Company registration number 12473085 (England and Wales)
SCOTFIELD LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
SCOTFIELD LIMITED
COMPANY INFORMATION
Directors
Mr M S Hill
Mr S M Hill
Mr R G Mottram
Mr K Wardrope
Mr A Bolton
Company number
12473085
Registered office
c/o Hill's Panel Products Limited
and business address
Scottfield Road
Oldham
Lancashire
OL8 1LA
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
SCOTFIELD LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 34
SCOTFIELD LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 1 -

The directors present the strategic report for the year ended 28 February 2024.

Review of the business

The group has continued to deliver strong performance during the financial year, despite facing challenges that are common across the industry. The group's leadership experience and continued commitment to quality, innovation, and customer service has positioned it well to navigate these challenges and follow up on opportunities.

The directors are pleased with the overall financial performance. Despite this performance, we experienced a modest downturn in sales, primarily driven by external economic factors. Rising interest rates and the increased cost of living has affected consumer spending, leading to a slowdown in some key markets. However, we have remained agile in our response, adjusting our sales strategies to meet evolving customer needs and maintaining strong relationships across our distribution networks. While these factors present challenges, we believe they are temporary, albeit they are expected to continue to have an impact into FY25.

Looking ahead, the group is well positioned to manage the challenges that lie ahead and the directors remain optimistic, despite general negativity in the business press. We continue to invest in our people, technology, and production capabilities to stay ahead of industry trends and enhance operational efficiency. Our focus remains on delivering exceptional value to our customers, exploring new markets, and maintaining our strong market position. Our team within all areas of the business are a key to this success and we thank them for all their efforts.

Financial Highlights

The results set out in the profit and loss account show that the turnover for the year ended 28 February 2024 was £34.40 million (2023: £35.18 million). The gross profit margin for the year was 25.77% (2023: 28.87%).

Earnings before exceptional costs, interest, tax, depreciation and amortisation (EBITDA) were £2.68 million (2023: £3.89 million) reflecting continued customer development, performance and cost control.

Description of Principal Risks and Uncertainties

The group has robust systems in place and continues to work flexibly to be able to react to any changes arising as a result of the current global and domestic situations and their continued impact on the United Kingdom economy.

 

The group does not actively use financial instruments as part of its financial risk management. The group is exposed to the usual credit and cash flow risks associated with selling on credit and manages this through credit control procedures and where possible insures against such risks. The group finances working capital through retained earnings, an invoice discounting facility, an asset based lending facility and a cash flow loan facility..

 

The financial position of the group at the year end is considered to be strong by the directors.

On behalf of the board

Mr R G Mottram
Director
5 November 2024
SCOTFIELD LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 2 -

The directors present their annual report and financial statements for the year ended 28 February 2024.

Principal activities

The company's principal activity since incorporation has been that of a holding company co-ordinating the activities of the subsidiaries.

 

The principal activity of the group during the year has been that of the manufacture of kitchen units, doors and panel products.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr M S Hill
Mr S M Hill
Mr R G Mottram
Mr K Wardrope
Mr A Bolton
Auditor

In accordance with the company's articles, a resolution proposing that Pierce C A Limited be reappointed as auditor of the group will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr R G Mottram
Director
5 November 2024
SCOTFIELD LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 3 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SCOTFIELD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SCOTFIELD LIMITED
- 4 -
Opinion

We have audited the financial statements of Scotfield Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The 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.

Opinions on other matters prescribed by the Companies Act 2006

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

SCOTFIELD LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCOTFIELD LIMITED
- 5 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

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 financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

In identifying and assessing risks of material misstatements in respect of irregularities (including fraud) we considered the following:

 

We have also performed specific procedures to consider the risk of management override and of fraud arising in significant transactions outside the normal course of business.

We did not identify a material risk of non-compliance with laws and regulations or of fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

SCOTFIELD LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCOTFIELD LIMITED
- 6 -

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 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.

