Company registration number SC334329 (Scotland)
MACTAGGART SCOTT (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
MACTAGGART SCOTT (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
M H P Prenter
P R Prenter
R G S Prenter
G A Davidson
(Appointed 1 May 2024)
A A W Waddell
(Appointed 1 May 2024)
M S Venman
(Appointed 1 May 2024)
Secretary
R G S Prenter
Company number
SC334329
Registered office
Hunter Avenue
Loanhead
Midlothian
EH20 9SP
Auditor
MHA
Chartered Accountants
6 St Colme Street
Edinburgh
EH3 6AD
MACTAGGART SCOTT (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12 - 13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 38
MACTAGGART SCOTT (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 30 April 2024.
Fair review of the business
The Group's main subsidiary, MacTaggart, Scott & Company Limited, business increased turnover this year, up by 12.4% compared to the previous year. New orders of £43m were received in the year meanwhile there has been an increase in the average monthly number of persons employed during the year. The Company returned a profit in the year due to the strong sales performance
We forecast that the order book will strengthen during next financial year with this work predominately UK based, and most importantly, continues being bid/contracted at current economic conditions.
MacTaggart, Scott & Company Limited continues to invest in both R&D and capital expenditure in its production facilities, infrastructure and information technology. This is supported by training programmes across all skill sets from the Company Apprenticeship and Graduate Sponsorship Programmes to work related programmes throughout our established and skilled workforce.
Another of the Group's subsidiaries, MacScott Bond Limited, saw an increase turnover as a result of improving operating conditions in the oil and gas sector that makes up a significant part of its customer base.
MacTaggart Scott Australia Pty Limited, a wholly-owned subsidiary of MacTaggart, Scott & Company Limited, has performed well and continues to grow its business within the Australian defence industry.
A full actuarial valuation of MacTaggart, Scott & Company Limited's closed defined benefit pension scheme was carried out at 30 December 2021 and updated to 30 April 2024 by a qualified actuary. A new recovery plan from 01 April 2023 has been agreed with the additional contributions to the closed defined benefit pension scheme reducing when compared with the previously agreed recovery plan.
Principal risks and uncertainties
Market risk
The group is focussed on the design and manufacture of hydraulic, electro-hydraulic and mechanical handling equipment for the Naval Defence Industry in the UK and overseas defence markets. The main commercial risk is that customers delay or change their plans which in turn leads to capacity and utilisation challenges in engineering and production. The impact of such delays or changes on capacity plans is managed monthly through a formal Sales & Operations Planning process. Competition in our market is limited but price is increasingly becoming an important differentiator in securing new business.
MACTAGGART SCOTT (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Price risk
The Group is reliant on certain raw materials in its manufacturing processes which are mainly expensive non-ferrous, copper and nickel based metals. The volatility of these markets can be high and can result in significant cost increases between the contract prices we bid, to the price we pay when these are purchased. To mitigate this risk, traditionally we look to agree long term pricing with our supply chain. However, in the current volatile market conditions our supply chain is unwilling to enter into long term pricing agreements. To minimise exposure, MacTaggart Scott is offering significantly reduced validity periods for all new bids to customers. Where possible we are negotiating fluctuation clauses within new contracts to cover any significant base price increases out with our control. The Company is also attempting to move from a traditional contracting model of a combined ‘Design & Build’ contract, to the less risky approach of an initial ‘Design’ contract followed later by a separate ‘Build’ contract once the design has been approved. While this is not always possible, we have had success in the UK with this approach.
Liquidity Risk
The Group's financial instruments comprise cash at bank, bank guarantees and short term liquid investments. The main purpose of these financial instruments is to provide adequate finance for the Group's operations.
Currency Risk
The Group aims to contract with overseas customers in GBP wherever possible. Whilst relatively small, the Group is, however, exposed to exchange rate risk which arises as a result of contracting with customers and suppliers in currencies other than sterling. It is the Group's policy to constantly monitor the level of currency exposure and to operate ‘natural hedging’ arrangements where possible. Where this is not possible, forward foreign currency hedging arrangements are utilised where the risk is deemed significant.
Business Continuity
The Group has a Business Continuity Plan which is reviewed twice a year to ensure that risks are constantly updated and mitigation plans are still appropriate while keeping this relevant within the business.
Development and performance
The Group sets itself challenging financial targets to monitor, control and deliver performance for sustained financial stability.
