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Unaudited Financial Statements |
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for the Year Ended 31 October 2021 |
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for |
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Hugh Simpson (Contractors) Limited |
REGISTERED NUMBER:
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Unaudited Financial Statements |
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for the Year Ended 31 October 2021 |
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for |
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Hugh Simpson (Contractors) Limited |
Hugh Simpson (Contractors) Limited (Registered number: SC067751) |
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Contents of the Financial Statements |
for the Year Ended 31 October 2021 |
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Company Information | 1 |
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Abridged Balance Sheet | 2 |
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Notes to the Financial Statements | 4 |
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Hugh Simpson (Contractors) Limited |
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Company Information |
for the Year Ended 31 October 2021 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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ACCOUNTANTS: |
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Chartered Accountants |
3-4 Market Place |
Wick |
Caithness |
KW1 4LP |
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BANKERS: |
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15 Academy Street |
Inverness |
IV1 1JN |
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SOLICITORS: |
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Capella |
60 York Street |
Glasgow |
G2 8JX |
Hugh Simpson (Contractors) Limited (Registered number: SC067751) |
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Abridged Balance Sheet |
31 October 2021 |
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2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Tangible assets | 5 |
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CURRENT ASSETS |
Stocks |
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Debtors | 6 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one year | ( |
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PROVISIONS FOR LIABILITIES | ( |
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ACCRUALS AND DEFERRED INCOME | 8 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital |
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Capital redemption reserve | ( |
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Retained earnings |
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SHAREHOLDERS' FUNDS |
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The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
Hugh Simpson (Contractors) Limited (Registered number: SC067751) |
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Abridged Balance Sheet - continued |
31 October 2021 |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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Hugh Simpson (Contractors) Limited (Registered number: SC067751) |
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Notes to the Financial Statements |
for the Year Ended 31 October 2021 |
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1. | STATUTORY INFORMATION |
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Hugh Simpson (Contractors) Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Turnover |
Turnover represents the value of the sale of goods and services to external customers net of value added tax, rebates and discounts. |
Turnover is recognised when significant risks and rewards of ownership of the goods are transferred to the buyer, which generally arises on delivery or in accordance with specific terms and conditions agreed with customers. |
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Goodwill |
Goodwill, being the amount paid in connection with the acquisition of a business in 2005 was fully written off in the year of acquisition. |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
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Tangible fixed assets |
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Freehold property | - |
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Long leasehold | - |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Motor vehicles | - |
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Freehold property is stated at cost less accumulated depreciation and any recognised provision for impairment. Costs include original purchase price of the asset and the costs incurred attributable to bringing the asset to its working condition for intended use. |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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Hugh Simpson (Contractors) Limited (Registered number: SC067751) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 October 2021 |
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2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
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The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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Going concern |
In March 2020, the World Health Organisation formally recognised COVID-19, the novel strain of coronavirus, as a pandemic. There are current uncertainties in the global economy and volatility in markets related to the COVID-19 outbreak. The period over which such volatility will persist, as well as any other longer term overall adverse effect on world economies, is difficult to predict. |
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In response to the COVID-19 pandemic Hugh Simpson (Contractors) Limited developed a plan to secure revenues and cut costs while also protecting our people. The government guidelines restricted site work but we were back working as soon as possible with appropriate precautions in place. |
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At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least the next 12 months from signing. The company has a strong net assets position and a good pipeline of work. |
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Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements. The financial statements do not include any adjustments that would result in the going concern basis of preparation not being appropriate. |
Hugh Simpson (Contractors) Limited (Registered number: SC067751) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 October 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial statements. |
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Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the next amounts presented in the financial statements, when there is 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. |
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Basic financial assets |
Basic financial assets, which include trade and other debtors, 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. |
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Other financial assets |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
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Impairment of financial assets |
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in profit or loss. |
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Derecognition of financial assets and liabilities |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity. Financial liabilities are derecognised when, and only when, the company's obligations are discharged, cancelled, or they expire. |
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Classification of 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 company after deducting all of its liabilities.Basic financial liabilities, including trade and other creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financial transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
