Company registration number SC019963 (Scotland)
VEITCHI FLOORING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
VEITCHI FLOORING LIMITED
COMPANY INFORMATION
Directors
J O Brown
S Logan
Company number
SC019963
Registered office
8 Cambuslang Way
Gateway Glasgow
Glasgow
G32 8ND
Auditor
MHA
6 St Colme Street
Edinburgh
EH3 6AD
VEITCHI FLOORING LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 21
VEITCHI FLOORING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 November 2024.
Review of the business
The principal activity of the company continued to be that of flooring contractors.
The company has continued to focus on its principal activity as flooring contractors. However, the board have reviewed where the company'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 company's turnover decreased by 21% in the year. This was due to programme delays and the raised access market returning to normal levels.
Gross Profit
The gross profit margin increased to 18.75% compared to 10.37% in the previous year. This was due to a greater focus on contracting efficiencies.
Overheads
Administrative expenses increased by 9.2% in the year. This was due to investing in staff to deliver projects more profitably.
Financial Risk Management Objectives and Policies
The company uses various financial instruments to raise and facilitate the financing of the business. These instruments include inter group borrowings, cash, trade debtors and trade creditors. These instruments carry a variety of financial risks.
Liquidity Risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs by reviewing trading and preparing forecasts. Short-term flexibility is achieved with parent company support through inter-group cash transfers.
Credit Risk
The company'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.
J O Brown
Director
28 March 2025
VEITCHI FLOORING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 2 -
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 O Brown
J Stewart
(Resigned 30 April 2024)
S Logan
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £696,000. The directors do not recommend payment of a further dividend.
Auditor
In accordance with the company's articles, a resolution proposing that MHA be reappointed as auditor of the company will be put to the Annual General Meeting.
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 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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.
VEITCHI FLOORING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 3 -
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 company’s auditor 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 company’s auditor is aware of that information.
On behalf of the board
J O Brown
Director
28 March 2025
VEITCHI FLOORING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VEITCHI FLOORING LIMITED
- 4 -
Opinion
We have audited the financial statements of Veitchi Flooring Limited (the 'company') for the year ended 30 November 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 company's affairs as at 30 November 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.
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 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.
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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
VEITCHI FLOORING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VEITCHI FLOORING LIMITED (CONTINUED)
- 5 -
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, 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 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 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.
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 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.
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.
VEITCHI FLOORING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VEITCHI FLOORING LIMITED (CONTINUED)
- 6 -
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 FLOORING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
11,602,103
14,700,575
Cost of sales
(9,426,299)
(13,176,601)
Gross profit
2,175,804
1,523,974
Administrative expenses
(1,707,531)
(1,564,822)
Operating profit/(loss)
4
468,273
(40,848)
Interest receivable and similar income
8
307,000
95,163
Interest payable and similar expenses
9
(60)
Profit before taxation
775,273
54,255
Taxation
10
(80,000)
99,032
Profit for the financial year
695,273
153,287
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
VEITCHI FLOORING LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2024
30 November 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
85,569
36,959
Investments
13
180
180
85,749
37,139
Current assets
Stocks
15
133,353
132,167
Debtors
16
3,101,258
2,915,473
Cash at bank and in hand
809,305
275,314
4,043,916
3,322,954
Creditors: amounts falling due within one year
17
(3,379,607)
(2,609,308)
Net current assets
664,309
713,646
Net assets
750,058
750,785
Capital and reserves
Called up share capital
19
5,000
5,000
Profit and loss reserves
745,058
745,785
Total equity
750,058
750,785
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 SC019963 (Scotland)
VEITCHI FLOORING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2022
5,000
1,495,498
1,500,498
Year ended 30 November 2023:
Profit and total comprehensive income
-
153,287
153,287
Dividends
11
-
(903,000)
(903,000)
Balance at 30 November 2023
5,000
745,785
750,785
Year ended 30 November 2024:
Profit and total comprehensive income
-
695,273
695,273
Dividends
11
-
(696,000)
(696,000)
Balance at 30 November 2024
5,000
745,058
750,058
VEITCHI FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 10 -
1
Accounting policies
Company information
Veitchi Flooring Limited is a private company limited by shares incorporated in Scotland. The registered office is 8 Cambuslang Way, Gateway Glasgow, Glasgow, G32 8ND.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This 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:
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.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. These financial statements present information about the company as an individual entity and not about its group.
Veitchi Flooring Limited is a wholly owned subsidiary of Veitchi (Holdings) Limited and the results of Veitchi Flooring Limited are included in the consolidated financial statements of Veitchi (Holdings) Limited which are available from 8 Cambuslang Way, Gateway Glasgow, Glasgow, G32 8ND.
1.2
Going concern
Atruet the time of approving the financial statements, the directors are confident 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.
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.
VEITCHI FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 11 -
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 leasehold
5-10 years
Plant and machinery
4 years
Fixtures, fittings and 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 credited or charged to profit or loss.
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
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 company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Stocks 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.
1.8
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 that contract. Full provision is made for losses on all contracts at the time which they are first foreseen.
1.9
Cash at bank and in hand
Cash and cash equivalents 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.
VEITCHI FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.10
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 balance sheet 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.
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 statement of comprehensive income.
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.
1.11
Equity instruments
Equity instruments issued by the company 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 company.
1.12
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 statement of comprehensive income 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 company’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 statement of comprehensive income, 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 when the company has 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.
VEITCHI FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.13
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.
1.14
Retirement benefits
The assets and liabilities of the group defined benefit pension scheme are disclosed in the financial statements of Veitchi (Holdings) Limited. The scheme was closed to new members on 1 December 2002. The scheme became paid up with effect from 30 November 2004.