Turnover represents the proportion of contract activity that is considered to have been completed in the year, together with sales of spares and other ancillary activities. All turnover is shown exclusive of VAT. Total turnover shows an increase of 11.8% on the previous year with 57% relating to the UK. The Board regularly report and review geographical analysis of turnover but the details remain sensitive and thus confidential.
The profit before taxation represents profits generated, less losses, from the ordinary activities of the business. Contributions to the company defined contribution pension scheme are charged to the profit and loss account in the period to which they relate. Contributions payable to the MacTaggart, Scott & Company Limited's closed defined benefit pension scheme are charged against the pension scheme liability. The pension charge is calculated on the basis of actuarial advice.
For the financial year to 30 April 2024, the Group returned a profit and is forecasting another profit before tax in the next financial year.
Key performance indicators
The Board uses a range of financial and non-financial performance indicators to monitor the Group's performance benchmarking against objectives.
Health and Safety
The Board takes the health and safety of its employees very seriously and the Group has made considerable investment in this area. The Health and Safety Committee meet monthly to discuss all aspects of health and safety and drive continuous improvement.
MACTAGGART SCOTT (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
Promoting the success of the company
The Board of Directors actively promotes the success of the Company, and acts in a way we consider, in good faith, that acknowledges and benefits stakeholders as a whole.
Employees
The Board fully recognises its responsibility to care for all employees and to grow and develop key skills. Employee numbers are in line with current capacity plans and remain under review in order to meet future order book needs.
We value our people and recognise their importance to the success of the Company. We are committed to providing a fulfilling, safe and enjoyable place to work that will help deliver both personal and business goals.
Community & Environment
We understand our importance as an employer to the local community and our responsibility to the environment. We actively work to sponsor and support community projects and to minimise the impact our Business has on the environment.
Investors
We are grateful for the continuing support of our shareholders and are committed to protecting and managing their investment in a responsible and sustainable way.
Customers
Our strategy is to build long term and valued customer relationships where we work to understand customer requirements and then provide engineering excellence, product innovation and value for money.
Suppliers
Our supply chain is key to our success and therefore our strategy is to build long term ‘partnerships’ together with collaborative, ethical and sustainable working practices.
Government & Regulators
The Directors promote values we consider fundamental to our reputation, including honesty, integrity, respect for people and concern for the environment. MacTaggart Scott has a Code of Ethics which emphasises social and environmental responsibility. This code includes the Company’s compliance with the UK Bribery Act 2010 and the US Foreign Corrupt Practices Act 1977.
R G S Prenter
Director
27 November 2024
MACTAGGART SCOTT (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the company continued to be that of an investment holding company.
The principal activity of the Group’s major subsidiary, MacTaggart Scott & Company Limited, during the year continued to be the design, manufacture, installation and support of hydraulic, electro-hydraulic and mechanical handling equipment for the Naval Defence Industry in both home and export defence markets.
The principal activities of one of the group’s other subsidiaries, MacScott Bond Limited, during the year continued to be those of hydraulic and control systems engineering covering the design, manufacture, installation and hire of hydraulic equipment and systems for the commercial and offshore markets. This subsidiary also acts as distributors for a number of manufacturers.
The principal activity of the only other trading subsidiary, MacTaggart Scott Australia PTY Limited, during the year continued to be the provision of engineering solutions to the naval, defence and marine industries.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
W P Marsh
(Resigned 1 May 2024)
M H P Prenter
P R Prenter
R G S Prenter
B Thomson
(Deceased 29 December 2023)
G H W Waddell
(Deceased 23 November 2023)
G A Davidson
(Appointed 1 May 2024)
A A W Waddell
(Appointed 1 May 2024)
M S Venman
(Appointed 1 May 2024)
Bill Marsh retired on 30 April 2024 following 27 years of service of which 16 years were as Managing Director of MacTaggart, Scott & Company Limited. We would like to thank Bill for his dedication and massive contribution to transforming the business.
In accordance with the articles of association, P R Prenter and R G S Prenter retire by rotation at the annual general meeting and, being eligible, offer themselves for re-election. In addition G A Davidson, A A W Waddell and M S Venman were appointed in the year and retire at the annual general meeting and, being eligible, offer themselves for re-election.
It is with deep sorrow that we report that Mr Graham H W Waddell sadly died in November 2023 and Mr Balfour Thomson in December 2023. They provided great support and wise counsel to the board of directors and shareholders during their time as directors. They will be very fondly remembered and greatly missed. Dear friends to us all.
Disabled persons
The Group's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.
MACTAGGART SCOTT (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -
Employee involvement
The Group's policy is to consult and discuss with employees, through their representatives and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the Group's performance.
