REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 29 February 2024 |
for |
ZOT Engineering Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 29 February 2024 |
for |
ZOT Engineering Limited |
ZOT Engineering Limited (Registered number: SC057167) |
Contents of the Financial Statements |
for the Year Ended 29 February 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Income Statement | 7 |
Other Comprehensive Income | 8 |
Statement of Financial Position | 9 |
Statement of Changes in Equity | 10 |
Statement of Cash Flows | 11 |
Notes to the Statement of Cash Flows | 12 |
Notes to the Financial Statements | 13 |
ZOT Engineering Limited |
Company Information |
for the Year Ended 29 February 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
14 Rutland Square |
Edinburgh |
Midlothian |
EH1 2BD |
BANKERS: |
36 St Andrew Square |
Edinburgh |
EH2 2AD |
SOLICITORS: |
58 Morrison Street |
Edinburgh |
EH3 8BP |
ZOT Engineering Limited (Registered number: SC057167) |
Strategic Report |
for the Year Ended 29 February 2024 |
The directors present their strategic report for the year ended 29 February 2024. |
REVIEW OF BUSINESS |
The principal activities of the Company in the year under review were that of light engineering, the manufacture of printed circuit boards, sheet metal work and assembly. The key strategies of the Company remain on increasing turnover and profitability through continually investing in customer and supplier relationships. |
The Company has continued to produce strong results despite facing a challenging external environment in the light of Brexit and the uncertainties it brings in relation to the purchase price of raw materials and components from overseas suppliers as a result of currency fluctuations. Despite this, the board continue to focus on their long term strategic goals, strengthened corporate governance and continual internal investment to ensure the Company performs well operationally and financially. |
KEY PERFORMANCE INDICATORS |
We consider our key performance indicators to be those which reflect the financial performance and strength of the company as a whole. The following KPIs are viewed as being most significant by the directors: |
2024 | 2023 |
Turnover | £22,811,972 | £23,052,593 |
Gross Profit | £6,625,253 | £5,978,671 |
Gross Profit % | 29.04% | 25.93% |
Operating Profit | £2,005,375 | £1,832,473 |
Pre Tax Profit | £2,006,640 | £1,747,588 |
In the year to 29 February 2024 retained earnings increased by £733,404 from £10,769,423 to £11,502,827, resulting in the shareholders' fund and net assets balance of £13,819,201 (2023, £13,105,951). |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Company is exposed to a number of risks and uncertainties on both operational and financial levels. The directors acknowledge that it is their responsibility to actively assess these risks and ensure appropriate mitigating controls are in place. The directors have undertaken a rigorous and systematic review of the principal risks and uncertainties which pose the greatest threat to the future performance of the company which are as follows: |
Regulatory Risk |
Working in the manufacturing industry, the Company must ensure to comply with regulations in respect of the technical, legal and corporate environment. Regulations in quality control must also be complied with in relation to all products and departments within the Company. The board continues to update and review memberships with appropriate regulatory bodies and ensure staff are adequately trained in their respective areas. |
Credit Risk |
This risk arises from delayed or non-payment from trade debtors. The Company mitigates this risk through the use of a debt factoring facility which transfers the risk of non-payment and ensures a constant cash inflow throughout the year. The Company also monitors credit risk via continual review of balances due from customers and also through use of credit limits. |
Liquidity Risk |
The Company is at risk of having insufficient liquid assets to meet its short-term debt obligations. Exposure to such risk is mitigated by ensuring that adequate bank facilities are in place to meet working capital requirements. Furthermore, the directors employ tight management over the cash position to ensure bank covenants do not fall below pre determined levels. |
Interest Rate Risk |
The Company is exposed to interest rate risk through movements in the Bank of England's base rate on interest bearing instruments. This risk is mitigated through a balance of fixed and variable interest rate financial instruments. |
Currency Risk |
The trading activities of the Company are such that various components are sourced from overseas suppliers and settled in a foreign currency, principally US Dollars. The Company operates a US Dollar account to mitigate exposure to exchange rate fluctuations, reduce administration and foreign exchange costs and to eliminate the need to transfer funds into the Sterling account. |
