Allma Holdings Limited - Limited company accounts 18.2

REGISTERED NUMBER: SC354030 (Scotland)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 28 February 2019

for

Allma Holdings Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Statement of Comprehensive Income

6

Consolidated Balance Sheet

7

Company Balance Sheet

8

Consolidated Statement of Changes in Equity

9

Company Statement of Changes in Equity

10

Consolidated Cash Flow Statement

11

Notes to the Consolidated Cash Flow Statement

12

Notes to the Consolidated Financial Statements

13

DIRECTORS:

P J McBride

P A G McBride

D S Kelly

SECRETARY:

D S Kelly

REGISTERED OFFICE:

28 Muriel Street

Barrhead

G78 1QB

REGISTERED NUMBER:

SC354030 (Scotland)

AUDITORS:

McLay McAlister & McGibbon LLP

Chartered Accountants and Statutory Auditors

145 St Vincent Street

Glasgow

G2 5JF

The directors present their strategic report of the company and the group for the year ended 28 February 2019.

REVIEW OF BUSINESS

The accounts have been prepared under FRS 102.

The group's key financial and other performance indicators during the year are as follows:

2019

2018

£

£

Turnover (continuing operations)

28,625,809

32,888,491

Profit/(Loss) before taxation

310,139

(447,294

)

% (decrease) / increase in turnover

(13%

)

14%

Current asset as a % of current liabilities

173%

166%

As reported in last year's Strategic Report, in November 2017, a decision was taken to reduce employee numbers. This

process was completed by the end of April 2018. The reduction in turnover during the year is as a result of this policy.

The group continues to focus on improvements in productivity and work flow management. This approach has resulted

in strong profitability in the period from May 2018. Despite suffering losses in the first two months of the year, the

company has seen a return to profit for the year as a whole.

The group continues to pursue Lightning Star Limited and John Moore for payment of debts in respect of the

Greendykes and Edmonstone developments in Edinburgh. The courts in the Isle of Man have issued judgment in favour

of the group for an amount in excess of £1.1m against Mr John Moore of Meary Voar, Stanton, Isle of Man. The debts

were written off in the year ended 28 February 2016. Whilst the debt is still considered bad, the group continues to

pursue the debt.

The group continues to perform successfully in a difficult trading environment. The directors are confident that the

commencement of new projects and the strong partnerships the group has forged with its customers will result in a

robust financial performance in the current year.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors continue to monitor the key risks facing the group and assess controls for managing these risks.

ON BEHALF OF THE BOARD:

D S Kelly - Director

19 August 2019

The directors present their report with the financial statements of the company and the group for the year ended

28 February 2019.

DIVIDENDS

During the year dividends were paid in the amount of £NIL (2018 - £35,000). No further dividends will be distributed

for the year ended 28 February 2019.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 March 2018 to the date of this report.

P J McBride

P A G McBride

D S Kelly

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial

statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the

directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the

company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable

steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as

a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are

aware of that information.

ON BEHALF OF THE BOARD:

D S Kelly - Director

19 August 2019

Opinion

We have audited the financial statements of Allma Holdings Limited (the 'parent company') and its subsidiaries (the

'group') for the year ended 28 February 2019 which comprise the Consolidated Statement of Comprehensive Income,

Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company

Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow

Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial

reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting

Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and

Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 28 February 2019 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the group in accordance with the ethical requirements

that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have

fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we

have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group

Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the

Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise

explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether there is a material misstatement in the financial

statements or a material misstatement of the other information. If, based on the work we have performed, we conclude

that there is a material misstatement of this other information, we are required to report that fact. We have nothing to

report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in

the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the

Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you

if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and

for such internal control as the directors determine necessary to enable the preparation of financial statements that are

free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's

ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease

operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs

(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's

members as a body, for our audit work, for this report, or for the opinions we have formed.

Fiona Russell (Senior Statutory Auditor)

for and on behalf of McLay McAlister & McGibbon LLP

Chartered Accountants and Statutory Auditors

145 St Vincent Street

Glasgow

G2 5JF

19 August 2019

TURNOVER

28,625,809

32,888,491

Cost of sales

(23,738,925

)

(28,326,601

)

GROSS PROFIT

4,886,884

4,561,890

Administrative expenses

(4,358,135

)

(4,773,871

)

OPERATING PROFIT/(LOSS)

4

528,749

(211,981

)

Interest receivable and similar income

690

294

529,439

(211,687

)

Interest payable and similar expenses

5

(219,300

)

(235,607

)

PROFIT/(LOSS) BEFORE TAXATION

310,139

(447,294

)

Tax on profit/(loss)

6

(65,533

)

87,908

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

244,606

(359,386

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

244,606

(359,386

)

