REGISTERED NUMBER: |
Financial Statements For The Year Ended 30 November 2024 |
for |
Scottish Engineering |
REGISTERED NUMBER: |
Financial Statements For The Year Ended 30 November 2024 |
for |
Scottish Engineering |
Scottish Engineering (Registered number: SC705378) |
Contents of the Financial Statements |
For The Year Ended 30 November 2024 |
Page |
Company Information | 1 |
Abridged Statement of Financial Position | 2 |
Notes to the Financial Statements | 3 |
Scottish Engineering |
Company Information |
For The Year Ended 30 November 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Accountants & Statutory Auditors |
Regent Court |
70 West Regent Street |
Glasgow |
G2 2QZ |
BANKERS: |
Glasgow City Branch |
10 Gordon Street |
Glasgow |
G1 3PL |
SOLICITORS: |
The Ca d'oro |
45 Gordon Street |
Glasgow |
G1 3PE |
Scottish Engineering (Registered number: SC705378) |
Abridged Statement of Financial Position |
30 November 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
Investments | 5 |
CURRENT ASSETS |
Debtors |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 7 | ( |
) | ( |
) |
PENSION LIABILITY | ( |
) | ( |
) |
NET ASSETS |
RESERVES |
Fair value reserve | 8 |
Income and expenditure account |
The financial statements were approved by the Board of Directors and authorised for issue on |
Scottish Engineering (Registered number: SC705378) |
Notes to the Financial Statements |
For The Year Ended 30 November 2024 |
1. | STATUTORY INFORMATION |
Scottish Engineering is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are prepared in sterling, which is the functional currency of the association. Monetary amounts in these financial statements are rounded to the nearest £. |
The financial instruments have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below. |
Preparation of consolidated financial statements |
The financial statements contain information about Scottish Engineering as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements. |
Turnover |
Turnover is derived from subscriptions and is supplemented by training course, consultancies and rents. Turnover is recognised at fair value when received, and is shown net of VAT. Subscriptions are invoiced annually in December. |
Tangible fixed assets |
Fixtures and fittings | - |
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. |
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss. |
Fixed asset investments |
Interests in subsidiaries are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Transaction costs are expensed to profit or loss as incurred. Changes in fair value are recognised in other comprehensive income except to the extent that a gain reverse a loss previously recognised in profit or loss, or a loss exceeds the accumulated gains recognised in equity; such gains and losses are recognised in profit or loss. |
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. |
Cash at bank and in hand |
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
Scottish Engineering (Registered number: SC705378) |
Notes to the Financial Statements - continued |
For The Year Ended 30 November 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has elected to apply the provisions of Section 11 ' Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial statements. |
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets |
Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Scottish Engineering (Registered number: SC705378) |
Notes to the Financial Statements - continued |
For The Year Ended 30 November 2024 |
2. | ACCOUNTING POLICIES - continued |
Retirement benefits |
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. |
The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice. |
The change in the net defined benefit liability arising from employee service during the year is recgonised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise. |
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost. |
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in the net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods. |
The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are be settled directly. Fair value is based on the market price information, and in case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme. |
Employee benefits |
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. |
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. |
Termination benefits are recognised immediately as an expense when the association is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
Leases |
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
Scottish Engineering (Registered number: SC705378) |
Notes to the Financial Statements - continued |
For The Year Ended 30 November 2024 |
4. | TANGIBLE FIXED ASSETS |
Totals |
£ |
COST |
At 1 December 2023 |
and 30 November 2024 |
DEPRECIATION |
At 1 December 2023 |
and 30 November 2024 |
NET BOOK VALUE |
At 30 November 2024 |
At 30 November 2023 |
5. | FIXED ASSET INVESTMENTS |
Information on investments other than loans is as follows: |
Totals |
£ |
COST OR VALUATION |
At 1 December 2023 | 2,136,855 |
Additions | 465,078 |
