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Company Registration Number SC027238























MCGILL'S BUS SERVICE LIMITED





FINANCIAL STATEMENTS





 31 DECEMBER 2023
























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MCGILL'S BUS SERVICE LIMITED
 

COMPANY INFORMATION


Directors
A Easdale 
J Easdale 
R Roberts 




Company secretary
R Roberts



Registered number
SC027238



Registered office
99 Earnhill Road
Larkfield Industrial Estate

Greenock

Renfrewshire

PA16 0EQ




Independent auditors
Armstrong Watson Audit Limited
Chartered Accountants & Statutory Auditors

1st Floor 24 Blythswood Square

Glasgow

G2 4BG





 
MCGILL'S BUS SERVICE LIMITED
 

CONTENTS



Page
Group strategic report
1 - 4
Directors' report
5 - 7
Independent auditors' report
8 - 13
Consolidated statement of comprehensive income
14
Consolidated balance sheet
15
Company balance sheet
16 - 17
Consolidated statement of changes in equity
18
Company statement of changes in equity
19
Consolidated statement of cash flows
20 - 21
Consolidated analysis of net debt
21
Notes to the financial statements
22 - 50


 
MCGILL'S BUS SERVICE LIMITED
 

GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report of the company and the group for the period 2 January 2023 to 31 December 2023.
McGill’s Bus Group is Britain’s largest independently owned bus company and a pioneer in fleet decarbonisation, with over 110 zero emission electric buses. Our wide and diverse portfolio includes local, city, rural and interurban quality bus services across Scotland under the McGill’s, Midland Bluebird, Xplore Dundee and BrightBus brands, as well as open-top hop on & hop off tours, airport connections, expansive coach touring and private hire. We are also a key strategic partner to global intercity coach brand Flixbus across the UK. 
The Group prides itself on high-level customer service and invests heavily in new vehicles, people, skills and development. We have in-house driver training academies in Johnstone, Dundee and Falkirk and we work with the Prince's Trust on the 'Get Into Bus Engineering' scheme, to allow younger workers an opportunity to become engineers with McGill's. 
In 2022, McGill’s Bus Group was named Public Transport Operator of the Year at the Scottish Transport Awards and was first runner-up in 2023. The company was awarded one Gold and three Silver accolades at UK Bus Awards in 2023.

Business review
 
Turnover increased from £57.6m to £91.2m due to the full year impact of the business in Stirlingshire and the Lothians acquired through the acquisitions from First Group Plc. These businesses have added substantially to group revenue, fleet size and headcount and following a period of integration will contribute to future profitability. 
Operating profit increased from £0.72m to £1.88m. Business recovery continued to be impacted by a slower than expected recovery from the economic impacts of the Covid-19 pandemic while passenger volumes continued to be impacted by consequent changing customer travel patterns and recreational activity. 

Page 1

 
MCGILL'S BUS SERVICE LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
There are several potential risks and uncertainties that could have an impact on the company's long-term performance. The directors have established an ongoing process for identifying, evaluating and managing the significant risks and uncertainties faced by the company and continue to assess these on a regular basis in the light of internal and external events.
Specific business risks faced by the company include the following:
Competition risk
The company faces the risk of loss of customers through other bus companies providing improved services or more competitive pricing. Management mitigate the competitive pressure by monitoring competitors' actions and strategies to ensure that the company acts appropriately under current market conditions.
Legal and regulatory risk
The directors are aware of the continual change in laws and other regulations and the increasing costs of compliance. The directors conduct regular reviews of safety procedures, equipment specifications, employment requirements, environmental procedures, insurance coverage and other areas to ensure they are appropriate and operating effectively.
Litigation and claims risk
The company has three main insurance risks: third party claims arising from vehicle and general operations; employee injuries; and property damage.
Fuel cost risk
Fuel costs represent a significant proportion of the company's cost base. Fuel prices are directly influenced by international, political and economic circumstances as well as natural disasters. Wherever possible, the company seek to minimise the operational and financial impact of such events. Where appropriate, this may be through fixed price forward contracts or through operational efficiency measures.
 

Page 2

 
MCGILL'S BUS SERVICE LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Principal risks and uncertainties (continued)

Labour cost and employee relations and retention risk
Labour costs represent the most significant element of the company's operating costs. The directors continue to monitor employee recruitment, training, personal development and remuneration to ensure the company attracts and retains the right people in the right numbers.
To retain the right people, the company believes that good communication with employees is affected through regular briefing, personal contact with senior management and through the use of a company intranet and mobile phone application. Rapid communication and feedback is of fundamental value in employee relations and in a well-functioning operation.
Environmental risk (including climate change)
The company recognises the importance of its environmental policies, monitors its impact on the environment, and designs and implements policies to reduce any damage that might be caused by its activities. Initiatives designed to minimise the company's impact on the environment include safe disposal of waste, recycling and reducing energy consumption.
Through our core business activities, we are committed to providing a safe, good quality, reliable and cost effective public transport to all our customers. Our core business strategy is to increase customer numbers and encourage a greater move towards the use of bus transport. This will support the needs of society in moving towards more sustainable travel. We recognise the environmental impacts arising from our business activities and are committed to reducing these through substantial investment in zero emission electric buses and in the care, maintenance and efficient running of the non-electric part of our bus fleet.
Economic risk
An uncertain economic outlook coupled with inflated costs of living could have a negative impact on our businesses in terms of reduced demand and reduced opportunities for growth. The uncertainty around appetite for return to travel post-pandemic and consumer means may result in reduced demand for public transportation due to people travelling less for both business and pleasure. To an extent, the group is able to modify services to react to market changes and to focus on controlling costs to ensure that it remains competitive.

Financial key performance indicators
 
The key performance indicators for the company are turnover, operating profit and net assets. The company's directors believe that further key performance indicators for the company are not necessary or appropriate for an understanding of the development, performance or position of the business.

