Caseware UK (AP4) 2023.0.135 2023.0.135 2024-06-302024-06-30falsetruetruetruetrue2023-07-0114truefalse14Food production 01112043 2023-07-01 2024-06-30 01112043 2022-07-01 2023-06-30 01112043 2024-06-30 01112043 2023-06-30 01112043 2022-07-01 01112043 c:CompanySecretary1 2023-07-01 2024-06-30 01112043 c:Director1 2023-07-01 2024-06-30 01112043 c:Director2 2023-07-01 2024-06-30 01112043 c:Director3 2023-07-01 2024-06-30 01112043 c:RegisteredOffice 2023-07-01 2024-06-30 01112043 d:PlantMachinery 2023-07-01 2024-06-30 01112043 d:PlantMachinery 2024-06-30 01112043 d:PlantMachinery 2023-06-30 01112043 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 01112043 d:MotorVehicles 2023-07-01 2024-06-30 01112043 d:MotorVehicles 2024-06-30 01112043 d:MotorVehicles 2023-06-30 01112043 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 01112043 d:FurnitureFittings 2023-07-01 2024-06-30 01112043 d:FurnitureFittings 2024-06-30 01112043 d:FurnitureFittings 2023-06-30 01112043 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 01112043 d:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 01112043 d:CurrentFinancialInstruments 2024-06-30 01112043 d:CurrentFinancialInstruments 2023-06-30 01112043 d:Non-currentFinancialInstruments 2024-06-30 01112043 d:Non-currentFinancialInstruments 2023-06-30 01112043 d:CurrentFinancialInstruments d:WithinOneYear 2024-06-30 01112043 d:CurrentFinancialInstruments d:WithinOneYear 2023-06-30 01112043 d:Non-currentFinancialInstruments d:AfterOneYear 2024-06-30 01112043 d:Non-currentFinancialInstruments d:AfterOneYear 2023-06-30 01112043 d:ShareCapital 2024-06-30 01112043 d:ShareCapital 2023-06-30 01112043 d:ShareCapital 2022-07-01 01112043 d:RetainedEarningsAccumulatedLosses 2023-07-01 2024-06-30 01112043 d:RetainedEarningsAccumulatedLosses 2024-06-30 01112043 d:RetainedEarningsAccumulatedLosses 2022-07-01 2023-06-30 01112043 d:RetainedEarningsAccumulatedLosses 2023-06-30 01112043 d:RetainedEarningsAccumulatedLosses 2022-07-01 01112043 d:AcceleratedTaxDepreciationDeferredTax 2024-06-30 01112043 d:AcceleratedTaxDepreciationDeferredTax 2023-06-30 01112043 c:OrdinaryShareClass1 2023-07-01 2024-06-30 01112043 c:OrdinaryShareClass1 2024-06-30 01112043 c:OrdinaryShareClass1 2023-06-30 01112043 c:FRS102 2023-07-01 2024-06-30 01112043 c:Audited 2023-07-01 2024-06-30 01112043 c:FullAccounts 2023-07-01 2024-06-30 01112043 c:PrivateLimitedCompanyLtd 2023-07-01 2024-06-30 01112043 d:HirePurchaseContracts d:WithinOneYear 2024-06-30 01112043 d:HirePurchaseContracts d:WithinOneYear 2023-06-30 01112043 c:SmallCompaniesRegimeForAccounts 2023-07-01 2024-06-30 01112043 2 2023-07-01 2024-06-30 01112043 e:PoundSterling 2023-07-01 2024-06-30 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 01112043










SCOTT & NEWMAN LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 30 JUNE 2024

 
SCOTT & NEWMAN LIMITED
 
 
COMPANY INFORMATION


Directors
R Owen 
J P Owen 
D R Owen 




Company secretary
R K Jones



Registered number
01112043



Registered office
Sitka House
Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG




Independent auditors
WR Partners
Chartered Accountants & Statutory Auditors

Belmont House

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG





 
SCOTT & NEWMAN LIMITED
 

CONTENTS



Page
Strategic report
 
1
Directors' report
 
2 - 3
Independent auditors' report
 
4 - 7
Statement of comprehensive income
 
8
Statement of financial position
 
9 - 10
Statement of changes in equity
 
11
Notes to the financial statements
 
12 - 20


 
SCOTT & NEWMAN LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

Introduction
 
The directors present their strategic report of the company for the year ended 30 June 2024.

Business review
 
Turnover increased by £4.7m on the previous year to £19.5m which reflects market conditions.
Weather conditions restricted the supply of potatoes which severely increased freebuy prices. Our contracted growers were also affected with reduced yields and lower tonnages. This had an adverse effect on our fixed price contract sales but the Company nevertheless achieved a profit before taxation of £820k.
Net assets at 30 June 2024 were £2.96m which is a increase of £423k on the previous year.
Through leadership, hard work and decades of experience we can assess and make decisions swiftly to the benefit of both customers and suppliers.
We acknowledge and appreciate the enterprise and loyal support of our staff.

