William Nicol (Aberdeen) Limited - Limited company accounts 20.1

REGISTERED NUMBER: SC092415 (Scotland)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

FOR

WILLIAM NICOL (ABERDEEN) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

to

5

Income statement

6

Balance Sheet

7

Statement of Changes in Equity

8

Cash Flow Statement

9

Notes to the Cash Flow Statement

10

Notes to the Financial Statements

11

to

18

DIRECTORS:

B Nicol

A J Nicoll

SECRETARY:

Laurie & Co Solicitors LLP

REGISTERED OFFICE:

27-29 Barclayhill Place

Portlethen

ABERDEEN

AB12 4PF

REGISTERED NUMBER:

SC092415 (Scotland)

AUDITORS:

Bain Henry Reid

Statutory Auditors

Chartered Accountants

4 West Craibstone Street

Bon-Accord Square

ABERDEEN

AB11 6YL

BANKERS:

Bank of Scotland

79 Ellon Road

Bridge of Don

ABERDEEN

AB23 8BY

SOLICITORS:

Laurie & Co Solicitors LLP

17 Victoria Street

ABERDEEN

AB10 1UU

The directors present their strategic report for the year ended 30 September 2020.

REVIEW OF BUSINESS

The principal activities of the company in the year under review were those of tank and other industrial cleaning, waste disposal services, and bulk liquid haulage. Both the level of business and the year end financial position were satisfactory, and the director expects that the present level of activity will be sustained for the foreseeable future.

During the year the UK economy as a whole has been adversely affected by the Covid-19 pandemic. However the company has had no break in trading throughout the pandemic and turnover has not been significantly affected.

PRINCIPAL RISKS AND UNCERTAINTIES

The director considers that the risks for future profitability of the business remain to be mainly competition and cost fluctuation. However, the company remains in a competitive market with an increasing number of competitors coming into the market. It is recognised that to remain competitive it requires to continue to market its services and continue to ensure that overheads are kept under control.

FINANCIAL KEY PERFORMANCE INDICATORS

Given the straight forward nature of the business, the director is of the opinion that monitoring turnover and gross profit margin is sufficient for an understanding of the development, performance or position of the business. Results have been as follows:

2020

2019

Movement

Turnover

£10.0m

£11.3m

(12%)

Gross Profit

£3.2m

£3.7m

(12%)

Gross Profit Percentage

32.3%

32.6%

(0.3%)

Whilst the director acknowledges that turnover has dropped by approximately 12% this year, the following 6 months to 31 March 2021 has seen an increase of 4% on the same period in 2020. Turnover for the year to 30 September 2021 is also looking to exceed that of 2020.

FUTURE OUTLOOK

The outlook for the year to 30 September 2021 and beyond remains positive with overall turnover expected to increase slightly and the directors are hopeful of a return to pre-2020 levels within a relatively short term. Profitability is expected to remain satisfactory.

The company's focus remains on maintaining market share in an ever increasingly competitive area.

ON BEHALF OF THE BOARD:

B Nicol - Director

23 September 2021

The directors present their report with the financial statements of the company for the year ended 30 September 2020.

DIVIDENDS

The total distribution of dividends for the year ended 30 September 2020 will be £ 255,500 .

DIRECTOR

B Nicol held office during the whole of the period from 1 October 2019 to the date of this report.

Other changes in directors holding office are as follows:

A J Nicoll was appointed as a director after 30 September 2020 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Bain Henry Reid, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

B Nicol - Director

23 September 2021

Opinion

We have audited the financial statements of William Nicol (Aberdeen) Limited (the 'company') for the year ended 30 September 2020 which comprise the Income statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 September 2020 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Karen E Gardiner BA CA CTA (Senior Statutory Auditor)

