Company registration number SC393710 (Scotland)
PATERSON ENGINEERING LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PAGES FOR FILING WITH REGISTRAR
PATERSON ENGINEERING LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
PATERSON ENGINEERING LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
5
569,549
44,601
Current assets
Stocks
38,223
93,214
Debtors
6
215,029
181,965
Cash at bank and in hand
26,093
107,604
279,345
382,783
Creditors: amounts falling due within one year
7
(421,229)
(290,134)
Net current (liabilities)/assets
(141,884)
92,649
Total assets less current liabilities
427,665
137,250
Creditors: amounts falling due after more than one year
8
(313,393)
-
Provisions for liabilities
(11,582)
(11,150)
Net assets
102,690
126,100
Capital and reserves
Called up share capital
9
1
1
Profit and loss reserves
102,689
126,099
Total equity
102,690
126,100
PATERSON ENGINEERING LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2024
31 December 2024
- 2 -

For the financial year ended 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

The financial statements were approved and signed by the director and authorised for issue on 25 July 2025
Mr C S Paterson
Director
Company registration number SC393710 (Scotland)
PATERSON ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
1
Accounting policies
Company information

Paterson Engineering Limited is a private company limited by shares incorporated in Scotland. The registered office is Castle Works, Edingham Industrial Estate, Dalbeattie, Dumfries and Galloway, DG5 4NA.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The company is reliant upon the financial support of its parent company in order to meet its liabilities as they fall due. The director has indicated that this support will continue for the foreseeable future and, as a result, have continued to adopt the going concern basis in preparing the financial statements.true

1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT.
1.4
Intangible fixed assets - goodwill

Acquired goodwill is written off in annual instalments over its estimated useful economic life of 10 years.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings leasehold
20% Straight line
Assets under construction
Not depreciated until completion
Plant and machinery
15% Straight line
Fixtures, fittings & equipment
15% Straight line
Computer equipment
15% Straight line
Motor vehicles
25% Reducing balance
1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

PATERSON ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 4 -
1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

1.9
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.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

PATERSON ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 5 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.11
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.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
11
11
PATERSON ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
3
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(5,711)
5,711
Adjustments in respect of prior periods
-
0
(24,167)
Total current tax
(5,711)
(18,456)
Deferred tax
Origination and reversal of timing differences
432
(2,351)
Total tax credit
(5,279)
(20,807)
4
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
290,000
Amortisation and impairment
At 1 January 2024 and 31 December 2024
290,000
Carrying amount
At 31 December 2024
-
0
At 31 December 2023
-
0
PATERSON ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2024
133,912
103,555
237,467
Additions
363,007
69,039
432,046
Disposals
-
0
(37,327)
(37,327)
Transferred from group company
147,800
-
0
147,800
At 31 December 2024
644,719
135,267
779,986
Depreciation and impairment
At 1 January 2024
130,686
62,180
192,866
Depreciation charged in the year
1,484
16,087
17,571
At 31 December 2024
132,170
78,267
210,437
Carrying amount
At 31 December 2024
512,549
57,000
569,549
At 31 December 2023
3,226
41,375
44,601
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
128,538
158,175
Corporation tax recoverable
5,711
-
0
Other debtors
59,701
-
0
Prepayments and accrued income
21,079
23,790
215,029
181,965
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
85,890
-
0
Trade creditors
215,590
58,518
Amounts owed to group undertakings
95,706
177,119
Corporation tax
-
0
5,711
Other taxation and social security
13,195
35,299
Other creditors
368
9,476
Accruals and deferred income
10,480
4,011
421,229
290,134
PATERSON ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
7
Creditors: amounts falling due within one year
(Continued)
- 8 -

Other creditors includes amounts owed to the director of £368 (2023 - £9,476).

 

The company's bank borrowings are secured by way of a legal charge over Plot C of Edingham Industrial Estate, Dalbeattie and a floating charge over the assets of the company.

8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Amounts owed to group undertakings
313,393
-
0
9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
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