Company registration number SC056282 (Scotland)
ANGUS DECORATING COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
ANGUS DECORATING COMPANY LIMITED
COMPANY INFORMATION
Directors
Colin Kennedy
Tracey Stewart
Stuart Kennedy
Michael Campbell
Secretary
Tracey Stewart
Company number
SC056282
Registered office
Kirkton Enterprise Centre
Sir William Smith Road
Kirkton Industrial Estate
Arbroath
DD11 3RD
Auditor
Findlays Audit Limited
11 Dudhope Terrace
Dundee
DD3 6TS
ANGUS DECORATING COMPANY LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 25
ANGUS DECORATING COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -
The directors present the strategic report for the year ended 31 August 2024.
Principal activities
Following a restructure in the prior year, the principal activities of the company are now focused solely on professional decorating contracts. As part of the restructure, property investment operations transferred to newly-formed fellow-subsidiary, ADCL Properties Ltd. This strategic move has allowed Angus Decorating Company Limited to concentrate its resources and expertise on its core business operations.
Review of the business
The company has had another successful year, achieved through the directors maintaining tight control over the company's operations.
Principal risks and uncertainties
The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to future increases in costs and competition; a potential downturn in the industry; and difficulty in resourcing and maintaining skilled labour. The directors remain pro-active in monitoring movements in the industry and within the general economic climate.
Development and performance
This has been a strong year in particular for contract income. Turnover and profitability have been maintained as a result of more lucrative contracts and tight controls on all expenditure.
The company will continue to seek opportunities to increase turnover and profitability.
Key performance indicators
The key performance indicators are turnover and profit levels; both of which have had favourable movements in the last two years.
Tracey Stewart
Director
7 May 2025
ANGUS DECORATING COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 August 2024.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £10,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Colin Kennedy
Tracey Stewart
Stuart Kennedy
Michael Campbell
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Tracey Stewart
Director
7 May 2025
ANGUS DECORATING COMPANY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
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; and
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.
ANGUS DECORATING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ANGUS DECORATING COMPANY LIMITED
- 4 -
Opinion
We have audited the financial statements of Angus Decorating Company Limited (the 'company') for the year ended 31 August 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 company's affairs as at 31 August 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.
ANGUS DECORATING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ANGUS DECORATING COMPANY LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 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 mis-statements in respect of irregularities, including fraud and non-compliance with laws and regulations is detailed below
The audit team has appropriate skills and expertise required and through discussions with management and Directors knowledge of the sector to ensure any non compliance is recognised and all necessary disclosures are made. The controls in place help the company mitigate the risk of fraud and also aids them in highlighting any instances of fraud that might have occurred.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Inquiry of management about any known or suspected instances of non compliance with laws and regulations, including GDPR, health and safety, employment law and fraud.
Inquiry of management as to where they consider there is a susceptibility to fraud and their knowledge of how actual, suspected and alleged fraud might occur.
Review of any correspondence with regulators including HMRC.
Challenging assumptions and judgements made by management in their significant accounting estimates
Auditing the risk of management override controls, including through testing of journal entries and other judgments for appropriateness.
Review of any areas where there is potential of management bias, large & unusual transactions and the risk of undisclosed related parties.
Performing analytical procedures to identify any unusual transactions.
Auditing the risk of management override and controls through the testing of journal entries and other adjustments for appropriateness.
Cut off testing to address potential errors in revenue recognition.
Directional testing performed on sales invoices to address completeness.
ANGUS DECORATING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ANGUS DECORATING COMPANY LIMITED
- 6 -
Because of the field in which the company operates in, we identified the following areas as those most likely to have a material impact on the financial statements:
Direct impact on financial statements:
Companies Act 2006
FRS 102
Corporate tax laws
Indirect impact on financial statements:
Employments laws
Health & Safety Act
GDPR
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.
Lesley Campbell, BA, C.A.
