Company Registration No. SC419539 (Scotland)
OEM GROUP (SCOTLAND) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
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 2021
31 March 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
3
165,358
-
Tangible assets
4
5,257,598
215,790
5,422,956
215,790
Current assets
Stocks
898,837
858,837
Debtors
5
917,119
644,610
Cash at bank and in hand
25,687
1,149
1,841,643
1,504,596
Creditors: amounts falling due within one year
6
(1,709,026)
(1,107,743)
Net current assets
132,617
396,853
Total assets less current liabilities
5,555,573
612,643
Creditors: amounts falling due after more than one year
7
(1,100,975)
(584,649)
Provisions for liabilities
(833,449)
(20,472)
Net assets
3,621,149
7,522
Capital and reserves
Called up share capital
130
130
Share premium account
215,990
215,990
Revaluation reserve
3,465,847
-
Other reserves
10
10
Profit and loss reserves
(60,828)
(208,608)
Total equity
3,621,149
7,522
OEM GROUP (SCOTLAND) LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2021
31 March 2021
- 2 -
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 March 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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.
T
he 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.
The financial statements were approved by the board of directors and authorised for issue on 31 March 2022 and are signed on its behalf by:
B PARK
Mr B Park
Director
Company Registration No. SC419539
OEM GROUP (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
- 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, Portlethan, 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 a
mounts
in these financial statements are
rounded to the nearest £.
1.2
Going concern
The directors, having made due and careful enquiry, are of the opinion that the company has adequate working capital to execute its operations over the next 12 months. The directors, therefore, have 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.
true
In arriving at this conclusion, the directors have given due consideration to the impact of the worldwide Covid-19 pandemic on future operations and the ability of the company to continue to operate as a going concern. The directors remain confident that the company can continue to operate as a going concern. This assessment is based on the recent contract wins and review of all business operations.
As a result, the directors have 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
recover
ed
.
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 2021
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.
These
financial statements
for the year ended 31 March 2021
are the
first
financial statements
of
OEM Group (Scotland) Limited
prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was
1 April 2019
. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
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
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 2021
1
Accounting policies
(Continued)
- 5 -
1.8
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.
1.9
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.
1.10
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.
1.11
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 2021
1
Accounting policies
(Continued)
- 6 -
1.12
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 lease
s
asset are consumed.
1.13
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:
2021
2020
Number
Number
Total
22
20
3
Intangible fixed assets
Intellectual property
£
Cost
At 1 April 2020
-
Additions
183,731
At 31 March 2021
183,731
Amortisation and impairment
At 1 April 2020
-
Amortisation charged for the year
18,373
At 31 March 2021
18,373
Carrying amount
At 31 March 2021
165,358
At 31 March 2020
-
OEM GROUP (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 7 -
4
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Rental assets
Total
£
£
£
£
£
£
Cost
At 1 April 2020
263,975
23,172
50,817
60,113
-
398,077
Additions
63,327
21,239
1,728
1,563
725,000
812,857
Revaluation
310,510
-
-
-
3,968,314
4,278,824
At 31 March 2021
637,812
44,411
52,545
61,676
4,693,314
5,489,758
Depreciation and impairment
At 1 April 2020
104,847
12,993
36,895
27,552
-
182,287
Depreciation charged in the year
29,504
3,863
8,073
8,433
-
49,873
At 31 March 2021
134,351
16,856
44,968
35,985
-
232,160
Carrying amount
At 31 March 2021
503,461
27,555
7,577
25,691
4,693,314
5,257,598
At 31 March 2020
159,128
10,179
13,922
32,561
-
215,790
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2021
2020
£
£
Plant and equipment
56,286
52,250
Motor vehicles
24,421
32,561
80,707
84,811
During the year plant and equipment and rental assets were revalued to £5,331,126 by a combination of, a
n
independent third party
Valuer and the directors. This revaluation results in an unrealised gain reflected in Other
Comprehensive Income o
f
£4,278,824 with an associated deferred tax charge of £812,977.
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
251,910
342,904
Other debtors
239,703
248,563
Prepayments and accrued income
425,506
53,143
917,119
644,610
OEM GROUP (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 8 -
6
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans and overdrafts
8
17,960
49,823
Hire purchase
9
87,803
26,162
Other borrowings
8
52,610
115,180
Trade creditors
309,075
305,529
Amounts owed to related parties
21,630
89,499
Corporation tax
35,760
20,966
Other taxation and social security
365,609
123,442
Other creditors
508,830
313,613
Accruals and deferred income
309,749
63,529
1,709,026
1,107,743
Included in other creditors is an advance under an invoice factoring agreement of £
120,257
(20
20
-
£
282
,
613
). 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
2021
2020
£
£
Bank loans and overdrafts
8
41,667
-
Hire purchase
9
44,836
33,304
Other borrowings
8
1,014,472
551,345
1,100,975
584,649
8
Loans and overdrafts
2021
2020
£
£
Bank loans
50,000
-
Bank overdrafts
9,627
49,823
Other loans
1,067,082
666,525
1,126,709
716,348
Payable within one year
70,570
165,003
Payable after one year
1,056,139
551,345
OEM GROUP (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 9 -
9
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
Within one year
87,803
26,161
In two to five years
44,836
33,305
132,639
59,466
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:
2021
2020
£
£
75,000
106,836
11
Related party transactions
During the year, the company made advances to directors of
£1,770
, which resulted in amounts due to the company at the year end of £
177,990
(2020
- £
176
,
220
). The loan is unsecured and interest free with no fixed repayment terms in place.