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REGISTERED NUMBER: SC029318 (Scotland)











DANIEL ROSS (ENGINEERS) LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 29 FEBRUARY 2024






DANIEL ROSS (ENGINEERS) LIMITED (REGISTERED NUMBER: SC029318)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3 to 4

Report of the Independent Auditors 5 to 8

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12 to 21


DANIEL ROSS (ENGINEERS) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 29 FEBRUARY 2024







DIRECTORS: Eric Hay Macleod Gardiner
Jamie Hay Macleod Gardiner
James Steel



REGISTERED OFFICE: 171 St. Leonard Street
Lanark
Lanarkshire
ML11 7DZ



REGISTERED NUMBER: SC029318 (Scotland)



AUDITORS: Azets Audit Services
Chartered accountants
Statutory auditor
Abercorn House
79 Renfrew Road
Paisley
Renfrewshire
PA3 4DA



BANKERS: Clydesdale Bank PLC
Dunn Square
1 Causeyside Street
Paisley
Renfrewshire
PA1 1BH



SOLICITORS: Biggart Baillie & Gifford
Dalmore House
310 St Vincent Street
Glasgow
G2 5QR

DANIEL ROSS (ENGINEERS) LIMITED (REGISTERED NUMBER: SC029318)

STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024

The directors present their strategic report for the year ended 29 February 2024.

The principle activity of the company in the year under review was that of the distribution, sale and repair of motor vehicles and agricultural machinery.

REVIEW OF BUSINESS
In view of the current agricultural climate the development of the business during the year and its position at the end of the year are considered reasonable.

The key financial highlights are as follows:

2024 2023 2022

Turnover growth 17.54% 48.96% 9.90%
Profit before tax 256,680 1,094,682 189,792

The net assets of the company have increased from £3,825,915 at 28 February 2023 to £4,018,825 at 29 February 2024.

PRINCIPAL RISKS AND UNCERTAINTIES
Competitive pressure has increased in the marketplace and margins remain under pressure.

The directors seek to control overhead costs in order to maintain the profitability of the company.

FUTURE DEVELOPMENTS
The directors aim to follow management policies which will enhance the normal activities of the business.

FINANCIAL INSTRUMENTS
The company's principal financial instruments comprise bank balances, trade creditors and loans to group undertakings. The main purpose of these instruments is to finance the company's operations.

Loans to group undertakings are interest free and will only be repaid as cashflow allows.

Trade debtors are managed in respect of credit and cashflow risk by policies concerning the credit offered to customers and the monitoring of amounts outstanding.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amount due.

ENVIRONMENT
The company recognises the importance of its environmental responsibilities, and has policies in place to manage its impact on the environment.

ON BEHALF OF THE BOARD:





Eric Hay Macleod Gardiner - Director


26 November 2024

DANIEL ROSS (ENGINEERS) LIMITED (REGISTERED NUMBER: SC029318)

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 the distribution, sale and repair of motor vehicles and agricultural machinery.

DIVIDENDS
No dividends will be distributed for the year ended 29 February 2024.

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

Eric Hay Macleod Gardiner
Jamie Hay Macleod Gardiner
James Steel

All of the directors are also directors of Hamilton Ross Holdings Limited, the parent company, and their share interests are disclosed in that company's accounts.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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.

DANIEL ROSS (ENGINEERS) LIMITED (REGISTERED NUMBER: SC029318)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 29 FEBRUARY 2024


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

ON BEHALF OF THE BOARD:





Eric Hay Macleod Gardiner - Director


26 November 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DANIEL ROSS (ENGINEERS) LIMITED

Opinion
We have audited the financial statements of Daniel Ross (Engineers) Limited (the 'company') for the year ended 29 February 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DANIEL ROSS (ENGINEERS) LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DANIEL ROSS (ENGINEERS) LIMITED


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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, and determined that the most significant are those that relate to the form and content of the financial statements such as the accounting policies and the UK Companies Act 2006.

We assessed how the company is complying with these frameworks by observing the oversight of those charged with governance, the culture of honesty and ethical behaviours and a strong emphasis placed on fraud prevention, which may reduce opportunities for fraud to take place, and fraud deterrence, which could persuade individuals not to commit fraud because of the likelihood of detection and punishment.