Profit/(loss) attributable to:

Owners of the parent

244,606

(359,386

)

Total comprehensive income attributable to:

Owners of the parent

244,606

(359,386

)

FIXED ASSETS

Tangible assets

9

4,152,992

4,953,786

Investments

10

-

-

4,152,992

4,953,786

CURRENT ASSETS

Stocks

11

739,146

773,504

Debtors

12

6,495,168

6,265,956

Cash at bank and in hand

53

402,320

7,234,367

7,441,780

CREDITORS

Amounts falling due within one year

13

(4,292,102

)

(4,483,842

)

NET CURRENT ASSETS

2,942,265

2,957,938

TOTAL ASSETS LESS CURRENT LIABILITIES

7,095,257

7,911,724

CREDITORS

Amounts falling due after more than one year

14

(1,336,740

)

(2,463,346

)

PROVISIONS FOR LIABILITIES

18

(219,622

)

(154,089

)

NET ASSETS

5,538,895

5,294,289

CAPITAL AND RESERVES

Called up share capital

19

2,235,000

2,235,000

Share premium

20

3,469,289

3,469,289

Revaluation reserve

20

100,428

100,428

Retained earnings

20

(265,822

)

(510,428

)

SHAREHOLDERS' FUNDS

5,538,895

5,294,289

The financial statements were approved by the Board of Directors on 19 August 2019 and were signed on its behalf by:

D S Kelly - Director

FIXED ASSETS

Tangible assets

9

575,688

575,688

Investments

10

3,240,028

3,240,029

3,815,716

3,815,717

CURRENT ASSETS

Debtors

12

2,004,500

1,931,000

Cash at bank

7,239

89,844

2,011,739

2,020,844

CREDITORS

Amounts falling due within one year

13

(26,125

)

(31,614

)

NET CURRENT ASSETS

1,985,614

1,989,230

TOTAL ASSETS LESS CURRENT LIABILITIES

5,801,330

5,804,947

CAPITAL AND RESERVES

Called up share capital

19

2,235,000

2,235,000

Share premium

20

3,569,717

3,569,717

Retained earnings

20

(3,387

)

230

SHAREHOLDERS' FUNDS

5,801,330

5,804,947

Company's (loss)/profit for the financial year

(3,616

)

31,377

The financial statements were approved by the Board of Directors on 19 August 2019 and were signed on its behalf by:

D S Kelly - Director

Called up

share

Retained

Share

Revaluation

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 March 2017

2,235,000

(116,042

)

3,469,289

100,428

5,688,675

Changes in equity

Dividends

-

(35,000

)

-

-

(35,000

)

Total comprehensive income

-

(359,386

)

-

-

(359,386

)

Balance at 28 February 2018

2,235,000

(510,428

)

3,469,289

100,428

5,294,289

Changes in equity

Total comprehensive income

-

244,606

-

-

244,606

Balance at 28 February 2019

2,235,000

(265,822

)

3,469,289

100,428

5,538,895

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 March 2017

2,235,000

3,853

3,569,717

5,808,570

Changes in equity

Dividends

-

(35,000

)

-

(35,000

)

Total comprehensive income

-

31,377

-

31,377

Balance at 28 February 2018

2,235,000

230

3,569,717

5,804,947

Changes in equity

Total comprehensive income

-

(3,616

)

-

(3,616

)

Balance at 28 February 2019

2,235,000

(3,386

)

3,569,717

5,801,331

Cash flows from operating activities

Cash generated from operations

1

577,077

178,530

Interest paid

(106,077

)

(97,354

)

Interest element of hire purchase payments paid

(113,223

)

(138,253

)

Tax paid

29,590

(29,590

)

Net cash from operating activities

387,367

(86,667

)

Cash flows from investing activities

Purchase of tangible fixed assets

(20,300

)

(28,705

)

Sale of tangible fixed assets

638,835

171,752

Interest received

690

294

Net cash from investing activities

619,225

143,341

Cash flows from financing activities

New loans in year

-

1,600,000

Loan repayments in year

(483,333

)

(483,333

)

Capital repayments in year

(1,198,363

)

(1,449,133

)

Equity dividends paid

-

(35,000

)

Net cash from financing activities

(1,681,696

)

(367,466

)

Decrease in cash and cash equivalents

(675,104

)

(310,792

)

Cash and cash equivalents at beginning of year

2

402,320

713,112

Cash and cash equivalents at end of year

2

(272,784

)

402,320

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

28.2.19

28.2.18

£

£

Profit/(loss) before taxation

310,139

(447,294

)

Depreciation charges

884,518

1,029,459

Profit on disposal of fixed assets

(389,126

)

(38,002

)

Finance costs

219,300

235,607

Finance income

(690

)