Auditor
Geoghegans resigned as auditors following their merger with MHA on 1 February 2024, MHA were subsequently appointed as auditors. In accordance with the company's articles, a resolution proposing that MHA be reappointed as auditor of the company will be put at a General Meeting.
Energy and carbon report
MacTaggart, Scott & Company Limited is the only company within the group which meets the reporting requirements of this disclosure. As such, the following reflects only this company.
Energy consumption data in Kwh is obtained directly from billing data or by converting carbon fuels to Kwh using published conversion factors. The conversion of Kwh to Co2 emissions is calculated by reference to the UK Government's published conversion factors for company reporting.
The company consumed 5,868,262 Kwh (2023: 5,567,171 Kwh) in the year to April 2024 with a resultant greenhouse gas emission of 1,146 tonnes of CO2 equivalent (2023: 1,089 tonnes). The company generated turnover of £47,132,060 (2023: £41,921,808) in this period and the resultant energy measure is 24.32 tonnes of CO2 equivalent per £m (2023: 24.32 tonnes). The company seeks to consistently improve energy efficiency and is regularly audited on our ISO14001 standards.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
MACTAGGART SCOTT (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 6 -
On behalf of the board
R G S Prenter
Director
27 November 2024
MACTAGGART SCOTT (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MACTAGGART SCOTT (HOLDINGS) LIMITED
- 7 -
Opinion
We have audited the financial statements of MacTaggart Scott (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 April 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
MACTAGGART SCOTT (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MACTAGGART SCOTT (HOLDINGS) LIMITED
- 8 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the group and parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group and 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 and parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:
Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims;
Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and regulations;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
Reviewing minutes of meetings of those charged with governance;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations
MACTAGGART SCOTT (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MACTAGGART SCOTT (HOLDINGS) LIMITED
- 9 -
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Iain Binnie
For and on behalf of
27 November 2024
MHA
Chartered Accountants
Statutory Auditor
6 St Colme Street
Edinburgh
EH3 6AD
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
MACTAGGART SCOTT (HOLDINGS) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
55,331,318
49,513,319
Cost of sales
(41,645,427)
(34,873,241)
Gross profit
13,685,891
14,640,078
Distribution costs
(76,237)
(149,730)
Administrative expenses
(10,976,777)
(10,034,530)
Other operating income
268,391
331,794
Operating profit
4
2,901,268
4,787,612
Interest receivable and similar income
8
240,904
55,565
Interest payable and similar expenses
9
(70,980)
(92,549)
Profit before taxation
3,071,192
4,750,628
Tax on profit
10
(812,670)
(602,740)
Profit for the financial year
2,258,522
4,147,888
Profit for the financial year is attributable to:
- Owners of the parent company
2,255,016
4,146,196
- Non-controlling interests
3,506
1,692
2,258,522
4,147,888
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MACTAGGART SCOTT (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
2024
2023
£
£
Profit for the year
2,258,522
4,147,888
Other comprehensive income
Actuarial (loss)/gain on defined benefit pension schemes
(1,024,000)
183,000
Currency translation loss taken to retained earnings
(206,033)
(278,840)
Cash flow hedges gain arising in the year
Tax relating to other comprehensive income
(443,500)
Other comprehensive income for the year
(1,230,033)
(539,340)
Total comprehensive income for the year
1,028,489
3,608,548
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,024,983
3,606,856
- Non-controlling interests
3,506
1,692
1,028,489
3,608,548
MACTAGGART SCOTT (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
8,087,315
7,779,161
Investment properties
12
1,020,738
761,394
Investments
13
394,163
405,163
9,502,216
8,945,718
Current assets
Stocks
15
23,604,939
14,835,186
Debtors
16
16,812,563
14,603,354
Cash at bank and in hand
6,624,067
14,430,646
47,041,569
43,869,186
Creditors: amounts falling due within one year
17
(34,802,951)
(32,193,564)
Net current assets
12,238,618
11,675,622
Total assets less current liabilities
21,740,834
20,621,340
Creditors: amounts falling due after more than one year
18
(201,873)
(421,639)
Deferred tax liability
20
(934,932)
(624,161)
Defined benefit pension liability
22
