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Registered number: SC570476 DALGLEN (NO. 1812) LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
DALGLEN (NO. 1812) LIMITED COMPANY INFORMATION
Director | J Easdale
Registered number | SC570476
Registered office | 99 Earnhill Road
| Larkfield Industrial Estate
| Greenock
| PA16 0EQ
Independent auditors | Armstrong Watson Audit Limited
| Chartered Accountants & Statutory Auditors
| 89 Seaward Street
| Glasgow
| G41 1HJ
DALGLEN (NO. 1812) LIMITED CONTENTS
| Page
Group Strategic Report | 1 - 3
Director's Report | 4 - 6
Independent Auditors' Report | 7 - 13
Consolidated Statement of Comprehensive Income | 14
Consolidated Balance Sheet | 15
Company Balance Sheet | 16
Consolidated Statement of Changes in Equity | 17 - 18
Company Statement of Changes in Equity | 19
Consolidated Statement of Cash Flows | 20
Consolidated Analysis of Net Debt | 21
Notes to the Financial Statements | 22 - 45
DALGLEN (NO. 1812) LIMITED GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
Introduction
The Director presents the Strategic Report for the year ended 31 December 2024. This company acts as parent company to McGill's Bus Group which is one of Britain's largest independently owned bus groups and a pioneer in fleet decarbonisation with almost 30% of our fleet zero emission EVs.
Business review
Turnover has increased by 13% from £92.9m to £105m for the group. Operating profit reduced slightly from £6.4m to £5.1m for the group.
Principal risks and uncertainties
There are several potential risks and uncertainties that could have an impact on the group's long-term performance. The director has established an ongoing process for identifying, evaluating and managing the significant risks and uncertainties faced by the group and continue to assess these on a regular basis in the light of internal and external events. Specific business risks faced by the group include the following: Competition risk The group 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' actions and strategies to ensure that the group acts appropriately under current market conditions. Legal and regulatory risk The director is aware of the continual change in laws and other regulations and the increasing costs of compliance. The director conducts 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 group 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 group's cost base. Fuel prices are directly influenced by international, political and economic circumstances as well as natural disasters. Wherever possible, the group seek to minimise the operational and financial impact of such events. Where appropriate, this may be through fixed price forward contracts or through operational efficiency measures. Labour cost and employee relations and retention risk Labour costs represent the most significant element of the group's operating costs. The director continues to monitor employee recruitment, training, personal development and remuneration to ensure the group attracts and retains the right people in the right numbers. To retain the right people, the group believes that good communication with employees is affected through regular briefing, personal contact with senior management and using a company intranet and mobile phone application. Rapid communication and feedback are of fundamental value in employee relations and in a well-functioning operation. Page 1
DALGLEN (NO. 1812) LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Environmental risk (including climate change) The group 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 group's impact on the environment include safe disposal of waste, recycling and reducing energy consumption. Through our core business activities, we are committed to providing 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 in moving towards more sustainable travel. We recognise the environmental impacts arising from our business activities and are committed to reducing these through substantial investment in zero emission electric buses and in the care, maintenance and efficient running of the non-electric part of our bus fleet. 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 group can modify services to react to market changes and to focus on controlling costs to ensure that it remains competitive.
Financial key performance indicators
The key performance indicators for the group are turnover, operating profit and net assets. The company's director believes that further key performance indicators for the company are not necessary or appropriate for an understanding of the development, performance or position of the business. Key performance indicators 2024 2023 £m £m Turnover 105.0 92.9 Operating profit 5.1 6.4 Net assets 18.4 17.6 Page 2
DALGLEN (NO. 1812) LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Director's statement of compliance with duty to promote the success of the Group
The director acknowledges and understands their duties and responsibilities, including that of section 172, of the Companies Act 2006. A director of a company must act in the way he or she considers, in good faith, would be most likely to promote the success of the group for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to: - the likely consequences of any decision in the long term; - the interest of the group's employees; - the need to foster the group's business relationships with suppliers, customers and others; - the impact of the group's operations on the local community and the environment; - the desirability of the group maintaining a reputation for high standards of business conduct; and - the need to act fairly as members of the group. The board recognises that the long term success of the group is dependent on the way we interact with a large number of stakeholders including our colleagues, customers and shareholders. The director has had regard to the interest of our stakeholders while complying with their obligations to promote the ongoing success of the group in line with the section 172 of the Companies Act. Ahead of all board meetings the director is supplied with board papers that highlight relevant stakeholder considerations along with performance metrics. The board's decision making considers both risk and reward in the pursuit of delivering long term value to our stakeholders and acknowledging and understanding the current and potential risks to the business, both financial and non-financial, are fundamental to how we manage the group. The director, both individually and collectively along with the management board, consider the decisions taken during the period ended 31 December 2024 were in conformance of their duty under section 172 of the Companies Act. This report was approved by the board and signed on its behalf.
J Easdale Director
Date: 24 June 2026
Page 3
DALGLEN (NO. 1812) LIMITED DIRECTOR'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The Director presents his report and the financial statements for the year ended 31 December 2024.
Director's responsibilities statement
The Director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations. Company law requires the Director to prepare financial statements for each financial year. Under that law the Director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the Director is required to: ∙select suitable accounting policies for the Group's financial statements and then apply them consistently; ∙make judgements and accounting estimates that are reasonable and prudent; ∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business. The Director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Results and dividends
The profit for the year, after taxation, amounted to £859,077 (2023 - £3,804,862). No dividends were declared or paid during the year (2023: £Nil).
Director
The Director who served during the year was:
J Easdale
Future developments
The trading environment for the next twelve months is positive as passenger demand is expected to grow and the business continues to invest in electric vehicles and infrastructure. The Director will review all aspects of performance on a continuous basis and tailor the group's activity to balance achievable revenue levels with available Government support while giving due consideration to all stakeholder groups.
Engagement with employees
To retain the right people, the group believes that good communication with employees is essential and affected through regular briefing, personal contact with senior management and through the use of a company intranet and mobile phone application. Rapid communication and feedback are of fundamental value in employee relations and in a well-functioning operation. Page 4
DALGLEN (NO. 1812) LIMITED DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Disabled employees
The group gives full and fair consideration to applications made for employment by disabled persons, has continued wherever possible the employment of persons who have become disabled whilst employed by the company and has ensured continued training and opportunities for promotion of disabled persons employed by it.
