Company registration number SC009798 (Scotland)
VEITCHI (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 NOVEMBER 2024
30 November 2024
VEITCHI (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
J O Brown
C J Kennedy
J Stewart
(Appointed 1 September 2024)
Secretary
K L Bartleman
Company number
SC009798
Registered office
8 Cambuslang Way
Gateway Glasgow
Glasgow
G32 8ND
Auditor
MHA
6 St Colme Street
Edinburgh
EH3 6AD
VEITCHI (HOLDINGS) LIMITED
CONTENTS
Page
Notice of meeting
1
Chairman's statement
2 - 3
Strategic report
4 - 6
Directors' report
7 - 8
Independent auditor's report
9 - 11
Group profit and loss account
12
Group statement of comprehensive income
13
Group balance sheet
14
Company balance sheet
15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
18
Notes to the financial statements
19 - 37
VEITCHI (HOLDINGS) LIMITED
NOTICE OF MEETING
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 1 -
Notice is hereby given that the one hundred and eighth annual general meeting of VEITCHI (HOLDINGS) LIMITED will be held at the registered office of the company, 8 Cambuslang Way, Gateway Glasgow, Glasgow, G32 8ND on 25 April 2025 at 11a.m. for the following purposes:
Ordinary Business
1. To receive and adopt the annual report and the audited accounts for the year ended 30 November 2024.
2. To approve a dividend.
3. To re-appoint the auditor and to authorise the directors to fix their remuneration.
By Order of the Board
K L Bartleman
Secretary
28 March 2025
A member of the company entitled to attend and vote at the above meeting may appoint one or more proxies to attend and, on a poll, vote on his behalf. A proxy need not be a member. The instrument appointing a proxy and, if applicable the authority under which it is signed, must be deposited at the Registered Office of the company not less than 48 hours before the time appointed for holding the meeting.
VEITCHI (HOLDINGS) LIMITED
CHAIRMAN'S STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 2 -
Results
In consideration of the marketplace, I am pleased to report that the group sales for the year amounted to £37.4 million (2023: £41.9 million). The group's pre-tax profits are £2.163 million (2023: £1.870 million).
Dividend
The directors recommend that a dividend of 350p per share (2023: 325p) be paid. If approved, the dividend will be paid on 25th April 2025.
Review of Business
2024 was another successful year for our group, operating across our 11 branches we delivered over six thousand projects nationwide ranging from domestic bathroom upgrades to twelve storey student accommodation blocks. Installations included MOD facilities in secret locations in southern England and distillery fit-outs in the most northern regions of the country as clients repeatedly choose our group to deliver their projects.
2024 unfortunately also experienced the highest level of client administrations seen within the company in over
a decade as the construction industry grapples with the cash flow impact of payment delays and prolongation
of contract awards. Despite this, I am pleased to report that we have had another excellent year, achieved our
budget and protected our market position.
As we commence our 2025 trading year, we have good visibility of the market and have set challenging budgets to reflect the goals for our subsidiaries. Further administrations are expected along with the continuation of budgetary constraints on the industry. It is at this time that our security, reputation and experience will be of true value to our loyal clients.
Our Veitchi Flooring companies experienced a challenging year but achieved their budget and show a healthy
pipeline of works for 2025.
Veitchi Interiors have provided excellent returns for the year and have a healthy pipeline for 2025.
Richardson and Starling faced new challenges with restrictions on public spending coming into effect in some of their regions and forecast to continue throughout 2025.
Board Structure
The board continue to operate the company with support from Jim Stewart as our non-executive director bringing a broad range of expertise within the construction industry covering, financial, commercial and operational risks.
I continue to be of the opinion that appointment of a permanent chairman is currently not our best option, and I will assume this role as required.
Personnel
2024 saw the promotion of two internal employees to director roles within the company. Mr David Smith from Veitchi Interiors was appointed to Operations Director after 19 years with the company and Mr Martin Barghati Richardson and Starling was promoted to the position of Operations Director after 17 years with the company. Both positions clearly demonstrate our drive to promote from within and act as an indicator for future generations that a clear career path is achievable within our group.
The labour market in 2024 saw relaxation in general as the construction workflow reduced. Whilst we expect this trend to continue. We continue to rely on the reputational strength of the company culture to bring the best candidates to the group.
VEITCHI (HOLDINGS) LIMITED
CHAIRMAN'S STATEMENT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 3 -
Prospects
Whilst there is a noticeable change in construction industry demand, our budgets for 2025 remain ambitious and we have identified clear routes to achieve these over the coming months. Along with this, the introduction of Artificial Intelligence as a working tool will be integrated over the next 12 months as we embrace change and modernisation of the group whilst protecting our values, traditions and most importantly, our people.
J O Brown
Chairman
28 March 2025
VEITCHI (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 4 -
The directors present the strategic report for the year ended 30 November 2024.
Principal activities and review of business developments
The group continues to be engaged in trade as subcontractors to the construction industry and as property developers.
The board have reviewed where the group's key skills lie and have put a strategy in place to concentrate on the areas where they can add value. The directors do not envisage any material change in this strategy in the next twelve months.
Key performance indicators
Turnover
The group's turnover decreased by 10.7% in the year. This was due to the raised access flooring market returning to normal levels, as well as a greater focus on lower volume, higher margin works.
Gross Profit
The gross profit margin increased to 28.7% compared to 22.6% in the previous year. This was due to a greater focus on contracting efficiencies.
Overheads
Administrative expenses increased by 13.6% in the year. This was due to investing in staff to deliver projects more profitably.
Financial risk management objectives and policies
The group uses various financial instruments to raise and facilitate the financing of the business. These instruments include cash, bank borrowings, trade debtors and trade creditors. These instruments carry a variety of financial risks.
Liquidity risk
The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs by reviewing trading and preparing forecasts.
