Company Registration No. SC505361 (Scotland)
VECTOR SUPPLIES (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
VECTOR SUPPLIES (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
Mr D McBeath
Mr S Proctor
Mr G Farquhar
Mr E Beedie
Company number
SC505361
Registered office
Unit 4B, Wellheads Way
Wellheads Industrial Estate
Dyce
Aberdeen
AB21 7GA
Auditor
Johnston Carmichael LLP
Bishop's Court
29 Albyn Place
Aberdeen
AB10 1YL
Solicitors
Burness Paull LLP
2 Marischal Square
Broad Street
Aberdeen
AB10 1DQ
VECTOR SUPPLIES (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 28
VECTOR SUPPLIES (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
The principal activity of the group is the supply of equipment, services & rentals to the oil production, energy and service industries.
Fair review of the business
The results of the group show turnover of £13,794,049 (2023: £12,335,891), and an operating profit of £611,894 (2023: £1,085,034). At year end the group had net assets of £3,801,216 (2023: £3,465,074) and net current assets of £3,384,313 (2023: £2,695,100).
The group continues to trade strongly in key markets in the oil producing regions of the world, we have seen significant increase in trade outside Europe. This is reflected in the increase in in turnover which increased more than directors’ expectations.
The Directors expect that the turnover will stabilise for FY25 and we shall see similar numbers with regard to turnover and margin as we consolidate out position in the marketplace. The oil and gas sector remains volatile however the group is managing the market well and is able to adapt to these pressures and believe that we can continue to be a strong and reliable partner for our customers in the future.
Principal risks and uncertainties
The management of the business and the execution of the group’s strategy are subject to a number of risks.
The key business risks and uncertainties affecting the group are considered to relate to competition from both national and international oil supply companies, and the general well being of the oil industry. The group is not reliant upon one geographical market.
The group is exposed to foreign currency risk on transactions where sales and purchases can be in currencies other than the group’s functional currency. The currencies other than the functional currency used are relatively stable (Euro and US Dollar). Management believe that the group’s exposure is manageable and therefore it does not need to enter into forward exchange contracts.
Mr D McBeath
Director
31 January 2025
VECTOR SUPPLIES (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the group is the supply of material and equipment to the oil production, energy and services industries. The principal activity of the company is that of a holding company.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. (2023 - nil). The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D McBeath
Mr S Proctor
Mr G Farquhar
Mr E Beedie
Auditor
The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
Mr D McBeath
Director
31 January 2025
VECTOR SUPPLIES (HOLDINGS) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
The directors are responsible for preparing the annual report 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). 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 group and company, and of the profit or loss of the group 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 pruden
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
VECTOR SUPPLIES (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VECTOR SUPPLIES (HOLDINGS) LIMITED
- 4 -
Opinion
We have audited the financial statements of Vector Supplies (Holdings) Limited (‘the parent company’) and its subsidiaries (‘the group’) for the year ended 31 March 2024, which comprise the Group Statement of Comprehensive Income, Group Balance Sheet, Company Balance Sheet, Group Statement of Changes in Equity, Company Statement of Changes in Equity, Group Statement of Cash Flows and notes to the financial statements, including 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 group’s and of the parent company’s affairs as at 31 March 2024 and of the group’s 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.
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 Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and parent 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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.
VECTOR SUPPLIES (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VECTOR SUPPLIES (HOLDINGS) LIMITED
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
Adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
The parent company 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 directors' responsibilities statement, 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 is 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 parent 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 group or parent company or to cease operations, or have no realistic alternative but to do so.
Auditor 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 an auditor's report 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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.
VECTOR SUPPLIES (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VECTOR SUPPLIES (HOLDINGS) LIMITED
- 6 -
Extent to which the audit was considered capable of detectinf irregularities, including fraud (continued)
All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and the parent company and the sector in which they operate, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:
We gained an understanding of how the group and the parent company are complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of our review of relevant correspondence with regulatory bodies and board meeting minutes.
We assessed the susceptibility of the group’s and parent company’s financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:
In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:
Reviewing minutes of meetings of those charged with governance for reference to: breaches of laws and regulation or for any indication of any potential litigation and claims; and events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud;
Reviewing the level of and reasoning behind the group’s and parent company’s procurement of legal and professional services;
Performing audit procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing judgements made by management in their calculation of accounting estimates for potential management bias;
Performing audit work procedures confirming the cut off of revenue recognised within the financial statements by reviewing a sample of invoices raised either side of the financial year-end to ensure the appropriate recognition point had been met or otherwise;
Completion of appropriate checklists and use of our experience to assess the group’s and parent company’s compliance with the Companies Act 2006; and
Agreement of the financial statement disclosures to supporting documentation.
