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Registered number: 06329873










SCOTT BROS. LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

 
SCOTT BROS. LIMITED
 
 
COMPANY INFORMATION


DIRECTORS
R J Borthwick 
I W Fraser 
P G Scott 




COMPANY SECRETARY
Jacksons Company Secretarial Limited



REGISTERED NUMBER
06329873



REGISTERED OFFICE
Scott Business Park
Haverton Hill Road

Billingham

TS23 1PY




INDEPENDENT AUDITORS
Waltons Business Advisers Limited
Chartered Accountants & Statutory Auditors

Maritime House

Harbour Walk

The Marina

Hartlepool

Teesside

TS24 0UX




SOLICITORS
Jacksons Law
17 Falcon Court

Preston Farm Industrial Estate

Stockton on Tees

TS18 3TU





 
SCOTT BROS. LIMITED
 

CONTENTS



Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 26


 
SCOTT BROS. LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

BUSINESS REVIEW
 
The results for the period and financial position of the company are as show in the annexed financial statements.  The company has made a pre-tax profit of £217,185 (2023: £209,028) and had net assets of £2,301,387 (2023: £2,550,621).
The company continues to do well, despite the economic challenges faced in the year, specifically high interest rates.
Turnover decreased by 10%, trading margin has increased slightly and the company continues to trade profitably.  The directors expect this improvement to be maintained throughout the remainder of the current financial year.  In light of these factors, the directors consider the results for the year and the financial position at the end of the year to be satisfactory.
The company has successfully repaid £1m loan in the year and is currently working on another capital project which began in this finance year part and was mainly funded by group company money, mainly Scott Bros. Holdings Limited, the holding company.
As discussed in note 2.4, whilst the company has a balance sheet value of £2,301,387, it has a net current liability position of £4,827,351
 (2023: £3,637,379) at the year end.
The financial statements have been prepared on a going concern basis. The basis assumes the continuing support of the group companies, including the ability to repay bank borrowings. The directors have received confirmation of such support from Scott Bros. Holdings Limited.

PRINCIPAL RISKS AND UNCERTAINTIES
 
Because of the inherent risks in the construction industry caused by economic cycles, the company is part of a larger group, the activities of which complement each other. The company also enjoys the support of its holding company, Scott Bros. Holdings Limited.
The company maintains adequate insurances to protect its assets and mitigate against liabilities.
The company and group have significant assets that support the business. 

FINANCIAL KEY PERFORMANCE INDICATORS
 
The directors monitor the company's performance by monthly management accounts. The Key Performance Indicators are turnover, gross margin, profit before tax, debtor days and cash flow. 


This report was approved by the board on 17 March 2025 and signed on its behalf.



R J Borthwick
Director

Page 1

 
SCOTT BROS. 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.

RESULTS AND DIVIDENDS

The loss for the year, after taxation, amounted to £249,234 (2023 - profit £262,037).

No dividend has been paid or proposed.

DIRECTORS

The directors who served during the year were:

R J Borthwick 
I W Fraser 
P G Scott 

FUTURE DEVELOPMENTS

The company is focused on the growth of its principal activities and continually explores new opportunities in respect of new customers, new products and services and new markets.  It continues to look for opportunities to increase its market share in the construction and recycling sectors.

Page 2

 
SCOTT BROS. LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

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 auditorsWaltons Business Advisers Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 17 March 2025 and signed on its behalf.
 





R J Borthwick
Director

Page 3

 
SCOTT BROS. LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCOTT BROS. LIMITED
 

UNQUALIFIED OPINION


We have audited the financial statements of Scott Bros. Limited (the 'company') for the year ended 30 June 2024, 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 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 BROS. LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCOTT BROS. LIMITED (CONTINUED)


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.


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.


Page 5

 
SCOTT BROS. LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCOTT BROS. 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:

We gained an understanding of the legal and regulatory framework applicable to the company and the area in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals, review of provisions and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
We identified the greatest potential for fraud in the following areas: existence and timing of recognition of income and the posting of unusual journals. We discussed these risks with management and designed audit procedures to test the timing and existence of revenue. We reviewed journals posted during the year and around the year end and around the year to look for potential “window dressing”. 


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.


Page 6

 
SCOTT BROS. LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCOTT BROS. LIMITED (CONTINUED)


USE OF OUR REPORT
 

This report is made solely to the company's directors, 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 directors 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 directors, as a body, for our audit work, for this report, or for the opinions we have formed.