Key performance indicators

31 December
As restated
1 January
2023
2023
        £
        £
Turnover

91,240,205

57,563,710
 
Operating profit

1,884,708

720,560
 
Net assets

6,970,660

7,299,130
 

Page 3

 
MCGILL'S BUS SERVICE LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Section S172 Statement
 
The directors acknowledge and understand their duties and responsibilities, including that of section 172, of the Companies Act 2006. A director of a company must act in the way he or she considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:
- the likely consequences of any decision in the long term;
- the interest of the company's employees;
- the need to foster the company's business relationships with suppliers, customers and others;
- the impact of the company's operating on the local community and the environment;
- the desirability of the company maintaining a reputation for high standards of business conduct; and
- the need to act fairly as members of the company.
The board recognises that the long term success of the Group is dependent on the way we interact with a large number of stakeholders including our colleagues, customers and shareholders.
The directors have had regard to the interest of our stakeholders while complying with their obligations to promote the ongoing success of the Group in line with the section 172 of the Companies Act.
Ahead of all board meetings the directors ares supplied with board papers that highlight relevant stakeholder considerations along with performance metrics.
The board's decision making considers both risk and reward in the pursuit of delivering long term value to our stakeholders and acknowledging and understanding the current and potential risks to the business, both financial and non-financial, are fundemental to how we manage the Group.
The directors, both individually and collectively as a board, consider the decisions taken during the period ended 31 December 2023 were in conformance of their duty under section 172 of the Companies Act.


This report was approved by the board and signed on its behalf.


R Roberts
Director
Date: 9 June 2025

Page 4

 
MCGILL'S BUS SERVICE LIMITED
 

 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the period ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group 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 for the Group's financial statements and then apply them consistently;

make judgments 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the period, after taxation, amounted to £328,470 (2023 - loss £1,425,280).

No dividends were declared or paid in the current or prior period.

Directors

The directors who served during the period were:

A Easdale 
J Easdale 
R Roberts 

Future developments

The trading environment for the next twelve months is positive as passenger demand is expected to grow and the businesses acquired from First Group Plc are fully integrated. The directors will review all aspects of performance on a continuous basis and tailor the group's activity to balance achievable revenue levels with available Government support while giving due consideration to all stakeholder groups.

Page 5

 
MCGILL'S BUS SERVICE LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023


Engagement with employees

To retain the right people, the company believes that good communication with employees is essential and affected through regular briefing, personal contact with senior management and through the use of a company intranet and mobile phone application. Rapid communication and feedback is of fundamental value in employee relations and in a well-functioning operation.

Disabled employees

The company gives full and fair consideration to applications made for employment by disabled persons, has continued wherever possible the employment of persons who have become disabled whilst employed by the company and has ensured continued training and opportunities for promotion of disabled persons employed by it.

Greenhouse gas emissions, energy consumption and energy efficiency action

The group's greenhouse gas emissions and energy consumption for the period ended 31 December 2023 are as follows:
Equivalent carbon dioxide emissions as a result of combustion of gas or other consumption of fuel for the purposes of transport is 24,074 tonnes CO2e (1 January 2023: 17,257 tonnes CO2e).
Equivalent carbon dioxide emissions as a result of the purchase of electricity by the group for its own use is 1,939 tonnes CO2e (1 January 2023: 1,401 tonnes CO2e).
The aggregate of the annual quantity of energy consumed from activities for which the group is responsible involving the combustion of fuel for the purposes of transport and the purchase of electricity for its own use is 110,847,429 kWh (1 January 2023: 78,805,248 kWh).
The footprint is calculated in accordance with the standards and principles of international standard EN ISO 14064 parts 1 & 2: 2019. Activity data has been converted into carbon emissions using published emissions factors.
The assessment uses the 'operational control' consolidation approach on the basis that the organisation has the authority to direct operating policies of each entity defined below, and that regulatory compliance ordinarily falls to the responsibility of the operator. The organisational boundary extends to the entire operations of the Group.
Intensity ratios have been calculated from the value of turnover and include all of the energy usage and emissions stated within the values reported above and in accordance with the methodology applied.
The intensity ratio for the group is 0.29 kgCO2e/£ (1 January 2023: 0.34kgCO2/£).
The most significant area of focus, providing material reductions, continues to be the ongoing electrification of our fleet.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Page 6

 
MCGILL'S BUS SERVICE LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsArmstrong Watson Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 


R Roberts
Director

Date: 9 June 2025

Page 7

 
MCGILL'S BUS SERVICE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MCGILL'S BUS SERVICE LIMITED
 

Adverse opinion


We have audited the financial statements of McGills Bus Service Limited (the ‘parent company') and its subsidiaries (the ‘Group’) for the period ended 31 December 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion, because of the significance of the matter described in the basis for adverse opinion section of our report, the group financial statements:


do not give a true and fair view of the state of the Group's affairs as at 31 December 2023 and of the Group's loss for the period then ended;
have not been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have not been prepared in accordance with the requirements of the Companies Act 2006.


Page 8

 
MCGILL'S BUS SERVICE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MCGILL'S BUS SERVICE LIMITED (CONTINUED)


Basis for disclaimer of opinion


The prior period group financial statements contained a disclaimer of opinion for the following reasons. 
In the financial statements for the period ended 2nd January 2022, two subsidiary financial statements contained a qualified opinion as a result of the previous auditors being appointed after their year-end date and therefore not being able to observe the counting of the physical stock as at their year-end dates.
We were not appointed as auditor of the group until after 1 January 2023 and thus did not observe the counting of physical inventories at the end of the prior year. 
Furthermore, the parent entity acquired Midland Bluebird Limited and McGills Scotland East Limited in September 2022. However management were unable to access the books and records for the first two quarters of the period ended 1 January 2023. Therefore we were unable to gain assurance over the profit and loss account and balance sheet in the prior period. Furthermore we were unable to gain the necessary assurance over the prior period opening balances. The lack of assurance obtained as a result of these matters represented a pervasive risk and therefore on this basis the group financial statements did not give a true and fair view. Our opinion on the group financial statements in the previous period was disclaimed accordingly.
The effect of the above points on the current period’s results cannot be determined. Our opinion on the current period’s group financial statements is also modified because of the possible material effect of the prior year matters on the accuracy and comparability of the current period’s figures and the corresponding figures.
Additionally, we were not appointed as auditor of the group until after 31 December 2023 and thus did not observe the counting of physical inventories at the end of the period ended 31 December 2023. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2023, which are included in the group balance sheet at £1,243,927, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.
Whilst we have not identified any material issues from our current year audit procedures over the period end Balance sheet and Statement of comprehensive income with the exception of the stock matter identified above, the lack of assurance over the possible material effect of the prior period matters on the accuracy and comparability of the current period’s figures and the corresponding figures presents a pervasive risk and therefore on this basis the group financial statements do not give a true and fair view. Our opinion on the parent company financial statements is unmodified as a result of stock being immaterial at the parent company level and the aforementioned issues being restricted to the group. 
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 group and the parent 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 adverse opinion on the group financial statements and unqualified opinion on the parent company financial statements.