Credit risk
The group's principal financial assets are work in progress and trade debtors, which carry the predominant credit risk. This risk is managed through directors setting limits for customers based on a combination of industry reputation, payment history and third party references. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
VEITCHI (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 5 -
Directors' duties and governance
The Board and Directors of Veitchi (Holdings) Limited and its subsidiary companies consider, both individually and together, that they act in good faith in a manner that is most likely to promote the success of the company for the benefit of its shareholders as a whole and in doing so have regard to:
• The likely consequences of any decisions in the long term;
• The interests of the company’s employees;
• The need to foster the company’s business relationships with its suppliers, customers and others;
• The impact of the company’s operations on the community and the environment;
• The desirability of the company to maintain a reputation for high standards of business conduct; and
• The need to act fairly as between shareholders of the company.
As part of the director induction process directors are briefed on their duties and are required to sign a Code of Conduct governing their expected behaviour when representing the company. A structure is in place internally for directors to seek advice and assistance to ensure that all decisions are taken within the spirit and word of that code.
The following summarises how directors discharge their duties in key areas:
Risk Management
The nature of the construction sector is that it is an industry that requires to be especially risk aware. The company places health and safety at the top of its priorities and puts the safety and wellbeing of our people at the heart of everything we do. The company has its own IOSH qualified health and safety manager who engages with our staff and our clients to ensure that we operate in a manner that minimises risk on site. We have attained ISO accreditation 18001, the industry recognised standard for health and safety management and employ external professionals to conduct occupational health assessments on our staff.
Other risks that the business faces are identified, evaluated, and managed. This is done through tight financial and operational controls and is measured externally through our ISO 9001 accreditation, the industry recognised standard on quality management systems. Internally they are controlled through a structured communication system involving board and management meetings which specifically address business risk.
Our People
Our employees are our most valued asset, and we recognise the need to engage with them to align their progression with their expectations and business need. Through our Veitchi value initiative we proactively manage our staff to ensure that they share the values that are important to us. Our investment in the development of our staff is at the heart of this and we have our own in-house trade school which we use to improve the skills and talents of our apprentice intake. The company also has its own graduate training program which is aimed at developing the next generation of Veitchi management.
Business Relationships
Strong customer relationships are at the heart of what we do. We work with our customers to make sure that their needs are met and value long term relationships and the trust that we build up with our client base. We deal directly with all major manufacturers and the relationships we have with our supply chain have been built up over many years of doing business together.
VEITCHI (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 6 -
Community and Environment
The company fully accepts it is our responsibility to look after the environment and consider sustainable options in all that we do. We care for our people, property and our planet and look to reduce our carbon and waste impact on the environment. The company have acquired the environmental management system standard ISO 14001 and have gold membership status of the Supply Chain School of Sustainability. Each branch has its own energy officer, and we divert 97% per tonnage of our landfill at our head office at Cambuslang Way.
At Veitchi we feel that it is important to give back to the communities in which we operate. We look for local projects to support which will add value to the lives of the people who live locally to our business. This has a positive effect not just on our business but on local communities, the wider society and the environment. The company have an active Charity and Social Committee which arranges events throughout the year to raise money for our staff nominated charities and other worthy causes and also operates its own Give as you Earn Scheme which has contributed over £300,000 to worthy causes since its inception.
Shareholders
The board is committed to openly engaging with its shareholders and understands the importance of the relationship between the company and its members. We welcome attendance at our AGM and speak with shareholders throughout the year as and when contacted. The payment of a dividend is important to us as we appreciate that this has an important part to play in our shareholders' lives many of whom are past management. Whilst we are not a listed company with an active market for our shares we afford opportunity where possible for shareholders to realise their investments through share buy backs and through our Employee Share Ownership Trust.
J O Brown
Director
28 March 2025
VEITCHI (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 7 -
The directors present their annual report and financial statements for the year ended 30 November 2024.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J Stewart
(Retired 30 April 2024)
J O Brown
C J Kennedy
J Stewart
(Appointed 1 September 2024)
Mr J Stewart retired as an executive director on 30th April 2024.
Mr J Stewart was appointed as a non-executive director on 1st September 2024. The role provides balance to the board and reassurance to shareholders, leveraging his industry expertise in the non-executive director role.
Results and dividends
The results for the year are set out on page 12.
A final dividend of 325p per share for the year ended 30 November 2023 was paid during the year.
The directors recommend the payment of a final dividend of 350p per share for the year ended 30 November 2024. In accordance with FRS 102 Section 32, "Events after the reporting period", this dividend has not been accounted for within the current financial statements. The Veitchi (Holdings) Limited Employee Share Ownership Trust has waived its right to this dividend.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Statement of engagement with employees
The group's policy is to consult and discuss with employees, at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
Business relationships
Strong customer relationships are at the heart of what we do. We work with our customers to make sure that their needs are met and value long term relationships and the trust that we build up with our client base. We deal directly with all major manufacturers and the relationships we have with our supply chain have been built up over many years of doing business together.
Auditor
In accordance with the company's articles, a resolution proposing that MHA be reappointed as auditor of the group will be put to the Annual General Meeting.
VEITCHI (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 8 -
Energy and carbon report
We recognise the 2018 Streamlined Energy and Carbon Reporting Regulations requirements to provide data to inform adoption of energy efficiency measures and to help reduce our impact on climate change. In future years, the prior year equivalent figures will be disclosed for comparison.
For the financial year ended 30 November 2024 the group consumed 102,000 kWh (2023: 130,000 kWh) of energy based on consumption figures for year for the entire group. Utilising The Carbon Trust conversion tables, this equates to 20.0 tonnes (2023: 25.0 tonnes) of Carbon Dioxide. This equates to 0.48 tonnes (2023: 0.67 tonnes) of Carbon Dioxide per £1m of turnover. These figures will be our benchmark to assess performance in the coming years.