-
-
Net assets
20,604,029
19,575,540
Capital and reserves
Called up share capital
23
183,383
183,383
Capital redemption reserve
50,937
50,937
Other reserves
6,184,493
6,184,493
Profit and loss reserves
15,041,620
14,016,637
Equity attributable to owners of the parent company
21,460,433
20,435,450
Non-controlling interests
(856,404)
(859,910)
20,604,029
19,575,540
MACTAGGART SCOTT (HOLDINGS) LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2024
30 April 2024
- 13 -
The financial statements were approved by the board of directors and authorised for issue on 27 November 2024 and are signed on its behalf by:
27 November 2024
R G S Prenter
Director
MACTAGGART SCOTT (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
7,910
11,865
Investment property
12
1,020,738
761,394
Investments
13
622,617
622,617
1,651,265
1,395,876
Current assets
Debtors
16
1,237
340
Cash at bank and in hand
1,892,223
1,521,861
1,893,460
1,522,201
Creditors: amounts falling due within one year
17
(11,173)
(4,499)
Net current assets
1,882,287
1,517,702
Net assets
3,533,552
2,913,578
Capital and reserves
Called up share capital
23
183,383
183,383
Capital redemption reserve
50,937
50,937
Distributable profit and loss reserves
3,299,232
2,679,258
Total equity
3,533,552
2,913,578
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £619,974 (2023 - £182,135 profit).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 27 November 2024 and are signed on its behalf by:
27 November 2024
R G S Prenter
Director
Company registration number SC334329 (Scotland)
MACTAGGART SCOTT (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
Share capital
Capital redemption reserve
Other reserves
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
£
Balance at 1 May 2022
183,383
50,937
6,184,493
10,409,781
16,828,594
(861,602)
15,966,992
Year ended 30 April 2023:
Profit for the year
-
-
-
4,146,196
4,146,196
1,692
4,147,888
Other comprehensive income:
-
Actuarial gains on defined benefit plans
-
-
-
183,000
183,000
-
183,000
Currency translation differences
-
-
-
(278,840)
(278,840)
-
(278,840)
Tax relating to other comprehensive income
-
-
-
(443,500)
(443,500)
-
(443,500)
Total comprehensive income for the year
-
-
-
3,606,856
3,606,856
1,692
3,608,548
Balance at 30 April 2023
183,383
50,937
6,184,493
14,016,637
20,435,450
(859,910)
19,575,540
Year ended 30 April 2024:
Profit for the year
-
-
-
2,255,016
2,255,016
3,506
2,258,522
Other comprehensive income:
Actuarial gaines on defined benefit plans
-
-
-
(1,024,000)
(1,024,000)
-
(1,024,000)
Currency translation differences
-
-
-
(206,033)
(206,033)
-
(206,033)
Total comprehensive income for the year
-
-
-
1,024,983
1,024,983
3,506
1,028,489
Balance at 30 April 2024
183,383
50,937
6,184,493
15,041,620
21,460,433
(856,404)
20,604,029
MACTAGGART SCOTT (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 May 2022
183,383
50,937
2,497,123
2,731,443
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
-
182,135
182,135
Balance at 30 April 2023
183,383
50,937
2,679,258
2,913,578
Year ended 30 April 2024:
Profit and total comprehensive income for the year
-
-
619,974
619,974
Balance at 30 April 2024
183,383
50,937
3,299,232
3,533,552
MACTAGGART SCOTT (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
27
(5,241,991)
4,659,954
Pension scheme cash movement
(1,024,000)
(1,622,000)
Interest paid
(70,980)
(61,549)
Income taxes refunded/(paid)
339,587
(373,032)
Net cash (outflow)/inflow from operating activities
(5,997,384)
2,603,373
Investing activities
Purchase of tangible fixed assets
(1,686,635)
(1,765,982)
Proceeds from disposal of tangible fixed assets
133,085
49,025
Purchase of investment property
(259,344)
-
Purchase of investments
-
(161,782)
Proceeds from disposal of investments
11,000
-
Interest received
240,904
55,565
Net cash used in investing activities
(1,560,990)
(1,823,174)
Financing activities
Payment of finance leases obligations
(248,205)
(173,792)
Net cash used in financing activities
(248,205)
(173,792)
Net (decrease)/increase in cash and cash equivalents
(7,806,579)
606,407
Cash and cash equivalents at beginning of year
14,430,646
13,824,239
Cash and cash equivalents at end of year
6,624,067
14,430,646
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
1
Accounting policies
Company information
MacTaggart Scott (Holdings) Limited is a private company limited by shares incorporated in Scotland. The registered office is PO Box 1, Hunter Avenue, Loanhead, Midlothian, EH20 9SP.
The group consists of MacTaggart Scott (Holdings) Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated financial statements incorporate those of MacTaggart Scott (Holdings) Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).
All financial statements are made up to 30 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the Group and 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.
