Eric Gillie Limited - Accounts to registrar (filleted) - small 18.2

ERIC GILLIE LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2021

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Chartered Accountants' Report

9

DIRECTORS:

E T Gillie

Miss P E Gillie

M J Gillie

SECRETARY:

Miss P E Gillie

REGISTERED OFFICE:

Potsclose

Kelso

Roxburghshire

TD5 8BN

REGISTERED NUMBER:

SC056801 (Scotland)

ACCOUNTANTS:

JRW

Chartered Accountants

19 Buccleuch Street

Hawick

Roxburghshire

TD9 0HL

FIXED ASSETS

Tangible assets

4

745,096

783,047

CURRENT ASSETS

Stocks

2,202

1,917

Debtors

5

58,130

53,611

Cash at bank and in hand

13,721

70,086

74,053

125,614

CREDITORS

Amounts falling due within one year

6

233,693

268,321

NET CURRENT LIABILITIES

(159,640

)

(142,707

)

TOTAL ASSETS LESS CURRENT LIABILITIES

585,456

640,340

CREDITORS

Amounts falling due after more than one year

7

(223,992

)

(312,969

)

PROVISIONS FOR LIABILITIES

(129,250

)

(135,500

)

NET ASSETS

232,214

191,871

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

232,114

191,771

SHAREHOLDERS' FUNDS

232,214

191,871

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 2021 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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 23rd May 2022 and were signed on its behalf by:

E T Gillie - Director

M J Gillie - Director

1.	STATUTORY INFORMATION

Eric Gillie 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 Company 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The directors have considered the potential impact of the current Covid-19 pandemic on the business and are satisfied that the Company has sufficient cash reserves to meet all financial obligations for the foreseeable future. The directors have also indicated that they will provide the required support to allow the company to continue to trade for the foreseeable future. The Accounts have therefore been prepared on the going concern basis.

Turnover

The company provides haulage contracting and carriage of goods and livestock. Turnover represents the value, net of value added tax and discounts, of work carried out in respect of services provided to customers. Revenue is recognised in the accounting period in which the services are rendered when the outcome of the contract can be measured reliably.

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

-

4% on cost

Plant and machinery

-

25% on reducing balance

Motor vehicles

-

7.5% 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 assets

Basic financial assets, including trade and other debtors and bank balances, are initially recognised at transaction price.

At the end of each reporting period financial assets measured at cost are assessed for evidence of impairment. Any impairment loss is recognised in the Income Statement.

Financial assets are derecognised when the contractual rights to the cash flows from the asset expire or are settled.

Financial liabilities

Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. These are classed as current liabilities as payment is due within one year or less. If not they are presented as non-current liabilities.

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

Taxation

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

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 10 (2020 - 10 ) .

4.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Motor

property

machinery

vehicles

Totals

£

£

£

£

COST

At 1st January 2021

100,207

46,728

946,898

1,093,833

Additions

-

9,819

52,500

62,319

Disposals

-

-

(46,250

)

(46,250

)

At 31st December 2021

100,207

56,547

953,148

1,109,902

DEPRECIATION

At 1st January 2021

54,212

42,358

214,216

310,786

Charge for year

3,749

2,007

53,872

59,628

Eliminated on disposal

-

-

(5,608

)

(5,608

)

At 31st December 2021

57,961

44,365

262,480

364,806

NET BOOK VALUE

At 31st December 2021

42,246

12,182

690,668

745,096

At 31st December 2020

45,995

4,370

732,682

783,047

During 2020 the directors reviewed the accounting estimates used in previous years in relation to the depreciation of the company's motor vehicles. Information currently available showed that the motor vehicles had a longer expected useful life than previously estimated. The carrying amount of those assets had been adjusted accordingly and the depreciation rate reduced from 16.67% reducing balance to 7.5% reducing balance for 2020 and future years. The effect of the change was to increase the brought forward carrying amount of motor vehicles by £158,718 and the depreciation charge in 2020 was £46,156 less than it would have been had the previous depreciation rate been applied.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

26,069

17,475

Other debtors

32,061

36,136

58,130

53,611

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

54,874

59,498

Hire purchase contracts

93,112

130,473

Trade creditors

25,305

22,399

Taxation and social security

49,399

43,620

Other creditors

11,003

12,331

233,693

268,321

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans

34,167

44,167

Hire purchase contracts

189,825

268,802

223,992

312,969

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

-

4,167

8.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Bank overdrafts

44,874

53,665

Hire purchase contracts

282,937

399,275

327,811

452,940

Bank borrowing is secured with a bond and floating charge over the whole assets of the company, a first standard security over the dwellinghouse and barn at Potsclose Cottage, Kelso and a personal guarantee for £77,000 by Eric & Jane Gillie, and a Government Guarantee for £50,000.

Hire purchase contracts are secured against the assets to which they relate together with a personal guarantee by Eric Gillie for £902,688 and a personal guarantee by Michael Gillie for £266,280.

9.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31st December 2021 and 31st December 2020:

2021

2020

£

£

E T Gillie

Balance outstanding at start of year

30,614

43,891

Amounts advanced

30,039

31,723

Amounts repaid

(47,100

)

(45,000

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

13,553

30,614

M J Gillie

Balance outstanding at start of year

46

46

Amounts advanced

124

-

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

170

46

These loans are unsecured, interest has been charged at the official rates published by HMRC and they are repayable on demand.

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Eric Gillie Limited for the year ended 31st December 2021 which comprise the Statement of Income and Retained Earnings, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of ICAS, we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/accountspreparationguidance.

This report is made solely to the Board of Directors of Eric Gillie Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Eric Gillie Limited and state those matters that we have agreed to state to the Board of Directors of Eric Gillie Limited, as a body, in this report in accordance with the requirements of ICAS as detailed at http://www.icas.com/accountspreparationguidance. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Eric Gillie Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Eric Gillie Limited. You consider that Eric Gillie Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Eric Gillie Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

JRW

Chartered Accountants

19 Buccleuch Street

Hawick

Roxburghshire

TD9 0HL

23rd May 2022