The Group continually looks for ways to improve energy efficiency both through improvement when carrying out major refurbishment programmes or through incremental changes such as purchasing more energy efficient lighting, electrical equipment and IT equipment.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual 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 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 group and company, and of the profit or loss of the group 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
J O Brown
Director
28 March 2025
VEITCHI (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VEITCHI (HOLDINGS) LIMITED
- 9 -
Opinion
We have audited the financial statements of Veitchi (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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 group's and the parent company's affairs as at 30 November 2024 and of the group's 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.
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 Auditor's 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 group's and parent 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.
VEITCHI (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VEITCHI (HOLDINGS) LIMITED
- 10 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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 group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
Matters on which we are required to report by exception
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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, 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 auditor's 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:
Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
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.
VEITCHI (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VEITCHI (HOLDINGS) LIMITED
- 11 -
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Iain Binnie
(Senior Statutory Auditor)
For and on behalf of MHA, Statutory Auditor
Edinburgh, United Kingdom
28 March 2025
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
VEITCHI (HOLDINGS) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 12 -
2024
2023
Notes
£'000
£'000
Turnover
3
37,449
41,936
Cost of sales
(26,706)
(32,454)
Gross profit
10,743
9,482
Administrative expenses
(9,370)
(8,247)
Other operating income
137
122
Operating profit
4
1,510
1,357
Interest receivable and similar income
8
662
513
Interest payable and similar expenses
9
(9)
Profit before taxation
2,163
1,870
Taxation
10
(556)
(113)
Profit for the financial year
1,607
1,757
Profit for the financial year is all attributable to the owners of the parent company.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
VEITCHI (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 13 -
2024
2023
£'000
£'000
Profit for the year
1,607
1,757
Other comprehensive income
Actuarial gain/(loss) on defined benefit pension schemes
49
(1,723)
Tax relating to other comprehensive income
(46)
77
Other comprehensive income for the year
3
(1,646)
Total comprehensive income for the year
1,610
111
Total comprehensive income for the year is all attributable to the owners of the parent company.
VEITCHI (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT
30 NOVEMBER 2024
30 November 2024
- 14 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
12
2,395
2,314
Investment property
13
1,153
265
3,548
2,579
Current assets
Stocks
16
536
545
Debtors
17
6,226
9,229
Investments
18
7,335
3,513
Cash at bank and in hand
10,251
7,947
24,348
21,234
Creditors: amounts falling due within one year
19
(14,028)
(10,886)
Net current assets
10,320
10,348
Total assets less current liabilities
13,868
12,927
Net assets excluding pension liability
13,868
12,927
Defined benefit pension liability
22
-
(183)
Net assets
13,868
12,744
Capital and reserves
Called up share capital
23
139
139
Share premium account
516
516
Capital redemption reserve
401
401
Other reserves
(275)
(230)
Profit and loss reserves
13,087
11,918
Total equity
13,868
12,744
The financial statements were approved by the board of directors and authorised for issue on 28 March 2025 and are signed on its behalf by:
J O Brown
Director
Company registration number SC009798 (Scotland)
VEITCHI (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2024
- 15 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
12
2,154
2,190
Investment properties
13
1,153
265
Investments
14
14
14
3,321
2,469
Current assets
Stocks
16
190
190
Debtors
17
790
2,506
Investments
18
7,335
3,513
Cash at bank and in hand
7,980
6,638
16,295
12,847
Creditors: amounts falling due within one year
19
(8,226)
(5,030)
Net current assets
8,069
7,817
Total assets less current liabilities
11,390
10,286
Net assets excluding gross pension liability
11,390
10,286
Defined benefit pension liability
22
(183)
Net assets
11,390
10,103
Capital and reserves
Called up share capital
23
139
139
Share premium account
516
516
Capital redemption reserve
401
401
Profit and loss reserves
10,334
9,047
Total equity
11,390
10,103
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,725,000 (2023: £3,718,000)
The financial statements were approved by the board of directors and authorised for issue on 28 March 2025 and are signed on its behalf by:
J O Brown
Director
Company Registration No. SC009798
VEITCHI (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 16 -
Share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 1 December 2022
139
516
401
(261)
12,213
13,008
Year ended 30 November 2023:
Profit for the year
-
-
-
-
1,757
1,757
Other comprehensive income:
Actuarial loss on defined benefit plans
-
-
-
-
(1,723)
(1,723)
Tax relating to other comprehensive income
-
-
-
-
77
77
Total comprehensive income for the year
-
-
-
-
111
111
Dividends
11
-
-
-
-
(406)
(406)
Deemed disposal proceeds of shares issued under incentive plans
-
-
-
186
-
186
Cost of own shares acquired
-
-
-
(155)
-
(155)
Balance at 30 November 2023
139
516
401
(230)
11,918
12,744
Year ended 30 November 2024:
Profit for the year
-
-
-
-
1,607
1,607
Other comprehensive income:
Actuarial gain on defined benefit plans
-
-
-
-
49
49
Tax relating to other comprehensive income
-
-
-
-
(46)
(46)
Total comprehensive income for the year
-
-
-
-
1,610
1,610
Dividends
11
-
-
-
-
(441)
(441)
Deemed disposal proceeds of shares issued under incentive plans
-
-
-
161
-
161
Cost of own shares acquired
-
-
-
(206)
-
(206)
Balance at 30 November 2024
139
516
401
(275)
13,087
13,868
VEITCHI (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 17 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
£'000
£'000
Balance at 1 December 2022
139
516
401
7,381
8,437
Year ended 30 November 2023:
Profit for the year
-
-
-
3,718
3,718
Other comprehensive income:
Actuarial loss on defined benefit plans
-
-
-
(1,723)
(1,723)
Tax relating to other comprehensive income
-
-
-
77
77
Total comprehensive income for the year
-
-
-
2,072
2,072
Dividends
11
-
-
-
(406)
(406)
Balance at 30 November 2023
139
516
401
9,047
10,103
Year ended 30 November 2024:
Profit for the year
-
-
-
1,725
1,725
Other comprehensive income:
Actuarial gain on defined benefit plans
-
-
-
49
49
Tax relating to other comprehensive income
-
-
-
(46)
(46)
Total comprehensive income for the year
-
-
-
1,728
1,728
Dividends
11
-
-
-
(441)
(441)
Balance at 30 November 2024
139
516
401
10,334
11,390
VEITCHI (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 18 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from operations
28
5,760
447
Interest paid
(2)
Taxation
(135)
(29)
Net cash inflow/(outflow) from operating activities
5,623
418
Investing activities
Purchase of tangible fixed assets
(261)
(128)
Proceeds from disposal of tangible fixed assets
5
-
Purchase of investment property
(888)
-
Other investments and loans
(2,202)
(1,371)
Interest received
468
386
Net cash used in investing activities
(2,878)
(1,113)
Financing activities
Dividends paid to equity shareholders
(441)
(406)
Net cash used in financing activities
(441)
(406)
Net increase/(decrease) in cash and cash equivalents
27
2,304
(1,101)
Cash and cash equivalents at beginning of year
27
7,947
9,048
Cash and cash equivalents at end of year
27
10,251
7,947
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 19 -
1
Accounting policies
Company information
Veitchi (Holdings) Limited (“the company”) is a private company limited by shares incorporated in Scotland. The registered office is 8 Cambuslang Way, Gateway Glasgow, Glasgow, G32 8ND.