Greenhouse gas emissions, energy consumption and energy efficiency action
The group's greenhouse gas emissions and energy consumption for the period ended 31 December 2024 are as follows: Annual Scope 1 (direct emissions from combustion of fuels in vehicles and equipment owned/operated by the organisation) and Scope 2 GHG emissions (indirect emissions from the generation of electricity produced externally but consumed on-site) for the reporting period are estimated to be 27,688 tonnes CO2e (Carbon Dioxide equivalent) (31 December 2023: 26,916 tonnes CO2e). The aggregate of the annual quantity of energy consumed from activities for which the group is responsible involving the combustion of fuel for the purposes of transport and the purchase of electricity for its own use is 117,860,708 kWh (31 December 2023: 115,779,687 kWh). The footprint is calculated in accordance with the standards and principles of international standard EN ISO 14064 parts 1 & 2: 2019. Activity data has been converted into carbon emissions using published emissions factors. The assessment uses the 'operational control' consolidation approach on the basis that the organisation has the authority to direct operating policies of each entity defined below, and that regulatory compliance ordinarily falls to the responsibility of the operator. The organisational boundary extends to the entire operations of the Group. Intensity ratios have been calculated from the value of turnover and include all the energy usage and emissions stated within the values reported above and in accordance with the methodology applied. The intensity ratio for the group has reduced to 0.26 kgCO2e/£ (31 December 2023: 0.29 kgCO2/£). The most significant area of focus, providing material reductions, continues to be the ongoing electrification of our fleet. Page 5
DALGLEN (NO. 1812) LIMITED DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Disclosure of information to auditors
The Director at the time when this Director's Report is approved has confirmed that: ∙so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and ∙he has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.
Auditors
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.
J Easdale Director
Date: 24 June 2026
Page 6
DALGLEN (NO. 1812) LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DALGLEN (NO. 1812) LIMITED
Qualified Opinion
We have audited the financial statements of Dalglen (No.1812) Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the period ended 31 December 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of changes in equity, the Company statement of changes in equity, the Consolidated statement of cash flows, the Consolidated analysis of net debt 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: •give a true and fair view of the state of the Group's affairs as at 31 December 2024 and of the Group's profit 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.
Basis for qualified opinion
Dalglen (No.1812) Limited In the prior period ended 31 December 2023, the Company did not prepare consolidated financial statements despite having subsidiaries that it controls. This is required by section 399 of the Companies Act 2006 and FRS 102. As no consolidated financial statements were prepared or publicly available, the exemption from preparing consolidated financial statements was not applicable. Accordingly, an adverse opinion was issued on the 31 December 2023 financial statements, as we were unable to determine whether adjustments would have been necessary to the reported financial position and performance. In the current year ended 31 December 2024, management has prepared consolidated financial statements including both the current year and comparative figures. However, while the current year 31 December 2024 financial statements are not subject to any qualifications the prior year 31 December 2023 comparatives as detailed below are subject to qualifications. These prior period qualifications affect the comparability of the 31 December 2024 current year financial statements with the corresponding prior period 31 December 2023 figures. Arranglen Limited The prior year financial statements for the year ended 31 December 2023 were subject to a disclaimer of opinion because we were unable to obtain sufficient appropriate audit evidence in respect of turnover of £1,620,908. In addition, the 31 December 2022 financial statements were also subject to a disclaimer of opinion as we were unable to obtain sufficient appropriate audit evidence regarding amounts recognised as turnover of £225,936, amounts recognised as other debtors of £2,351,835 and amounts recognised as other creditors of £2,397,517 within the financial statements due to an inability to obtain sufficient supporting evidence to verify the valuation and existence of these balances. We were able to obtain sufficient assurance in the prior year 31 December 2023 audit in regard to the 31 December 2022 amounts recognised as other debtors of £2,351,835 and amounts recognised as other creditors of £2,397,517. Based on the audit procedures performed in the 31 December 2023 audit we are satisfied that the 31 December 2022 limitations relating to these balances did not give rise to a material misstatement in the prior year 31 December 2023 financial statements. However, sufficient appropriate audit evidence in respect of turnover in both the 31 December 2022 year end and the prior year 31 December 2023 year end have not been obtained and these matters remain unresolved. Page 7
DALGLEN (NO. 1812) LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DALGLEN (NO. 1812) LIMITED (CONTINUED) Accordingly, we were unable to determine whether adjustments to the prior year opening retained earnings at 1 January 2023 and current year 1 January 2024 opening retained earnings might have been necessary. Our opinion on the current 31 December 2024 years’ financial statements is therefore modified due to the possible effect of these unresolved matters on the comparability of the current year’s figures and the corresponding 31 December 2023 figures. Arranglen Limited results are included within the Dalglen (No.1812) Limited consolidated financial statements and therefore these unresolved matters contribute to the overall group qualification. McGill’s Bus Service Group The subgroup McGill’s Bus Service Limited and its subsidiaries ( “McGill’s Bus Group”), directly owned by Arranglen Limited and ultimately included within Dalglen (No.1812) Limited consolidated financial statements also contains rolled forward qualifications which impact these financial statements. Following acquisitions of two subsidiaries in September 2022, management were unable to access books and records for part of the period ended 1 January 2023. As a result, we were unable to obtain sufficient appropriate audit evidence over the results and opening balances, leading to a disclaimer of opinion on those financial statements. Due to the pervasive nature of these limitations and their impact on comparability, the 31 December 2023 consolidated financial statements of McGill’s Bus Group were subject to an adverse opinion. The current year McGill’s Bus Group 29 December 2024 opinion remains modified due to the rolled forward impact of these matters on the comparability of current and prior period results. Furthermore, we were not appointed as auditor of the McGill’s Bus Group until after 31 December 2023 and did not observe the physical inventory count at that date. We were unable to obtain sufficient appropriate audit evidence regarding the inventory balances held at 31 December 2023, and could not determine whether any adjustments were necessary to those balances or to cost of sales for the period ended 29 December 2024. We did not identify any material issues with the inventory quantities held at 31 December 2024, which are included in the group balance sheet at £1,091,777 which at a group level is immaterial. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2023, which were included in the group balance sheet at £1,243,927, by using other audit procedures. Consequently, we could not determine whether any adjustment to that amount was necessary or whether there was any consequential effect on the cost of sales for the year ended 31 December 2024. While the current year figures are not misstated, the effects of the prior year qualifications remain and impact the comparability of the current year’s profit and loss account with the corresponding figures While this matter does not affect the current period closing balances, it impacts the comparability of the current period with the corresponding prior period. As this subgroup is consolidated into Dalglen (No.1812) Limited, these matters roll up into both the prior year and current year group financial statements. Overall conclusion As a result of the matters described above: The consolidated Dalglen (No.1812) Limited 31 December 2023 prior period financial statements were subject to a number of pervasive limitations and departures from the financial reporting framework. •the failure to prepare consolidated financial statements at the parent company level, •unresolved limitations within the subsidiary Arranglen Limited in respect of revenue and opening reserves, •an adverse opinion within the McGill’s Bus Group (sub group) 31 December 2023 financial statements due to the rolled forward impact of opening balance issues from the period ended 1 January 2023 subsidiary acquisitions for which we were unable to determine the possible material impact on the 31 December 2023 financial statements as a result of any possible correction to these opening balance issues. Page 8
DALGLEN (NO. 1812) LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DALGLEN (NO. 1812) LIMITED (CONTINUED) •limitations arising from the inability to obtain sufficient appropriate audit evidence regarding the inventory balances held at 31 December 2023. These matters affect the comparability of the 31 December 2024 current year financial statements with the corresponding prior period 31 December 2023 figures. Accordingly, our opinion on the current year financial statements is qualified solely in respect of the possible effects of these matters on the comparability of the current and prior period financial information. Were any adjustment necessary to the 31 December 2022 or 31 December 2023 turnover, opening reserves or the inventory balance to be required the strategic report and directors report in respect of the prior period figures 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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Director with respect to going concern are described in the relevant sections of this report. Page 9
DALGLEN (NO. 1812) LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DALGLEN (NO. 1812) LIMITED (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is 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, due to the effects of the inability to access books and records in the period ended 1 January 2023, unresolved limitations within the subsidiary Arranglen Limited 31 December 2022 and 31 December 2023 financial statements in respect of revenue and opening reserves, the lack of assurance obtained as a result of these matters represented a pervasive risk and therefore on this basis the Dalglen (No.1812) Limited 31 December 2023 group financial statements did not give a true and fair view. The effect of the above points on the prior period’s results could not be determined. We have concluded that the other information may be materially misstated for the same reasons where it refers to the prior period. Additionally, as described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the prior period inventory quantities of £1,243,927. We have concluded that where the other information refers to the prior period inventory balance or related balances such as cost of sales for the current or prior period, it may be materially misstated for the same reason.
Opinion on other matters prescribed by the Companies Act 2006
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 Group strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and ∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements. Page 10
DALGLEN (NO. 1812) LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DALGLEN (NO. 1812) LIMITED (CONTINUED)
Matters on which we are required to report by exception
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 director's report. Arising solely from the limitation on the scope of our work relating to inventory and the possible effect of the aforementioned matters on the comparability of the prior period’s figures referred to in the basis for qualified opinion above; ∙we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and ∙we were unable to determine whether adequate accounting records have been kept. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙returns adequate for our audit have not been received from branches not visited by us; or ∙the financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of directors’ remuneration specified by law are not made;
Responsibilities of directors
As explained more fully in the Directors' responsibilities statement set out on page 4, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so. Page 11
DALGLEN (NO. 1812) LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DALGLEN (NO. 1812) LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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: 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 and UK health and safety legislation; • 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. Page 12
DALGLEN (NO. 1812) LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DALGLEN (NO. 1812) 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.
Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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. Martin Johnston (Senior Statutory Auditor) for and on behalf of Armstrong Watson Audit Limited Chartered Accountants & Statutory Auditors Glasgow 24 June 2026 Page 13
DALGLEN (NO. 1812) LIMITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024
| 2024 | 2023
Note | £ | £
Turnover | 4 | 104,982,324 | 92,861,112
Cost of sales |  | (77,206,589) | (68,348,766)
Gross profit |  | 27,775,735 | 24,512,346
Administrative expenses |  | (29,788,631) | (26,649,646)
Other operating income | 5 | 7,113,506 | 8,575,440
Operating profit |  | 5,100,610 | 6,438,140
Interest receivable and similar income | 10 | 281,563 | 99,773
Interest payable and similar expenses | 11 | (2,710,645) | (2,768,555)
Profit before tax |  | 2,671,528 | 3,769,358
Tax on profit | 12 | (1,812,451) | 35,504
Profit for the financial year |  | 859,077 | 3,804,862
Profit for the year attributable to: |  |  |
Owners of the parent company |  | 859,077 | 3,804,862
|  | 859,077 | 3,804,862
There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.
There was no other comprehensive income for 2024 (2023:£NIL).
The notes on pages 22 to 45 form part of these financial statements.
