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REGISTERED NUMBER: SC705378 (Scotland)















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: P Sheerin
R E Rigg



REGISTERED OFFICE: 105 West George Street
Glasgow
G2 1QL



REGISTERED NUMBER: SC705378 (Scotland)



INDEPENDENT AUDITORS: Robb Ferguson
Chartered Accountants & Statutory Auditors
Regent Court
70 West Regent Street
Glasgow
G2 2QZ



BANKERS: The Royal Bank of Scotland
Glasgow City Branch
10 Gordon Street
Glasgow
G1 3PL



SOLICITORS: Harper MacLeod LLP
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 2,265,837 2,136,855
2,265,837 2,136,855

CURRENT ASSETS
Debtors 87,011 102,054
Cash at bank and in hand 372,009 252,656
459,020 354,710
CREDITORS
Amounts falling due within one year 90,705 103,406
NET CURRENT ASSETS 368,315 251,304
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,634,152

2,388,159

PROVISIONS FOR LIABILITIES 7 (131,043 ) (89,856 )

PENSION LIABILITY (447,436 ) (386,816 )
NET ASSETS 2,055,673 1,911,487

RESERVES
Fair value reserve 8 31,959 31,959
Income and expenditure account 2,023,714 1,879,528
2,055,673 1,911,487

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

All the members have consented to the preparation of an abridged Statement of Comprehensive Income and an abridged Statement of Financial Position for the year ended 30 November 2024 in accordance with Section 444(2A) of the Companies Act 2006.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 20 December 2024 and were signed on its behalf by:





P Sheerin - Director


Scottish Engineering (Registered number: SC705378)

Notes to the Financial Statements
For The Year Ended 30 November 2024

1. STATUTORY INFORMATION

Scottish Engineering is a private company, limited by guarantee , 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. ACCOUNTING POLICIES

Basis of preparing the financial statements
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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 2.5% on cost

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 16 (2023 - 15 ) .

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 50,000
DEPRECIATION
At 1 December 2023
and 30 November 2024 50,000
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:

Fyfe Chambers (First Floor) Limited
Registered office: 105 West George Street, Glasgow, G2 1QL
Nature of business: Property
%
Class of shares: holding
Ordinary 100.00

Scottish Engineering (Registered number: SC705378)

Notes to the Financial Statements - continued
For The Year Ended 30 November 2024

5. FIXED ASSET INVESTMENTS - continued

ScotEng Limited
Registered office: 105 West George Street, Glasgow, Scotland, G2 1QL
Nature of business: Dormant company
%
Class of shares: holding
Ordinary 100.00

Scottish Engineering Services Limited
Registered office: 105 West George Street, Glasgow, Scotland, G2 1QL
Nature of business: Dormant company
%
Class of shares: holding
Ordinary 100.00

6. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 30,735 21,635
Between one and five years 39,688 33,296
70,423 54,931

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 89,856
Charge to Income Statement during year 41,187
Balance at 30 November 2024 131,043

8. RESERVES
Fair
value
reserve
£   
At 1 December 2023
and 30 November 2024 31,959

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.

Graham Cantlay (Senior Statutory Auditor)
for and on behalf of Robb Ferguson

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