Company registration number SC206139 (Scotland)
BEAR Scotland Limited
Annual report and consolidated financial statements
for the year ended 31 December 2024
BEAR Scotland Limited
Company information
Directors
M Godsell
A K Mackenzie
J M Sunderland
M S Brown
I W Murray
J S Haluch
J Dixon
A M Mackay
(Appointed 3 February 2024)
M J Solanki
A E Thorpe
(Appointed 1 August 2024)
Secretary
M S Brown
Company number
SC206139
Registered office
Bear House
Inveralmond Road
Inveralmond Industrial Estate
Perth
PH1 3TW
Auditor
Henderson Loggie LLP
The Stamp Office
Level 5
10 - 14 Waterloo Place
Edinburgh
EH1 3EG
Bankers
The Royal Bank of Scotland Plc
36 St Andrews Square
Edinburgh
EH2 2YB
BEAR Scotland Limited
Contents
Page
Strategic report
1 - 6
Directors' report
7 - 8
Independent auditor's report
9 - 11
Group statement of comprehensive income
12
Group balance sheet
13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 37
BEAR Scotland Limited
Strategic report
for the year ended 31 December 2024
- 1 -

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

Principal activities

BEAR Scotland is a leading service provider in the Scottish roads maintenance sector, committed to delivering exceptional infrastructure management and maintenance services. Operating 24/7, 365 days a year, our dedicated teams ensure the safety and reliability of Scotland’s trunk road network through a combination of expertise, innovation, and community partnership.

 

Vision

To be recognised as the leading infrastructure management and maintenance organisation in Scotland.

 

Our Heritage

Formed through a strategic alliance between BreedonVinci, and Jacobs, BEAR Scotland benefits from the combined strengths of three industry leaders in road maintenance, civil engineering, and consultancy. This partnership brings together global expertise, financial stability, and a broad operational scope to deliver world-class services across Scotland.

 

Core Services

 

We manage approximately 1,914 km of roads and 2,371 structures, ensuring safe and efficient travel for all road users.

 

Our Approach

We pride ourselves on:

 

Our Values

Review of the business

During the year BEAR Scotland continued to operate the Scottish Trunk Road Network Management Contract for the for the South East and North West Units. We continued to operate the Operation and Maintenance Contracts for the A92 Dundee to Arbroath and the M80 Stepps to Haggs.

 

Financial Highlights

The turnover of the group increased by 20% to £199m for 2024 from £166m in 2023 due to increased budgets from Transport Scotland in the client year 2024/25. Group profit before tax in 2024 is £5.0m (£1.1m 2023).

 

Operational Challenges

2024 was much improved over the prior year because of higher client budgets and focus on contract efficiencies to improve performance. The year faced significant wet weather challenges which impacted our resurfacing programme in the North West. Some parts of Scotland experienced record-breaking wet weather during the summer, with some locations recording their second or third wettest summer on record.

BEAR Scotland Limited
Strategic report (continued)
for the year ended 31 December 2024
- 2 -

Awards

We were awarded Gold from the Defence Employer Recognition Scheme (ERS). In the year BEAR also received the ROSPA Gold award for Health and Safety for the eighth consecutive year.

 

Community Engagement

Every year BEAR Scotland supports good causes across Scotland. In 2024 corporate donations totalled £20,086. This was supplemented with £30,000 in fundraising initiatives, meaning an overall total of over £50,000 was donated to 31 charities and 39 local community groups.

 

As well as four long-term charity partners, Cash for Kids, SAMH, My Name’5 Doddie and RBLI, employees vote on a charity of the year. The 2024 Charity Partner of the Year was Macmillan Cancer Support and various fund raising activities helped raise a total of £5,852 for Macmillan.

Section 172 Statement

BEAR Scotland directors believe they have acted in good faith in the application of their duties under Section 172 of the Companies Act 2006 to promote the success of the Group and its wider stakeholders. We continually review our ongoing strategy and believe we are building long-term sustainable, responsible business.

 

Our stakeholders

The directors consider the group’s key stakeholders are employees, clients, shareholders, supply chain and the wider community and environment. The Board strives to understand the respective interests of the stakeholder groups so that these may be properly considered in the Board’s decisions. We do this through various methods: direct engagement; receiving of reports and updates from members of management team; coverage in our Board papers of relevant stakeholder interests and proposed courses of action.

