Limehillock Quarries Ltd. - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC294085 (Scotland)

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

FOR

LIMEHILLOCK QUARRIES LTD.

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

C M Murray

Mrs J Murray

R C Murray

SECRETARY:

Mrs J Murray

REGISTERED OFFICE:

9 Glasgow Road

Paisley

PA1 3QS

REGISTERED NUMBER:

SC294085 (Scotland)

AUDITORS:

JMT Audit Ltd

Chartered Accountants

Statutory Auditor

9 Glasgow Road

PAISLEY

Renfrewshire

PA1 3QS

BANKERS:

Handelsbanken plc

First Floor

Camas House

Fairways Business Park

Inverness

IV2 6AA

FIXED ASSETS

3,376,652

Tangible assets

5

2,934,560

23,900

Investments

6

200

3,400,552

2,934,760

CURRENT ASSETS

405,182

Stocks

497,923

1,022,846

Debtors

7

821,164

447,577

Cash at bank

548

1,875,605

1,319,635

CREDITORS

1,679,929

Amounts falling due within one year

8

1,273,773

195,676

NET CURRENT ASSETS

45,862

3,596,228

TOTAL ASSETS LESS CURRENT LIABILITIES

2,980,622

CREDITORS

(1,133,864

)

Amounts falling due after more than one year

9

(696,662

)

(210,634

)

PROVISIONS FOR LIABILITIES

12

(205,093

)

2,251,730

NET ASSETS

2,078,867

CAPITAL AND RESERVES

5,000

Called up share capital

13

5,000

2,246,730

Retained earnings

2,073,867

2,251,730

SHAREHOLDERS' FUNDS

2,078,867

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 Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors on 27 May 2019 and were signed on its behalf by:

C M Murray - Director

R C Murray - Director

1.	STATUTORY INFORMATION

Limehillock Quarries Ltd. is a private company, limited by shares , registered in Scotland. The company's

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

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

2.	STATEMENT OF COMPLIANCE

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The significant accounting policies applied in the preparation of these financial statements are set out below.

These policies have been consistently applied to all years presented unless otherwise stated.

Preparation of consolidated financial statements

The financial statements contain information about Limehillock Quarries Ltd. as an individual company and do

not contain consolidated financial information as the parent of a group. The company is exempt under Section

400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its

subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent,

Colin Murray Development Limited, 9 Glasgow Road, Paisley, PA1 3QS.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

The preparation of financial statements requires management to make judgements, estimates and assumptions

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

expenses.The estimates and underlying 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 assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised in the

period in which the estimate is revised and in any future periods affected.

The key areas of judgement that the directors have made in applying accounting policies and key sources of

estimation uncertainty comprise:

- Depreciation

- Recoverability of debtors

- Stock

Depreciation rates are kept the same as prior years, but reviewed on an annual basis to ensure they reflect the

useful life of the asset.

The directors consider the recoverability of debtors, based on their judgement and knowledge of the industry

and the age of the unpaid debtor and terms of trade, and provide accordingly.

Stock is valued by the directors using established industry standards and their judgement and knowledge of the

industry. Provision is made accordingly in respect of any obsolete stock.

Turnover

Turnover represents the total invoice value, less credit notes, excluding value added tax, of sales made in the

period.

Revenue is recognised when goods or services are received by the customer and the risks and rewards of

ownership have been passed to them. Revenue from the hire of products and services is recognised at the time

the product is supplied or services have been rendered and accepted. In respect of contracts for ongoing services

and quarry sales, turnover represents the value of work done in the year, including estimates of amounts not

invoiced. Revenue is measured at the fair value of consideration received or receivable for goods and services

provided in the normal course of business, net of discounts and value added tax.

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 or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

15% on reducing balance

Computer equipment

-

33% on cost

Tangible fixed assets held for the company's own use are stated at cost less accumulated depreciation and

accumulated impairment losses.

Assets held under finance leases are depreciated in the same way as owned assets

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

there is any indication that any items have suffered an impairment loss. If any such indication exists, the

recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any.

Stocks

Stocks are valued at the lower of cost and expected selling price less costs to complete and sell, after making

due allowance for obsolete or slow moving items.

When stocks are sold, the carrying amount of these stocks is recognised as an expense in the period in which the

related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of

stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any

reversal of any write-down of stocks is recognised as a reduction on the amount of stocks recognised as an

expense in the period in which the reversal occurs.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less impairment. Provision is made against the

carrying value when the directors consider that there has been a permanent diminution in value.

Taxation

Taxation represents the sum of tax currently payable and deferred tax on a non discounted basis.

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.

Deferred tax is recognised on all timing differences between the carrying amounts of assets and liabilities in the

financial statements and the corresponding tax bases used in the computation of taxable profit. The carrying

amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is

no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be

recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period which the

liability is settled or the asset is realised, based on tax rates (and tax laws) that have been enacted or

substantively enacted by the end of the reporting period.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is shorter.

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.

Rentals paid under operating leases are charged to 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.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at

transaction price. Any losses arising from impairment are recognised in the profit and loss account in other

administrative expenses.

Cash & cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks,

other short-term liquid investments with original maturities of three months or less and bank overdrafts.

Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments

The company mainly enters into basic financial instrument transactions that result in the recognition of financial

assets and liabilities like trade and other debtors, creditors, loans from banks and other third parties and loans to

and from related parties.

Debt instruments that are payable or receivable within one year, typically trade debtors or creditors, are

measured, initially and subsequently at the undiscounted amount of the cash or other consideration expected to

be paid or received.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for

objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is

recognised in the statement of comprehensive income.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an

enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise

the asset settle the liability simultaneously.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 37 (2017 - 39 ) .