VECTOR SUPPLIES (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VECTOR SUPPLIES (HOLDINGS) LIMITED
- 7 -
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 an auditor's report 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.
Jenny Junnier (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
31 January 2025
Statutory Auditor
Bishop's Court
29 Albyn Place
Aberdeen
AB10 1YL
VECTOR SUPPLIES (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
13,794,049
12,335,891
Cost of sales
(10,607,021)
(9,301,670)
Gross profit
3,187,028
3,034,221
Administrative expenses
(2,648,064)
(2,018,645)
Other operating income
72,930
69,458
Operating profit
4
611,894
1,085,034
Interest receivable and similar income
8
972
134
Interest payable and similar expenses
9
(49,847)
(5,572)
Profit before taxation
563,019
1,079,596
Tax on profit
10
(226,877)
(264,046)
Profit for the financial year
336,142
815,550
Profit and total comprehensive income for the financial year is all attributable to the owners of the parent company.
VECTOR SUPPLIES (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
430,609
775,096
Tangible assets
12
20,391
31,651
451,000
806,747
Current assets
Stocks
15
1,279,726
1,138,613
Debtors
16
4,869,220
4,663,154
Cash at bank and in hand
156,007
74,063
6,304,953
5,875,830
Creditors: amounts falling due within one year
17
(2,920,640)
(3,180,730)
Net current assets
3,384,313
2,695,100
Total assets less current liabilities
3,835,313
3,501,847
Provisions for liabilities
Provisions
19
30,000
30,000
Deferred tax liability
20
4,097
6,773
(34,097)
(36,773)
Net assets
3,801,216
3,465,074
Capital and reserves
Called up share capital
22
1,379,076
1,379,076
Profit and loss reserves
23
2,422,140
2,085,998
Total equity
3,801,216
3,465,074
The financial statements were approved by the board of directors and authorised for issue on 31 January 2025 and are signed on its behalf by:
31 January 2025
Mr D McBeath
Director
VECTOR SUPPLIES (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
8,000,000
8,000,000
Current assets
Debtors
16
52,006
165,000
Cash at bank and in hand
6,229
9,369
58,235
174,369
Creditors: amounts falling due within one year
17
(480,423)
(800,538)
Net current liabilities
(422,188)
(626,169)
Net assets
7,577,812
7,373,831
Capital and reserves
Called up share capital
22
1,379,076
1,379,076
Profit and loss reserves
23
6,198,736
5,994,755
Total equity
7,577,812
7,373,831
As permitted by s408 Companies Act 2006, The company has not presented its own profit and loss account and related notes. The company's profit for the year was £203,890 (2023 - £810,777).
The financial statements were approved by the board of directors and authorised for issue on 31 January 2025 and are signed on its behalf by:
31 January 2025
Mr D McBeath
Director
Company Registration No. SC505361
VECTOR SUPPLIES (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
1,379,076
1,270,448
2,649,524
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
815,550
815,550
Balance at 31 March 2023
1,379,076
2,085,998
3,465,074
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
336,142
336,142
Balance at 31 March 2024
1,379,076
2,422,140
3,801,216
VECTOR SUPPLIES (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
1,379,076
5,183,978
6,563,054
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
810,777
810,777
Balance at 31 March 2023
1,379,076
5,994,755
7,373,831
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
203,981
203,981
Balance at 31 March 2024
1,379,076
6,198,736
7,577,812
VECTOR SUPPLIES (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,017,733
350,054
Interest paid
(49,847)
(5,572)
Income taxes paid
(370,019)
(128,940)
Net cash inflow from operating activities
597,867
215,542
Investing activities
Purchase of tangible fixed assets
(614)
-
Interest received
972
134
Net cash generated from investing activities
358
134
Financing activities
Invoice finance (repayment)/drawdown
(15,357)
372,044
Repayment of loan notes
(500,924)
(720,000)
Net cash used in financing activities
(516,281)
(347,956)
Net increase/(decrease) in cash and cash equivalents
81,944
(132,280)
Cash and cash equivalents at beginning of year
74,063
206,343
Cash and cash equivalents at end of year
156,007
74,063
Relating to:
Cash at bank and in hand
156,007
74,063
VECTOR SUPPLIES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Company information
Vector Supplies (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Unit 4B, Wellheads Way, Wellheads Industrial Estate, Dyce, Aberdeen, AB21 7GA.
