Wm Hamilton & Sons Limited - Limited company accounts 23.1

REGISTERED NUMBER: SC295966 (Scotland)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 March 2023

for

Wm Hamilton & Sons Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

Mr D Graham

Mr R T Hamilton

Mr G R Hamilton

Mr D W Hamilton

SECRETARY:

Mr D Graham

REGISTERED OFFICE:

Dovesdale Farm

Carlisle Road

Stonehouse

Lanarkshire

ML9 3PR

REGISTERED NUMBER:

SC295966 (Scotland)

AUDITORS:

Graham & Co. (Accountants) Limited

76 Dumbarton Road

Clydebank

Glasgow

G81 1UG

The directors present their strategic report of the company and the group for the year ended 31 March 2023.

REVIEW OF BUSINESS

The group continues to focus on its core activities and the directors are satisfied with the turnover and the level of profitability returned for the year.

Turnover increased by 18.9% to £21,779,836. Cost of sales increased by 17.4% resulting in gross margins of 44.9% (2022 - 44.2%).

An increase in overheads of 12.7% has resulted in operating profit margin of 37.3% (2022 - 36.1%).

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties affecting the business include the following:

Commercial relationships: a significant part of turnover is generated from the construction sector and levels of activity within this sector could impact on turnover and profitability.

Health and Safety: management strive to provide a safe working environment at all times. Various Health and Safety accreditations are used to assist management including ISO9001, ISO14001, ISO45001 as well as other construction and haulage related memberships.

Environmental impact: the group operate inert landfill and recycling facilities and are governed by various SEPA permits and licenses. Should there be any changes in the legislation governing this environment this could impact on the level of activity generated from the current operations within this sector.

Credit risk: the group's credit risk is primarily attributed to its trade and other debtors. Strict credit control procedures are adopted to minimise exposure to credit risk.

FUTURE OUTLOOK

The group continues to focus on its core activities. It continues to invest in its workforce and fleet of modern vehicles and with few other financial commitments and good liquidity the group is in a positive position to react quickly to changes in the sector it operates within.

KEY PERFORMANCE INDICATORS

The groups key performance indicators are expressed within the review of the business above.

ON BEHALF OF THE BOARD:

Mr D Graham - Director

18 August 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023.

PRINCIPAL ACTIVITIES

The principal activities of the group in the year under review were those of haulage contractors and plant hire.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2023 will be £ 1,050,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

Mr D Graham

Mr R T Hamilton

Mr G R Hamilton

Mr D W Hamilton

Other changes in directors holding office are as follows:

Mr D B Hamilton - resigned 28 December 2022

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 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.

AUDITORS

The auditors, Graham & Co. (Accountants) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr D Graham - Director

18 August 2023

Opinion

We have audited the financial statements of Wm Hamilton & Sons Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other 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 March 2023 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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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 this gives rise to a material misstatement in the financial statements themselves. 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the group and the industry in which it operates and considered the risks of acts by management which were contrary to applicable laws and regulations, including fraud.

We focused on laws and regulations that could give rise to a material misstatement in the financial statements. Our tests included , but were not limited to:

- Agreement of the financial statement disclosures to underlying supporting documentation;

- Enquiries of management regarding known or suspected instances of non compliance;

- Obtaining an understanding of the control environment in place to prevent and detect irregularities.

- Auditing the risk of management over-ride of controls through testing and review of journal entries and other

adjustments for appropriateness.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentation or collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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.

Kenneth Mackenzie (Senior Statutory Auditor)

for and on behalf of Graham & Co. (Accountants) Limited

76 Dumbarton Road

Clydebank

Glasgow

G81 1UG

18 August 2023

TURNOVER

3

21,779,836

18,318,550

Cost of sales

11,994,305

10,218,625

GROSS PROFIT

9,785,531

8,099,925

Administrative expenses

1,686,458

1,495,001

8,099,073

6,604,924

Other operating income

24,008

22,134

OPERATING PROFIT

5

8,123,081

6,627,058

Interest receivable and similar income

104,090

2,136

8,227,171

6,629,194

Interest payable and similar expenses

6

128

709

PROFIT BEFORE TAXATION

8,227,043

6,628,485

Tax on profit

7

1,847,552

1,158,229

PROFIT FOR THE FINANCIAL YEAR

6,379,491

5,470,256

FIXED ASSETS

Tangible assets

10

12,291,456

13,200,607

Investments

11

-

-

12,291,456

13,200,607

CURRENT ASSETS

Stocks

12

239,764

273,024

Debtors

13

6,372,089

5,914,057

Cash at bank

2,771,435

8,380,294

9,383,288

14,567,375

CREDITORS

Amounts falling due within one year

14

3,121,980

2,074,630

NET CURRENT ASSETS

6,261,308

12,492,745

TOTAL ASSETS LESS CURRENT LIABILITIES

18,552,764

25,693,352

PROVISIONS FOR LIABILITIES

15

1,989,674

1,495,253

NET ASSETS

16,563,090

24,198,099

CAPITAL AND RESERVES

Called up share capital

16

790

1,318

Share premium

17

239,684

239,684

Capital redemption reserve

17

528

-

Retained earnings

17

16,322,088

23,957,097

SHAREHOLDERS' FUNDS

16,563,090

24,198,099

The financial statements were approved by the Board of Directors and authorised for issue on 18 August 2023 and were signed on its behalf by:

