ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

MOLSON SCOTLAND LIMITED - Company Information

Caseware UK (AP4) 2021.0.152 2021.0.152 2022-09-302022-09-30true47truetruetruetruetruefalse2021-10-01false45 SC064957 2021-10-01 2022-09-30 SC064957 2020-10-01 2021-09-30 SC064957 2022-09-30 SC064957 2021-09-30 SC064957 2020-10-01 SC064957 c:CompanySecretary1 2021-10-01 2022-09-30 SC064957 c:Director1 2021-10-01 2022-09-30 SC064957 c:Director1 2022-09-30 SC064957 c:Director2 2021-10-01 2022-09-30 SC064957 c:Director3 2021-10-01 2022-09-30 SC064957 c:RegisteredOffice 2021-10-01 2022-09-30 SC064957 c:Agent1 2021-10-01 2022-09-30 SC064957 d:PlantMachinery 2021-10-01 2022-09-30 SC064957 d:PlantMachinery 2022-09-30 SC064957 d:PlantMachinery 2021-09-30 SC064957 d:PlantMachinery d:OwnedOrFreeholdAssets 2021-10-01 2022-09-30 SC064957 d:MotorVehicles 2021-10-01 2022-09-30 SC064957 d:MotorVehicles 2022-09-30 SC064957 d:MotorVehicles 2021-09-30 SC064957 d:MotorVehicles d:OwnedOrFreeholdAssets 2021-10-01 2022-09-30 SC064957 d:FurnitureFittings 2021-10-01 2022-09-30 SC064957 d:FurnitureFittings 2022-09-30 SC064957 d:FurnitureFittings 2021-09-30 SC064957 d:FurnitureFittings d:OwnedOrFreeholdAssets 2021-10-01 2022-09-30 SC064957 d:OwnedOrFreeholdAssets 2021-10-01 2022-09-30 SC064957 d:CurrentFinancialInstruments 2022-09-30 SC064957 d:CurrentFinancialInstruments 2021-09-30 SC064957 d:Non-currentFinancialInstruments 2022-09-30 SC064957 d:Non-currentFinancialInstruments 2021-09-30 SC064957 d:CurrentFinancialInstruments d:WithinOneYear 2022-09-30 SC064957 d:CurrentFinancialInstruments d:WithinOneYear 2021-09-30 SC064957 d:Non-currentFinancialInstruments d:AfterOneYear 2022-09-30 SC064957 d:Non-currentFinancialInstruments d:AfterOneYear 2021-09-30 SC064957 d:ReportableOperatingSegment1 2021-10-01 2022-09-30 SC064957 d:ReportableOperatingSegment1 2020-10-01 2021-09-30 SC064957 d:ReportableOperatingSegment2 2021-10-01 2022-09-30 SC064957 d:ReportableOperatingSegment2 2020-10-01 2021-09-30 SC064957 d:ReportableOperatingSegment3 2021-10-01 2022-09-30 SC064957 d:ReportableOperatingSegment3 2020-10-01 2021-09-30 SC064957 d:UKTax 2021-10-01 2022-09-30 SC064957 d:UKTax 2020-10-01 2021-09-30 SC064957 d:ShareCapital 2022-09-30 SC064957 d:ShareCapital 2021-09-30 SC064957 d:ShareCapital 2020-10-01 SC064957 d:CapitalRedemptionReserve 2022-09-30 SC064957 d:CapitalRedemptionReserve 2021-09-30 SC064957 d:CapitalRedemptionReserve 2020-10-01 SC064957 d:RetainedEarningsAccumulatedLosses 2021-10-01 2022-09-30 SC064957 d:RetainedEarningsAccumulatedLosses 2022-09-30 SC064957 d:RetainedEarningsAccumulatedLosses 2020-10-01 2021-09-30 SC064957 d:RetainedEarningsAccumulatedLosses 2021-09-30 SC064957 d:RetainedEarningsAccumulatedLosses 2020-10-01 SC064957 c:OrdinaryShareClass1 2021-10-01 2022-09-30 SC064957 c:OrdinaryShareClass1 2022-09-30 SC064957 c:OrdinaryShareClass1 2021-09-30 SC064957 c:FRS102 2021-10-01 2022-09-30 SC064957 c:Audited 2021-10-01 2022-09-30 SC064957 c:FullAccounts 2021-10-01 2022-09-30 SC064957 c:PrivateLimitedCompanyLtd 2021-10-01 2022-09-30 SC064957 d:HirePurchaseContracts d:WithinOneYear 2022-09-30 SC064957 d:HirePurchaseContracts d:WithinOneYear 2021-09-30 SC064957 d:HirePurchaseContracts d:BetweenOneFiveYears 2022-09-30 SC064957 d:HirePurchaseContracts d:BetweenOneFiveYears 2021-09-30 SC064957 d:AcceleratedTaxDepreciationDeferredTax 2022-09-30 SC064957 d:AcceleratedTaxDepreciationDeferredTax 2021-09-30 SC064957 d:TaxLossesCarry-forwardsDeferredTax 2022-09-30 SC064957 d:TaxLossesCarry-forwardsDeferredTax 2021-09-30 SC064957 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2022-09-30 SC064957 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2021-09-30 SC064957 d:LeasedAssetsHeldAsLessee 2022-09-30 SC064957 d:LeasedAssetsHeldAsLessee 2021-09-30 xbrli:shares iso4217:GBP xbrli:pure

