERDEEN) LIMITED (CONTINUED)


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 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Graeme Penman (Senior statutory auditor)
  
for and on behalf of
Anderson Anderson & Brown Audit LLP
 
Statutory Auditor
  
Kingshill View
Prime Four Business Park
Kingswells
Aberdeen
AB15 8PU

6 November 2024
Page 9

 
T D C (ABERDEEN) LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
33,243,077
23,312,759

Cost of sales
  
(23,793,456)
(16,738,342)

Gross profit
  
9,449,621
6,574,417

Administrative expenses
  
(7,100,474)
(5,220,838)

Other operating income
 5 
37,165
59,806

Operating profit
 6 
2,386,312
1,413,385

Interest receivable and similar income
 10 
1,250
47

Interest payable and similar expenses
 11 
(104,351)
(59,125)

Profit before taxation
  
2,283,211
1,354,307

Tax on profit
 12 
(566,401)
(179,612)

Profit for the financial year
  
1,716,810
1,174,695

  

Release of negative goodwill
  
4,363
4,363

Other comprehensive income for the year
  
4,363
4,363

Total comprehensive income for the year
  
1,721,173
1,179,058

Profit for the year attributable to:
  

Owners of the parent company
  
1,716,810
1,174,695

  
1,716,810
1,174,695

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

The notes on pages 20 to 40 form part of these financial statements.
Page 10

 
T D C (ABERDEEN) LIMITED
REGISTERED NUMBER: SC181456

CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Goodwill
 14 
9,418
13,183

Negative goodwill
 14 
(88,832)
(93,195)

Tangible assets
 15 
2,300,033
1,877,230

  
2,220,619
1,797,218

Current assets
  

Stocks
 17 
1,677,758
1,411,587

Debtors: amounts falling due within one year
 18 
12,058,671
8,846,359

Cash at bank and in hand
 19 
2,543,916
1,643,748

  
16,280,345
11,901,694

Creditors: amounts falling due within one year
 20 
(7,824,871)
(4,516,616)

Net current assets
  
 
 
8,455,474
 
 
7,385,078

Total assets less current liabilities
  
10,676,093
9,182,296

Creditors: amounts falling due after more than one year
 21 
(1,129,048)
(1,428,907)

Provisions for liabilities
  

Deferred taxation
 24 
(183,994)
(111,511)

  
 
 
(183,994)
 
 
(111,511)

Net assets
  
9,363,051
7,641,878


Capital and reserves
  

Called up share capital 
 25 
783,380
783,380

Share premium account
 26 
75,042
75,042

Capital redemption reserve
 26 
400,000
400,000

Other reserves
 26 
8,338
8,338

Profit and loss account
 26 
8,096,291
6,375,118

  
9,363,051
7,641,878

Page 11

 
T D C (ABERDEEN) LIMITED
REGISTERED NUMBER: SC181456

CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Neil Milne
Director

Date: 31 October 2024

The notes on pages 20 to 40 form part of these financial statements.
Page 12

 
T D C (ABERDEEN) LIMITED
REGISTERED NUMBER: SC181456

COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 15 
1,652,861
1,637,380

Investments
 16 
2,097,163
2,097,163

  
3,750,024
3,734,543

Current assets
  

Stocks
 17 
1,008,039
934,593

Debtors: amounts falling due within one year
 18 
7,673,706
7,206,916

Cash at bank and in hand
 19 
1,086,798
553,556

  
9,768,543
8,695,065

Creditors: amounts falling due within one year
 20 
(4,009,999)
(3,644,424)

Net current assets
  
 
 
5,758,544
 
 
5,050,641

Total assets less current liabilities
  
9,508,568
8,785,184

  

Creditors: amounts falling due after more than one year
 21 
(1,024,048)
(1,263,907)

Provisions for liabilities
  

Deferred taxation
 24 
(81,584)
(75,015)

  
 
 
(81,584)
 
 
(75,015)

Net assets
  
8,402,936
7,446,262


Capital and reserves
  

Called up share capital 
 25 
783,380
783,380

Share premium account
 26 
75,042
75,042

Capital redemption reserve
 26 
400,000
400,000

Other reserves
 26 
8,338
8,338

Profit and loss account brought forward
  
6,179,502
5,009,814

Profit for the year
  
956,674
1,299,688

Other changes in the profit and loss account

  

-
(130,000)