ZOT Engineering Limited (Registered number: SC057167) |
Strategic Report |
for the Year Ended 29 February 2024 |
FUTURE DEVELOPMENTS |
The Company will continue to invest in the latest technologies to ensure it remains at the cutting edge of its industry. Through regular capital investment, the Company is able to improve efficiencies, reduce maintenance costs and subsequently improve their gross margins over time. |
ON BEHALF OF THE BOARD: |
ZOT Engineering Limited (Registered number: SC057167) |
Report of the Directors |
for the Year Ended 29 February 2024 |
The directors present their report with the financial statements of the company for the year ended 29 February 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of light engineering, the manufacturing of printed circuit boards, sheet metal work and assembly. |
DIVIDENDS |
Interim dividends totalling £ |
The total distribution of dividends for the year ended 29 February 2024 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 March 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
ZOT Engineering Limited |
Opinion |
We have audited the financial statements of ZOT Engineering Limited (the 'company') for the year ended 29 February 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 29 February 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
ZOT Engineering Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also; |
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, | design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. The auditor includes an explanation in the auditor's report of the extent to which the audit was capable of detecting irregularities, including fraud. |
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are | appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. |
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and | related disclosures made by the directors. |
- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the | audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that the use of the going concern basis of accounting is appropriate and no material uncertainties have been identified, we report these conclusions in our auditor's report. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern. |
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
14 Rutland Square |
Edinburgh |
Midlothian |
EH1 2BD |
ZOT Engineering Limited (Registered number: SC057167) |
Income Statement |
for the Year Ended 29 February 2024 |
29.2.24 | 28.2.23 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
4,714,140 | 4,176,659 |
1,911,113 | 1,802,012 |
Other operating income |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
2,169,950 | 1,871,324 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
ZOT Engineering Limited (Registered number: SC057167) |
Other Comprehensive Income |
for the Year Ended 29 February 2024 |
29.2.24 | 28.2.23 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
ZOT Engineering Limited (Registered number: SC057167) |
Statement of Financial Position |
29 February 2024 |
29.2.24 | 28.2.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Revaluation reserve |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
ZOT Engineering Limited (Registered number: SC057167) |
Statement of Changes in Equity |
for the Year Ended 29 February 2024 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 March 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) |
Balance at 28 February 2023 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 29 February 2024 |
ZOT Engineering Limited (Registered number: SC057167) |
Statement of Cash Flows |
for the Year Ended 29 February 2024 |
29.2.24 | 28.2.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
3,109,977 |
Cash and cash equivalents at end of year | 2 | 4,463,557 | 2,775,067 |
ZOT Engineering Limited (Registered number: SC057167) |
Notes to the Statement of Cash Flows |
for the Year Ended 29 February 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
29.2.24 | 28.2.23 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance costs | 163,310 | 123,736 |
Finance income | (164,575 | ) | (38,851 | ) |
2,721,348 | 2,553,410 |
Decrease/(increase) in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 29 February 2024 |
29.2.24 | 1.3.23 |
£ | £ |
Cash and cash equivalents | 4,463,557 | 2,775,067 |
Year ended 28 February 2023 |
28.2.23 | 1.3.22 |
£ | £ |
Cash and cash equivalents | 2,775,067 | 3,109,977 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.3.23 | Cash flow | At 29.2.24 |
£ | £ | £ |
Net cash |
Cash at bank | 2,775,067 | 1,688,490 | 4,463,557 |
2,775,067 | 4,463,557 |
Debt |
Finance leases | (571,220 | ) | (197,387 | ) | (768,607 | ) |
Debts falling due within 1 year | (97,863 | ) | 19,447 | (78,416 | ) |
Debts falling due after 1 year | (1,329,489 | ) | 71,565 | (1,257,924 | ) |
(1,998,572 | ) | (106,375 | ) | (2,104,947 | ) |
Total | 776,495 | 1,582,115 | 2,358,610 |