Paul Harrison MSc, BSc, FCA (senior statutory auditor)
  
for and on behalf of
Waltons Business Advisers Limited
 
Chartered Accountants
Statutory Auditors
  
Maritime House
Harbour Walk
The Marina
Hartlepool
Teesside
TS24 0UX

21 March 2025
Page 7

 
SCOTT BROS. LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
Note
£
£

  

Turnover
 4 
9,228,118
10,249,091

Cost of sales
  
(6,558,635)
(7,388,404)

GROSS PROFIT
  
2,669,483
2,860,687

Administrative expenses
  
(2,567,498)
(2,710,409)

Other operating income
 5 
362,501
264,384

OPERATING PROFIT
 6 
464,486
414,662

Interest payable and similar expenses
 9 
(247,301)
(205,634)

PROFIT BEFORE TAX
  
217,185
209,028

Tax on profit
 10 
(466,419)
53,009

(LOSS)/PROFIT FOR THE FINANCIAL YEAR
  
(249,234)
262,037

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 11 to 26 form part of these financial statements.

Page 8

 
SCOTT BROS. LIMITED
REGISTERED NUMBER: 06329873

BALANCE SHEET
AS AT 30 JUNE 2024

2024
2023
Note
£
£

FIXED ASSETS
  

Tangible fixed assets
 12 
8,623,709
9,109,793

  
8,623,709
9,109,793

CURRENT ASSETS
  

Stocks
 13 
3,535,660
2,807,098

Debtors: amounts falling due within one year
 14 
2,417,151
2,661,307

Cash at bank and in hand
 15 
73,990
227,478

  
6,026,801
5,695,883

Creditors: amounts falling due within one year
 16 
(10,854,152)
(9,333,262)

NET CURRENT LIABILITIES
  
 
 
(4,827,351)
 
 
(3,637,379)

TOTAL ASSETS LESS CURRENT LIABILITIES
  
3,796,358
5,472,414

Creditors: amounts falling due after more than one year
 17 
(877,495)
(2,770,736)

PROVISIONS FOR LIABILITIES
  

Deferred tax
 21 
(587,360)
(120,941)

Provisions
 22 
(30,116)
(30,116)

  
 
 
(617,476)
 
 
(151,057)

NET ASSETS
  
2,301,387
2,550,621


CAPITAL AND RESERVES
  

Called up share capital 
 23 
100,000
100,000

Profit and loss account
 24 
2,201,387
2,450,621

  
2,301,387
2,550,621


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 March 2025.




R J Borthwick
Director

The notes on pages 11 to 26 form part of these financial statements.

Page 9

 
SCOTT BROS. 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 2023
100,000
2,450,621
2,550,621



Loss for the year
-
(249,234)
(249,234)


AT 30 JUNE 2024
100,000
2,201,387
2,301,387



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2022
100,000
2,188,584
2,288,584



Profit for the year
-
262,037
262,037


AT 30 JUNE 2023
100,000
2,450,621
2,550,621


The notes on pages 11 to 26 form part of these financial statements.

Page 10

 
SCOTT BROS. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


GENERAL INFORMATION

Scott Bros. Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. 
The presentation currency of the financial statements is the Pound Sterling (£).
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years unless otherwise stated. 

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 33 Related Party Disclosures paragraph 33.7.

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

  
2.3

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 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.

Page 11

 
SCOTT BROS. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.ACCOUNTING POLICIES (CONTINUED)

 
2.4

Going concern

The company embarked on a large capital project in the 2022 year, incurring in excess of £6 million in capital spend across 2022 and 2023, and a further £722k in the current year. Part of this has been funded by bank borrowings and part by funds provided by group companies, mainly Scott Bros Holdings Limited, the holding company. 
The above project and method of funding has given rise to the company's net current liability position of £4,827,351 
(2023: £3,637,379) at the year end.
The financial statements have been prepared on a going concern basis. This basis assumes the continuing support of the group companies, including the ability to repay bank borrowings. The directors have received confirmation of such support from Scott Bros Holdings Limited.

 
2.5

Revenue

Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. 

  
2.6

Goodwill

Goodwill, the amount paid in connection with the acquisition of two businesses in the year ended 31 March 2010, was being amortised evenly over its estimated life of five years. 

 
2.7

Hire purchase and leasing commitments

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

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.

Page 12

 
SCOTT BROS. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.ACCOUNTING POLICIES (CONTINUED)

 
2.9

Pensions

The company contributes to 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.

 
2.10

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 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.


 
2.11

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 13

 
SCOTT BROS. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.ACCOUNTING POLICIES (CONTINUED)


2.11
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
-
4% on cost.
Long-term leasehold property
-
over life of leases.
Plant and machinery
-
20% on cost and 25% on cost.
Motor vehicles
-
25% on cost.
Office equipment
-
25% on cost.

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.

 
2.12

Stocks

Stocks, including land for resale, are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. The cost of consumables comprises purchase cost. The cost of finished goods comprises labour and other direct costs plus attributable overheads based on a normal level of activity.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment.

 
2.14

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. 