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
1.3
Turnover
Turnover represents the proportion of contract activity that is considered to have been completed or once agreed milestones have been achieved. Contracts undertaken relate to the design, manufacture, installation and support of electro-hydraulic and mechanical handling equipment and control systems for the Naval Defence Industry. Turnover also includes amounts receivable for the manufacture for sale and hire of hydraulic equipment and systems for the commercial and offshore markets, the sale of spares and other ancillary services and rental income receivable. All turnover is shown exclusive of VAT.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% or 25% straight line on buildings
Plant and machinery held for hire
10% straight line
Plant and machinery
10% - 16.6% straight line
Fixtures, fittings and equipment
20% or 25% straight line
Computer equipment
33.3% straight line
Motor vehicles
25% straight line
Motor vehicles
Over term of lease
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
The carrying value of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.
1.5
Investment properties
Investment properties, which are properties held to earn rentals and/or for capital appreciation, are initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently they are measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.
1.6
Fixed asset investments
Fixed asset investments are stated at cost less provision for diminution in value.
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the profit and loss account.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Stock and work in progress
Stock has been valued at the lower of cost and net realisable value in accordance with FRS 102. Work in progress on short term contracts is stated at cost, less provision for any foreseeable losses and progress payments received or receivable. Cost comprises direct labour, direct expenses and attributable overheads. In respect of long term contracts, profit is not taken unless agreed sub-divisions of these contracts are acknowledged as having been completed. Losses are provided for as soon as they arise.
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.
1.9
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Debtors
Debtors with no stated interest rate or receivable within one year are measured at transaction price. Any losses arising from impairments are recognised in the profit and loss account.
Creditors
Creditors with no stated interest rate and payable within one year are recorded at transaction price.
All interest bearing loans and borrowings which are basic financial instruments are initially recognised at the present value of cash payable.
1.10
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 21 -
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Contributions payable by a subsidiary to the MacTaggart, Scott & Co Limited defined contribution pension scheme are charged to the profit and loss account in the period to which they relate.
Contributions payable by a subsidiary to the MacTaggart, Scott & Co Limited defined benefit scheme are charged against the pension scheme liability in the financial statements. The pension charge is calculated on the basis of actuarial advice.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 22 -
Rentals payable under operating leases, including any lease incentives received, are charged to the profit and loss account on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to trading are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.17
Research and development expenditure is written off as incurred, except that development expenditure incurred on an individual project is capitalised as an intangible asset when the group can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the assets and the ability to measure reliably the expenditure during development.
Following initial recognition of the development expenditure as an asset, the cost model is applied requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised evenly over the period of expected future benefit. During the period of development the asset is tested for impairment annually.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 23 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Useful life of tangible assets
The Group sets depreciation rates which reasonably reflect the probably economic life of an asset. The directors regularly review the policies for appropriateness. The directors also review of impairment when trigger events occur or annual as appropriate.
Revenue recognition
The Group's revenue recognition policies are central to how the Group values the work it has carried out in each financial period. The policies require forecasts to be made of the outcome of each long-term construction project which requires estimates to be made of both cost and income recognition on each contract. Cost forecasts include estimates of the final out-turn of each contract in addition to potential costs for maintenance and remedial work. Income forecasts include estimates for variations due to scope of work or potential customer claims, with judgements made as to the performance obligations within long term contracts. Estimates are reviewed regularly over the contract's life based on the latest available information and adjustments made where necessary.
Defined benefit pension scheme
The cost of defined benefit pension plans are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long term nature of these plans, such estimates are subject to significant uncertainty and year to year volatility. The directors rely on the experience and knowledge of the actuary when preparing the pension scheme figures. In determining the appropriate discount rate, the board considered the interest rates of corporate bonds in the respective currency with at least AA rating with extrapolated maturities corresponding to the expected duration of the defined benefit obligation. The mortality rate is based on publicly available mortality tables for the specific country and demographic. Future salary increases and pension increases are based on expected inflation rates.
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
3
Turnover
Turnover analysed by geographical market
2024
2023
£
£
United Kingdom
31,549,036
21,332,977
Other countries
23,782,282
28,180,342
55,331,318
49,513,319
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(35,928)
(157,552)
Government grants
-
-
Depreciation of owned tangible fixed assets
1,087,214
900,663
Depreciation of tangible fixed assets held under finance leases
222,079
165,497
Profit on disposal of tangible fixed assets
(89,471)
(20,708)
Operating lease charges
200,909
291,105
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
6,600
6,300
Audit of the financial statements of the company's subsidiaries
55,970
53,815
62,570
60,115
For other services
All other non-audit services
25,632
19,730
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
2024
2023
Number
Number
Office and management
190
177
Manufacturing and installation
209
219
399
396
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
6
Employees
(Continued)
- 25 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
17,874,980
15,804,133
Social security costs
1,822,503
1,674,807
Pension costs
1,090,104
1,037,626
20,787,587
18,516,566
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
541,169
477,404
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
260,319
240,270
The number of directors of MacTaggart Scott (Holdings) Limited for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023: 2).
