Company registration number SC419539 (Scotland)
OEM GROUP (SCOTLAND) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
PAGES FOR FILING WITH REGISTRAR
OEM GROUP (SCOTLAND) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
OEM GROUP (SCOTLAND) LIMITED
BALANCE SHEET
AS AT 31 MARCH 2022
31 March 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
3
146,985
165,358
Tangible assets
4
4,784,901
5,257,598
4,931,886
5,422,956
Current assets
Stocks
898,837
898,837
Debtors
5
1,330,721
917,119
Cash at bank and in hand
34,363
25,687
2,263,921
1,841,643
Creditors: amounts falling due within one year
6
(2,366,846)
(1,709,026)
Net current (liabilities)/assets
(102,925)
132,617
Total assets less current liabilities
4,828,961
5,555,573
Creditors: amounts falling due after more than one year
7
(1,083,191)
(1,100,975)
Provisions for liabilities
(762,064)
(833,449)
Net assets
2,983,706
3,621,149
Capital and reserves
Called up share capital
130
130
Share premium account
215,990
215,990
Revaluation reserve
3,132,606
3,465,847
Other reserves
10
10
Profit and loss reserves
(365,030)
(60,828)
Total equity
2,983,706
3,621,149
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
OEM GROUP (SCOTLAND) LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2022
31 March 2022
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 21 July 2023 and are signed on its behalf by:
B PARK
B Park
Director
Company Registration No. SC419539
OEM GROUP (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 3 -
1
Accounting policies
Company information
OEM Group (Scotland) Limited is a private company limited by shares incorporated in Scotland. The registered office is Unit B Badentoy Avenue, Badentoy Park, Portlethen, Aberdeen, Scotland, AB12 4YB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
1.2
Going concern
The company made a loss for the period and at the balance sheet date the company has net current liabilities of £1true02,925 (2021 Net Current Assets - £132,617). The company has invested resource and money into overseas markets with a longer term view of improving the profitability of the company. The company’s finance providers have continued to support the company in the past 12 months. In the financial statements for the year to 31 March 2022, there has been historic intercompany debt written off, which has contributed to the losses in the year. The financial statements has therefore been prepared on a going concern basis.
Despite the losses in the year, the director remains confident that the company can continue to operate as a going concern. This assessment is based future contracts and projections showing the company will become profitable in the future.
The director, having made due and careful enquiry, is of the opinion that the company has adequate working capital to execute its operations over the next 12 months. The director, therefore, has made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
As a result, the director has continued to adopt the going concern basis of accounting in preparing the annual financial statements.
1.3
Revenue
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
OEM GROUP (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 4 -
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Intellectual property
10% Straight Line
1.6
Tangible fixed assets
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
Plant and equipment
15% Reducing Balance
Fixtures and fittings
15% Reducing Balance
Motor vehicles
25% Reducing Balance
Office equipment
33% Straight Line
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 the Statement of comprehensive income.
Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Balance sheet date. Fair values are determined from market based evidence normally undertaken by external third party independent valuers, with input from the directors.
Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption.
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
1.8
Finance costs
Finance costs are charged to the Statement of comprehensive income 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.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
OEM GROUP (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 5 -
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
1.10
Financial instruments
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans from group companies. These are measured at amortised cost and are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
1.11
Current and deferred taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Retirement benefits
The company operates a defined contribution plan for it's employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in the Statement of comprehensive income 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 company in independently administered funds.
OEM GROUP (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 6 -
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Foreign currency translation
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
23
22
3
Intangible fixed assets
Intellectual property
£
Cost
At 1 April 2021 and 31 March 2022
183,731
Amortisation and impairment
At 1 April 2021
18,373
Amortisation charged for the year
18,373
At 31 March 2022
36,746
Carrying amount
At 31 March 2022
146,985
At 31 March 2021
165,358
OEM GROUP (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 7 -
4
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Office equipment
Motor vehicles
Rental assets
Total
£
£
£
£
£
£
Cost
At 1 April 2021
637,812
44,411
52,545
61,676
4,693,314
5,489,758
Additions
1,189
3,251
70,900
75,340
Disposals
(60,113)
(199,117)
(259,230)
At 31 March 2022
639,001
44,411
55,796
72,463
4,494,197
5,305,868
Depreciation and impairment
At 1 April 2021
134,351
16,856
44,968
35,985
232,160
Depreciation charged in the year
75,668
4,133
6,376
15,137
234,667
335,981
Eliminated in respect of disposals
(37,218)
(9,956)
(47,174)
At 31 March 2022
210,019
20,989
51,344
13,904
224,711
520,967
Carrying amount
At 31 March 2022
428,982
23,422
4,452
58,559
4,269,486
4,784,901
At 31 March 2021
503,461
27,555
7,577
25,691
4,693,314
5,257,598
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2022
2021
£
£
Plant and equipment
49,786
56,286
Motor vehicles
57,606
24,421
107,392
80,707
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
668,840
251,910
Other debtors
617,484
239,703
Prepayments and accrued income
44,397
425,506
1,330,721
917,119
OEM GROUP (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 8 -
6
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
8
62,043
17,960
Hire purchase
9
32,227
87,803
Other borrowings
8
46,881
52,610
Trade creditors
593,825
309,075
Amounts owed to related parties
21,630
Corporation tax
17,251
35,760
Other taxation and social security
703,761
365,609
Other creditors
491,734
508,830
Accruals and deferred income
419,124
309,749
2,366,846
1,709,026
Included in other creditors is an advance under an invoice factoring agreement of £449,329 (2021 - £120,257). Under the terms of the invoice factoring agreement with Easy Invoice Finance Limited, the trade debts of the company are assigned to the factors. The other borrowings are secured by personal guarantees from a director.
7
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
8
59,291
41,667
Hire purchase
9
48,787
44,836
Other borrowings
8
975,113
1,014,472
1,083,191
1,100,975
8
Loans and overdrafts
2022
2021
£
£
Bank loans
121,334
50,000
Bank overdrafts
9,627
Other loans
1,021,994
1,067,082
1,143,328
1,126,709
Payable within one year
108,924
70,570
Payable after one year
1,034,404
1,056,139
OEM GROUP (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 9 -
9
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
32,227
87,803
In two to five years
48,787
44,836
81,014
132,639
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2022
2021
£
£
75,000
75,000
11
Related party transactions
During the year, the company made advances to directors of £1,101, which resulted in amounts due to the company at the year end of £179,091 (2021 - £177,990). The loan is unsecured and interest free with no fixed repayment terms in place.