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REGISTERED NUMBER: SC068083 (Scotland)











































Redpath Tyres Limited

Strategic Report,

Report of the Directors and

Audited Financial Statements

for the Year Ended 30th April 2024






Redpath Tyres Limited (Registered number: SC068083)






Contents of the Financial Statements
for the year ended 30th April 2024




Page

Company information 1

Strategic report 2

Report of the directors 3 to 4

Report of the independent auditors 5 to 8

Statement of comprehensive income 9

Balance sheet 10

Statement of changes in equity 11

Cash flow statement 12

Notes to the cash flow statement 13 to 14

Notes to the financial statements 15 to 25


Redpath Tyres Limited

Company Information
for the year ended 30th April 2024







Directors: Mrs A Redpath
G Redpath
J N Redpath



Secretary: Mrs A Redpath



Registered office: Academy House
Shedden Park Road
Kelso
Roxburghshire
TD5 7AL



Business address: Industrial Estate
Station Road
Duns
Berwickshire
TD11 3HS



Registered number: SC068083 (Scotland)



Auditors: Rennie Welch Audit Limited
Academy House
Shedden Park Road
Kelso
Roxburghshire
TD5 7AL



Solicitors: Melrose & Porteous
47 Market Square
Duns
TD11 3BX

Redpath Tyres Limited (Registered number: SC068083)

Strategic Report
for the year ended 30th April 2024

The directors, in preparing this strategic report, have complied with s414C of the Companies Act 2006.

Review of business
As a leading vehicle and logistics solution provider for agriculture, industry and commercial vehicle fleets, Redpath Tyres Limited continued to perform during the period reported on in these financial statements. Despite ongoing economic pressures and influences, the company has continued to trade successfully and maintain it's turnover level through 2024 with revenues varying by less than 0.4% in the prior period.

Further to this, the company's management accounts for the periods following these accounts to date present a continued and steady growth of the business, both in turnover and net profitability. The growth is secured and maintained through the continued investment in the 11-depot network and the commercial vehicle fleet as required as well as the ongoing benefit from the use of the all-in-one Business Management System that was specifically designed for the tyre trade back in 2018.

The gross profit margin has increased from 33.9% in 2023 to 35.7% in 2024.

Despite challenges in the marketplace where a number of the company's competitors have experienced a downturn in business and pressure on margins, the company has secured further national sales contracts in both the public and private sector. As a reducing number of truly independent wholesalers, the company continues to develop its relationship with a broad network of suppliers, which underpins its commitment to ensuring resilience, improved trading and readiness to deal with any disruption to its supply chain for the benefit of its customers.

Disclosure of material changes to the company post year end have been duly provided within the notes to these Financial Statements, however, the directors have no plans to make any changes to the company's operational activities in the coming year.

Principal risks and uncertainties
The directors have considered the major financial risks that face the company both in the current year and the future. The company is subject to the normal commercial and economical pressures of a trading entity and the financial risks that apply thereto, as well as giving due consideration to the principal risks presented for the industry in which it operates.

The directors view risk management as a vital part of the business and as such regularly review the accounting records, management accounts and statements. Good accounting systems are in place to monitor ongoing financial performance and trends for the directors to assess risks and implement changes where applicable.

The main areas of financial risk are the recoverability of debtors and the security of stock. Debtors are vigorously pursued and new customers vetted prior to the supply of goods to help limit financial loss from unrecoverable balances and all stocks are securely stored to mitigate potential risks of misappropriation.

In addition, the company adopts a strategy to minimise non-financial risks through the application of good health and safety policies and adequate insurance cover among other measures and policies within the business.

The directors continue to monitor both financial and non-financial elements of the business to consider and take appropriate action in respect of matters which could impact the entity in the coming periods.

On behalf of the board:





J N Redpath - Director


30th January 2025

Redpath Tyres Limited (Registered number: SC068083)

Report of the Directors
for the year ended 30th April 2024

The directors present their report with the financial statements of the company for the year ended 30th April 2024.

