Registered number:
FOR THE YEAR ENDED 30 JUNE 2024
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SCOTT BROS. LIMITED
COMPANY INFORMATION
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SCOTT BROS. LIMITED
CONTENTS
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SCOTT BROS. LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
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.
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.
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.
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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.
The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
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 2006. They 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.
The loss for the year, after taxation, amounted to £249,234 (2023 - profit £262,037).
No dividend has been paid or proposed.
The directors who served during the year were:
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.
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SCOTT BROS. LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
There have been no significant events affecting the company since the year end.
The auditors, Waltons Business Advisers Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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SCOTT BROS. LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCOTT BROS. LIMITED
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 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).
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.
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.
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SCOTT BROS. LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCOTT BROS. LIMITED (CONTINUED)
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.
We have nothing to report in this regard.
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.
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.
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SCOTT BROS. LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCOTT BROS. LIMITED (CONTINUED)
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.
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SCOTT BROS. LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCOTT BROS. LIMITED (CONTINUED)
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 2006. Our 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Maritime House
Harbour Walk
The Marina
Teesside
TS24 0UX
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SCOTT BROS. LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
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SCOTT BROS. LIMITED
REGISTERED NUMBER: 06329873
BALANCE SHEET
AS AT 30 JUNE 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 11 to 26 form part of these financial statements.
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SCOTT BROS. LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
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SCOTT BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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
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:
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.
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.
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SCOTT BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.ACCOUNTING POLICIES (CONTINUED)
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.
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.
Grants of a revenue nature are recognised in the statement of comprehensive income in the same period as the related expenditure.
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SCOTT BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.ACCOUNTING POLICIES (CONTINUED)
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.
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SCOTT BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.ACCOUNTING POLICIES (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:
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.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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SCOTT BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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.
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SCOTT BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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SCOTT BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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SCOTT BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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SCOTT BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
10.TAXATION (CONTINUED)
There were no factors that may affect future tax charges.
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SCOTT BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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SCOTT BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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SCOTT BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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SCOTT BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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SCOTT BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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.
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SCOTT BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Profit and loss account
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.
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).
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SCOTT BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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.
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