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Registered number: SC091923










MCGILL’S SCOTLAND EAST LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2023

 
MCGILL’S SCOTLAND EAST LIMITED
 

COMPANY INFORMATION


Directors
G Ballantyne 
C Napier 
R Roberts 
A Campbell (resigned 23 September 2023)
D Phillips (resigned 14 April 2023)




Company secretary
G Ballantyne



Registered number
SC091923



Registered office
Carmuirs House
300 Stirling Road

Larbert

Stirlingshire

FK5 3NJ




Independent auditors
Armstrong Watson Audit Limited
Chartered Accountants & Statutory Auditors

1st Floor 24 Blythswood Square

Glasgow

G2 4BG





 
MCGILL’S SCOTLAND EAST LIMITED
 

CONTENTS



Page
Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 10
Statement of Comprehensive Income
11
Balance Sheet
12
Statement of Changes in Equity
13 - 14
Notes to the Financial Statements
15 - 33


 
MCGILL’S SCOTLAND EAST LIMITED
 

STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023

Introduction
 
The company's principal activities are the provision of bus and coach operations in the Central Belt and Lothians of Scotland.

Business review
 
As shown in the company's profit and loss account, the company's turnover was £6.8 million compared to £6.3 million in the prior period. Business activity continued to be affected by slower than anticipated recovery from COVID-19. Passenger volumes continue to be impacted by changing work patterns and recreational activity.

Principal risks and uncertainties
 
There are several potential risks and uncertainties that could have an impact on the company's long-term performance. The directors have established an ongoing process for identifying, evaluating and managing the significant risks and uncertainties faced by the company and continue to assess these on a regular basis in the light of internal and external events.
Specific business risks faced by the company include the following:
Competition risk
The company faces the risk of loss of customers through other bus companies providing improved services or more competitive pricing. Management mitigate the competitive pressure by monitoring competitors' behaviour and strategies to ensure that the company acts appropriately under current market conditions.
Legal and regulatory risk
The directors are aware of the continual change in laws and other regulations and the increasing costs of compliance. The directors conduct regular reviews of safety procedures, equipment specifications, employment requirements, environmental procedures, insurance coverage and other areas to ensure they are appropriate and operating effectively.
Litigation and claims risk
The company has three main insurance risks: third party claims arising from vehicle and general operations; employee injuries; and property damage.
 
Fuel cost risk
Fuel costs represent a significant proportion of the company's cost base. Fuel prices are directly influenced by international, political and economic circumstances as well as natural disasters. Wherever possible, the company seek to minimise the operational and financial impact of such events through fixed price forward contracts and other operational efficiency measures.
Labour cost and employee relations and retention risk
Labour costs represent the most significant element of the company's operating costs. The directors continue to monitor employee recruitment, training, personal development and remuneration to ensure the company attracts and retains the right people.
To retain the right people, the company believes that good communication with employees is effected through regular briefing and negotiating meetings between the directors, the senior management and employee representatives on the central and depot negotiating committees. The briefing meetings enable senior management to consult employees and to ascertain their views on matters likely to affect their interests.

Page 1

 
MCGILL’S SCOTLAND EAST LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Principal risks and uncertainties ( continued...)

Environmental risk (including climate change)
The company recognises the importance of its environmental policies, monitors its impact on the environment, and designs and implements policies to reduce any damage that might be caused by its activities. Initiatives designed to minimise the company's impact on the environment include safe disposal of waste, recycling and reducing energy consumption.
Through our core business activities, we are committed to providing a safe, good quality, reliable and cost-effective public transport service to all our customers. Our core business strategy is to increase customer numbers and encourage a greater move towards the use of bus transport. This will support the needs of society to achieve more sustainable travel. We recognise the environmental impacts arising from our business activities and are committed to reducing these through effective environmental management.
Economic risk
An uncertain economic outlook coupled with inflated costs of living could have a negative impact on our businesses in terms of reduced demand and reduced opportunities for growth. The uncertainty around appetite for return to travel post-pandemic and consumer means may result in reduced demand for public transportation due to people travelling less for both business and pleasure. To an extent, the company is able to modify services to react to market changes and to focus on controlling costs to ensure it remains competitive.