Contributions payable to the group's defined contribution pension scheme are charged to the statement of comprehensive income in the period to which they relate.
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to the statement of comprehensive income 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.
VEITCHI FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 14 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’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 company’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 company 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 1.8. 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 company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.
4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
36,206
16,249
Cost of stocks recognised as an expense
5,727,789
9,483,353
Operating lease charges
223,139
214,455
VEITCHI FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 15 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor:
£
£
For audit services
Audit of the financial statements of the company
10,850
10,350
For other services
Taxation compliance services
1,900
1,835
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Staff
14
14
Operatives
48
47
62
61
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,259,010
2,720,577
Social security costs
332,632
294,799
Pension costs
163,341
156,702
3,754,983
3,172,078
Remuneration of key management personnel
The remuneration of key management personnel, which also includes directors, is as follows:
2024
2023
£
£
Aggregate compensation
466,230
440,676
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
187,662
179,354
Company pension contributions to defined contribution schemes
47,979
46,660
235,641
226,014
VEITCHI FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
7
Directors' remuneration
(Continued)
- 16 -
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 3).
8
Interest receivable and similar income
2024
2023
£
£
Income from fixed asset investments
Income from shares in group undertakings
307,000
95,163
9
Interest payable and similar expenses
2024
2023
£
£
Other interest
60
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
80,000
Adjustments in respect of prior periods
(5,000)
Group tax relief
(94,032)
Total current tax
80,000
(99,032)
VEITCHI FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
10
Taxation
(Continued)
- 17 -
The actual charge/(credit) 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
£
£
Profit before taxation
775,273
54,255
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.01%)
193,818
12,484
Tax effect of expenses that are not deductible in determining taxable profit
4,051
5,549
Tax effect of income not taxable in determining taxable profit
(76,750)
(21,898)
Adjustments in respect of prior years
(5,000)
Group relief
(26,318)
21,638
Permanent capital allowances in excess of depreciation
(150)
Deferred tax adjustments in respect of prior years
864
Deferred tax not recognised
(8,409)
(10,863)
Other tax adjustments
5,249
Share scheme deductions
(11,641)
(7,624)
Receipt in respect of group relief
(94,032)
Taxation charge/(credit) for the year
80,000
(99,032)
Adjustments in respect of prior years above relate to the release of previous overprovisions.
The company has a deferred tax liability amounting to £6,925 (2023: (£1484) - asset) representing short term timing differences and differences arising from variations between capital allowances and depreciation rates, which has not been recognised due to uncertainty over the timing of the reversal of these differences.
11
Dividends
2024
2023
£
£
Final paid
696,000
903,000
VEITCHI FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 18 -
12
Tangible fixed assets
Land and buildings leasehold
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 December 2023
118,285
24,017
13,517
30,176
185,995
Additions
18,759
2,021
64,036
84,816
Disposals
(118,285)
(3,175)
(1,745)
(123,205)
At 30 November 2024
39,601
13,793
94,212
147,606
Depreciation and impairment
At 1 December 2023
118,285
17,126
6,081
7,544
149,036
Depreciation charged in the year
9,895
2,758
23,553
36,206
Eliminated in respect of disposals
(118,285)
(3,175)
(1,745)
(123,205)
At 30 November 2024
23,846
7,094
31,097
62,037
Carrying amount
At 30 November 2024
15,755
6,699
63,115
85,569
At 30 November 2023
6,891
7,436
22,632
36,959
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
14
180
180
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 December 2023 & 30 November 2024
180
Carrying amount
At 30 November 2024
180
At 30 November 2023
180
VEITCHI FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 19 -
14
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
Veitchi Homes Limited
1
Property developer
Ordinary
100.00
Veitchi Industrial Flooring Limited
1
Industrial flooring contractors
Ordinary
100.00
Registered Office addresses:
1
8 Cambuslang Way, Gateway Glasgow, Glasgow, G32 8ND
15
Stocks
2024
2023
£
£
Raw materials and consumables
25,856
30,661
Work in progress
107,497
101,506
133,353
132,167
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
556,928
928,724
Gross amounts owed by contract customers
1,652,867
1,708,850
Amounts owed by group undertakings
521,106
123,268
Other debtors
251,552
57,391
Prepayments and accrued income
13,826
18,750
2,996,279
2,836,983
2024
2023
Amounts falling due after more than one year:
£
£
Trade debtors
104,979
78,490
Total debtors
3,101,258
2,915,473
VEITCHI FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 20 -
17
Creditors: amounts falling due within one year
2024
2023
£
£
Payments received on account
72,817
122,955
Trade creditors
1,420,657
857,986
Corporation tax
82,500
2,500
Other taxation and social security
82,983
82,379
Other creditors
140,295
173,860
Accruals and deferred income
1,580,355
1,369,628
3,379,607
2,609,308
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
163,341
156,702
The company is a participating company in the Veitchi (Holdings) Limited defined benefit and defined contribution pension schemes.
The proportion of assets and liabilities of the group defined benefit pension scheme relating to the company are not disclosed in these financial statements.
Details of these schemes can be found in the notes to the accounts of Veitchi (Holdings) Limited for the year ended 30 November 2024.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
5,000
5,000
5,000
5,000
20
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 £158,370 (2023: £289,359).
VEITCHI FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 21 -
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
38,162
31,933
Between two and five years
85,484
37,283
123,646
69,216
22
Related party transactions
The company has taken advantage of the disclosure exemption available in FRS 102 section 33 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.
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