Profit and loss account carried forward
  
7,136,176
6,179,502

  
8,402,936
7,446,262

Page 13

 
T D C (ABERDEEN) LIMITED
REGISTERED NUMBER: SC181456

COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Neil Milne
Director

Date: 31 October 2024

The notes on pages 20 to 40 form part of these financial statements.
Page 14

 
T D C (ABERDEEN) LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023


Called up share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss account
Total equity

£
£
£
£
£
£


At 1 October 2021
883,380
75,042
300,000
8,338
5,326,060
6,592,820



Profit for the year
-
-
-
-
1,174,695
1,174,695

Release of negative goodwill
-
-
-
-
4,363
4,363

Dividends: Equity capital
-
-
-
-
(30,000)
(30,000)

Purchase of own shares
(100,000)
-
100,000
-
(100,000)
(100,000)



At 1 October 2022
783,380
75,042
400,000
8,338
6,375,118
7,641,878



Profit for the year
-
-
-
-
1,716,810
1,716,810

Release of negative goodwill
-
-
-
-
4,363
4,363


At 30 September 2023
783,380
75,042
400,000
8,338
8,096,291
9,363,051


The notes on pages 20 to 40 form part of these financial statements.
Page 15

 
T D C (ABERDEEN) LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023


Called up share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss account
Total equity

£
£
£
£
£
£


At 1 October 2021
883,380
75,042
300,000
8,338
5,009,814
6,276,574



Profit for the year
-
-
-
-
1,299,688
1,299,688

Dividends: Equity capital
-
-
-
-
(30,000)
(30,000)

Purchase of own shares
(100,000)
-
100,000
-
(100,000)
(100,000)



At 1 October 2022
783,380
75,042
400,000
8,338
6,179,502
7,446,262



Profit for the year
-
-
-
-
956,674
956,674


At 30 September 2023
783,380
75,042
400,000
8,338
7,136,176
8,402,936


The notes on pages 20 to 40 form part of these financial statements.
Page 16

 
T D C (ABERDEEN) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,716,810
1,174,695

Adjustments for:

Amortisation of intangible assets
3,765
3,765

Depreciation of tangible assets
284,330
186,580

Loss on disposal of tangible assets
(5,750)
-

Interest paid
104,351
59,125

Interest received
(1,250)
(47)

Taxation charge
566,401
179,612

(Increase) in stocks
(266,171)
(114,366)

(Increase) in debtors
(3,212,312)
(3,083,442)

Increase in creditors
3,042,932
1,572,873

Corporation tax (paid)
(228,595)
(149,937)

Net cash generated from operating activities

2,004,511
(171,142)


Cash flows from investing activities

Purchase of tangible fixed assets
(707,133)
(413,063)

Sale of tangible fixed assets
5,750
-

Interest received
1,250
47

Net cash from investing activities

(700,133)
(413,016)
Page 17

 
T D C (ABERDEEN) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023


2023
2022

£
£



Cash flows from financing activities

Redemption of shares
-
(100,000)

Repayment of bank loans
(299,859)
(301,687)

Repayment of finance lease obligations
-
(10,903)

Dividends paid
-
(30,000)

Interest paid
(104,351)
(59,125)

Net cash used in financing activities
(404,210)
(501,715)

Net increase/(decrease) in cash and cash equivalents
900,168
(1,085,873)

Cash and cash equivalents at beginning of year
1,643,748
2,729,621

Cash and cash equivalents at the end of year
2,543,916
1,643,748


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,543,916
1,643,748

2,543,916
1,643,748


The notes on pages 20 to 40 form part of these financial statements.

Page 18

 
T D C (ABERDEEN) LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2023




At 1 October 2022
Cash flows
At 30 September 2023
£

£

£

Cash at bank and in hand

1,643,748

900,168

2,543,916

Debt due after 1 year

(1,428,907)

299,859

(1,129,048)

Debt due within 1 year

(320,714)

-

(320,714)


(105,873)
1,200,027
1,094,154

The notes on pages 20 to 40 form part of these financial statements.
Page 19

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

1.


General information

T D C (Aberdeen) Limited (the `parent company`) is a private limited company domiciled and incorporated in Scotland. The registered office is 37 Albyn Place, Aberdeen, AB10 1YN. 
The parent company's principal place of business is Bankhead Industrial Estate, Bankhead Avenue, Bucksburn, Aberdeen, AB21 9ET. The nature of the group and parent company's operations and its principal activities are set out within the Strategic Report.
The group consists of T D C (Aberdeen) Limited and all of its subsidiaries.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgement in applying the group's accounting policies (see note 3).

