REGISTERED NUMBER: SC281166 (Scotland) |
HAMILTON ROSS GROUP LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
REGISTERED NUMBER: SC281166 (Scotland) |
HAMILTON ROSS GROUP LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 3 |
Report of the Directors | 4 | to | 5 |
Report of the Independent Auditors | 6 | to | 9 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Statement of Cash Flows | 16 | to | 17 |
Notes to the Consolidated Financial Statements | 18 | to | 33 |
HAMILTON ROSS GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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 |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
The directors present their strategic report of the company and the group for the year ended 29 February 2024. |
The principal activity of the group 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 of the group 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 | 10.4% | 4.6% | 9.7% |
Profit before tax | 590,612 | 1,634,287 | 1,314,507 |
The net assets of the group have increased from £11,953,615 at 28 February 2023 to £12,410,280 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 group. |
It is anticipated that the cost of living crisis and volatile fuel prices will have an effect demand as well as profitability. |
SECTION 172(1) STATEMENT |
The directors are aware of their duty under s.172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be the most likely to promote the success of the Company for the benefit of its members as a whole and, in doing so, to have regard amongst other matters to: |
The interest of the Company's employees; |
The need to foster the Company's relationships with suppliers, customers and others; |
The impact of the Company's operations on the community and the environment; and |
The desirability of the Company maintaining a reputation for high standards of business conduct. |
Employees |
The Company's employees are key to delivering the overall strategy of the Company. Ensuring that the business has the right values and culture is of paramount importance to the continued success of the business. |
The business engages on a regular basis with all of its employees via regular meetings and appraisals. |
Customers |
The Company is committed to delivering a professional customer experience and engages with customers regularly. |
Suppliers |
Successful operation is dependant on the continued maintenance of strong relationships with suppliers through regular engagement. |
Community and environment |
The directors are committed to ensuring the Company is environmentally responsible, a good neighbour and an good workplace. |
FUTURE DEVELOPMENTS |
The directors aim to follow management policies which will enhance the normal activities of the business. |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
FINANCIAL INSTRUMENTS |
The group's principal financial instruments comprise bank balances, trade creditors, other loans and loans to group undertakings. The main purpose of these instruments is to finance the group'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 amounts due. |
Other loans are short term and are repaid when the stock items they are financing are sold. |
ENVIRONMENT |
The group recognises the importance of its environmental responsibilities, and has policies in place to manage its impact on the environment. |
ON BEHALF OF THE BOARD: |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 29 February 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group 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. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
Delivery of excellent service and top quality goods to our customers is key to the success of the business in order to retain, grow and acquire new business. We hold regular communications with suppliers, customers and others in the industry to enable an open and honest communication to talk about innovations in the industry and give an opportunity to share ideas. The Group maintains excellent relationships with all of our suppliers and communicate with them on a very regular basis. |
STREAMLINED ENERGY AND CARBON REPORTING |
In accordance with the Companies (Directors Report) 2018 regulations, the group is required to report energy usage under the Streamlined Energy and Carbon Reporting (SECR) regulations and the details for the year ended 29 February 2024 are given below. The methodology used is based on the Environmental Reporting Guidelines 2019 issued by DEFRA, using the UK Government's Greenhouse gas reporting conversion factors 2024 and 2023 respectively. |
Energy usage and carbon emissions | Group | Group |
2024 | 2024 | 2023 | 2023 |
tCO2e | kWH | tCO2e | kWH |
Direct emissions |
Gas | 104 | 1,018,928 | 100 | 1,002,365 |
Use of fuel for transport | 543 | 2,136,982 | 480 | 1,889,888 |
