REGISTERED NUMBER: |
Redpath Tyres Limited |
Strategic Report, |
Report of the Directors and |
Audited Financial Statements |
for the Year Ended 30th April 2024 |
REGISTERED NUMBER: |
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: |
Secretary: |
Registered office: |
Business address: |
Registered number: |
Auditors: |
Academy House |
Shedden Park Road |
Kelso |
Roxburghshire |
TD5 7AL |
Solicitors: |
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: |
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. |
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: |
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. |
for and on behalf of |
Academy House |
Shedden Park Road |
Kelso |
Roxburghshire |
TD5 7AL |
Redpath Tyres Limited (Registered number: SC068083) |
Statement of Comprehensive |
Income |
for the year ended 30th April 2024 |
2024 | 2023 |
Notes | £ | £ |
Turnover | 4 |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Administrative expenses | ( |
) | ( |
) |
343,679 | 643,880 |
Other operating income | 5 |
Operating profit | 8 |
Interest receivable and similar income |
381,488 | 656,034 |
Gain/loss on revaluation of tangible assets |
323,156 |
- |
704,644 | 656,034 |
Interest payable and similar expenses | 10 | ( |
) | ( |
) |
Profit before taxation |
Tax on profit | 11 | ( |
) | ( |
) |
Profit for the financial year |
Other comprehensive income |
Land & buildings revaluation adjustment |
Income tax relating to other comprehensive income |
( |
) |
Other comprehensive income for the year, net of income tax |
Total comprehensive income for the year |
Redpath Tyres Limited (Registered number: SC068083) |
Balance Sheet |
30th April 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 13 |
Current assets |
Stocks | 14 |
Debtors | 15 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 16 |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
17 |
( |
) |
( |
) |
Provisions for liabilities | 21 | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 22 |
Revaluation reserve | 23 |
Retained earnings | 23 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30th April 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30th April 2024 |
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 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 212,767 | 529,518 |
Amount withdrawn by directors | (323,555 | ) | (524,069 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
(1,484,096 |
) |
(1,552,488 |
) |
Cash and cash equivalents at end of year |
2 |
( |
) |
( |
) |
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 |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
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 |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
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 | ( |
) | ( |
) |
(1,268,288 | ) | (1,484,096 | ) |
Year ended 30th April 2023 |
30.4.23 | 1.5.22 |
£ | £ |
Cash and cash equivalents | 36,007 | 47,508 |
Bank overdrafts | ( |
) | ( |
) |
(1,484,096 | ) | (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 | ) | (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 |
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 |
Freehold land and buildings | - |
Improvements to property | - |
Plant and machinery | - |
Motor vehicles | - |
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 |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
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 |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
8. | Operating profit |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Foreign exchange differences | ( |
) |
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 |
Other interest |
Hire purchase interest |
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 |
Deferred tax |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes | ( |
) |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
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 | (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 |
13. | Tangible fixed assets |
Freehold | Improvements |
land and | to | Plant and | Motor |
buildings | property | machinery | vehicles | Totals |
£ | £ | £ | £ | £ |
Cost or valuation |
At 1st May 2023 |
Additions |
Disposals | ( |
) | ( |
) |
Revaluations |
Reclassification/transfer | ( |
) |
At 30th April 2024 |
Depreciation |
At 1st May 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Revaluation adjustments | ( |
) | ( |
) |
Reclassification/transfer | ( |
) |
At 30th April 2024 |
Net book value |
At 30th April 2024 |
At 30th April 2023 |
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 |
Additions |
Transfer to ownership | - | (279,284 | ) | (279,284 | ) |
At 30th April 2024 |
Depreciation |
At 1st May 2023 |
Charge for year |
Transfer to ownership | - | (279,284 | ) | (279,284 | ) |
At 30th April 2024 |
Net book value |
At 30th April 2024 |
At 30th April 2023 |
14. | Stocks |
2024 | 2023 |
£ | £ |
Stocks |
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 |
Other debtors |
Staff loans | 189 | - |
Loan to related company | 192 | 387 |
Directors' current accounts | 262,538 | 258,376 |
Tax |
Prepayments |
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) |
Hire purchase contracts (see note 19) |
Trade creditors |
Goods inwards control account | 39,117 | 22,010 |
Tax |
PAYE control account | 51,168 | 49,745 |
VAT | 199,886 | 244,690 |
Other creditors |
Wages control account | 24,024 | - |
Pension liability | 12,320 | 8,442 |
Directors' current accounts | 157,953 | 264,579 |
Accrued expenses |
17. | Creditors: amounts falling due after more than one year |
2024 | 2023 |
£ | £ |
Bank loans (see note 18) |
Hire purchase contracts (see note 19) |
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 |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
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 |
Between one and five years |
20. | Secured debts |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank overdrafts |
Bank loans |
Hire purchase contracts | 462,454 | 355,751 |
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 |
Other timing differences | 80,789 | - |
246,499 | 110,666 |
Deferred |
tax |
£ |
Balance at 1st May 2023 |
Charge to Statement of comprehensive income during year |
Balance at 30th April 2024 |
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: | £ | £ |
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: |
2024 | 2023 |
£ | £ |
Director 1 |
Balance outstanding at start of year | 258,376 | 399,475 |
Amounts advanced | 92,473 | 96,806 |
Amounts repaid | (88,311 | ) | (237,905 | ) |
Balance outstanding at end of year | 262,538 | 258,376 |
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. |