 
2.15

Creditors

Short-term creditors are measured at the transaction price.

 
2.16

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.

Page 14

 
SCOTT BROS. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

3.



JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, which are described above, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Provision is made for the anticipated accrued cost of site restoration for sites that have been used by the company to handle inert waste materials. The company is committed to restore specific sites to a state that will allow for future commercial use once the company ceases operations. 
The provision is accrued over the anticipated useful life of the site in proportion to the volumes of material brought to the site and is adjusted for the amount of work that is carried out on site restoration. The year end value of this provision is £30,116 (
2023: £30,116).
Finished goods is calculated using the cost input multiplied by the machine hours required to produce the product. The cost input is determined by what the directors believe is market value rate for the machinery which is used in the production of the finished goods. The year end value of these goods is £3,511,464.


4.


TURNOVER

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


2024
2023
£
£

Haulage services
3,569,870
5,168,396

Remediation services
2,049,629
1,144,352

Plant hire services
3,322,665
3,873,449

Other services
61,984
62,894

Vehicle respraying
223,970
-

9,228,118
10,249,091


All turnover arose within the United Kingdom.

Page 15

 
SCOTT BROS. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

5.


OTHER OPERATING INCOME

2024
2023
£
£

Net rents receivable
185,501
190,634

Government grants receivable
177,000
73,750

362,501
264,384



6.


OPERATING PROFIT

The operating profit is stated after charging:

2024
2023
£
£

Depreciation - owned assets
472,033
587,970

Depreciation - assets on HP contracts
629,333
426,531

Loss/(profit) on disposal of fixed assets
2,854
3,309

Other operating lease rentals
120,000
120,000


7.


AUDITORS' REMUNERATION

During the year, the company obtained the following services from the company's auditors:


2024
2023
£
£

Fees payable to the company's auditors for the audit of the company's financial statements
7,875
7,500

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 16

 
SCOTT BROS. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

8.


EMPLOYEES

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
2,928,898
3,238,914

Social security costs
298,933
339,896

Cost of defined contribution scheme
63,247
63,475

3,291,078
3,642,285


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


        2024
        2023
            No.
            No.







Operations
72
72



Management and support
6
4

78
76


9.


INTEREST PAYABLE AND SIMILAR EXPENSES

2024
2023
£
£


Bank interest payable
157,195
136,094

Finance leases and hire purchase contracts
90,106
69,540

247,301
205,634

Page 17

 
SCOTT BROS. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

10.


TAXATION


2024
2023
£
£



Total current tax
-
-

Deferred tax


Charged to profit and loss
466,419
(53,009)

Total deferred tax
466,419
(53,009)


Tax on profit
466,419
(53,009)

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 20.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
217,185
209,028


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20.5%)
54,296
42,842

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
18,655
11,307

Capital allowances for year in excess of depreciation
89,229
(309,379)

Utilisation of tax losses
(160,722)
255,041

Deferred tax charged to profit and loss
466,419
(53,009)

Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax
(1,458)
189

Total tax charge for the year
466,419
(53,009)

Page 18

 
SCOTT BROS. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
 
10.TAXATION (CONTINUED)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


INTANGIBLE ASSETS




Goodwill

£



Cost


At 1 July 2023
104,998



At 30 June 2024

104,998



Amortisation


At 1 July 2023
104,998



At 30 June 2024

104,998



Net book value



At 30 June 2024
-



At 30 June 2023
-



Page 19

 
SCOTT BROS. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024


12.


TANGIBLE FIXED ASSETS






Freehold property
Long-term leasehold property
Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£
£
£



Cost


At 1 July 2023
2,776,946
32,483
8,167,917
3,853,240
370,977
15,201,563


Additions
18,060
-
561,445
-
44,417
623,922


Disposals
-
-
-
(86,400)
-
(86,400)



At 30 June 2024

2,795,006
32,483
8,729,362
3,766,840
415,394
15,739,085



Depreciation


At 1 July 2023
73,062
9,947
3,073,703
2,598,100
336,958
6,091,770


Charge for the year on owned assets
107,154
-
224,616
118,089
22,174
472,033


Charge for the year on financed assets
-
-
406,053
223,280
-
629,333


Disposals
-
-
-
(77,760)
-
(77,760)



At 30 June 2024

180,216
9,947
3,704,372
2,861,709
359,132
7,115,376



Net book value



At 30 June 2024
2,614,790
22,536
5,024,990
905,131
56,262
8,623,709



At 30 June 2023
2,703,884
22,536
5,094,214
1,255,140
34,019
9,109,793

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Plant and machinery
1,012,469
1,178,486

Motor vehicles
403,023
626,303

1,415,492
1,804,789

Page 20

 
SCOTT BROS. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

13.