Financial key performance indicators
 
The key performance indicators for the company are turnover, net assets and operating profit, which have been discussed above. The company's directors believe that further key performance indicators for the company are not necessary or appropriate for an understanding of the development, performance or position of the business.


31 December
1 January
2023
2023
        £
        £
Turnover

6,832,054

6,301,900
 
Operating loss

(4,150,209)

(11,493,657)
 
Net (liabilities)/assets

(859,234)

3,322,171
 

Page 2

 
MCGILL’S SCOTLAND EAST LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Directors' statement of compliance with duty to promote the success of the Company
 
The directors acknowledge and understand their duties and responsibilities, including that of section 172, of the Companies Act 2006. A director of a company must act in the way he or she considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:
- the likely consequences of any decision in the long term
- the interest of the company's employees
- the need to foster the company's business relationships with suppliers, customers and others
- the impact of the company's operating on the local community and the environment
- the desirability of the company maintaining a reputation for high standards of business conduct, and
- the need to act fairly as members of the company
The Board recognises that the long term success of the business is dependent on the way we interact with a large number of important stakeholders including our colleagues, clients and shareholders. The directors have had regard to the interest of our stakeholders while complying with their obligations to promote the ongoing success of the business in line with section 172 of the Companies Act.
Ahead of all board meetings the directors are supplied with board papers that highlight relevant stakeholder considerations along with performance metrics and ongoing forecasts.
The board's decision making considers both risk and reward in the pursuit of delivering long term value to our stakeholders and acknowledging and understanding the current and potential risks to the business, both financial and non-financial, are fundamental to how we manage the business.
The directors, both individually and collectively as a board consider the decisions taken during the period ended 31 December 2023 were in conformance to their duty under section 172 of the Companies Act.
 


This report was approved by the board and signed on its behalf.



R Roberts
Director

Date: 17 March 2025

Page 3

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the Period ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The loss for the Period, after taxation, amounted to £4,181,405 (1 Jan 2023 - loss £11,115,926).

Directors

The directors who served during the Period were:

G Ballantyne 
C Napier 
R Roberts 
A Campbell (resigned 23 September 2023)
D Phillips (resigned 14 April 2023)

Future developments

The trading environment for the next 12 months is likely to remain relatively challenging as the economy and customers re-establish their normal patterns of activity and behaviour. The directors will review all aspects of performance on a continuous basis and tailor the company’s activity to balance achievable revenue levels with available Government support while giving due consideration to all stakeholder groups.

Page 4

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Going concern

At the time of approving the financial statements, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements despite losses  of £4,181,405 and net liabilities of £859,234.
The information used to make this assessment is the preparation of Group forecasts to at least twelve months from the date of the financial statements approval. These showed that the Group has access to sufficient cash for at least 12 months from the date of the financial statements approval. A letter of support has been obtained from the Parent Company which confirms the availability of financial support to the Company should it be required and that amounts owed to the group will not be sought for repayment should this hinder the Company’s ability to meet its 3rd party obligations as they fall due.
On this basis, the Directors are confident that the company will continue to meet its liabilities as they fall due for at least twelve months from the date of approval of the financial statements and the Company will continue as a going concern for at least this twelve month period.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsArmstrong Watson Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





R Roberts
Director

Date: 17 March 2025

Page 5

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MCGILL’S SCOTLAND EAST LIMITED
 

Adverse opinion


We have audited the financial statements of McGill's Scotland East Limited (the 'Company') for the period ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, 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, because of the significance of the matter described in the basis for adverse opinion section of our report, the financial statements: 

 •  do not give a true and fair view of the state of the company’s affairs as at 31 December 2023
 •  have not been properly prepared in accordance with United Kingdom Generally Accepted        Accounting Practice ; and 
 •  have not been prepared in accordance with the requirements of the Companies Act 2006.

