Company Registration Number: SC016923
FOR THE PERIOD ENDED 29 DECEMBER 2024
MIDLAND BLUEBIRD LIMITED
COMPANY INFORMATION
MIDLAND BLUEBIRD LIMITED
CONTENTS
MIDLAND BLUEBIRD LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 29 DECEMBER 2024
The company's principal activities are the provision of bus and coach operations in the Central Belt and Lothians of Scotland.
The company's turnover was £25.6m million compared to £21.7 million in the prior period. Profit before tax was £1.8 million compared to a loss of £0.3 million in the prior period.
Growth in passenger volumes and revenue has been driven by a focus on the customer and providing responsive and reliable services. The services benefited from investment in newer vehicles, alongside investment in technology and improved on-street presence to provide better journey information for passengers.
Growth in passenger volumes and revenue has been driven by a focus on the customer and providing responsive and reliable services. The services benefited from investment in newer vehicles, alongside investment in technology and improved on-street presence to provide better journey information for passengers.
There are several potential risks and uncertainties that could have an impact on the company's long-term performance. The directors have established an ongoing process for identifying, evaluating and managing the significant risks and uncertainties faced by the company and continue to assess these on a regular basis in the light of internal and external events.
Specific business risks faced by the company include the following:
Competition risk
The company faces the risk of loss of customers through other bus companies providing improved services or more competitive pricing. Management mitigates the competitive pressure by monitoring competitors' behaviour and strategies to ensure that the company acts appropriately under current market conditions.
Legal and regulatory risk
The directors are aware of the continual change in laws and other regulations and the increasing costs of compliance. The directors conduct regular reviews of safety procedures, equipment specifications, employment requirements, environmental procedures, insurance coverage and other areas to ensure they are appropriate and operating effectively.
Litigation and claims risk
The company has three main insurance risks: third party claims arising from vehicle and general operations; employee injuries; and property damage.
Fuel cost risk
Fuel costs represent a significant proportion of the company's cost base. Fuel prices are directly influenced by international, political and economic circumstances as well as natural disasters. Wherever possible, the company seeks to minimise the operational and financial impact of such events through fixed price forward contracts and other operational efficiency measures.
Labour cost and employee relations and retention risk
Labour costs represent the most significant element of the company's operating costs. The McGill’s group are Real Living Wage employers. The directors continue to monitor employee recruitment, training, personal development and remuneration to ensure the company attracts and retains the right people.
Specific business risks faced by the company include the following:
Competition risk
The company faces the risk of loss of customers through other bus companies providing improved services or more competitive pricing. Management mitigates the competitive pressure by monitoring competitors' behaviour and strategies to ensure that the company acts appropriately under current market conditions.
Legal and regulatory risk
The directors are aware of the continual change in laws and other regulations and the increasing costs of compliance. The directors conduct regular reviews of safety procedures, equipment specifications, employment requirements, environmental procedures, insurance coverage and other areas to ensure they are appropriate and operating effectively.
Litigation and claims risk
The company has three main insurance risks: third party claims arising from vehicle and general operations; employee injuries; and property damage.
Fuel cost risk
Fuel costs represent a significant proportion of the company's cost base. Fuel prices are directly influenced by international, political and economic circumstances as well as natural disasters. Wherever possible, the company seeks to minimise the operational and financial impact of such events through fixed price forward contracts and other operational efficiency measures.
Labour cost and employee relations and retention risk
Labour costs represent the most significant element of the company's operating costs. The McGill’s group are Real Living Wage employers. The directors continue to monitor employee recruitment, training, personal development and remuneration to ensure the company attracts and retains the right people.
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MIDLAND BLUEBIRD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 DECEMBER 2024
To retain the right people, the company believes that good communication with employees is essential. This is delivered through regular briefing and negotiating meetings between the directors, the senior management and employee representatives on the central and depot negotiating committees. The briefing meetings enable senior management to consult employees and to ascertain their views on matters likely to affect their interests.
Environmental risk (including climate change)
The company recognises the importance of its environmental policies, monitors its impact on the environment, and designs and implements policies to reduce any damage that might be caused by its activities. Initiatives designed to minimise the company's impact on the environment include safe disposal of waste, recycling, reducing energy consumption and procuring zero emission vehicles to replace fossil fuelled types. The investment cost of zero emission vehicles comes at a significant premium over fossil fuelled vehicles.