Total direct emissions | 647 | 3,155,910 | 580 | 2,892,253 |
Indirect emissions |
Purchase of electricity | 139 | 298,588 | 133 | 286,612 |
Total indirect emissions | 139 | 298,588 | 133 | 286,612 |
Total emissions | 786 | 3,454,498 | 713 | 3,178,865 |
INTENSITY RATIO |
Carbon emissions per £ million of revenue | 14.29 | 14.85 |
During 2024 the group has taken action to reduce the use of fossil fuels by: |
- Changing lighting to low energy LED fittings and bulbs whenever new or replacement lamps are required. |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
- Ensuring vehicle replacements are to more efficient models including alternate fuel vehicles. Several hybrid electric vehicles have been purchased and the group is evaluating other models which will meet the operational requirements of the business, particularly for our service vans which are diesel powered but for which there have been few practical alternatives so far. |
- Solar panels have been installed at our head office, along with a Biomass boiler at another location for a prolonged period, and following a review of the success of this over time we will consider which of our other locations will be suitable for solar or other energy sources. |
- The group has engaged Business Energy Scotland to conduct an energy efficiency assessment at several locations, with the results leading to new actions being implemented in 2025 and beyond. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
AUDITORS |
The auditors, Azets Audit Services, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HAMILTON ROSS GROUP LIMITED |
Opinion |
We have audited the financial statements of Hamilton Ross Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 February 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated 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 group's and of the parent company affairs as at 29 February 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 |
HAMILTON ROSS GROUP LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HAMILTON ROSS GROUP 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 |
HAMILTON ROSS GROUP 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. |
for and on behalf of |
Chartered accountants |
Statutory auditor |
Abercorn House |
79 Renfrew Road |
Paisley |
Renfrewshire |
PA3 4DA |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 | 54,994,269 | 48,183,914 |
Cost of sales | (46,909,357 | ) | (41,188,833 | ) |
GROSS PROFIT | 8,084,912 | 6,995,081 |
Distribution costs | (4,923 | ) | (3,063 | ) |
Administrative expenses | (7,012,640 | ) | (5,540,198 | ) |
1,067,349 | 1,451,820 |
Other operating income | 319,627 | 433,815 |
OPERATING PROFIT | 1,386,976 | 1,885,635 |
Interest receivable and similar income | 92 | - |
1,387,068 | 1,885,635 |
Interest payable and similar expenses | 5 | (796,456 | ) | (251,348 | ) |
PROFIT BEFORE TAXATION | 6 | 590,612 | 1,634,287 |
Tax on profit | 7 | (133,947 | ) | (308,334 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Gain on revaluation of freehold property | - | 889,292 |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
- |
889,292 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
456,665 |
2,215,245 |
Profit attributable to: |
Owners of the parent | 456,665 | 1,325,953 |
Total comprehensive income attributable to: |
Owners of the parent | 456,665 | 2,215,245 |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
29 FEBRUARY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | - | - |
Tangible assets | 10 | 4,740,155 | 4,459,548 |
Investments | 11 | - | - |
4,740,155 | 4,459,548 |
CURRENT ASSETS |
Stocks | 12 | 25,738,891 | 20,734,251 |
Debtors | 13 | 4,484,605 | 5,658,019 |
Cash at bank and in hand | 746,905 | 985,942 |
30,970,401 | 27,378,212 |
CREDITORS |
Amounts falling due within one year | 14 | 21,514,801 | 18,518,661 |
NET CURRENT ASSETS | 9,455,600 | 8,859,551 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
14,195,755 |
13,319,099 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(1,212,859 |
) |
(879,272 |
) |
PROVISIONS FOR LIABILITIES | 20 | (572,616 | ) | (486,212 | ) |
NET ASSETS | 12,410,280 | 11,953,615 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 63,732 | 63,732 |
Share premium | 22 | 401,859 | 401,859 |
Fair value reserve | 22 | 1,342,203 | 1,342,203 |
Capital redemption reserve | 22 | 130,402 | 130,402 |
Retained earnings | 22 | 10,472,084 | 10,015,419 |
SHAREHOLDERS' FUNDS | 12,410,280 | 11,953,615 |
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 |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
COMPANY STATEMENT OF FINANCIAL POSITION |
29 FEBRUARY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
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 |
Fair value reserve | 22 |