The group consists of Veitchi (Holdings) Limited and all of its subsidiaries.
1.1
Accounting convention
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 £'000.
The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share-Based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The consolidated financial statements incorporate those of Veitchi (Holdings) Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).
All financial statements are made up to 30 November 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.2
Going concern
At the time of approving the financial statements, the directors are confident that the company and group have 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.
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.3
Turnover
Turnover, which is stated net of value added tax, represents amounts invoiced to third parties, except in respect of long term contracts where turnover represents the sales value of work done in the year, including estimates in respect of amounts not invoiced. Turnover in respect of long term contracts is calculated based on the estimated stage of completion compared to the overall value of the contract. If the outcome of the contract is judged to be uncertain then turnover is calculated based on costs to date.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Land and buildings freehold
50 years
Leasehold improvements
5-10 years
Plant and machinery
4 years
Fixtures, fittings and equipment
5 years
Computer equipment
5 years
Motor vehicles
4 years
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 recognised in the profit and loss account.
The carrying value of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.
1.6
Investment properties
Investment properties, which are properties held to earn rentals and/or for capital appreciation, are measured using the fair value model and stated at their fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.
1.7
Fixed asset investments
Investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 21 -
1.8
Stock and work in progress
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Work in progress is valued at cost less payments on account. Cost comprises direct materials and direct labour.
1.9
Long term contracts
Profit on long term contracts is recognised as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for the contract. Full provision is made for losses on all contracts at the time which they are
first foreseen.
1.10
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and 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.
1.11
Financial instruments
The group 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 group's balance sheet when the group 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.
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 publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Debtors
Debtors with no stated interest rate or receivable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.
Creditors
Creditors with no stated interest rate payable within one year are recorded at transaction price.
All interest bearing loans and borrowings which are basic financial instruments are initially recognised at the present value of cash payable. After initial recognition they are measured at amortised cost.
1.12
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 22 -
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
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.
1.15
Retirement benefits
The group operates a defined benefit pension scheme that was closed to new entrants on 1 December 2002 and became fully paid up with effect from 30 November 2004. Contributions payable to the scheme are charged against the pension scheme liability in the financial statements. The pension charge is calculated on the basis of actuarial advice.
From 1 December 2002 eligible employees are permitted to join the group's defined contribution scheme. Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 23 -
The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
1.16
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to the profit and loss account on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease.
1.17
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to trading are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
1.18
Employee Share Ownership Trust (ESOT)
The company established The Veitchi (Holdings) Limited Employee Share Ownership Trust (ESOT), a discretionary trust, on 7 October 1993 for the purpose of providing incentives and benefits for employees of the group. The company sponsors and controls the ESOT and therefore the assets and liabilities of the Trust are consolidated in these financial statements. Accordingly, shares in the company held by the ESOT are included in the balance sheet at cost as a deduction from equity.
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 24 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the 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.
Turnover and margin recognition
The group’s turnover policy, set out in note 1.3, requires projections to be made of the outcomes of construction contracts, based on their stage of completion. This requires both estimates and judgements to be made of both cost and income recognition on each contract.
In regards to contract income, judgements and estimates are made in the following areas:
Stage of completion
Variations to be considered due to changes in scope of work and its impact on claim value
Recovery of claim value from customers, potentially leading to contract sales provisions
In regards to contract costs, judgements and estimates are made in the following areas:
Work in progress valuation and recoverability
The group only recognises profit on construction contracts as the work is carried out if the final outcome can be assessed with reasonable certainty, in line with its long term contract policy set out in note 1.9. Judgement and estimates are made when calculating the stage of completion on a contract and its projected final outcome as noted above. When the final outcome of a contract is judged to be uncertain, it is recognised at sales equals costs and any anticipated losses are recognised immediately.
Judgements and estimates are reviewed on a monthly basis and throughout the contract life based on the latest available information and adjustments are made where necessary.
3
Turnover and other revenue
The total turnover of the group for the year has been derived from its principal activity wholly undertaken in the United Kingdom.