5.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

Totals

machinery

fittings

vehicles

equipment

£

£

£

£

£

COST

At 1 January 2018

5,439,905

5,084,461

8,190

345,038

2,216

Additions

573,068

556,256

-

14,200

2,612

Disposals

(757,200

)

(757,200

)

-

-

-

At 31 December 2018

5,255,773

4,883,517

8,190

359,238

4,828

DEPRECIATION

At 1 January 2018

2,063,253

1,874,039

4,215

183,208

1,791

Charge for year

454,376

427,127

596

25,557

1,096

Eliminated on disposal

(196,416

)

(196,416

)

-

-

-

At 31 December 2018

2,321,213

2,104,750

4,811

208,765

2,887

NET BOOK VALUE

At 31 December 2018

2,934,560

2,778,767

3,379

150,473

1,941

At 31 December 2017

3,376,652

3,210,422

3,975

161,830

425

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

Motor

Totals

machinery

vehicles

£

£

£

COST

At 1 January 2018

3,512,526

3,399,995

112,531

Additions

529,750

529,750

-

Disposals

(575,500

)

(575,500

)

-

At 31 December 2018

3,466,776

3,354,245

112,531

DEPRECIATION

At 1 January 2018

843,900

805,455

38,445

Charge for year

358,151

347,039

11,112

Eliminated on disposal

(104,388

)

(104,388

)

-

At 31 December 2018

1,097,663

1,048,106

49,557

NET BOOK VALUE

At 31 December 2018

2,369,113

2,306,139

62,974

At 31 December 2017

2,668,626

2,594,540

74,086

6.	FIXED ASSET INVESTMENTS

Shares in

group

Other

Totals

undertakings

investments

£

£

£

COST

At 1 January 2018

and 31 December 2018

30,900

30,800

100

PROVISIONS

At 1 January 2018

7,000

7,000

-

Impairments

23,700

23,700

-

At 31 December 2018

30,700

30,700

-

NET BOOK VALUE

At 31 December 2018

200

100

100

At 31 December 2017

23,900

23,800

100

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.18

31.12.17

£

£

Trade debtors

632,126

800,649

Amounts owed by group undertakings

12,507

1,508

Amounts recoverable on contract

36,147

53,952

Other debtors

87,427

110,962

Prepayments

52,957

55,775

821,164

1,022,846

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.18

31.12.17

£

£

Bank loans and overdrafts

108,932

39,000

Hire purchase contracts (see note 10)

617,737

683,539

Aggregate Tax

12,154

13,426

Trade creditors

164,301

577,738

Amounts owed to group undertakings

23,007

12,636

Corporation Tax

-

36,370

Social security and other taxes

29,293

41,181

VAT

95,622

136,321

Accruals and deferred income

222,727

139,718

1,273,773

1,679,929

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.18

31.12.17

£

£

Bank loans - 1-2 years

39,000

39,000

Bank loans - 2-5 years

273,000

312,000

Hire purchase contracts (see note 10)

384,662

782,864

696,662

1,133,864

10.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

31.12.18

31.12.17

£

£

Net obligations repayable:

Within one year

617,737

683,539

Between one and five years

384,662

782,864

1,002,399

1,466,403

Non-cancellable operating

leases

31.12.18

31.12.17

£

£

Within one year

158,281

45,498

Between one and five years

199,553

457,015

In more than five years

233,370

256,090

591,204

758,603

11.	SECURED DEBTS

The following secured debts are included within creditors:

31.12.18

31.12.17

£

£

Bank overdraft

69,932

-

Bank loans

351,000

390,000

Hire purchase contracts

1,002,399

1,466,403

1,423,331

1,856,403

The company, together with Las Plant Hire Ltd and Colin Murray Development Ltd, has entered into a group

overdraft facility and business term loans, provided by Svenska Handelsbanken Ab (publ).

Each of the companies has granted a first and only Bond and Floating charge in favour of Svenska

Handelsbanken AB (publ) as security for those advances.

In addition:

-

there is also an unlimited intercompany composite guarantee granted by this company, Las Plant Hire Ltd and Colin Murray Development Ltd in respect of each company's borrowing from the Bank.

-

The Bank holds a first standard security granted by Colin Murray Development Ltd over land which that company owns.

Obligations under hire purchase contracts are secured over the assets to which they relate.

12.	PROVISIONS FOR LIABILITIES

31.12.18

31.12.17

£

£

Deferred tax

205,093

210,634

Deferred

tax

£

Balance at 1 January 2018

210,634

Credit adjustment

(5,541

)

Balance at 31 December 2018

205,093

The provision for deferred taxation is in respect of accelerated capital allowances.

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.18

31.12.17

value:

£

£

5,000

Ordinary

£1

5,000

5,000

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

The Report of the Auditors was unqualified.

James Hamilton (Senior Statutory Auditor)

for and on behalf of JMT Audit Ltd

15.	CONTINGENT LIABILITIES

The company has agreed to provide three performance bonds in respect of its obligations under three quarry

leases. The company has paid single instalment insurance premiums to reputable providers and executed Bonds

to cover its obligations totalling £134,320.

16.	CAPITAL COMMITMENTS

31.12.18

31.12.17

£

£

Contracted but not provided for in the

financial statements

455,500

346,000

Prior to the year end, the company had confirmed the availability of funding to acquire the above capital

equipment, which was delivered after the year end.

17.	ULTIMATE CONTROLLING PARTY

The immediate parent of the company is Colin Murray Development Limited.

The ultimate parent and the largest and smallest group financial statements that consolidate this company is

Colin Murray Development Limited, a company registered in Scotland and whose registered office is 9 Glasgow

Road, Paisley, PA1 3QS.

C M Murray and Mrs J Murray indirectly control the company, as a result of holding the majority of the issued

share capital in the parent company between them.