The number of directors of MacTaggart Scott (Holdings) Limited for whom retirement benefits have accrued under defined benefit schemes amounted to 2 (2023: 2).
The directors are also considered to be key management.
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
216,904
55,565
Interest on the net defined benefit pension scheme
24,000
-
Total income
240,904
55,565
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 26 -
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
70,980
61,549
Interest on the net defined benefit liability
31,000
Total finance costs
70,980
92,549
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
53,348
(79,218)
Adjustments in respect of prior periods
105,332
68,580
Total UK current tax
158,680
(10,638)
Foreign current tax on profits for the current period
343,219
319,391
Total current tax
501,899
308,753
Deferred tax
Origination and reversal of timing differences
310,771
293,987
Total tax charge
812,670
602,740
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
10
Taxation
(Continued)
- 27 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
3,071,192
4,750,628
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
767,798
925,897
Tax effect of expenses that are not deductible in determining taxable profit
275
10,696
Adjustments in respect of prior years
105,332
68,580
Adjustments in respect of financial assets
30,000
Research and development tax credit
(104,806)
(175,032)
Other permanent differences
69,098
Effect of overseas tax rates
54,081
113,807
Depreciation charged on assets inelegible for capital allowances
26,870
(74,889)
Surrender of tax losses for R&D credit refund
50,671
Adjustment for change of deferred tax rate
(337,919)
Movement in deferred tax not recognised
(62,536)
(48,169)
Chargeable gains
(4,344)
-
Taxation charge
812,670
602,740
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
-
443,500
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 28 -
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and machinery including items held for hire
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 May 2023
4,066,117
32,223
17,539,537
649,096
396,588
22,683,561
Additions
276,559
1,264,571
1,433
144,072
1,686,635
Disposals
(187,702)
(631)
(153,252)
(341,585)
Exchange adjustments
(39,505)
(39,505)
At 30 April 2024
4,342,676
32,223
18,576,901
649,898
387,408
23,989,106
Depreciation and impairment
At 1 May 2023
1,245,817
9,931
12,784,118
607,471
257,063
14,904,400
Depreciation charged in the year
70,489
3,580
1,144,042
26,666
64,516
1,309,293
Eliminated in respect of disposals
(181,796)
(184)
(115,991)
(297,971)
Exchange adjustments
(13,931)
(13,931)
At 30 April 2024
1,316,306
13,511
13,732,433
633,953
205,588
15,901,791
Carrying amount
At 30 April 2024
3,026,370
18,712
4,844,468
15,945
181,820
8,087,315
At 30 April 2023
2,820,300
22,292
4,755,419
41,625
139,525
7,779,161
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
11
Tangible fixed assets
(Continued)
- 29 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and machinery
549,407
764,936
Depreciation charge for the year in respect of leased assets
165,497
159,948
Company
Motor vehicles
£
Cost
At 1 May 2023 and 30 April 2024
15,820
Depreciation and impairment
At 1 May 2023
3,955
Depreciation charged in the year
3,955
At 30 April 2024
7,910
Carrying amount
At 30 April 2024
7,910
At 30 April 2023
11,865
12
Investment properties
Group
Company
2024
2024
£
£
Fair value
At 1 May 2023
761,394
761,394
Additions
259,344
259,344
At 30 April 2024
1,020,738
1,020,738
Investment properties comprise residential properties available for letting. The fair value of the investment properties has been arrived at on the basis of a valuation carried out by the directors at the balance sheet date. The valuation was made on an open market value basis by reference to the market evidence of the transaction prices for similar properties.