 

Interests of the Group’s employees

The directors take active steps to ensure that the suggestions, views, and interests of the workforce are captured and considered in our decision-making. We do this through:

 

 

Client Engagement

Across all our Contracts we have regular progress meetings with our clients supplemented by more specific business-related meetings. In addition, we have regular high-level management meetings with our clients to discuss longer-term strategy and meet challenges head on at source.

 

Shareholder Engagement

The directors meet with the shareholders quarterly at the board and audit committee meetings. These meetings review and discuss all aspects of the group’s affairs, decisions, and strategy. There are regular communications between these meetings providing updates and decision proposals. Where relevant, additional interim meetings are arranged to ensure any key issues are dealt with timeously. Shareholders have undertaken several safety tours across the network in the year.

 

BEAR Scotland Limited
Strategic report (continued)
for the year ended 31 December 2024
- 3 -

Supply Chain Engagement

The BEAR Supply Chain and Procurement Policy has been developed to assist in complying with our quality, safety, and environmental management systems, and to promote procurement of more sustainable solutions, products, and materials as well as the development of sustainable business relationships.

 

BEAR prides itself on a very strong partnership culture. To consistently deliver an excellent level of service and outstanding quality, we need to work effectively alongside our supply chain. BEAR is committed to continuous improvement, to capturing innovation, and to sustainable development. Our supply chain strategy is designed to encourage openness, trust, and collaboration. Whilst BEAR has strategic partnerships with several large national suppliers, we also take steps to ensure that we engage with local suppliers and SMEs. We are fully aware of and embrace our responsibilities to support the local economy and our duty to create jobs and improve people’s lives.

 

Banking and Insurance Engagement

The Finance Director reviews the group’s cash position and forecast quarterly with the bank and a strategic review annually. The directors attend in-depth quarterly insurance reviews with insurers and annual renewal meetings.

 

Community and Environmental Engagement

BEAR Scotland’s corporate responsibility energies focus on areas where our support can make a real difference. From charities and academia to social responsibility and community events, we sponsor a broad and diverse range of organisations and activities, all of which are actively contributing to improving the areas in which we work, 100% of which is in Scotland.

Principal risks and uncertainties

In managing risk, the group maintains a Strategic Risk Register that is reviewed quarterly with the Audit Committee. Key areas reviewed include Health and Safety, political landscape and impact on funding, business opportunity and project-specific risks.

 

Financial Risk Management Policy

The group uses various financial instruments which include cash, trade debtors, amounts recoverable on contract, trade creditors, amounts due to related party undertakings that arise directly from operations and hire purchase contracts. The main purpose of these financial instruments is to raise finance for the group's operations. The existence of these financial instruments exposes the group to a number of financial risks.

 

The main risks arising from the group's financial instruments are interest rate risk, credit risk, liquidity risk and competitive risk.

 

The directors review and agree policies for managing each of these risks and they are summarised below.

 

Interest Rate Risk

The group's borrowing facilities are used to finance capital expenditure. The finance lease and hire purchase contracts are on a fixed interest basis over the period of the loan.

 

Credit Risk

The group's principal financial assets are cash and trade debtors. The associated credit risk is limited as the group's clients are predominantly public sector entities, which have a strong credit rating supported by the Scottish Government.

 

Liquidity Risk

The group aims to mitigate liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs through reviewing trading and preparing forecasts.

 

Competitive Risk

The group is reliant on public bodies for contracts which are subject to periodic competitive tender. Renewal of these contracts is uncertain and based on financial and performance criteria.

BEAR Scotland Limited
Strategic report (continued)
for the year ended 31 December 2024
- 4 -
Key performance indicators

The group’s long-term contracts have operational KPIs related specifically to the service delivery for each contract which are monitored and reviewed monthly with our clients.

 

The group’s operational KPIs are centred on contract profitability and overall group profit. The group achieved operational key performance indicators during the year. Profits were 0.2% above the business plan target for the year. We continue to manage unprecedented challenges of market salary increases and recruitment.

 

Management Systems

 

The group operates under the following UKAS approved certified management systems: ISO 45001:2018 (Occupational, Health and Safety), ISO 14001:2015 (Environmental), ISO 9001:2015 (Quality). These standards are integral to the day-to-day operation of our business. In addition, the business operates a number of National Highway Sector Scheme certifications. The group views the health, safety and wellbeing of our employees and those stakeholders who depend on our services, as its prime objective.

 

Employee involvement

 

The group takes its responsibilities to employees seriously and as a policy, provides employees with information on matters of concern to them. It is also the policy of the group to consult, where practical, with employees or their representatives so that their views may be considered in making decisions likely to affect their interests.