Through our core business activities, we are committed to providing a safe, good quality, reliable and cost-effective public transport to all our customers. Our core business strategy is to increase customer numbers and encourage a greater move towards the use of bus transport. This will support the needs of society to achieve more sustainable travel. We recognise the environmental impacts arising from our business activities and are committed to reducing these through effective environmental management.
The environmental impact of our operations would be reduced significantly, no matter the type of fuel used for propulsion, if bus priority lanes and other congestion busting measures were implemented by local and national government.
Economic risk
An uncertain economic outlook coupled with inflated costs of living could have a negative impact on our businesses in terms of reduced demand and reduced opportunities for growth. To an extent, the company can modify services to react to market changes and to focus on controlling costs to ensure it remains competitive.
Environmental risk (including climate change)
The company recognises the importance of its environmental policies, monitors its impact on the environment, and designs and implements policies to reduce any damage that might be caused by its activities. Initiatives designed to minimise the company's impact on the environment include safe disposal of waste, recycling, reducing energy consumption and procuring zero emission vehicles to replace fossil fuelled types. The investment cost of zero emission vehicles comes at a significant premium over fossil fuelled vehicles.
Through our core business activities, we are committed to providing a safe, good quality, reliable and cost-effective public transport to all our customers. Our core business strategy is to increase customer numbers and encourage a greater move towards the use of bus transport. This will support the needs of society to achieve more sustainable travel. We recognise the environmental impacts arising from our business activities and are committed to reducing these through effective environmental management.
The environmental impact of our operations would be reduced significantly, no matter the type of fuel used for propulsion, if bus priority lanes and other congestion busting measures were implemented by local and national government.
Economic risk
An uncertain economic outlook coupled with inflated costs of living could have a negative impact on our businesses in terms of reduced demand and reduced opportunities for growth. To an extent, the company can modify services to react to market changes and to focus on controlling costs to ensure it remains competitive.
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MIDLAND BLUEBIRD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 DECEMBER 2024
The primary key performance indicators for the company are turnover, net assets and operating profit, which have been discussed above. However, the company's directors use a suite of operational key performance indicators to monitor the development, performance or position of the business.
This report was approved by the board and signed on its behalf.
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MIDLAND BLUEBIRD LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 29 DECEMBER 2024
The directors present their report and the financial statements for the period ended 29 December 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the period, after taxation, amounted to £1,407,028 (2023 - loss £367,386).
The directors who served during the period were:
The directors will review all aspects of performance on a continuous basis and tailor the company’s activity to balance achievable revenue levels with available Government support while giving due consideration to all stakeholder groups.
Engagement with our people is achieved through formal and informal consultation meetings with both employees and their representatives where appropriate. Employees and their representatives are consulted regularly on a wide range of matters affecting their current and future interests. Internal communication tools are used to communicate daily with all colleagues on relevant operational and employment issues and to solicit feedback on any business-related matter.
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MIDLAND BLUEBIRD LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 DECEMBER 2024
There have been no significant events affecting the Company since the year end.
The auditors, Armstrong Watson Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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MIDLAND BLUEBIRD LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MIDLAND BLUEBIRD LIMITED
We have audited the financial statements of Midland Bluebird Limited (the 'Company') for the period ended 29 December 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of 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, except for the possible effects on the current and corresponding figures of the matters described in the Basis for Qualified Opinion section of our report, the financial statements:
In our opinion, except for the possible effects on the current and corresponding figures of the matters described in the Basis for Qualified Opinion section of our report, the financial statements:
∙give a true and fair view of the state of the company’s affairs as at 29 December 2024 and of its profit/loss for the period then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
We were appointed auditor in 2024 with a first audited period ended 1 January 2023. Whilst appointed in 2024 we were unable to observe the counting of physical inventory at either 29 December 2024 or 31 December 2023.
We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 29 December 2024, which are included in the Statement of financial position at £419,256, by using alternative procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.
We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2023 of £559,554, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount at 31 December 2023 was necessary or whether there was any consequential effect on the cost of sales for the period ended 29 December 2024. In addition, were any adjustment to the inventory balance to be required, the Strategic Report and Directors Report would also need to be amended.
