Holmes Miller Ltd. - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC400828

HOLMES MILLER LTD.

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Page

Balance Sheet

1

Notes to the Financial Statements

3

FIXED ASSETS

Intangible assets

4

140,000

210,000

Tangible assets

5

871,601

931,033

1,011,601

1,141,033

CURRENT ASSETS

Debtors

6

1,772,000

1,533,384

Investments

7

751

751

Cash at bank and in hand

612,969

1,229,213

2,385,720

2,763,348

CREDITORS

Amounts falling due within one year

8

964,413

1,442,416

NET CURRENT ASSETS

1,421,307

1,320,932

TOTAL ASSETS LESS CURRENT LIABILITIES

2,432,908

2,461,965

CREDITORS

Amounts falling due after more than one year

9

(62,500

)

(275,348

)

PROVISIONS FOR LIABILITIES

(20,528

)

(32,410

)

NET ASSETS

2,349,880

2,154,207

CAPITAL AND RESERVES

Called up share capital

1,083

972

Share premium

200,500

-

Fair value reserve

84,000

84,000

Capital redemption reserve

63

42

Retained earnings

2,064,234

2,069,193

SHAREHOLDERS' FUNDS

2,349,880

2,154,207

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2020 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 20 October 2020 and were signed on its behalf by:

C M Houston - Director

1.	STATUTORY INFORMATION

Holmes Miller Ltd. is a private company, limited by shares, registered in Scotland. The company's registered office is 89 Minerva Street, Glasgow, G3 8LE.

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 as modified by the revaluation of certain fixed assets.

The financial statements have been prepared on a going concern basis. The validity of this is dependent on the financial performance of the company following the restrictions and other conditions placed throughout the UK due to the Covid 19 pandemic. After due consideration on the potential impact and future commitments, the directors consider it appropriate to prepare the financial statements on a going concern basis.

Turnover

Turnover represents the invoice value of services rendered during the year, excluding value added tax. The company's policy is to recognise a sale when substantively all of the risks and rewards in connection with the services have been passed to the buyer. Where the substance of a contract is that the company's contractual obligations are performed gradually over time, revenue is recognised as contract activity progresses to reflect the company's partial performance of its contractual obligations.

Goodwill

Goodwill, representing the amount established on incorporation of The Holmes Partnership in 2011 and the acquisition of the assets of LRK Associates Ltd in 2018, is being amortised evenly over its estimated useful life of ten years although there was no amortisation in the period of acquisition. Goodwill is reviewed for impairment at the end of the first full financial year following each acquisition and subsequently as and when necessary if circumstances emerge that indicate that the carrying value may not be recoverable.

Tangible fixed assets

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

Land and buildings - 2% straight line

Plant and machinery etc - 25% on cost

Land and buildings is carried at its revalued amount, being fair value at the date of valuation less subsequent depreciation and impairment losses.

Any revaluation increase in the carrying amount of land and buildings is recognised in other comprehensive income and included in a revaluation reserve in equity, except to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss, in which case the increase is credited to profit and loss to the extent of the decrease previously expended. Decreases that offset previous increases to the same asset are charged to other comprehensive income and debited against revaluation reserve in equity; decreases exceeding the balance in revaluation reserve relating to an asset are recognised in profit or loss. Each year the difference between depreciation based on the revalued carrying amount of the asset recognised in profit or loss and depreciation based on the asset's original cost is transferred from revaluation reserve to retained earnings.

Land and buildings were revalued for the first time during the year ended 31 March 2017, whilst they were carried at cost in prior periods. No depreciation had been charged in prior years as in the opinion of the directors, the residual value was such that any depreciation arising would have been immaterial. The use of a policy of revaluation provides more relevant and reliable information about the value. As from 1 April 2017, land and buildings are written off over their estimated useful life of 50 years.

At each reporting date non-financial assets not carried at fair value, like goodwill and 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.

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 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 at 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.

Operating lease 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 company operates defined contribution pension schemes for directors and employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at 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 profit or loss.

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 and cash held at banks.

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.

Judgements

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 there to be none.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 60 (2019 - 58 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2019

and 31 March 2020

700,000

AMORTISATION

At 1 April 2019

490,000

Charge for year

70,000

At 31 March 2020

560,000

NET BOOK VALUE

At 31 March 2020

140,000

At 31 March 2019

210,000

5.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST OR VALUATION

At 1 April 2019

800,000

535,177

1,335,177

Additions

-

31,229

31,229

At 31 March 2020

800,000

566,406

1,366,406

DEPRECIATION

At 1 April 2019

32,000

372,144

404,144

Charge for year

16,000

74,661

90,661

At 31 March 2020

48,000

446,805

494,805

NET BOOK VALUE

At 31 March 2020

752,000

119,601

871,601

At 31 March 2019

768,000

163,033

931,033

The fair value of heritable property at 31 March 2020 has been arrived at on the basis of a valuation carried out on that date by the directors who are not professionally qualified valuers. The valuation was arrived at by reference to market evidence of transaction prices for similar properties in the location where the property is situated.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

935,382

794,351

Other debtors

836,618

739,033

1,772,000

1,533,384

7.	CURRENT ASSET INVESTMENTS

2020

2019

£

£

Unlisted investments

751

751

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts

82,500

82,500

Trade creditors

200,922

202,400

Taxation and social security

295,363

485,751

Other creditors

385,628

671,765

964,413

1,442,416

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Bank loans

62,500

145,000

Other creditors

-

130,348

62,500

275,348

10.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2020

2019

£

£

Within one year

-

42,210

11.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Bank loans and overdrafts

145,000

227,500

The bank loans and overdrafts are secured by a charge over the company's assets.

12.	CAPITAL COMMITMENTS

At the balance sheet date, the company has a capital commitment contracted for but not provided in the financial statements of £204,714 (2019 - £244,854) of which £82,287 (2019 - £82,287) is payable within one year.

13.	RELATED PARTY DISCLOSURES

At the balance sheet date the company owed £12,596 (2019 - £130,348) to the directors. The amount is included in creditors and is interest free with no fixed repayment terms.

At the balance sheet date the company was owed £348,948 (2019 - £301,421) from Holmes Miller International Limited, a company in which Holmes Miller Ltd. is a majority shareholder and which is controlled by the directors. The amount is included in debtors and is interest free with no fixed repayment terms.