Mr D Graham - Director

FIXED ASSETS

Tangible assets

10

12,291,456

13,200,607

Investments

11

500,000

500,000

12,791,456

13,700,607

CURRENT ASSETS

Stocks

12

239,764

273,024

Debtors

13

6,270,871

6,006,378

Cash at bank

2,652,015

7,775,892

9,162,650

14,055,294

CREDITORS

Amounts falling due within one year

14

3,403,846

2,037,976

NET CURRENT ASSETS

5,758,804

12,017,318

TOTAL ASSETS LESS CURRENT LIABILITIES

18,550,260

25,717,925

PROVISIONS FOR LIABILITIES

15

1,989,674

1,495,253

NET ASSETS

16,560,586

24,222,672

CAPITAL AND RESERVES

Called up share capital

16

790

1,318

Share premium

17

239,684

239,684

Capital redemption reserve

17

528

-

Retained earnings

17

16,319,584

23,981,670

SHAREHOLDERS' FUNDS

16,560,586

24,222,672

Company's profit for the financial year

6,352,414

5,410,227

The financial statements were approved by the Board of Directors and authorised for issue on 18 August 2023 and were signed on its behalf by:

Mr D Graham - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 April 2021

1,318

19,486,841

239,684

-

19,727,843

Changes in equity

Dividends

-

(1,000,000

)

-

-

(1,000,000

)

Total comprehensive income

-

5,470,256

-

-

5,470,256

Balance at 31 March 2022

1,318

23,957,097

239,684

-

24,198,099

Changes in equity

Issue of share capital

(528

)

-

-

-

(528

)

Dividends

-

(1,050,000

)

-

-

(1,050,000

)

Total comprehensive income

-

6,379,491

-

-

6,379,491

Purchase of own shares

-

(12,964,500

)

-

528

(12,963,972

)

Balance at 31 March 2023

790

16,322,088

239,684

528

16,563,090

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 April 2021

1,318

19,571,443

239,684

-

19,812,445

Changes in equity

Dividends

-

(1,000,000

)

-

-

(1,000,000

)

Total comprehensive income

-

5,410,227

-

-

5,410,227

Balance at 31 March 2022

1,318

23,981,670

239,684

-

24,222,672

Changes in equity

Issue of share capital

(528

)

-

-

-

(528

)

Dividends

-

(1,050,000

)

-

-

(1,050,000

)

Total comprehensive income

-

6,352,414

-

-

6,352,414

Purchase of own shares

-

(12,964,500

)

-

528

(12,963,972

)

Balance at 31 March 2023

790

16,319,584

239,684

528

16,560,586

Cash flows from operating activities

Cash generated from operations

1

9,042,988

7,776,443

Interest paid

(128

)

(709

)

Tax paid

(116,850

)

(1,136,255

)

Net cash from operating activities

8,926,010

6,639,479

Cash flows from investing activities

Purchase of tangible fixed assets

(1,782,637

)

(3,962,687

)

Sale of tangible fixed assets

1,406,250

1,327,750

Interest received

104,090

2,136

Net cash from investing activities

(272,297

)

(2,632,801

)

Cash flows from financing activities

Amount introduced by directors

1,186,283

4,603,833

Amount withdrawn by directors

(1,434,355

)

(5,625,565

)

Share issue

(528

)

-

Share buyback

(12,963,972

)

-

Equity dividends paid

(1,050,000

)

(1,000,000

)

Net cash from financing activities

(14,262,572

)

(2,021,732

)

(Decrease)/increase in cash and cash equivalents

(5,608,859

)

1,984,946

Cash and cash equivalents at beginning of year

2

8,380,294

6,395,348

Cash and cash equivalents at end of year

2

2,771,435

8,380,294

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

31.3.23

31.3.22

£

£

Profit before taxation

8,227,043

6,628,485

Depreciation charges

1,847,745

1,709,364

Profit on disposal of fixed assets

(562,207

)

(524,719

)

Finance costs

128

709

Finance income

(104,090

)

(2,136

)

9,408,619

7,811,703

Decrease/(increase) in stocks

33,260

(157,048

)

(Increase)/decrease in trade and other debtors

(458,036

)

419,586

Increase/(decrease) in trade and other creditors

59,145

(297,798

)

Cash generated from operations

9,042,988

7,776,443

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 March 2023

31.3.23

1.4.22

£

£

Cash and cash equivalents

2,771,435

8,380,294

Year ended 31 March 2022

31.3.22

1.4.21

£

£

Cash and cash equivalents

8,380,294

6,395,348

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.22

Cash flow

At 31.3.23

£

£

£

Net cash

Cash at bank

8,380,294

(5,608,859

)

2,771,435

8,380,294

(5,608,859

)

2,771,435

Total

8,380,294

(5,608,859

)

2,771,435

1.	STATUTORY INFORMATION

Wm Hamilton & Sons 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 financial statements consolidate the financial statements of Wm Hamilton & Sons Limited and its subsidiary undertaking as drawn up to 31 March each year. The acquisition method of accounting has been adopted. Under this method the results of a subsidiary undertaking acquired or disposed of in the year are included in the consolidated profit and loss account from the date of acquisition or up to the date of disposal.

Significant judgements and estimates

In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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

-

at varying rates on cost and over period of licence

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and bank balances are initially measured at transaction price 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.

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, 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.

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. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 and services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year. 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Taxation

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

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the group.

An analysis of turnover by class of business is given below:

31.3.23

31.3.22

£

£

Haulage, plant hire and other

21,779,836

18,318,550

21,779,836

18,318,550

An analysis of turnover by geographical market is given below:

31.3.23

31.3.22

£

£

United Kingdom

21,779,836

18,318,550

21,779,836

18,318,550