4
Operating profit
2024
2023
£'000
£'000
Operating profit for the year is stated after charging/(crediting):
Government grants
(4)
(4)
Depreciation of owned tangible fixed assets
179
132
Profit on disposal of tangible fixed assets
(4)
-
Cost of stocks recognised as an expense
11,611
18,664
Operating lease charges
872
782
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 25 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor:
£'000
£'000
For audit services
Audit of the financial statements of the group and company
10
9
Audit of the financial statements of the company's subsidiaries
39
37
49
46
For other services
Pension work
5
5
Taxation compliance services
10
10
All other non-audit services
3
3
18
18
6
Employees
The average monthly number of persons (including directors) employed by the group during the year was:
2024
2023
Number
Number
Office and administrative staff
102
104
Operatives
187
185
289
289
Their aggregate remuneration comprised:
2024
2023
£'000
£'000
Wages and salaries
12,181
11,028
Social security costs
1,254
1,159
Pension costs
1,182
868
Shares awarded under share incentive plan
152
178
14,769
13,233
Remuneration of key management personnel
The remuneration of key management personnel, which also includes directors, is as follows:
2024
2023
£'000
£'000
Aggregate compensation
1,765
1,716
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 26 -
7
Directors' remuneration
2024
2023
£'000
£'000
Remuneration for qualifying services
616
759
Company pension contributions to defined contribution schemes
164
199
780
958
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£'000
£'000
Remuneration for qualifying services
245
225
Company pension contributions to defined contribution schemes
50
72
The number of directors who are entitled to receive shares under long term incentives schemes during the year was 2 (2023 - 2).
8
Interest receivable and similar income
2024
2023
£'000
£'000
Interest income
Interest on bank deposits
300
234
Interest on the net defined benefit asset
32
Other interest income
168
152
Total interest revenue
468
418
Other income from investments
Gains on financial instruments measured at fair value through profit or loss
194
95
Total income
662
513
9
Interest payable and similar expenses
2024
2023
£'000
£'000
Interest on the net defined benefit pension scheme
7
Other interest
2
-
Total finance costs
9
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 27 -
10
Taxation
2024
2023
£'000
£'000
Current tax
UK corporation tax on profits for the current period
565
144
Adjustments in respect of prior periods
(9)
(31)
Total current tax
556
113
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£'000
£'000
Profit before taxation
2,163
1,870
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.01%)
541
430
Tax effect of expenses that are not deductible in determining taxable profit
60
85
Adjustments in respect of prior years
(8)
(31)
Depreciation on assets not qualifying for tax allowances
12
3
Deferred tax not recognised
(20)
(2)
Share scheme deductions
(41)
(44)
Other tax adjustments
12
(328)
Taxation charge
556
113
Adjustments in respect of prior years above relate to the release of previous overprovisions.
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£'000
£'000
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
46
(77)
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 28 -
11
Dividends
Recognised as distributions to equity holders:
2024
2023
2024
2023
Per share
Per share
Total
Total
£
£
£'000
£'000
Ordinary shares
Final paid
3.25
3.00
441
406
Total dividends
Final paid
441
406
The directors have also proposed a final dividend for the year ended 30 November 2024 of 350p per share. This dividend is subject to the approval by shareholders at the annual general meeting on 25 April 2025 and, in accordance with FRS 102 has not been included as a liability in these financial statements. The Veitchi (Holdings) Limited Employee Share Ownership Trust has waived its right to the dividend.
12
Tangible fixed assets
Group
Land and buildings freehold
Leasehold improvements
Plant and machinery
Fixtures, fittings and equipment
Computer equipment
Motor vehicles
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Cost
At 1 December 2023
2,528
196
141
109
132
75
3,181
Additions
60
20
181
261
Disposals
(118)
(25)
(29)
(172)
At 30 November 2024
2,528
78
176
100
132
256
3,270
Depreciation and impairment
At 1 December 2023
386
191
77
59
105
49
867
Depreciation charged in the year
51
1
43
19
12
53
179
Eliminated in respect of disposals
(118)
(25)
(28)
(171)
At 30 November 2024
437
74
95
50
117
102
875
Carrying amount
At 30 November 2024
2,091
4
81
50
15
154
2,395
At 30 November 2023
2,142
5
64
50
27
26
2,314
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
12
Tangible fixed assets
(Continued)
- 29 -
Company
Land and buildings freehold
Plant and machinery
Fixtures, fittings and equipment
Computer equipment
Total
£'000
£'000
£'000
£'000
£'000
Cost
At 1 December 2023
2,528
23
23
103
2,677
Additions
33
5
38
Disposals
(10)
(10)
At 30 November 2024
2,528
56
18
103
2,705
Depreciation and impairment
At 1 December 2023
383
10
17
77
487
Depreciation charged in the year
51
11
3
9
74
Eliminated in respect of disposals
(10)
(10)
At 30 November 2024
434
21
10
86
551
Carrying amount
At 30 November 2024
2,094
35
8
17
2,154
At 30 November 2023
2,145
13
6
26
2,190
13
Investment properties
Group and Company
2024
£'000
Fair value
At 1 December 2023
265
Additions through external acquisition
888
At 30 November 2024
1,153
Investment property comprises properties currently being let to third parties or properties being held with the intention of being let to third parties. The brought forward fair value of these investment properties has been arrived at on the basis of a valuation carried out at 3 March 2017 by Gerard Eve LLP Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
The property acquired in the year has been accounted for at market value including transaction costs and legal fees.
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 30 -
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Investments in subsidiaries
15
14
14
Movements in fixed asset investments
Company
Shares in group undertakings
£'000
Cost or valuation
At 1 December 2023 and 30 November 2024
14
Carrying amount
At 30 November 2024
14
At 30 November 2023
14
15
Subsidiaries
Details of the company's subsidiaries at 30 November 2024 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office key
shares held
Direct
Indirect
Linotol Products Limited
1
Non-trading
Ordinary
100.00
-
Property Repair Network Limited*
1
Non-trading
Ordinary
-
100.00
Richardson & Starling (Northern) Limited
2
Building preservation
Ordinary
100.00
-
Veitchi (Scotland) Limited
1
Non-trading
Ordinary
100.00
-
Veitchi Flooring Limited
1
Floorings
Ordinary
100.00
-
Veitchi Homes Limited**
1
Property developers
Ordinary
-
100.00
Veitchi Industrial Flooring Limited**
1
Floorings
Ordinary
-
100.00
Veitchi Interiors Limited
1
Construction contractors
Ordinary
100.00
-
Veitchi Frame Limited (Formerly Veitchi Larbert Limited)***
1
Non-trading
Ordinary
-
100.00
Registered Office address:
1 8 Cambuslang Way, Gateway Glasgow, Glasgow, G32 8ND
2 Pacific House, Fletcher Way, Parkhouse, Carlisle, England. CA3 0LJ
* wholly owned by Richardson & Starling (Northern) Limited
** wholly owned by Veitchi Flooring Limited
***wholly owned by Veitchi Interiors Limited
On 15 January 2024 Veitchi Larbert Limited changed its name to Veitchi Frame Limited.