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by making an assessment of the key fraud risks to the company, and the manner in which such risks may occur in practice, based on our previous knowledge of the company, as well as an assessment of the current business environment.

Based on this understanding, we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered higher, we performed audit procedures to address each identified fraud risk, including management override of controls. These procedures included testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud or error. We evaluated the design and operational effectiveness of controls put in place to address the risks identified, or that otherwise prevent, deter and detect fraud.

In addition, our audit procedures included enquiring of management concerning actual and potential litigation and claims, and performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. We addressed the fraud risk in relation to revenue recognition by testing completeness and cut off of income.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards.

As with any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance, and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DANIEL ROSS (ENGINEERS) LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Kirsty Mackie BAcc CA (Senior Statutory Auditor)
for and on behalf of Azets Audit Services
Chartered accountants
Statutory auditor
Abercorn House
79 Renfrew Road
Paisley
Renfrewshire
PA3 4DA

26 November 2024

DANIEL ROSS (ENGINEERS) LIMITED (REGISTERED NUMBER: SC029318)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024

2024 2023
Notes £    £   

TURNOVER 3 22,246,273 18,926,069

Cost of sales (19,662,636 ) (16,873,008 )
GROSS PROFIT 2,583,637 2,053,061

Administrative expenses (2,235,851 ) (1,105,473 )
347,786 947,588

Other operating income 104,755 231,682
OPERATING PROFIT 452,541 1,179,270


Interest payable and similar expenses 5 (195,861 ) (84,588 )
PROFIT BEFORE TAXATION 6 256,680 1,094,682

Tax on profit 7 (63,770 ) (60,755 )
PROFIT FOR THE FINANCIAL YEAR 192,910 1,033,927

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

192,910

1,033,927

DANIEL ROSS (ENGINEERS) LIMITED (REGISTERED NUMBER: SC029318)

BALANCE SHEET
29 FEBRUARY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 532,889 325,292

CURRENT ASSETS
Stocks 9 7,346,501 5,893,914
Debtors 10 3,283,292 3,676,969
Cash at bank 648,166 979,194
11,277,959 10,550,077
CREDITORS
Amounts falling due within one year 11 7,373,398 6,879,868
NET CURRENT ASSETS 3,904,561 3,670,209
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,437,450

3,995,501

CREDITORS
Amounts falling due after more than one
year

12

(310,878

)

(116,907

)

PROVISIONS FOR LIABILITIES 17 (107,747 ) (52,679 )
NET ASSETS 4,018,825 3,825,915

CAPITAL AND RESERVES
Called up share capital 18 65,366 65,366
Share premium 401,859 401,859
Capital redemption reserve 15,768 15,768
Retained earnings 3,535,832 3,342,922
SHAREHOLDERS' FUNDS 4,018,825 3,825,915

The financial statements were approved by the Board of Directors and authorised for issue on 26 November 2024 and were signed on its behalf by:





Eric Hay Macleod Gardiner - Director


DANIEL ROSS (ENGINEERS) LIMITED (REGISTERED NUMBER: SC029318)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024

Called up
share Retained Share
capital earnings premium
£    £    £   
Balance at 1 March 2022 65,366 1,379,329 401,859

Changes in equity
Total comprehensive income - 1,963,593 -
Balance at 28 February 2023 65,366 3,342,922 401,859

Changes in equity
Total comprehensive income - 192,910 -
Balance at 29 February 2024 65,366 3,535,832 401,859
Capital
Other redemption Total
reserve reserve equity
£    £    £   
Balance at 1 March 2022 929,666 15,768 2,791,988

Changes in equity
Total comprehensive income (929,666 ) - 1,033,927
Balance at 28 February 2023 - 15,768 3,825,915

Changes in equity
Total comprehensive income - - 192,910
Balance at 29 February 2024 - 15,768 4,018,825

DANIEL ROSS (ENGINEERS) LIMITED (REGISTERED NUMBER: SC029318)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

1. STATUTORY INFORMATION

Daniel Ross (Engineers) Limited is a private company, limited by shares, registered in Scotland. The Company’s registered number is SC029318 and registered office address is 171 St Leonard Street, Lanark, ML11 7DZ.

