Company Registration No. SC361091 (Scotland)
Highland Fuels (Investments) Limited
Annual report and
group financial statements
for the year ended 31 December 2024
Highland Fuels (Investments) Limited
Company information
Directors
G G M Shand
N F A Clinton
P Maclean
S G Rhodes
Secretary
Burness Paull LLP
Company number
SC361091
Registered office
2 Marischal Square
Broad Street
Aberdeen
Scotland
AB10 1DQ
Independent auditor
Saffery LLP
Torridon House
Beechwood Park
Inverness
IV2 3BW
Bankers
The Royal Bank of Scotland plc
29 Harbour Road
Inverness
IV1 1NU
Solicitors
Burness Paull LLP
50 Lothian Road
Festival Square
Edinburgh
EH3 9WJ
Highland Fuels (Investments) Limited
Contents
Page
Strategic Report
1 - 3
Directors' Report
4 - 6
Directors' Responsibilities Statement
7
Independent Auditor's Report
8 - 10
Consolidated Statement of Comprehensive Income
11
Consolidated Balance Sheet
12
Company Balance Sheet
13
Consolidated Statement of Changes in Equity
14
Company Statement of Changes in Equity
15
Consolidated Statement of Cash Flows
16
Notes to the Financial Statements
17 - 32
Highland Fuels (Investments) Limited
Strategic report
For the year ended 31 December 2024
1

The directors present the strategic report for the year ended 31 December 2024.

Fair review of the business
The Group's key financial and other performance indicators during the year were as follows:
2024
2023
Change
£'000
£'000
%
Turnover
359,050
332,541
8%
Operating profit
6,920
6,599
5%
Profit after tax
5,119
5,085
1%
Shareholder's funds
29,659
26,540
12%
Average number of employees
257
249
3%

The Employee Ownership Trust (EOT) was established in August 2023, and its continued success has strengthened camaraderie and shared purpose across the organisation. The transition to employee ownership has empowered the leadership team to make key decisions that prioritise both colleagues and customers, with all employees actively contributing to the company’s long-term growth and success.

 

Turnover for the year to 31st December 2024 increased by 8%, driven by sustained demand and market conditions. The overall volume of sales increased, supported by the ongoing development of bulk fuels (heating, commercial & marine sales) and increased consumer activity across our retail network. Margins remained stable for the trading period as supply chain fluctuations settled compared to previous years.

 

Investments in non-fuel income streams within the retail estate continued to yield positive results. Notable developments included the upgrading and merchandising of several of our forecourt stores and commencement of the redevelopment of Balfron filling station, which will feature our third Morrison’s Daily convenience store from Q1 2025. The company also invested in the implementation of single Epos solution across the entire retail estate to deliver administrative efficiency and store performance. Furthermore, the comprehensive analytics and reporting functionality enables the business to make data driven decisions to more effectively optimise product ranging, minimisation of waste and control of overheads.

 

Expansion of our fuel card services also continued during the trading year and reflected a 26% growth in sales. The product range was further supported with two new fuel card products – the ESSO Card and the Profuel Card. The fuelcard portfolio now serves over 1,000 customers, with strong customer satisfaction reflected in excellent Trust Pilot reviews.

 

Highland Fuels remains committed to supporting customers in transitioning to low-carbon liquid fuels. This year, we achieved substantial growth in renewable fuel sales across Scotland and introduced renewable marine fuel at Montrose Port.

 

The company also expanded its tank telemetry services, enhancing operational efficiency through new supplier partnerships and in-house installations.

 

Technology investments have further modernised operations, including the introduction of onboard truck computers replacing time consuming paper-based processes together with a new centralised fleet management system providing for full visibility across our depot network. External audits also reaffirmed our compliance with ISO 9001, 14001, and 45001 standards.

 

Operating overheads remained controlled despite external pressures such as inflation, interest rates, and upcoming changes to National Living Wage and employer national insurance from April 2025. These financial headwinds will be carefully managed to ensure stability and sustainable growth.

Highland Fuels (Investments) Limited
Strategic report (continued)
For the year ended 31 December 2024
2
Principal risks and uncertainties

Health, safety and environment

As a company operating in the fuel sector, we uphold the highest standards in health, safety, and environmental stewardship. Regular training and risk assessments are a key priority.

