REGISTERED NUMBER: SC153924 (Scotland)

MCKINNON & FORBES LIMITED

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Balance Sheet

1

Notes to the Financial Statements

3

FIXED ASSETS

Tangible assets

4

548,943

598,227

CURRENT ASSETS

Stocks

75,987

105,643

Debtors

5

398,238

513,244

Cash at bank and in hand

149,418

5,191

623,643

624,078

CREDITORS

Amounts falling due within one year

6

607,252

550,441

NET CURRENT ASSETS

16,391

73,637

TOTAL ASSETS LESS CURRENT LIABILITIES

565,334

671,864

CREDITORS

Amounts falling due after more than one year

7

(27,227

)

(32,537

)

PROVISIONS FOR LIABILITIES

(52,391

)

(58,828

)

NET ASSETS

485,716

580,499

CAPITAL AND RESERVES

Called up share capital

15,000

15,000

Profit and loss account

470,716

565,499

SHAREHOLDERS' FUNDS

485,716

580,499

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 16 July 2025 and were signed on its behalf by:

R McKinnon Jnr - Director

1.	STATUTORY INFORMATION

McKinnon & Forbes Limited is a private company limited by shares, incorporated in Scotland. The registered office is Caledonia House, 89 Seaward Street, Glasgow, G41 1HJ.

The financial statements are presented in Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There were no material departures from that standard. The financial statements have been prepared under the historical cost convention.

Judgements

The company considers on an annual basis the judgements that are made by management when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements. The directors consider there are no such significant judgements.

Turnover

Turnover represents the invoice value of goods and services rendered in the year, excluding value added tax. The company's policy is to recognise a sale when substantively all the risks and rewards in connection with the goods and services have been passed to the buyer.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Land and buildings

-

4% straight line

Plant and machinery etc

-

33% on cost, 25% on reducing balance, 20% on reducing balance, 10% on cost and written off over the term of the lease

Tangible fixed assets are included at cost less accumulated depreciation and accumulated impairment.

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, like plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher of value in use and the fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss.

Stocks

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

Taxation

Taxation represents the sum of tax currently payable and deferred tax. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

With the exception of changes arising on the initial recognition of a business combination, the tax expense is presented either in profit or loss, other comprehensive income or statement of changes in equity depending on the transaction that resulted in the tax expense.

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

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.

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 agreements 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.

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Rentals receivable under operating leases are credited to the profit and loss account as they accrue.

Employee benefits

Short-term employee benefits are recognised as an expense in the period in which they are incurred.

Provisions

Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from other third parties and loans to and from related parties.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and trade creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received.

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in profit or loss.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

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

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 26 (2023 - 29 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 January 2024

584,461

529,411

1,113,872

Additions

-

53,613

53,613

Disposals

-

(34,218

)

(34,218

)

At 31 December 2024

584,461

548,806

1,133,267

DEPRECIATION

At 1 January 2024

221,545

294,100

515,645

Charge for year

23,536

61,021

84,557

Eliminated on disposal

-

(15,878

)

(15,878

)

At 31 December 2024

245,081

339,243

584,324

NET BOOK VALUE

At 31 December 2024

339,380

209,563

548,943

At 31 December 2023

362,916

235,311

598,227

At the balance sheet date the net book value of assets held under hire purchase and finance lease agreements amounted to £93,968 (2023: £124,977).

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

351,584

351,300

Other debtors

46,654

161,944

398,238

513,244

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Hire purchase contracts (see note 8)

33,755

50,855

Trade creditors

156,783

153,459

Taxation and social security

258,417

241,565

Other creditors

158,297

104,562

607,252

550,441

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Hire purchase contracts (see note 8)

27,227

32,537

8.	LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

Hire purchase

contracts

2024

2023

£

£

Net obligations repayable:

Within one year

33,755

50,855

Between one and five years

27,227

32,537

60,982

83,392

At the balance sheet date the company had commitments amounting to £40,324 (2023: £25,254) under non-cancellable operating leases.

9.	SECURED DEBTS

The following secured debts are included within creditors:

2024

2023

£

£

Hire purchase contracts

60,982

83,392

Hire purchase obligations are secured over the assets to which the contracts relate.

10.	RELATED PARTY DISCLOSURES

At the balance sheet date the company owed the directors £41,094 (2023: £4,454). The amounts due are interest free, unsecured and have no fixed terms of repayment.