M & H Carriers (Dundee) Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC210590 (Scotland)

Financial Statements for the Year Ended 31 March 2021

for

M & H CARRIERS (DUNDEE) LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

F J MacLean

M W Slater

SECRETARY:

Stronachs Secretaries Limited

REGISTERED OFFICE:

28 Albyn Place

Aberdeen

United Kingdom

AB10 1YL

REGISTERED NUMBER:

SC210590 (Scotland)

SENIOR STATUTORY AUDITOR:

Angus Cowie

AUDITOR:

Azets Audit Services

Chartered Accountants

Statutory Auditors

37 Albyn Place

Aberdeen

AB10 1JB

FIXED ASSETS

Tangible assets

4

494,726

266,639

CURRENT ASSETS

Debtors

5

848,672

373,881

Cash at bank and in hand

953,952

421,504

1,802,624

795,385

CREDITORS

Amounts falling due within one year

6

1,194,758

288,728

NET CURRENT ASSETS

607,866

506,657

TOTAL ASSETS LESS CURRENT LIABILITIES

1,102,592

773,296

CREDITORS

Amounts falling due after more than one year

7

(235,179

)

(93,411

)

PROVISIONS FOR LIABILITIES

(59,862

)

(23,999

)

NET ASSETS

807,551

655,886

CAPITAL AND RESERVES

Called up share capital

3

3

Retained earnings

807,548

655,883

807,551

655,886

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 21 December 2021 and were signed on its behalf by:

F J MacLean - Director

1.	STATUTORY INFORMATION

M & H Carriers (Dundee) 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

Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting

Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the

Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure

requirements of section 1A of FRS 102 have been applied other than where additional disclosure is

required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company.

Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the

revaluation of freehold properties and to include investment properties and certain financial instruments at

fair value. The principal accounting policies adopted are set out below.

The profit and loss format has been amended to take full advantage of the requirements under section 1A of FRS102. Directors do not view this to have an impact on the true and fair view of the accounts.

Going concern

The directors, having made due and careful enquiry and preparing forecasts, is of the opinion that the company has adequate working capital to execute its operations over the next 12 months. The directors therefore have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.

In common with most businesses the company is facing issues in respect of the COVID-19 pandemic. This is an ongoing situation and the company is adopting a strategy to manage the everchanging situation as effectively as possible.

The directors are satisfied that these events do not affect the company's ability to continue as a going concern and this basis is appropriate for the preparation of the accounts.

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.

Plant and machinery

-

25% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale

proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to

determine whether there is any indication that those assets have suffered an impairment loss. If any such

indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the

impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset,

the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in

use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that

reflects current market assessments of the time value of money and the risks specific to the asset for

which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying

amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount.

An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a

revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have

ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or

cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the

increased carrying amount does not exceed the carrying amount that would have been determined had no

impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an

impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and 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.

Government grants

Government grants are recognised in other income on the systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.

Financial instruments

The company 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 company's balance sheet when the company becomes party to

the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when

there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a

net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at

transaction price including transaction costs 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.

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 company 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 or 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 or less. 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.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

Dividends payable on equity instruments are recognised as liabilities once they are no longer at the

discretion of the company.

Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as

reported in the profit and loss account because it excludes items of income or expense that are taxable or

deductible in other years and it further excludes items that are never taxable or deductible. The company’s

liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the

reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are

recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax

liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing

difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction

that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period

when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss

account, except when it relates to items charged or credited directly to equity, in which case the deferred

tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally

enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate

to taxes levied by the same tax authority.

Hire purchase and leasing commitments

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Employee 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.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs

are required to be recognised as 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.

Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 31 (2020 - 31 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

COST

At 1 April 2020

59,333

44,180

591,216

694,729

Additions

69,538

-

298,046

367,584

At 31 March 2021

128,871

44,180

889,262

1,062,313

DEPRECIATION

At 1 April 2020

57,998

38,798

331,294

428,090

Charge for year

9,964

2,105

127,428

139,497

At 31 March 2021

67,962

40,903

458,722

567,587

NET BOOK VALUE

At 31 March 2021

60,909

3,277

430,540

494,726

At 31 March 2020

1,335

5,382

259,922

266,639

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

409,991

267,272

Amounts owed by related parties

128,680

95,459

Other debtors

310,001

11,150

848,672

373,881

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts (see note 8)

9,167

-

Hire purchase contracts (see note 9)

153,964

74,814

Trade creditors

123,968

46,871

Amounts owed to related parties

849,524

74,564

Taxation and social security

35,183

78,427

Other creditors

22,952

14,052

1,194,758

288,728

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans (see note 8)

40,833

-

Hire purchase contracts (see note 9)

194,346

93,411

235,179

93,411

2021

2020

£

£

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

833

-

8.

LOANS

An analysis of the maturity of loans is given below:

2021

2020

£

£

Amounts falling due within one year or on demand:

Bank loans

9,167

-

Amounts falling due between two and five years:

Bank loans - 2-5 years

40,000

-

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

833

-

The bank loan is secured by a debenture granted over the assets of the company. On 15th April 2021, the company made the decision to repay the loan in full.

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2021

2020

£

£

Net obligations repayable:

Within one year

153,964

74,814

Between one and five years

194,346

93,411

348,310

168,225

Non-cancellable operating

leases

2021

2020

£

£

Within one year

5,000

-

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

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The senior statutory auditor was Angus Cowie and the auditor was Azets Audit Services.

11.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 March 2021 and 31 March 2020:

2021

2020

£

£

M W Slater

Balance outstanding at start of year

-

-

Amounts advanced

300,000

-

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

300,000

-

12.	RELATED PARTY DISCLOSURES

Transactions with related parties

During the year the company entered into the following transactions with related parties:

Name of related party

Sales

Purchases

2021

2020

2021

2020

£

£

£

£

M & H Carriers (Aberdeen) Limited

349,065

310,360

334,614

196,686

M & H Property (Aberdeen) Limited

894

-

74,667

63,032

M & H Carriers (Inverness) Limited

19,532

14,073

72,677

38,978

M & H Carriers North Limited

-

-

-

-

Balances with related parties

Name of related party

Amounts owed by related parties

Amounts owed to related parties

2021

2020

2021

2020

£

£

£

£

M & H Carriers (Aberdeen) Limited

118,349

89,530

140,936

33,822

M & H Property (Aberdeen) Limited

3,716

3,716

33,000

18,000

M & H Carriers (Inverness) Limited

9,271

2,214

75,588

22,743

M & H Carriers North Limited

-

-

600,000

-

13.	POST BALANCE SHEET EVENTS

On 2 June 2021 100% of the issued share capital was transferred to M&H Carriers North Limited. As of this date the ultimate controlling party became FJ MacLean by virtue of his 70% shareholding in M&H Carriers North Limited.

14.	ULTIMATE CONTROLLING PARTY

The controlling party is the directors.