 

Competitive risks

The industry remains highly competitive; however, our diverse customer base and service excellence mitigate overreliance on any single market segment.

Credit risks

A robust credit assessment and management process, including appropriate use of credit insurance, ensures minimal exposure to customer defaults.

 

Liquidity and cash flow risk

With diligent credit control, the Group maintains flexible banking facilities to meet its operational needs.

 

Employee Growth and Development

Our workforce continues to expand, with new team members joining to support growth initiatives. The company launched a training portal to enhance in-role and professional development which has been implemented across the organisation. The company continues to extend a range of employee benefits including an Employee Assistance Programme, cycle to work scheme, and an online Benefits Hub, providing employees access to savings and discounts at major retailers.

 

The average number of employees rose from 249 to 257.

 

Governance and Stakeholder Engagement

The Board remains committed to fostering strong relationships with stakeholders, including employees, customers, suppliers, and regulators. Regular meetings and strategic planning ensure that decisions are made in alignment with long-term business sustainability.

 

In line with our commitment to sustainability, we continue to work with UKIFDA and OFTEC to support decarbonisation efforts and participate in UK-wide trials of low-carbon liquid fuels.

Section 172 Statement

This section of the Strategic Report describes how the directors have had regard to the matters set out in section 172(1), and forms the directors’ statement required under section 414CZA, of the Companies Act 2006.

 

The directors have acted, and continue to act in a way that they consider, in good faith, would be most likely to promote the success of the company and group 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 Group has a strong board of experienced industry and finance professionals. The Board comprises the roles of Chair, Managing Director, Sales, Operations and Health & Safety, Finance, Retail, and one Non-Executive Director.

The Board was further strengthened in the trading year following three new appointments into these roles. Regular Board meetings are held to review key aspects of the business, including health & safety, financial performance, working capital and cash flow, sales and marketing, employee matters, regulatory compliance, capital expenditure, and stakeholder feedback.

 

The Board considers the long-term goals of the Group and the impact that decisions may have on stakeholders, including shareholders, employees, suppliers, customers, creditors, regulators (including HMRC), local communities, and the environment. Strategy reviews are conducted to ensure that decisions align with the best interests of the Group and its members, with information provided through reports and presentations.

Highland Fuels (Investments) Limited
Strategic report (continued)
For the year ended 31 December 2024
3

The interests of the group's employees

The Board prioritises a strong and stable foundation for employees to grow. In August 2023, the company implemented an Employee Ownership Trust (EOT), securing the long-term future of its workforce.

 

To support leadership growth, the company has continued with its a Leadership and Management Development programme for senior management. This initiative fosters continuous improvement and a high-performance culture across the organisation.

 

For the year ending 31 December 2024, the Group employed an average of 257 people across 11 depots, 16 filling stations, a sales office and a head office. Each department is led by an executive director who maintains close engagement with employees. Managers at each location conduct regular briefings and discussions with staff. Health & safety remains a top priority, with ongoing training and updates provided to all employees.

 

The need to foster the group's business relationships with suppliers, customers and others

The Board and senior management actively engage with key customers and suppliers to enhance relationships and gain valuable insights. Supplier relationships are managed by senior Board members through regular meetings and participation in industry trade associations such as the United Kingdom & Ireland Fuel Distributors Association (UKIFDA).

 

The Group’s banking facilities are provided by Royal Bank of Scotland. As of the year-end, the Group held approximately £9m in cash (2023 - £6m) and operated without bank borrowings throughout the year. An unused invoice discounting facility of £9m remained available, ensuring financial flexibility. Senior Directors maintain regular engagement with banking and legal partners to safeguard the Group’s financial stability.

 

The impact of the group's operations on the community and the environment

The Group is committed to conducting business responsibly and leading by example in community and environmental stewardship.

 

Compliance with all relevant legislation is a fundamental principle, and the company regularly undergoes internal and external audits to maintain its accreditations for ISO 9001 (Quality Management), ISO 14001 (Environmental Management), and ISO 45001 (Health & Safety Management).

 

The Group actively supports the decarbonisation of transport and heating for rural homes through the supply and distribution of low-carbon liquid fuels. The Group remains in active dialogue with local and national stakeholders to promote low-carbon solutions for consumers.

 

Maintain a reputation for high standards of business conduct

The Group upholds a strong commitment to ethical business conduct across all locations and business activities.