 

Equality and Inclusion

 

We offer challenging and worthwhile opportunities for employment to everyone, no matter of gender, sexual orientation, background, age, or disability. Our commitment to inclusion stems from the very top of our business and we know having a wide range of diversity and experience will help us deliver services that respond to our customers and the communities we serve.

 

Having signed the Diversity and Inclusion Charter of the Chartered Institution of Highways and Transportation, we have demonstrated our commitment in our industry to recognise, respect, capitalise and celebrate contributions from different people to strengthen team performance. As supporters of the Disability Confident Scheme the commitment of the group is to provide equal opportunities for individuals in all aspects of employment.

BEAR Scotland Limited
Strategic report (continued)
for the year ended 31 December 2024
- 5 -

Energy and Carbon Reporting

 

GHG emissions and energy use data 2024

UK and offshore energy consumption - kWh

Source

2024

2023

Electricity

2,486,452

1,476,014

Gas

638,334

971,628

Transport

23,652,682

23,215,542

Heating Oil

76,690

85,580

Total

26,854,158

25,748,764

 

 

UK and offshore emissions tCO2e

 

2024

2023

Emissions from combustion of gas tCO2e (Scope 1)

589

187

Emissions from combustion of fuel for transport purposes (Scope 1)

5,651

 

4,124

Emissions from business travel in rental cars or employee-owned vehicles where company is responsible for purchasing the fuel (Scope 3)

1,476

Emissions from purchased electricity (Scope 2, location-based)

338

191

Total CO2 emissions

6,597

6,000

Intensity ratio - tCO2e per FTE

8

8

FTEs at 31 December 2024

873

789

Methodology

Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance

 

 

Energy efficiency / Carbon reduction actions

Renewable energy

BEAR Scotland sourced 717,862 kWhs of renewable energy, saving 146 tonnes of CO2. The electricity is certified as renewable through Renewable Generation Guarantee of Origin certificates.

BEAR Scotland Limited
Strategic report (continued)
for the year ended 31 December 2024
- 6 -

LED lighting

 

We are committed to replacing any light fittings and emergency light fittings with LED compatible fittings when facilities requests are made and when practicable. This is generally replacement of fluorescent tube type fittings and LED improvements.

 

Transport

 

Emissions from transportation represent most of our carbon emissions. In recognition of this in 2025 we will look to further expand the number of EV charging points across our network and electric vehicles. We will also investigate the use of other low carbon fuel available to help decarbonise our fleet as well as trailing zero emission plant equipment where possible.

 

 

Future developments

 

The business is now embarking on a programme of focused business improvement and innovation following a sustained period of bidding. We will manage and maintain two of the four Transport Scotland Trunk Road Maintenance Contracts until at least 2028. In addition, we will operate the M80 Contract to August 2031 and the A92 Contract to at least August 2030.

On behalf of the board

I W Murray
Director
31 July 2025
BEAR Scotland Limited
Directors' report
for the year ended 31 December 2024
- 7 -

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 12.

The profit for the year, after taxation, amounted to £3,715,345 (2023: £717,364).

Ordinary dividends were paid amounting to £4,750,000 (2023: £1,000,000) The Directors do not recommend payment of a further dividend.

Directors

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

M Godsell
A K Mackenzie
J M Sunderland
M S Brown
I W Murray
J S Haluch
J Dixon
A M Mackay
(Appointed 3 February 2024)
M J Solanki
A E Thorpe
(Appointed 1 August 2024)
Qualifying third party indemnity provisions

The group has made qualifying third party indemnity provisions for the benefit of its Directors during the year. These provisions remain in force at the reporting date.

Charitable contributions

During the year the company made charitable contributions totalling £20,086 (2023: £17,202).

Matters covered in the strategic report

The business review including future developments and assessment of financial risk management is included within the strategic report.

Post reporting date events

No notable events post year-end.

Auditor

Following a competitive tender process for audit services, Henderson Loggie LLP was successful and have replaced Grant Thornton as our auditors.

 

The auditor, Henderson Loggie LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

 

BEAR Scotland Limited
Directors' report (continued)
for the year ended 31 December 2024
- 8 -
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 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.

 

To the best of our knowledge:

 

 

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
I W Murray
Director
31 July 2025
BEAR Scotland Limited
Independent auditor's report
to the members of BEAR Scotland Limited
- 9 -
Opinion

We have audited the financial statements of BEAR Scotland 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 group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 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's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our 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.