Page 9

 
MCGILL'S BUS SERVICE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MCGILL'S BUS SERVICE LIMITED (CONTINUED)


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 or the 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.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


As described in the basis for adverse opinion section of our report, due to management being unable to access the books and records for the first two quarters of the previous period we were unable to gain assurance over the profit and loss account and balance sheet in the prior period. The impact on the current year results in a pervasive risk on the accuracy and comparability of the current period’s figures and the corresponding figures. We have concluded that the other information may be materially misstated for the same reason. 
Additionally, as described in the basis for adverse opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £1,243,927. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.


Opinion on other matters prescribed by the Companies Act 2006
 

Except for the effects of the basis for adverse opinion section of our report, in our opinion, based on the work undertaken in the course of the audit: 


the information given in the Group strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Page 10

 
MCGILL'S BUS SERVICE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MCGILL'S BUS SERVICE LIMITED (CONTINUED)


Matters on which we are required to report by exception
 

Notwithstanding our adverse opinion on the Group financial statements, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit performed subject to the pervasive limitation described above, we have not identified material misstatements in the Group strategic report or the Directors' report.


Arising solely from the limitation on the scope of our work relating to inventory and the possible effect of the prior period matters on the accuracy and comparability of the current period’s figures and the corresponding figures  referred to in the basis for adverse opinion above; 
• we have not obtained all the information and explanations that we considered necessary for the purpose    of our audit; and 
• we were unable to determine whether adequate accounting records have been kept. 
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:
• 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;

 
Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 5, 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 Group's and 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 11

 
MCGILL'S BUS SERVICE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MCGILL'S BUS SERVICE LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: 
• the engagement partner ensured that the engagement team collectively had the appropriate competence,  capabilities and knowledge of the Company to identify or recognise non-compliance with applicable laws    and regulations;  
• we identified the laws and regulations applicable to the company through discussions with directors and    other management and review of appropriate industry knowledge. Key laws and regulations we identified   during the audit were the UK Companies Act 2006 and tax legislation, UK employment legislation, UK    health and safety legislation and public service vehicle operator licensing regulations; 
• we assessed the extent of compliance with the laws and regulations identified above by making enquiries  of management; and 
• identified laws and regulations were communicated within the audit team regularly and the team     remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their    knowledge of actual, suspected and alleged fraud; and 
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and    regulations. 
To address the risk of fraud through management bias and override of controls, we: 
• performed analytical procedures as a risk assessment tool to identify any unusual or unexpected     relationships; 
• tested journal entries recorded on the Company’s finance system to identify unusual transactions that    may indicate override of controls; 
• reviewed key judgements and estimates for any evidence of management bias; and 
• reviewed the application of accounting policies with focus on those with heightened estimation     uncertainty. 
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 
• agreeing financial statement disclosures to underlying supporting documentation; and 
• enquiring of management to identify actual and potential litigation and claims. 


 


Page 12

 
MCGILL'S BUS SERVICE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MCGILL'S BUS SERVICE LIMITED (CONTINUED)


Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remains a higher risk of non- detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. 


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Use of our 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 2006Our 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 Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Martin Johnston (Senior statutory auditor)
  
for and on behalf of
Armstrong Watson Audit Limited
 
Chartered Accountants & Statutory Auditors
  
Glasgow

9 June 2025
Page 13

 
MCGILL'S BUS SERVICE LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023

Period ended
31 December
As restated
Period ended
1 January
2023
2023
Note
£
£

  

Turnover
 4 
91,240,205
57,563,710

Cost of sales
  
(68,411,100)
(55,058,161)

Gross profit
  
22,829,105
2,505,549

Administrative expenses
  
(28,919,037)
(18,969,341)

Other operating income
 5 
7,974,640
17,184,352

Operating profit
 6 
1,884,708
720,560

Interest receivable and similar income
 10 
99,773
24,115

Interest payable and similar expenses
 11 
(2,768,554)
(1,357,251)

Loss before taxation
  
(784,073)
(612,576)

Tax on loss
 12 
455,603
(812,704)

Loss for the financial period
  
(328,470)
(1,425,280)

  

Total comprehensive income for the period
  
(328,470)
(1,425,280)

(Loss) for the period attributable to:
  

Owners of the parent Company
  
(328,470)
(1,425,280)

  
(328,470)
(1,425,280)

Total comprehensive income for the period attributable to:
  

Owners of the parent Company
  
(328,470)
(1,425,280)

  
(328,470)
(1,425,280)

The notes on pages 22 to 50 form part of these financial statements.

Page 14

 
MCGILL'S BUS SERVICE LIMITED
REGISTERED NUMBER: SC027238

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

31 December
As restated
1 January
2023
2023
Note
£
£

Fixed assets
  

Intangible assets
 13 
1,160,096
1,620,130

Tangible assets
 14 
69,738,392
53,543,028

  
70,898,488
55,163,158

Current assets
  

Stocks
 16 
1,243,927
1,433,698

Debtors: amounts falling due within one year
 17 
15,732,507
15,847,289

Cash at bank and in hand
 18 
15,283,643
17,162,798

  
32,260,077
34,443,785

Creditors: amounts falling due within one year
 19 
(38,386,334)
(31,729,537)

Net current (liabilities)/assets
  
 
 
(6,126,257)
 
 
2,714,248

Total assets less current liabilities
  
64,772,231
57,877,406

Creditors: amounts falling due after more than one year
 20 
(55,781,372)
(48,572,508)

Provisions for liabilities
  

Deferred taxation
 23 
(1,205,151)
(1,119,984)

Other provisions
 24 
(815,048)
(885,784)

  
 
 
(2,020,199)
 
 
(2,005,768)

Net assets
  
6,970,660
7,299,130


Capital and reserves
  

Called up share capital 
 25 
19,000
19,000

Capital redemption reserve
 26 
6,000
6,000

Other reserves
 26 
7,000
7,000

Profit and loss account
 26 
6,938,660
7,267,130

Equity attributable to owners of the parent Company
  
6,970,660
7,299,130


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 

R Roberts
Director

Date: 9 June 2025

The notes on pages 22 to 50 form part of these financial statements.

