Company registration number SC225153 (Scotland)
D R NEWITT & ASSOCIATES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
PAGES FOR FILING WITH REGISTRAR
D R NEWITT & ASSOCIATES LIMITED
Contents
Page
Accountants' report
1
Statement of financial position
2 - 3
Notes to the financial statements
4 - 10
D R NEWITT & ASSOCIATES LIMITED
Report To The Director On The Preparation Of The Unaudited Statutory Accounts Of D R Newitt & Associates Limited
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of D R Newitt & Associates Limited for the year ended 30 April 2024 which comprise, the statement of financial position and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the ICAS we are subject to its ethical and other professional requirements which are detailed at https://icas.com/icas-framework-preparation-of-accounts
This report is made solely to the Board of Directors of D R Newitt & Associates Limited, as a body, in accordance with the terms of our engagement letter dated 25 May 2021. Our work has been undertaken solely to prepare for your approval the financial statements of D R Newitt & Associates Limited and state those matters that we have agreed to state to the Board of Directors of D R Newitt & Associates Limited, as a body, in this report in accordance with the requirements of the ICAS as detailed at https://icas.com/icas-framework-preparation-of-accounts. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than D R Newitt & Associates Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that D R Newitt & Associates Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of D R Newitt & Associates Limited. You consider that D R Newitt & Associates Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of D R Newitt & Associates Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Condie & Co Limited
9 January 2025
Chartered Accountants
10 Abbey Park Place
Dunfermline
Fife
KY12 7NZ
D R NEWITT & ASSOCIATES LIMITED
Statement Of Financial Position
As At 30 April 2024
- 2 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
341,501
76,838
Current assets
Debtors
5
1,006,502
930,698
Cash at bank and in hand
127,194
252,271
1,133,696
1,182,969
Creditors: amounts falling due within one year
6
(591,562)
(418,486)
Net current assets
542,134
764,483
Total assets less current liabilities
883,635
841,321
Creditors: amounts falling due after more than one year
7
(287,194)
(74,797)
Provisions for liabilities
8
(22,375)
(7,478)
Net assets
574,066
759,046
Capital and reserves
Called up share capital
9
108
108
Share premium account
147
147
Profit and loss reserves
573,811
758,791
Total equity
574,066
759,046
The director of the company has elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 30 April 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
D R NEWITT & ASSOCIATES LIMITED
Statement Of Financial Position (Continued)
As At 30 April 2024
- 3 -
The financial statements were approved and signed by the director and authorised for issue on 9 January 2025
Mrs S C Newitt
Director
Company Registration No. SC225153
D R NEWITT & ASSOCIATES LIMITED
Notes To The Financial Statements
For The Year Ended 30 April 2024
- 4 -
1
Accounting policies
Company information
D R Newitt & Associates Limited is a private company limited by shares incorporated in Scotland. The registered office is 3rd Floor, 2 Lochrin Square, 96 Fountainbridge, Edinburgh, EH3 9QA.
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 as applicable to companies subject to the small companies' regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, 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:
Tenants Improvements
10% straight line
Fixtures & Fittings
15% reducing balance p.a, Finance Lease items - 33% p.a
Computer Equipment
25% straight line p.a, Finance Lease items - 33% p.a
Motor Vehicles
25% reducing balance p.a.
Computer Software
Depreciated over lease term, and 33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
D R NEWITT & ASSOCIATES LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 April 2024
1
Accounting policies
(Continued)
- 5 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
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 statement of financial position 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 transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
D R NEWITT & ASSOCIATES LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 April 2024
1
Accounting policies
(Continued)
- 6 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.7
Equity instruments
Equity instruments issued by the company 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 company.
1.8
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 income statement 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 company’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 income statement, 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 when the company has 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.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
D R NEWITT & ASSOCIATES LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 April 2024
1
Accounting policies
(Continued)
- 7 -
1.11
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 statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
24
20
D R NEWITT & ASSOCIATES LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 April 2024
- 8 -
4
Tangible fixed assets
Tenants Improvements
Fixtures & Fittings
Computer Equipment
Motor Vehicles
Computer Software
Total
£
£
£
£
£
£
Cost
At 1 May 2023
2,750
128,879
127,573
46,449
45,597
351,248
Additions
191,985
199,023
391,008
Disposals
(2,750)
(128,878)
(127,074)
(46,449)
(305,151)
At 30 April 2024
191,986
499
199,023
45,597
437,105
Depreciation and impairment
At 1 May 2023
2,590
71,379
127,173
27,671
45,597
274,410
Depreciation charged in the year
6
19,824
78
34,675
54,583
Eliminated in respect of disposals
(2,596)
(74,227)
(126,940)
(29,626)
(233,389)
At 30 April 2024
16,976
311
32,720
45,597
95,604
Carrying amount
At 30 April 2024
175,010
188
166,303
341,501
At 30 April 2023
160
57,500
400
18,778
76,838
Tangible fixed assets with a net book value of £341,501 (2023: £76,838) have been pledged as security in favour of The Royal Bank of Scotland Plc.
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
481,284
380,861
Other debtors
522,989
540,458
Prepayments and accrued income
2,229
9,379
1,006,502
930,698
D R NEWITT & ASSOCIATES LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 April 2024
- 9 -
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
30,000
30,000
Obligations under finance leases
63,122
7,408
Trade creditors
19,590
63,535
Corporation tax
13,551
66,508
Other taxation and social security
183,234
114,494
Other creditors
273,424
128,266
Accruals and deferred income
8,641
8,275
591,562
418,486
The Royal Bank of Scotland Plc hold a bond and floating charge dated 17 October 2007 over all assets of the company as security.
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
19,950
49,950
Obligations under finance leases
267,244
24,847
287,194
74,797
The Royal Bank of Scotland Plc hold a bond and floating charge dated 17 October 2007 over all assets of the company as security.
8
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
22,375
7,478
9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 10p each
982
982
98
98
Ordinary B Shares of 10p each
10
10
1
1
Ordinary C Shares of 10p each
25
25
3
3
Ordinary D Shares of 10p each
25
25
3
3
Ordinary E Shares of 10p each
25
25
3
3
1,067
1,067
108
108
D R NEWITT & ASSOCIATES LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 April 2024
9
Called up share capital
(Continued)
- 10 -
The issued Ordinary shares, issued "B" Ordinary shares, issued "C" Ordinary shares, issued "D" Ordinary shares and issued "E" Ordinary shares rank pari passu with each other except that the director of the company may resolve to declare a dividend on one or more classes of share.
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
2,896,620
35,750
11
Directors' transactions
Description
% Rate
Opening balance
Interest charged
Amounts repaid
Closing balance
£
£
£
£
Mrs S C Newitt
2.25
38,907
740
(12,012)
27,635
38,907
740
(12,012)
27,635
The balance due from the director, which is included in other debtors, is repayable on demand.
12
Related party transactions
The company has taken advantage of Section 1AC35 of FRS 102 whereby only material transactions which are not under the normal market conditions need to be disclosed.
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