Company registration number SC142670 (Scotland)
LINEAR PROJECTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
LINEAR PROJECTS LIMITED
COMPANY INFORMATION
Directors
S Holmes
D S Zahra
G D Holmes
T Steele
S Paterson
K Robinson
Company number
SC142670
Registered office
7 Maxim Office Park
Parklands Avenue
Eurocentral
Motherwell
ML1 4WQ
Auditor
Azets Audit Services
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
LINEAR PROJECTS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Income statement
7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 23
LINEAR PROJECTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Fair review of the business
The company results for the year show a pre-tax loss of £0.85m (2023 £1.4m) on turnover of £24.9m (2023 £30.8m). The company has a net balance sheet value of £3.31m at 30 September 2024 (2023 £4.42m).
Principal risks and uncertainties
The company is exposed to a variety of business risks including competition; the Scottish and UK economy; liquidity risk and supply chain.
Economic Risk
The company is exposed to local and national market conditions. The directors closely follow economic indicators and consider the impact of economic movements when assessing new contract opportunities.
Liquidity Risk
The company manages its liquidity through a mixture of cash reserves and bank loans. The objective is to ensure a mix of funding offering flexibility and cost effectiveness to manage the needs of the company.
Supply Chain
The company has a strong working relationship with its suppliers and sub contractors and we believe these place the company in a strong position to continue trading profitably.
Future Outlook
The strength of our close and transparent customer and supplier relationships, alongside the continued support of our shareholders, puts the company in a strong position to continue to grow and move forward once the current disruption has ended.
Key Performance Indicators
The company regularly monitors key performance indicators including turnover, gross profit, gross margin per contract and EBITDA.
S Paterson
Director
24 June 2025
LINEAR PROJECTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company continued to be that of joinery contractors and shop fitters.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends of £250,000 (2023: £250,000) were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
S Holmes
D S Zahra
G D Holmes
T Steele
S Paterson
K Robinson
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management and exposure to risks and uncertainties.
LINEAR PROJECTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
S Paterson
Director
24 June 2025
LINEAR PROJECTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LINEAR PROJECTS LIMITED
- 4 -
Opinion
We have audited the financial statements of Linear Projects Limited (the 'company') for the year ended 30 September 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
LINEAR PROJECTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LINEAR PROJECTS LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
LINEAR PROJECTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LINEAR PROJECTS LIMITED
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Jennifer Alexander
Senior Statutory Auditor
For and on behalf of Azets Audit Services
24 June 2025
Chartered Accountants
Statutory Auditor
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
LINEAR PROJECTS LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
24,914,382
30,761,518
Cost of sales
(22,881,746)
(29,997,288)
Gross profit
2,032,636
764,230
Administrative expenses
(2,817,240)
(2,162,026)
Other operating income
3,875
18,889
Operating loss
4
(780,729)
(1,378,907)
Interest receivable and similar income
7
675
3,174
Interest payable and similar expenses
8
(71,568)
(22,266)
Loss before taxation
(851,622)
(1,397,999)
Tax on loss
9
(302)
131,053
Loss for the financial year
(851,924)
(1,266,946)
The income statement has been prepared on the basis that all operations are continuing operations.
