Company No: SC825493 (Scotland)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	31.10.2025
		£
Fixed assets
Intangible assets	3	1,332,000
Tangible assets	4	147,544
		1,479,544
Current assets
Stocks		6,243
Debtors	5	97,789
Cash at bank and in hand		185,257
		289,289
Creditors: amounts falling due within one year	6	( 1,007,572)
Net current liabilities		(718,283)
Total assets less current liabilities		761,261
Creditors: amounts falling due after more than one year	7	( 532,857)
Net assets		228,404
Capital and reserves
Called-up share capital	9	200
Profit and loss account		228,204
Total shareholders' funds		228,404

For the financial period ending 31 October 2025 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial period in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of M & D McPhee Ltd (registered number: SC825493) were approved and authorised for issue by the Board of Directors on 19 August 2026. They were signed on its behalf by:

D McPhee Director

M McPhee Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial period, unless otherwise stated.

General information and basis of accounting

M & D McPhee Ltd (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in Scotland. The address of the Company's registered office is 82-84 Graham Street, Airdrie, ML6 6DB, Scotland, United Kingdom.

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

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

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Reporting period length

Reporting period length covers 12 months and 21 days from incorporation on 10 October 2024 to the year end of 31 October 2025.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Taxation

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

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

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

Intangible assets

Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

Goodwill	10 years straight line
Other intangible assets	10 years straight line

Goodwill

Goodwill arises on business combination and represents any excess of consideration given over the fair value of the identifiable assets and liabilities acquired. Goodwill is initially recognised as an intangible asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis over its useful economic life, which is [number] 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.

Tangible fixed assets

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

Plant and machinery	20 % reducing balance
Fixtures and fittings	20 % reducing balance
Computer equipment	20 % reducing balance

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

Financial instruments

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

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

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

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

2. Employees

	Period from 10.10.2024 to 31.10.2025
	Number
Monthly average number of persons employed by the Company during the period, including directors	12

3. Intangible assets

	Goodwill		Other intangible assets		Total
	£		£		£
Cost
At 10 October 2024	0		0		0
Additions	1,479,995		5		1,480,000
At 31 October 2025	1,479,995		5		1,480,000
Accumulated amortisation
At 10 October 2024	0		0		0
Charge for the financial period	148,000		0		148,000
At 31 October 2025	148,000		0		148,000
Net book value
At 31 October 2025	1,331,995		5		1,332,000

4. Tangible assets

	Plant and machinery		Fixtures and fittings		Computer equipment		Total
	£		£		£		£
Cost
At 10 October 2024	0		0		0		0
Additions	169,776		3,702		5,945		179,423
At 31 October 2025	169,776		3,702		5,945		179,423
Accumulated depreciation
At 10 October 2024	0		0		0		0
Charge for the financial period	31,175		185		519		31,879
At 31 October 2025	31,175		185		519		31,879
Net book value
At 31 October 2025	138,601		3,517		5,426		147,544

5. Debtors

	31.10.2025
	£
Trade debtors	84,869
Prepayments	12,920
	97,789

6. Creditors: amounts falling due within one year

	31.10.2025
	£
Bank loans	20,438
Trade creditors	25,250
Amounts owed to directors	788,025
Accruals	4,306
Deferred tax liability	7,826
Taxation and social security	141,862
Obligations under finance leases and hire purchase contracts	18,870
Other creditors	995
	1,007,572

Bank loans of £20,438 are secured by a floating charge over certain assets of the company.

7. Creditors: amounts falling due after more than one year

	31.10.2025
	£
Bank loans	498,747
Obligations under finance leases and hire purchase contracts	34,110
	532,857

Bank loans of £498,747 are secured by a floating charge over certain assets of the company.

8. Deferred tax

	31.10.2025
	£
At the beginning of financial period	0
Charged to the Profit and Loss Account	( 7,826)
At the end of financial period	( 7,826)

9. Called-up share capital

	31.10.2025
	£
Allotted, called-up and fully-paid
100 Ordinary shares of £ 1.00 each	100
50 Ordinary A shares of £ 1.00 each	50
50 Ordinary B shares of £ 1.00 each	50
	200

10. Related party transactions

Transactions with the entity's directors

	31.10.2025
	£
Amounts owed to key management personnel	788,025