Capital redemption reserve | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit/(loss) for the financial year | 66,350 | (165,817 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
CONSOLIDATED 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 | 7,774,800 | 401,859 |
Changes in equity |
Share buyback | (1,634 | ) | (15,000 | ) | - |
Total comprehensive income | - | 2,255,619 | - |
Balance at 28 February 2023 | 63,732 | 10,015,419 | 401,859 |
Changes in equity |
Total comprehensive income | - | 456,665 | - |
Balance at 29 February 2024 | 63,732 | 10,472,084 | 401,859 |
Fair | Capital |
value | redemption | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 March 2022 | 1,382,577 | 128,768 | 9,753,370 |
Changes in equity |
Share buyback | - | 1,634 | (15,000 | ) |
Total comprehensive income | (40,374 | ) | - | 2,215,245 |
Balance at 28 February 2023 | 1,342,203 | 130,402 | 11,953,615 |
Changes in equity |
Total comprehensive income | - | - | 456,665 |
Balance at 29 February 2024 | 1,342,203 | 130,402 | 12,410,280 |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
Called up | Fair | Capital |
share | Retained | value | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 March 2022 |
Changes in equity |
Share buyback | (1,634 | ) | (15,000 | ) | - | 1,634 | (15,000 | ) |
Total comprehensive income | - | ( |
) |
Balance at 28 February 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 29 February 2024 |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (995,027 | ) | (2,079,773 | ) |
Interest paid | (719,457 | ) | (249,009 | ) |
Interest element of hire purchase payments paid |
(76,999 |
) |
(2,339 |
) |
Tax paid | (43,614 | ) | (217,364 | ) |
Net cash from operating activities | (1,835,097 | ) | (2,548,485 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (897,110 | ) | (1,316,182 | ) |
Purchase of financed stock | 1,964,739 | 2,141,092 |
Sale of tangible fixed assets | 179,460 | 1,249,204 |
Interest received | 92 | - |
Net cash from investing activities | 1,247,181 | 2,074,114 |
Cash flows from financing activities |
New loans in year | - | 340,000 |
Capital repayments in year | 603,292 | 347,778 |
Amount introduced by directors | 29,930 | 18,340 |
Amount withdrawn by directors | - | (25,000 | ) |
Share buyback | - | (15,000 | ) |
Net cash from financing activities | 633,222 | 666,118 |
Increase in cash and cash equivalents | 45,306 | 191,747 |
Cash and cash equivalents at beginning of year |
2 |
(104,417 |
) |
(296,164 |
) |
Cash and cash equivalents at end of year | 2 | (59,111 | ) | (104,417 | ) |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 590,612 | 1,634,287 |
Depreciation charges | 474,852 | 394,517 |
Profit on disposal of fixed assets | (67,858 | ) | (888,964 | ) |
Finance costs | 796,456 | 251,348 |
Finance income | (92 | ) | - |
1,793,970 | 1,391,188 |
Increase in stocks | (5,004,640 | ) | (3,480,975 | ) |
Decrease/(increase) in trade and other debtors | 1,135,244 | (622,338 | ) |
Increase in trade and other creditors | 1,080,399 | 632,352 |
Cash generated from operations | (995,027 | ) | (2,079,773 | ) |
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 | 746,905 | 985,942 |
Bank overdrafts | (806,016 | ) | (1,090,359 | ) |
(59,111 | ) | (104,417 | ) |
Year ended 28 February 2023 |
28/2/23 | 1/3/22 |
£ | £ |
Cash and cash equivalents | 985,942 | 3,168 |
Bank overdrafts | (1,090,359 | ) | (299,332 | ) |
(104,417 | ) | (296,164 | ) |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/3/23 | Cash flow | At 29/2/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 985,942 | (239,037 | ) | 746,905 |
Bank overdrafts | (1,090,359 | ) | 284,343 | (806,016 | ) |
(104,417 | ) | 45,306 | (59,111 | ) |
Debt |
Finance leases | (779,855 | ) | (590,131 | ) | (1,369,986 | ) |
Debts falling due within 1 year | (11,167,816 | ) | (1,966,357 | ) | (13,134,173 | ) |
Debts falling due after 1 year | (312,889 | ) | 26,746 | (286,143 | ) |
(12,260,560 | ) | (2,529,742 | ) | (14,790,302 | ) |
Total | (12,364,977 | ) | (2,484,436 | ) | (14,849,413 | ) |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
1. | STATUTORY INFORMATION |
Hamilton Ross Holdings Limited is a private company, limited by shares, registered in Scotland. The Company’s registered number is SC281166 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 |
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. |
Basis of consolidation |
The group accounts consolidate the accounts of Hamilton Ross Group Limited and its subsidiaries, Hamilton Bros. (Engineering) Limited, Reekie Ltd and Daniel Ross (Engineers) Limited. |
No profit and loss account is presented for Hamilton Ross Group Limited as permitted by Section 408 of the Companies Act 2006. |
Critical accounting judgements and 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. |
Goodwill |