Its organisational structure and leadership oversight enable rigorous governance, with Board meetings providing regular opportunities to assess and refine business practices.

 

Act fairly as between members of the company

The Highland Fuels Group remains privately held, with all subsidiary companies fully owned. Shares in the ultimate holding company are held by the Highland Fuels Employee Ownership Trust and George Shand, the company’s Chairman. With the Highland Fuels Employee Ownership Trust holding the majority stake, governance is overseen by a dedicated Board of Trustees. The principal trading activities of the Group continue to be conducted within Highland Fuels Limited.

On behalf of the Board

G G M Shand
Director
5 June 2025
Highland Fuels (Investments) Limited
Directors' report
For the year ended 31 December 2024
4

The directors present their annual report and financial statements for the year ended 31 December 2024.

Results and dividends

The results for the year are set out on page 11.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

G G M Shand
N F A Clinton
P Maclean
S G Rhodes
Going concern

The financial statements have been prepared under the going concern basis. The Group closely monitors and manages its funding position and liquidity risk throughout the year to ensure that it has access to sufficient funds to meet forecast cash requirements.

 

The Group’s business activities together with the factors likely to affect its financial position and its exposure to credit, liquidity and interest rate risk are described in the Strategic Report.

 

The Director has assessed profitability and cash flow forecasts, including significant but plausible downside sensitivities, applied to turnover and profitability for a range of issues including the continuing impact of the war in Ukraine on the global oil markets. This assessment shows substantial headroom within forecasts as regards the funding resources available to the Group. The Director believes that sufficient funds are available to allow the company and all subsidiaries to continue to meet their obligations for the going concern period to 30 June 2025, and that it therefore remains appropriate to prepare the financial statements on a going concern basis.

 

As part of the Group, the company has access to financial resources as required. We remain confident that our financial resources are strong, well balanced and suitably liquid. The Group has a positive cash at bank position of approximately £11.5m at the time of this report, and the current year trading performance remains strong in terms of profitability and cash generation.

Future developments

The Director intends to continue with the management policies which have resulted in significant business growth in recent years. This essentially involves organic growth, combined with appropriate synergetic acquisitions as and when suitable opportunities arise.

Highland Fuels (Investments) Limited
Directors' report (continued)
For the year ended 31 December 2024
5
Energy and carbon report

The following statements are given in accordance with the Companies (Miscellaneous Reporting Regulations) 2018, for reporting periods beginning on or after 1 April 2019, in respect of GHG and Energy Use.

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
-
-
- Electricity purchased
1,336,351
1,336,351
- Diesel
6,918,052
6,789,907
- Petrol
28,404
28,386
- Employee owned cars
147,154
147,084
8,429,961
8,301,728
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
-
-
- Fuel consumed for owned transport
1,733.77
1,662.72
1,733.77
1,662.72
Scope 2 - indirect emissions
- Electricity purchased
269.53
269.57
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
40.89
40.87
Total gross emissions
2,044.19
1,973.16
Intensity ratio
Tonnes CO2e per employee
0.006
0.006
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per total sales revenue, the recommended ratio for the sector.

Highland Fuels (Investments) Limited
Directors' report (continued)
For the year ended 31 December 2024
6
Measures taken to improve energy efficiency

In addition to the measures introduced last year, the Group has taken the following actions to further improve its energy consumption and efficiency:

 

 

 

 

 

 

 

The overall emissions produced by the Group have slightly increased (mainly due to a higher Diesel rate within the HMRC calculations/guidelines), this would have been a larger increase had the above items not been undertaken by the Group.

 

The Group continues to be an accredited supplier of HVO/Renewable Diesel (a low carbon liquid renewable fuel) under the Renewable Fuels Assurance Scheme (“RFAS”), and successfully had its RFAS accreditation renewed in September 2024. The RFAS scheme enables fleet operators (including ourselves) to receive independently verifiable GHG emission data that encompasses the complete renewable fuel supply chain from feedstock cultivation or waste raw material collection, production and distribution of the final product to the customer; thereby ensuring accurate and representative information for company carbon reporting.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the Board
G G M Shand
Director
5 June 2025
Highland Fuels (Investments) Limited
Directors' responsibilities statement
For the year ended 31 December 2024
7

The directors are responsible for preparing the group Strategic Report, the Director's 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Highland Fuels (Investments) Limited
Independent auditor's report
To the members of Highland Fuels (Investments) Limited
8
Opinion

We have audited the financial statements of Highland Fuels (Investments) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Group Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

 

Basis for opinion

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 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 group 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. The directors is responsible for the other information. 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.