BEAR Scotland Limited
Independent auditor's report (continued)
to the members of BEAR Scotland Limited
- 10 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our 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, 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 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 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, is detailed below:

BEAR Scotland Limited
Independent auditor's report (continued)
to the members of BEAR Scotland Limited
- 11 -

As part of our planning process:

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

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 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.

Diana Penny (Senior Statutory Auditor)
For and on behalf of Henderson Loggie LLP
31 July 2025
Chartered Accountants
Statutory Auditor
The Stamp Office
Level 5
10 - 14 Waterloo Place
Edinburgh
EH1 3EG
BEAR Scotland Limited
Group statement of comprehensive income
for the year ended 31 December 2024
- 12 -
2024
2023
Notes
£
£
Turnover
3
198,972,330
165,839,022
Cost of sales
(163,889,796)
(136,345,146)
Gross profit
35,082,534
29,493,876
Administrative expenses
(29,816,421)
(28,182,869)
Operating profit
4
5,266,113
1,311,007
Interest receivable and similar income
8
320,071
235,582
Interest payable and similar expenses
9
(540,894)
(483,495)
Profit before taxation
5,045,290
1,063,094
Tax on profit
10
(1,329,945)
(345,730)
Profit for the financial year
25
3,715,345
717,364
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.
BEAR Scotland Limited
Group balance sheet
as at 31 December 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
-
0
80,486
Tangible assets
13
18,539,624
19,796,029
18,539,624
19,876,515
Current assets
Stocks
16
3,975,436
3,783,239
Debtors
17
13,698,181
8,588,745
Cash at bank and in hand
19,314,186
14,222,941
36,987,803
26,594,925
Creditors: amounts falling due within one year
18
(30,292,278)
(18,009,661)
Net current assets
6,695,525
8,585,264
Total assets less current liabilities
25,235,149
28,461,779
Creditors: amounts falling due after more than one year
19
(8,330,803)
(11,895,933)
Provisions for liabilities
Provisions
21
(600,723)
(477,464)
Deferred tax liability
22
(2,030,931)
(781,035)
(2,631,654)
(1,258,499)
Net assets
14,272,692
15,307,347
Capital and reserves
Called up share capital
24
200,000
200,000
Profit and loss reserves
25
14,072,692
15,107,347
Total equity
14,272,692
15,307,347
The financial statements were approved by the board of Directors and authorised for issue on 31 July 2025 and are signed on its behalf by:
31 July 2025
I W Murray
Director
Company registration number SC206139 (Scotland)
BEAR Scotland Limited
Company balance sheet
as at 31 December 2024
31 December 2024
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
-
0
80,486
Tangible assets
13
18,539,624
19,796,029
Investments
14
1,098
1,098
18,540,722
19,877,613
Current assets
Stocks
16
3,975,436
3,783,239
Debtors
17
13,698,181
8,588,745
Cash at bank and in hand
19,314,186
14,222,941
36,987,803
26,594,925
Creditors: amounts falling due within one year
18
(30,293,337)
(18,010,720)
Net current assets
6,694,466
8,584,205
Total assets less current liabilities
25,235,188
28,461,818
Creditors: amounts falling due after more than one year
19
(8,330,803)
(11,895,933)
Provisions for liabilities
Provisions
21
(600,723)
(477,464)
Deferred tax liability
22
(2,030,931)
(781,035)
(2,631,654)
(1,258,499)
Net assets
14,272,731
15,307,386
Capital and reserves
Called up share capital
24
200,000
200,000
Profit and loss reserves
25
14,072,731
15,107,386
Total equity
14,272,731
15,307,386

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,715,345 (2023 - £717,364 profit).