The nature of the Company's operations and its principal activities are the distribution, sale, and repair of motor vehicles and agricultural machinery.

2. ACCOUNTING POLICIES

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

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 £.

Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the Company 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.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Critical accounting judgments & key sources of estimation uncertainty
In preparing these financial statements, the directors have not made any critical accounting judgements or used any key sources of estimation uncertainty.

Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Consideration is given to the point at which the company is entitled to receive the income, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue from the provision of services is recognised in the period in which the services are provided when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;
- it is probable that the Company will receive the consideration due;
- the costs incurred can be measured reliably.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 20% on cost and 10% on cost
Fixtures and fittings - 10% on cost and 5% on cost
Motor vehicles - at varying rates on cost
Computer equipment - 20% on cost

DANIEL ROSS (ENGINEERS) LIMITED (REGISTERED NUMBER: SC029318)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024

2. ACCOUNTING POLICIES - continued

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments
The company 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 Company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transactions 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.

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 company 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 company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including creditors, 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.


DANIEL ROSS (ENGINEERS) LIMITED (REGISTERED NUMBER: SC029318)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024

2. ACCOUNTING POLICIES - continued
Taxation
Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only 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.

If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

With the exception of changes arising on the initial recognition of a business combination, the tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income).

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

Deferred tax assets and deferred tax liabilities are offset only if the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously.

Leases
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the profit and loss account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

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

The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

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

DANIEL ROSS (ENGINEERS) LIMITED (REGISTERED NUMBER: SC029318)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024

2. ACCOUNTING POLICIES - continued

Impairment of assets
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

Non-financial assets
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Financial assets
For financial assets carried at amortised cost, the amount of impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal.

An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

3. TURNOVER

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

An analysis of turnover by class of business is given below:

2024 2023
£    £   
Sale of Wholegoods 17,581,336 14,810,564
Parts Sales 3,213,256 2,658,530
Rendering of Services 1,451,681 1,218,303
Forecourt sales - 238,672
22,246,273 18,926,069

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 22,246,273 18,926,069
22,246,273 18,926,069

DANIEL ROSS (ENGINEERS) LIMITED (REGISTERED NUMBER: SC029318)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 924,602 824,622
Social security costs 62,416 61,376
Other pension costs 55,093 60,226
1,042,111 946,224

The average number of employees during the year was as follows:
2024 2023

Office and management 19 14
Engineers and forecourt attendants 27 23
46 37

2024 2023
£    £   
Directors' remuneration - 13,048
Directors' pension contributions to money purchase schemes - 1,092

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Stock line interest 172,612 83,281
Bank loan interest 4,474 1,023
Hire purchase 18,775 284
195,861 84,588

6. PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

2024 2023
£    £   
Other operating leases 86,400 50,400
Depreciation - owned assets 90,965 81,695
Depreciation - assets on hire purchase contracts 65,643 17,398
Profit on disposal of fixed assets (9,478 ) (856,158 )
Auditors' remuneration 14,001 11,500

DANIEL ROSS (ENGINEERS) LIMITED (REGISTERED NUMBER: SC029318)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 6,921 17,958
Underprovision in prior year 1,781 (1,781 )
Total current tax 8,702 16,177

Deferred tax 55,068 44,578
Tax on profit 63,770 60,755

UK corporation tax has been charged at 24.49% (2023 - 19%).

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:

2024 2023
£    £   
Profit before tax 256,680 1,094,682
Profit multiplied by the standard rate of corporation tax in the UK of
24.491% (2023 - 19%)

62,863

207,990

Effects of:
Expenses not deductible for tax purposes 21 (162,558 )
Adjustments to tax charge in respect of previous periods 1,781 (1,781 )
Deferred tax rate changes 1,156 12,643
Prior year adjustment - deferred tax (1,834 ) (1,944 )
Movement in unprovided deferred tax - (3,266 )
Indexation allowances and rebasing - 9,671
Marginal relief (217 ) -
Total tax charge 63,770 60,755