Linda Wilkinson (Senior Statutory Auditor)
For and on behalf of Pierce C A Limited
13 November 2024
Statutory Auditor
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
SCOTFIELD LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
34,403,402
35,184,761
Cost of sales
(25,536,131)
(25,027,316)
Gross profit
8,867,271
10,157,445
Distribution costs
(1,270,611)
(1,469,417)
Administrative expenses
(7,453,196)
(7,012,923)
Other operating income
226,377
46,014
Operating profit
4
369,841
1,721,119
Interest receivable and similar income
8
12,906
768
Interest payable and similar expenses
9
(936,473)
(1,072,282)
(Loss)/profit before taxation
(553,726)
649,605
Tax on (loss)/profit
10
(493,746)
(429,628)
(Loss)/profit for the financial year
25
(1,047,472)
219,977
Loss for the financial year is all attributable to the owners of the parent company.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
SCOTFIELD LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 8 -
2024
2023
£
£
(Loss)/profit for the year
(1,047,472)
219,977
Other comprehensive income
-
-
Total comprehensive income for the year
(1,047,472)
219,977
Total comprehensive income for the year is all attributable to the owners of the parent company.
SCOTFIELD LIMITED
GROUP BALANCE SHEET
AS AT
28 FEBRUARY 2024
28 February 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
8,020,991
9,351,747
Tangible assets
12
4,762,753
5,250,927
12,783,744
14,602,674
Current assets
Stocks
16
4,339,326
4,676,298
Debtors
17
4,527,578
4,306,464
Cash at bank and in hand
287,978
326,191
9,154,882
9,308,953
Creditors: amounts falling due within one year
18
(6,639,847)
(6,005,349)
Net current assets
2,515,035
3,303,604
Total assets less current liabilities
15,298,779
17,906,278
Creditors: amounts falling due after more than one year
19
(16,252,433)
(17,750,942)
Provisions for liabilities
Deferred tax liability
22
656,876
718,394
(656,876)
(718,394)
Net liabilities
(1,610,530)
(563,058)
Capital and reserves
Called up share capital
24
100,000
100,000
Own shares
25
(25,000)
(25,000)
Profit and loss reserves
25
(1,685,530)
(638,058)
Total equity
(1,610,530)
(563,058)

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 5 November 2024 and are signed on its behalf by:
05 November 2024
Mr R G Mottram
Director
Company registration number 12473085 (England and Wales)
SCOTFIELD LIMITED
COMPANY BALANCE SHEET
AS AT 28 FEBRUARY 2024
28 February 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
9,419,961
9,419,961
Current assets
Debtors
17
13,535,757
10,152,699
Cash at bank and in hand
3,775
3,775
13,539,532
10,156,474
Creditors: amounts falling due within one year
18
(6,831,047)
(7,318,314)
Net current assets
6,708,485
2,838,160
Total assets less current liabilities
16,128,446
12,258,121
Creditors: amounts falling due after more than one year
19
(11,797,060)
(11,129,463)
Net assets
4,331,386
1,128,658
Capital and reserves
Called up share capital
24
100,000
100,000
Own shares
25
(25,000)
(25,000)
Profit and loss reserves
25
4,256,386
1,053,658
Total equity
4,331,386
1,128,658

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,202,728 (2023 - £569,303 profit).