STOCKS

2024
2023
£
£

Consumables
24,196
30,860

Finished goods
3,511,464
2,776,238

3,535,660
2,807,098



14.


DEBTORS

2024
2023
£
£


Trade debtors
1,808,133
2,000,403

Amounts owed by group undertakings
9,112
219,405

Other debtors
61,815
48,679

Prepayments and accrued income
517,752
372,481

Corporation tax repayable
20,339
20,339

2,417,151
2,661,307



15.


CASH AND CASH EQUIVALENTS

2024
2023
£
£

Cash at bank and in hand
73,990
227,478

73,990
227,478


Page 21

 
SCOTT BROS. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

16.


CREDITORS: Amounts falling due within one year

2024
2023
£
£

Bank loans
1,331,727
979,560

Trade creditors
1,046,788
781,949

Amounts owed to group undertakings
7,245,018
6,060,076

Other taxation and social security
277,302
307,352

Obligations under finance lease and hire purchase contracts
540,297
615,740

Other creditors
18,342
74,016

Accruals and deferred income
394,678
514,569

10,854,152
9,333,262



17.


CREDITORS: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
-
1,331,727

Net obligations under finance leases and hire purchase contracts
597,245
981,759

Accruals and deferred income
280,250
457,250

877,495
2,770,736


The company has bank facilities (including hire purchase contracts) which are secured by a debenture, including a fixed and floating charge over the assets of the company. It also has other hire purchase contracts which are secured on the assets to which they relate.
The bank loans are secured by a charge over property held within the group.

Page 22

 
SCOTT BROS. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

18.


LOANS


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
1,331,727
979,560

Amounts falling due 1-2 years

Bank loans
-
1,331,727


1,331,727
2,311,287



19.


HIRE PURCHASE AND FINANCE LEASES


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
540,297
615,740

Between 1-5 years
597,245
981,759

1,137,542
1,597,499

Page 23

 
SCOTT BROS. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

20.


FINANCIAL INSTRUMENTS

2024
2023
£
£

Financial assets


Financial assets measured at fair value through profit or loss
73,990
227,478

Financial assets that are debt instruments measured at amortised cost
1,879,060
2,268,487

1,953,050
2,495,965


Financial liabilities


Financial liabilities measured at amortised cost
(10,744,214)
(12,103,998)


Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.

Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by group undertakings and other debtors.
Financial liabilities measured at amortised cost comprise bank loans, trade creditors, accruals,  amounts owed to group undertakings, obligations under finance lease and hire purchase contracts, and other creditors.


21.


DEFERRED TAXATION




2024


£






At beginning of year
(120,941)


Charged to profit or loss
(466,419)



At end of year
(587,360)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
1,351,020
1,427,392

Tax losses carried forward
(761,042)
(1,302,374)

Pension surplus
(2,618)
(4,077)

587,360
120,941

Page 24

 
SCOTT BROS. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

22.


PROVISIONS




Site closure costs

£





At 1 July 2023
30,116



At 30 June 2024
30,116


23.


SHARE CAPITAL

2024
2023
£
£
Allotted, called up and fully paid



100,000 (2023 - 100,000) Ordinary shares of £1 each
100,000
100,000



24.


RESERVES

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.


25.


CONTINGENT LIABILITIES

The company is under enquiry by HM Revenue and Customs in respect of the operation of landfill tax in relation to a site where it provided remediation services for a landowner of an old landfill site. HM Revenue and Customs are contending that, without holding a permit from the Environment Agency, the company's operations related to the disposal of waste on which landfill tax has not been paid and it has raised assessments totalling £573,874 plus interest which the company has appealed. The company maintains that it was providing a service to the landowner to remedy the defective landfill capping and has used British Standard Certified materials to cap the affected areas. Having taken legal advice, the company will take the matter to tribunal, if necessary, to defend its position.


26.


PENSION COMMITMENTS

The company contributes to a defined contribution pension scheme. Contributions are charged to the profit and loss account as they fall due. The charge for the year was £63,247 (2023: £63,475). The creditor outstanding at 30 June 2024 was £10,473 (2023: £16,307). 


27.


COMMITMENTS UNDER OPERATING LEASES

The company had no commitments under non-cancellable operating leases at the balance sheet date.

Page 25

 
SCOTT BROS. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

28.


RELATED PARTY TRANSACTIONS

During the year, the company had sales of £85,511 to a company in which a director holds an interest. 


29.


CONTROLLING PARTY

The company continues to be under the control of Mr D Scott by virtue of his 74% shareholding in the immediate and ultimate parent company, Scott Bros. Holdings Limited. These financial statements are included in the consolidated financial statements of Scott Bros. Holdings Limited. The parent's registered office address is the same as Scott Bros. Limited, detailed on the Company Information page.

 
Page 26