Principal activity
The principal activity of the company in the year under review was that of the fitting, repairing and retailing of tyres, batteries and exhausts.

Dividends
As usual, the directors propose to declare an annual final ordinary dividend of £144,578 (2023: £144,578). The directors do not recommend any further dividend payments.

Events since the end of the year
Information relating to events since the end of the year is given in the notes to the financial statements.

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

Mrs A Redpath
G Redpath
J N Redpath

Statement of directors' responsibilities
The directors are responsible for preparing the Strategic report, the Report of the directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

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

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

Statement as to disclosure of information to auditors
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Redpath Tyres Limited (Registered number: SC068083)

Report of the Directors
for the year ended 30th April 2024


Auditors
The auditors, Rennie Welch Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:





J N Redpath - Director


30th January 2025

Report of the Independent Auditors to the Members of
Redpath Tyres Limited

Opinion
We have audited the financial statements of Redpath Tyres Limited (the 'company') for the year ended 30th April 2024 which comprise the Statement of comprehensive income, Balance sheet, Statement of changes in equity, Cash flow statement and Notes to the cash flow statement, Notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30th April 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic report and the Report of the directors, but does not include the financial statements and our Report of the auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic report and the Report of the directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic report and the Report of the directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Redpath Tyres Limited


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

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

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

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

Report of the Independent Auditors to the Members of
Redpath Tyres 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

Audit response to risks identified
- the nature of the industry and sector, control environment and business performance.
- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:
-- identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance.
-- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud.
-- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and have not identified any significant areas with potential for fraud to occur. We hold this view on the basis on that the company is classified under the Companies Act 2006 as a medium company for reporting purposes, under which anomalies would be detected.

Further to this no non-routine financial accounting has taken place from which we would expect an increase of fraud or error to occur.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty.

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
Redpath Tyres 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.




Gillian Adamson BSC(Hons) CA CTA (Senior Statutory Auditor)
for and on behalf of Rennie Welch Audit Limited
Academy House
Shedden Park Road
Kelso
Roxburghshire
TD5 7AL

30th January 2025

Redpath Tyres Limited (Registered number: SC068083)

Statement of Comprehensive
Income
for the year ended 30th April 2024

2024 2023
Notes £    £   

Turnover 4 14,176,424 14,232,966

Cost of sales (9,113,128 ) (9,410,363 )
Gross profit 5,063,296 4,822,603

Administrative expenses (4,719,617 ) (4,178,723 )
343,679 643,880

Other operating income 5 32,000 5,641
Operating profit 8 375,679 649,521

Interest receivable and similar income 5,809 6,513
381,488 656,034
Gain/loss on revaluation of tangible
assets

323,156

-
704,644 656,034

Interest payable and similar expenses 10 (44,261 ) (54,193 )
Profit before taxation 660,383 601,841

Tax on profit 11 (167,351 ) (143,179 )
Profit for the financial year 493,032 458,662

Other comprehensive income
Land & buildings revaluation adjustment 344,315 -
Income tax relating to other
comprehensive income

(80,789

)

-
Other comprehensive income for the
year, net of income tax

263,526

-
Total comprehensive income for the
year

756,558

458,662

Redpath Tyres Limited (Registered number: SC068083)

Balance Sheet
30th April 2024

2024 2023
Notes £    £    £    £   
Fixed assets
Tangible assets 13 1,621,702 749,745

Current assets
Stocks 14 1,834,860 1,975,122
Debtors 15 3,058,073 2,982,354
Cash at bank and in hand 45,371 36,007
4,938,304 4,993,483
Creditors
Amounts falling due within one year 16 4,322,323 4,252,821
Net current assets 615,981 740,662
Total assets less current liabilities 2,237,683 1,490,407

Creditors
Amounts falling due after more than one
year

17

(279,595

)

(280,132

)

Provisions for liabilities 21 (246,499 ) (110,666 )
Net assets 1,711,589 1,099,609