The group consists of Vector Supplies (Holdings) Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
VECTOR SUPPLIES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation
The consolidated financial statements incorporate those financial statements of the parent company, Vector Supplies (Holdings) Limited and its subsidiary (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the parent company and group have adequate resources to continue in operational existence for the foreseeable future. In reaching this conclusion, the directors have considered a range of financial forecasts which take into account the activity levels in the oil and gas sector. Based on these, the directors are satisfied that the parent company and group have adequate financial resources to enable them to continue to operate and to meet their liabilities as they fall due for a period of at least 12 months from the approval of these financial statements. The directors have therefore continued to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
Turnover for sales of goods is recognised at the point at which the entity has transferred to the buyer the significant risks and rewards of ownership of the goods in accordance with the Incoterms. This will be the point at which the goods are ready for collection from the warehouse by the customer.
Turnover for management charges is recognised at the fair value of the consideration received or receivable and is shown net of VAT and other sales related taxes.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and equipment
20% straight line
Fixtures and fittings
15% and 25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
VECTOR SUPPLIES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.8
Fixed asset investments
Equity investments are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit and loss account. Reversals of impairment losses are also recognised in the profit and loss account.
1.11
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.12
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
VECTOR SUPPLIES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Trade receivables sold to a finance provider are derecognised if substantially all risks and rewards of ownership are transferred. The proceeds received are recognised as a financial liability initially measured at fair value and subsequently at amortised cost using the effective interest method. Finance costs are recognised in the income statement over the period of the facility. If significant risks and rewards are retained, the receivables remain on the balance sheet with a corresponding liability. The financial liability is presented separately in the balance sheet, and related cash flows are classified as financing activities, Key terms and conditions are disclosed in the notes to the financial statements.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the profit and loss account.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the profit and loss account.
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 group 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 group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
VECTOR SUPPLIES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.15
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.16
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 company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
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.
VECTOR SUPPLIES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
1.19
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the profit and loss account.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements have had the most significant effect on amounts recognised in the financial statements.
Carrying value of fixed asset investments and related goodwill
The directors regularly assess the carrying value of fixed asset investments, and related goodwill, and recognise an impairment charge in the profit and loss account if any impairment is identified. The useful like of goodwill (10 years) is also an estimate made by management.
The carrying value of goodwill and fixed asset investments at the reporting date is outlined at notes 11 and 13 respectively.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Supply of material and equipment
13,794,049
12,335,891
2024
2023
£
£
Turnover analysed by geographical market
UK
2,616,598
2,524,679
Europe
2,002,072
2,025,419
Rest of the World
9,175,379
7,785,793
13,794,049
12,335,891
VECTOR SUPPLIES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences
48,133
(27,468)
Depreciation of owned tangible fixed assets
11,874
11,872
Amortisation of intangible assets
344,487
344,487
Operating lease charges
75,000
75,000
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
9,500
9,000
Audit of the financial statements of the company's subsidiaries
29,500
28,500
39,000
37,500
For other services
Taxation compliance services
6,000
5,750
Other taxation services
1,375
1,250
All other non-audit services
6,000
-
13,375
7,000
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
18
18
4
4
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,550,084
984,901
955,875
395,875
Social security costs
136,647
118,545
71,688
52,232
Pension costs
27,134
27,791
1,713,865
1,131,237
1,027,563
448,107
VECTOR SUPPLIES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
955,875
395,875
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
440,417
160,417
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
972
134
9
Interest payable and similar expenses
2024
2023
£
£
Interest on invoice facility
49,847
5,572
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
229,553
272,841
Adjustments in respect of prior periods
(5,815)
Total current tax
229,553
267,026
Deferred tax
Origination and reversal of timing differences