Registered number: SC064957

MOLSON SCOTLAND LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

MOLSON SCOTLAND LIMITED

COMPANY INFORMATION

DIRECTORS	J Wilson (resigned 15 December 2021)
	J Powles
	R Powell


COMPANY SECRETARY	J Powles


REGISTERED NUMBER	SC064957


REGISTERED OFFICE	Lochill Industrial Estate
	Doune
	Stirlingshire
	FK16 6AU


INDEPENDENT AUDITORS	Bishop Fleming Bath Limited
	Chartered Accountants & Statutory Auditors
	10 Temple Back
	Bristol
	BS1 6FL


BANKERS	HSBC Plc
	30 High Street
	Weston-Super-Mare
	BS23 1JE

MOLSON SCOTLAND LIMITED

CONTENTS

	Page
Strategic report
Directors' report
Directors' responsibilities statement
Independent auditors' report
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Notes to the financial statements

MOLSON SCOTLAND LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2022

INTRODUCTION

The directors present this strategic report for the year ended 30 September 2022.

BUSINESS REVIEW

The directors are satisfied with the performance of the company in the current financial year. The company saw a small decrease in turnover to £29.9m (2021: £32.2m) and net profit before tax to £0.5m (2021: £0.9m). The company did improve gross profit margin to 7.8% (2021: 6.6%) despite ongoing supply chain difficulties suffered in the year.
At the year-end, the company had net assets of £1.3m (2021: £0.9m) and trading during the first quarter of the current financial year has been solid and order intake continues to remain strong.

The directors therefore believe the company's position to be satisfactory.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have reviewed and agreed policies for managing the financial risks, and these are summarised below:
Market risk
As with most businesses, market risk encompasses three types of risk, being price risk, interest rate risk and currency risk:
- Price risk
The company continues to compete effectively by continually monitoring its product range and responding to activities in the market. The company operates in a competitive market, however there have been no significant alterations to the underlying risks of operating in the industry, nor are any anticipated.
- Interest rate risk
The company is a party to its parent company’s bank borrowings. These borrowings incur interest at market rates. The parent company mitigates the exposure of the group through the ongoing monitoring of the rates being applied.
- Currency risk
The company makes a number of purchases and sales in currencies other than sterling. The company maintains foreign currency bank accounts and its parent company utilises forward exchange currency contracts to hedge the short-term exposure of the group.

Credit risk
Credit risk is tightly controlled as machines are not usually released to the customer until paid for and most are financed by a finance company, net of any deposit paid by the buyer. Customer credit risk is addressed through a mixture of credit worthiness checks and a proactive approach to cash collection.
Liquidity risk
The company ensures sufficient liquidity is available to meet foreseeable needs through regular cash flow forecasting and it is a party to its parent company’s financing arrangements.