Capital and reserves
Called up share capital 22 10,000 10,000
Revaluation reserve 23 586,682 -
Retained earnings 23 1,114,907 1,089,609
Shareholders' funds 1,711,589 1,099,609

The financial statements were approved by the Board of Directors and authorised for issue on 30th January 2025 and were signed on its behalf by:




J N Redpath - Director



G Redpath - Director


Redpath Tyres Limited (Registered number: SC068083)

Statement of Changes in Equity
for the year ended 30th April 2024

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1st May 2022 10,000 775,525 - 785,525

Changes in equity
Dividends - (144,578 ) - (144,578 )
Total comprehensive income - 458,662 - 458,662
Balance at 30th April 2023 10,000 1,089,609 - 1,099,609

Changes in equity
Dividends - (144,578 ) - (144,578 )
Total comprehensive income - 169,876 586,682 756,558
Balance at 30th April 2024 10,000 1,114,907 586,682 1,711,589

Redpath Tyres Limited (Registered number: SC068083)

Cash Flow Statement
for the year ended 30th April 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,181,584 637,451
Interest paid (10,920 ) (34,520 )
Interest element of hire purchase
payments paid

(33,341

)

(20,304

)
Tax paid (117,551 ) (148,542 )
Net cash from operating activities 1,019,772 434,085

Cash flows from investing activities
Purchase of tangible fixed assets (239,109 ) (159,882 )
Sale of tangible fixed assets 21,083 29,728
Interest received 5,809 6,513
Net cash from investing activities (212,217 ) (123,641 )

Cash flows from financing activities
New loans in year - 100,000
Loan repayments in year (97,969 ) (22,062 )
Capital repayments in year (238,412 ) (180,861 )
Amount introduced by directors 212,767 529,518
Amount withdrawn by directors (323,555 ) (524,069 )
Equity dividends paid (144,578 ) (144,578 )
Net cash from financing activities (591,747 ) (242,052 )

Increase in cash and cash equivalents 215,808 68,392
Cash and cash equivalents at
beginning of year

2

(1,484,096

)

(1,552,488

)

Cash and cash equivalents at end of
year

2

(1,268,288

)

(1,484,096

)

Redpath Tyres Limited (Registered number: SC068083)

Notes to the Cash Flow Statement
for the year ended 30th April 2024

1. Reconciliation of profit before taxation to cash generated from operations

2024 2023
£    £   
Profit before taxation 660,383 601,841
Depreciation charges 378,489 285,304
Profit on disposal of fixed assets (19,833 ) (29,728 )
Gain on revaluation of fixed assets (323,156 ) -
Finance costs 44,261 54,193
Finance income (5,809 ) (6,513 )
734,335 905,097
Decrease in stocks 140,262 28,839
(Increase)/decrease in trade and other debtors (71,557 ) 83,571
Increase/(decrease) in trade and other creditors 378,544 (380,056 )
Cash generated from operations 1,181,584 637,451

2. Cash and cash equivalents

The amounts disclosed on the Cash flow statement in respect of cash and cash equivalents are in respect of these Balance sheet amounts:

Year ended 30th April 2024
30.4.24 1.5.23
£    £   
Cash and cash equivalents 45,371 36,007
Bank overdrafts (1,313,659 ) (1,520,103 )
(1,268,288 ) (1,484,096 )
Year ended 30th April 2023
30.4.23 1.5.22
£    £   
Cash and cash equivalents 36,007 47,508
Bank overdrafts (1,520,103 ) (1,599,996 )
(1,484,096 ) (1,552,488 )


Redpath Tyres Limited (Registered number: SC068083)

Notes to the Cash Flow Statement
for the year ended 30th April 2024

3. Analysis of changes in net debt

Other
non-cash
At 1.5.23 Cash flow changes At 30.4.24
£    £    £    £   
Net cash
Cash at bank
and in hand 36,007 9,364 45,371
Bank overdrafts (1,520,103 ) 206,444 (1,313,659 )
(1,484,096 ) 215,808 (1,268,288 )
Debt
Finance leases (355,751 ) 238,412 (345,115 ) (462,454 )
Debts falling due
within 1 year (28,645 ) 18,681 - (9,964 )
Debts falling due
after 1 year (98,505 ) 79,287 - (19,218 )
(482,901 ) 336,380 (345,115 ) (491,636 )
Total (1,966,997 ) 552,188 (345,115 ) (1,759,924 )