for and on behalf of Bain Henry Reid

Statutory Auditors

Chartered Accountants

4 West Craibstone Street

Bon-Accord Square

ABERDEEN

AB11 6YL

23 September 2021

TURNOVER

9,992,878

11,252,069

Cost of sales

6,767,133

7,587,526

GROSS PROFIT

3,225,745

3,664,543

Administrative expenses

2,307,666

2,152,959

918,079

1,511,584

Other operating income

18,767

34,420

OPERATING PROFIT

4

936,846

1,546,004

Interest receivable and similar income

-

12

936,846

1,546,016

Interest payable and similar expenses

5

6,184

13,465

PROFIT BEFORE TAXATION

930,662

1,532,551

Tax on profit

6

178,759

296,156

PROFIT FOR THE FINANCIAL YEAR

751,903

1,236,395

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

751,903

Prior year adjustment

296,387

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

1,532,782

FIXED ASSETS

Tangible assets

8

11,120,009

10,546,077

Investments

9

1,783,958

1,708,028

Investment property

10

1,184,167

1,175,000

14,088,134

13,429,105

CURRENT ASSETS

Stocks

11

22,500

40,500

Debtors

12

2,286,862

2,640,832

Cash at bank

401,120

706,386

2,710,482

3,387,718

CREDITORS

Amounts falling due within one year

13

1,413,608

1,906,800

NET CURRENT ASSETS

1,296,874

1,480,918

TOTAL ASSETS LESS CURRENT LIABILITIES

15,385,008

14,910,023

CREDITORS

Amounts falling due after more than one year

14

-

(125,100

)

PROVISIONS FOR LIABILITIES

17

(583,195

)

(479,513

)

NET ASSETS

14,801,813

14,305,410

CAPITAL AND RESERVES

Called up share capital

18

20,000

20,000

Fair value reserve

19

265,315

265,315

Retained earnings

19

14,516,498

14,020,095

SHAREHOLDERS' FUNDS

14,801,813

14,305,410

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2021 and were signed on its behalf by:

B Nicol - Director

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 October 2018

20,000

12,863,313

265,315

13,148,628

Prior year adjustment

-

296,387

-

296,387

As restated

20,000

13,159,700

265,315

13,445,015

Changes in equity

Dividends

-

(376,000

)

-

(376,000

)

Total comprehensive income

-

1,236,395

-

1,236,395

Balance at 30 September 2019

20,000

14,020,095

265,315

14,305,410

Changes in equity

Dividends

-

(255,500

)

-

(255,500

)

Total comprehensive income

-

751,903

-

751,903

Balance at 30 September 2020

20,000

14,516,498

265,315

14,801,813

Cash flows from operating activities

Cash generated from operations

1

1,964,826

1,933,578

Interest paid

(6,184

)

(13,465

)

Tax paid

(204,690

)

(281,781

)

Net cash from operating activities

1,753,952

1,638,332

Cash flows from investing activities

Purchase of tangible fixed assets

(1,532,606

)

(1,328,586

)

Purchase of fixed asset investments

(75,930

)

(434,244

)

Purchase of investment property

(9,167

)

-

Sale of tangible fixed assets

84,500

42,150

Interest received

-

12

Net cash from investing activities

(1,533,203

)

(1,720,668

)

Cash flows from financing activities

Loan repayments in year

(270,477

)

(263,589

)

Amount introduced by directors

-

158

Amount withdrawn by directors

(38

)

-

Equity dividends paid

(255,500

)

(376,000

)

Net cash from financing activities

(526,015

)

(639,431

)

Decrease in cash and cash equivalents

(305,266

)

(721,767

)

Cash and cash equivalents at beginning of year

2

706,386

1,428,153

Cash and cash equivalents at end of year

2

401,120

706,386

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2020

2019

£

£

Profit before taxation

930,662

1,532,551

Depreciation charges

846,550

765,553

Loss/(profit) on disposal of fixed assets

27,625

(5,225

)

Finance costs

6,184

13,465

Finance income

-

(12

)

1,811,021

2,306,332

Decrease in stocks

18,000

500

Decrease/(increase) in trade and other debtors

353,970

(407,779

)

(Decrease)/increase in trade and other creditors

(218,165

)

34,525

Cash generated from operations

1,964,826

1,933,578

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 September 2020

30/9/20

1/10/19

£

£

Cash and cash equivalents

401,120

706,386

Year ended 30 September 2019

30/9/19

1/10/18

£

£

Cash and cash equivalents

706,386

1,428,153

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/10/19

Cash flow

At 30/9/20

£

£

£

Net cash

Cash at bank

706,386

(305,266

)

401,120

706,386

(305,266

)

401,120

Debt

Debts falling due within 1 year

(260,000

)

145,377

(114,623

)

Debts falling due after 1 year

(125,100

)

125,100

-

(385,100

)

270,477

(114,623

)

Total

321,286

(34,789

)

286,497

1.	STATUTORY INFORMATION

William Nicol (Aberdeen) 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements are presented in Sterling (£).

