IRIS Accounts Production v25.1.0.734 SC347498 Board of Directors 1.5.23 30.4.24 30.4.24 Medium entities civil engineering and demolition services. true false true true false false false true false These accounts have been prepared in accordance with the provisions applicable to companies subject to the medium-sized companies regime. 'A' Ordinary 1.00000 'B' Ordinary 1.00000 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REGISTERED NUMBER: SC347498 (Scotland)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2024

FOR

DAVID SMITH CONTRACTORS LTD.

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Independent Auditors' Report 6

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 17


DAVID SMITH CONTRACTORS LTD.

COMPANY INFORMATION
FOR THE YEAR ENDED 30 APRIL 2024







DIRECTORS: D A Smith
S P Gilmartin
G Steele



SECRETARY: Mrs R M Smith



REGISTERED OFFICE: Cairnmuir
Memsie
Fraesrburgh
Aberdeenshire
AB43 7AR



REGISTERED NUMBER: SC347498 (Scotland)



SENIOR STATUTORY AUDITOR: Susan M Hepburn CA ATT



AUDITORS: Leiper & Summers
Statutory Auditors
4 Charlotte Street
Fraserburgh
Aberdeenshire
AB43 9JE

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024

The directors present their strategic report for the year ended 30 April 2024.

The company's principal activities are that of civil engineering and demolition services provided throughout the North, Northeast & Westcoast of Scotland. There have been no significant changes in the company's principal activities during the year under review and the directors are not aware at the date of this report, of any planned strategy changes to the company's main principal activities in the next year going forward.

REVIEW OF BUSINESS
The company's projects are primarily within the Northeast/Westcoast of Scotland location which has enabled us to make efficient use of Company resources. The Management, Supervision and labour is experienced and well managed and can be readily transferred to other developments depending on programme requirements and logistics.

Our Plant is well maintained and is continually replaced to ensure that the business is utilising efficient state of the art machinery to perform tasks. As with labour the plant can be transferred depending on programme requirements as we have all the necessary needs in house. Also, the use of in house quarry products and inert tipping facilities enables us to be very competitive and reduce direct costs where needed.

Repeat business has been generated because of both our on-site delivery teams and head office staff working together to offer a level of service second to none, nurturing a good working relationship with our clients.

New clients have been established with our proactive approach to tendering and sourcing opportunities available within the marketplace. Our experience, work ethos and reputation to maintain good working relationships and deliver the project requirements have been key to our business model.

Close relationships with key suppliers have also generated opportunities to be more competitive within the marketplace.

The company's objectives are to continue delivering projects to our customers on time and within budget whilst providing exemplary client service and quality of works. The market confidence is still there but challenging global economic conditions resulting in significantly higher material prices and inflation is affecting development budgets and we are working more closely with our customers to assist and get developments started.

The directors continue to assess the fleet of plant and equipment to ensure it's maintained to a high standard and carry out a program of reinvestment throughout the year.

We are also investing in additional resources for key individuals within the management team for future succession and investment in apprenticeship schemes to recruit individuals into the workplace.

We continue to deliver our projects on time and as efficiently as the design dictates. Where practical we also offer value engineering options to our clients which can generate savings both on programme and commercially. The motive and reward for this service is to ascertain further confidence in our service and build on working relationships, which potentially can lead to additional future projects through negotiation and reputation.

In looking ahead, we have been actively tendering with new and existing clients through the course of the year which has shown positive results going forward, where we have secured significant awards.

The trading performance of the company for the year to 30 April 2024 can be seen on the Income Statement on page 9. The company's sales have seen an increase of 59% against 2023. Overall net profitability has increased compared to 2023.

The cash generated from trading along with existing cash reserves has enabled the company to reinvest in plant and machinery and this can be seen within the notes to the accounts. Cash flow movements can be seen on the Cash Flow Statement on page 14.

The business remains profitable and the company continues to retain a healthy Balance Sheet as seen on page 11.


DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024

PRINCIPAL RISKS AND UNCERTAINTIES
The company has various competitors in the geographic area in which we operate and there is the continuing risk of losing sales/margin due to competitive pressure and downturn in market confidence due to economic pressures outwith our control. The company manages the risk by providing value added services and operating with a proactive and dynamic approach, both on site and within head office. The company has continued to build a reputation of being able to deliver projects on time and on budget.

ON BEHALF OF THE BOARD:





D A Smith - Director


24 April 2025

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 APRIL 2024

The directors present their report with the financial statements of the company for the year ended 30 April 2024.

DIVIDENDS
The total distribution of dividends for the year ended 30 April 2024 will be £2,100,000.

