MATERIALS CONSULTANCY SERVICES LIMITED


Directors	BALFOUR, Alan
	MCCRACKEN, Louise
	MCCRACKEN, Stewart Alexander


Company Secretary	MCCRACKEN, Sheila


Registered Address	Centre House
	Midlothian Innovation Centre
	Roslin
	EH25 9RE


Registered Number	SC198842 (Scotland)

Notes to the Financial Statements
for the year ended 31 July 2025

1.	Accounting policies

	Statutory information
	Materials Consultancy Services Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in Scotland. The address of the Company’s registered office is Central House, Midlothian Innovation Centre, Roslin, EH25 9RE, Scotland, United Kingdom.

	Statement of compliance
	The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of the Financial Reporting Standard 102 (FRS 102) ‘the Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies’ regime.

Statement of compliance

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of the Financial Reporting Standard 102 (FRS 102) ‘the Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies’ regime.

	Functional and presentation currency
	The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £. Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date.

Functional and presentation currency

The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date.

	Turnover policy
	Turnover is recognised at the fair value of the consideration received or receivable for consultancy services using materials science provided in the normal course of business, and is shown net of VAT and other sales related taxes.

	Revenue from sale of goods
	Revenue from contracts for the provision of professional services 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 probably will be recovered.

Revenue from sale of goods

Revenue from contracts for the provision of professional services 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 probably will be recovered.

	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. The company operates a defined contribution scheme. The amount charged to the Statement of Income and Retained Earnings in respect of pension costs and other post-retirement benefits is the contribution payable in the financial year. Differences between contribution payable in the financial year and contribution actually paid are included as either accruals or prepayments in the Balance Sheet.

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.

The company operates a defined contribution scheme. The amount charged to the Statement of Income and Retained Earnings in respect of pension costs and other post-retirement benefits is the contribution payable in the financial year. Differences between contribution payable in the financial year and contribution actually paid are included as either accruals or prepayments in the Balance Sheet.

	Foreign currency translation
	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

Foreign currency translation

Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

	Current taxation
	Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

	Deferred tax
	Deferred tax arises as a result of including terms of income and expenditure in taxation computations in periods different form those in which they are included in the Company’s financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted. 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 profits.

Deferred tax

Deferred tax arises as a result of including terms of income and expenditure in taxation computations in periods different form those in which they are included in the Company’s financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

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 profits.

	Tangible fixed assets and depreciation
	Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life. 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 credited or charged to profit and loss. At each reporting period end date, the company review the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows: Fixtures and Fittings - reducing balance 15% Plant and Machinery - straight line 0-15% Motor Vehicles - straight line 25%

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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

Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Fixtures and Fittings - reducing balance 15%
Plant and Machinery - straight line 0-15%
Motor Vehicles          - straight line 25%

	Finance leases and hire purchase contracts
	Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments are determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Statement of Income and Retained Earnings over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Finance leases and hire purchase contracts

Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments are determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Statement of Income and Retained Earnings over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

	Stocks and work in progress
	Stock is valued at the lower of cost and estimated selling price less costs to complete and sell. The cost methodology employed by the entity is the first-in first-out method. Estimated selling price less costs to complete and sell are derived from the selling price which the goods would fetch in an open market transaction with established customers less the costs expected to be incurred to enable the sale to complete. Provision is made for slow-moving and obsolete items of stock. Such provisions are recognised in profit or loss. Work in progress is valued using the percentage of completion method and values are calculated using the lower of cost and estimated selling price less costs to complete and sell. When stocks are sold, the carrying amount of those stocks is recognised as an expense within cost of sales. This takes place in the same period that the associated revenue is recognised.

Stocks and work in progress

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell. The cost methodology employed by the entity is the first-in first-out method. Estimated selling price less costs to complete and sell are derived from the selling price which the goods would fetch in an open market transaction with established customers less the costs expected to be incurred to enable the sale to complete. Provision is made for slow-moving and obsolete items of stock. Such provisions are recognised in profit or loss.

Work in progress is valued using the percentage of completion method and values are calculated using the lower of cost and estimated selling price less costs to complete and sell. When stocks are sold, the carrying amount of those stocks is recognised as an expense within cost of sales. This takes place in the same period that the associated revenue is recognised.

	Financial instruments
	Financial assets and financials liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. 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 deducting its liabilities. Financials assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Basic financial assets, which include debtors and cash and bank balance, are measured at transaction price including transaction costs. Basic financials 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 form suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

Financial instruments

Financial assets and financials liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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 deducting its liabilities.

Financials assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. 

Basic financial assets, which include debtors and cash and bank balance, are measured at transaction price including transaction costs.

Basic financials 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 form suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less.

Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

	Government grants or assistance
	Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received. A grant that specifies performance conditions is recognised in income only when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the grant proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Government grants or assistance

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received.

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

2.	Average number of employees


		2025		2024
	Average number of employees during the year	10		11

3.	Tangible fixed assets

	Plant & machinery	Vehicles	Fixtures & fittings	Total
	£	£	£	£
Cost or valuation
At 01 August 24	1,272,993	54,607	113,866	1,441,466
Additions	3,512	-	2,081	5,593
At 31 July 25	1,276,505	54,607	115,947	1,447,059
Depreciation and impairment
At 01 August 24	926,748	4,550	57,056	988,354
Charge for year	12,000	13,651	-	25,651
At 31 July 25	938,748	18,201	57,056	1,014,005
Net book value
At 31 July 25	337,757	36,406	58,891	433,054
At 31 July 24	346,245	50,057	56,810	453,112

4.	Stocks

	2025	2024
	£	£
Work in progress	-	25,000
Total	-	25,000

5.	Debtors: amounts due within one year

	2025	2024
	£	£
Trade debtors / trade receivables	267,608	63,253
Other debtors	244	75,716
Prepayments and accrued income	2,983	225
Total	270,835	139,194

6.	Creditors: amounts due within one year

	2025	2024
	£	£
Trade creditors / trade payables	154,781	23,830
Bank borrowings and overdrafts	-	10,958
Amounts owed to related parties	41,278	17,393
Taxation and social security	84,485	4,560
Finance lease and HP contracts	11,000	11,000
Other creditors	5,365	3,510
Accrued liabilities and deferred income	2,998	2,999
Total	299,907	74,250

7.	Creditors: amounts due after one year

	2025	2024
	£	£
Other creditors	10,000	22,000
Total	10,000	22,000

8.	Obligations under finance leases

		2025		2024
		£		£
	Finance lease and HP contracts	21,000		33,000

9.	Provisions for liabilities

	2025	2024
	£	£
Net deferred tax liability (asset)	89,864	-
Total	89,864	-

10.	Related party transactions
	At the reporting end date the balance owing to directors was £41,278 (2024 - £17,393). The movement in the year comprises repayments of £82,479 offset against drawdowns of £106,363.

	Notes	2025		2024
		£	£	£	£
Fixed assets
Tangible assets	3		433,054		453,112
			433,054		453,112
Current assets
Stocks	4	-		25,000
Debtors	5	270,835		139,194
Cash at bank and on hand		952,531		721,347
		1,223,366		885,541
Creditors amounts falling due within one year	6	(299,907)		(74,250)
Net current assets (liabilities)			923,459		811,291
Total assets less current liabilities			1,356,513		1,264,403
Creditors amounts falling due after one year	7		(10,000)		(22,000)
Provisions for liabilities	9		(89,864)		-
Net assets			1,256,649		1,242,403
Capital and reserves
Called up share capital			100		100
Profit and loss account			1,256,549		1,242,303
Shareholders' funds			1,256,649		1,242,403