Page 15

 
MCGILL'S BUS SERVICE LIMITED
REGISTERED NUMBER: SC027238

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

31 December
1 January
2023
2023
Note
£
£

Fixed assets
  

Tangible assets
 14 
50,473,222
33,133,744

Investments
 15 
23,913,957
24,185,545

  
74,387,179
57,319,289

Current assets
  

Stocks
 16 
313,541
403,872

Debtors: amounts falling due within one year
 17 
11,094,841
11,271,009

Cash at bank and in hand
 18 
9,812,770
6,401,646

  
21,221,152
18,076,527

Creditors: amounts falling due within one year
 19 
(23,188,638)
(14,718,259)

Net current (liabilities)/assets
  
 
 
(1,967,486)
 
 
3,358,268

Total assets less current liabilities
  
72,419,693
60,677,557

  

Creditors: amounts falling due after more than one year
 20 
(60,533,262)
(49,228,783)

Provisions for liabilities
  

Deferred taxation
 23 
(1,077,357)
(1,394,568)

Other provisions
 24 
(262,465)
(559,871)

  
 
 
(1,339,822)
 
 
(1,954,439)

Net assets
  
10,546,609
9,494,335

Page 16

 
MCGILL'S BUS SERVICE LIMITED
REGISTERED NUMBER: SC027238

COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

31 December
1 January
2023
2023
Note
£
£


Capital and reserves
  

Called up share capital 
 25 
19,000
19,000

Capital redemption reserve
 26 
6,000
6,000

Other reserves
 26 
7,000
7,000

Profit and loss account brought forward
  
9,462,335
8,688,869

Profit for the period
  
1,052,274
773,466

Profit and loss account carried forward
  
10,514,609
9,462,335

  
10,546,609
9,494,335


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


R Roberts
Director

Date: 9 June 2025

The notes on pages 22 to 50 form part of these financial statements.

Page 17
 

 
MCGILL'S BUS SERVICE LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023



Called up share capital
Capital redemption reserve
Revaluation reserve
Profit and loss account
Equity attributable to owners of parent Company
Total equity


£
£
£
£
£
£



At 1 January 2022
19,000
6,000
7,000
8,692,410
8,724,410
8,724,410



Comprehensive income for the period


Loss for the period
-
-
-
(1,425,280)
(1,425,280)
(1,425,280)

Total comprehensive income for the period
-
-
-
(1,425,280)
(1,425,280)
(1,425,280)



Total transactions with owners
-
-
-
-
-
-





At 2 January 2023 (as previously stated)
19,000
6,000
7,000
7,528,182
7,560,182
7,560,182


Prior year adjustment - correction of error
-
-
-
(261,052)
(261,052)
(261,052)



At 2 January 2023 (as restated)
19,000
6,000
7,000
7,267,130
7,299,130
7,299,130



Comprehensive income for the period


Loss for the period
-
-
-
(328,470)
(328,470)
(328,470)

Total comprehensive income for the period
-
-
-
(328,470)
(328,470)
(328,470)



Total transactions with owners
-
-
-
-
-
-



At 31 December 2023
19,000
6,000
7,000
6,938,660
6,970,660
6,970,660



The notes on pages 22 to 50 form part of these financial statements.

Page 18

 

 
MCGILL'S BUS SERVICE LIMITED


 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023



Called up share capital
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity


£
£
£
£
£



At 1 January 2022 (as previously stated)
19,000
6,000
7,000
8,687,869
8,719,869


Prior year adjustment - correction of error
-
-
-
1,000
1,000



At 1 January 2022 (as restated)
19,000
6,000
7,000
8,688,869
8,720,869



Comprehensive income for the period


Profit for the period
-
-
-
773,466
773,466

Total comprehensive income for the period
-
-
-
773,466
773,466



Total transactions with owners
-
-
-
-
-





At 2 January 2023
19,000
6,000
7,000
9,462,335
9,494,335



Comprehensive income for the period


Profit for the period
-
-
-
1,052,274
1,052,274

Total comprehensive income for the period
-
-
-
1,052,274
1,052,274



At 31 December 2023
19,000
6,000
7,000
10,514,609
10,546,609



The notes on pages 22 to 50 form part of these financial statements.

Page 19
 
MCGILL'S BUS SERVICE LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023

Period ended
31 December
As restated
Period ended
1 January
2023
2023
£
£

Cash flows from operating activities

Loss for the financial period
(784,073)
(612,576)

Adjustments for:

Amortisation of intangible assets
187,447
137,181

Depreciation of tangible assets
9,544,170
14,626,004

Impairments of fixed assets
292,000
1,553,197

Loss/(profit) on disposal of tangible assets
(382,875)
127,896

Interest paid
2,768,554
1,357,251

Interest received
(99,773)
(24,115)

Decrease/(Increase) in stocks
189,771
(94,509)

Decrease in debtors
125,410
1,221,961

(Decrease) in creditors
(566,595)
(9,933,166)

Increase in amounts owed to group companies
4,128,527
4,564,984

(Decrease)/increase in provisions
(70,736)
485,784

Corporation tax received/(paid)
-
(57,060)

Net cash generated from operating activities

15,331,827
13,352,832


Cash flows from investing activities

Purchase of intangible fixed assets
(19,412)
-

Purchase of tangible fixed assets
(9,389,576)
(8,017,959)

Sale of tangible fixed assets
474,581
5,500

Interest received
99,773
24,115

HP interest paid
(2,556,140)
(1,182,721)

Government grants received
1,284,557
8,425,218

Cash acquired / (paid) in business combinations
-
(2,025,713)

Net cash from investing activities

(10,106,217)
(2,771,560)
Page 20

 
MCGILL'S BUS SERVICE LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Period ended
31 December
As restated
Period ended
1 January

2023
2023

£
£



Cash flows from financing activities

Repayment of loans
(2,500,000)
(1,957,812)

Repayment of/new finance leases
(4,392,351)
(3,357,606)

Interest paid
(212,414)
(174,530)

Net cash used in financing activities
(7,104,765)
(5,489,948)

Net (decrease)/increase in cash and cash equivalents
(1,879,155)
5,091,324

Cash and cash equivalents at beginning of period
17,162,798
12,071,474

Cash and cash equivalents at the end of period
15,283,643
17,162,798


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
15,283,643
17,162,798

15,283,643
17,162,798



CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 31 DECEMBER 2023





At 2 January 2023
Cash flows
New finance leases
At 31 December 2023
£

£

£

£

Cash at bank and in hand

17,162,798

(1,879,155)

-

15,283,643

Debt due within 1 year

(700,000)

600,000

-

(100,000)

Debt due after 1 year

(2,425,000)

1,900,000

-

(525,000)

Finance leases

(30,140,881)

4,392,351

(16,441,664)

(42,190,194)


(16,103,083)
5,013,196
(16,441,664)
(27,531,551)

The notes on pages 22 to 50 form part of these financial statements.