FUTURE DEVELOPMENTS
The directors continue to assess the fleet of plant and machinery for maintenance and renewal, tendering opportunities and review the requirements for future capital investment.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 May 2023 to the date of this report.

D A Smith
S P Gilmartin

Other changes in directors holding office are as follows:

G Steele - appointed 29 June 2023

DONATIONS
The company made charitable donations during the year of £6,000 (2023 - £nil).

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 and then apply them consistently;
-make judgements 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 APRIL 2024


AUDITORS
The auditors, Leiper & Summers, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





D A Smith - Director


24 April 2025

INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF
DAVID SMITH CONTRACTORS LTD.

Opinion
We have audited the financial statements of David Smith Contractors Ltd. (the 'company') for the year ended 30 April 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 April 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Auditors' Report thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF
DAVID SMITH CONTRACTORS LTD.


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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page four, 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

-Enquiry of management, those charged with governance around actual and potential litigation and claims.
-Reviewing minutes of meetings of those charged with governance.
-Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
-Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

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.

INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF
DAVID SMITH CONTRACTORS LTD.


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




Susan M Hepburn CA ATT (Senior Statutory Auditor)
for and on behalf of Leiper & Summers
Statutory Auditors
4 Charlotte Street
Fraserburgh
Aberdeenshire
AB43 9JE

24 April 2025

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

INCOME STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024

2024 2023
Notes £    £   

TURNOVER 3 22,958,966 14,453,483

Cost of sales 12,393,215 9,633,148
GROSS PROFIT 10,565,751 4,820,335

Administrative expenses 4,326,023 3,699,767
OPERATING PROFIT 5 6,239,728 1,120,568

Interest receivable and similar income 23,411 600
6,263,139 1,121,168

Interest payable and similar expenses 6 74,840 49,877
PROFIT BEFORE TAXATION 6,188,299 1,071,291

Tax on profit 7 1,547,550 118,744
PROFIT FOR THE FINANCIAL YEAR 4,640,749 952,547

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 4,640,749 952,547


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

4,640,749

952,547

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

BALANCE SHEET
30 APRIL 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 6,477,982 4,530,352
6,477,982 4,530,352

CURRENT ASSETS
Debtors 11 3,775,795 4,235,023
Cash at bank and in hand 3,773,417 1,274,938
7,549,212 5,509,961
CREDITORS
Amounts falling due within one year 12 3,686,013 2,921,052
NET CURRENT ASSETS 3,863,199 2,588,909
TOTAL ASSETS LESS CURRENT
LIABILITIES

10,341,181

7,119,261

CREDITORS
Amounts falling due after more than one
year

13

(576,927

)

(766,381

)

PROVISIONS FOR LIABILITIES 17 (1,229,232 ) (358,607 )
NET ASSETS 8,535,022 5,994,273

CAPITAL AND RESERVES
Called up share capital 18 102 102
Retained earnings 19 8,534,920 5,994,171
SHAREHOLDERS' FUNDS 8,535,022 5,994,273

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

BALANCE SHEET - continued
30 APRIL 2024



The financial statements were approved by the Board of Directors and authorised for issue on 24 April 2025 and were signed on its behalf by:





D A Smith - Director


DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

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

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 May 2022 102 5,541,624 5,541,726

Changes in equity
Dividends - (500,000 ) (500,000 )
Total comprehensive income - 952,547 952,547
Balance at 30 April 2023 102 5,994,171 5,994,273

Changes in equity
Dividends - (2,100,000 ) (2,100,000 )
Total comprehensive income - 4,640,749 4,640,749
Balance at 30 April 2024 102 8,534,920 8,535,022

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 8,162,062 1,894,189
Interest paid (19,034 ) (33,863 )
Interest element of hire purchase payments
paid

(55,806

)

(16,014

)
Tax paid (187,439 ) (200,000 )
Net cash from operating activities 7,899,783 1,644,312

Cash flows from investing activities
Purchase of tangible fixed assets (2,413,628 ) (1,804,401 )
Sale of tangible fixed assets 115,501 94,000
Interest received 23,411 600
Net cash from investing activities (2,274,716 ) (1,709,801 )

Cash flows from financing activities
Loan repayments in year (583,332 ) (250,000 )
Capital repayments in year (443,256 ) (215,284 )
Equity dividends paid (2,100,000 ) (500,000 )
Net cash from financing activities (3,126,588 ) (965,284 )

Increase/(decrease) in cash and cash equivalents 2,498,479 (1,030,773 )
Cash and cash equivalents at beginning of
year

