REGISTERED NUMBER: SC063627 (Scotland)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

NICHOL MCKAY LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

A Nichol

REGISTERED OFFICE:

Building 190

Prestwick Airport

Monkton

Prestwick

Ayrshire

KA9 2SB

REGISTERED NUMBER:

SC063627 (Scotland)

AUDITORS:

McLay, McAlister & McGibbon LLP

Chartered Accountants and Statutory Auditors

145 St. Vincent Street

Glasgow

G2 5JF

BANKERS:

Virgin Money

Alloway Street

AYR

KA7 1SP

SOLICITORS:

Dentons UKMEA LLP

1 George Square

Glasgow

G2 1AL

FIXED ASSETS

Tangible assets

4

1,072,337

892,213

Investments

5

753,000

-

1,825,337

892,213

CURRENT ASSETS

Stocks

6

719,231

835,425

Debtors

7

1,407,511

1,792,696

Cash at bank

112,524

54,383

2,239,266

2,682,504

CREDITORS

Amounts falling due within one year

8

2,682,267

3,032,657

NET CURRENT LIABILITIES

(443,001

)

(350,153

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,382,336

542,060

CREDITORS

Amounts falling due after more than one year

9

(657,287

)

(97,288

)

PROVISIONS FOR LIABILITIES

12

(4,187

)

-

NET ASSETS

720,862

444,772

CAPITAL AND RESERVES

Called up share capital

132,633

132,633

Capital redemption reserve

25,262

25,262

Retained earnings

562,967

286,877

720,862

444,772

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 4 September 2025 and were signed by:

A Nichol - Director

1.	STATUTORY INFORMATION

Nichol McKay Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

After making enquiries and assuming the continued support of the company's funders, the director believes that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly the accounts continue to be prepared on the going concern basis.

Preparation of consolidated financial statements

The financial statements contain information about Nichol McKay Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Land and buildings

-

over the term of the lease

Plant and machinery etc

-

20% on reducing balance, 15% on reducing balance and over 5 years

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

The company's policy is to review the remaining useful economic lives and residual value of plant and machinery, fixtures and fittings, motor vehicles and office equipment on an on-going basis and to adjust the depreciation charge to reflect the remaining useful economic life and residual value.

Fully depreciated assets are retained in cost and related accumulated depreciation until they are removed from service. In the case of disposals, assets and related depreciation are removed from the financial statements and the net amount, less proceeds from disposal, is charged or credited to the income statement.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Capital grants received are deferred and released over the life of the related asset.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in, first out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Taxation

The tax credit for the year comprises deferred tax. Tax is recognised in the Income Statement except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Deferred tax

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors and other debtors are recognised at the settlement amount due with appropriate allowances for any irrecoverable amounts when there is objective evidence the asset is impaired.

Trade creditors

Trade creditors and other creditors are recognised where the company has a present obligation resulting from a past event and are recognised at the settlement amount due after allowing for any trade discounts due.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the relevant period of borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount and obligation.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as an employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 88 (2023 - 86 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 January 2024

809,651

8,902,334

9,711,985

Additions

23,313

376,568

399,881

Disposals

-

(84,879

)

(84,879

)

At 31 December 2024

832,964

9,194,023

10,026,987

DEPRECIATION

At 1 January 2024

735,373

8,084,399

8,819,772

Charge for year

11,688

170,888

182,576

Eliminated on disposal

-

(47,698

)

(47,698

)

At 31 December 2024

747,061

8,207,589

8,954,650

NET BOOK VALUE

At 31 December 2024

85,903

986,434

1,072,337

At 31 December 2023

74,278

817,935

892,213

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

etc

£

COST

At 1 January 2024

2,024,609

Additions

370,636

Disposals

(84,879

)

Transfer to ownership

(180,744

)

Reclassification/transfer

158,471

At 31 December 2024

2,288,093

DEPRECIATION

At 1 January 2024

1,568,953

Charge for year

106,941

Eliminated on disposal

(47,698

)

Transfer to ownership

(121,031

)

Reclassification/transfer

128,628

At 31 December 2024

1,635,793

NET BOOK VALUE

At 31 December 2024

652,300

At 31 December 2023

455,656

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

Additions

753,000

At 31 December 2024

753,000

NET BOOK VALUE

At 31 December 2024

753,000

6.

STOCKS

31.12.24

31.12.23

£

£

Raw materials

276,629

400,407

Work-in-progress

352,477

341,893

Finished goods

90,125

93,125

719,231

835,425

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

£

Trade debtors

891,876

1,234,310

Other debtors

515,635

558,386

1,407,511

1,792,696

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

£

Bank loans and overdrafts

724,103

1,110,858

Hire purchase contracts (see note 10)

142,699

75,901

Trade creditors

1,059,240

1,120,733

Amounts owed to group undertakings

57,571

-

Taxation and social security

263,710

379,190

Other creditors

434,944

345,975

2,682,267

3,032,657

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.24

31.12.23

£

£

Bank loans

-

28,671

Hire purchase contracts (see note 10)

527,287

56,950

Other creditors

130,000

11,667

657,287

97,288

10.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

31.12.24

31.12.23

£

£

Net obligations repayable:

Within one year

142,699

75,901

Between one and five years

527,287

56,950

669,986

132,851

Non-cancellable

operating leases

31.12.24

31.12.23

£

£

Within one year

304,741

297,656

Between one and five years

323,108

568,556

627,849

866,212

11.	SECURED DEBTS

The following secured debts are included within creditors:

31.12.24

31.12.23

£

£

Bank overdrafts

696,054

1,044,191

Other loans

141,667

31,667

Hire purchase contracts

669,986

132,851

1,507,707

1,208,709

Invoice finance creditor is denominated in £ sterling with a nominal interest rate of 9.1%. The carrying amount at the year end is £696,054 (2023 - £1,044,191).

The invoice finance creditor is secured by a charge over the debtor book together with a bond and floating charge over the whole of the company's assets.

Other loans with a carrying amount of £11,667 (2023 - £31,667) is denominated in £ sterling with a nominal interest rates of 6%.

Other loans are secured by a bond and floating charge over the whole of the company's assets and by personal guarantee.

Obligations under finance leases and hire purchase contracts are secured by a charge over the specific assets to which they relate.

12.	PROVISIONS FOR LIABILITIES

31.12.24

£

Deferred tax

4,187

Deferred

tax

£

Balance at 1 January 2024

(90,085

)

Provided during year

94,272

Balance at 31 December 2024

4,187

13.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Paul Martin (Senior Statutory Auditor)

for and on behalf of McLay, McAlister & McGibbon LLP

14.	CONTINGENT LIABILITIES

The company has received assessments from HMRC in respect of tax planning carried out in prior years. These assessments have been appealed and postponed. No provision has been made in these financial statements as the potential liability still cannot be fully quantified.

15.	CAPITAL COMMITMENTS

31.12.24

31.12.23

£

£

Contracted but not provided for in the

financial statements

-

126,000

16.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 December 2024 and 31 December 2023:

31.12.24

31.12.23

£

£

A Nichol

Balance outstanding at start of year

81,296

56,612

Amounts advanced

44,360

24,684

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

125,656

81,296

No interest is charged on this balance and is repayable on demand.

17.	RELATED PARTY DISCLOSURES

Included in other debtors is a balance of £221,579 (2023 - £216,779) which relates to sums paid by the company for the Estate of Mr R. B. Nichol, former director and majority shareholder of the company. These sums will be recovered on the winding up of the Estate.