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the parent company and its own subsidiaries (the `group`) as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

Based on operating forecasts prepared, the directors are satisfied that the group and parent company have adequate financial resources to continue to operate and meet its liabilities as they fall due for at least 12 months from the date of approving the financial statements. Thus the directors continue to adopt the going concern basis forpreparation of the financial statements.

Page 20

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the group has transferred the significant risks and rewards of ownership to the buyer;
the group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Operating leases: the group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Page 21

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.11

Pensions

Defined contribution pension plan

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the group in independently administered funds.

Page 22

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company and the group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.13

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Goodwill
-
4 - 10 years

Page 23

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
3 - 4% straight line
Leasehold buildings
-
Nil until brought into use
Leasehold improvements
-
10 - 25% straight line
Plant & machinery
-
12.5 - 25% straight line
Motor vehicles
-
33% straight line
Fixtures, fittings and equipment
-
20 - 25% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.17

Debtors

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.

Page 24

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the group's cash management.

 
2.19

Creditors

Short-term 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.

 
2.20

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.21

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.22

Financial instruments

The group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
 
Page 25

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)


2.22
Financial instruments (continued)


Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

 
2.23

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 26

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Amounts recoverable on contracts
Management make judgements about the progress of jobs and recognise costs and revenue proportionally on that basis. This affects the valuation of amounts recoverable on contracts which was carried at £4,099,854 (2022 - £2,690,616).
Depreciation of fixed assets
The amount of depreciation charged is based on management’s assessment of the useful economic lives and estimated residual values of the related fixed assets. On the basis that the estimated residual value of leasehold properties is at least equal to their carrying value, no depreciation has been charged in these  accounts.
Carrying value of stocks
Management review the carrying value of stocks at the period end and assess whether there has been any impairment due to obsolescence. Management’s judgements around this would impact the valuation of stocks.

Page 27

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Derived from principal activity
33,243,077
23,312,759

33,243,077
23,312,759


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
26,593,841
20,351,168

Rest of the world
6,649,236
2,961,591

33,243,077
23,312,759



5.


Other operating income

2023
2022
£
£

Government grants receivable
-
19,630

Sundry income
37,165
40,176

37,165
59,806



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
28,204
6,623

Operating lease charges
961,817
940,079

Depreciation
284,330
186,580

Amortisation
3,765
3,765


7.


Auditor's remuneration

2023
2022
£
£

Fees payable to the parent company's auditor for the audit of the consolidated and parent company's financial statements
58,000
55,000

Page 28

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2023
2022
£
£

Wages and salaries
9,747,747
7,663,897

Social security costs
999,143
837,937

Cost of defined contribution scheme
656,108
516,135

11,402,998
9,017,969


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Operational
155
116
106
90



Management & administrative
73
82
51
41

228
198
157
131


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
13,043
13,043

Group contributions to defined contribution pension schemes
18,962
-

32,005
13,043


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £108,263 (2022 - £94,358).

The value of the group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £8,962 (2022 - £7,590).

Page 29

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

10.


Interest receivable

2023
2022
£
£


Bank interest receivable
1,250
47

1,250
47


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
104,351
59,125

104,351
59,125


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
464,978
70,773

Adjustments in respect of previous periods
(46)
22,754

Foreign tax


Foreign tax in respect of prior periods
28,986
-

Total current tax

493,918
93,527

Deferred tax


Origination and reversal of timing differences
71,330
45,563

Changes to tax rates
(161)
40,522

Effect of tax rate change on opening balance
1,314
-

Total deferred tax

72,483
86,085


Tax on profit
566,401
179,612
Page 30

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 22% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
2,283,211
1,354,307


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 22% (2022 - 19%)
502,494
257,318

Effects of:


Expenses not deductible for tax purposes
13,499
1,837

Fixed asset differences
(1,749)
(14,591)

Adjustments to tax charge in respect of prior periods
28,940
(99,017)

Deferred tax adjustment in respect of prior years
(161)
40,522

Remeasurement of deferred tax rate
10,025
15,048

Other tax adjustments, relief's and transfers
14,616
(4,383)

Movement in deferred tax not recognised
(1,263)
(17,122)

Total tax charge for the year
566,401
179,612


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Dividends

2023
2022
£
£


Dividend paid
-
30,000

-
30,000

Page 31

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

14.


Intangible assets

Group and Company





Goodwill
Negative goodwill
Total

£
£
£



Cost


At 1 October 2022
58,278
(114,011)
(55,733)



At 30 September 2023

58,278
(114,011)
(55,733)



Amortisation


At 1 October 2022
45,095
(20,816)
24,279


Charge for the year on owned assets
3,765
(4,363)
(598)



At 30 September 2023

48,860
(25,179)
23,681



Net book value



At 30 September 2023
9,418
(88,832)
(79,414)



At 30 September 2022
13,183
(93,195)
(80,012)



Page 32

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

15.