Goodwill is the difference between the fair value of the consideration given on the acquisition of a business and the aggregate fair value of the separable net assets required. It is being amortised through the profit and loss account in equal annual instalments over it's estimated economic life of 5 years. |
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. |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Individual freehold and leasehold properties are revalued to fair value every year with the surplus or deficit on book value being transferred to the revaluation reserve. |
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. |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
NOTES TO THE CONSOLIDATED 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, which are leases where substantially all the risks and rewards of ownership of the assets have, passed to the company, and hire purchase contracts are capitalised in the balance sheet and are depreciated over their useful lives. The capital element of future obligations under the leases and hire purchase contracts are included as liabilities in the balance sheet. The interest element of the rental obligations is charged to the profit and loss account over the periods of the lease and hire purchase contracts, and represent a constant proportion of the balance of capital repayments outstanding. |
Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
The company operates a Group Personal Pension Scheme to which employers contributions are set. The overall contribution paid by the employer is therefore known and is a fixed percentage of the total salary roll for each given year. |
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. |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
NOTES TO THE CONSOLIDATED 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 group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Rendering of services | 54,994,269 | 48,183,914 |
54,994,269 | 48,183,914 |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 54,994,269 | 48,183,914 |
54,994,269 | 48,183,914 |
Segmental analysis has not been provided as the directors consider that such disclosure would be prejudicial to the business. |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 3,565,646 | 3,234,665 |
Social security costs | 427,160 | 420,773 |
Other pension costs | 202,991 | 175,610 |
4,195,797 | 3,831,048 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Office and management | 79 | 75 |
Mechanics, counter staff and forecourt | 69 | 76 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 311,334 | 319,531 |
Directors' pension contributions to money purchase schemes | 63,458 | 39,077 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 1 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 150,000 | 160,000 |
Pension contributions to money purchase schemes | 47,608 | 35,608 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Stock line interest | 686,799 | 245,892 |
Bank loan interest | 32,658 | 3,117 |
Hire purchase | 76,999 | 2,339 |
796,456 | 251,348 |
6. | PROFIT BEFORE TAXATION |
The profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 177,756 | 207,595 |
Depreciation - assets on hire purchase contracts | 327,144 | 186,921 |
Profit on disposal of fixed assets | (67,858 | ) | (888,964 | ) |
Auditors' remuneration | 32,010 | 30,450 |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
NOTES TO THE CONSOLIDATED 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 | 45,790 | 45,367 |
Adjustments in respect of previous periods | 1,753 | (16,939 | ) |
Total current tax | 47,543 | 28,428 |
Deferred tax | 86,404 | 279,906 |
Tax on profit | 133,947 | 308,334 |
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 lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 590,612 | 1,634,287 |
Profit multiplied by the standard rate of corporation tax in the UK of 24.491 % (2023 - 19 %) |
144,647 |
310,515 |
Effects of: |
Expenses not deductible for tax purposes | (11,279 | ) | (8,834 | ) |
Adjustments to tax charge in respect of previous periods | 1,753 | (16,939 | ) |
Movement in unprovided deferred tax | - | (1,917 | ) |
Deferred tax rate changes | 1,813 | 78,183 |
Adjustment in respect of prior years deferred tax | (2,770 | ) | (62,345 | ) |
Indexation allowances and rebasing | - | 9,671 |
Marginal relief | (217 | ) | - |
Total tax charge | 133,947 | 308,334 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 29 February 2024. |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Gain on revaluation of freehold property | 889,292 | - | 889,292 |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 March 2023 |
and 29 February 2024 | 62,114 |
AMORTISATION |
At 1 March 2023 |
and 29 February 2024 | 62,114 |
NET BOOK VALUE |
At 29 February 2024 | - |
At 28 February 2023 | - |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST OR VALUATION |
At 1 March 2023 | 3,495,794 | 1,171,717 | 427,869 |