Page 21

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

1.


General information

McGill's Bus Service Limited is a private company, limited by shares, registered in Scotland. The company's registered number and registered office address can be found on the General Information page.
The principal activities of the group are to provide urban, rural and inter-city stage carriage bus services across a wide geographical area from Largs on the Clyde coast through Inverclyde, Renfrewshire, East Renfrewshire, Glasgow, North Lanarkshire, South Lanarkshire, the Central Belt and Lothians of Scotland, and Dundee and the Tayside area.
The presentation currency of the financial statements is Pound Sterling (£).

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 30 December 2014.

Page 22

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

At the time of approving the financial statements, the Directors have a reasonable expectation that
the Group and 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.
The information used to make this assessment is the preparation of forecasts to at least twelve
months from the date of the financial statements approval. These showed that the Company has a
sufficient cash position for the foreseeable future and has sufficient funding facilities available.
On this basis, the Directors are confident that the Group and Company will continue to meet its liabilities as they fall due for at least twelve months from the date of approval of the financial statements and the Group and Company will continue as a going concern for at least this twelve month period.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Group as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Page 23

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Sale and leaseback

Where a sale and leaseback transaction results in a finance lease, no gain is immediately recognised for any excess of sales proceeds over the carrying amount of the asset. Instead, the proceeds are presented as a liability and subsequently measured at amortised cost using the effective interest method.
When a sale and leaseback transaction results in an operating lease, and it is clear that the transition is established at fair value any profit or loss is recognised immediately. If the sale price is below fair value, any profit or loss is recognised immediately unless the loss is compensated for by the future lease payments at below market price. In that case any such loss is amortised in proportion to the lease payments over the period for which the asset is expected to be used. If the sale price is above fair value, the excess over fair value is amortised over the period for which the asset is expected to be used.

 
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

 
2.9

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

Borrowing costs

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

 
2.12

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 24

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.14

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of income and retained earnings over its useful economic life of 10 years.
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Computer software
-
10
years
Goodwill
-
10
years

Page 25

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.15

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
Straight line over 50 years
Plant and machinery
-
Straight line over 3 to 10 years
Motor vehicles
-
Straight line over 5 to 15 years
Fixtures and fittings
-
Straight line from 3 to 5 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.16

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.17

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.18

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 26

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.19

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.20

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.21

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.22

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.23

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.24

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision
Page 27

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.24
Financial instruments (continued)

for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 28

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.24
Financial instruments (continued)

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

  
2.25

Insurance provision

Insurance provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. The Group's policy is to self-insure low value claims. Major claims are covered through third party insurance policies.
 

  
2.26

Business combinations

The Group applies the acquisition method in accounting for business combinations. The consideration transferred by the Group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the equity interests issued by the Group, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred. 
The Group recognises identifiable assets acquired and liabilities assumed in a business combination. Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values. 

  
2.27

Prior period adjustment

Prior year adjustments relate to the correction of material prior period errors. Such accounting adjustments reflect the change in the opening balance sheet following the adoption of the new policy. Where a prior year adjustment is required to correct a material prior period error, this is made in the first financial statements authorised for issue after that error is discovered. 

Page 29

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies 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 values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects both current and future periods.
Measurement of provision for accident claims 
The estimation of the self-insurance provision is based on an assessment of the expected settlement on known claims. The Group makes assumptions concerning these judgemental matters based on its own and its third party claims team's past experience of similar incidents as well as the advice of its lawyers and insurers.
Due to the uncertain nature of insurance claims, any provision made may be excessive or insufficient to cover the final settled value. However, analysis of settlement history for the year suggests that the total of finalised settled claims is broadly similar to the total value of claims submitted.
The Directors have recognised as a liability in the accounts the undiscounted financial impact of the expected resolution of any outstanding claims on the basis of all information currently available. The directors do not consider the impact of discounting to be material.


4.


Turnover

An analysis of turnover by class of business is as follows:


Period ended
31 December
Period ended
1 January
2023
2023
£
£

Sales
91,240,205
57,563,710

91,240,205
57,563,710


Analysis of turnover by country of destination:

Period ended
31 December
Period ended
1 January
2023
2023
£
£

United Kingdom
91,240,205
57,563,710

91,240,205
57,563,710


Page 30

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

5.


Other operating income

Period ended
31 December
Period ended
1 January
2023
2023
£
£

Other operating income
4,000
758,747

Government grants receivable
7,910,204
16,420,384

Insurance claims receivable
16,601
5,221

Profit on disposal of tangible assets
43,835
-

7,974,640
17,184,352



6.


Operating profit

The operating profit is stated after charging:

Period ended
31 December
Period ended
1 January
2023
2023
£
£

Operating Lease Rentals-Plant and Machinery
430,602
306,910

Depreciation- Fixed Assets
9,544,170
14,626,004

Goodwill Amortisation
187,447
137,181

Auditors Remuneration
187,750
192,500

Accountancy Fees
19,250
34,500


7.


Auditors' remuneration

During the period, the Group obtained the following services from the Company's auditors and their associates:


Period ended
31 December
Period ended
1 January
2023
2023
£
£

Fees payable to the Company's auditors and their associates for the audit of the consolidated and parent Company's financial statements
187,750
192,500

Fees payable to the Company's auditors and their associates in respect of:

Taxation compliance services
19,250
17,250

All non-audit services not included above
-
17,250

Page 31

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
31 December
Group
1 January
Company
31 December
Company
1 January
2023
2023
2023
2023
£
£
£
£


Wages and salaries
45,016,222
28,884,692
18,946,001
17,615,246

Social security costs
4,268,716
3,654,331
1,997,877
1,929,852

Cost of defined contribution scheme
1,217,684
1,051,389
389,941
354,457

50,502,622
33,590,412
21,333,819
19,899,555


The average monthly number of employees, including the directors, during the period was as follows:



Group
Group
Company
Company
     Period ended
     31 December
     Period ended
       1 January
     Period ended
     31 December
     Period ended
       1 January
        2023
        2023
        2023
        2023
            No.
            No.
            No.
            No.