Disposals | (507,779 | ) |
Revaluations | 171,683 |
At 30 November 2024 | 2,265,837 |
NET BOOK VALUE |
At 30 November 2024 | 2,265,837 |
At 30 November 2023 | 2,136,855 |
Cost or valuation at 30 November 2024 is represented by: |
Totals |
£ |
Valuation in 2022 | 31,959 |
Valuation in 2024 | 565,969 |
Cost | 1,667,909 |
2,265,837 |
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Registered office: 105 West George Street, Glasgow, G2 1QL |
Nature of business: |
% |
Class of shares: | holding |
Scottish Engineering (Registered number: SC705378) |
Notes to the Financial Statements - continued |
For The Year Ended 30 November 2024 |
5. | FIXED ASSET INVESTMENTS - continued |
Registered office: 105 West George Street, Glasgow, Scotland, G2 1QL |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 105 West George Street, Glasgow, Scotland, G2 1QL |
Nature of business: |
% |
Class of shares: | holding |
6. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
Operating lease payments represent rental payable by the association for motor vehicles. Leases are negotiated for an average term of 3 years and rentals are fixed. |
7. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 131,043 | 89,856 |
Deferred |
tax |
£ |
Balance at 1 December 2023 |
Charge to Income Statement during year |
Balance at 30 November 2024 |
8. | RESERVES |
Fair |
value |
reserve |
£ |
At 1 December 2023 |
and 30 November 2024 |
Scottish Engineering (Registered number: SC705378) |
Notes to the Financial Statements - continued |
For The Year Ended 30 November 2024 |
9. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
10. | FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES |
In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements. |
Scottish Engineering (Registered number: SC705378) |
Notes to the Financial Statements - continued |
For The Year Ended 30 November 2024 |
11. | RETIREMENT BENEFITS |
Scottish Engineering are members of the Engineering Employers' Federation Pension Fund which is a defined benefit scheme. |
An actuarial valuation for the scheme was carried out at 31 March 2024 which showed a deficit of £17m. To eliminate this deficit, the Trustees have asked Scottish Engineering to pay contributions to the scheme of £57,120 in the year to March 2025 and then pay annual contributions of £56,000 (£4,667 per month), increasing by 2% each 1 April from April 2024 until the end date of 31 December 2030. |
Furthermore, an update to the fund was provided by the Fund's actuarial advisors, showing the deficit value of £18m by the end of the 31 October 2024. This has been used in calculating the pension liability at the reporting end date. |
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities. Scottish Engineering's share of the scheme liabilities is 2.5%. |
Where the scheme is in deficit and where the association has agreed to a deficit funding arrangement the association recognised a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost. |
Key Assumptions: | 2024 | 2023 |
% | % |
Discount rate | 5.60 | 4.12 |
Amounts recognised in the profit and loss account | 2024 | 2023 |
£ | £ |
Net interest on defined benefit liability/(asset) | 21,956 | 25,781 |
Revaluation in year | 126,616 | (420,575 | ) |
Total | 148,572 | (394,794 | ) |
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows: |
2024 | 2023 |
£ | £ |
Present value of defined benefit obligations | 447,436 | 386,813 |
Deficit in scheme | 447,436 | 386,813 |
Movements in the present value of defined benefit obligations: | 2024 | 2023 |
Liabilities at 1 December 2023 | 386,813 | 927,476 |
Benefits paid | (87,949 | ) | (145,868 | ) |
Interest cost | 21,956 | 25,781 |
Revaluation in year | 126,616 | (420,575 | ) |
Liabilities at 30 November 2024 | 447,436 | 386,813 |
The information provided below has been provided by the scheme's actuaries as at 31 March 2024. |
The major categories of scheme assets as a percentage of total scheme assets are as follows: |
Defined benefit pension plans |
Scottish Engineering (Registered number: SC705378) |
Notes to the Financial Statements - continued |
For The Year Ended 30 November 2024 |
2024 | 2023 |
Liability driven investments | 29% | 29% |
Private lending | 22% | 22% |
Cash in transit | 21% | 21% |
Cash and net current assets | 21% | 21% |
Absolute bonds | 7% | 7% |
100% | 100% |
Principal actuarial assumptions at the Statement of Financial Position date (expressed as weighted averages): |
2024 | 2023 |
Discount rate | 5.6% | 3.9% |
Salary increase rate | 3.5% | 3.6% |
Pension increase rate (CPI) | 3.0% | 2.8% |
Life expectancy is based on the Fund's S3NA standard tables published by the Continuous Mortality Investigation ("CMI") and uses the CMI 2022 projections model, with a 90% weighting of the S3NA tables, smoothing parameter ("S") 7, initial adjustment of 0.25% and a long-term rate of improvement of 1.5% pa for both males and females. Based on these assumptions, the average future life expectancy at age 65 are summarized below: |
Males | Females |
Current pensioners | 22.9 years | 25.4 years |
Future pensioners | 24.4 years | 27.0 years |