Page 14
DALGLEN (NO. 1812) LIMITED REGISTERED NUMBER: SC570476 CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 13 |  | 972,622 |  | 1,160,096
Tangible assets | 14 |  | 66,350,255 |  | 69,738,392
Investments | 15 |  | 1,129,979 |  | 538,979
|  |  | 68,452,856 |  | 71,437,467
Current assets |  |  |  |  |
Stocks | 16 | 1,091,777 |  | 1,243,927 |
Debtors: amounts falling due within one year | 17 | 27,224,988 |  | 19,141,736 |
Cash at bank and in hand | 18 | 9,385,271 |  | 15,754,775 |
|  | 37,702,036 |  | 36,140,438 |
Creditors: amounts falling due within one year | 19 | (31,825,686) |  | (32,213,893) |
Net current assets |  |  | 5,876,350 |  | 3,926,545
Total assets less current liabilities |  |  | 74,329,206 |  | 75,364,012
Creditors: amounts falling due after more than one year | 20 |  | (52,050,851) |  | (55,781,372)
Provisions for liabilities |  |  |  |  |
Deferred tax | 23 | (1,895,388) |  | (1,204,853) |
Other provisions | 24 | (1,961,151) |  | (815,048) |
|  |  | (3,856,539) |  | (2,019,901)
Net assets |  |  | 18,421,816 |  | 17,562,739
Capital and reserves |  |  |  |  |
Called up share capital | 25 |  | 300 |  | 300
Merger reserve | 26 |  | 616,163 |  | 616,163
Profit and loss account | 26 |  | 17,805,353 |  | 16,946,276
|  |  | 18,421,816 |  | 17,562,739
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
J Easdale
Director
Date: 24 June 2026
The notes on pages 22 to 45 form part of these financial statements. Page 15
DALGLEN (NO. 1812) LIMITED REGISTERED NUMBER: SC570476 COMPANY BALANCE SHEET AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Fixed Asset Investments | 15 |  | 798 |  | 798
|  |  | 798 |  | 798
Current assets |  |  |  |  |
Cash at bank and in hand | 18 | 2 |  | 2 |
|  | 2 |  | 2 |
Creditors: amounts falling due within one year | 19 | (23,163) |  | (8,000) |
Net current liabilities |  |  | (23,161) |  | (7,998)
Total assets less current liabilities |  |  | (22,363) |  | (7,200)
Net liabilities |  |  | (22,363) |  | (7,200)
Capital and reserves |  |  |  |  |
Called up share capital | 25 |  | 300 |  | 300
Profit and loss account brought forward |  | (7,500) |  | (4,500) |
Loss for the year |  | (15,163) |  | (3,000) |
Profit and loss account carried forward |  |  | (22,663) |  | (7,500)
|  |  | (22,363) |  | (7,200)
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
J Easdale
Director
Date: 24 June 2026
The notes on pages 22 to 45 form part of these financial statements. Page 16
DALGLEN (NO. 1812) LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
| Called up share capital | Merger reserve | Profit and loss account | Equity attributable to owners of parent Company | Total equity
| £ | £ | £ | £ | £
At 1 January 2024 (as previously stated) | 300 | 616,163 | 14,746,276 | 15,362,739 | 15,362,739
Prior year adjustment - correction of error | - | - | 2,200,000 | 2,200,000 | 2,200,000
At 1 January 2024 (as restated) | 300 | 616,163 | 16,946,276 | 17,562,739 | 17,562,739
Comprehensive (loss)/income for the year |  |  |  |  |
Profit for the year | - | - | 859,077 | 859,077 | 859,077
Other comprehensive income for the year | - | - | - | - | -
Total comprehensive income for the year | - | - | 859,077 | 859,077 | 859,077
Total transactions with owners | - | - | - | - | -
At 31 December 2024 | 300 | 616,163 | 17,805,353 | 18,421,816 | 18,421,816
| The notes on pages 22 to 45 form part of these financial statements.
Page 17
DALGLEN (NO. 1812) LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2023
| Called up share capital | Merger reserve | Profit and loss account | Equity attributable to owners of parent Company | Total equity
| £ | £ | £ | £ | £
At 1 January 2023 (as previously stated) | 300 | 616,163 | 13,402,466 | 14,018,929 | 14,018,929
Prior year adjustment - correction of error | - | - | (261,052) | (261,052) | (261,052)
At 1 January 2023 (as restated) | 300 | 616,163 | 13,141,414 | 13,757,877 | 13,757,877
Comprehensive income for the year |  |  |  |  |
Profit for the year | - | - | 3,804,862 | 3,804,862 | 3,804,862
Other comprehensive income for the year | - | - | - | - | -
Total comprehensive income for the year | - | - | 3,804,862 | 3,804,862 | 3,804,862
Total transactions with owners | - | - | - | - | -
At 31 December 2023 | 300 | 616,163 | 16,946,276 | 17,562,739 | 17,562,739
| The notes on pages 22 to 45 form part of these financial statements.
Page 18
DALGLEN (NO. 1812) LIMITED COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 January 2023 | 300 | (4,500) | (4,200)
Comprehensive income for the year |  |  |
Loss for the year | - | (3,000) | (3,000)
Other comprehensive income for the year | - | - | -
Total comprehensive income for the year | - | (3,000) | (3,000)
Total transactions with owners | - | - | -
At 1 January 2024 | 300 | (7,500) | (7,200)
Comprehensive income for the year |  |  |
Loss for the year | - | (15,163) | (15,163)
Other comprehensive income for the year | - | - | -
Total comprehensive income for the year | - | (15,163) | (15,163)
Total transactions with owners | - | - | -
At 31 December 2024 | 300 | (22,663) | (22,363)
| The notes on pages 22 to 45 form part of these financial statements.
Page 19
DALGLEN (NO. 1812) LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
|  |  | 2024 | 2023
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 2,671,528 | 3,769,358
Adjustments for: |  |
Amortisation of intangible assets | 187,474 | 187,447
Depreciation of tangible assets | 9,021,091 | 9,544,170
Impairments of fixed assets | - | 292,000
(Profit)/Loss on disposal of tangible fixed assets | (90,344) | (382,875)
Interest paid | 2,710,645 | 2,768,553
Interest received | (281,563) | (99,773)
Decrease in stocks | 152,150 | 189,771
(Increase) in debtors | (8,674,199) | (921,457)
(Decrease)/increase in creditors | (3,510,923) | 551,082
Increase/(decrease) in provisions | 1,146,103 | (70,736)
Corporation tax charge | (1,812,451) | 517,844
Corporation tax paid | (218,734) | (313,849)
Net cash generated from operating activities | 1,300,777 | 16,031,535
Purchase of intangible fixed assets | - | (19,412)
Purchase of tangible fixed assets | (894,205) | (9,389,576)
Sale of tangible fixed assets | 1,931,383 | 474,581
Interest received | 281,563 | 99,773
HP interest paid | (2,647,748) | (2,556,140)
Government grants received | - | 1,284,557
Purchase fixed assets investments | - | (429,497)
Net cash from investing activities | (1,329,007) | (10,535,714)
Repayment of loans | (100,000) | (2,500,000)
Repayment of/new finance leases | (6,178,377) | (4,392,351)
Interest paid | (62,897) | (212,413)
Net cash used in financing activities | (6,341,274) | (7,104,764)
Cash and cash equivalents at beginning of year | 15,754,775 | 17,363,718
Cash and cash equivalents at the end of year | 9,385,271 | 15,754,775
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 9,385,271 | 15,754,775
The notes on pages 22 to 45 form part of these financial statements.