Senior Statutory Auditor
For and on behalf of Findlays Audit Limited
11 Dudhope Terrace
Dundee
DD3 6TS
7 May 2025
Findlays is eligible for appointment as auditor of the company by virtue of its eligibility for appointment as auditor of a company under s 1212 of the Companies Act 2006
ANGUS DECORATING COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
4,153,274
3,849,752
Cost of sales
(2,971,140)
(2,507,597)
Gross profit
1,182,134
1,342,155
Administrative expenses
(1,011,998)
(1,176,525)
Other operating income
136,279
127,228
Connected company loans written off
4
(84,113)
Operating profit
5
222,302
292,858
Interest receivable and similar income
9
8,480
374,959
Interest payable and similar expenses
10
(9,033)
(55,628)
Profit before taxation
221,749
612,189
Tax on profit
11
(48,724)
(148,327)
Profit for the financial year
173,025
463,862
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 11 to 25 form part of these financial statements.
ANGUS DECORATING COMPANY LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
237,851
296,480
Current assets
Stocks
14
56,079
58,945
Debtors
15
4,274,800
4,322,088
Cash at bank and in hand
398,308
703,085
4,729,187
5,084,118
Creditors: amounts falling due within one year
16
(779,128)
(1,354,844)
Net current assets
3,950,059
3,729,274
Total assets less current liabilities
4,187,910
4,025,754
Creditors: amounts falling due after more than one year
17
(59,623)
(46,566)
Provisions for liabilities
Deferred tax liability
20
48,012
61,938
(48,012)
(61,938)
Net assets
4,080,275
3,917,250
Capital and reserves
Called up share capital
22
200
200
Profit and loss reserves
23
4,080,075
3,917,050
Total equity
4,080,275
3,917,250
The financial statements were approved by the board of directors and authorised for issue on 7 May 2025 and are signed on its behalf by:
Tracey Stewart
Director
Company Registration No. SC056282
ANGUS DECORATING COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2022
200
526,088
3,463,688
3,989,976
Year ended 31 August 2023:
Profit and total comprehensive income
-
-
463,862
463,862
Dividends
12
-
-
(10,500)
(10,500)
Revaluation of investment property
-
55,772
-
55,772
Other movements
-
(581,860)
-
(581,860)
Balance at 31 August 2023
200
3,917,050
3,917,250
Year ended 31 August 2024:
Profit and total comprehensive income
-
-
173,025
173,025
Dividends
12
-
-
(10,000)
(10,000)
Balance at 31 August 2024
200
4,080,075
4,080,275
The notes on pages 11 to 25 form part of these financial statements.
ANGUS DECORATING COMPANY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
27
329,468
(2,848,556)
Interest paid
(9,033)
(55,628)
Income taxes paid
(134,065)
(100,042)
Net cash inflow/(outflow) from operating activities
186,370
(3,004,226)
Investing activities
Purchase of tangible fixed assets
(9,096)
(26,409)
Proceeds from disposal of tangible fixed assets
118,743
5,710
Purchase of investment property
(123,866)
Proceeds from disposal of investment property
3,450,109
Loans made to other entities
(331)
Repayment of loans
331
Interest received
8,480
5,013
Other income received from investments
369,946
Net cash generated from investing activities
118,458
3,680,172
Financing activities
Repayment of bank loans
(477,470)
(331,036)
Payment of finance leases obligations
(122,135)
(66,793)
Dividends paid
(10,000)
(10,500)
Net cash used in financing activities
(609,605)
(408,329)
Net (decrease)/increase in cash and cash equivalents
(304,777)
267,617
Cash and cash equivalents at beginning of year
703,085
435,468
Cash and cash equivalents at end of year
398,308
703,085
The notes on pages 11 to 25 form part of these financial statements.
ANGUS DECORATING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
1
Accounting policies
Company information
Angus Decorating Company Limited is a private company limited by shares incorporated in Scotland. The registered office is Kirkton Enterprise Centre, Sir William Smith Road, Kirkton Industrial Estate, Arbroath, DD11 3RD.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
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:
Plant and machinery
20% reducing balance per annum
Motor vehicles
25% reducing balance per annum
ANGUS DECORATING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 12 -
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.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Stocks
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
1.8
Cash and cash equivalents
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.