Furthermore, we draw attention to the comparative information presented for the period ended 31 December 2023. As a result of previous issues arising from limitations encountered in the audit of the financial statements for the period ended 1 January 2023, including the inability to access books and records following the acquisition of Midland Bluebird Limited there may have been adjustments recognised within the 31 December 2023 period figures as a result of issues from 1 January 2023. With the exception of the matter in respect of inventories held at 31 December 2023 described above we did not identify any material issues from our audit procedures over the balance sheet as at that date. However, due to the nature of the period ended 1 January 2023 limitations and the consequential adjustments that may have arisen in the 31 December 2023 period, the comparability of the prior period opening balances within the current period’s financial statements may be affected. In addition, were any adjustment to the prior period opening balances be required, the strategic report and directors report would also need to be amended.
We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 29 December 2024, which are included in the Statement of financial position at £419,256, by using alternative procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.
We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2023 of £559,554, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount at 31 December 2023 was necessary or whether there was any consequential effect on the cost of sales for the period ended 29 December 2024. In addition, were any adjustment to the inventory balance to be required, the Strategic Report and Directors Report would also need to be amended.
Furthermore, we draw attention to the comparative information presented for the period ended 31 December 2023. As a result of previous issues arising from limitations encountered in the audit of the financial statements for the period ended 1 January 2023, including the inability to access books and records following the acquisition of Midland Bluebird Limited there may have been adjustments recognised within the 31 December 2023 period figures as a result of issues from 1 January 2023. With the exception of the matter in respect of inventories held at 31 December 2023 described above we did not identify any material issues from our audit procedures over the balance sheet as at that date. However, due to the nature of the period ended 1 January 2023 limitations and the consequential adjustments that may have arisen in the 31 December 2023 period, the comparability of the prior period opening balances within the current period’s financial statements may be affected. In addition, were any adjustment to the prior period opening balances be required, the strategic report and directors report would also need to be amended.
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 qualified opinion on the financial statements.
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MIDLAND BLUEBIRD LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MIDLAND BLUEBIRD LIMITED (CONTINUED)
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 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.
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 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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
As described in the Basis for Qualified Opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £419,256 held at 29 December 2024 or the inventory quantities of £559,554 held at 31 December 2023. We have concluded that where other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason. In addition where the other information refers to prior period balance sheet items, it may be impacted by the opening balance matters described above.
As described in the Basis for Qualified Opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £419,256 held at 29 December 2024 or the inventory quantities of £559,554 held at 31 December 2023. We have concluded that where other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason. In addition where the other information refers to prior period balance sheet items, it may be impacted by the opening balance matters described above.
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MIDLAND BLUEBIRD LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MIDLAND BLUEBIRD LIMITED (CONTINUED)
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit we have not identified material misstatements in the strategic report or the directors’ report.
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MIDLAND BLUEBIRD LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MIDLAND BLUEBIRD LIMITED (CONTINUED)
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 Auditors' 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and knowledge of the Company to identify or recognise non-compliance with applicable laws and regulations;
∙we identified the laws and regulations applicable to the company through discussions with directors and other management and review of appropriate industry knowledge. Key laws and regulations we identified during the audit were the UK Companies Act 2006 and tax legislation, UK employment legislation, UK health and safety legislation and public service operator licensing regulations;
∙we assessed the extent of compliance with the laws and regulations identified above by making enquiries of management; and
∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
∙performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships;
∙tested journal entries recorded on the Company’s finance system to identify unusual transactions that may indicate override of controls;
∙reviewed key judgements and estimates for any evidence of management bias; and
∙reviewed the application of accounting policies with focus on those with heightened estimation uncertainty.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
∙agreeing financial statement disclosures to underlying supporting documentation; and
∙enquiring of management to identify actual and potential litigation and claims.
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MIDLAND BLUEBIRD LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MIDLAND BLUEBIRD LIMITED (CONTINUED)
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants & Statutory Auditors
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MIDLAND BLUEBIRD LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 29 DECEMBER 2024
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MIDLAND BLUEBIRD LIMITED
REGISTERED NUMBER: SC016923
STATEMENT OF FINANCIAL POSITION
AS AT 29 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 29 form part of these financial statements.
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MIDLAND BLUEBIRD LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 29 DECEMBER 2024
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MIDLAND BLUEBIRD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2024
Midland Bluebird Limited is a private company, limited by shares, registered in Scotland. The Company's registration number is SC016923 and its registered office address is Carmuirs House, 300 Stirling Road, Larbert, Stirlingshire, FK5 3NJ.
The principal activity of the Company in the period under review was that of a bus service operator.
These financial statements have been prepared in pounds sterling, rounded to the nearest pound, as this is the currency of the primary economic environment in which the Company operates.