Directors
3
3
3
3



Administration
101
80
54
44



Drivers and Mechanics
1,273
1,279
502
508

1,377
1,362
559
555


9.


Directors' remuneration

Period ended
31 December
Period ended
1 January
2023
2023
£
£

Directors' emoluments
618,440
584,060

Group contributions to defined contribution pension schemes
3,964
4,040

622,404
588,100


During the period retirement benefits were accruing to no directors (2022 - NIL) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £216,200 (2023 - £204,050).

Page 32

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

10.


Interest receivable

Period ended
31 December
Period ended
1 January
2023
2023
£
£


Other interest receivable
99,773
24,115

99,773
24,115


11.


Interest payable and similar expenses

Period ended
31 December
Period ended
1 January
2023
2023
£
£


Bank interest payable
1,476
1,356

Other loan interest payable
206,533
157,745

Finance leases and hire purchase contracts
2,556,140
1,182,721

Other interest payable
4,405
15,429

2,768,554
1,357,251

Page 33

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

12.


Taxation


Period ended
31 December
Period ended
1 January
2023
2023
£
£

Corporation tax


Current tax on taxable profits for the year
(540,770)
1,397,073


(540,770)
1,397,073


Total current tax
(540,770)
1,397,073

Deferred tax


Origination and reversal of timing differences
27,417
(584,369)

Adjustments made in respect of prior periods
57,750
-

Total deferred tax
85,167
(584,369)


Tax on loss
(455,603)
812,704
Page 34

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the period

The tax assessed for the period is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 23.53% (1 Jan 2023 - 19%). The differences are explained below:

Period ended
31 December
Period ended
1 January
2023
2023
£
£


Loss on ordinary activities before tax
(784,074)
(612,573)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.53% (2023 - 19%)
(184,493)
(116,389)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
485,545
1,761,244

Capital allowances for period in excess of depreciation
(1,256,930)
548,045

Utilisation of tax losses
653,133
-

Adjustments to tax charge in respect of prior periods
(344,943)
-

Impact on subsidiary tax from prior periods
-
92,122

Non-taxable goodwill amortisation
44,183
25,650

Non-taxable income
-
(1,883,898)

Changes in deferred tax rates leading to an increase in tax charge
(4,790)
33,131

Deferred tax not recognised
108,228
318,809

Changes in provisions leading to a decrease in the tax charge
704
-

R&D expenditure credits
43,760
-

Deferred tax
-
33,990

Total tax charge for the period
(455,603)
812,704


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 35

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

13.


Intangible assets

Group







Computer software
Goodwill
Total

£
£
£



Cost


At 2 January 2023
1,281
13,435,464
13,436,745


Additions
-
19,412
19,412


Disposals
(950)
-
(950)



At 31 December 2023

331
13,454,876
13,455,207



Amortisation


At 2 January 2023
1,281
11,815,334
11,816,615


Charge for the period on owned assets
-
187,447
187,447


On disposals
(950)
-
(950)


Impairment charge
-
292,000
292,000



At 31 December 2023

331
12,294,781
12,295,112



Net book value



At 31 December 2023
-
1,160,095
1,160,095



At 1 January 2023
-
1,620,130
1,620,130

Goodwill contains £11,560,724 which is fully amortised and relates to the acquisitions of bus routes in previous periods.



Page 36

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
 
           13.Intangible assets (continued)

Company






Goodwill

£



Cost


At 2 January 2023
11,560,724



At 31 December 2023

11,560,724



Amortisation


At 2 January 2023
11,560,724



At 31 December 2023

11,560,724



Net book value



At 31 December 2023
-



At 1 January 2023
-

Goodwill contains £11,560,724 which is fully amortised and relates to the acquisitions of bus routes in previous periods.

Page 37

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

14.


Tangible fixed assets

Group








Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 2 January 2023
5,082,279
7,775,998
94,810,705
969,062
108,638,044


Additions
-
1,853,027
23,852,167
126,046
25,831,240


Disposals
-
-
(8,210,511)
-
(8,210,511)



At 31 December 2023

5,082,279
9,629,025
110,452,361
1,095,108
126,258,773



Depreciation


At 2 January 2023
385,381
4,047,729
49,904,837
757,069
55,095,016


Charge for the period on owned assets
407,040
757,493
8,283,553
96,084
9,544,170


Disposals
-
-
(8,118,805)
-
(8,118,805)



At 31 December 2023

792,421
4,805,222
50,069,585
853,153
56,520,381



Net book value



At 31 December 2023
4,289,858
4,823,803
60,382,776
241,955
69,738,392



At 1 January 2023
4,696,898
3,728,269
44,905,868
211,993
53,543,028

Depreciation is not provided on the land element of freehold property. The land value of freehold property amounts to £425,000 (1 January 2023: £425,000).

The net book value of tangible fixed assets includes £59,420,915 (1 January 2023: £37,931,543) in respect of assets held under hire purchase or finance lease arrangements.

Page 38

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

           14.Tangible fixed assets (continued)


Company









Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£

Cost or valuation


At 2 January 2023
2,444,244
4,916,276
58,170,687
849,408
66,380,615


Additions
-
1,753,334
22,407,031
123,186
24,283,551


Transfers intra group
-
-
2,052,502
-
2,052,502


Disposals
-
-
(7,682,043)
-
(7,682,043)



At 31 December 2023

2,444,244
6,669,610
74,948,177
972,594
85,034,625



Depreciation


At 2 January 2023
594,765
2,258,157
29,679,348
714,601
33,246,871


Charge for the period on owned assets
52,791
537,148
4,701,316
69,868
5,361,123


Transfers intra group
-
-
1,963,265
-
1,963,265


Disposals
-
-
(6,009,856)
-
(6,009,856)



At 31 December 2023

647,556
2,795,305
30,334,073
784,469
34,561,403



Net book value



At 31 December 2023
1,796,688
3,874,305
44,614,104
188,125
50,473,222



At 1 January 2023
1,849,479
2,658,119
28,491,339
134,807
33,133,744






The net book value of tangible fixed assets includes £49,012,669 (1 January 2023: £29,865,021) in respect of assets held under hire purchase or finance lease arrangements.