Highland Fuels (Investments) Limited
Independent auditor's report (continued)
To the members of Highland Fuels (Investments) Limited
9

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 the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement set out on page 8, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements.

Highland Fuels (Investments) Limited
Independent auditor's report (continued)
To the members of Highland Fuels (Investments) Limited
10

We identified laws and regulations that are of significance in the context of the group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operate.

Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006, and UK Tax legislation.

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.

 

Eunice McAdam (Senior Statutory Auditor)
For and on behalf of Saffery LLP
6 June 2025
Statutory Auditors
Torridon House
Beechwood Park
Inverness
IV2 3BW
Highland Fuels (Investments) Limited
Consolidated statement of comprehensive income
For the year ended 31 December 2024
11
2024
2023
Notes
£
£
Turnover
3
359,049,771
332,541,375
Cost of sales
(334,036,319)
(308,259,535)
Gross profit
25,013,452
24,281,840
Distribution costs
(3,992,816)
(3,854,907)
Administrative expenses
(14,100,346)
(13,827,464)
Operating profit
4
6,920,290
6,599,469
Interest receivable and similar income
8
114,377
131,703
Profit before taxation
7,034,667
6,731,172
Tax on profit
9
(1,915,469)
(1,646,448)
Profit for the financial year
21
5,119,198
5,084,724
Other comprehensive income
Revaluation of tangible fixed assets
-
0
4,696,874
Tax relating to other comprehensive income
-
0
(1,106,535)
Total comprehensive income for the year
5,119,198
8,675,063
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
Highland Fuels (Investments) Limited
Consolidated balance sheet
As at 31 December 2024
31 December 2024
12
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
1,515,143
1,633,649
Tangible assets
11
25,812,679
22,490,864
27,327,822
24,124,513
Current assets
Stocks
14
2,780,913
2,582,049
Debtors
16
18,311,272
22,104,598
Cash at bank and in hand
9,076,016
5,959,692
30,168,201
30,646,339
Creditors: amounts falling due within one year
17
(23,670,228)
(24,705,845)
Net current assets
6,497,973
5,940,494
Total assets less current liabilities
33,825,795
30,065,007
Provisions for liabilities
Deferred tax liability
18
4,166,822
3,525,232
(4,166,822)
(3,525,232)
Net assets
29,658,973
26,539,775
Capital and reserves
Called up share capital
20
31,000
31,000
Share premium account
21
4,020,380
4,020,380
Revaluation reserve
21
5,585,727
5,585,727
Capital redemption reserve
21
11,770
11,770
Profit and loss reserves
21
20,010,096
16,890,898
Total equity
29,658,973
26,539,775
The financial statements were approved by the board of directors and authorised for issue on 5 June 2025 and are signed on its behalf by:
05 June 2025
G G M Shand
Director
Highland Fuels (Investments) Limited
Company balance sheet
As at 31 December 2024
31 December 2024
13
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
9,259,356
9,259,356
Current assets
Debtors
16
4,791,913
4,791,913
Creditors: amounts falling due within one year
17
(9,988,119)
(9,988,119)
Net current liabilities
(5,196,206)
(5,196,206)
Net assets
4,063,150
4,063,150
Capital and reserves
Called up share capital
20
31,000
31,000
Share premium account
21
4,020,380
4,020,380
Capital redemption reserve
21
11,770
11,770
Total equity
4,063,150
4,063,150
The financial statements were approved by the board of directors and authorised for issue on 5 June 2025 and are signed on its behalf by:
05 June 2025
5 June 2025
G G M Shand
Director
Company Registration No. SC361091
Highland Fuels (Investments) Limited
Consolidated statement of changes in equity
For the year ended 31 December 2024
14
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2023
31,000
4,020,380
1,995,388
11,770
21,806,274
27,864,812
Year ended 31 December 2023:
Profit for the year
-
-
-
-
5,084,724
5,084,724
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
4,696,874
-
-
4,696,874
Tax relating to other comprehensive income
-
-
(1,106,535)
-
-
0
(1,106,535)
Total comprehensive income for the year
-
-
3,590,339
-
5,084,724
8,675,063
Contribution to Employee Ownership Trust
-
-
-
-
(10,000,100)
(10,000,100)
Balance at 31 December 2023
31,000
4,020,380
5,585,727
11,770
16,890,898
26,539,775
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
-
-
-
5,119,198
5,119,198
Contribution to Employee Ownership Trust
-
-
-
-
(2,000,000)
(2,000,000)
Balance at 31 December 2024
31,000
4,020,380
5,585,727
11,770
20,010,096
29,658,973
Highland Fuels (Investments) Limited
Company statement of changes in equity
For the year ended 31 December 2024
15
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
31,000
4,020,380
11,770
-
0
4,063,150
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
10,000,100
10,000,100
Contribution to Employee Ownership Trust
-
-
-
(10,000,100)
(10,000,100)
Balance at 31 December 2023
31,000
4,020,380
11,770
-
0
4,063,150
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
-
2,000,000
2,000,000
Contribution to Employee Ownership Trust
-
-
-
(2,000,000)
(2,000,000)
Balance at 31 December 2024
31,000
4,020,380
11,770
-
0
4,063,150
Highland Fuels (Investments) Limited
Consolidated statement of cash flows
For the year ended 31 December 2024
16
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
10,628,803
5,528,128
Income taxes paid
(526,000)
(1,200,000)
Net cash inflow from operating activities
10,102,803
4,328,128
Investing activities
Purchase of tangible fixed assets
(5,294,376)
(3,900,054)
Proceeds on disposal of tangible fixed assets
119,900
115,398
Disposal of investment in associate
73,620
73,621
Interest received
114,377
131,703
Net cash used in investing activities
(4,986,479)
(3,579,332)
Contribution to Employee Ownership Trust
(2,000,000)
(10,000,100)
Net cash used in financing activities
(2,000,000)
(10,000,100)
Net increase/(decrease) in cash and cash equivalents
3,116,324
(9,251,304)
Cash and cash equivalents at beginning of year
5,959,692
15,210,996
Cash and cash equivalents at end of year
9,076,016
5,959,692
Highland Fuels (Investments) Limited
Notes to the group financial statements
For the year ended 31 December 2024
17
1
Accounting policies
Company information