The principal activity of the Company in the period under review was that of a bus service operator.
These financial statements have been prepared in pounds sterling, rounded to the nearest pound, as this is the currency of the primary economic environment in which the Company operates.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of McGill's Bus Service Limited as at 29 December 2024 and these financial statements may be obtained from Companies House.
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MIDLAND BLUEBIRD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2024
2.Accounting policies (continued)
At the time of approving the financial statements, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The information used to make this assessment is the preparation of forecasts to at least twelve months from the date of the financial statements approval. These showed that the Company has a sufficient cash position for the foreseeable future and has sufficient funding facilities available.
On this basis, the Directors are confident that the company will continue to meet its liabilities as they fall due for at least twelve months from the date of approval of the financial statements and the Company will continue as a going concern for at least this twelve month period.
The information used to make this assessment is the preparation of forecasts to at least twelve months from the date of the financial statements approval. These showed that the Company has a sufficient cash position for the foreseeable future and has sufficient funding facilities available.
On this basis, the Directors are confident that the company will continue to meet its liabilities as they fall due for at least twelve months from the date of approval of the financial statements and the Company will continue as a going concern for at least this twelve month period.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Bus rental income is recognised arising from an intercompany arrangement whereby buses are rented out to other companies within the group. This income is recognised in line with the related depreciation of the vehicle, as this represents the value in use of the vehicle in the rental period.
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MIDLAND BLUEBIRD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2024
2.Accounting policies (continued)
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MIDLAND BLUEBIRD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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MIDLAND BLUEBIRD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Insurance provisions are recognised when the Company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. The Company's policy is to self-insure low value claims. Major claims are covered through third party insurance policies.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The
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MIDLAND BLUEBIRD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2024
2.Accounting policies (continued)
impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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MIDLAND BLUEBIRD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2024
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 if the revision affects both current and future periods.
Measurement of provision for accident claims
The estimation of the self-insurance provision is based on an assessment of the expected settlement on known claims. The Company makes assumptions concerning these judgemental matters based on it's own and it's third party claims team's past experience of similar incidents as well as the advice of it's lawyers and insurers.
Due to the uncertain nature of insurance claims, any provision made may be excessive or insufficient to cover the final settled value. However, analysis of settlement history for the year suggests that the total of finalised settlement claims is broadly similar to the total value of claims submitted.
The Directors have recognised as a liability in the accounts the undiscounted financial impact of the expected resolution of any outstanding claims on the basis of all information currently available. The directors do not consider the impact of discounting to be material.
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MIDLAND BLUEBIRD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2024
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MIDLAND BLUEBIRD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2024
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MIDLAND BLUEBIRD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2024
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MIDLAND BLUEBIRD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2024
9.Taxation (continued)
There were no factors that may affect future tax charges.
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MIDLAND BLUEBIRD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2024
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MIDLAND BLUEBIRD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2024
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MIDLAND BLUEBIRD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2024
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Page 27
MIDLAND BLUEBIRD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2024
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £248,924 (31 December 2023: £230,151). Contributions totalling £Nil (31 December 2023: £Nil) were payable to the fund at the balance sheet date and are included in creditors.
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MIDLAND BLUEBIRD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 DECEMBER 2024
The Company's immediate parent is McGill's Scotland East Limited . McGill's Scotland East Limited is a wholly owned subsidiary of McGill's Bus Service Limited, a company registered in Scotland, which is the smallest and largest group of companies for which group financial statements are prepared. McGill's Bus Service Limited's registered office and principal place of business is 99 Earnhill Road, Larkfield Industrial Estate, Greenock, Renfrewshire, PA16 0EQ.
Copies of the financial statements of McGill's Bus Service Limited are available to the public from Companies House, Crown Way, Cardiff, CF14 3UZ.
McGill's Bus Service Limited is a wholly owned subsidiary of Arranglen Limited and Arranglen Limited is a wholly owned subsidiary ofDalglen (No. 1812) Limited .
Dalglen (No. 1812) Limited is a private company and it does not have an ultimate controlling party.
Copies of the financial statements of McGill's Bus Service Limited are available to the public from Companies House, Crown Way, Cardiff, CF14 3UZ.
McGill's Bus Service Limited is a wholly owned subsidiary of Arranglen Limited and Arranglen Limited is a wholly owned subsidiary of
Dalglen (No. 1812) Limited is a private company and it does not have an ultimate controlling party.
Page 29