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Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as 'creditors: amounts falling due within one year' if payment is due within one year or less. If not, they are presented as 'creditors: amounts falling due after more than one year'. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
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Other financial liabilities |
Other financial liabilities, including debt instruments that do not meet the definition of a basic financial instrument, are measured at fair value through profit or loss. |
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Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless they are included in a hedging arrangement. |
Hugh Simpson (Contractors) Limited (Registered number: SC067751) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 October 2021 |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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4. | INTANGIBLE FIXED ASSETS |
Totals |
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COST |
At 1 November 2020 |
and 31 October 2021 |
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AMORTISATION |
At 1 November 2020 |
and 31 October 2021 |
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NET BOOK VALUE |
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At 31 October 2021 |
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At 31 October 2020 |
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5. | TANGIBLE FIXED ASSETS |
Totals |
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COST |
At 1 November 2020 |
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Additions |
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Disposals | ( |
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At 31 October 2021 |
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DEPRECIATION |
At 1 November 2020 |
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Charge for year |
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Eliminated on disposal | ( |
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At 31 October 2021 |
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NET BOOK VALUE |
At 31 October 2021 |
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At 31 October 2020 |
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Hugh Simpson (Contractors) Limited (Registered number: SC067751) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 October 2021 |
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5. | TANGIBLE FIXED ASSETS - continued |
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Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
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Totals |
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COST |
At 1 November 2020 | 3,359,861 |
Transfer to ownership | (2,811,036 | ) |
At 31 October 2021 | 548,825 |
DEPRECIATION |
At 1 November 2020 | 1,063,231 |
Charge for year | 42,603 |
Transfer to ownership | (940,431 | ) |
At 31 October 2021 | 165,403 |
NET BOOK VALUE |
At 31 October 2021 | 383,422 |
At 31 October 2020 | 2,296,630 |
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6. | DEBTORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Other debtors |
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7. | SECURED DEBTS |
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The following secured debts are included within creditors: |
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2021 | 2020 |
£ | £ |
Bank loans |
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Hire purchase contracts | 86,062 | 576,988 |
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8. | ACCRUALS AND DEFERRED INCOME |
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2020 | 2020 |
£ | £ |
Balance at 1 November 2020 | 105,181 | 120,207 |
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Amount received in year | nil | nil |
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Amount released to profit and loss account | -15,026 | -15,026 |
Balance at 31 October 2021 | 90,155 | 105,181 |
Hugh Simpson (Contractors) Limited (Registered number: SC067751) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 October 2021 |
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9. | RELATED PARTY DISCLOSURES |
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Simpson Oils Limited |
A company in which H Simpson is majority shareholder. |
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The company provides management and other services to Simpson Oils Limited at normal commercial rates and on normal commercial terms. |
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The total value of services supplied by the company to Simpson Oils Limited during the year was £693,019 (2020 - £676,585). |
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The company purchases fuel and other products from Simpson Oils Limited at normal commercial rates and on normal commercial terms. |
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The total value of supplies to the company by Simpson Oils Limited during the year was £295,027 (2020 - £338,767). |
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2021 | 2020 |
£ | £ |
Amount due from/(to) related party at the balance sheet date | 118,521 | 291,359 |
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Oil and Storage Services Limited |
A company in which Hugh Simpsons two sons are shareholders/directors |
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The company provides goods and services to Oil and Storage Services Limited at normal commercial rates and on normal commercial terms. |
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The total value of goods and services supplied to the company by Oil and Storage Services Limited during the year was £191 (2020 - £19,778). |
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The company purchase services from Oil and Storage Services Limited at normal commercial rates and on normal commercial terms. |
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The total value of services supplied to the company by Oil and Storage Services Limited during the year was £nil (2020 - £nil). |
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2021 | 2020 |
£ | £ |
Amount due from/(to) related party at the balance sheet date | -18,396 | nil |
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MPA Engineering Limited |
A company owned by Oil and Storage Services Limited |
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The company provides goods and services to MPA Engineering Limited at normal commercial rates and on normal commercial terms. |
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The total value of goods and services supplied by the company to MPA Engineering Limited during the year was £96 (2020 - £401). |
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The company purchase services from MPA Engineering Limited at normal commercial rates and on normal commercial terms. |
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The total value of goods and services supplied to the company by MPA Engineering Limited during the year was £nil (2020 - £nil). |
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2021 | 2020 |
£ | £ |
Amount due from/(to) related party at the balance sheet date | -14,530 | -14,607 |
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Hugh Simpson (Contractors) Limited (Registered number: SC067751) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 October 2021 |
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H Simpson |
Director and majority shareholder |
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The amounts outstanding at the end of the financial year in respect of loans from the director to the company were £6,662 (2020 - £6,662) |
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As at 31 October 2021, the company had outstanding loans due to members of the director's family totalling £19,789 (2020 - £19,789). |
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10. | ULTIMATE CONTROLLING PARTY |
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The company is under the control of Mr H Simpson who owns 98.8% of the ordinary share capital. |