The financial statements were approved by the board of Directors and authorised for issue on 31 July 2025 and are signed on its behalf by:
31 July 2025
I W Murray
Director
Company registration number SC206139 (Scotland)
BEAR Scotland Limited
Group statement of changes in equity
for the year ended 31 December 2024
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
200,000
15,389,983
15,589,983
Year ended 31 December 2023:
Profit and total comprehensive income
-
717,364
717,364
Dividends
11
-
(1,000,000)
(1,000,000)
Balance at 31 December 2023
200,000
15,107,347
15,307,347
Year ended 31 December 2024:
Profit and total comprehensive income
-
3,715,345
3,715,345
Dividends
11
-
(4,750,000)
(4,750,000)
Balance at 31 December 2024
200,000
14,072,692
14,272,692
BEAR Scotland Limited
Company statement of changes in equity
for the year ended 31 December 2024
- 16 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
200,000
15,390,022
15,590,022
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
717,364
717,364
Dividends
11
-
(1,000,000)
(1,000,000)
Balance at 31 December 2023
200,000
15,107,386
15,307,386
Year ended 31 December 2024:
Profit and total comprehensive income
-
3,715,345
3,715,345
Dividends
11
-
(4,750,000)
(4,750,000)
Balance at 31 December 2024
200,000
14,072,731
14,272,731
BEAR Scotland Limited
Group statement of cash flows
for the year ended 31 December 2024
- 17 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
15,650,109
2,528,820
Interest paid
(540,894)
(483,495)
Income taxes refunded/(paid)
11,332
(910,949)
Net cash inflow from operating activities
15,120,547
1,134,376
Investing activities
Purchase of tangible fixed assets
(1,535,732)
(1,726,692)
Proceeds from disposal of tangible fixed assets
310,219
487,910
Interest received
320,071
235,582
Net cash used in investing activities
(905,442)
(1,003,200)
Financing activities
Payment of finance leases obligations
(4,373,860)
(3,494,882)
Dividends paid to equity shareholders
(4,750,000)
(1,000,000)
Net cash used in financing activities
(9,123,860)
(4,494,882)
Net increase/(decrease) in cash and cash equivalents
5,091,245
(4,363,706)
Cash and cash equivalents at beginning of year
14,222,941
18,586,647
Cash and cash equivalents at end of year
19,314,186
14,222,941
BEAR Scotland Limited
Notes to the group financial statements
for the year ended 31 December 2024
- 18 -
1
Accounting policies
Company information

BEAR Scotland Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Bear House, Inveralmond Road, Inveralmond Industrial Estate, Perth, PH1 3TW.

 

The group consists of BEAR Scotland Limited and its subsidiary undertaking.

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. The principal accounting policies adopted are set out below.

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Group Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the control ceases.

 

The consolidated financial statements present the results of group and its own subsidiaries ("the group") as they formed a single entity.

 

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

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

BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
1
Accounting policies (continued)
- 19 -
1.3
Going concern

At the time of approving the financial statements, trading forecasts and projections show that the group is expected to continue generating positive cash flows for the foreseeable future.

 

The group holds adequate cash balances at year end with no borrowing other than finance lease and hire purchase contracts. The group's main customer is Transport Scotland, a government agency, which is considered to be financially stable, with the group continuing to benefit from ongoing long term contracts.

 

Consequently, the Directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future - thus, they continue to adopt the going concern basis of accounting in preparing these financial statements.

1.4
Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes and is recognised as follows:

Revenue from contracts for the construction and maintenance of roads is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

 

Revenue from short term provision of services is recognised in the period in which the services are provided in accordance with the the stage of completion based on pre-agreed rates.

1.5
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.

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:

Software
4 years
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at historical cost net of accumulated 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:

Leasehold land and buildings
3 to 15 years
Plant and equipment
3 to 10 years
Fixtures and fittings
3 to 8 years

Assets in the course of construction are valued at cost and not depreciated until they are brought in to use.

BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
1
Accounting policies (continued)
- 20 -

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 profit and loss account.

1.7
Fixed asset investments

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

1.8
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 the estimated future cash flows derived from the assets have been adversely impacted. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) 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.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. The value in the financial statements is based on the weighted average of these costs.

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

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts.

1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
1
Accounting policies (continued)
- 21 -
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.

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 group 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 group 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.

Derecognition of financial liabilities

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

BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
1
Accounting policies (continued)
- 22 -
1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

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 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 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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.15
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.

BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
1
Accounting policies (continued)
- 23 -
1.16
Retirement benefits

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

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

2
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.

BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
2
Judgements and key sources of estimation uncertainty (continued)
- 24 -
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.

Winter service for Network Maintenance Contracts

The group provides a winter maintenance service for the Scottish Trunk Road Contracts for a fixed sum per month. The Directors assess the historical activity and experience to arrive at a reasonable allowance for the delivery of this service. They expect there to be an exceptional winter every four years, and thus defer a portion of the winter lump sum amounts received for these expected exceptional costs. This is reviewed every winter period.

Salt stock valuation

The group holds large quantities of salt stock, which can be held for a number of years. This requires the group to record the volume of salt held, and multiply this by a salt-density factor at each year end, to establish what tonnage of salt stock is held.

Recoverability of trade receivables

The Directors have utilised their knowledge of the group's main customer to assess the likelihood of amounts invoiced being received, and have appropriately provided for those amounts that have been invoiced that may not be received.