DANIEL ROSS (ENGINEERS) LIMITED (REGISTERED NUMBER: SC029318)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024

8. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 March 2023 385,643 132,247 502,580 296,035 1,316,505
Additions - - 366,889 - 366,889
Disposals (62,136 ) (2,496 ) (50,633 ) (3,000 ) (118,265 )
At 29 February 2024 323,507 129,751 818,836 293,035 1,565,129
DEPRECIATION
At 1 March 2023 351,488 122,729 243,200 273,796 991,213
Charge for year 16,286 1,279 123,252 15,791 156,608
Eliminated on disposal (62,136 ) (2,496 ) (50,949 ) - (115,581 )
At 29 February 2024 305,638 121,512 315,503 289,587 1,032,240
NET BOOK VALUE
At 29 February 2024 17,869 8,239 503,333 3,448 532,889
At 28 February 2023 34,155 9,518 259,380 22,239 325,292

The net book value of tangible fixed assets includes £ 326,206 (2023 - £ 177,096 ) in respect of assets held under hire purchase contracts.

9. STOCKS
2024 2023
£    £   
Parts stock 867,535 804,009
Unit stock 6,478,966 5,089,905
7,346,501 5,893,914

At the balance sheet date unit stock includes stock to the value of £5,003,789 (2023 - £4,242,962) which were held under hire purchase contracts and finance loans. All amounts become repayable on sale of the related stock items.

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,055,647 1,625,481
Amounts owed by group undertakings 1,994,868 1,652,585
Other debtors 214,107 390,512
Prepayments 18,670 8,391
3,283,292 3,676,969

DANIEL ROSS (ENGINEERS) LIMITED (REGISTERED NUMBER: SC029318)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Other loans (see note 13) 4,269,815 3,816,749
Hire purchase contracts (see note 14) 100,585 45,142
Trade creditors 1,002,083 1,166,583
Amounts owed to group undertakings 1,281,329 1,281,329
Corporation tax 8,702 16,177
Social security and other taxes 161,141 93,869
Accrued expenses 549,743 460,019
7,373,398 6,879,868

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Hire purchase contracts (see note 14) 310,878 116,907

13. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Other loans 4,269,815 3,816,749

14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2024 2023
£    £   
Net obligations repayable:
Within one year 100,585 45,142
Between one and five years 310,878 116,907
411,463 162,049

DANIEL ROSS (ENGINEERS) LIMITED (REGISTERED NUMBER: SC029318)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024

15. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Other loans 4,269,815 3,816,749
Hire purchase contracts 411,463 162,049
4,681,278 3,978,798

Hire purchase creditors are secured over the asset to which they relate.

Other loans are secured over the stock to which they relate.

The bank overdraft facility is secured by a supported guarantee held by Daniel Ross (Engineers) Limited, Hamilton Bros. (Engineering) Limited, Reekie Ltd and Hamilton Ross Group Limited, a floating charge over company assets and a legal first charge over property specified freehold property.

16. FINANCIAL INSTRUMENTS

The carrying amount for each category of financial instrument is as follows:

2024 2023
£ £
Financial assets
Financial assets that are debt instruments measured at amortised cost 3,264,622 3,668,578
Cash and cash equivalents 648,166 979,194
3,912,788 4,647,772
Financial liabilities
Financial liabilities measured at amortised cost 6,964,690 6,426,710


17. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred taxation 107,747 52,679

Deferred
tax
£   
Balance at 1 March 2023 52,679
Originating and reversal of
timing differences 56,372
Effect of changes in tax rates (1,304 )
Balance at 29 February 2024 107,747

DANIEL ROSS (ENGINEERS) LIMITED (REGISTERED NUMBER: SC029318)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024

17. PROVISIONS FOR LIABILITIES - continued

20242023
££

Accelerated capital allowances108,97453,237
Other timing differences(1,227)(558)
107,74752,679

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
65,366 Ordinary 1 65,366 65,366

19. ULTIMATE PARENT COMPANY

The ultimate parent undertaking is Daniel Ross (Channel Islands) Limited, a company registered in Jersey. The company's immediate parent undertaking is Hamilton Ross Group Limited, a company registered in Scotland.

20. CONTINGENT LIABILITIES

Cross bank guarantees exist between all group companies. The gross bank borrowing at 29 February 2024 amounted to £373,300 (2023 - £444,571).

21. ULTIMATE CONTROLLING PARTY

The share capital of the company's ultimate parent company, Daniel Ross (Channel Islands) Limited, is held in trust and no individual is considered by the directors to be the ultimate controlling party.