Page 20
DALGLEN (NO. 1812) LIMITED CONSOLIDATED ANALYSIS OF NET DEBT FOR THE YEAR ENDED 31 DECEMBER 2024
|  | At 1 January 2024 | Cash flows | New finance leases | At 31 December 2024
|  | £ | £ | £ | £
Cash at bank and in hand | 15,754,775 | (6,369,504) | - | 9,385,271
Debt due after 1 year | (525,000) | 525,000 | - | -
Debt due within 1 year | (100,000) | (425,000) | - | (525,000)
Finance leases | (42,190,194) | 6,178,377 | (6,782,000) | (42,793,817)
| (27,060,419) | (91,127) | (6,782,000) | (33,933,546)
The notes on pages 22 to 45 form part of these financial statements.
Page 21
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. | General information
Dalglen (No. 1812) 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 Pound Sterling (£). 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
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 Group management to exercise judgement in applying the Group's accounting policies. The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The following principal accounting policies have been applied:
| 2.2 | Basis of consolidation
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. However, one of the subsidiary undertakings, Clayhunt Limited has been excluded from the consolidation in accordance with section 405(2) of the Companies Act 2006 as it is not material to the group’s financial position. The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. Group reconstructions have been accounted for using merger accounting where the criteria per FRS 102 Section 19.27 have been met. This permits group reconstructions to be accounted for using the merger accounting method provided: (a) the use of the merger accounting method is not prohibited by company law or other relevant legislation, (b) the ultimate equity holders remain the same, and the rights of each equity holder, relative to the others, are unchanged; and (c) no non-controlling interest in the net assets of the group is altered by the transfer. Page 22
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.3 | Going concern
At the time of approving the financial statements, the Director has a reasonable expectation that the Group and Company has adequate resources to continue in operational existence for the foreseeable future. Thus, the Director continues to adopt the going concern basis of accounting in preparing the financial statements. The information used to make this assessment is the preparation of group forecasts to at least twelve months from the date of the financial statements approval. These showed that the Group and therefore the Group and Company has sufficient access to required funding in order to continue to settle its third party liabilities as they fall due. On this basis, the Director is confident that the Group and 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 therefore the financial statements have been prepared on a going concern basis.
| 2.4 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: ∙the amount of revenue can be measured reliably; ∙it is probable that the Group will receive the consideration due under the contract; ∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and ∙the costs incurred and the costs to complete the contract can be measured reliably.
| 2.5 | Operating leases: the Group as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
| 2.6 | Leased assets: the Group as lessee
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. Page 23
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.7 | Sale and leaseback
Where a sale and leaseback transaction results in a finance lease, no gain is immediately recognised for any excess of sales proceeds over the carrying amount of the asset. Instead, the proceeds are presented as a liability and subsequently measured at amortised cost using the effective interest method. When a sale and leaseback transaction results in an operating lease, and it is clear that the transition is established at fair value any profit or loss is recognised immediately. If the sale price is below fair value, any profit or loss is recognised immediately unless the loss is compensated for by the future lease payments at below market price. In that case any such loss is amortised in proportion to the lease payments over the period for which the asset is expected to be used. If the sale price is above fair value, the excess over fair value is amortised over the period for which the asset is expected to be used.
| 2.8 | Government grants
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.
| 2.9 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.10 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.11 | Borrowing costs
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
| 2.12 | Pensions
Defined contribution pension plan The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds. Page 24
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.13 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and ∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
| 2.14 | Intangible assets
Goodwill Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life of 10 years. Other intangible assets Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. The estimated useful lives range as follows:
|  |  |  | Computer software | - | 10 | years
|  |  |  | Goodwill | - | 10 | years
Page 25
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.15 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. 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:
|  |  |  | Freehold property | - | Straight line over 50 years
|  |  |  | Plant and machinery | - | Straight line over 3 to 10 years
|  |  |  | Motor vehicles | - | Straight line over 5 to 15 years
|  |  |  | Fixtures and fittings | - | Straight line over 3 to 5 years
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.
| 2.16 | Impairment of fixed assets and goodwill
Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
| 2.17 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment.
| 2.18 | Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads. At each balance sheet date, stocks are assessed for impairment. If stock is 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. Page 26
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.19 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
| 2.20 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
| 2.21 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
| 2.22 | Holiday pay accrual
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement accrued at the balance sheet date.
| 2.23 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss.
| 2.24 | Financial instruments
The Group 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 Group's Balance sheet when the Group 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 Page 27
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.24 | Financial instruments (continued)
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 Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Other financial assets Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment. 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 impairment reversal is recognised in the profit or loss. Basic financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies 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. Page 28
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.24 | Financial instruments (continued)
Derecognition of financial instruments Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group 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 Group 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 Group's contractual obligations expire or are discharged or cancelled.
| 2.25 | Insurance provision
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 Group's policy is to self-insure low value claims. Major claims are covered through third party insurance policies.
| 2.26 | Business combinations
The Group applies the acquisition method in accounting for business combinations. The consideration transferred by the Group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the equity interests issued by the Group, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred. The Group recognises identifiable assets acquired and liabilities assumed in a business combination. Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values.
| 2.27 | Prior period adjustment
Prior year adjustments relate to the correction of material prior period errors. Such accounting adjustments reflect the change in the opening balance sheet following the adoption of the new policy. Where a prior year adjustment is required to correct a material prior period error, this is made in the first financial statements authorised for issue after that error is discovered. Page 29
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
In the application of the company's accounting policies, the director is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised 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 Group makes assumptions concerning these judgemental matters based on its own and its third party claims team's past experience of similar incidents as well as the advice of its 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 settled claims is broadly similar to the total value of claims submitted. The director has 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 director does not consider the impact of discounting to be material.
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Bus revenue | 104,980,894 | 91,400,982
| Rental income | 1,430 | 26,380
| Commission on insurance contract | - | 558,750
| Consulting income | - | 875,000
|  | 104,982,324 | 92,861,112
| All turnover arose within the United Kingdom.