ZOT Engineering Limited (Registered number: SC057167) |
Notes to the Financial Statements |
for the Year Ended 29 February 2024 |
1. | STATUTORY INFORMATION |
ZOT Engineering Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover is attributable to the company's principal activity of light engineering, the manufacture of printed circuit boards, sheet metal work and assembly. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Amortisation is calculated, using the straight line method, to amortise the depreciable amount of the assets to their residual values over their estimated useful lives as follows. |
Computer software | - 8 years on cost |
Amortisation and impairment losses are charged to the Income Statement within administrative expenses. |
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of the computer software, the amortisation is revised prospectively to reflect the new expectation. |
Tangible fixed assets |
Tangible fixed assets are initially measured at cost. Cost includes the original purchase price and costs directly attributable to bringing the asset to its present location and into its present condition. After initial recognition, tangible assets are measured at cost less any accumulated depreciation and any accumulated impairment losses. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under finance lease, over the lease term, whichever is shorter. Land is not depreciated. |
Buildings | - 2% on valuation |
Plant and machinery | - 12.5% on cost |
Fixtures and fittings | - 10% on cost |
Motor vehicles | - 25% on cost |
Depreciation and impairment losses are charged to the Income Statement within administrative expenses. |
The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. |
At each reporting 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 loss is recognised immediately in the Income Statement. |
ZOT Engineering Limited (Registered number: SC057167) |
Notes to the Financial Statements - continued |
for the Year Ended 29 February 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and payables, factoring, loans from banks and other third parties. |
At the end of each reporting period, financial assets that are measured at cost are assessed for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement. 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 the Income Statement. |
Financial assets are derecognised when (a) the contractual rights to the cash flows arising from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) control of the asset has been transferred to another party. |
Financial liabilities are measured at amortised cost less any accumulated impairment losses. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the statement of financial position as substantially all of the risks and rewards incidental to ownership have been transferred from the leasing company. |
Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is shorter. |
The interest element of these obligations is charged to the Income Statement over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals under operating leases are charged to the Income Statement on a straight line basis over the period of the lease. |
ZOT Engineering Limited (Registered number: SC057167) |
Notes to the Financial Statements - continued |
for the Year Ended 29 February 2024 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
29.2.24 | 28.2.23 |
£ | £ |
United Kingdom |
Europe |
Rest of the World | 316,924 | 345,162 |
4. | EMPLOYEES AND DIRECTORS |
29.2.24 | 28.2.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
29.2.24 | 28.2.23 |
Office and Admin | 16 | 16 |
Manufacturing | 199 | 190 |
5. | DIRECTORS' EMOLUMENTS |
29.2.24 | 28.2.23 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
29.2.24 | 28.2.23 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
ZOT Engineering Limited (Registered number: SC057167) |
Notes to the Financial Statements - continued |
for the Year Ended 29 February 2024 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
29.2.24 | 28.2.23 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) |
Computer software amortisation |
Audit fees |
Foreign exchange differences |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
29.2.24 | 28.2.23 |
£ | £ |
Loan interest |
Factoring |
Hire purchase interest |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
29.2.24 | 28.2.23 |
£ | £ |
Current tax: |
UK corporation tax |
Adjustment to tax charge in |
respect of prior periods | (30,329 | ) | - |
Total current tax |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
29.2.24 | 28.2.23 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Enhanced expenditure | - | (37,050 | ) |
Movement in deferred tax provision | 255,871 | 129,262 |
Adjustment for tax rate changes | (7,625 | ) | - |
Total tax charge | 592,990 | 256,201 |
** | TAX CHARGE FOR CURRENT YEAR ON CLIENT SCREEN OF | 592,990 |
DOES NOT AGREE TO AMOUNT PER TB OF | 538,818 |
ZOT Engineering Limited (Registered number: SC057167) |