The financial statements were approved by the board of directors and authorised for issue on 5 November 2024 and are signed on its behalf by:
05 November 2024
Mr R G Mottram
Director
Company registration number 12473085 (England and Wales)
SCOTFIELD LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 11 -
Share capital
Own shares
Profit and loss reserves
Total
£
£
£
£
Balance at 1 March 2022
100,000
(25,000)
(858,035)
(783,035)
Year ended 28 February 2023:
Profit and total comprehensive income
-
-
219,977
219,977
Balance at 28 February 2023
100,000
(25,000)
(638,058)
(563,058)
Year ended 28 February 2024:
Loss and total comprehensive income
-
-
(1,047,472)
(1,047,472)
Balance at 28 February 2024
100,000
(25,000)
(1,685,530)
(1,610,530)
SCOTFIELD LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 12 -
Share capital
Own shares
Profit and loss reserves
Total
£
£
£
£
Balance at 1 March 2022
100,000
(25,000)
484,355
559,355
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
-
569,303
569,303
Balance at 28 February 2023
100,000
(25,000)
1,053,658
1,128,658
Year ended 28 February 2024:
Profit and total comprehensive income
-
-
3,202,728
3,202,728
Balance at 28 February 2024
100,000
(25,000)
4,256,386
4,331,386
SCOTFIELD LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
3,117,779
3,916,801
Interest paid
(936,473)
(1,072,282)
Income taxes paid
(512,439)
(537,908)
Net cash inflow from operating activities
1,668,867
2,306,611
Investing activities
Purchase of tangible fixed assets
(176,991)
(1,223,589)
Proceeds on disposal of tangible fixed assets
14,000
11,109
Interest received
12,906
768
Net cash used in investing activities
(150,085)
(1,211,712)
Financing activities
Repayment of 8% fixed rate secured loan notes
(2,000,000)
-
Movement on invoice discounting advance
1,180,913
98,275
Proceeds from advance of asset based lending facility
598,257
-
Repayment of asset based lending facility
(909,997)
(828,738)
Payment of finance leases obligations
(426,168)
(421,729)
Net cash used in financing activities
(1,556,995)
(1,152,192)
Net decrease in cash and cash equivalents
(38,213)
(57,293)
Cash and cash equivalents at end of year
287,978
326,191
SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 14 -
1
Accounting policies
Company information

Scotfield Limited ("the company") is a private limited company domiciled and incorporated in England and Wales. The registered office is c/o Hill's Panel Products Limited, Scottfield Road, Oldham, Lancashire, OL8 1LA.

 

The Group consists of Scotfield Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Scotfield Limited and all of its subsidiaries (i.e. entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the period are consolidated using the purchase method. Their results are incorporated from the date that control passes. All financial statements are made up to 28 February 2024.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the Group.

 

The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

 

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

The group has an invoice discounting facility, an inventory facility, a plant and machinery loan facility and a cash flow loan facility available to finance trading operations and ongoing capital investment. The directors are not aware of any reasons why these facilities will not be maintained.

 

As a result the directors have continued to adopt the going concern basis in preparing the financial statements.

 

SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.4
Turnover

Turnover presents amounts receivable for goods and services net of VAT and trade discounts.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Intangible fixed assets - goodwill

Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of ten years.

 

Negative goodwill, being the excess of the fair value of net assets acquired over the fair value of the purchase consideration, is capitalised and credited to the profit and loss account over its estimated useful economic life.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
2.5 % straight line
Plant and equipment
Between 10% and 33% straight line
Motor vehicles
11% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 16 -
1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stock is valued at the lower of cost and net realisable value on a first in first out (FIFO) basis after making due allowances for obsolete and slow moving stock.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 18 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 19 -
1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.18

Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

2
Judgements 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.

SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 20 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
From principal activity
34,403,402
35,184,761
2024
2023
£
£
Other revenue
Interest income
12,906
768
RHI and other income
226,377
46,506
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(9,706)
25,382
Depreciation of owned tangible fixed assets
755,292
595,011
Depreciation of tangible fixed assets held under finance leases
224,756
245,827
Profit on disposal of tangible fixed assets
(1,987)
(3,666)
Amortisation of intangible assets
1,330,756
1,330,756
Operating lease charges
180,898
167,594
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
1,500
1,500
Audit of the financial statements of the company's subsidiaries
25,000
25,000
26,500
26,500
SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 21 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Office and management
28
28
5
5
Sales
27
26
-
-
Manufacturing
139
140
-
-
Total
194
194
5
5

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,030,003
5,481,564
-
0
-
0
Social security costs
506,235
566,241
-
-
Pension costs
245,732
173,640
-
0
-
0
6,781,970
6,221,445
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
678,957
344,008
Company pension contributions to defined contribution schemes
-
18,972
Pensions to former directors
63,251
-
742,208
362,980
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
249,551
99,953
SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 22 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
467
768
Other interest income
12,439
-
Total income
12,906
768
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
33,534
22,151
Other interest
902,939
1,050,131
Total finance costs
936,473
1,072,282
SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 23 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
400,024
176,748
Adjustments in respect of prior periods
155,240
-
0
Total current tax
555,264
176,748
Deferred tax
Origination and reversal of timing differences
(61,518)
252,880
Total tax charge
493,746
429,628