Going concern

The director, having made due and careful enquiry, is of the opinion that the company has adequate working capital to execute its operations over the next 12 months. The director has therefore made an informed judgement at the time of approving the financial statements that the company is a going concern. As a result, the director has continued to adopt the going concern basis of accounting in preparing the annual financial statements.

Significant judgements and estimates

Preparation of financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

Estimated useful lives and residual values of fixed assets

As described in the notes to the financial statements, depreciation of tangible fixed assets has been based on the estimated useful lives and residual values deemed appropriate by the director. Estimated useful lives and residual values are reviewed annually. They are amended where necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of tangible fixed assets.

COVID-19

Management has considered the consequences of COVID-19 and other events and conditions and has determined that they do not create a material uncertainty that casts significant doubt upon the entity's ability to continue as a going concern. It expects that COVID-19 might have some impact, though not significant, for example, in relation to expected future performance, or the effects on some future asset valuations.

Turnover

Turnover is stated net of VAT and trade discounts. Turnover from the sale of goods is recognised when the goods are physically delivered to the customer. Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the value of the consideration due

The company recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the company retains no continuing involvement or control over the goods; (c) the amount of revenue can be measured reliably; and (d) it is probable that future economic benefits will flow to the entity.

Tangible fixed assets

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets, other than freehold land, over their estimated useful life or, if held under a finance lease, over the term of the lease, whichever is the shorter. The rates applicable are:

Freehold property

- not provided

Tenants improvements

- 15% on reducing balance

Plant and machinery

- 15% on reducing balance

Office equipment

- 15% on reducing balance

Motor vehicles

- 25% on reducing balance and 10% on reducing balance

Storage tanks

- 15% on reducing balance

Impairment of assets

At each reporting date fixed assets (including investments) are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Where zero depreciation of freehold buildings is appropriate

Freehold buildings are depreciated to write down the cost less estimated residual value over their remaining useful life by equal annual instalments. Where buildings are maintained to such a standard that their residual value is not less than their cost or valuation, no depreciation is charged as it is not material.

Investment property

Investment property is included at fair value. Gains are recognised in the income statement. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

Stocks

Stock consists of consumables which are included at the lower of cost and expected selling price less costs to complete and sell.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income statement, 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.

Taxation

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.

Fixed asset investments

Fixed asset investments consist of vintage vehicles which are valued at cost less provision for impairment.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Loans to employees or key management (being repayable on demand) are measured at the undiscounted amount of the cash or other consideration expected to be received.

Creditors

Short term creditors are measured at the transaction price.

Directors' loans (being repayable on demand) are measured at the undiscounted amount of the cash or other consideration expected to be paid.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk to changes in value.

Provision for liabilities

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

3.	EMPLOYEES AND DIRECTORS

2020

2019

£

£

Wages and salaries

2,842,926

2,947,271

Social security costs

297,969

310,608

Other pension costs

58,197

48,333

3,199,092

3,306,212

The average number of employees during the year was as follows:

2020

2019

Management and administration

9

9

Operational

51

52

60

61

2020

2019

£

£

Director's remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2020

2019

£

£

Hire of plant and machinery

4,167

9,633

Depreciation - owned assets

846,549

765,552

Loss/(profit) on disposal of fixed assets

27,625

(5,225

)

Auditors' remuneration

8,820

8,520

Auditors' remuneration for non audit work

12,470

13,820

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2020

2019

£

£

Bank loan interest

6,184

13,465

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2020

2019

£

£

Current tax:

UK corporation tax

74,931

199,185

Adjustment in respect of prior years

146

-

Total current tax

75,077

199,185

Deferred tax

103,682

96,971

Tax on profit

178,759

296,156

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2020

2019

£

£

Profit before tax

930,662

1,532,551

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2019 - 19%)

176,826

291,185

Effects of:

Expenses not deductible for tax purposes

1,787

4,971

Adjustments to tax charge in respect of previous periods

146

-

Total tax charge

178,759

296,156

7.

DIVIDENDS

2020

2019

£

£

Interim

255,500

376,000