1.9
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.
ANGUS DECORATING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 13 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
ANGUS DECORATING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
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.
1.11
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 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 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 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.
ANGUS DECORATING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.15
Equity dividends are recognised when the become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
ANGUS DECORATING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Depreciation
Tangible fixed assets are depreciated over a period to reflect their estimated useful lives. The applicability of the assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence.
Fixed assets are also assessed as to whether there are indictors of impairment. This assessment involves consideration of the economic viability of the purpose for which the asset is used.
Provision for doubtful debts
The company makes an estimate of the recoverable value of trade and other debtors, considering factors such as the ageing profile of the debt, economic climate and historical experience. Where debts are considered to be impaired a charge is recognised in the profit and loss account.
Work in progress
At the end of each reporting period the directors calculate the valuation of the Work in Progress. Valuations are based on the total contract value less amounts billed to date, in order to determine a completion percentage. Discounts are applied to projects at the year end to provide for amounts that are deemed irrecoverable.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Retail sales
77,559
96,279
Private decorating sales
560,195
575,411
Commercial decorating sales
3,515,520
3,178,062
4,153,274
3,849,752
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
4,153,274
3,849,752
ANGUS DECORATING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
3
Turnover and other revenue
(Continued)
- 17 -
2024
2023
£
£
Other revenue
Interest income
8,480
5,013
4
Exceptional item
2024
2023
£
£
Expenditure
Connected company loans written off
84,113
-
In the current financial year, Angus Decorating Company Limited have recognised an exceptional item relating to the write-off of a loan of £84,113 (2023: £nil) to connected company, GSLP XX Limited. This write-off arises from the assessment of recoverability of the loan, where it was determined that the outstanding balance would no longer be recoverable due to the financial position of GSLP XX Limited.
The write-off is considered to be of a non-recurring nature and does not reflect the company's normal operating performance. Therefore, the amount of £84,113 is classified separately to ensure that the financial performance of the company remains comparable with previous periods.
5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
77,532
86,111
Loss/(profit) on disposal of tangible fixed assets
6,445
(74)
(Profit)/loss on disposal of investment property
9,598
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
19,200
18,300
For other services
All other non-audit services
3,415
7,838
Non audit services comprises costs relating to secretarial and tax services.
ANGUS DECORATING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -
7
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
63
64
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,404,871
2,230,862
Social security costs
45,795
50,737
Pension costs
57,624
49,700
2,508,290
2,331,299
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
371,327
384,519
Company pension contributions to defined contribution schemes
11,861
10,951
383,188
395,470
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
149,869
137,895
Company pension contributions to defined contribution schemes
4,395
3,983
ANGUS DECORATING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
8,480
5,013
Income from fixed asset investments
Income from other fixed asset investments
369,946
Total income
8,480
374,959
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
8,480
5,013
10
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
48,379
Other finance costs:
Interest on finance leases and hire purchase contracts
9,033
7,249
9,033
55,628
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
62,568
133,983
Adjustments in respect of prior periods
82
1,695
Total current tax
62,650
135,678
Deferred tax
Origination and reversal of timing differences
(13,926)
12,649
Total tax charge
48,724
148,327
ANGUS DECORATING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
11
Taxation
(Continued)
- 20 -
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
£
£
Profit before taxation
221,749
612,189
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