Notes to the Financial Statements - continued |
for the Year Ended 29 February 2024 |
9. | DIVIDENDS |
29.2.24 | 28.2.23 |
£ | £ |
Interim |
10. | INTANGIBLE FIXED ASSETS |
Computer |
software |
£ |
COST |
At 1 March 2023 |
and 29 February 2024 |
AMORTISATION |
At 1 March 2023 |
Amortisation for year |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Land & | Plant and | and | Motor |
Buildings | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 March 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 29 February 2024 |
DEPRECIATION |
At 1 March 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
Cost or valuation at 29 February 2024 is represented by: |
Fixtures |
Land & | Plant and | and | Motor |
Buildings | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2021 | 1,007,656 | - | - | - | 1,007,656 |
Cost | 3,092,344 | 12,359,921 | 930,544 | 108,896 | 16,491,705 |
4,100,000 | 12,359,921 | 930,544 | 108,896 | 17,499,361 |
ZOT Engineering Limited (Registered number: SC057167) |
Notes to the Financial Statements - continued |
for the Year Ended 29 February 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
The directors have reviewed the value of the properties and have concluded that there are no material change from the last revaluation date. |
The net book value of land and buildings comprises: |
Freehold Land and Buildings £3,853,998 (2023 £3,935,998). |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 March 2023 |
Additions |
At 29 February 2024 |
DEPRECIATION |
At 1 March 2023 |
Charge for year |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
12. | STOCKS |
29.2.24 | 28.2.23 |
£ | £ |
Raw materials |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
29.2.24 | 28.2.23 |
£ | £ |
Trade debtors |
Amounts recoverable on contract |
Other debtors |
Loans | 72,686 | 74,511 |
Prepayments | 52,490 | 136,773 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
29.2.24 | 28.2.23 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Hire purchase contracts (see note 17) |
Trade creditors |
Corporation tax |
Social security and other taxes |
VAT | 371,263 | 461,241 |
Other creditors |
ZOT Engineering Limited (Registered number: SC057167) |
Notes to the Financial Statements - continued |
for the Year Ended 29 February 2024 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
29.2.24 | 28.2.23 |
£ | £ |
Bank loans (see note 16) |
Hire purchase contracts (see note 17) |
16. | LOANS |
An analysis of the maturity of loans is given below: |
29.2.24 | 28.2.23 |
£ | £ |
Amounts falling due within one year or on demand: |
Within one year and on demand |
Amounts falling due between one and two years: |
Between one and two years |
Amounts falling due between two and five years: |
Between two and five years |
Amounts falling due in more than five years: |
Repayable by instalments |
After more than five years | 877,984 | 890,072 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
29.2.24 | 28.2.23 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
29.2.24 | 28.2.23 |
£ | £ |
Within one year |
Between one and five years |
ZOT Engineering Limited (Registered number: SC057167) |
Notes to the Financial Statements - continued |
for the Year Ended 29 February 2024 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
29.2.24 | 28.2.23 |
£ | £ |
Bank loans |
Hire purchase contracts | 768,607 | 571,220 |
The Royal Bank of Scotland have standard securities in place over units A, B, C, D and E Inveresk Mills Industrial Park, Musselburgh and 7 Inveresk Industrial Estate, Musselburgh. The Royal Bank of Scotland also have a bond and floating charge in place over the whole assets of the company. |
The hire purchase contracts in place are secured over the assets concerned. |
19. | FINANCIAL INSTRUMENTS |
Financial assets that are debt instruments measured at amortised cost £4,198,540 (2023: £4,669,118) |
Financial liabilities measured at amortised cost £3,917,399 (2023: £4,382,543). |
20. | PROVISIONS FOR LIABILITIES |
29.2.24 | 28.2.23 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 1 March 2023 |
Charge to Income Statement during year |
Movement in the year |
Balance at 29 February 2024 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 29.2.24 | 28.2.23 |
value: | £ | £ |
Ordinary | £1 | 136,000 | 136,000 |
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital. |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
In the years to 29 February 2024 and 28 February 2023, there were no transactions with directors. |
23. | RELATED PARTY DISCLOSURES |
As at 29 February 2024, Cross Properties Limited, a company which J R Cross is a shareholder and director, was due £72,686 (2023 £74,511) to ZOT Engineering Limited. This loan bore interest of between 4% and 5.5% monthly, with repayment terms reviewed annually. |
24. | ULTIMATE CONTROLLING PARTY |
The directors are of the opinion that there is no single controlling party of the company during the year to 29 February 2024. |