Tangible fixed assets

Group






Freehold property
Leasehold buildings
Plant & machinery
Motor vehicles
Fixtures, fittings & equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 October 2022
215,000
1,805,979
2,860,870
166,936
300,348
5,349,133


Additions
-
137,717
428,944
3,200
137,272
707,133


Disposals
-
-
-
(17,575)
-
(17,575)



At 30 September 2023

215,000
1,943,696
3,289,814
152,561
437,620
6,038,691



Depreciation


At 1 October 2022
116,100
586,909
2,418,220
162,677
187,997
3,471,903


Charge for the year on owned assets
8,600
18,520
191,361
5,292
60,557
284,330


Disposals
-
-
-
(17,575)
-
(17,575)



At 30 September 2023

124,700
605,429
2,609,581
150,394
248,554
3,738,658



Net book value



At 30 September 2023
90,300
1,338,267
680,233
2,167
189,066
2,300,033



At 30 September 2022
98,900
1,219,070
442,650
4,259
112,351
1,877,230

Included within leasehold buildings are assets under construction of £1,154,118 (2022 - £1,153,543). The assets were brought into operational use subsequent to the balance sheet date.

Page 33

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

           15.Tangible fixed assets (continued)


Company






Freehold property
Leasehold buildings
Plant & machinery
Motor vehicles
Fixtures, fittings & equipment
Total

£
£
£
£
£
£

Cost or valuation


At 1 October 2022
215,000
1,781,909
2,227,237
135,136
167,928
4,527,210


Additions
-
40,563
307,362
3,200
15,681
366,806


Disposals
-
-
(170,691)
(17,575)
-
(188,266)



At 30 September 2023

215,000
1,822,472
2,363,908
120,761
183,609
4,705,750



Depreciation


At 1 October 2022
116,100
580,850
1,946,385
135,136
111,359
2,889,830


Charge for the year on owned assets
8,600
10,842
131,332
1,033
28,827
180,634


Disposals
-
-
-
(17,575)
-
(17,575)



At 30 September 2023

124,700
591,692
2,077,717
118,594
140,186
3,052,889



Net book value



At 30 September 2023
90,300
1,230,780
286,191
2,167
43,423
1,652,861



At 30 September 2022
98,900
1,201,059
280,852
-
56,569
1,637,380

Included within leasehold buildings are assets under construction of £1,154,118 (2022 - £1,153,543). The assets were brought into operational use subsequent to the balance sheet date.






Page 34

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 October 2022
2,097,163



At 30 September 2023
2,097,163





Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Registered office

Principal activity

Class of shares

Holding

Deebridge Electrical Engineers Limited
37 Albyn Place, Aberdeen, AB10 1YN
Electrical engineering
Ordinary
100%
MCI Electrotechnics Limited
37 Albyn Place, Aberdeen, AB10 1YN
Manufacture, installation & maintenance of low voltage electrical switchgear
Ordinary
100%
T D C Parson Peebles Limited
Bankhead Industrial Estate, Bankhead Avenue, Bucksburn, Aberdeen AB21 9ET
Engineering activities
Ordinary
100%


17.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Work in progress
411,116
139,530
-
-

Finished goods and goods for resale
1,266,642
1,272,057
1,008,039
934,593

1,677,758
1,411,587
1,008,039
934,593


Page 35

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

18.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade debtors
7,611,641
5,942,567
4,700,335
4,270,661

Amounts owed by group undertakings
-
-
110,924
989,439

Other debtors
53,766
109,607
1,090
4,169

Prepayments and accrued income
132,119
103,569
16,668
6,650

Amounts recoverable on long-term contracts
4,261,145
2,690,616
2,844,689
1,935,997

12,058,671
8,846,359
7,673,706
7,206,916


Amounts owed by group undertakings are repayable on demand and interest free.


19.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
2,543,916
1,643,748
1,086,798
553,556

2,543,916
1,643,748
1,086,798
553,556



20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans (note 22)
320,714
320,714
260,714
260,714

Trade creditors
2,294,451
1,769,474
981,354
1,159,865

Amounts owed to group undertakings
-
-
1,164,388
1,083,736

Corporation tax
399,504
134,181
166,040
90,454

Other taxation and social security
907,482
810,314
653,549
591,113

Other creditors
51,302
45,095
8,611
10,903

Accruals and deferred income
3,851,418
1,436,838
775,343
447,639

7,824,871
4,516,616
4,009,999
3,644,424


Amounts owed to group undertakings are repayable on demand and interest free.

