Emergency One (U.K.) Limited - Limited company accounts 18.2

REGISTERED NUMBER: SC319443 (Scotland)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2018

FOR

EMERGENCY ONE (U.K.) LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTORS:

M Madsen

M G McBeth

F S R Morran

J A Bell

Mrs E Morran

REGISTERED OFFICE:

3A Caponacre Industrial Estate

Cumnock

Ayrshire

KA18 1SH

REGISTERED NUMBER:

SC319443 (Scotland)

AUDITORS:

Portlands

Chartered Accountants

and Statutory Auditor

The Alhambra Suite

4th Floor

82 Mitchell Street

Glasgow

G1 3NA

The directors present their strategic report of the company and the group for the year ended 31 December 2018.

The principal activity of the group in the year under review was that of a manufacturer of fire-fighting vehicles. The

other trading subsidiary in the group, Clan Tools and Plant Limited, provides equipment, spares and repairs to the

fire-fighting industry.

REVIEW OF BUSINESS

The results for the year and financial position of the group are as shown in the annexed financial statements. The

directors are satisfied with the results for the year and the group continues to develop and build quality fire-fighting

vehicles for the UK market. . The subsidiary, Clan Tools & Plant Limited, continues to provide equipment, spares and

repairs to the fire-fighting industry.

Given the straightforward nature of the business, the directors are of the opinion that analysis using key performance

indicators is not necessary for an understanding of the development, performance or position of the business.

PRINCIPAL RISKS AND UNCERTAINTIES

During the forthcoming year the board consider the principal risks and uncertainties affecting the group to be:

- Competition in the UK market

- Managing the impact of the difficult economic conditions on our suppliers and customers

Having considered the risks to the business, the board are of the opinion that the group can respond to and mitigate the

impact of these risks and uncertainties.

FUTURE DEVELOPMENTS

The group plans to investigate the export market for fire-fighting vehicles.

ON BEHALF OF THE BOARD:

M Madsen - Director

21 June 2019

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

31 December 2018.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2018 was £1,000,000 (2017: £nil).

RESEARCH AND DEVELOPMENT

The group has continued to carry out research and development into high performance and multi purpose fire-fighting

vehicles for use in certain specialised areas.

DIRECTORS

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

report.

M Madsen

M G McBeth

F S R Morran

J A Bell

Mrs E Morran

Other changes in directors holding office are as follows:

R Wells - resigned 10 October 2018

W Burns - resigned 3 December 2018

DISCLOSURE IN THE STRATEGIC REPORT

The statement on future developments as required under Schedule 7 to the Large and Medium-sized Companies and

Groups (Accounts and Reports Regulations) 2008 to be disclosed in the directors' report is set out in the strategic report

in accordance with s414C(11) CA 2006.

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;

-	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 or she ought to have

taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the

group's auditors are aware of that information.

AUDITORS

The auditors, Portlands, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M Madsen - Director

21 June 2019

Opinion

We have audited the financial statements of Emergency One (U.K.) Limited (the 'parent company') and its subsidiaries

(the 'group') for the year ended 31 December 2018 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 31 December 2018 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.

Paul McGuigan CA (Senior Statutory Auditor)

for and on behalf of Portlands

Chartered Accountants

and Statutory Auditor

The Alhambra Suite

4th Floor

82 Mitchell Street

Glasgow

G1 3NA

21 June 2019

TURNOVER

45,718,917

36,169,206

Cost of sales

38,155,374

31,008,082

GROSS PROFIT

7,563,543

5,161,124

Administrative expenses

1,915,351

1,753,728

5,648,192

3,407,396

Other operating income

2,684

8,784

OPERATING PROFIT

5

5,650,876

3,416,180

Interest receivable and similar income

13,167

480

5,664,043

3,416,660

Interest payable and similar expenses

6

87,157

88,061

PROFIT BEFORE TAXATION

5,576,886

3,328,599

Tax on profit

7

604,075

698,250

PROFIT FOR THE FINANCIAL YEAR

4,972,811

2,630,349

OTHER COMPREHENSIVE INCOME

Purchase of own shares

(4,184,530

)

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(4,184,530

)

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

788,281

2,630,349

Profit attributable to:

Owners of the parent

4,972,811

2,630,349

Total comprehensive income attributable to:

Owners of the parent

788,281

2,630,349

FIXED ASSETS

Intangible assets

10

2,241,340

2,545,705

Tangible assets

11

2,025,895

1,889,008

Investments

12

-

-

4,267,235

4,434,713

CURRENT ASSETS

Stocks

13

450,125

547,244

Debtors

14

4,181,949

5,972,702

Cash at bank and in hand

2,029,118

3,274,943

6,661,192

9,794,889

CREDITORS

Amounts falling due within one year

15

5,114,984

7,747,046

NET CURRENT ASSETS

1,546,208

2,047,843

TOTAL ASSETS LESS CURRENT LIABILITIES

5,813,443

6,482,556

CREDITORS

Amounts falling due after more than one year

16

(1,974,500

)

(2,437,000

)

PROVISIONS FOR LIABILITIES

18

(95,835

)

(90,259

)

NET ASSETS

3,743,108

3,955,297

CAPITAL AND RESERVES

Called up share capital

19

641

1,111

Share premium

20

243,000

243,000

Capital redemption reserve

20

470

-

Retained earnings

20

3,498,997

3,711,186

SHAREHOLDERS' FUNDS

3,743,108

3,955,297

The financial statements were approved by the Board of Directors on 21 June 2019 and were signed on its behalf by:

M Madsen - Director

FIXED ASSETS

Intangible assets

10

1,139,825

1,367,792

Tangible assets

11

1,237,014

1,130,866

Investments

12

1,614,537

1,614,537

3,991,376

4,113,195

CURRENT ASSETS

Stocks

13

271,873

271,139

Debtors

14

5,981,424

7,543,603

Cash at bank and in hand

1,740,073

2,442,038

7,993,370

10,256,780

CREDITORS

Amounts falling due within one year

15

6,549,737

8,866,072

NET CURRENT ASSETS

1,443,633

1,390,708

TOTAL ASSETS LESS CURRENT LIABILITIES

5,435,009

5,503,903

CREDITORS

Amounts falling due after more than one year

16

(1,974,500

)

(2,437,000

)

PROVISIONS FOR LIABILITIES

18

(96,229

)

(92,549

)

NET ASSETS

3,364,280

2,974,354

CAPITAL AND RESERVES

Called up share capital

19

641

1,111

Share premium

20

243,000

243,000

Capital redemption reserve

20

470

-

Retained earnings

20

3,120,169

2,730,243

SHAREHOLDERS' FUNDS

3,364,280

2,974,354

Company's profit for the financial year

5,574,926

2,354,307

The financial statements were approved by the Board of Directors on 21 June 2019 and were signed on its behalf by:

M Madsen - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2017

1,111

1,080,837

243,000

-

1,324,948

Changes in equity

Total comprehensive income

-

2,630,349

-

-

2,630,349

Balance at 31 December 2017

1,111

3,711,186

243,000

-

3,955,297

Changes in equity

Issue of share capital

(470

)

-

-

-

(470

)

Dividends

-

(1,000,000

)

-

-

(1,000,000

)

Total comprehensive income

-

787,811

-

470

788,281

Balance at 31 December 2018

641

3,498,997

243,000

470

3,743,108

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2017

1,111

375,936

243,000

-

620,047

Changes in equity

Total comprehensive income

-

2,354,307

-

-

2,354,307

Balance at 31 December 2017

1,111

2,730,243

243,000

-

2,974,354

Changes in equity

Issue of share capital

(470

)

-

-

-

(470

)

Dividends

-

(1,000,000

)

-

-

(1,000,000

)

Total comprehensive income

-

1,389,926

-

470

1,390,396

Balance at 31 December 2018

641

3,120,169

243,000

470

3,364,280

Cash flows from operating activities

Cash generated from operations

1

5,721,982

3,166,740

Interest paid

(87,157

)

(88,061

)

Tax paid

(915,577

)

(589,543

)

Net cash from operating activities

4,719,248

2,489,136

Cash flows from investing activities

Purchase of tangible fixed assets

(236,440

)

(1,356,369

)

Sale of tangible fixed assets

5,700

517,233

Interest received

13,167

480

Net cash from investing activities

(217,573

)

(838,656

)

Cash flows from financing activities

Repayment of loans

(562,500

)

-

Purchase of own shares

(4,185,000

)

-

Equity dividends paid

(1,000,000

)

-

Net cash from financing activities

(5,747,500

)

-

(Decrease)/increase in cash and cash equivalents

(1,245,825

)

1,650,480

Cash and cash equivalents at beginning of year

2

3,274,943

1,624,463

Cash and cash equivalents at end of year

2

2,029,118

3,274,943

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2018

2017

£

£

Profit before taxation

5,576,886

3,328,599

Depreciation charges

403,917

409,958

Profit on disposal of fixed assets

(5,700

)

(8,776

)

Finance costs

87,157

88,061

Finance income

(13,167

)

(480

)

6,049,093

3,817,362

Decrease/(increase) in stocks

97,119

(96,257

)

Decrease/(increase) in trade and other debtors

1,790,753

(2,852,563

)

(Decrease)/increase in trade and other creditors

(2,214,983

)

2,298,198

Cash generated from operations

5,721,982

3,166,740

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 31 December 2018

31.12.18

1.1.18

£

£

Cash and cash equivalents

2,029,118

3,274,943

Year ended 31 December 2017

31.12.17

1.1.17

£

£

Cash and cash equivalents

3,274,943

1,624,463

1.	STATUTORY INFORMATION

Emergency One (U.K.) 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.

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 accounts consolidate the results of the company and its subsidiary undertakings, Emergency One

Limited, Cyclerate Limited and Clan Tools & Plant Limited, drawn up to 31 December each year. No separate

profit and loss account is presented for Emergency One (UK) Limited as permitted by Section 408 of the

Companies Act 2006.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

In respect of long-term contracts, turnover is recognised when the outcome of the contract is certain.

Goodwill

Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any excess of the fair

value of the consideration given over the fair value of the identifiable assets and liabilities acquired, is capitalised

and written off on a straight line basis over its estimated remaining useful economic life, currently assessed as 20

years. Provision is made for any impairment.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

not provided

Plant and machinery

-

10% on cost

Fixtures and fittings

-

10% on cost

Motor vehicles

-

25% on cost

At each balance sheet date the company reviews the carrying amount of its tangible fixed assets to determine

whether there is any indication that any impairment loss exists.

No depreciation is charged on freehold property as the directors consider the building to have a life of more than

50 years. This is viewed as sufficient reasoning for non-depreciation, according to FRS 102 section 17.

Stocks

Stocks are valued at the lower of cost and expected selling price less costs to complete.

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.