Redpath Tyres Limited (Registered number: SC068083)

Notes to the Financial Statements
for the year ended 30th April 2024

1. Statutory information

The company is a private company, limited by shares, registered in Scotland. The company's registered number and registered office address can be found on the company information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2. Statement of compliance

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

3. Accounting policies

Basis of preparing the financial statements
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Changes in accounting policies
During this accounting period to 30th April 2024 the directors applied a change in accounting policy in respect of freehold land and buildings. This class of assets have been revalued to an open market valuation from their previously applied historical cost less depreciation. The revaluation method will therefore apply from this period onwards. In conjuction with this decision the directors also changed the depreciation rate for the freehold buildings from 5% straight line on cost to 2% straight line on revalued cost. Freehold lands continues to hold an infinite useful life and therefore is not depreciated.

These applications were done to provide the company with a more reasonable valuation of the asset class (freehold land and property) than otherwise would have been shown under the historical cost application, such changes have uplifted the valuation of freehold land and buildings from a net book value of £126,172 up to a valuation of £790,000. There have been no changes or adjustments applied in respect of previous accounting periods.

Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
- the company has transferred to the buyer the significant risks and rewards of ownership of goods;
- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
- the amount of revenue can be measured reliably
- it is probable that the economic benefits associated with the transaction will flow to the company; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably

Redpath Tyres Limited (Registered number: SC068083)

Notes to the Financial Statements - continued
for the year ended 30th April 2024

3. Accounting policies - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold land and buildings - 2% on revalued cost
Improvements to property - 5% on cost
Plant and machinery - 20% on cost
Motor vehicles - 33% on cost

Where freehold land and property includes any acquisitions of land, this shall not have the respective depreciation policy applied to it. Land is deemed to be an everlasting asset and therefore will have an infinite useful life.

Tangible fixed assets are stated at cost, net of depreciation and any provision for impairment. Within 2024 there has been a change in accounting policy to revalue freehold property and change the future depreciation rate as disclosed in note 3 under 'Changes in accounting policies'. Therefore, freehold property will now be stated at revalued cost, net of depreciation and any provision for impairment.

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deduction of estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Stocks
Stock is valued at the lower of cost and net realisable value. Cost includes all direct expenditure and appropriate proportion of fixed and variable overheads. Net realisable value is based on estimated selling prices less further costs expected to be incurred in bringing the stock to completion.

Part worn stock is bought through bulk order rather than on an individual basis, resulting in an average cost being applied. This average cost can vary from consignment to consignment; therefore there is no specific value per item. In order to create a valuation for this element of the company's stock, the physical quantities have an average cost applied, which is calculated by the directors, as their best estimate of the individual average cost or net realisable value if this is lower.

Financial instruments
The following assets and liabilities are classified as financial instruments - trade debtors, other debtors, trade creditors, other creditors, accruals, bank overdrafts, bank loans, hire purchase contracts and directors' loans.

Bank loans and hire purchase contracts are initially measured at the present value of future payments, discounted at a market rate of interest, and subsequently at amortised cost using the effective interest method.

Directors' loans (being repayable on demand), trade debtors, other debtors, trade creditors, other creditors, accruals and bank overdrafts are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income.


Redpath Tyres Limited (Registered number: SC068083)

Notes to the Financial Statements - continued
for the year ended 30th April 2024

3. Accounting policies - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result and are recognised in the statement of comprehensive income in the period in which they arise.

Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership of the leased asset to the group. All other leases are classified as operating leases.

Assets held under finance leases are recognised initially at the fair value of the leased asset (or, if lower, the present value of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation using the effective interest method so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are deducted in measuring profit or loss. Assets held under finance leases are included in tangible fixed assets and depreciated and assessed for impairment losses in the same way as owned assets.