Page 30
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
5. | Other operating income
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other operating income | 214,823 | 4,000
| Government grants receivable | 6,805,512 | 7,910,204
| Insurance claims receivable | 2,537 | 16,601
| Profit on disposal of tangible assets | 90,344 | 43,835
| Fees receivable | 290 | 600,800
|  | 7,113,506 | 8,575,440
6. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Depreciation - fixed assets | 9,021,091 | 9,544,170
| Goodwill amortisation | 187,474 | 187,447
| Other operating lease rentals | 409,504 | 430,602
| Auditors remuneration | 236,975 | 200,750
| Accountancy fees | 31,250 | 26,250
7. | Auditors' remuneration
| During the year, the Group obtained the following services from the Company's auditors:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fees payable to the Company's auditors and their associates for the audit of the consolidated and parent Company's financial statements | 236,975 | 200,750
| Fees payable to the Company's and their associates in respect of: |  |
| Taxation compliance services | 27,250 | 22,250
| All non-audit services not included above | 4,000 | 4,000
Page 31
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
8. | Employees
| Staff costs, including Director's remuneration, were as follows:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Wages and salaries | 49,957,710 | 45,523,969
| Social security costs | 4,757,711 | 4,336,648
| Cost of defined contribution scheme | 1,304,201 | 1,217,684
|  | 56,019,622 | 51,078,301
| The average monthly number of employees, including the Director, during the year was as follows:
|  |  | Group | Group | Company | Company
|  |  | 2024 | 2023 | 2024 | 2023
|  |  | No. | No. | No. | No.
|  | Director | 5 | 4 | 1 | 1
|  | Administration | 82 | 102 | - | -
|  | Drivers and mechanics | 1,275 | 1,273 | - | -
|  |  | 1,362 | 1,379 | 1 | 1
9. | Director's remuneration
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Director's emoluments | 221,000 | 443,382
| Group contributions to defined contribution pension scheme | 1,321 | 1,321
|  | 222,321 | 444,703
| During the year retirement benefits were accruing to 1 Director (2023 - 1) in respect of defined contribution pension schemes.
| The highest paid Director received remuneration of £221,000 (2023 - £443,382).
| The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £1,321 (2023 - £1,321).
| The total accrued pension provision of the highest paid Director at 31 December 2024 amounted to £NIL (2023 - £NIL).
| The amount of the accrued lump sum in respect of the highest paid Director at 31 December 2024 amounted to £NIL (2023 - £NIL).
| Total remuneration paid to Key Management Personnel, which includes the directors within the rest of the group, was £696,281 (2023: £1,133,563).
Page 32
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
10. | Interest receivable
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other interest receivable | 281,563 | 99,773
|  | 281,563 | 99,773
11. | Interest payable and similar expenses
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Bank interest payable | 51,753 | 118,422
| Finance leases and hire purchase contracts | 2,647,748 | 2,556,140
| Other interest payable | 11,144 | 93,993
|  | 2,710,645 | 2,768,555
12. | Taxation
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 1,823,489 | 192,214
| Adjustments in respect of previous periods | (701,573) | (312,223)
|  | 1,121,916 | (120,009)
| Total current tax | 1,121,916 | (120,009)
| Deferred tax |  |
| Origination and reversal of timing differences | 690,535 | 84,505
| Total deferred tax | 690,535 | 84,505
| Tax on profit | 1,812,451 | (35,504)
Page 33
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 12.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.518%). The differences are explained below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 2,671,528 | 3,769,358
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.518 %) | 667,882 | 886,478
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 144,884 | 517,242
| Capital allowances for year in excess of depreciation | 21,912 | (1,256,930)
| Utilisation of tax losses | 135,572 | 7,966
| R and D expenditure credits | - | 43,760
| Fixed asset differences | 447,601 | -
| Adjustments to tax charge in respect of prior periods | (1,131,796) | (382,660)
| Changes in deferred tax rates leading to an increase in tax charge | - | (4,790)
| Non-taxable goodwill amortisation | 46,868 | 44,183
| Non-taxable income | 1,000 | -
| Chargeable gains/(losses) | 34,477 | -
| Changes in provisions leading to an increase (decrease) in the tax charge | 25,474 | 704
| Deferred tax not recognised | 1,418,577 | 107,837
| Losses | - | 706
| Total tax charge for the year | 1,812,451 | (35,504)
| Factors that may affect future tax charges
There were no factors that may affect future tax charges. Page 34
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
13. | Intangible assets
| Group
|  | Computer software | Goodwill | Total
|  | £ | £ | £
| Cost |  |  |
| At 1 January 2024 | 331 | 14,164,086 | 14,164,417
| At 31 December 2024 | 331 | 14,164,086 | 14,164,417
| Amortisation |  |  |
| At 1 January 2024 | 331 | 13,003,990 | 13,004,321
| Charge for the year on owned assets | - | 187,474 | 187,474
| At 31 December 2024 | 331 | 13,191,464 | 13,191,795
| Net book value |  |  |
| At 31 December 2024 | - | 972,622 | 972,622
| At 31 December 2023 | - | 1,160,096 | 1,160,096
| Goodwill contains £11,560,724 which is fully amortised and relates to the acquisition of bus routes in previous periods.
Page 35
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
14. | Tangible fixed assets
| Group
|  | Freehold property | Plant and machinery | Motor vehicles | Fixtures and fittings | Total
|  | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |
| At 1 January 2024 | 5,082,279 | 9,690,846 | 110,452,360 | 1,095,108 | 126,320,593
| Additions | 600,021 | 96,961 | 6,859,918 | 119,306 | 7,676,206
| Disposals | (680,105) | (1,109,604) | (25,739,910) | (784,810) | (28,314,429)
| At 31 December 2024 | 5,002,195 | 8,678,203 | 91,572,368 | 429,604 | 105,682,370
| Depreciation |  |  |  |  |
| At 1 January 2024 | 792,421 | 4,867,043 | 50,069,585 | 853,153 | 56,582,202
| Charge for the year on owned assets | 180,058 | 759,241 | 7,951,029 | 130,763 | 9,021,091
| Disposals | (105,931) | (1,074,934) | (24,305,503) | (784,810) | (26,271,178)
| At 31 December 2024 | 866,548 | 4,551,350 | 33,715,111 | 199,106 | 39,332,115
| Net book value |  |  |  |  |
| At 31 December 2024 | 4,135,647 | 4,126,853 | 57,857,257 | 230,498 | 66,350,255
| At 31 December 2023 | 4,289,858 | 4,823,804 | 60,382,774 | 241,956 | 69,738,392
| Depreciation is not provided on the land element of freehold property. The land value of freehold property amounts to £425,000 (31 December 2023: £425,000). The net book value of tangible fixed assets includes £58,775,308 (31 December 2023: £59,420,915) in respect of assets held under hire purchase or finance lease arrangements.