Basis for adverse opinion


The prior period financial statements contained a disclaimer of opinion for the following reasons. We were unable to observe the counting of physical inventories in the prior period due to being appointed after the period end date. Additionally, the parent entity acquired McGill’s Scotland East Limited in September 2022 however, management were unable to access the books and records for the first two quarters of the period ended 1 January 2023. Therefore, we were unable to gain assurance over the profit and loss account and balance sheet in the prior period. Furthermore we were unable to gain the necessary assurance over the prior period opening balances as a result of the 26th March 2022 period end audit report being qualified. The lack of assurance obtained as a result of these matters represented a pervasive risk and therefore on this basis the financial statements did not give a true and fair view. Our opinion on the company’s financial statements in the previous period was disclaimed accordingly.
The effect of the above points on the current period’s results cannot be determined. Our opinion on the current period’s financial statements is also modified because of the possible material effect of the prior year matters on the accuracy and comparability of the current period’s figures and the corresponding figures.
Additionally, we were not appointed as auditor of the company until after 31 December 2023 and thus did not observe the counting of physical inventories at the end of the period ended 31 December 2023. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2023, which are included in the balance sheet at £232,991, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.
Whilst we have not identified any material issues from our current year audit procedures over the year end Balance sheet and Statement of comprehensive income with the exception of the stock matter identified above, the lack of assurance over the possible material effect of the prior year matters on the accuracy and comparability of the current period’s figures and the corresponding figures presents a pervasive risk and therefore on this basis the financial statements do not give a true and fair view.


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 United Kingdom, including the Financial Reporting Council'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 adverse opinion on the financial statements. 

 


Page 6

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MCGILL’S SCOTLAND EAST LIMITED (CONTINUED)


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 other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
As described in the basis for adverse opinion section of our report, due to management being unable to access the books and records for the first two quarters of the previous period we were unable to gain assurance over the profit and loss account and balance sheet in the prior period. The impact on the current period results is a pervasive risk on the accuracy and comparability of the current period’s figures and the corresponding figures. We have concluded that the other information may be materially misstated for the same reason.
Additionally, as described in the basis for adverse opinion section of our report, we were unable to satisfy ourselves concerning the period end inventory quantities of £232,991 and the opening balances as described above. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.


Opinion on other matters prescribed by the Companies Act 2006
 

Except for the effects of the basis for adverse opinion section of our report, in our opinion, based on the work undertaken in the course of the 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.



Page 7

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MCGILL’S SCOTLAND EAST LIMITED (CONTINUED)


Matters on which we are required to report by exception
 

Notwithstanding our adverse opinion on the financial statements, in the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit performed subject to the pervasive limitation described above, we have not identified material misstatements in the Strategic report or the Directors' report.


Arising solely from the limitation on the scope of our work relating to inventory and the opening balances, referred to in the basis for adverse opinion above:
 
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
we were unable to determine whether adequate accounting records have been kept.


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:
 
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.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 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.


Page 8

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MCGILL’S SCOTLAND EAST LIMITED (CONTINUED)


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 an Auditors' 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.
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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: 
 •  the engagement partner ensured that the engagement team collectively had the appropriate        competence, capabilities and knowledge of the Company to identify or recognise non-compliance with       applicable laws and regulations;  
 • we identified the laws and regulations applicable to the company through discussions with directors and         other management and review of appropriate industry knowledge. Key laws and regulations we         identified during the audit were the UK Companies Act 2006 and tax legislation, UK employment       legislation, UK health and safety legislation and public service vehicle operator licensing regulations; 
 •  we assessed the extent of compliance with the laws and regulations identified above by making    
 •  identified laws and regulations were communicated within the audit team regularly and the team       remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
 •  making enquiries of management as to where they considered there was susceptibility to fraud, their       knowledge of actual, suspected and alleged fraud; and 
 •  considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and       regulations.
To address the risk of fraud through management bias and override of controls, we: 
 •  performed analytical procedures as a risk assessment tool to identify any unusual or unexpected       relationships; 
 •  tested journal entries recorded on the Company’s finance system to identify unusual transactions that       may indicate override of controls; 
 •  reviewed key judgements and estimates for any evidence of management bias; and 
 •  reviewed the application of accounting policies with focus on those with heightened estimation        uncertainty. 
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 
 •  agreeing financial statement disclosures to underlying supporting documentation; and 
 •  enquiring of management to identify actual and potential litigation and claims.