LINEAR PROJECTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
£
£
Loss for the year
(851,924)
(1,266,946)
Other comprehensive income
-
-
Total comprehensive income for the year
(851,924)
(1,266,946)
LINEAR PROJECTS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
11
9
9
Current assets
Debtors
13
8,445,453
11,025,061
Cash at bank and in hand
1,029,920
690,331
9,475,373
11,715,392
Creditors: amounts falling due within one year
14
(5,158,666)
(6,591,133)
Net current assets
4,316,707
5,124,259
Total assets less current liabilities
4,316,716
5,124,268
Creditors: amounts falling due after more than one year
15
(1,003,553)
(709,181)
Net assets
3,313,163
4,415,087
Capital and reserves
Called up share capital
20
23
23
Capital redemption reserve
101
101
Profit and loss reserves
3,313,039
4,414,963
Total equity
3,313,163
4,415,087
The financial statements were approved by the board of directors and authorised for issue on 24 June 2025 and are signed on its behalf by:
S Paterson
Director
Company Registration No. SC142670
LINEAR PROJECTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
23
101
5,931,909
5,932,033
Year ended 30 September 2023:
Loss and total comprehensive income for the year
-
-
(1,266,946)
(1,266,946)
Dividends
10
-
-
(250,000)
(250,000)
Balance at 30 September 2023
23
101
4,414,963
4,415,087
Year ended 30 September 2024:
Loss and total comprehensive income for the year
-
-
(851,924)
(851,924)
Dividends
10
-
-
(250,000)
(250,000)
Balance at 30 September 2024
23
101
3,313,039
3,313,163
LINEAR PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
1
Accounting policies
Company information
Linear Projects Limited is a private company limited by shares incorporated in Scotland. The registered office is 7 Maxim Office Park, Parklands Avenue, Eurocentral, Motherwell, ML1 4WQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Linear UK Group Limited. These consolidated financial statements are available from its registered office, 7 Maxim Office Park, Parklands Avenue, Eurocentral, Motherwell, ML1 4WQ.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
LINEAR PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.2
Going concern
The directortrues are required to prepare the statutory financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. In satisfaction of this responsibility the directors have considered the company's ability to meet its liabilities as they fall due.
The company meets its day to day working capital requirements through existing bank facilities. Management information tools including budgets and cash flow forecasts are used to monitor and manage current and future liquidity.
The company has also paid special attention to the conflict in Ukraine as well as the impact of the UK leaving the European union. The company has taken appropriate steps to mitigate any risks to delivery and cost associated with both these areas of concern. The directors acknowledge that the situation could change suddenly depending on how the situation evolves, particularly the conflict in Ukraine, and will assess and respond to any change in risk as appropriate.
The current and future financial position of the company, its cash flows and liquidity position have been monitored by the directors. The directors are confident that the existing funding facilities will provide sufficient headroom to meet forecast cash requirements having considered any additional requirements that would be contingent on an extended downturn in activity on the same period.
As such, the directors consider that it is appropriate to prepare the financial statements on the going concern basis.
1.3
Turnover
Turnover represents the value of work done during the year ascertained by reference to contract measurement, excluding value added tax.
On the balance sheet a contract represents an asset where the gross value of work done exceeds payments to accounts on that contact. These are disclosed within debtors and amounts recoverable on contract.
Retentions and payments on account receivable are included in amounts recoverable on contracts.
Payments on account received in excess of the value of work done are included in creditors.
1.4
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
LINEAR PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
LINEAR PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
LINEAR PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.12
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
LINEAR PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 16 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Long term contracts
Profit recognition on long term contracts is based on management's best estimate of the stage of completion of each contract. This is based on the best available information along with their experience of similar contracts. If applicable the level of loss recognised is based on forecasts, which can be determined with reasonable certainty.
3
Auditor's remuneration
The audit fee for the company has been paid by the parent company.
4
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Government grants
(3,875)
(18,189)
Depreciation of owned tangible fixed assets
(25,624)
(3,473)
Depreciation of tangible fixed assets held under finance leases
25,624
25,624
Profit on disposal of tangible fixed assets
-
(2,672)
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration
32
33
Management
30
29
Total
62
62
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,109,514
3,452,546
Social security costs
80,907
77,838
Pension costs
12,698
15,431
3,203,119
3,545,815
LINEAR PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
152,795
114,000
Company pension contributions to defined contribution schemes
2,234
3,476
155,029
117,476
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
675
3,174
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
71,568
22,266
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(94,044)
Deferred tax
Origination and reversal of timing differences
302
(37,009)
Total tax charge/(credit)
302
(131,053)
LINEAR PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
9
Taxation
(Continued)
- 18 -
The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(851,622)
(1,397,999)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
(212,906)
(307,700)
Tax effect of expenses that are not deductible in determining taxable profit
1,256
4,392
Tax effect of income not taxable in determining taxable profit
(6,250)
Adjustments in respect of prior years
(94,044)
Group relief
216,468
274,323
Permanent capital allowances in excess of depreciation
3,836
Other permanent differences
1,735
(7,456)
Adjust closing deferred tax to average rate
(4,404)
Rounding adjustment
(1)
Taxation charge/(credit) for the year
302
(131,053)
10
Dividends
2024
2023
£
£
Interim paid
250,000
250,000
11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
9
9
12
Subsidiaries
Details of the company's subsidiaries at 30 September 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Linear Projects Manchester Limited
(1)
Ordinary
100.00
(1) 7 Maxim Office Park, Parklands Avenue, Eurocentral, Motherwell, ML1 4WQ.