Highland Fuels (Investments) Limited (“the company”) is a private company limited by shares incorporated in Scotland. The registered office is 2 Marischal Square, Broad Street, Aberdeen, Scotland, AB10 1DQ.

 

The group consists of Highland Fuels (Investments) Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Highland Fuels (Investments) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in associates.

 

All financial statements are made up to 31 December 2024. No profit and loss account is presented for Highland Fuels (Investments) Limited as permitted by section 408 of the Companies Act 2006.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

The financial statements have been prepared under the going concern basis. The Group closely monitors and manages its funding position and liquidity risk throughout the year to ensure that it has access to sufficient funds to meet forecast cash requirements.

 

The Group’s business activities together with the factors likely to affect its financial position and its exposure to credit, liquidity and interest rate risk are described in the Strategic Report.

 

The Director has assessed profitability and cash flow forecasts, including significant but plausible downside sensitivities, applied to turnover and profitability for a range of issues including the continuing impact of the war in Ukraine on the global oil markets. This assessment shows substantial headroom within forecasts as regards the funding resources available to the Group. The Director believes that sufficient funds are available to allow the company and all subsidiaries to continue to meet their obligations for the going concern period to 30 June 2026, and that it therefore remains appropriate to prepare the financial statements on a going concern basis.

As part of the Group, the company has access to financial resources as required. We remain confident that our financial resources are strong, well balanced and suitably liquid. The Group has a positive cash at bank position of approximately £11.5m at the time of this report, and the current year trading performance remains strong in terms of profitability and cash generation.

Highland Fuels (Investments) Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
18
1.4
Turnover

Revenue is recognised to the extent that the group obtains the right to consideration in exchange for its performance. Turnover is measured at the fair value of the consideration received and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Intangible fixed assets - goodwill

Positive goodwill acquired on each business combination is capitalised, classified as an asset on the statement of financial position and amortised on a straight-line basis over its useful life. If a subsidiary, associate or business is subsequently sold or discontinued, any goodwill arising on acquisition that has not been amortised through the income statement is taken into account in determining the profit or loss on the sale or discontinuance.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Licence
Nil
1.7
Tangible fixed assets

Tangible fixed assets under the cost model are measured at cost less depreciation and any impairment losses.