 
Page 9

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MCGILL’S SCOTLAND EAST LIMITED (CONTINUED)


Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
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 Auditors' report.


Use of  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 Auditors' 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.





Martin Johnston (Senior Statutory Auditor)
  
for and on behalf of
Armstrong Watson Audit Limited
 
Chartered Accountants & Statutory Auditors
  
Glasgow

18 March 2025
Page 10

 
MCGILL’S SCOTLAND EAST LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023

Period
31 December
9 months ended
1 January
2023
2023
Note
£
£

  

Turnover
 4 
6,832,054
6,301,900

Cost of sales
  
(9,436,048)
(12,266,552)

Gross loss
  
(2,603,994)
(5,964,652)

Administrative expenses
  
(2,973,123)
538,811

Exceptional administrative expenses
 11 
-
(8,220,747)

Other operating income
 5 
1,426,908
2,152,932

Operating loss
 6 
(4,150,209)
(11,493,656)

Interest payable and similar expenses
 9 
(31,196)
(1,270)

Loss before tax
  
(4,181,405)
(11,494,926)

Tax on loss
 10 
-
379,000

Loss for the financial Period
  
(4,181,405)
(11,115,926)

Other comprehensive income for the Period
  

Total comprehensive income for the Period
  
(4,181,405)
(11,115,926)

The notes on pages 15 to 33 form part of these financial statements.

Page 11

 
MCGILL’S SCOTLAND EAST LIMITED
REGISTERED NUMBER: SC091923

BALANCE SHEET
AS AT 31 DECEMBER 2023

31 December
1 January
2023
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
3,614,613
3,336,148

Investments
 14 
2
-

  
3,614,615
3,336,148

Current assets
  

Stocks
 15 
232,991
314,496

Debtors: amounts falling due within one year
 16 
2,842,446
3,855,911

Cash at bank and in hand
 17 
572,644
1,079,698

  
3,648,081
5,250,105

Creditors: amounts falling due within one year
 18 
(7,174,507)
(5,240,082)

Net current (liabilities)/assets
  
 
 
(3,526,426)
 
 
10,023

Total assets less current liabilities
  
88,189
3,346,171

Creditors: amounts falling due after more than one year
 19 
(879,321)
-

Provisions for liabilities
  

Other provisions
 21 
(68,102)
(24,000)

  
 
 
(68,102)
 
 
(24,000)

Net (liabilities)/assets
  
(859,234)
3,322,171


Capital and reserves
  

Called up share capital 
 22 
26,000,010
26,000,010

Capital redemption reserve
 23 
49,000
49,000

Profit and loss account
 23 
(26,908,244)
(22,726,839)

  
(859,234)
3,322,171


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


R Roberts
Director

Date: 17 March 2025

The notes on pages 15 to 33 form part of these financial statements.

Page 12

 
MCGILL’S SCOTLAND EAST LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 2 January 2023
26,000,010
49,000
(22,726,839)
3,322,171


Comprehensive income for the Period

Loss for the Period
-
-
(4,181,405)
(4,181,405)
Total comprehensive income for the Period
-
-
(4,181,405)
(4,181,405)


At 31 December 2023
26,000,010
49,000
(26,908,244)
(859,234)


The notes on pages 15 to 33 form part of these financial statements.

Page 13

 
MCGILL’S SCOTLAND EAST LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE 9 MONTHS ENDED 1 JANUARY 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 March 2022 (as previously stated)
26,000,010
49,000
(11,546,142)
14,502,868

Prior year adjustment - correction of error
-
-
(64,771)
(64,771)

At 1 March 2022 (as restated)
26,000,010
49,000
(11,610,913)
14,438,097


Comprehensive income for the period

Loss for the period
-
-
(11,115,926)
(11,115,926)
Total comprehensive income for the period
-
-
(11,115,926)
(11,115,926)


At 1 January 2023
26,000,010
49,000
(22,726,839)
3,322,171


The notes on pages 15 to 33 form part of these financial statements.

Page 14

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

1.