LINEAR PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
996,393
1,911,140
Gross amounts owed by contract customers
3,674,609
5,045,505
Corporation tax recoverable
42,352
207,824
Amounts owed by group undertakings
1,623,866
1,465,126
Other debtors
616,318
720,540
Prepayments and accrued income
4,198
1,574
6,957,736
9,351,709
Deferred tax asset (note 18)
302
6,957,736
9,352,011
2024
2023
Amounts falling due after more than one year:
£
£
Gross amounts owed by contract customers
1,487,717
1,673,050
Total debtors
8,445,453
11,025,061
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
17
9,181
21,167
Other borrowings
16
420,000
420,000
Payments received on account
677,317
681,524
Trade creditors
2,470,326
2,572,274
Amounts owed to group undertakings
296,514
287,517
Taxation and social security
103,178
208,997
Other creditors
504,492
1,491,188
Accruals and deferred income
677,658
908,466
5,158,666
6,591,133
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
17
9,181
Other borrowings
16
280,000
700,000
Other creditors
723,553
1,003,553
709,181
LINEAR PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
16
Loans and overdrafts
2024
2023
£
£
Other loans
700,000
1,120,000
Payable within one year
420,000
420,000
Payable after one year
280,000
700,000
The Royal Bank of Scotland plc hold standard security including a bond and floating charge over the whole property and undertaking with respect to all sums due and that may become due.
The bank loans are repayable in monthly instalments with the final repayments due in June 2020, March 2027 and February 2029. The interest rate on the loans is LIBOR + 1.8%.
The other loan relates to the Government backed Coronavirus Business Interruption Loan Scheme. The loan is over a 5 year term and is due to be repaid in May 2026.
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
9,181
21,167
In two to five years
9,181
9,181
30,348
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
302
302
Short term timing difference
(302)
-
-
302
LINEAR PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
18
Deferred taxation
(Continued)
- 21 -
2024
Movements in the year:
£
Asset at 1 October 2023
(302)
Charge to profit or loss
302
Liability at 30 September 2024
-
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
12,698
15,431
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 1p each
1,240
1,240
12
12
Ordinary B shares of 1p each
800
800
8
8
Ordinary C shares of 1p each
120
120
1
1
Ordinary D shares of 1p each
120
120
1
1
Ordinary E Shares of 1p each
120
120
1
1
Ordinary F Shares of 1p each
120
120
-
-
2,520
2,520
23
23
21
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
14,970
14,970
Between two and five years
9,023
24,034
23,993
39,004
LINEAR PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
22
Financial commitments, guarantees and contingent liabilities
The company has provided an intercompany guarantee to Royal Bank of Scotland for the borrowings of Linear UK Group Limited and its subsidiaries.
23
Related party transactions
Remuneration of key management personnel
Key management personnel are considered to be the directors of the company. Remuneration in respect of the directors can be seen in note 6 to these financial statements.
Transactions with related parties
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable to the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
During the year the company entered into the following transactions with related parties:
Purchases
Sales
2024
2023
2024
2023
£
£
£
£
Other related parties
1,829,245
3,104,574
1,293,956
-
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Other related parties
297,380
60,574
Amounts owed to other related parties are from an entity in which the immediate controlling party has an interest.
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Other related parties
1,624,732
-
Amounts due from other related parties are from an entity in which the immediate controlling party has an interest.
Other information
At 30 September 2024 the company was owed £30,000 (2023: £30,000) by family members of the directors.
LINEAR PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
24
Directors' transactions
Dividends totalling £nil (2023 - £nil) were paid in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Closing balance
£
£
-
99,375
99,375
99,375
99,375
25
Ultimate controlling party
The ultimate parent company is Linear UK Group Limited, a company registered in Scotland.
In the opinion of the directors the ultimate controlling party is Mr S Holmes, by virtue of his shareholding in Linear UK Group Limited.
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