Additions | - | - | - |
Disposals | - | (62,136 | ) | (2,496 | ) |
At 29 February 2024 | 3,495,794 | 1,109,581 | 425,373 |
DEPRECIATION |
At 1 March 2023 | 425,739 | 1,020,873 | 385,046 |
Charge for year | 43,652 | 51,973 | 8,284 |
Eliminated on disposal | - | (62,136 | ) | (2,496 | ) |
Transfer to ownership | - | - | 1 |
At 29 February 2024 | 469,391 | 1,010,710 | 390,835 |
NET BOOK VALUE |
At 29 February 2024 | 3,026,403 | 98,871 | 34,538 |
At 28 February 2023 | 3,070,055 | 150,844 | 42,823 |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 March 2023 | 2,528,664 | 253,323 | 7,877,367 |
Additions | 897,110 | - | 897,110 |
Disposals | (274,045 | ) | (3,000 | ) | (341,677 | ) |
At 29 February 2024 | 3,151,729 | 250,323 | 8,432,800 |
DEPRECIATION |
At 1 March 2023 | 1,353,635 | 232,526 | 3,417,819 |
Charge for year | 385,200 | 15,791 | 504,900 |
Eliminated on disposal | (165,443 | ) | - | (230,075 | ) |
Transfer to ownership | - | - | 1 |
At 29 February 2024 | 1,573,392 | 248,317 | 3,692,645 |
NET BOOK VALUE |
At 29 February 2024 | 1,578,337 | 2,006 | 4,740,155 |
At 28 February 2023 | 1,175,029 | 20,797 | 4,459,548 |
Cost or valuation at 29 February 2024 is represented by: |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
Valuation in 2023 | 573,256 | - | - |
Cost | 2,922,538 | 1,109,581 | 425,373 |
3,495,794 | 1,109,581 | 425,373 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Valuation in 2023 | - | - | 573,256 |
Cost | 3,151,729 | 250,323 | 7,859,544 |
3,151,729 | 250,323 | 8,432,800 |
The net book value of tangible fixed assets includes £ 1,210,015 (2023 - £ 922,487 ) in respect of assets held under hire purchase contracts. |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Freehold |
property |
£ |
COST OR VALUATION |
At 1 March 2023 |
and 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
Cost or valuation at 29 February 2024 is represented by: |
Freehold |
property |
£ |
Valuation in 2023 | 573,256 |
Cost | 1,670,157 |
2,243,413 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 March 2023 |
and 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
11. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 171 St Leonard Street, Lanark, ML11 7DZ |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: 171 St Leonard Street, Lanark, ML11 7DZ |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: 171 St Leonard Street, Lanark, ML11 7DZ |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
12. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Stocks | 2,610,676 | 2,724,841 |
Finished goods | 23,128,215 | 18,009,410 |
25,738,891 | 20,734,251 |
At the balance sheet date unit stock includes stock to the value of £12,207,251 (2023 - £11,568,902) which were held under hire purchase contracts and finance loans. All amounts become repayable on sale of the related stock items. |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 4,015,829 | 4,869,343 |
Amounts owed by group undertakings | 2,794 | 11,034 |
Other debtors | 439,552 | 649,279 |
Directors' current accounts | 5,000 | 34,930 | - | - |
VAT | - | - |
Prepayments | 21,430 | 93,433 |
4,484,605 | 5,658,019 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 832,762 | 1,115,487 |
Other loans (see note 16) | 13,107,427 | 11,142,688 |
Hire purchase contracts (see note 17) | 443,270 | 213,472 |
Trade creditors | 4,286,238 | 3,558,839 |
Amounts owed to group undertakings | - | - |
Corporation tax | 47,543 | 43,614 |
Social security and other taxes | 254,863 | 177,830 |
VAT | 173,986 | 38,165 | 7,320 | - |
Other creditors | 100 | 100 |
Accrued expenses | 2,368,612 | 2,228,466 |
21,514,801 | 18,518,661 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 16) | 286,143 | 312,889 |
Hire purchase contracts (see note 17) | 926,716 | 566,383 |
1,212,859 | 879,272 |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 806,016 | 1,090,359 |
Bank loans | 26,746 | 25,128 |
Other loans | 13,107,427 | 11,142,688 |
13,940,189 | 12,258,175 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 28,591 | 26,746 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 257,552 | 286,143 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Gross obligations repayable: |
Within one year | 509,470 | 241,788 |
Between one and five years | 989,372 | 641,643 |
1,498,842 | 883,431 |
Finance charges repayable: |
Within one year | 66,200 | 28,316 |
Between one and five years | 62,656 | 75,260 |
128,856 | 103,576 |
Net obligations repayable: |
Within one year | 443,270 | 213,472 |
Between one and five years | 926,716 | 566,383 |
1,369,986 | 779,855 |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank overdrafts | 806,016 | 1,090,359 |
Bank loans | 312,889 | 338,017 |
Hire purchase contracts | 1,369,986 | 779,855 | - | - |
Other loans | 13,107,427 | 11,142,688 | - | - |
15,596,318 | 13,350,919 |