Sub-contractor accruals

Sub-contractors are routinely engaged by the group to complete work across the road network. Work is completed daily, and in the absence of invoices from suppliers, the group must assess what value of work has been performed by the sub-contractors pre-year end. This relies upon the expertise and knowledge of the commercial team within the group, and as such there is an inherent degree of estimation.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Highway maintenance
198,972,330
165,839,022

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
1,228,389
1,146,625
Depreciation of tangible fixed assets held under finance leases
2,952,953
2,217,754
Profit on disposal of tangible fixed assets
(277,373)
(487,909)
Amortisation of intangible assets
80,486
137,974
Operating lease charges
2,561,594
1,763,824
BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
- 25 -
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
58,000
96,510
For other services
Taxation compliance services
-
9,000
Other taxation services
-
38,300
All other non-audit services
-
4,500
-
51,800
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administrative staff
409
423
409
423
Operational staff
390
389
390
389
Total
799
812
799
812

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
33,123,804
31,954,089
33,123,804
31,954,089
Social security costs
3,299,145
3,071,777
3,299,145
3,071,777
Pension costs
1,184,559
1,491,004
1,184,559
1,491,004
37,607,508
36,516,870
37,607,508
36,516,870

Wages and salaries include £716,554 (2023: £952,230) paid to temporary agency operatives.

BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
- 26 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
475,358
232,200
Company pension contributions to defined contribution schemes
23,862
20,069
499,220
252,269

The number of Directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 2).

 

Included in Directors' emoluments is an accrued charge relating to short term incentives of £69,449 (2023: £28,363).

 

Directors of the group participate in an approved long term incentive plan. LTIP amounts accruing to two (2023 - two) directors at the year end total £46,667 (2023: £26,667).

 

Management fees paid to a related party in relation to Directors' remuneration for the year were £54,923 (2023: £182,850).

 

No management fees are due to a related party at year end (2023: £36,570).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
157,790
120,414
Company pension contributions to defined contribution schemes
10,758
10,358
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits and money market fund
320,071
235,582
9
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
540,894
483,495
BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
- 27 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
34,066
-
0
Adjustments in respect of prior periods
45,983
(145,280)
Total current tax
80,049
(145,280)
Deferred tax
Origination and reversal of timing differences
1,258,428
441,830
Adjustment in respect of prior periods
(8,532)
49,180
Total deferred tax
1,249,896
491,010
Total tax charge
1,329,945
345,730

The corporation tax rate effective in the period has been set at 25% (2023 - 23.52%).

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
5,045,290
1,063,094
Expected tax charge based on the standard rate of corporation tax in the UK of 25% (2023: 23.52%)
1,261,323
250,040
Tax effect of expenses that are not deductible in determining taxable profit
20,888
-
0
Tax effect of income not taxable in determining taxable profit
-
0
32
Tax effect of utilisation of tax losses not previously recognised
-
0
130,415
Adjustments in respect of prior years
45,983
(145,280)
Permanent capital allowances in excess of depreciation
38,665
31,151
Other permanent differences
(28,382)
4,046
Deferred tax adjustments in respect of prior years
(8,532)
49,180
Remeasurement of deferred tax for changes in tax rates
-
0
26,146
Taxation charge
1,329,945
345,730
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
4,750,000
1,000,000
BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
11
Dividends (continued)
- 28 -

 

BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
- 29 -
12
Intangible fixed assets
Group & Company
Software
£
Cost
At 1 January 2024 and 31 December 2024
551,898
Amortisation and impairment
At 1 January 2024
471,412
Amortisation charged for the year
80,486
At 31 December 2024
551,898
Carrying amount
At 31 December 2024
-
0
At 31 December 2023
80,486
13
Tangible fixed assets
Group & Company
Leasehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
£
Cost
At 1 January 2024
2,769,460
900,703
34,149,196
2,120,014
39,939,373
Additions
142,188
445,281
2,051,900
318,414
2,957,783
Disposals
(17,500)
-
0
(2,346,608)
-
0
(2,364,108)
Transfers
-
0
(825,668)
825,668
-
0
-
0
At 31 December 2024
2,894,148
520,316
34,680,156
2,438,428
40,533,048
Depreciation and impairment
At 1 January 2024
1,663,591
-
0
16,949,817
1,529,936
20,143,344
Depreciation charged in the year
214,933
-
0
3,784,113
182,296
4,181,342
Eliminated in respect of disposals
(17,500)
-
0
(2,313,762)
-
0
(2,331,262)
At 31 December 2024
1,861,024
-
0
18,420,168
1,712,232
21,993,424
Carrying amount
At 31 December 2024
1,033,124
520,316
16,259,988
726,196
18,539,624
At 31 December 2023
1,105,869
900,703
17,199,379
590,078
19,796,029
BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
13
Tangible fixed assets (continued)
- 30 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. The depreciation charge on these assets is included in the Operating profit note.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
13,889,249
14,663,658
13,889,249
14,663,658
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
1,098
1,098
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
1,098
Carrying amount
At 31 December 2024
1,098
At 31 December 2023
1,098
15
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Growing Concern Scotland Ltd
BEAR House, Inveralmond Road, Inveralmond Industrial Estate, Perth, Perthshire, PH1 3TW
Ordinary
100.00