 

The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Land is not depreciated. Depreciation on other assets 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:

Buildings
2-20% straight line
Plant and machinery
10-50% straight line
Fixtures and fittings
10-33% straight line
Motor vehicles
10-33% straight line
Petrol stations and fuel storage
2.5% straight line
Highland Fuels (Investments) Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
19

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.

 

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.8
Fixed asset investments

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.10
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.

1.11
Cash and cash equivalents

Cash and cash equivalents comprise cash in hand and at banks. Bank overdrafts are shown within borrowings in current liabilities.

 

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 Company's cash management.

1.12
Equity instruments

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Highland Fuels (Investments) Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
20
1.13
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 group’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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.

1.14
Retirement benefits

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 the income statement 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.

1.15
Leases

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

Benefits received and receivable as an incentive to sign an operating lease are recognised are 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.

Highland Fuels (Investments) Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
21
2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following are the group's key sources of estimation uncertainty:

Revaluation of land and buildings and petrol stations and fuel storage

Land and buildings and petrol stations and fuel storage are carried at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

 

The Company engaged Graham & Sibbald, Chartered Surveyors, to determine fair value at 31 December 2023. At 31 December 2024, the directors assessed the fair value of the properties and deemed them to have increased by the amount of additions during the year.

Goodwill

The Group establishes a reliable estimate of the useful life of goodwill and intangible assets arising on business combinations. The estimate is based on a variety of factors such as the expected use of the acquired business, the expected useful life of the cash generating unit to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Marketing and distribution of fuel and operation of filling stations
359,049,771
332,541,375

All turnover arose within the United Kingdom.

4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
1,930,345
1,382,052
Profit on disposal of tangible fixed assets
(77,684)
(114,608)
Amortisation of intangible assets
118,506
118,506
Defined contribution pension cost
222,015
244,372
Operating lease charges
260,225
266,061
Highland Fuels (Investments) Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
22
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
65,000
62,000
For other services
Taxation compliance services
20,000
19,000
All other non-audit services
15,000
14,000
35,000
33,000
6
Employees

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

2024
2023
Number
Number
Sales and distribution staff
232
226
Management and administration staff
22
23
Total
254
249

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
7,955,622
7,476,341
Social security costs
744,733
727,683
Pension costs
259,743
244,372
8,960,098
8,448,396

The Company has no employees other than the director, who did not receive any remuneration (2023 - £nil).

7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
428,037
488,078
Company pension contributions to defined contribution schemes
29,150
25,434
457,187
513,512
Highland Fuels (Investments) Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
7
Directors' remuneration (continued)
23

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
185,918
162,383
Company pension contributions to defined contribution schemes
7,795
4,514
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
114,377
131,703
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,291,729
1,023,984
Adjustments in respect of prior periods
(17,850)
-
0
Total current tax
1,273,879
1,023,984
Deferred tax
Origination and reversal of timing differences
641,590
622,464
Total tax charge
1,915,469
1,646,448
Highland Fuels (Investments) Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
9
Taxation (continued)
24

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
7,034,667
6,731,172
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
1,758,667
1,583,172
Tax effect of expenses that are not deductible in determining taxable profit
169,922
175,843
Tax effect of income not taxable in determining taxable profit
-
0
(10,936)
Change in unrecognised deferred tax assets
12,818
-
0
Adjustments in respect of prior years
(21,052)
-
0
Effect of change in corporation tax rate
-
34,603
Group relief
-
0
(139,214)
Under/(over) provided in prior years
25,619
-
0
Fixed asset timing difference
-
0
(16,967)
Movement in deferred tax not recognised
(28,941)
18,666
Other differences
(1,564)
1,281
Taxation charge
1,915,469
1,646,448

