Company Registration No. SC199759 (Scotland)
MCLEOD + AITKEN LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
PAGES FOR FILING WITH REGISTRAR
MCLEOD + AITKEN LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
MCLEOD + AITKEN LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2020
30 September 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
3
5,524
3,590
Current assets
Debtors
4
3,942,608
3,761,043
Cash at bank and in hand
334,531
17,430
4,277,139
3,778,473
Creditors: amounts falling due within one year
5
(1,414,782)
(637,616)
Net current assets
2,862,357
3,140,857
Total assets less current liabilities
2,867,881
3,144,447
Capital and reserves
Called up share capital
6
50,000
50,000
Profit and loss reserves
2,817,881
3,094,447
Total equity
2,867,881
3,144,447
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 period ended 30 September 2020 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 period 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 10 February 2021 and are signed on its behalf by:
D Moir
Director
Company Registration No. SC199759
MCLEOD + AITKEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
- 2 -
1
Accounting policies
Company information
McLeod + Aitken Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Queens Gate, 30 Queens Road, ABERDEEN, AB15 4YF.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Reporting period
Th
e end of
the
entity’s
reporting period
has
change
d from 31 March to 30 September. It has been extended to reflect work performed on the group structure and intercompany balances. As a result the
comparative amounts presented in the financial statements (including
the related notes) are not entirely comparable.
1.3
Turnover
Turnover represents net fees by reference to the stage of completion of the work. Profit is recognised as the work is carried out if the final outcome can be assessed with reasonable certainty, by including turnover and related costs as the work progresses. Turnover is calculated by reference to the value of work performed to date as a proportion of the total contract value.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation 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:
Fixtures, fittings & equipment
- 25% on cost
Computer equipment
- 25% on cost
Motor vehicles
- 25% on cost
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
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its
tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
MCLEOD + AITKEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 3 -
1.6
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
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 instruments.
Financial instruments are recognised in the company's balance sheet when the company 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 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.
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
Basic financial liabilities, including creditors, bank loans
and
loans from
fellow group companies
,
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. A
m
ounts 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.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
MCLEOD + AITKEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 4 -
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 is provided in full on timing differences which result in an obligation at the balance sheet date to pay more tax, or right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the financial statements. Deferred tax assets are recognised to the extent that it is regarded as more likely than not they will be recovered. Deferred tax assets and liabilities are not discounted.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
The company makes contributions to the Directors Personal Pension Schemes. Contributions paid for the year are charged in the profit and loss account.
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
Government grants
Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants received do not specify performance conditions and are recognised in income when the proceeds are received or receivable.
1.14
Foreign exchange
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 are included in the profit and loss account for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was 60 (2019 - 54
).
MCLEOD + AITKEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
- 5 -
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2019
340,136
Additions
6,009
At 30 September 2020
346,145
Depreciation and impairment
At 1 April 2019
336,546
Depreciation charged in the period
4,075
At 30 September 2020
340,621
Carrying amount
At 30 September 2020
5,524
At 31 March 2019
3,590
4
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
1,429,927
1,213,546
Amounts owed by group undertakings
1,951,318
2,110,613
Other debtors
561,363
436,884
3,942,608
3,761,043
5
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans and overdrafts
-
127,617
Trade creditors
196,321
103,997
Amounts owed to group undertakings
41,431
12,802
Corporation tax
227,176
18,000
Other taxation and social security
511,976
314,591
Other creditors
437,878
60,609
1,414,782
637,616
MCLEOD + AITKEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2020
- 6 -
6
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
50,000 Ordinary shares of £1 each
50,000
50,000
7
Financial commitments, guarantees and contingent liabilities
The bank hold floating charges and guarantees over the assets of the company as security for the bank borrowings of McLeod + Aitken (Holdings) Limited.
8
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:
2020
2019
£
£
544,990
590,356
9
Securities granted
Floating charges have been provided to Clydesdale Bank plc and another party covering all property and assets of the company.
10
Directors' transactions
During the period £189,500 was advanced to the directors. Loans of £18,000 due from former directors were written off in the period. At the period end date £335,500 (2019 - £164,000) was payable by the directors. The loans are interest free with no fixed terms of repayment.