General information

McGill's Scotland East Limited is a private company, limited by shares, registered in Scotland. The Company's registration number is SC091923 and its registered office address is Carmuirs House, 300 Stirling Road, Larbert, Stirlingshire, FK5 3NJ.
The Company's principal activities are the provision of bus and coach operations in the Central Belt and Lothian regions of Scotland.
These financial statements have been prepared in pounds sterling, rounded to the nearest pound, as this is the currency of the primary economic environment in which the Company operates.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of McGill's Bus Service Limited as at 31 December 2023 and these financial statements may be obtained from Companies House.

 
2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

Page 15

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Going concern

At the time of approving the financial statements, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements despite losses  of £4,181,405 and net liabilities of £859,234.
The information used to make this assessment is the preparation of Group forecasts to at least twelve months from the date of the financial statements approval. These showed that the Group has access to sufficient cash for at least 12 months from the date of the financial statements approval. A letter of support has been obtained from the Parent Company which confirms the availability of financial support to the Company should it be required and that amounts owed to the group will not be sought for repayment should this hinder the Company’s ability to meet its 3rd party obligations as they fall due.
On this basis, the Directors are confident that the company will continue to meet its liabilities as they fall due for at least twelve months from the date of approval of the financial statements and the Company will continue as a going concern for at least this twelve month period.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 16

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.8

Sale and leaseback

Where a sale and leaseback transaction results in a finance lease, no gain is immediately recognised for any excess of sales proceeds over the carrying amount of the asset. Instead, the proceeds are presented as a liability and subsequently measured at amortised cost using the effective interest method.
When a sale and leaseback transaction results in an operating lease, and it is clear that the transition is established at fair value any profit or loss is recognised immediately. If the sale price is below fair value, any profit or loss is recognised immediately unless the loss is compensated for by the future lease payments at below market price. In that case any such loss is amortised in proportion to the lease payments over the period for which the asset is expected to be used. If the sale price is above fair value, the excess over fair value is amortised over the period for which the asset is expected to be used.

 
2.9

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 17

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

The tax expense for the Period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.13

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.14

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.15

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 18

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.15
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
50 years straight line
Plant and machinery
-
3-10 years straight line
Motor vehicles
-
5-15 years straight line
Fixtures and fittings
-
3-5 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.16

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.17

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.18

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.19

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 19

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.20

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.21

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.22

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

  
2.23

Insurance provision

Insurance provisions are recognised when the Company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. The Company's policy is to self-insure low value claims. Major claims are covered through third party insurance policies.

 
2.24

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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 assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 
Page 20

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.24
Financial instruments (continued)


Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Page 21

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects both current and future periods.
The Directors do not consider there to be any key judgements or significant estimates in the current or prior year.


4.


Turnover

An analysis of turnover by class of business is as follows:


Period
31 December
9 months ended
1 January
2023
2023
£
£

Provision of passenger transport services
6,832,054
6,301,900

6,832,054
6,301,900


Analysis of turnover by country of destination:

Period
31 December
9 months ended
1 January
2023
2023
£
£

United Kingdom
6,832,054
6,301,900

6,832,054
6,301,900


Page 22

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

5.


Other operating income

Period
31 December
9 months ended
1 January
2023
2023
£
£

Other operating income
742,502
1,961,221

Government grants receivable
679,960
166,879

Insurance claims receivable
4,446
24,832

1,426,908
2,152,932



6.


Operating loss

The operating loss is stated after charging:

Period
31 December
9 months ended
1 January
2023
2023
£
£

Depreciation and amortisation
1,396,552
4,142,583

Other operating lease rentals
21,637
50,625


7.


Auditors' remuneration

During the Period, the Company obtained the following services from the Company's auditors and their associates:


Period
31 December
9 months ended
1 January
2023
2023
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
33,500
33,500

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 23

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

8.


Employees

Staff costs were as follows:


Period
31 December
9 months ended
1 January
2023
2023
£
£

Wages and salaries
5,589,263
5,023,823

Social security costs
432,100
311,847

Cost of defined contribution scheme
90,369
75,685

6,111,732
5,411,355


The average monthly number of employees, including the directors, during the Period was as follows:


        Period
     31 December
   9 months ended
       1 January
        2023
        2023
            No.
            No.







Drivers
106
122



Maintenance and traffic
36
44



Administration
21
13

163
179


9.