In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
1,106,535
Highland Fuels (Investments) Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
25
10
Intangible fixed assets
Group
Goodwill
Licence
Total
£
£
£
Cost
At 1 January 2024 and 31 December 2024
3,166,441
75,000
3,241,441
Amortisation and impairment
At 1 January 2024
1,607,792
-
0
1,607,792
Amortisation charged for the year
118,506
-
0
118,506
At 31 December 2024
1,726,298
-
0
1,726,298
Carrying amount
At 31 December 2024
1,440,143
75,000
1,515,143
At 31 December 2023
1,558,649
75,000
1,633,649
11
Tangible fixed assets
Group
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Petrol stations and fuel storage
Total
£
£
£
£
£
£
Cost or valuation
At 1 January 2024
951,124
11,494,834
325,523
67,415
10,410,243
23,249,139
Additions
33,929
3,455,786
364,343
-
0
1,440,318
5,294,376
Disposals
-
0
(1,542,974)
-
0
-
0
-
0
(1,542,974)
At 31 December 2024
985,053
13,407,646
689,866
67,415
11,850,561
27,000,541
Depreciation and impairment
At 1 January 2024
141,124
5,276,949
194,318
4,493
(4,858,609)
758,275
Depreciation charged in the year
32,511
1,237,082
86,354
13,483
560,915
1,930,345
Eliminated in respect of disposals
-
0
(1,500,758)
-
0
-
0
-
0
(1,500,758)
At 31 December 2024
173,635
5,013,273
280,672
17,976
(4,297,694)
1,187,862
Carrying amount
At 31 December 2024
811,418
8,394,373
409,194
49,439
16,148,255
25,812,679
At 31 December 2023
810,000
6,217,885
131,205
62,922
15,268,852
22,490,864
Highland Fuels (Investments) Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
11
Tangible fixed assets (continued)
26

Included in land and buildings is land at valuation of £280,000 (2023 - £280,000) (cost £96,449 (2023 - £96,449)) which is not depreciated.

 

Included in petrol stations and fuel storage is land at valuation of £2,930,220 (2023 - £2,930,220) (cost £2,513,086 (2023 - £2,513,086)) which is not depreciated.

Land and buildings and petrol stations with a carrying amount of £16,926,073 (2023: £16,078,852) were revalued at 31 December 2023 by Graham & Sibbald, independent valuers not connected with the company on the basis of market value. The valuations were carried out in accordance with the RICS valuation guidelines and IFRS 13. The directors have considered these values to be a reflection of fair value at 31 December 2024, enhanced by additions in the year.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

Land and buildings
Petrol stations and fuel storage
2024
2023
2024
2023
£
£
£
£
Group
Cost
859,886
825,957
9,188,751
7,782,033
Accumulated depreciation
(408,872)
(376,361)
(3,198,129)
(2,637,214)
Carrying value
451,014
449,596
5,990,622
5,144,819
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
9,259,356
9,259,356
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
9,259,356
Carrying amount
At 31 December 2024
9,259,356
At 31 December 2023
9,259,356
Highland Fuels (Investments) Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
27
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Nature of business
Class of
% Held
shares held
Direct
Highland Fuels (Holdings) Limited
Holding company
Ordinary
100
Highland Fuels Limited*
Fuels distributor
Ordinary
100
SCM Affric Limited*
Property rental
Ordinary
100
SCM Ardrossan Limited*
Property rental
Ordinary
100
SCM Auchenharvie Limited*
Property rental
Ordinary
100
SCM Balfron Limited*
Property rental
Ordinary
100
SCM Bobbin Limited*
Property rental
Ordinary
100
SCM Campbeltown Limited*
Property rental
Ordinary
100
SCM County Limited*
Property rental
Ordinary
100
SCM Darnleymill Limited*
Property rental
Ordinary
100
SCM Huntly Limited*
Property rental
Ordinary
100
SCM Kilbirnie Limited*
Property rental
Ordinary
100
SCM Kilwinning Limited*
Property rental
Ordinary
100
SCM Loans Limited*
Property rental
Ordinary
100
SCM Mills Limited*
Property rental
Ordinary
100
SCM Pier Limited*
Property rental
Ordinary
100
SCM Property Holdings Limited*
Holding company
Ordinary
100
SCM Ravenspark Limited*
Property rental
Ordinary
100
SCM Riggend Limited*
Property Rental
Property rental
Ordinary
100
SCM Sandybrae Limited*
Property rental
Ordinary
100
SCM Scapa Limited*
Property rental
Ordinary
100
SCM Sheiling Limited*
Property rental
Ordinary
100
SCM Toll Limited*
Property rental
Ordinary
100
Thames Petroleum (Scotland) Limited*
Property rental
Ordinary
100
Highland Electricity Limited*
Wholesale of other fuels and related products
Ordinary
100

* Held by a subsidiary undertaking.