(2,676)
(2,980)
Total tax charge
226,877
264,046
VECTOR SUPPLIES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 22 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
563,019
1,079,596
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
140,755
205,123
Tax effect of expenses that are not deductible in determining taxable profit
86,122
58,923
Taxation charge
226,877
264,046
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
3,444,871
Amortisation and impairment
At 1 April 2023
2,669,775
Amortisation charged for the year
344,487
At 31 March 2024
3,014,262
Carrying amount
At 31 March 2024
430,609
At 31 March 2023
775,096
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
VECTOR SUPPLIES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
12
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Total
£
£
£
Cost
At 1 April 2023
134,507
99,348
233,855
Additions
614
614
At 31 March 2024
134,507
99,962
234,469
Depreciation and impairment
At 1 April 2023
134,507
67,697
202,204
Depreciation charged in the year
11,874
11,874
At 31 March 2024
134,507
79,571
214,078
Carrying amount
At 31 March 2024
20,391
20,391
At 31 March 2023
31,651
31,651
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
8,000,000
8,000,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
9,082,550
Impairment
At 1 April 2023 and 31 March 2024
1,082,550
Carrying amount
At 31 March 2024
8,000,000
At 31 March 2023
8,000,000
VECTOR SUPPLIES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
14
Subsidiaries
Details of the company's subsidiaries at 31 March 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Vector Supplies Limited
Unit 4b, Wellheads Way, Dyce, Aberdeen, AB21 7GA
Ordinary
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
1,279,726
1,138,613
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,337,430
4,030,610
Corporation tax recoverable
32,006
Amounts owed by group undertakings
-
-
20,000
165,000
Other debtors
352,107
458,003
Prepayments and accrued income
179,683
174,541
4,869,220
4,663,154
52,006
165,000
Amounts owed by group undertakings in the parent company are interest free and have no fixed repayment terms.
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Invoice facility
18
508,381
523,738
Trade creditors
1,696,760
1,668,924
Corporation tax payable
129,553
272,841
188,818
Other taxation and social security
88,214
116,663
69,392
99,764
Deferred income
63,200
63,200
Other creditors
500,844
500,924
Accruals and deferred income
434,532
34,520
411,031
11,032
2,920,640
3,180,730
480,423
800,538
VECTOR SUPPLIES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
18
Invoice facility
Group
Company
2024
2023
2024
2023
£
£
£
£
Invoice facility
508,381
523,738
Payable within one year
508,381
523,738
The group's only borrowings at the year end was in relation to an invoice facility in place between the Group and its bankers, Royal Bank of Scotland, which the Group can drawdown their trade receivables against at a set discount percentage. Repayment terms are within 1 year. This balance is secured over the debts to which the amounts relate.
19
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Provision for dilapidations
30,000
30,000
-
-
Movements on provisions:
Provision for dilapidations
Group
£
At 1 April 2023 and 31 March 2024
30,000
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
4,097
6,773
The company has no deferred tax assets or liabilities.
VECTOR SUPPLIES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
20
Deferred taxation
(Continued)
- 26 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
6,773
-
Credit to profit or loss
(2,676)
-
Liability at 31 March 2024
4,097
-
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
27,134
27,791
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,379,076
1,379,076
1,379,076
1,379,076
The parent company has one class of ordinary shares which carry full voting rights but no right to fixed income or repayment of capital. Distributions are at the discretion of the parent company.
23
Reserves
Capital redemption reserve
The capital redemption reserve represents the par value of company shares repurchased.
Profit and loss reserve
The profit and loss account represents cumulative realisable profits less dividends declared.
24
Financial commitments, guarantees and contingent liabilities
The company is subject to a floating charge over its assets in relation to its banking facilities.
VECTOR SUPPLIES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
25
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
75,000
75,000
-
-
Between two and five years
300,000
225,000
-
-
In over five years
150,411
300,411
-
-
525,411
600,411
-
-
26
Related party transactions
Included within creditors due within one year for the parent company at 31 March 2024 are loan notes due to directors of £nil (2023: £500,924). The loan notes were fully repaid during the year and were unsecured, interest free and repayable on demand.
27
Controlling party
The company is controlled by the directors.
28
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
336,142
815,550
Adjustments for:
Taxation charged
226,877
264,046
Finance costs
49,847
5,572
Investment income
(972)
(134)
Amortisation and impairment of intangible assets
344,487
344,487
Depreciation and impairment of tangible fixed assets
11,874
11,872
Movements in working capital:
Increase in stocks
(141,113)
(34,679)
Increase in debtors
(206,066)
(1,255,063)
Increase in creditors
698,501
198,403
Cash generated from operations
1,319,577
350,054
VECTOR SUPPLIES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
29
Analysis of changes in net debt - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
74,063
81,944
156,007
Invoice facility
(523,738)
15,357
(508,381)
(449,675)
97,301
(352,374)
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