Rentals paid under operating leases are charged to the profit or loss on a straight line basis over the period of the lease.

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

Provisions
Provisions are set up only where it is probable that a present obligation exists as a result of an event prior to the balance sheet date and that a payment will be required in settlement that can be estimated reliably. Where material, provisions are calculated on a discounted basis.

Redpath Tyres Limited (Registered number: SC068083)

Notes to the Financial Statements - continued
for the year ended 30th April 2024

3. Accounting policies - continued

Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors with no stated interest rate are recognised initially at the transaction price. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities.

Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from supplies. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement of the creditor for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors with no stated interest rate are recognised at the transaction price.

Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the statement of comprehensive income over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in the interest payable and similar charges.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions
Provisions are set up only where it is probable that a present obligation exists as a result of an event prior to the balance sheet date and that a payment will be required in settlement that can be estimated reliably. Where material, provisions are calculated on a discounted basis.

Going Concern
The directors, in carrying out their duties in respect of going concern, prepare and review monthly management accounts to monitor the financial performance of the company to date. They have also considered the financial position for a minimum period of 12 months from the date of signing these financial statements and have an expectation that the company can continue trading in the current format for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Employee benefits
Short term employee benefits, including holiday pay, are recognised as an expense in the statement of comprehensive income in the period in which they are incurred.

4. Turnover

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

Redpath Tyres Limited (Registered number: SC068083)

Notes to the Financial Statements - continued
for the year ended 30th April 2024

5. Other operating income
2024 2023
£    £   
Sundry income 32,000 5,641

6. Employees and directors
2024 2023
£    £   
Wages and salaries 2,235,633 1,986,870
Social security costs 223,162 202,450
Other pension costs 90,806 82,542
2,549,601 2,271,862

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

64 61

The company operates defined contribution pension schemes. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge represents contributions payable by the company to the funds and amounted to £90,806 (2023 - £82,542) including contributions in respect of employees. Contributions totalling £12,320 (2023 - £8,442) were payable to the fund at 30th April 2024 and are included in creditors.

7. Directors' emoluments
2024 2023
£    £   
Directors' remuneration 89,000 89,000
Directors' pension contributions to money purchase schemes 10,712 10,712

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

8. Operating profit

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Hire of plant and machinery 1,076 9,320
Other operating leases 170,394 159,351
Depreciation - owned assets 90,643 102,759
Depreciation - assets on hire purchase contracts 287,845 182,546
Profit on disposal of fixed assets (19,833 ) (29,728 )
Foreign exchange differences 8,336 (6,826 )

9. Auditors' remuneration
2024 2023
£    £   
Fees payable to the company's auditors for the audit of the
company's financial statements

12,000

11,703

Redpath Tyres Limited (Registered number: SC068083)

Notes to the Financial Statements - continued
for the year ended 30th April 2024

9. Auditors' remuneration - continued

Non audit services £104,215 (2023 - £92,937)

10. Interest payable and similar expenses
2024 2023
£    £   
Bank loan interest 7,878 4,469
Other interest 3,042 30,051
Hire purchase interest 33,341 19,673
44,261 54,193

11. 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 112,307 117,477

Deferred tax 55,044 25,702
Tax on profit 167,351 143,179

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 660,383 601,841
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 19.493%)

165,096

117,317

Effects of:
Expenses not deductible for tax purposes 353 (5,730 )
Capital allowances in excess of depreciation (53,142 ) -
Depreciation in excess of capital allowances - 5,890
Deferred tax expense/(credit) 55,044 25,702
Total tax charge 167,351 143,179

Tax effects relating to effects of other comprehensive income

2024
Gross Tax Net
£    £    £   
Land & buildings revaluation adjustment 344,315 (80,789 ) 263,526

Redpath Tyres Limited (Registered number: SC068083)