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 30 -
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
229,320
229,320
Unlisted investments
394,163
405,163
393,297
393,297
394,163
405,163
622,617
622,617
Movements in fixed asset investments
Group
Unlisted investments
£
Cost or valuation
At 1 May 2023
405,163
Disposals
(11,000)
At 30 April 2024
394,163
Carrying amount
At 30 April 2024
394,163
At 30 April 2023
405,163
Movements in fixed asset investments
Company
Shares in group undertakings
Unlisted investments
Total
£
£
£
Cost or valuation
At 1 May 2023 and 30 April 2024
229,320
393,297
622,617
Carrying amount
At 30 April 2024
229,320
393,297
622,617
At 30 April 2023
229,320
393,297
622,617
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 31 -
14
Subsidiaries
Details of the company's subsidiaries at 30 April 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
MacTaggart, Scott & Company Limited
1
Design, manufacture and installation of hydraulic equipment
Ordinary
100.00
-
MacScott Bond Limited
1
Hydraulic and control system engineering
Ordinary
99.00
-
MacTaggart Scott Australia Pty Limited
2
Engineering
Ordinary
-
100.00
MacTaggart Scott USA LLC
3
Engineering
Ordinary
-
100.00
1. PO Box 1, Hunter Avenue, Loanhead, Midlothian, EH20 9SP, UK
2. Level 6, 211 Victoria Square, Adelaide, SA 5000, Australia
3. 2133 Upton Drive, Suite 126-192, Virginia Beach, VA 23454, USA
MacTaggart Scott Australia Pty Limited and MacTaggart Scott USA LLC are wholly owned subsidiaries of MacTaggart, Scott & Company Limited.
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
10,670,005
10,181,119
-
-
Work in progress
29,541,215
18,588,689
-
-
Work in progress provisions
(15,543,688)
(12,345,366)
Finished goods and goods for resale
1,335,199
1,141,645
Payments received on account
(2,397,792)
(2,730,899)
23,604,939
14,835,188
-
-
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
14,253,797
12,305,356
Corporation tax recoverable
162,151
986,967
Other debtors
211,554
218,864
150
150
Prepayments and accrued income
2,185,061
1,092,167
1,087
190
16,812,563
14,603,354
1,237
340
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 32 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
19
174,023
248,200
Payments received on account
25,061,370
22,724,477
Trade creditors
6,511,105
6,041,891
Corporation tax payable
336,979
320,309
Other taxation and social security
1,092,569
930,395
-
-
Other creditors
383,746
562,386
1,483
299
Accruals and deferred income
1,243,159
1,365,906
9,690
4,200
34,802,951
32,193,564
11,173
4,499
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
19
113,495
287,523
Government grants
21
58,826
117,461
Other creditors
29,552
16,655
201,873
421,639
-
-
19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
174,028
248,200
In two to five years
113,490
287,523
287,518
535,723
-
-
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 33 -
20
Deferred taxation
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
934,932
624,161
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 May 2023
624,161
-
Charge to profit or loss
310,771
-
Liability at 30 April 2024
934,932
-
21
Government grants
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from government grants
58,826
117,461
-
-
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit and loss account in respect of defined contribution schemes
1,090,104
1,012,626
The Group operates defined contribution pension schemes for all qualifying employees. The assets of the schemes are held separately from those of the group in an independently administered fund.
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
22
Retirement benefit schemes
(Continued)
- 34 -
Defined benefit schemes
MacTaggart, Scott & company Limited operates a defined benefit plan in the UK. The scheme became closed on 30 June 2000. This is a separate trustee administered fund holding the pension plan assets to meet long term plan liabilities. A full actuarial valuation was carried out at 30 December 2021 and updated to 30 April 2024 by a qualified actuary, independent of the plan's sponsoring employer. The major assumptions used by the actuary are shown below.
The most recent actuarial valuation on 30 December 2021 showed a deficit of £10,702,000. MacTaggart, Scott & Company Limited has agreed with the trustees that it will aim to eliminate the deficit over a period of 2 years and 8 months from 1 April 2023 by the payment of annual contributions of £1,000,000. In addition, levies to the Pension Protection Fund, insurance premiums for death in service benefits and management and administration expenses are payable, or will be reimbursed where the plan has made the payment initially.
The main assumptions used in this valuation were:
a) Discount rates - Nominal Gilt Yield Curve plus 2.10% at each term pre retirement and Nominal Gilt Yield Curve post retirement
b) Rate of revaluation - CPI Inflation at each term subject to a maximum of 5.00% pa
c) Pension increases - Derived at each term using Black Scholes Methodology with a volatility assumption of 1.75%
Currently MacTaggart, Scott & Company Limited is making contributions based on the latest valuation which are considered sufficient to meet the current statutory funding objective while the scheme continues to operate as a closed fund.