Page 39

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

15.


Fixed asset investments

Company








Investments in subsidiary companies

£



Cost or valuation


At 2 January 2023
24,185,545


Additions
20,412


Amounts written off
(292,000)



At 31 December 2023
23,913,957





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Loch Lomond Bus Services Limited
99 Earnhill Road, Larkfield Industrial Estate, Greenock, Renfrewshire, PA16 0EQ
Ordinary
100%
McGill's City Connect Limited
99 Earnhill Road, Larkfield Industrial Estate, Greenock, Renfrewshire, PA16 0EQ
Ordinary
100%
Smoothie Cruisers Limited
99 Earnhill Road, Larkfield Industrial Estate, Greenock, Renfrewshire, PA16 0EQ
Ordinary
100%
Taybus Holdings Limited
44/48 East Dock Street, Dundee, DD1 3JS
Ordinary
100%
Tayside Public Transport Company Limited
44/48 East Dock Street, Dundee, DD1 3JS
Ordinary
100%
McGill's Scotland East Limited
Carmuirs House, 300 Stirling Road, Larbert, Stirlingshire, FK5 3NJ
Ordinary
100%
Midland Bluebird Limited
Carmuirs House, 300 Stirling Road, Larbert, Stirlingshire, FK5 3NJ
Ordinary
100%
Eastern Scottish Omnibuses Limited
Carmuirs House, 300 Stirling Road, Larbert, Stirlingshire, FK5 3NJ
Ordinary
100%
Loch Lomond Travel Limited
99 Earnhill Road, Larkfield Industrial Estate, Greenock, Renfrewshire, PA16 0EQ
Ordinary
100%

Page 40

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
Subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the period ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Loch Lomond Bus Services Limited
91,312
(226,537)

McGill's City Connect Limited
2
-

Smoothie Cruisers Limited
2
-

Taybus Holdings Limited
296,000
-

Tayside Public Transport Company Limited
16,898,339
3,582,361

McGill's Scotland East Limited
859,234
(4,181,405)

Midland Bluebird Limited
5,864,165
(367,386)

Eastern Scottish Omnibuses Limited
2,200,000
-

Loch Lomond Travel Limited
1,000
-


16.


Stocks

Group
31 December
Group
1 January
Company
31 December
Company
1 January
2023
2023
2023
2023
£
£
£
£

Raw materials and consumables
1,243,927
1,433,698
313,541
403,872

1,243,927
1,433,698
313,541
403,872


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 41

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

17.


Debtors



Group
31 December
Group
1 January
Company
31 December
Company
1 January
2023
2023
2023
2023
£
£
£
£

Due within one year

Trade debtors
3,191,552
5,480,147
1,087,368
958,468

Amounts owed by group undertakings
-
-
1,878,068
2,758,126

Other debtors
10,896,291
8,943,329
6,861,667
7,380,013

Prepayments and accrued income
1,644,664
1,423,813
1,267,738
174,402

15,732,507
15,847,289
11,094,841
11,271,009



18.


Cash and cash equivalents

Group
31 December
Group
1 January
Company
31 December
Company
1 January
2023
2023
2023
2023
£
£
£
£

Cash at bank and in hand
15,283,643
17,162,798
9,812,770
6,401,646

15,283,643
17,162,798
9,812,770
6,401,646



19.


Creditors: Amounts falling due within one year

Group
31 December
Group
1 January
Company
31 December
Company
1 January
2023
2023
2023
2023
£
£
£
£

Bank loans
100,000
700,000
100,000
700,000

Obligations under finance lease and hire purchase contracts
5,442,789
4,036,214
3,316,367
2,162,191

Trade creditors
4,838,935
2,486,359
2,355,651
826,040

Amounts owed to group undertakings
11,220,923
7,092,396
5,410,407
1,653,852

Corporation tax
896,647
1,420,525
204,068
499,399

Other taxation and social security
3,123,878
2,585,459
1,952,962
375,444

Other creditors
6,608,669
4,953,776
5,604,983
4,106,766

Accruals and deferred income
6,154,493
8,454,808
4,244,200
4,394,567

38,386,334
31,729,537
23,188,638
14,718,259


Page 42

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

20.


Creditors: Amounts falling due after more than one year

Group
31 December
Group
1 January
Company
31 December
Company
1 January
2023
2023
2023
2023
£
£
£
£

Bank loans
525,000
2,425,000
525,000
2,425,000

Net obligations under finance leases and hire purchase contracts
36,747,405
26,104,668
28,713,124
17,445,382

Amounts owed to group undertakings
-
-
14,313,634
10,982,748

Other creditors
1,666,667
3,333,334
1,666,667
3,333,334

Government grants received
16,842,300
16,709,506
15,314,837
15,042,319

55,781,372
48,572,508
60,533,262
49,228,783





21.


Loans


Analysis of the maturity of loans is given below:


Group
31 December
Group
1 January
Company
31 December
Company
1 January
2023
2023
2023
2023
£
£
£
£

Amounts falling due within one year

Bank loans
100,000
700,000
100,000
700,000


100,000
700,000
100,000
700,000

Amounts falling due 1-2 years

Bank loans
525,000
700,000
525,000
700,000


525,000
700,000
525,000
700,000

Amounts falling due 2-5 years

Bank loans
-
1,725,000
-
1,725,000


-
1,725,000
-
1,725,000


625,000
3,125,000
625,000
3,125,000


Bank loans are secured by a floating charge over the assets and undertakings of the Company and a standard security over four of the company's properties.

Page 43

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

22.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group

31 December
Group
1 January
Company

31 December
Company
1 January
2023
2023
2023
2023
£
£
£
£

Within one year
5,442,789
4,036,214
3,316,367
2,162,191

2-5 years
15,066,616
11,957,090
10,526,246
6,493,978

Over 5 years
21,680,790
14,147,577
18,186,878
10,951,404

42,190,195
30,140,881
32,029,491
19,607,573

Page 44

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

23.


Deferred taxation


Group



2023


£






At beginning of year
(1,119,984)


Charged to profit or loss
(85,167)



At end of year
(1,205,151)

Company


2023


£






At beginning of year
(1,394,568)


Charged to profit or loss
317,211



At end of year
(1,077,357)

Group
31 December
Group
1 January
Company
31 December
Company
1 January
2023
2023
2023
2023
£
£
£
£

Accelerated capital allowances
(1,161,600)
(1,157,061)
(1,092,153)
(1,431,645)

Short term timing differences
(43,551)
37,077
14,796
37,077

(1,205,151)
(1,119,984)
(1,077,357)
(1,394,568)

Page 45

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

24.