Page 36
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
15. | Fixed asset investments
| Group
|  | Investments in subsidiary companies | Other fixed asset investments | Total
|  | £ | £ | £
| Cost or valuation |  |  |
| At 1 January 2024 | 538,979 | - | 538,979
| Reclassifications | (429,497) | 1,020,497 | 591,000
| At 31 December 2024 | 109,482 | 1,020,497 | 1,129,979
| During the year, a balance of £591,000 previously included within other debtors has been reclassified to fixed asset investments, reflecting the director's assessment of the underlying nature of the arrangement. In addition, a balance of £429,000 previously included within investments in subsidiaries has been reclassified to other fixed asset investments, as it is considered more appropriately presented as such. These reclassifications are presentational only and have no impact on the company's profit or net assets.
| Company
|  | Investments in subsidiary companies
|  | £
| Cost or valuation |
| At 1 January 2024 | 798
| At 31 December 2024 | 798
Page 37
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
| Subsidiary undertakings
| As at 31 December 2024, the Company had one direct subsidiary undertaking: Arranglen Limited. The Company also had a number of indirect subsidiary undertakings at the year-end. The details of all direct and indirect subsidiary undertakings of the Company as at 31 December 2024 are shown below:
| Name | Registered office | Class of shares | Holding
| Arranglen Limited | 99 Earnhill Road, Larkfield Industrial Estate, Greenock, PA16 0EQ | Ordinary | 100%
| McGill's Bus Service Limited | 99 Earnhill Road, Larkfield Industrial Estate, Greenock, PA16 0EQ | Ordinary | 100%
| Loch Lomond Bus Services Limited | 99 Earnhill Road, Larkfield Industrial Estate, Greenock, PA16 0EQ | Ordinary | 100%
| McGill's City Connect Limited | 99 Earnhill Road, Larkfield Industrial Estate, Greenock, PA16 0EQ | Ordinary | 100%
| Smoothie Cruisers Limited | 99 Earnhill Road, Larkfield Industrial Estate, Greenock, PA16 0EQ | Ordinary | 100%
| Taybus Holdings Limited | 44/48 East Dock Street, Dundee, DD1 3JS | Ordinary | 100%
| Tayside Public Transport Company Limited | 44/48 East Dock Street, Dundee, DD1 3JS | Ordinary | 100%
| McGill's Scotland East Limited | Carmuirs House, 300 Stirling Road, Larbert, Stirlingshire, FK5 3NJ | Ordinary | 100%
| Midland Bluebird Limited | Carmuirs House, 300 Stirling Road, Larbert, Stirlingshire, FK5 3NJ | Ordinary | 100%
| Eastern Scottish Omnibuses Limited | Carmuirs House, 300 Stirling Road, Larbert, Stirlingshire, FK5 3NJ | Ordinary | 100%
| Loch Lomond Travel Limited | 99 Earnhill Road, Larkfield Industrial Estate, Greenock, PA16 0EQ | Ordinary | 100%
| Clayhunt Limited | 73 Union Street, Greenock, PA16 8BG | Ordinary | 100%
Page 38
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Subsidiary undertakings (continued)
| The aggregate of the share capital and reserves as at 31 December 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:
| Name | Aggregate of share capital and reserves | Profit/(Loss)
|  | £ | £
| Arranglen Limited | 13,508,687 | 4,008,608
| McGill's Bus Service Limited | 9,234,789 | (1,311,820)
| Loch Lomond Bus Services Limited | (2,262,475) | (2,353,787)
| McGill's City Connect Limited | 2 | -
| Smoothie Cruisers Limited | 2 | -
| Taybus Holdings Limited | 296,000 | -
| Tayside Public Transport Company Limited | 20,732,071 | 3,833,732
| McGill's Scotland East Limited | (5,104,093) | (4,244,859)
| Midland Bluebird Limited | 7,271,193 | 1,407,028
| Eastern Scottish Omnibuses Limited | 2,200,000 | -
| Loch Lomond Travel Limited | (276,190) | (277,190)
| Clayhunt Limited | 106,100 | -
16. | Stocks
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Fuels and parts stock | 1,091,777 | 1,243,927
|  | 1,091,777 | 1,243,927
| The difference between purchase price or production cost of stocks and their replacement cost is not material.
Page 39
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
17. | Debtors
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Trade debtors | 4,383,157 | 3,192,452
| Amounts owed by joint ventures and associated undertakings | 1,000,000 | -
| Other debtors | 19,897,755 | 14,262,329
| Prepayments and accrued income | 1,944,076 | 1,686,955
|  | 27,224,988 | 19,141,736
18. | Cash and cash equivalents
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Cash at bank and in hand | 9,385,271 | 15,754,775 | 2 | 2
|  | 9,385,271 | 15,754,775 | 2 | 2
19. | Creditors: Amounts falling due within one year
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Bank loans | 525,000 | 100,000 | - | -
| Trade creditors | 3,627,616 | 4,842,665 | - | -
| Amounts owed to group undertakings | - | - | 23,163 | -
| Corporation tax | 3,287,400 | 2,396,823 | - | -
| Other taxation and social security | 5,805,425 | 3,944,776 | - | -
| Obligations under finance lease and hire purchase contracts | 6,129,433 | 5,442,789 | - | -
| Other creditors | 7,297,087 | 9,183,607 | - | 8,000
| Accruals and deferred income | 5,153,725 | 6,303,233 | - | -
|  | 31,825,686 | 32,213,893 | 23,163 | 8,000
Page 40
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
20. | Creditors: Amounts falling due after more than one year
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Bank loans | - | 525,000
| Net obligations under finance leases and hire purchase contracts | 36,664,385 | 36,747,405
| Other creditors | - | 1,666,667
| Government grants received | 15,386,466 | 16,842,300
|  | 52,050,851 | 55,781,372
Bank loans are secured by a floating charge over the assets and undertakings of the group and a standard security over three of the group's properties.