2

1,274,938

2,305,711

Cash and cash equivalents at end of year 2 3,773,417 1,274,938

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2024 2023
£    £   
Profit before taxation 6,188,299 1,071,291
Depreciation charges 1,207,728 844,238
(Profit)/loss on disposal of fixed assets (53,193 ) 85,123
Finance costs 74,840 49,877
Finance income (23,411 ) (600 )
7,394,263 2,049,929
Decrease/(increase) in trade and other debtors 459,228 (77,670 )
Increase/(decrease) in trade and other creditors 308,571 (78,070 )
Cash generated from operations 8,162,062 1,894,189

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 April 2024
30.4.24 1.5.23
£    £   
Cash and cash equivalents 3,773,417 1,274,938
Year ended 30 April 2023
30.4.23 1.5.22
£    £   
Cash and cash equivalents 1,274,938 2,305,711


DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024

3. ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

Other
non-cash
At 1.5.23 Cash flow changes At 30.4.24
£    £    £    £   
Net cash
Cash at bank
and in hand 1,274,938 2,498,479 3,773,417
1,274,938 2,498,479 3,773,417
Debt
Finance leases (745,965 ) 443,256 - (1,106,748 )
Debts falling due
within 1 year (250,000 ) 250,000 - -
Debts falling due
after 1 year (333,333 ) 333,333 - -
(1,329,298 ) 1,026,589 - (1,106,748 )
Total (54,360 ) 3,525,068 - 2,666,669

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

1. STATUTORY INFORMATION

David Smith Contractors Ltd. is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

Significant judgements and estimates
In the application of the company's accounting policies, directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Useful lives and deprecation of fixed assets
Depreciation rates are based on the estimated useful lives of assets, which is judgement exercised by management taking into account actual experience.

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

In respect of construction contracts, where the substance of a contract is that the contractual obligations are performed over time, revenue is recognised by reference to the stage of completion of contract activity at the balance sheet date. This is normally measured by surveys of work performed to date. Where it is probable that the total costs of a contract will exceed the total contract revenue, the expected loss is recognised as an expense in the income statement as soon as it is forseen.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are stated at cost less depreciation. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold property - 2% straight line
Plant and machinery - 20% on reducing balance
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance
Office equipment - 25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit and loss account.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

2. ACCOUNTING POLICIES - continued

Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

2. ACCOUNTING POLICIES - continued

Impairment of fixed assets
At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.


DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

2. ACCOUNTING POLICIES - continued
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

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

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

Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
£    £   
Civil contracts and demolition 22,958,966 14,453,483
22,958,966 14,453,483

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

3. TURNOVER - continued

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 22,958,966 14,453,483
22,958,966 14,453,483

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 4,180,292 3,674,498
Social security costs 459,770 423,607
Other pension costs 335,028 177,380
4,975,090 4,275,485

The average number of employees during the year was as follows:
2024 2023

Directors 3 2
Direct Labour 76 67
Administration 9 10
88 79

2024 2023
£    £   
Directors' remuneration 121,248 22,430
Directors' pension contributions to money purchase schemes 229,527 80,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 2

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Hire of plant and machinery 952,350 643,320
Depreciation - owned assets 769,650 648,475
Depreciation - assets on hire purchase contracts 438,079 195,763
(Profit)/loss on disposal of fixed assets (53,193 ) 85,123
Auditors' remuneration 14,900 14,800

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank loan interest 19,034 33,863
Hire purchase 55,806 16,014
74,840 49,877

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 676,925 -

Deferred tax 870,625 118,744
Tax on profit 1,547,550 118,744

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 6,188,299 1,071,291
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

1,547,075

203,545

Effects of:
Expenses not deductible for tax purposes 185 16,236
Income not taxable for tax purposes (13,298 ) -
Capital allowances in excess of depreciation (491,808 ) (497,355 )
Utilisation of tax losses (365,229 ) -
Deferred tax movement 870,625 118,744
Losses carried forward - 277,574
Total tax charge 1,547,550 118,744

8. DIVIDENDS
2024 2023
£    £   
'B' Ordinary shares of £1 each
Interim 2,100,000 500,000

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

9. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 May 2023
and 30 April 2024 308,000
AMORTISATION
At 1 May 2023
and 30 April 2024 308,000
NET BOOK VALUE
At 30 April 2024 -
At 30 April 2023 -