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 31 -
16
Stocks
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Raw materials and consumables
116
125
-
-
Work in progress
420
420
190
190
536
545
190
190
Group work in progress includes £190,000 (2023: £190,000) of land stock.
The directors consider that there is no material difference between carrying value and replacement cost.
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£'000
£'000
£'000
£'000
Trade debtors
2,595
3,559
5
15
Gross amounts owed by contract customers
2,038
2,910
Amounts owed by group undertakings
-
-
4
273
Other debtors
549
1,661
104
1,507
Prepayments and accrued income
425
369
213
117
5,607
8,499
326
1,912
Amounts falling due after more than one year:
Trade debtors
155
136
Other debtors
464
548
464
548
619
684
464
548
Deferred tax asset (note 21)
46
46
619
730
464
594
Total debtors
6,226
9,229
790
2,506
18
Current asset investments
Group and Company
2024
2023
£'000
£'000
Unlisted investments
7,335
3,513
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 32 -
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Payments received on account
853
698
Trade creditors
3,045
2,501
11
28
Amounts owed to group undertakings
7,041
4,442
Corporation tax payable
574
153
Other taxation and social security
564
495
22
23
Deferred income
20
3
7
3
4
Other creditors
297
348
37
24
Accruals and deferred income
8,692
6,684
1,112
509
14,028
10,886
8,226
5,030
20
Deferred income
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Arising from Scottish Enterprise Grant
3
7
3
4
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group and Company
£'000
£'000
£'000
£'000
Retirement benefit obligations
-
-
-
46
Group and Company
2024
Movements in the year:
£'000
Asset at 1 December 2023
(46)
Charge to other comprehensive income
46
Liability at 30 November 2024
-
The group has a deferred tax asset amounting to £nil (2023: £nil) representing depreciation charged in advance of capital allowances and other short term timing differences, which has not been recognised due to uncertainty over the timing of the reversal of these differences.
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 33 -
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
978
664
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Defined benefit schemes
The group operated a defined benefit pension scheme, the assets of which are held in separate trustee administered funds. The scheme was closed to new members on 1 December 2002. The scheme became paid up with effect from 30 November 2004.
The defined benefit pension scheme cost for the group was £141,000 (2023: £1,383,463). The pension cost is assessed in accordance with the advice of a qualified actuary using the projected unit method. The most recent actuarial valuation of the scheme was as at 1 December 2020. The principal assumptions used in the valuation were:
Past Service
Discount rate 2.7% pa
Discount rate post-retirement 1.7% pa
Retail price of inflation - revaluation in deferment 3.3% pa
Retail price - increases in payment 3.2% pa
Consumer price inflation 2.3% pa
Members are assumed to retire at the earliest age without reduction.
At the date of the most recent actuarial valuation, the market value of the assets of the scheme was £14.30 million and covered 87% of benefits that had accrued to members after allowing for expected future increases in earnings. The contributions of the group were £275,000 per annum until August 2024. In addition, the group will meet all scheme expenses and levies separately. It was anticipated that the current funding shortfall would be eliminated by 31 August 2024.
In November 2021 and December 2021, a total of £825,000 was paid to the pension scheme as an advance of contributions for the following 3 financial years. The group continued to meet all scheme expenses and levies separately.
In December 2022, the pension scheme purchased a bulk annuity policy covering the majority of the scheme’s liabilities.
The defined benefit scheme is based in the UK. A full actuarial valuation was carried out at 1 December 2020 and updated to 30 November 2024 by a qualified independent actuary. The major assumptions used by the actuary were:
2024
2023
Key assumptions
%
%
Discount rate
5.00
5.05
Retail price inflation
3.50
3.35
Consumer price inflation
3.00
3.10
Medical cost trend rate
2.50
2.35
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
22
Retirement benefit schemes
(Continued)
- 34 -
Mortality assumptions
2024
2023
Assumed life expectations on retirement at age 65:
Years
Years
Retiring today
- Males
21.2
21.4
- Females
23.6
23.8
Retiring in 20 years
- Males
22.1
22.3
- Females
24.7
24.9
2024
2023
Amounts recognised in the profit and loss account
£'000
£'000
Net interest on defined benefit liability
7
(32)
2024
2023
Amounts taken to other comprehensive income
£'000
£'000
Actual return on scheme assets
(376)
2,092
Less: calculated interest element
454
479
Return on scheme assets excluding interest income
78
2,571
Actuarial changes related to obligations
(207)
(981)
Restriction of surplus recognition
16
-
Total costs/(income)
(113)
1,590
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:
Group and Company
2024
2023
£'000
£'000
Present value of defined benefit obligations
9,065
9,457
Fair value of plan assets
(9,065)
(9,274)
Deficit/(surplus) in scheme
-
183
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
22
Retirement benefit schemes
(Continued)
- 35 -
Group and Company
2024
Movements in the present value of defined benefit obligations
£'000
Liabilities at 1 December 2023
9,457
Benefits paid
(646)
Actuarial gains and losses
(207)
Interest cost
461
At 30 November 2024
9,065
Group and Company
2024
The defined benefit obligations arise from plans funded as follows:
£'000
Wholly unfunded obligations
-
Wholly or partly funded obligations
9,065
9,065
The High Court judgement in Lloyds Banking Group Pension Trustees Limited v Lloyds Bank plc and others was made public on 20 November 2020, and held that UK pension schemes with Guaranteed Minimum Pensions (GMPs) accrued from 17 May 1990 to 26 October 2018 are required to provide uplifts to transfer values paid in order to address equality in the calculation of GMPs.