Page 36

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

21.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans (note 22)
1,129,048
1,428,907
1,024,048
1,263,907

1,129,048
1,428,907
1,024,048
1,263,907





22.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank loans
320,714
320,714
260,714
260,714

 
Amounts falling due 1-2 years

Bank loans
320,714
320,714
260,714
260,714

 
Amounts falling due 2-5 years

Bank loans
377,143
637,143
332,143
532,143

 
Amounts falling due after more than 5 years

Bank loans
431,191
471,050
431,191
471,050

1,449,762
1,749,621
1,284,762
1,524,621


The group has various bank term loans repayable by equal monthly installments over a period between 5 and 15 years. The interest rates on these loans are a percentage between 1.7% and 3.3% over Bank of England base rate. 
The bank loans are secured by a bond and floating charge over the assets of the company to which they relate. The group also has a Cross Corporation Guarantee between the parent company and other group entites in place covering the bank borrowings of group companies. 

Page 37

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

23.


Financial instruments

Group
Group
2023
2022
£
£

Financial assets

Financial assets measured at fair value through profit or loss
2,543,916
1,643,748

Financial assets that are debt instruments measured at amortised cost
11,812,829
9,100,947


Financial liabilities

Financial liabilities measured at amortised cost
(7,646,933)
5,316,333


Financial assets measured at fair value through profit or loss comprise cash at bank.


24.


Deferred taxation


Group



2023


£






At beginning of year
(111,511)


Charged to profit or loss
(72,483)



At end of year
(183,994)

Company


2023


£






At beginning of year
(75,015)


Charged to profit or loss
(6,569)



At end of year
(81,584)

The provision for deferred taxation is made up as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(194,649)
(119,097)
(89,856)
(81,720)

Short term timing differences
10,655
7,586
8,272
6,705

(183,994)
(111,511)
(81,584)
(75,015)

Page 38

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

25.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



83,380 (2022 - 83,380) Ordinary shares of £1 each
83,380
83,380
700,000 (2022 - 700,000) Preference shares of £1 each
700,000
700,000

783,380

783,380

The parent company have one class of ordinary shares which carry full voting, dividend and capital distribution rights.
The redeemable preference shares carry no voting and dividend rights but do confer rights to capital distribution and rights of redemption at the option of the company.



26.


Reserves

Share premium account

The share premium account represents the excess of par value received for the ordinary share capital on initial issue of shares. This reserve is non-distributable.

Capital redemption reserve

The capital redemption reserve represents amounts capitalised to maintain fixed capital following the  purchase or redemption of shares.

Other reserves

This reserve represents shares for options exercisable in the future. This reserve is non-distributable.

Profit and loss account

Profit and loss reserves represent cumulative distributable reserves.


27.


Pension commitments

The group's contributions to defined contribution pension schemes in the year were £656,108 (2022 - £516,135). Outstanding contributions accrued at the year end amounted to £70,797 (2022 - £60,135).

Page 39

 
T D C (ABERDEEN) LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

28.


Commitments under operating leases

At 30 September 2023, the group and the parent company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
907,246
725,208
704,746
439,568

Later than 1 year and not later than 5 years
3,187,812
1,109,096
2,377,812
546,596

Later than 5 years
10,420,000
10,405,467
9,002,500
8,537,867

14,515,058
12,239,771
12,085,058
9,524,031

Total lease commitments include lease agreements in relation to the operating premises of the group and parent company. Included with the analysis above are leases which have have annual payments of £472,500 (parent company - £270,000) and are due to expire in September & October 2035. 
There are further leases leases which have annual payments of £200,000 and £60,000 (parent company - £200,000 and £60,000) and are due to expire in September 2037 and June 2120 respectively.


29.


Related party transactions

During the year, the group paid rent of £472,500 (2022 - £484,150) to a pension fund which a director is a member of. As at the year end £84,000 (2022 - £92,250) was outstanding. 
During the year, the parent company paid rent of £270,000 (2022 - £270,000) to a pension fund which a director is a member of. As at the year end £nil (2022 - £nil) was outstanding. 
The company has taken advantage of exemptions under Financial Reporting Standard 102 s.33.1A not to disclose transactions with group undertakings within T D C (Aberdeen) Limited as it is a subsidiary whose results are included in publicly available consolidated accounts.  


30.


Controlling party

The group was under the control of director Neil Milne throughout the current and previous year.

Page 40