Interest payable and similar expenses

Period
31 December
9 months ended
1 January
2023
2023
£
£


Bank interest payable
-
1,270

Finance leases and hire purchase contracts
31,196
-

31,196
1,270

Page 24

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

10.


Taxation


Period
31 December
9 months ended
1 January
2023
2023
£
£



Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
-
(379,000)

Total deferred tax
-
(379,000)


Tax on loss
-
(379,000)

Factors affecting tax charge for the period/period

The tax assessed for the Period/period is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

Period
31 December
9 months ended
1 January
2023
2023
£
£


Loss on ordinary activities before tax
(4,181,405)
(11,494,925)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.53% (2023 - 19%)
(983,885)
(2,184,036)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
4,868
1,629,185

Utilisation of tax losses
62,111
-

Other timing differences leading to an increase (decrease) in taxation
11,948
-

Impact on opening deferred tax arising from a rate change
(3,424)
(183,828)

Movement in deferred tax not recognised
58,362
359,679

Group relief surrendered
850,020
-

Total tax charge for the Period/period
-
(379,000)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 25

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

11.


Exceptional items

Period
31 December
9 months ended
1 January
2023
2023
£
£


Write off of intercompany loans
-
8,220,747

-
8,220,747


12.


Intangible assets






Computer software

£



Cost


At 2 January 2023
3,133



At 31 December 2023

3,133



Amortisation


At 2 January 2023
3,133



At 31 December 2023

3,133



Net book value



At 31 December 2023
-



At 1 January 2023
-



Page 26

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

13.


Tangible fixed assets







Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 2 January 2023
2,875,922
591,469
15,964,490
49,190
19,481,071


Additions
-
88,085
1,673,308
2,860
1,764,253


Transfers intra group
-
-
(2,052,502)
-
(2,052,502)



At 31 December 2023

2,875,922
679,554
15,585,296
52,050
19,192,822



Depreciation


At 2 January 2023
2,284,395
415,977
13,441,902
2,649
16,144,923


Charge for the Period on owned assets
53,336
66,849
1,266,529
9,838
1,396,552


Transfers intra group
-
-
(1,963,266)
-
(1,963,266)



At 31 December 2023

2,337,731
482,826
12,745,165
12,487
15,578,209



Net book value



At 31 December 2023
538,191
196,728
2,840,131
39,563
3,614,613



At 1 January 2023
591,527
175,492
2,522,588
46,541
3,336,148




The net book value of land and buildings may be further analysed as follows:


At 31 December
At 1 January
2023
2023
£
£

Freehold
538,191
591,527

538,191
591,527


Depreciation is not provided of the land element of freehold property. The value of the land element of freehold property amounts to £100,000 (1 Jan 2023 : £100,000).

Page 27

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

14.


Fixed asset investments








Investments in subsidiary companies

£



Cost or valuation


At 2 January 2023
4,800,000



At 31 December 2023

4,800,000



Impairment


At 2 January 2023
4,800,000


Reversal of impairment losses
(2)



At 31 December 2023

4,799,998



Net book value



At 31 December 2023
2



At 1 January 2023
-


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Midland Bluebird Limited
Carmuirs House, 300 Stirling Road, Larbert, Stirlingshire, FK5 3NJ
Ordinary
100%
Eastern Scottish Omnibuses Limited
Carmuirs House, 300 Stirling Road, Larbert, Stirlingshire, FK5 3NJ
Ordinary
100%

Associated undertakings of the Company as at 31 December 2023 were as follows:
Nicecon Limited - Registered office - 99 Larkfield Industrial Estate, Greenock, Scotland, PA16 0EQ - Indirect holding through subsidiary company of 50% holding in ordinary shares of this company.

Page 28

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

15.


Stocks

At 31 December
At 1 January
2023
2023
£
£

Fuel and parts
232,991
314,496

232,991
314,496



16.


Debtors

At 31 December
At 1 January
2023
2023
£
£


Trade debtors
311,818
1,216,514

Amounts owed by group undertakings
834,903
2,053,493

Other debtors
1,579,782
254,919

Prepayments and accrued income
115,943
330,985

2,842,446
3,855,911



17.