Principal risks and uncertainties
 
The key risk to the business is the raw material price fluctuations arising from adverse weather conditions. A policy of constant price monitoring, use of market intelligence, the futures market combined with the offset of purchase and sale contracts at fixed prices is used to mitigate the risk.
As a result of this, the company can be exposed to large fluctuations in its cash position. The directors manage this by ensuring there is sufficient cash held by the business and also having an overdraft arrangement to manage any liquidity requirements.

Financial key performance indicators
 
The directors consider that the key financial performance indicators are those that demonstrate the activity, financial performance and position of the Company, being turnover, gross profit margin, operating profit and net assets. An analysis of the performance of the company during the year and its position at the year end with reference to these key performance indicators is provided in the business review above.

Other key performance indicators
 
The Company uses a range of other key performance indicators to monitor and measure performance within the business on a regular basis.


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



R Owen
Director

Date: 26 March 2025

Page 1

 
SCOTT & NEWMAN LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024

The directors present their report and the financial statements for the year ended 30 June 2024.

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;

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.

Directors

The directors who served during the year were:

R Owen 
J P Owen 
D R Owen 

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.

Page 2

 
SCOTT & NEWMAN LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024


Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

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





R Owen
Director

Date: 26 March 2025

Page 3

 
SCOTT & NEWMAN LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCOTT & NEWMAN LIMITED
UNDER SECTION 449 OF THE COMPANIES ACT 2006
 

Opinion


We have audited the financial statements of Scott & Newman Limited (the 'Company') for the year ended 30 June 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 30 June 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 4

 
SCOTT & NEWMAN LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCOTT & NEWMAN LIMITED (CONTINUED)
UNDER SECTION 449 OF THE COMPANIES ACT 2006


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the 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 the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the Directors' report.


Page 5

 
SCOTT & NEWMAN LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCOTT & NEWMAN LIMITED (CONTINUED)
UNDER SECTION 449 OF THE COMPANIES ACT 2006


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, 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.


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:

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR).
We understood how the Company is complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.
 
Page 6

 
SCOTT & NEWMAN LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCOTT & NEWMAN LIMITED (CONTINUED)
UNDER SECTION 449 OF THE COMPANIES ACT 2006




Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 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 2006Our 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.





Helen Pierce (Senior statutory auditor)
  
for and on behalf of
WR Partners
 
Chartered Accountants
Statutory Auditors
  
Belmont House
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

 
Date: 
26 March 2025
Page 7

 
SCOTT & NEWMAN LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
Note
£
£

  

Turnover
  
19,509,364
14,842,583

Cost of sales
  
(17,984,871)
(13,509,334)

Gross profit
  
1,524,493
1,333,249

Administrative expenses
  
(793,916)
(807,313)

Other operating income
  
25,218
166,110

Operating profit
  
755,795
692,046

Interest receivable and similar income
  
68,833
41,470

Interest payable and similar expenses
  
(5,025)
(219)

Profit before tax
  
819,603
733,297

Tax on profit
  
(196,108)
(159,117)

Profit for the financial year
  
623,495
574,180

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 12 to 20 form part of these financial statements.

Page 8

 
SCOTT & NEWMAN LIMITED
REGISTERED NUMBER: 01112043

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 4 
335,163
187,980

  
335,163
187,980

Current assets
  

Stocks
 5 
301,427
7,569

Debtors: amounts falling due within one year
 6 
3,015,279
2,636,815

Cash at bank and in hand
 7 
1,441,503
1,637,137

  
4,758,209
4,281,521

Creditors: amounts falling due within one year
 8 
(2,100,350)
(1,932,813)

Net current assets
  
 
 
2,657,859
 
 
2,348,708

Total assets less current liabilities
  
2,993,022
2,536,688

Creditors: amounts falling due after more than one year
  
(3,438)
-

Provisions for liabilities
  

Deferred tax
  
(29,401)
-

  
 
 
(29,401)
 
 
-

Net assets
  
2,960,183
2,536,688


Capital and reserves
  

Called up share capital 
  
550,000
550,000

Profit and loss account
 13 
2,410,183
1,986,688

  
2,960,183
2,536,688


Page 9

 
SCOTT & NEWMAN LIMITED
REGISTERED NUMBER: 01112043
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 JUNE 2024

The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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

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



R Owen
Director

Date: 26 March 2025

The notes on pages 12 to 20 form part of these financial statements.

Page 10

 
SCOTT & NEWMAN LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 July 2022
550,000
1,912,508
2,462,508


Comprehensive income for the year

Profit for the year
-
574,180
574,180


Contributions by and distributions to owners

Dividends: Equity capital
-
(500,000)
(500,000)



At 1 July 2023
550,000
1,986,688
2,536,688


Comprehensive income for the year

Profit for the year
-
623,495
623,495


Contributions by and distributions to owners

Dividends: Equity capital
-
(200,000)
(200,000)


At 30 June 2024
550,000
2,410,183
2,960,183


The notes on pages 12 to 20 form part of these financial statements.