Notes to the Financial Statements - continued
for the year ended 30th April 2024

12. Dividends
2024 2023
£    £   
Final 144,578 144,578

13. Tangible fixed assets
Freehold Improvements
land and to Plant and Motor
buildings property machinery vehicles Totals
£    £    £    £    £   
Cost or valuation
At 1st May 2023 482,379 231,290 1,143,050 1,178,438 3,035,157
Additions - 50,484 74,577 459,163 584,224
Disposals - - - (239,445 ) (239,445 )
Revaluations 323,156 - - - 323,156
Reclassification/transfer (15,535 ) 15,535 - - -
At 30th April 2024 790,000 297,309 1,217,627 1,398,156 3,703,092
Depreciation
At 1st May 2023 356,207 150,396 1,048,721 730,088 2,285,412
Charge for year 2,692 8,217 35,722 331,857 378,488
Eliminated on disposal - - - (238,195 ) (238,195 )
Revaluation adjustments (344,315 ) - - - (344,315 )
Reclassification/transfer (14,584 ) 14,584 - - -
At 30th April 2024 - 173,197 1,084,443 823,750 2,081,390
Net book value
At 30th April 2024 790,000 124,112 133,184 574,406 1,621,702
At 30th April 2023 126,172 80,894 94,329 448,350 749,745

Included in cost or valuation of land and buildings is freehold land of £ 140,000 (2023 - £ 100,000 ) which is not depreciated.

Cost or valuation at 30th April 2024 is represented by:

Freehold Improvements
land and to Plant and Motor
buildings property machinery vehicles Totals
£    £    £    £    £   
Valuation in 2024 323,156 - - - 323,156
Cost 466,844 297,309 1,217,627 1,398,156 3,379,936
790,000 297,309 1,217,627 1,398,156 3,703,092

If the freehold land and buildings had not been revalued the net book value of the assets would have been included at a value of £125,221.

As disclosed within the accounting policies, the application of freehold land and buildings has been changed to revalue the asset class to the fair value. Valuation has been completed by an independent and RICS qualified surveyor on an open market value basis at the time of the survey. This was completed on 20th March 2024 and the directors deem the valuation to remain suitable at the year end.

Redpath Tyres Limited (Registered number: SC068083)

Notes to the Financial Statements - continued
for the year ended 30th April 2024

13. Tangible fixed assets - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
Cost or valuation
At 1st May 2023 41,772 703,675 745,447
Additions - 386,883 386,883
Transfer to ownership - (279,284 ) (279,284 )
At 30th April 2024 41,772 811,274 853,046
Depreciation
At 1st May 2023 8,354 314,844 323,198
Charge for year 8,354 279,491 287,845
Transfer to ownership - (279,284 ) (279,284 )
At 30th April 2024 16,708 315,051 331,759
Net book value
At 30th April 2024 25,064 496,223 521,287
At 30th April 2023 33,418 388,831 422,249

14. Stocks
2024 2023
£    £   
Stocks 1,834,860 1,975,122

The stock of part worn tyres has a carrying value of £311,540 at 30th April 2024 (2023 - £293,955). This stock is bought through bulk order rather than on an individual basis, resulting in an average cost being applied. The average cost can vary from consignment to consignment, therefore there is no specific value per item. In order to create a valuation for this element of the company's stock, the physical quantities have an average cost applied, which is calculated by the directors as their best estimate of the individual average cost or net realisable value, if this is lower.

15. Debtors: amounts falling due within one year
2024 2023
£    £   
Trade debtors 2,650,156 2,583,139
Other debtors 2,798 800
Staff loans 189 -
Loan to related company 192 387
Directors' current accounts 262,538 258,376
Tax 114,188 114,188
Prepayments 28,012 25,464
3,058,073 2,982,354

Redpath Tyres Limited (Registered number: SC068083)