10. TANGIBLE FIXED ASSETS
Assets
Freehold under Plant and
property construction machinery
£    £    £   
COST
At 1 May 2023 - - 8,486,872
Additions 220,000 94,379 2,598,284
Disposals - - (364,899 )
At 30 April 2024 220,000 94,379 10,720,257
DEPRECIATION
At 1 May 2023 - - 4,519,013
Charge for year - - 1,048,990
Eliminated on disposal - - (306,755 )
At 30 April 2024 - - 5,261,248
NET BOOK VALUE
At 30 April 2024 220,000 94,379 5,459,009
At 30 April 2023 - - 3,967,859

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

10. TANGIBLE FIXED ASSETS - continued

Motor Office
vehicles equipment Totals
£    £    £   
COST
At 1 May 2023 1,194,841 40,900 9,722,613
Additions 295,922 9,082 3,217,667
Disposals (74,964 ) - (439,863 )
At 30 April 2024 1,415,799 49,982 12,500,417
DEPRECIATION
At 1 May 2023 652,016 21,232 5,192,261
Charge for year 152,985 5,754 1,207,729
Eliminated on disposal (70,800 ) - (377,555 )
At 30 April 2024 734,201 26,986 6,022,435
NET BOOK VALUE
At 30 April 2024 681,598 22,996 6,477,982
At 30 April 2023 542,825 19,668 4,530,352

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and
machinery
£   
COST
At 1 May 2023 2,123,992
Additions 1,662,259
Transfer to ownership (641,997 )
At 30 April 2024 3,144,254
DEPRECIATION
At 1 May 2023 460,737
Charge for year 438,079
Transfer to ownership (296,557 )
At 30 April 2024 602,259
NET BOOK VALUE
At 30 April 2024 2,541,995
At 30 April 2023 1,663,255

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,366,478 1,453,480
Amounts recoverable on contract 1,335,530 1,756,225
Other debtors 59,841 44,370
Due from associated companies 723,412 635,523
VAT 256,953 284,650
Prepayments 33,581 60,775
3,775,795 4,235,023

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 14) - 250,000
Hire purchase contracts (see note 15) 529,821 312,917
Trade creditors 1,762,956 1,675,698
Tax 676,925 187,439
Social security and other taxes 110,427 138,872
Other creditors 227,659 7,444
Directors' current accounts 1,046 1,046
Accrued expenses 377,179 347,636
3,686,013 2,921,052

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans (see note 14) - 333,333
Hire purchase contracts (see note 15) 576,927 433,048
576,927 766,381

14. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans - 250,000

Amounts falling due between two and five years:
Bank loans - 2-5 years - 333,333

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

15. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2024 2023
£    £   
Gross obligations repayable:
Within one year 569,328 342,548
Between one and five years 616,638 478,988
1,185,966 821,536

Finance charges repayable:
Within one year 39,507 29,631
Between one and five years 39,711 45,940
79,218 75,571

Net obligations repayable:
Within one year 529,821 312,917
Between one and five years 576,927 433,048
1,106,748 745,965

16. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans - 583,333
Hire purchase contracts 1,106,748 745,965
1,106,748 1,329,298

Hire purchase contracts are secured against the relevant assets.

The bank loan is secured by bond and floating charge over the assets of the company.

17. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 1,229,232 358,607

Deferred
tax
£   
Balance at 1 May 2023 358,607
Provided during year 870,625
Balance at 30 April 2024 1,229,232

DAVID SMITH CONTRACTORS LTD. (REGISTERED NUMBER: SC347498)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
100 'A' Ordinary £1 100 100
2 'B' Ordinary £1 2 2
102 102

19. RESERVES
Retained
earnings
£   

At 1 May 2023 5,994,171
Profit for the year 4,640,749
Dividends (2,100,000 )
At 30 April 2024 8,534,920

20. PENSION COMMITMENTS

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the balance sheet date, unpaid contributions of £3,002 (2023 - £2,482) were due to the fund and are included within Other creditors. The charge to the Income Statement in respect of defined contribution schemes was £335,028 (2023 - £177,380).

21. CAPITAL COMMITMENTS
2024 2023
£    £   
Contracted but not provided for in the
financial statements - 558,347

22. RELATED PARTY DISCLOSURES

Included within creditors are amounts due to the company directors. As at 30 April 2024, the company was due the directors £1,046 (2023 - £1,046). These loans are interest free with no set repayment terms.

During the year purchases of £1,908,577 (2023 - £1,826,283) were made from other related party companies. At the balance sheet date amounts payable to other related parties totalled £391,958 (2023 - £560,430) and amounts receivable from other related parties totalled £727,398 (2023 - £608,878).

During the year the company paid dividends of £2,100,000 (2023 - £500,000) to other related party companies.

23. ULTIMATE CONTROLLING PARTY

The controlling party is D A Smith.