2024
2023
Key assumptions
%
%
Discount rate
5.3
5.0
Inflation (RPI)
3.4
3.2
Inflation (CPI)
2.8
2.5
Mortality assumptions
2024
2023
Assumed life expectations on retirement at age 65:
Years
Years
Retiring today
- Males
20.9
20.9
- Females
22.8
22.7
Retiring in 20 years
- Males
22.3
22.2
- Females
24.3
24.2
2024
2023
Amounts recognised in the profit and loss account
£
£
Net interest on net defined benefit liability/(asset)
(24,000)
31,000
Total costs/(income)
(24,000)
31,000
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
22
Retirement benefit schemes
(Continued)
- 35 -
2024
2023
Amounts taken to other comprehensive income
£
£
Actual return on scheme assets
727,000
2,068,000
Less: calculated interest element
1,025,000
741,000
Return on scheme assets excluding interest income
1,752,000
2,809,000
Actuarial changes related to obligations
(431,000)
(3,722,000)
Other gains and losses
(297,000)
730,000
Total income
1,024,000
(183,000)
The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:
2024
2023
Group
£
£
Present value of defined benefit obligations
18,976,000
19,966,000
Fair value of plan assets
(19,446,000)
(20,696,000)
Deficit in scheme
(470,000)
(730,000)
Effect on asset ceiling
470,000
730,000
Total liability recognised
-
-
Group
2024
Movements in the present value of defined benefit obligations
£
Liabilities at 1 May 2023
19,966,000
Benefits paid
(1,523,000)
Actuarial gains and losses
(431,000)
Interest cost
964,000
At 30 April 2024
18,976,000
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
22
Retirement benefit schemes
(Continued)
- 36 -
Group
2024
Movements in the fair value of plan assets
£
Fair value of assets at 1 May 2023
20,696,000
Interest income
1,025,000
Return on plan assets (excluding amounts included in net interest)
(1,752,000)
Benefits paid
(1,523,000)
Contributions by the employer
1,000,000
19,446,000
Effect of asset ceiling
(470,000)
At 30 April 2024
18,976,000
The actual return on plan assets was £727,000 (2023: £2,068,000).
Fair value of plan assets at the reporting period end
Group
2024
2023
£
£
Debt instruments
9,769,000
10,158,000
Cash
183,000
250,000
Insured pensioners
9,494,000
10,288,000
19,446,000
20,696,000
None of the fair values of the assets shown above include any direct investments in the group's own financial instruments or any property occupied by, or other assets used by, the company.
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
178,383
178,383
178,383
178,383
A Ordinary shares of £1 each
5,000
5,000
5,000
5,000
183,383
183,383
183,383
183,383
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 37 -
24
Financial commitments, guarantees and contingent liabilities
In the case of certain contracts in the group's main subsidiary undertaking, MacTaggart, Scott & Company Limited, it is a condition of the contract that the company's bankers give counter guarantees in respect of progress claims which are paid during the course of the contract. The value of guarantees payable at the period end amounted to £712,076 (2023: £1,064,717).
25
Operating lease commitments
Lessee
At the reporting end date the group had the outstanding commitments for future minimum lease payments under non-cancellable leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
212,124
319,924
-
-
Between two and five years
826,966
873,299
-
-
In over five years
963,444
1,616,752
-
-
2,002,534
2,809,975
-
-
26
Capital commitments
Amounts contracted for but not provided in the financial statements:
Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
451,525
603,037
-
259,344
MACTAGGART SCOTT (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 38 -
27
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit for the year after tax
2,258,522
4,147,888
Adjustments for:
Taxation charged
812,670
602,740
Finance costs
70,980
92,549
Investment income
(240,904)
(55,565)
Gain on disposal of tangible fixed assets
(89,471)
(20,708)
Depreciation and impairment of tangible fixed assets
1,309,293
1,066,160
(Loss)/gain on revaluation of foreign subsidiary assets
(180,459)
(216,443)
Movements in working capital:
Increase in stocks
(8,769,753)
(8,276,650)
(Increase)/decrease in debtors
(3,034,025)
1,601,395
Increase in creditors
2,679,791
5,742,273
Decrease in deferred income
(58,635)
(23,685)
Cash (absorbed by)/generated from operations
(5,241,991)
4,659,954
28
Analysis of changes in net debt - group
2024
£
Opening net funds/(debt)
Cash and cash equivalents
14,430,646
Obligations under finance leases
(535,723)
13,894,923
Changes in net funds/(debt) arising from:
Cash flows of the entity
(7,558,374)
Closing net funds/(debt) as analysed below
6,336,549
Closing net funds/(debt)
Cash and cash equivalents
6,624,067
Obligations under finance leases
(287,518)
6,336,549
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