The company was dormant during the financial period and is registered in Scotland.

BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
- 31 -
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
3,975,436
3,783,239
3,975,436
3,783,239

Stock recognised in cost of sales during the year as an expense was £13,305,014 (2023: £11,118,451). No impairment losses were recognised in either the current or prior period.

17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
11,088,375
5,635,139
11,088,375
5,635,139
Corporation tax recoverable
476,316
567,697
476,316
567,697
Amounts owed by related parties
721,197
150,159
721,197
150,159
Other debtors
3,001
-
3,001
-
0
Prepayments and accrued income
1,409,292
2,235,750
1,409,292
2,235,750
13,698,181
8,588,745
13,698,181
8,588,745

An impairment loss of £53,427 (2023: £309,476) was recognised against trade debtors.

Amounts owed by related parties are interest-free and repayable on demand.

18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
20
4,139,055
4,118,424
4,139,055
4,118,424
Trade creditors
9,203,449
5,596,512
9,203,449
5,596,512
Amounts owed to group undertakings
-
0
-
0
1,098
1,098
Amounts owed to related parties
1,890,528
1,859,464
1,890,528
1,859,464
Other taxation and social security
7,707,007
2,770,740
7,707,007
2,770,740
Other creditors
611,386
646,043
611,347
646,043
Accruals and deferred income
6,740,853
3,018,478
6,740,853
3,018,439
30,292,278
18,009,661
30,293,337
18,010,720

There is a bank overdraft facility available which is secured by a bond and floating charge over the assets and shareholder guarantees of the company.

BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
- 32 -
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
20
5,466,928
8,439,368
5,466,928
8,439,368
Accruals and deferred income
2,863,875
3,456,565
2,863,875
3,456,565
8,330,803
11,895,933
8,330,803
11,895,933
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
4,139,055
4,118,424
4,139,055
4,118,424
In two to five years
5,466,928
8,439,368
5,466,928
8,439,368
9,605,983
12,557,792
9,605,983
12,557,792

Finance lease payments represent rentals payable by the group for certain items of plant and machinery. Leases are secured against the asset to which they relate. The value of the assets held as security is £13,889,249 (2023: £14,663,658).

21
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Demobilisation provision
600,723
477,464
600,723
477,464
Movements on provisions:
Demobilisation provision
Group
£
At 1 January 2024
477,464
Additional provisions in the year
123,259
At 31 December 2024
600,723
BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
21
Provisions for liabilities (continued)
- 33 -
Demobilisation provision
Company
£
At 1 January 2024
477,464
Additional provisions in the year
123,259
At 31 December 2024
600,723

This provision relates to de-mobilisation costs associated with long-term contracts. It includes expenses for de-mobilising staff and machinery at the termination dates of these contracts. The group estimates this liability to be £600,723 at 31 December 2024 (2023: £477,464), based on past experience, and has accordingly provided this sum. The provision is expected to be utilised upon the cessation of the related contracts.

22
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
£
£
Accelerated capital allowances
2,952,495
2,831,710
Tax losses
(688,066)
(1,963,912)
Short term timing differences
(233,498)
(86,763)
2,030,931
781,035
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
2,952,495
2,831,710
Tax losses
(688,066)
(1,963,912)
Short term timing differences
(233,498)
(86,763)
2,030,931
781,035
BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
22
Deferred taxation (continued)
- 34 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
781,035
781,035
Charge to profit or loss
1,249,896
1,249,896
Liability at 31 December 2024
2,030,931
2,030,931

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,184,559
1,491,004

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.

 

Contributions amounting to £290,192 (2023: £264,675) were payable to the scheme at year end and are included in creditors.