Cash and cash equivalents

At 31 December
At 1 January
2023
2023
£
£

Cash at bank and in hand
572,644
1,079,698

572,644
1,079,698


Page 29

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

18.


Creditors: Amounts falling due within one year

At 31 December
At 1 January
2023
2023
£
£

Trade creditors
542,708
428,185

Amounts owed to group undertakings
4,479,933
2,874,237

Other taxation and social security
612,130
323,050

Obligations under finance lease and hire purchase contracts
260,494
-

Other creditors
600,067
459,994

Accruals and deferred income
679,175
1,154,616

7,174,507
5,240,082



19.


Creditors: Amounts falling due after more than one year

At 31 December
At 1 January
2023
2023
£
£

Net obligations under finance leases and hire purchase contracts
879,321
-

879,321
-



20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

At 31 December
At 1 January
2023
2023
£
£


Within one year
260,494
-

Between 1-5 years
879,321
-

1,139,815
-

Page 30

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

21.


Provisions


Dilapidation charges
Insurance claims
Total

£
£
£





At 2 January 2023
24,000
-
24,000


Charged to profit or loss
-
44,102
44,102



At 31 December 2023
24,000
44,102
68,102

Dilapidation provision 
The dilapidation provision represents expected costs of returning leased assets to their pre-lease condition, as stipulated by the terms of the lease agreement.
Insurance provision
The insurance provision relates to liabilities where there is uncertainty about the amount and the exact timing of any settlement. The Company self-insures bus-related insurance claims up to a certain individual claim value and up to an annual aggregate value of annual claims.
 
The directors have recognised as a liability in the accounts a plausible, cumulative estimate of claims made but not settled up to the balance sheet date. This liability has been quantified on the basis of all information currently available, business experience, legal input and the supporting advice of the company’s specialist insurance brokers. Claim settlement will likely be made within 5 years of the claim becoming live. No discounting has been applied to the amount of the claim provision as the impact of this is not considered material.

Page 31

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

22.


Share capital

At 31 December
At 1 January
2023
2023
£
£
Allotted, called up and fully paid



26,000,010 (2023 - 26,000,010) Ordinary shares of £1.00 each
26,000,010
26,000,010

The Company has one class of ordinary shares which carry full, voting, dividend and capital distribution rights.



23.


Reserves

Capital redemption reserve

The capital redemption reserve represents monies held to maintain the non-distributable reserves position on the repurchase of shares. 

Profit and loss account

The profit and loss account reserve represents cumulative profits and losses net of dividends paid.


24.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £90,369 (1 Jan 2023 - £75,865). Contributions totalling £46,329 (1 Jan 2023 - £140,189) were payable to the fund at the balance sheet date and are included in creditors.


25.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

At 31 December
At 1 January
2023
2023
£
£


Not later than 1 year
73,093
73,093

Later than 1 year and not later than 5 years
113,802
182,770

Later than 5 years
-
4,125

186,895
259,988

Page 32

 
MCGILL’S SCOTLAND EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

26.


Related party transactions

The Company has taken advantage of the exemption, under the terms of Financial Reporting 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
During the period, the Company was refunded £27,945 (1 Jan 2023 charged: £27,945) by an associated company for management charges. At the balance sheet date, included in other creditors are amounts owed to associated companies of £Nil (1 Jan 2023: £27,945).


27.


Controlling party

The Company's immediate parent is McGill's Bus Service Limited. McGill's Scotland East Limited is a
wholly owned subsidiary of McGill's Bus Service Limited, a company registered in Scotland, which is the
smallest and largest group of companies for which group financial statements are prepared. McGill's Bus
Service Limited's registered office and principal place of business is 99 Earnhill Road, Larkfield Industrial
Estate, Greenock, Renfrewshire, PA16 0EQ.
Copies of the financial statements of McGill's Bus Service Limited are available to the public from from
Companies House, Crown Way, Cardiff, CF14 3UZ.
McGill's Bus Service Limited is a wholly owned subsidiary of Arranglen Limited and Arranglen Limited is a wholly owned subsidiary of Dalglen (No. 1812) Limited.
Dalglen (No 1812) Limited is a private limited company and it does not have an ultimate controlling party.


Page 33