James Ramsay (Glasgow) Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: SC011277

JAMES RAMSAY (GLASGOW) LIMITED

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Page

Balance Sheet

1

Notes to the Financial Statements

2

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

115,144

62,514

115,144

62,514

CURRENT ASSETS

Stocks

256,816

190,752

Debtors

6

3,303,992

2,701,030

Cash at bank and in hand

1,974,402

1,601,707

5,535,210

4,493,489

CREDITORS

Amounts falling due within one year

7

(2,897,103

)

(2,559,844

)

NET CURRENT ASSETS

2,638,107

1,933,645

TOTAL ASSETS LESS CURRENT LIABILITIES

2,753,251

1,996,159

PROVISIONS FOR LIABILITIES

(25,492

)

-

NET ASSETS

2,727,759

1,996,159

CAPITAL AND RESERVES

Called up share capital

2,000

2,000

Retained earnings

2,725,759

1,994,159

SHAREHOLDERS' FUNDS

2,727,759

1,996,159

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit & Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 31 October 2023 and were signed on its behalf by:

G Shepherd - Director

1.	STATUTORY INFORMATION

James Ramsay (Glasgow) Limited is a private company, limited by shares, registered in Scotland. The company's registered office is 35 Weardale Lane, Queenslie Industrial Estate, Glasgow, Scotland, G33 4JJ.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There were no material departures from that standard. The financial statements have been prepared under the historical cost convention.

Going concern

The current and future financial position of the company, including its cash flows and liquidity, have been considered by the directors.

Following their review, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. As a result, the directors consider that it is appropriate to prepare the financial statements on a going concern basis.

Significant judgements and estimates

The company considers on an annual basis the judgements that are made by management when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements. The directors consider that there are no such significant judgements.

In addition, in the application of the company's accounting policies, the directors are required to make estimates and assumptions about the carrying amounts 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. The estimates and underlying assumptions are reviewed on an ongoing basis.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

In preparing these financial statements, the directors have made the following estimates:

- The company estimates the outcome of its service contracts. This is normally measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion. Estimates of total contract costs are based on management's detailed budgets and projections. Where management judge the outcome of a contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable they will be recoverable.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenues from contracts for the provision of installation services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of the net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

For the purposes of impairment testing, goodwill is allocated to cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

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.

Short leasehold

-

20% on cost

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

20% on cost

Computer equipment

-

20% on cost

Tangible fixed assets are included in the balance sheet at cost less accumulated depreciation and accumulated impairment losses.

The capitalisation policy is a minimum spend of £200.

Impairment of tangible fixed assets

At each reporting date non-financial assets not carried at fair value, like plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher of value in use and the fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and where applicable, direct labour costs and those overheads that have been incurred in bringing stocks to their present location and condition.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans to and from related parties.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of future payments and subsequently, amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and trade creditors, are measured initially, and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received.

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in the profit and loss account.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown withing borrowings in current liabilities.

Taxation

Taxation represents the sum of tax currently payable and deferred tax. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

The charge for taxation for the period takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and laws enacted or substantively enacted by the balance sheet date.

With the exception of changes arising on the initial recognition of a business combination, the tax expense is

presented either in profit or loss, other comprehensive income or statement of changes in equity depending on the transaction that resulted in the tax expense.

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Leasing commitments

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

Pension costs and other post-retirement benefits

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

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 a 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.

Provisions

Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 74 (2022 - 66 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2022

and 31 March 2023

10,000

AMORTISATION

At 1 April 2022

and 31 March 2023

10,000

NET BOOK VALUE

At 31 March 2023

-

At 31 March 2022

-

5.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

leasehold

machinery

fittings

£

£

£

COST

At 1 April 2022

92,774

197,929

12,579

Additions

5,400

12,868

3,148

Disposals

-

(7,695

)

(1,898

)

At 31 March 2023

98,174

203,102

13,829

DEPRECIATION

At 1 April 2022

80,638

172,720

7,821

Charge for year

2,907

10,182

1,746

Eliminated on disposal

-

(7,695

)

(1,898

)

At 31 March 2023

83,545

175,207

7,669

NET BOOK VALUE

At 31 March 2023

14,629

27,895

6,160

At 31 March 2022

12,136

25,209

4,758

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 April 2022

37,935

39,409

380,626

Additions

48,700

10,893

81,009

Disposals

(37,935

)

(4,180

)

(51,708

)

At 31 March 2023

48,700

46,122

409,927

DEPRECIATION

At 1 April 2022

37,935

18,998

318,112

Charge for year

5,682

7,862

28,379

Eliminated on disposal

(37,935

)

(4,180

)

(51,708

)

At 31 March 2023

5,682

22,680

294,783

NET BOOK VALUE

At 31 March 2023

43,018

23,442

115,144

At 31 March 2022

-

20,411

62,514

6.

DEBTORS

2023

2022

£

£

Amounts falling due within one year:

Trade debtors

2,105,776

2,184,528

Amounts owed by group undertakings

895,785

244,680

Other debtors

249,700

271,822

3,251,261

2,701,030

Amounts falling due after more than one year:

Other debtors

52,731

-

Aggregate amounts

3,303,992

2,701,030

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade creditors

1,348,076

1,463,574

Amounts owed to group undertakings

53,460

16,606

Taxation and social security

588,724

443,938

Other creditors

906,843

635,726

2,897,103

2,559,844

8.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Mark McRae CA (Senior Statutory Auditor)

for and on behalf of Martin Aitken & Co Ltd

9.	CONTINGENT LIABILITIES

As security for 10% redeemable loan notes 2028 owed by the parent undertaking, James Ramsay Glasgow (Holdings) Ltd to Nevis Capital LLP, the company has granted a floating charge over its assets in favour of Nevis Capital LLP worth £843,333 (2022: £843,333).

10.	CAPITAL COMMITMENTS

2023

2022

£

£

Contracted but not provided for in the

financial statements

-

47,735

11.	OTHER FINANCIAL COMMITMENTS

As at 31 March 2023, the company has future operating lease commitments of £423,108 (2022: £320,227).

12.	RELATED PARTY DISCLOSURES

During the year, the company paid management charges of £140,947 (2022: £155,066) and dividends of £240,000 (2022: £450,000) to James Ramsay (Glasgow) Holdings Limited, its immediate parent company. As at 31 March 2023, a balance of £314,778 (2022: £244,680) was due by James Ramsay (Glasgow) Holdings Limited. Additionally, a balance of £nil (2022: £16,606) was owed by the company to James Ramsay (Glasgow) Holdings Limited. These loans are interest free and no repayments terms have been established.

During the year, the company, paid management charges of £204,341 (2022: £nil) to James Ramsay Holdings Limited, its ultimate parent company. As at 31 March 2023, a balance of £581,007 (2022: £nil) was due by James Ramsay Holdings Limited. This loan is interest free and no repayment terms have been established.

13.	FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

14.	ULTIMATE PARENT COMPANY

The company's immediate holding company is James Ramsay (Glasgow) Holdings Limited, a company registered in Scotland (Registration number SC455084) with its registered office at 35 Weardale Lane, Queenslie Industrial Estate, Glasgow, G33 4JJ. James Ramsay (Glasgow) Holdings Limited is a wholly owned subsidiary of James Ramsay Holdings Limited (Registration number SC752355) with the same registered address and this is the ultimate parent company.