The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
(Loss)/profit before taxation
(553,726)
649,605
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 24.49% (2023: 19.00%)
(135,607)
123,425
Tax effect of expenses that are not deductible in determining taxable profit
145,137
163,360
Permanent capital allowances in excess of depreciation
(1,080)
(30,614)
Depreciation on assets not qualifying for tax allowances
5,889
4,458
Research and development tax credit
-
0
(155,239)
Other permanent differences
(487)
(697)
Under/(over) provided in prior years
155,240
-
0
Preference dividends restated as interest
-
0
11,400
Amortisation of goodwill arising on consolidation
325,902
252,844
Effect of changes in estimated future tax rates
(1,248)
60,691
Taxation charge
493,746
429,628
SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 24 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 March 2023 and 28 February 2024
13,298,548
Amortisation and impairment
At 1 March 2023
3,946,801
Amortisation charged for the year
1,330,756
At 28 February 2024
5,277,557
Carrying amount
At 28 February 2024
8,020,991
At 28 February 2023
9,351,747
The company had no intangible fixed assets at 28 February 2024 or 28 February 2023.
SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 25 -
12
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 March 2023
745,475
6,076,661
609,409
7,431,545
Additions
24,838
70,329
408,720
503,887
Disposals
-
0
-
0
(231,565)
(231,565)
At 28 February 2024
770,313
6,146,990
786,564
7,703,867
Depreciation and impairment
At 1 March 2023
67,889
2,035,940
76,789
2,180,618
Depreciation charged in the year
24,046
794,130
161,872
980,048
Eliminated in respect of disposals
-
0
-
0
(219,552)
(219,552)
At 28 February 2024
91,935
2,830,070
19,109
2,941,114
Carrying amount
At 28 February 2024
678,378
3,316,920
767,455
4,762,753
At 28 February 2023
677,586
4,040,721
532,620
5,250,927
The company had no tangible fixed assets at 28 February 2024 or 28 February 2023.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
686,146
1,394,696
-
0
-
0
Motor vehicles
607,559
289,728
-
0
-
0
1,293,705
1,684,424
-
-
SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 26 -
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
9,419,961
9,419,961
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 March 2023 and 28 February 2024
9,419,961
Carrying amount
At 28 February 2024
9,419,961
At 28 February 2023
9,419,961
14
Subsidiaries

Details of the company's subsidiaries at 28 February 2024 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Redbeam Limited
*
Ordinary
100.00
-
Hill's Panel Products Limited
*
Ordinary
-
100.00
Alexlake Limited
*
Ordinary
-
100.00
HPP Pinnacle Limited
*
Ordinary
-
100.00
Poolbase Limited
*
Ordinary
-
100.00

Registered office addresses (all UK unless otherwise indicated):

*
Scottfield Road, Oldham, Lancashire, OL8 1LA

The individual company accounts for Alexlake Limited (company number 12473377), HPP Pinnacle Limited (company number 06550917) and Poolbase Limited (company number 04302760) have not been subject to audit. All of the companies are entitled to the exemption from audit under Section 479A of the Companies Act 2006 relating to subsidiary companies.

 

Scotfield Limited has guaranteed all the outstanding liabilities to which the above companies are subject to, at 28 February 2024, until such liabilities are satisfied in full. The amount of these liabilities at the balance sheet date was as follows:

 

Alexlake Limited                 £nil

HPP Pinnacle Limited            £nil

Poolbase Limited                £20

SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 27 -
15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
4,208,851
4,021,011
13,535,757
10,152,699
Carrying amount of financial liabilities
Measured at amortised cost
22,569,048
23,410,195
18,628,107
18,447,777
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
3,524,202
3,425,571
-
-
Work in progress
19,132
33,004
-
-
Finished goods and goods for resale
795,992
1,217,723
-
0
-
0
4,339,326
4,676,298
-
-
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,817,766
3,924,266
-
0
-
0
Unpaid share capital
1
1
1
1
Corporation tax recoverable
2,893
45,718
-
0
-
0
Amounts owed by group undertakings
-
-
60,000
60,000
Other debtors
391,084
96,744
13,475,756
10,092,698
Prepayments and accrued income
315,834
239,735
-
0
-
0
4,527,578
4,306,464
13,535,757
10,152,699

Included within Other debtors for the company are 8% fixed rate secured loan notes of £9,135,039 (2023: £7,135,039) issued by Redbeam Limited.

SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 28 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Invoice discounting advance
20
1,279,188
98,275
-
0
-
0
Obligations under finance leases
21
151,621
396,526
-
0
-
0
Preference shares restated as liabilities
20
200,000
200,000
200,000
200,000
Other borrowings
19
909,996
909,997
-
0
-
0
Trade creditors
2,237,831
2,732,047
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
6,625,047
7,113,814
Other taxation and social security
323,232
346,096
-
-
Other creditors
385,801
20
-
0
-
0
Accruals and deferred income
1,152,178
1,322,388
6,000
4,500
6,639,847
6,005,349
6,831,047
7,318,314

The holders of the 1,000,000 redeemable preference shares of £1 each in issue have the right to call upon the company to redeem a maximum of 200,000 such shares in any financial year.

19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
21
370,624
224,991
-
0
-
0
Preference shares restated as liabilities
20
9,144,962
9,144,962
9,144,962
9,144,962
Other borrowings
19
4,084,749
6,396,488
-
0
-
0
Preference dividends payable
2,652,098
1,984,501
2,652,098
1,984,501
16,252,433
17,750,942
11,797,060
11,129,463

Included in Other borrowings are 8% fixed rate secured loan notes of £1,999,999. These loan notes are secured by debentures and guarantees provided over the assets of the group. The loan notes are due for repayment on the tenth anniversary of their issue date.

 

The 8,344,962 8% preference shares of £1 each in issue, reclassified as liabilities, will only be repaid on a liquidation or otherwise of the company.

 

Dividends accruing on the 8% preference shares of £1 each will only be paid on a liquidation or otherwise of the company.

 

 

SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 29 -
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Invoice discounting advance
1,279,188
98,275
-
0
-
0
Other borrowings
2,994,746
4,135,224
-
0
-
0
Preference shares
9,344,962
9,344,962
9,344,962
9,344,962
Loan note instruments
1,999,999
3,999,999
-
0
-
0
15,618,895
16,749,722
9,344,962
9,344,962
Payable within one year
2,389,184
1,208,272
200,000
200,000
Payable after one year
13,229,711
15,541,450
9,144,962
9,144,962

The invoice discounting advance and other borrowings are secured by a fixed and floating charge provided over the assets of the group.

 

Other borrowings relate to amounts advanced under an asset based lending facility.

 

A deed of priority and subordination provides that the floating charges held by the asset based lending facility have priority over the floating charge held by the company's bankers. The floating charges held by the bank have priority over the floating charges held by the holders of the loan note instruments in issue.

21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
151,621
396,274
-
0
-
0
In two to five years
370,624
225,243
-
0
-
0
522,245
621,517
-
-

Finance lease payments represent rentals payable by the group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3-5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Obligations under finance leases are secured on the assets concerned.

SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 30 -
22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
679,437
725,397
Unrelieved pension contributions
(22,561)
(7,003)
656,876
718,394
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 March 2023
718,394
-
Credit to profit or loss
(61,518)
-
Liability at 28 February 2024
656,876
-

The deferred tax liability set out above is expected to reverse within five years and relates to accelerated capital allowances and unrelieved contributions that are expected to mature within the same period.

23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
245,732
173,640

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 31 -
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
90,000
90,000
90,000
90,000
A ordinary shares of £1 each
10,000
10,000
10,000
10,000
100,000
100,000
100,000
100,000

The holders of the redeemable preference shares and the preference shares have the right to receive notice of all general meetings of the company, but have no right to attend and vote at such meetings. The holders of the ordinary shares have the right to attend and vote at such meetings.