Page 11

 
SCOTT & NEWMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


General information

Scott & Newman Limited is a private company, limited by shares, incorporated and domiciled in England and Wales with its registered office and principal place of business at Sitka House, Shrewsbury Business Park, Shrewsbury, SY2 6LG.

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.

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 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Scott & Newman Holdings Limited as at 30 June 2024 and these financial statements may be obtained from Companies House.

Page 12

 
SCOTT & NEWMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.4

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:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.5

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 13

 
SCOTT & NEWMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

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.

 
2.8

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 Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

Current and deferred taxation

The tax expense for the year 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 reporting 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 reporting 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 reporting date.

Page 14

 
SCOTT & NEWMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.10

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.

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:

Plant and machinery
-
10-20%
Motor vehicles
-
25%
Fixtures and fittings
-
10-20%

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.

 
2.11

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 first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting 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.

 
2.12

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.

 
2.13

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.

 
2.14

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.

Page 15

 
SCOTT & NEWMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.15

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.

 
2.16

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Employees

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


        2024
        2023
            No.
            No.







Employees
14
14

Page 16

 
SCOTT & NEWMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

4.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 July 2023
51,869
362,223
128,450
542,542


Additions
-
265,728
15,757
281,485


Disposals
-
(164,605)
(9,153)
(173,758)



At 30 June 2024

51,869
463,346
135,054
650,269



Depreciation


At 1 July 2023
35,330
203,644
115,588
354,562


Charge for the year on owned assets
4,828
92,350
5,322
102,500


Disposals
-
(132,803)
(9,153)
(141,956)



At 30 June 2024

40,158
163,191
111,757
315,106



Net book value



At 30 June 2024
11,711
300,155
23,297
335,163



At 30 June 2023
16,539
158,579
12,862
187,980


5.


Stocks

2024
2023
£
£

Raw materials and consumables
5,000
7,569

Work in progress (goods to be sold)
296,427
-

301,427
7,569


Page 17

 
SCOTT & NEWMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

6.


Debtors

2024
2023
£
£


Trade debtors
2,817,168
2,258,525

Amounts owed by group undertakings
-
101,247

Other debtors
147,705
233,283

Prepayments and accrued income
50,406
43,760

3,015,279
2,636,815



7.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,441,503
1,637,137

1,441,503
1,637,137



8.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
1,864,691
1,674,971

Corporation tax
91,684
104,094

Other taxation and social security
24,664
26,115

Obligations under finance lease and hire purchase contracts
3,750
-

Accruals and deferred income
115,561
127,633

2,100,350
1,932,813



9.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Net obligations under finance leases and hire purchase contracts
3,438
-

3,438
-


Page 18

 
SCOTT & NEWMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

10.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
7,188
-

7,188
-


11.


Deferred taxation




2024


£






Charged to profit or loss
(29,401)



At end of year
(29,401)

The deferred taxation balance is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(29,401)
-

(29,401)
-


12.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



550,000 (2023 - 550,000) Ordinary shares of £1.00 each
550,000
550,000


Page 19

 
SCOTT & NEWMAN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

13.


Reserves

Profit and loss account

The profit and loss account represents the cumulative profits of the company since incorporation less any distributions made.


14.


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 £13,206 (2023: £12,914) . Contributions totaling £1,032 (2023: £838) were payable to the fund at the reporting date and are included in creditors.


15.


Related party transactions

The company has taken advantage of the exemption available under FRS 102 not to disclose transactions with other 100% owned group undertakings.
During the year the Company made Sales to Baker Farm Produce Ltd of £90,888 (2023: £18,458). At the year end £1,893 (2023: £1,246) was due from Baker Farm Produce Ltd.
During the year the Company made purchases from Baker Farm Produce Ltd of £1,810 (2023: £20,337). At the year end £Nil (2023: £Nil) was due from Baker Farm Produce Ltd.
Included in debtors is an amount of £Nil (2023: £60,000) was due from DRO Investments Ltd, an entity under common control to that of Scott & Newman Limited.
Included in debtors is an amount of £100,000 (2023: £100,000) due from Baker Farm Produce Ltd. Interest was charged on the loan at 5% and is currently charged at 3% over the Barclays base rate on this balance. Interest charge in the year was £5,657, (2023: £3,499).


16.


Controlling party

The immediate and ultimate parent undertaking is Scott & Newman Holdings Limited, a company registered in England and Wales. Copies of Scott & Newman Holdings Limited accounts can be obtained from companies house.
The company is controlled by R Owen by virtue of his controlling shareholding in Scott & Newman Holdings limited.

 
Page 20