Provisions


Group



Dilapidation provision
Insurance provision
Total

£
£
£





At 2 January 2023
132,000
753,784
885,784


Charged to profit or loss
-
(70,736)
(70,736)



At 31 December 2023
132,000
683,048
815,048

Dilapidation provision 
The dilapidation provision represents expected costs of returning leased assets to their pre-lease condition, as stipulated by the terms of the lease agreement.
Insurance provision
The insurance provision relates to liabilities where there is uncertainty about the amount and the exact timing of any settlement. The group self-insures bus-related insurance claims up to a certain individual claim value and up to an annual aggregate value of annual claims.
 
The directors have recognised as a liability in the accounts a plausible, cumulative estimate of claims made but not settled up to the balance sheet date. This liability has been quantified on the basis of all information currently available, business experience, legal input and the supporting advice of the group’s specialist insurance brokers. Claim settlement will likely be made within 5 years of the claim becoming live. No discounting has been applied to the amount of the claim provision as the impact of this is not considered material.

Page 46

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
Company


Insurance provision
Total

£
£





At 2 January 2023
559,871
559,871


Charged to profit or loss
(297,406)
(297,406)



At 31 December 2023
262,465
262,465

Insurance provision
The insurance provision relates to liabilities where there is uncertainty about the amount and the exact timing of any settlement. The group self-insures bus-related insurance claims up to a certain individual claim value and up to an annual aggregate value of annual claims.
 
The directors have recognised as a liability in the accounts a plausible, cumulative estimate of claims made but not settled up to the balance sheet date. This liability has been quantified on the basis of all information currently available, business experience, legal input and the supporting advice of the group’s specialist insurance brokers. Claim settlement will likely be made within 5 years of the claim becoming live. No discounting has been applied to the amount of the claim provision as the impact of this is not considered material.
Page 47

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

25.


Share capital

31 December
1 January
2023
2023
£
£
Allotted, called up and fully paid



19,000 (2023 - 19,000) Ordinary shares of £1.00 each
19,000
19,000



26.


Reserves

Revaluation reserve

A non distributable reserve which holds any unrealised surpluses on property revaluations.

Capital redemption reserve

A non distributable reserve which holds amounts transferred as a result of the redemption or purchase of
the company's own shares.

Profit and loss account

Includes all current and prior period retained profit and losses.


27.


Prior year adjustment

In the 2 January 2022 period, a write off of creditors was recognised in error of £322,287 within Tayside Public Transport Company Limited. This has been corrected by recognising a prior year adjustment to reinstate the creditor. The corporation tax effect of this adjustment was a decrease of tax charged of £61,235. The effect of this prior year adjustment on brought forward reserves of the Group was £261,052. 


28.


Restatement of comparatives

Provisions of £193,913 held in creditors in the prior year within Midland Bluebird Limited have been reclassified from creditors to provisions. The effect on brought forward reserves of the group as a result was Nil.
A restatement of group prior period comparatives has been recognised in these financial statements to reclassify balances previously presented as loans to obligations under finance lease and hire purchase contracts within Tayside Public Transport Company Limited. The total balance reclassified in the prior period was £3,463,043 split between creditors falling due within one year £1,087,236 and creditors falling due after more than one year £2,375,808. The effect on brought forward reserves of this restatement of comparatives is Nil.

Page 48

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

29.


Pension commitments

The company operates a defined contributions pension scheme. The total employer's contributions made in respect of this in the year was £389,941 (1 January 2023: £487,051). Total contributions of £59,184 (1 January 2023: £148,307) were payable at the reporting date.
Across the group, total employer's contributions made in the year amounted to £1,217,684 (1 January 2023: £1,250,388). Total contributions of £329,223 (1 January 2023: £519,673) were payable at the reporting date.


30.


Commitments under operating leases

At 31 December 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
31 December
Group
1 January
Company
31 December
Company
1 January
2023
2023
2023
2023
£
£
£
£

Not later than 1 year
383,920
497,659
32,000
145,739

Later than 1 year and not later than 5 years
1,270,110
1,422,078
41,000
124,000

Later than 5 years
4,321,817
4,604,771
-
-

5,975,847
6,524,508
73,000
269,739


31.


Transactions with directors

At 31 December 2023 the Directors owed the company a total of £1,511,313 (1 January 2023: £1,392,472). A commercial rate of interest is charged on these balances. 

Page 49

 
MCGILL'S BUS SERVICE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

32.


Related party transactions

The Company has taken advantage of the exemption, under the terms of Financial Reporting 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’, not to disclose related party transactions with wholly owned subsidiaries within the group.
During the period the Company was charged £975,000 (1 January 2023: £975,000) by an associated company for management charges. 
During the period the Company made cash advances of £3,400,000 (1 January 2023: £Nil) to an associated company.
At the balance sheet date, amounts owed by the Company to associated companies was  £2,882,918    (1 January 2023: £2,068,750).
At the balance sheet date, amounts owed by associated companies to the Company was £3,578,588     (1 January 2023: £727,162).
During the period the Group was charged £4,550,000 (1 January 2023: £1,722,822) by an associated company for management charges. 
During the year the Group was refunded £27,945 (1 January 2023 : £Nil) by an associated company for management recharges. 
During the period the Group made cash advances of £3,400,000 (01 January 2023 : £Nil) to an associated company.
At the balance sheet date, amounts owed by the Group to associated companies was £6,712,850           (1 January 2023: £2,760,681).
At the balance sheet date, amounts owed by associated companies to the Group was £3,660,643         (01 January 2023 : £727,162).
During the period, a number of buses with Nil book value were disposed of to a Company under common control. There were no proceeds received as part of the disposal.


33.


Controlling party

The company is a wholly owned subsidiary of Arranglen Limited, a company registered in Scotland. Arranglen Limited is a wholly owned subsidiary of Dalglen (No 1812) Limited, a company registered in Scotland. Both of these companies have their registered office at 99 Earnhill Road, Greenock, PA16 0EQ.
 
Dalglen (No 1812) Limited is a private limited company and its does not have an ultimate controlling party.


Page 50