 

The profits in respect of any financial period shall be applied firstly in paying to the holders of the redeemable preference shares a quarterly cumulative preferential dividend of 6% per annum, secondly in paying any arrears of dividend due, but unpaid in respect of the redeemable preference shares, thirdly in accruing an amount equal to the dividend due, but unpaid on the preference shares and finally in distributing the balance of such profits as the company determines to distribute amongst the holders of the ordinary shares.

 

On a return of capital on liquidation, capital reduction or otherwise the assets of the company remaining after the payment of its liabilities shall be applied firstly in the payment of any arrears of the preferential dividends, secondly in repaying an amount equal to the amount paid up on the redeemable preference shares, thirdly in repaying an amount equal to the amount paid up on the preference shares including any accrued, but unpaid dividends, fourthly in repaying an amount equal to the amount paid up on the ordinary shares and finally the balance of such assets shall be distributed pro-rata amongst the holders of the ordinary shares.

 

The holders of the redeemable preference shares have the right to call upon the company to redeem a maximum of 200,000 shares in any financial year.

 

The redeemable preference shares and the preference shares have been classified as financial liabilities in accordance with the provisions of the Financial Reporting Standard (FRS 102).

 

 

25
Reserves
Own shares

The Employee Benefit Trust holds shares for distribution to employees. During a previous period the Trust purchased 25,000 A £1 ordinary shares in the group and the company. In accordance with the provisions of FRS 102 the cost of these shares was deducted from shareholders' funds. The costs of running the Trust are charged to the group's profit and loss account as they occur.

SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 32 -
26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
634,088
798,506
-
-
Between two and five years
617,309
1,174,259
-
-
In over five years
151,138
222,535
-
-
1,402,535
2,195,300
-
-

The group has the option to break certain of the above leases re Units 1, 2 and 11, Scottfield Road, Oldham on 31 May 2024 and Units 3, 4, 5, 6, 8 and 9, Scottfield Road, Oldham on 31 May 2025.

27
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
-
400,000
-
-
SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 33 -
28
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
682,208
362,980

All of the directors of Scotfield Limited are considered to be key management personnel by virtue of their authority and responsibility for planning, directing and controlling the activities of the group.

Transactions with related parties

During the year the group entered into the following transactions with related parties:

Rent paid
Loan note interest
2024
2023
2024
2023
£
£
£
£
Group
Entities under common control
467,500
467,500
-
-
Pension scheme in which S M Hill and M S Hill are beneficiaries
221,100
217,538
-
-
Individuals with significant influence over the company
-
-
175,342
320,000

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Entities under common control
325,762
-
Individuals with significant influence over the company
1,999,999
3,999,999

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Entities under common control
-
46,749
29
Events after the reporting date

The group has declared and paid dividends of £45,000 in respect of its issued £1 redeemable preference share capital after the balance sheet date.

SCOTFIELD LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 34 -
30
Directors' transactions

Included in Other debtors in the previous year were loans made by the group to its directors. The total opening balances on these loans was £41,646. The total amount advanced in the current year was £350,802. An amount of £11,646 was repaid. The closing balance on the loans was £380,802. No interest has been charged in respect of these loans in the year.

31
Controlling party

The company is under the control of the directors, S M Hill and M S Hill.

32
Cash generated from group operations
2024
2023
£
£
(Loss)/profit for the year after tax
(1,047,472)
219,977
Adjustments for:
Taxation charged
493,746
429,628
Finance costs
936,473
1,072,282
Investment income
(12,906)
(768)
Gain on disposal of tangible fixed assets
(1,987)
(3,666)
Amortisation and impairment of intangible assets
1,330,756
1,330,756
Depreciation and impairment of tangible fixed assets
980,048
840,838
Movements in working capital:
Decrease/(increase) in stocks
336,972
(332,587)
(Increase)/decrease in debtors
(263,939)
556,397
Increase/(decrease) in creditors
366,088
(196,056)
Cash generated from operations
3,117,779
3,916,801
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