The bank overdraft facility and bank loan are secured by a supported guarantee held by Daniel Ross (Engineers) Limited, Hamilton Bros. (Engineering) Limited, Reekie Limited and Hamilton Ross Group Limited, a floating charge over the group assets and a legal first charge over properties held at 171 St Leonard Street, Lanark and Cupar Trading Estate, Cupar, Fife KY15 4SX. |
Hire purchase creditors are secured over the asset to which they relate. |
Other loans are secured over the stock to which they relate. |
19. | 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 | 4,463,175 | 5,564,586 |
Cash and cash equivalents | 746,905 | 985,942 |
5,210,080 | 6,550,528 |
Financial liabilities |
Financial liabilities measured at amortised cost | 19,882,556 | 16,909,758 |
20. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax | 572,616 | 486,212 | 160,449 | 160,449 |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
20. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 March 2023 | 486,212 |
Originating and reversal of |
timing differences | 93,240 |
Effect of changes in tax rates | (6,836 | ) |
Balance at 29 February 2024 | 572,616 |
Company |
Deferred |
tax |
£ |
Balance at 1 March 2023 |
Origination and reversal of |
timing differences |
Balance at 29 February 2024 |
Group |
Deferred taxation provided for at 25% (2023 - 25%) in the financial statements is set out below: |
2024 | 2023 |
£ | £ |
Accelerated capital allowances | 413,394 | 327,905 |
Other timing differences | 159,222 | 158,307 |
572,616 | 486,212 |
Company |
Deferred taxation provided for at 25% (2023 - 25%) in the financial statements is set out below: |
2024 | 2023 |
£ | £ |
Other timing differences | 160,449 | 160,449 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | 1 | 63,732 | 63,732 |
During the prior year 1,634 ordinary shares with a nominal value of £1 each were bought back and subsequently cancelled by the company. |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
22. | RESERVES |
Group |
Fair | Capital |
Retained | Share | value | redemption |
earnings | premium | reserve | reserve | Totals |
£ | £ | £ | £ | £ |
At 1 March 2023 | 10,015,419 | 401,859 | 1,342,203 | 130,402 | 11,889,883 |
Profit for the year | 456,665 | 456,665 |
At 29 February 2024 | 10,472,084 | 401,859 | 1,342,203 | 130,402 | 12,346,548 |
Company |
Fair | Capital |
Retained | value | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 March 2023 | 1,147,637 |
Profit for the year |
At 29 February 2024 | 1,213,987 |
Called up share capital |
Represents the nominal value of shares that have been issued. |
Share premium |
Includes any premiums received on issue of share capital. |
Capital redemption reserve |
Includes amounts arising from the redemption of shares from capital. |
Fair value reserves |
Where tangible fixed assets are revalued or reclassified as investment property, the cumulative increase in the fair value of the property at the date of reclassification in excess of any previous impairment losses in included in the other reserve. |
Profit and loss account |
Includes all current and prior year retained profits and losses less dividends. |
23. | PENSION COMMITMENTS |
The company operates a Group Personal Pension Scheme to which employer contributions are set at 5% for qualifying employees. The overall contribution paid by the employer is therefore known and is a fixed percentage of the total salary roll at each given year. |
The charge to the profit and loss account for the year ended 29 February 2024 in respect of the scheme was £202,991 (2023 - £175,611). There was £nil contributions payable to the fund at the year end (2023 - £nil). |
24. | ULTIMATE PARENT COMPANY |
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. |
HAMILTON ROSS GROUP LIMITED (REGISTERED NUMBER: SC281166) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
25. | CONTINGENT LIABILITIES |
Bank Guarantees |
Cross bank guarantees exist between all group companies. The gross bank borrowing at 29 February 2024 amounted to £373,300 (2023 - £444,571). |
Contract Hire Agreements |
Under the terms of the contract hire agreements the group, has an obligation to purchase equipment at the cessation of the agreement, at a pre agreed price, if the customer wishes to sell back. |
In the opinion of the directors the guaranteed buy back values will not be greater than the market values and therefore there should be no net liability to the group arising from this obligation. |
26. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The directors benefited from an interest free loan from the company, amounting to £5,000 at 29 February 2024 (2023 - £34,930), the balance will be repaid in full within 9 months of the year end. |
27. | RELATED PARTY DISCLOSURES |
During the year, a total of key management personnel compensation of £ 394,431 (2023 - £ 394,431 ) was paid. |