55,437
153,047
Tax effect of expenses that are not deductible in determining taxable profit
22,835
4,946
Gains not taxable
(16)
Effect of change in corporation tax rate
(21,304)
Permanent capital allowances in excess of depreciation
(15,704)
(2,690)
Under/(over) provided in prior years
82
1,695
Deferred tax adjustments in respect of prior years
(13,926)
12,649
Taxation charge for the year
48,724
148,327
12
Dividends
2024
2023
£
£
Final paid
10,000
10,500
ANGUS DECORATING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
13
Tangible fixed assets
Plant and machinery
Motor vehicles
Total
£
£
£
Cost
At 1 September 2023
259,243
383,951
643,194
Additions
9,096
134,995
144,091
Disposals
(231,309)
(36,950)
(268,259)
At 31 August 2024
37,030
481,996
519,026
Depreciation and impairment
At 1 September 2023
126,237
220,477
346,714
Depreciation charged in the year
5,254
72,278
77,532
Eliminated in respect of disposals
(115,476)
(27,595)
(143,071)
At 31 August 2024
16,015
265,160
281,175
Carrying amount
At 31 August 2024
21,015
216,836
237,851
At 31 August 2023
133,006
163,474
296,480
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
211,357
154,583
211,357
154,583
14
Stocks
2024
2023
£
£
Raw materials and consumables
56,079
58,945
ANGUS DECORATING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
109,896
198,327
Gross amounts owed by contract customers
519,951
383,864
Amounts owed by group undertakings
3,468,113
3,378,568
Other debtors
164,398
281,358
Prepayments and accrued income
12,442
70,963
4,274,800
4,313,080
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
9,008
Total debtors
4,274,800
4,322,088
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
18
477,470
Obligations under finance leases
19
61,021
61,218
Trade creditors
201,160
97,225
Amounts owed to group undertakings
1,800
Corporation tax
62,568
133,983
Other taxation and social security
50,404
101,731
Accruals and deferred income
402,175
483,217
779,128
1,354,844
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
59,623
46,566
Obligations under finance leases are secured against the related asset.
The aggregate of current secured liabilities is £61,021 (2023 - £538,687).
The aggregate of non-current secured liabilities is £59,623 (2023 - £46,566).
ANGUS DECORATING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 23 -
18
Loans and overdrafts
2024
2023
£
£
Bank loans
477,470
Payable within one year
477,470
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
61,021
61,218
In two to five years
59,623
46,566
120,644
107,784
Finance lease payments represent rentals payable by the company for motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
48,012
61,938
2024
Movements in the year:
£
Liability at 1 September 2023
61,938
Credit to profit or loss
(13,926)
Liability at 31 August 2024
48,012
ANGUS DECORATING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 24 -
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
57,624
49,700
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
200
200
200
23
Profit and loss reserves
The company holds £4,080,075 (2023 - £3,917,050) in distributable reserves which includes all current and prior period retained profits and losses.
24
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
-
50,000
Capital commitments in YE23 comprised of estimated costs of excavations and electrical work to restore the site at Pitkerro Park following the installation of an electrical substation. As of YE24, there were no ongoing capital commitments.
ANGUS DECORATING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 25 -
25
Operating lease commitments
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
633
633
Between two and five years
475
1,108
1,108
1,741
26
Ultimate controlling party
Angus Decorating Company Ltd is a wholly owned subsidiary of ADCL Holdings Ltd (SC768883) which has its registered office at Kirkton Enterprise Centre, Sir William Smith Road, Arbroath, Scotland, DD11 3RD.
27
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit after taxation
173,025
463,862
Adjustments for:
Taxation charged
48,724
148,327
Finance costs
9,033
55,628
Investment income
(8,480)
(374,959)
Loss/(gain) on disposal of tangible fixed assets
6,445
(74)
(Gain)/loss on disposal of investment property
9,598
Depreciation and impairment of tangible fixed assets
77,532
86,111
Movements in working capital:
Decrease/(increase) in stocks
2,866
(1,689)
Decrease/(increase) in debtors
46,957
(3,407,182)
(Decrease)/increase in creditors
(26,634)
171,822
Cash generated from/(absorbed by) operations
329,468
(2,848,556)
28
Analysis of changes in net funds
1 September 2023
Cash flows
New finance leases
31 August 2024
£
£
£
£
Cash at bank and in hand
703,085
(304,777)
-
398,308
Borrowings excluding overdrafts
(477,470)
477,470
-
-
Obligations under finance leases
(107,784)
122,135
(134,995)
(120,644)
117,831
294,828
(134,995)
277,664
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