Notes to the Financial Statements - continued
for the year ended 30th April 2024

16. Creditors: amounts falling due within one year
2024 2023
£    £   
Bank loans and overdrafts (see note 18) 1,323,623 1,548,748
Hire purchase contracts (see note 19) 202,077 174,124
Trade creditors 2,177,013 1,799,820
Goods inwards control account 39,117 22,010
Tax 112,343 117,587
PAYE control account 51,168 49,745
VAT 199,886 244,690
Other creditors 6,367 10,799
Wages control account 24,024 -
Pension liability 12,320 8,442
Directors' current accounts 157,953 264,579
Accrued expenses 16,432 12,277
4,322,323 4,252,821

17. Creditors: amounts falling due after more than one year
2024 2023
£    £   
Bank loans (see note 18) 19,218 98,505
Hire purchase contracts (see note 19) 260,377 181,627
279,595 280,132

18. Loans

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 1,313,659 1,520,103
Bank loans 9,964 28,645
1,323,623 1,548,748

Amounts falling due between one and two years:
Bank loans - 1-2 years 10,059 29,619

Amounts falling due between two and five years:
Bank loans - 2-5 years 9,159 68,886

Redpath Tyres Limited (Registered number: SC068083)

Notes to the Financial Statements - continued
for the year ended 30th April 2024

19. Leasing agreements

Minimum lease payments under hire purchase fall due as follows:

2024 2023
£    £   
Net obligations repayable:
Within one year 202,077 174,124
Between one and five years 260,377 181,627
462,454 355,751

20. Secured debts

The following secured debts are included within creditors:

2024 2023
£    £   
Bank overdrafts 1,313,659 1,520,103
Bank loans 29,182 127,150
Hire purchase contracts 462,454 355,751
1,805,295 2,003,004

Bank of Scotland PLC hold a bond and floating charge over the undertaking and all property and assets present and future of the Company.

LLoyds Bank Commercial Finance Ltd hold a bond and floating charge over the whole property and undertaking of the Company.

Close Invoice Finance Limited hold a floating charge covering all of the property or undertaking of the Company.

Standard security is held by Scottish Borders Council and the Bank of Scotland PLC over land at Duns Industrial Estate.

Hire purchase contracts are secured against the assets to which they relate.

21. Provisions for liabilities
2024 2023
£    £   
Deferred tax
Accelerated capital allowances 165,710 110,666
Other timing differences 80,789 -
246,499 110,666

Deferred
tax
£   
Balance at 1st May 2023 110,666
Charge to Statement of comprehensive income during year 135,833
Balance at 30th April 2024 246,499

Redpath Tyres Limited (Registered number: SC068083)

Notes to the Financial Statements - continued
for the year ended 30th April 2024

22. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
10,000 Ordinary £1 10,000 10,000

23. Reserves

Retained earnings represents cumulative profits and losses, net of dividends paid and other adjustments.

The revaluation reserve reflects the movement in the uplift in value of freehold land and property which has been revalued. Movements are net of the deferred tax provisions in respect of the revalued increases.

24. Directors' advances, credits and guarantees

The following advances and credits to a director subsisted during the years ended 30th April 2024 and 30th April 2023:

20242023
££
Director 1
Balance outstanding at start of year258,376399,475
Amounts advanced92,47396,806
Amounts repaid(88,311)(237,905)
Balance outstanding at end of year262,538258,376

This loan is unsecured and repayable on demand. Interest is charged by the company at the official rate published by HMRC.

25. Related party disclosures

At the year end there were amounts due to two of the directors totalling £157,953 (2023 - £264,579). These amounts were unsecured and repayable on demand. One of the directors received interest at 8% while the other director's amount was interest free.

During the year dividends were paid to the directors totalling £144,578 (2023 - £144,578).

26. Post balance sheet events

Since the year end motor vehicles have been acquired at a cumulative figure of £386,884, of which £236,199 is being financed through hire purchase agreements.

As part of a demerging exercise, there have been changes after the year end which has resulted in the shareholding in Redpath Tyres Limited being held by Redpath Tyres Holdings Limited (the parent). The control over Redpath Tyres Limited remains to be the same as prior to the demerging excercise.

Further to the demerging exercise, an additional company has been incorporated and the ownership of some of the companies property assets held in Redpath Tyres Limited are in the process of being demerged into this separate holding company.