 

Other than Thames Petroleum (Scotland) Limited and Highland Electricity Limited, the registered address of all the subsidiary undertakings is Union Plaza (6th Floor), 1 Union Wynd, Aberdeen, Scotland, AB10 1DQ.

 

The registered address of Thames Petroleum (Scotland) Limited and Highland Electricity Limited is Connect House 133-137 Alexandra Road, Wimbledon, London, United Kingdom, SW19 7JY.

 

Highland Fuels (Investments) Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
28
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
2,780,913
2,582,049
-
0
-
0
15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Trade debtors
15,943,740
19,330,732
-
-
Other debtors
1,428,440
1,538,942
4,791,913
4,791,913
Carrying amount of financial liabilities
Trade creditors
19,170,683
20,830,329
-
-
Other creditors
2,440,907
1,856,875
9,988,119
9,988,119
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
15,943,740
19,330,732
-
0
-
0
Corporation tax recoverable
-
0
461,684
-
0
-
0
Amounts owed by group undertakings
-
-
4,791,913
4,791,913
Other debtors
1,428,440
1,538,942
-
0
-
0
Prepayments and accrued income
939,092
773,240
-
0
-
0
18,311,272
22,104,598
4,791,913
4,791,913
Highland Fuels (Investments) Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
29
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
19,170,683
20,830,329
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
9,988,119
9,988,119
Corporation tax payable
286,195
-
0
-
0
-
0
Other taxation and social security
176,694
174,591
-
-
Other creditors
2,440,907
1,856,875
-
0
-
0
Accruals and deferred income
1,595,749
1,844,050
-
0
-
0
23,670,228
24,705,845
9,988,119
9,988,119

Highland Fuels Limited has granted a bond and a floating charge in favour of RBS Invoice Finance Limited.

 

Highland Fuels Limited and Thames Petroleum (Scotland) Limited have granted a multi-client guarantee in favour of RBS Invoice Finance Limited.

 

On 19 September 2012, Highland Fuels Limited granted a floating charge in favour Phillips 66 Limited over the whole of the assets of the Company.

 

The Group overdraft facility is secured by a bond and floating charge in favour of The Royal Bank of Scotland plc over the whole of the property of Highland Fuels Limited and its subsidiaries and standard securities granted over certain of the Group's assets.

 

The above securities grant by Highland Fuels Limited are subject to a ranking agreement.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Fixed asset timing differences
2,756,568
2,311,945
Other timing difference
(5,177)
-
Capital gains
1,415,431
1,213,287
4,166,822
3,525,232
Highland Fuels (Investments) Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
18
Deferred taxation (continued)
30
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
3,525,232
-
Charge to profit or loss
641,590
-
Liability at 31 December 2024
4,166,822
-
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
259,743
244,372

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

20
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
31,000
31,000
31,000
31,000
21
Reserves
Share premium

This reserve records the amount above the nominal value received for shares sold, less transaction costs.

Revaluation reserve

This reserve is used to record increases in the fair value of land and buildings and petrol stations and fuel storage and decreases to the extent that such decrease relates to an increase on the same asset.

 

The Group's land and buildings and petrol stations and fuel storage were revalued by Graham & Sibbald, Chartered Surveyors, on an open market existing use basis and the resulting gain was recognised in other comprehensive income.

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the Company.

Highland Fuels (Investments) Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
31
22
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
247,616
418,592
-
-
Between two and five years
283,618
711,600
-
-
In over five years
152,323
352,422
-
-
683,557
1,482,614
-
-
23
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
428,037
42,820
24
Controlling party

The controlling party identified by the company is the Highland Fuels Employee Ownership Trust.

Highland Fuels (Investments) Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
32
25
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
5,119,198
5,084,724
Adjustments for:
Taxation charged
1,915,469
1,646,448
Investment income
(114,377)
(131,703)
Gain on disposal of tangible fixed assets
(77,684)
(114,608)
Amortisation of intangible assets
118,506
118,506
Depreciation of tangible fixed assets
1,930,345
1,382,052
Movements in working capital:
(Increase)/decrease in stocks
(198,864)
162,334
Decrease in debtors
3,258,022
1,145,444
Decrease in creditors
(1,321,812)
(3,765,069)
Cash generated from operations
10,628,803
5,528,128
26
Analysis of changes in net funds - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
5,959,692
3,116,324
9,076,016
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