21. | Loans
| Analysis of the maturity of loans is given below:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Amounts falling due within one year |  |
| Bank loans | 525,000 | 100,000
|  | 525,000 | 100,000
| Amounts falling due 1-2 years |  |
| Bank loans | - | 525,000
|  | - | 525,000
| Amounts falling due 2-5 years |  |
|  | 525,000 | 625,000
| Bank loans are secured by a floating charge over the assets and undertakings of the Company and a standard security over three of the group's properties.
Page 41
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
22. | Hire purchase and finance leases
| Minimum lease payments under hire purchase fall due as follows:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Within one year | 6,129,433 | 5,442,789
| Between 1-5 years | 17,326,999 | 15,066,616
| Over 5 years | 19,337,386 | 21,680,790
|  | 42,793,818 | 42,190,195
23. | Deferred taxation
| Group
|  | 2024
|  | £
| At beginning of year | (1,204,853)
| Charged to profit or loss | (690,535)
| At end of year | (1,895,388)
| Company
|  | 2024 £
| At end of year | -
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Accelerated capital allowances | (1,205,151) | (1,161,600)
| Short term timing differences | (690,481) | (43,551)
| Fixed asset timing differences | 244 | 298
|  | (1,895,388) | (1,204,853)
Page 42
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
24. | Provisions
| Group
|  | Insurance provision | Dilapidation provision | Total
|  | £ | £ | £
| At 1 January 2024 | 683,048 | 132,000 | 815,048
| Charged to profit or loss | 1,146,103 | - | 1,146,103
| At 31 December 2024 | 1,829,151 | 132,000 | 1,961,151
| Dilapidation provision The dilapidation provision represents expected costs of returning leased assets to their pre-lease condition, as stipulated by the terms of the lease agreement. Insurance provision The insurance provision relates to liabilities where there is uncertainty about the amount and the exact timing of any settlement. The group self-insures bus-related insurance claims up to a certain individual claim value and up to an annual aggregate value of annual claims. The director has recognised as a liability in the accounts a plausible, cumulative estimate of claims made but not settled up to the balance sheet date. This liability has been quantified on the basis of all information currently available, business experience, legal input and the supporting advice of the group’s specialist insurance brokers. Claim settlement will likely be made within 5 years of the claim becoming live. No discounting has been applied to the amount of the claim provision as the impact of this is not considered material.
25. | Share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 200 (2023 - 200) A Ordinary shares of £1.00 each | 200 | 200
|  | 100 (2023 - 100) B Ordinary shares of £1.00 each | 100 | 100
|  |  | 300 | 300
Page 43
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
26. | Reserves
Merger Reserve The merger reserve is a non-distributable reserve. The reserve comprises of the difference between the nominal value of the share capital issued by Dalglen (no. 1812) Limited and the share premium and nominal value of the share capital acquired in Arranglen Limited. Profit and loss account The profit and loss account comprises the accumulated profits and losses of the company.
27. | Prior year adjustment
During the current year, management identified that a dormant subsidiary had been omitted from the McGill's Bus Service Limited consolidated financial statements in the prior year. As a result, a prior year adjustment has been made to include the subsidiary within the consolidation. The omission resulted in an intercompany loan of £2,200,000 remaining on the consolidated balance sheet in error. This has now been corrected by eliminating the intercompany balance on consolidation. The adjustment has led to an increase in consolidated reserves of £2,200,000 as at the beginning of the comparative period.
28. | Contingent liabilities
A group subsidiary has an uncommitted bank facility with a total limit of £2,807,000 available for bonds, guarantees and standby letters of credit. The facility is secured by a floating charge over all present and future assets of the subsidiary Company. A guarantee in the form of a letter of credit is in place under this facility to satisfy contractual requirements with the subsidiary Company's insurers.
29. | Pension commitments
Across the group, total employer's contributions made in the year amounted to £1,304,201 (31 December 2023: £1,217,684). Total contributions of £412,913 (31 December 2023: £329,223) were payable at the reporting date.
30. | Commitments under operating leases
| At 31 December 2024 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  |  |  |  | 2024 | 2023
| Group |  |  |  | £ | £
| Not later than 1 year | 361,128 | 383,920
| Later than 1 year and not later than 5 years | 1,169,399 | 1,270,110
| Later than 5 years | 4,042,990 | 4,321,817
|  | 5,573,517 | 5,975,847
Page 44
DALGLEN (NO. 1812) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
31. | Transactions with directors
During the period advances of £57,562 were made to the Director of the parent company within the group. There were repayments of £130,927 made during the current accounting period. At 31 December 2024 the Director owed the Group a total of £972,508 (31 December 2023: £1,045,773). This balance includes interest, which has been charged at an appropriate commercial rate.
32. | Related party transactions
| As at 31 December 2024, the group owed key management personnel £43,466 (2023: £878,361 was due from key management personnel). The balances are unsecured, interest free and repayable on demand. The significant movement in the year primarily reflects the reclassification of certain balances to fixed asset investments to better reflect the underlying nature of the arrangements (see note 15), together with repayments and other movements during the year. As at 31 December 2024, the group was owed £765,289 (2023: £702,156) by key management personnel. The balances are unsecured and include interest, which has been charged at an appropriate commercial rate. During the period the Group provided cash advances of £6,500,000 (31 December 2023: £3,400,000) to an entity under common directorship in the form of an intercompany loan. The group received repayment of previous cash advanced of £1,330,000 from an entity under common directorship during the period. At the balance sheet date, amounts owed by the group to entities under common directorship was £2,771,258 (2023: £2,930,203). At the balance sheet date, amounts owed to the group by entities under common directorship was £13,116,515 (2023: £5,380,548). During the period, a number of buses with Nil book value were disposed of to an entity under common directorship. There were no proceeds received as part of the disposal. The cost of the disposal merited no consideration.
33. | Post balance sheet events
On 4 July 2025 the Group acquired the entire share capital of Prentice Westwood Limited, a company incorporated in Scotland. The acquisition occurred after the reporting date and is therefore not reflected in these consolidated financial statements. As at the date these financial statements were authorised for issue, an estimate of the financial effect of this acquisition is not practical.
34. | Controlling party
In the opinion of the Director the company does not have an ultimate controlling party.
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