(294

)

1,024,141

779,476

Decrease/(increase) in stocks

34,358

(169,377

)

(Increase)/decrease in trade and other debtors

(253,015

)

517,342

Decrease in trade and other creditors

(228,407

)

(948,911

)

Cash generated from operations

577,077

178,530

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these

Balance Sheet amounts:

Year ended 28 February 2019

28.2.19

1.3.18

£

£

Cash and cash equivalents

53

402,320

Bank overdrafts

(272,837

)

-

(272,784

)

402,320

Year ended 28 February 2018

28.2.18

1.3.17

£

£

Cash and cash equivalents

402,320

713,112

1.	STATUTORY INFORMATION

Allma Holdings Limited is a private company, limited by shares , registered in Scotland. The company's

registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation

The group financial statements incorporate Allma Holdings Limited and its subsidiaries made up to 28 February

2019.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the

financial statements.

Turnover

Turnover represents net invoiced sales of goods and services, excluding value added tax.

Turnover in respect of long term contracts is assessed on a contract by contract basis, whereby turnover and

related costs are reflected in the profit and loss account in accordance with the stage of completion of the

contract. Where the outcome of each long term contract can be assessed with reasonable certainty before its

conclusion, the attributable profit is recognised in the profit and loss account as the difference between the

reported turnover and related costs for that contract.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value

of each asset over its estimated useful life.

Plant and machinery - 25% on cost

Fixtures and fittings - 25% on cost

Motor vehicles - 25% on cost

Freehold buildings are not depreciated as the charge would be immaterial.

Fully depreciated assets are retained in cost and related accumulated depreciation until they are removed from

service. In the case of disposals, assets and related depreciation are removed from the financial statements and

the net amount, less proceeds from disposal, is charged or credited to the income statement.

Stocks and work in progress

Stocks and work in progress have been valued at the lower of cost and net realisable value; in respect of work in

progress and finished goods, cost includes a relevant proportion of overheads according to the stage of

completion and in accordance with FRS 102 and is shown as 'amounts recoverable on contracts' in Debtors.

Profit is taken on contracts where the amount can be reasonably foreseen on a prudent basis.

Financial instruments

Debtors

Trade debtors and other debtors are recognised at the settlement amount due with appropriate allowances for any

irrecoverable amounts when there is objective evidence the asset is impaired.

Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash in hand and at bank.

Creditors

Trade creditors and other creditors are recognised where the company has a present obligation resulting from a

past event and are recognised at the settlement amount due after allowing for any trade discounts due.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of

Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or

directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

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.

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts are capitalised in the balance sheet and are depreciated over their

estimated useful lives.

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.

Pension costs and other post-retirement benefits

The group contributes to personal pension plans for one of its directors. These funds are held by third parties

and this cost is charged to the profit and loss account as the contributions are paid.

The group contributes to a group personal pension scheme for the benefit of its employees and two of its

directors. These funds are administered by third parties and are separate from the company. The cost is charged

to the profit and loss account as the contributions are paid.

Grants

Grants of a revenue nature are credited to the profit and loss account in the period in which the expenditure is

incurred.

Critical accounting judgements and estimates

The preparation of these financial statements requires the directors to make judgements, estimates and

assumptions that affect the application of policies and reported amounts of assets and liabilities, income and

expenses. Judgements and estimates are continually evaluated and are based on historical experiences and other

factors, including expectations of future events that are believed to be reasonable under the circumstances.

The company makes estimates and assumptions concerning the future. The estimates and assumptions that have

a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next

financial year are discussed below.

Long term contracts

The company is involved in the construction industry and generates the majority of its turnover from long-term

contracts. The profitability of each contract varies over its life. The directors regularly review the performance

of each contract to assess periodic profit recognition.

Adjustments are made over the life of each contract to determine the profits expected to be generated. It is

necessary to consider the timing and quantification of ongoing income and expenditure streams. At each

financial year end, this process involves analysing the stage of completion, future costs and work yet to be

completed in respect of each ongoing contract, together with anticipating any future costs arising after practical

completion.

3.	EMPLOYEES AND DIRECTORS

28.2.19

28.2.18

£

£

Wages and salaries

11,129,602

12,376,134

Social security costs

1,216,958

1,314,609

Other pension costs

240,879

145,557

12,587,439

13,836,300

The average number of employees employed by group undertakings during the year was as follows:

28.2.19

28.2.18

Directors, surveyors and office staff

24

25

Operatives

277

322

301

347

The average number of employees employed by group undertakings that were proportionately consolidated

during the year was 301 (2018 - 347).

28.2.19

28.2.18

£

£

Directors' remuneration

720,000

712,500

Directors' pension contributions to money purchase schemes

83,041

82,291

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2