The allowance of £175,000 was estimated based on average impacts for schemes with similar benefit structures, allowing for the profile membership and was accounted for in the year ended 30 November 2020.
Group and Company
2024
Movements in the fair value of plan assets
£'000
Fair value of assets at 1 December 2023
9,274
Interest income
454
Return on plan assets (excluding amounts included in net interest)
(78)
Benefits paid
(710)
Contributions by the employer
141
Restriction of surplus recognition
(16)
At 30 November 2024
9,065
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
22
Retirement benefit schemes
(Continued)
- 36 -
Fair value of plan assets at the reporting period end
Group and Company
2024
2023
£'000
£'000
Cash
44
23
Annuities
9,037
9,251
Restriction of surplus recognition
(16)
-
9,065
9,274
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary shares of £1 each
139,138
139,138
139
139
The group also has an employee share ownership trust that enables certain group employees to receive shares in the company as part of their remuneration. Shares to be issued to employees are firstly acquired by The Veitchi (Holdings) Limited Employee Share Ownership Trust. The cost of share entitlements awarded to employees during the year is disclosed in note 6. As at 30 November 2024, shares awarded but yet to be issued to employees amounted to 11,581 shares (2023: 11,900 shares).
24
Other reserves
Other reserves represent the company's own shares held through The Veitchi (Holdings) Limited Employee Share Ownership Trust (ESOT). In accordance with FRS 102, these shares are accounted for through the balance sheet at cost as a deduction from equity. At 30 November 2024 the ESOT held 8,119 shares in the company (2023: 7,125 shares).
25
Financial commitments, guarantees and contingent liabilities
Santander UK plc group bank facilities are secured by cross guarantees and floating charges between Veitchi (Holdings) Limited, Veitchi Flooring Limited, Veitchi Industrial Flooring Limited, Richardson & Starling (Northern) Limited, Property Repair Network Limited, Linotol Products Limited, Veitchi Homes Limited and Veitchi Interiors Limited.
In the case of certain contracts it is a condition of the contract that the company's bankers give counter guarantees in respect of progress claims which are paid during the course of a contract. In some instances, the company offsets its liability by agreeing counter guarantees against subcontractors on the relevant contracts. The value of guarantees payable at the year end amounted to £373,552 (2023: £289,359).
VEITCHI (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 37 -
26
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Within one year
480
524
21
21
Between two and five years
962
842
86
86
In over five years
717
739
717
739
2,159
2,105
824
846
27
Analysis of changes in net funds - group
1 December 2023
Cash flows
30 November 2024
£'000
£'000
£'000
Cash at bank and in hand
7,947
2,304
10,251
28
Cash generated from group operations
2024
2023
£'000
£'000
Profit for the year after tax
1,607
1,757
Adjustments for:
Taxation charged
556
113
Finance costs
2
Finance costs - non-cash movement
7
-
Investment income
(662)
(513)
Gain on disposal of tangible fixed assets
(4)
-
Depreciation and impairment of tangible fixed assets
179
132
Pension scheme cash movement
(141)
(1,383)
Other reserves movements
(45)
31
Movements in working capital:
Decrease in stocks
9
265
Decrease/(increase) in debtors
1,531
(3)
Increase in creditors
2,725
52
Decrease in deferred income
(4)
(4)
Cash generated from operations
5,760
447
2024-11-302023-12-01falsefalseCCH SoftwareCCH Accounts Production 2024.310No description of principal activityJ O BrownC J KennedyC J KennedyJ StewartK L BartlemanfalseSC009798bus:Consolidated2023-12-012024-11-30SC0097982023-12-012024-11-30SC0097982024-11-30SC009798bus:Consolidated2024-11-30SC009798bus:Director12023-12-012024-11-30SC009798bus:Director22023-12-012024-11-30SC009798bus:CompanySecretaryDirector12023-12-012024-11-30SC009798bus:CompanySecretary12023-12-012024-11-30SC009798bus:CompanySecretary1bus:Consolidated2023-12-012024-11-30SC009798bus:Director42023-12-012024-11-30SC009798bus:Director32023-12-012024-11-30SC009798bus:RegisteredOffice2023-12-012024-11-30SC009798bus:Consolidated2022-12-012023-11-30SC0097982022-12-012023-11-30SC009798core:RetainedEarningsAccumulatedLosses2022-12-012023-11-30SC009798core:RetainedEarningsAccumulatedLosses2023-12-012024-11-30SC009798core:RevenueReservesInvestmentFundsOnlybus:Consolidated2022-12-012023-11-30SC009798core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-12-012024-11-30SC009798bus:Consolidated2023-11-30SC0097982023-11-30SC009798core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2024-11-30SC009798core:LeaseholdImprovementsbus:Consolidated2024-11-30SC009798core:PlantMachinerybus:Consolidated2024-11-30SC009798core:FurnitureFittingsbus:Consolidated2024-11-30SC009798core:ComputerEquipmentbus:Consolidated2024-11-30SC009798core:MotorVehiclesbus:Consolidated2024-11-30SC009798core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-11-30SC009798core:LeaseholdImprovementsbus:Consolidated2023-11-30SC009798core:PlantMachinerybus:Consolidated