24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
'A' Ordinary shares of £1 each
75,000
75,000
75,000
75,000
'B' Ordinary shares of £1 each
75,000
75,000
75,000
75,000
'C' Ordinary shares of £1 each
50,000
50,000
50,000
50,000
200,000
200,000
200,000
200,000

All shares rank pari passu except as regards the appointment of Directors and quorum at a general meeting as follows:

 

Appointment of Directors

The holders of the majority of each class of shares shall be entitled to appoint, remove and reappoint as necessary, two persons as Directors of the company such that there shall be six voting Directors in all. Additional non-voting Directors may be appointed by agreement of all classes of shareholders.

 

Quorum

A quorum at general meetings shall consist of a member or members not holding less than half the nominal value of each class of share.

BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
- 35 -
25
Reserves
Profit and loss reserves

Profit and loss reserves include all current and prior years retained profit and losses.

26
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
2,347,085
1,058,376
2,347,085
1,058,376
Between two and five years
5,168,445
2,247,771
5,168,445
2,247,771
In over five years
1,933,245
2,465,594
1,933,245
2,465,594
9,448,775
5,771,741
9,448,775
5,771,741
27
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
914,806
1,122,991
914,806
1,122,991
BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
- 36 -
28
Related party transactions
Transactions with related parties

Included in the Statement of Comprehensive Income and Balance Sheet are the following transactions and year end balances with these related parties. All transactions were undertaken on normal trading terms.

 

Vinci Construction Holding Limited and its subsidiary undertakings

Sales of £1,517,429 (2023: £554,463) and purchases of £1,972,223 (2023: £83,388) have been recognised in the financial statements. At year end the group were owed £693,349 (2023: £Nil) by the related party and had a liability of £213,207 (2023: £173,625) with them. In the year, a dividend of £1,781,250 (2023: £375,000) was paid out.

 

Jacobs UK Ltd and its subsidiary undertakings

Sales of £Nil (2023: £Nil) and purchases of £5,117,864 (2023: £6,073,783) have been recognised in the financial statements. At year end the group were owed £11,458 (2023: £Nil) by the related party and had a liability of £383,033 (2023: £387,328) with them. In the year, a dividend of £1,187,500 (2023: £250,000) was paid out.

 

Breedon Group plc and its subsidiary undertakings

Sales of £3,882 (2023: £6,314) and purchases of £27,572,327 (2023: £21,074,081) have been recognised in the financial statements. At year end the group were owed £16,390 (2023: £16,390) by the related party and had a liability of £1,258,305 (2023: £239,871) with them. In the year, a dividend of £1,781,250 (2023: £375,000) was paid out.

 

Ringway Jacobs Ltd

Sales of £Nil (2023: £Nil) and purchases of £83,352 (2023: £11,760) have been recognised in the financial statements. At year end the group were owed £Nil (2023: £Nil) by the related party and had a liability of £36,163 (2023: £Nil) with them.

29
Controlling party

The company is jointly owned by Vinci Construction Holding Limited, Jacobs UK Limited, and Breedon Facilities Management Limited. These entities hold £75,000, £50,000, and £75,000 of the company's share capital respectively (2023: £75,000, £50,000, and £75,000).

 

These companies are incorporated in the United Kingdom and represent shareholder parties as defined by FRS 102.

 

Breedon Facilities Management Limited is controlled by Breedon Trading Limited. Both companies are controlled by Breedon Group plc. Vinci Construction Holding Limited is controlled by Vinci SA.

 

There is no ultimate controlling party.

BEAR Scotland Limited
Notes to the group financial statements (continued)
for the year ended 31 December 2024
- 37 -
30
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
3,715,345
717,364
Adjustments for:
Taxation charged
1,329,945
345,730
Finance costs
540,894
483,495
Investment income
(320,071)
(235,582)
Gain on disposal of tangible fixed assets
(277,373)
(481,043)
Amortisation and impairment of intangible assets
80,486
137,974
Depreciation and impairment of tangible fixed assets
4,181,342
3,364,379
Increase in provisions
123,259
637,707
Movements in working capital:
Increase in stocks
(192,197)
(841,849)
(Increase)/decrease in debtors
(5,200,817)
3,088,817
Increase/(decrease) in creditors
11,669,296
(4,688,172)
Cash generated from operations
15,650,109
2,528,820
31
Analysis of changes in net funds - group
1 January 2024
Cash flows
New finance leases
31 December 2024
£
£
£
£
Cash at bank and in hand
14,222,941
5,091,245
-
19,314,186
Obligations under finance leases
(12,557,792)
4,373,860
(1,422,051)
(9,605,983)
1,665,149
9,465,105
(1,422,051)
9,708,203
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