2023-11-30SC009798core:FurnitureFittingsbus:Consolidated2023-11-30SC009798core:ComputerEquipmentbus:Consolidated2023-11-30SC009798core:MotorVehiclesbus:Consolidated2023-11-30SC009798core:ComputerEquipment2024-11-30SC009798core:FurnitureFittings2023-11-30SC009798core:ComputerEquipment2023-11-30SC009798core:ShareCapitalbus:Consolidated2024-11-30SC009798core:ShareCapitalbus:Consolidated2023-11-30SC009798core:SharePremiumbus:Consolidated2024-11-30SC009798core:SharePremiumbus:Consolidated2023-11-30SC009798core:CapitalRedemptionReservebus:Consolidated2024-11-30SC009798core:CapitalRedemptionReservebus:Consolidated2023-11-30SC009798core:OtherMiscellaneousReservebus:Consolidated2024-11-30SC009798core:OtherMiscellaneousReservebus:Consolidated2023-11-30SC009798core:ShareCapital2024-11-30SC009798core:ShareCapital2023-11-30SC009798core:SharePremium2024-11-30SC009798core:SharePremium2023-11-30SC009798core:CapitalRedemptionReserve2024-11-30SC009798core:CapitalRedemptionReserve2023-11-30SC009798core:RetainedEarningsAccumulatedLosses2024-11-30SC009798core:ShareCapitalbus:Consolidated2022-11-30SC009798core:SharePremiumbus:Consolidated2022-11-30SC009798core:CapitalRedemptionReservebus:Consolidated2022-11-30SC009798core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-11-30SC009798core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-11-30SC009798core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-11-30SC009798core:ShareCapital2022-11-30SC009798core:SharePremium2022-11-30SC009798core:CapitalRedemptionReserve2022-11-30SC009798core:RetainedEarningsAccumulatedLosses2022-11-30SC009798core:RetainedEarningsAccumulatedLosses2023-11-30SC009798core:CurrentFinancialInstrumentscore:WithinOneYear2024-11-30SC009798core:CurrentFinancialInstrumentscore:WithinOneYear2023-11-30SC009798core:CurrentFinancialInstruments2024-11-30SC009798core:CurrentFinancialInstruments2023-11-30SC009798bus:Consolidated2022-11-30SC009798core:LandBuildingscore:OwnedOrFreeholdAssets2023-12-012024-11-30SC009798core:LandBuildingscore:LongLeaseholdAssets2023-12-012024-11-30SC009798core:PlantMachinery2023-12-012024-11-30SC009798core:FurnitureFittings2023-12-012024-11-30SC009798core:ComputerEquipment2023-12-012024-11-30SC009798core:MotorVehicles2023-12-012024-11-30SC009798core:UKTaxbus:Consolidated2023-12-012024-11-30SC009798core:UKTaxbus:Consolidated2022-12-012023-11-30SC009798bus:Consolidated12023-12-012024-11-30SC009798bus:Consolidated12022-12-012023-11-30SC009798bus:Consolidated22023-12-012024-11-30SC009798bus:Consolidated22022-12-012023-11-30SC009798bus:Consolidated32023-12-012024-11-30SC009798bus:Consolidated32022-12-012023-11-30SC009798core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-11-30SC009798core:LeaseholdImprovementsbus:Consolidated2023-11-30SC009798core:PlantMachinerybus:Consolidated2023-11-30SC009798core:FurnitureFittingsbus:Consolidated2023-11-30SC009798core:ComputerEquipmentbus:Consolidated2023-11-30SC009798core:MotorVehiclesbus:Consolidated2023-11-30SC009798bus:Consolidated2023-11-30SC009798core:LandBuildingscore:OwnedOrFreeholdAssets2023-11-30SC009798core:PlantMachinery2023-11-30SC009798core:ComputerEquipment2023-11-30SC009798core:LandBuildingscore:OwnedOrFreeholdAssets2024-11-30SC009798core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-12-012024-11-30SC009798core:LeaseholdImprovementsbus:Consolidated2023-12-012024-11-30SC009798core:PlantMachinerybus:Consolidated2023-12-012024-11-30SC009798core:FurnitureFittingsbus:Consolidated2023-12-012024-11-30SC009798core:ComputerEquipmentbus:Consolidated2023-12-012024-11-30SC009798core:MotorVehiclesbus:Consolidated2023-12-012024-11-30SC009798core:Subsidiary12023-12-012024-11-30SC009798core:Subsidiary22023-12-012024-11-30SC009798core:Subsidiary32023-12-012024-11-30SC009798core:Subsidiary42023-12-012024-11-30SC009798core:Subsidiary52023-12-012024-11-30SC009798core:Subsidiary62023-12-012024-11-30SC009798core:Subsidiary72023-12-012024-11-30SC009798core:Subsidiary82023-12-012024-11-30SC009798core:Subsidiary92023-12-012024-11-30SC009798core:Subsidiary112023-12-012024-11-30SC009798core:Subsidiary212023-12-012024-11-30SC009798core:Subsidiary312023-12-012024-11-30SC009798core:Subsidiary412023-12-012024-11-30SC009798core:Subsidiary512023-12-012024-11-30SC009798core:Subsidiary612023-12-012024-11-30SC009798core:Subsidiary712023-12-012024-11-30SC009798core:Subsidiary812023-12-012024-11-30SC009798core:Subsidiary912023-12-012024-11-30SC009798core:Non-currentFinancialInstrumentsbus:Consolidated2024-11-30SC009798core:Non-currentFinancialInstrumentsbus:Consolidated2023-11-30SC009798core:Non-currentFinancialInstruments2024-11-30SC009798core:Non-currentFinancialInstruments2023-11-30SC009798core:CurrentFinancialInstrumentsbus:Consolidated2024-11-30SC009798core:CurrentFinancialInstrumentsbus:Consolidated2023-11-30SC009798core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-11-30SC009798core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-11-30SC009798bus:PrivateLimitedCompanyLtd2023-12-012024-11-30SC009798bus:FRS1022023-12-012024-11-30SC009798bus:Audited2023-12-012024-11-30SC009798bus:ConsolidatedGroupCompanyAccounts2023-12-012024-11-30SC009798bus:FullAccounts2023-12-012024-11-30xbrli:purexbrli:sharesiso4217:GBP