FINANCIAL KEY PERFORMANCE INDICATORS

The company uses a number of key performance indicators to monitor its performance:
2022 2021
Operating Profit £0.5m £0.9m
Net Assets £1.3m £0.9m
Gross profit margin 7.8% 6.6%
Ratio of current assets: current liabilities 1.09 1.06

MOLSON SCOTLAND LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2022

This report was approved by the board on 11 January 2023 and signed on its behalf.

J Powles

Director

MOLSON SCOTLAND LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2022

The directors present their report and the financial statements for the year ended 30 September 2022.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the sale of new and used plant and machinery, supplying spare parts and servicing.

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £413,166 (2021: £620,092).

DIRECTORS

The directors who served during the year were:

J Wilson (resigned 15 December 2021)

J Powles

R Powell

MATTERS COVERED IN THE STRATEGIC REPORT

The Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 requires a Strategic report
to be prepared. Where mandatory disclosures in the Directors' report are considered by the directors to be of
strategic importance, these have been included in the Strategic report rather than the Directors' report.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

AUDITORS

The auditors, Bishop Fleming Bath Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

J Powles

Director

Date: 11 January 2023

Lochill Industrial Estate

Doune

Stirlingshire

FK16 6AU

MOLSON SCOTLAND LIMITED

DIRECTORS' RESPONSIBILITIES STATEMENT

FOR THE YEAR ENDED 30 SEPTEMBER 2022

The directors are responsible for preparing the Strategic report, the Directors' report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements and then apply them consistently;

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

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

∙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 to 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.

MOLSON SCOTLAND LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MOLSON SCOTLAND LIMITED

OPINION

We have audited the financial statements of Molson Scotland Limited (the 'Company') for the year ended 30 September 2022, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, 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 2022 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 United Kingdom, including the Financial Reporting Council'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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

MOLSON SCOTLAND LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MOLSON SCOTLAND LIMITED (CONTINUED)

OPINION 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic report and the Directors' report 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 Directors' report.

We have nothing to report in respect of the following matters in relation to which 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 Directors' responsibilities statement set out on page , 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 is 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.

MOLSON SCOTLAND LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MOLSON SCOTLAND LIMITED (CONTINUED)

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 an Auditors' report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities

The specific procedures for this engagement and the extent to which these are capable of detecting
irregularities, including fraud is detailed below:

∙We have considered the nature of the industry and sector, control environment and business performance.

∙We have considered the results of our enquiries of management, including the Chief Operating Officer about their own identification and assessment of the risk of irregularities.

∙For any matters identified we have obtained and reviewed the Company’s documentation of their policies and procedures relating to:

°Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

°Detecting and responding to the risk of fraud and whether they have knowledge of actual, suspected, or alleged fraud; and,

°The internal controls established to mitigate the risks of fraud or non-compliance with laws and regulations.

∙We have considered the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud, and incorrect recognition of revenue and mis-valuation of stock were identified as the greatest potential areas for fraud
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the
financial statements but compliance with which may be fundamental to the Company’s ability to operate or to
avoid a material penalty. These included:

∙Health and safety; and

∙Employment legislation.

Audit response to risks identified

We identified recognition of revenue as a key audit matter related to the potential risk of fraud, our procedures to respond to risks identified included the following:

∙Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance

MOLSON SCOTLAND LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MOLSON SCOTLAND LIMITED (CONTINUED)

with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

∙Enquiring of management concerning actual and potential litigation claims;

∙Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement or fraud; and

∙In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions
reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves
intentional concealment, forgery, collusion, omission, or misrepresentation.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements,
recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not
detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery,
misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

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 Auditors' report.

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 an Auditors' report 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.

Ria Burridge FCCA (Senior statutory auditor)

for and on behalf of

Bishop Fleming Bath Limited

Chartered Accountants

Statutory Auditors

10 Temple Back

Bristol

BS1 6FL

20 January 2023

MOLSON SCOTLAND LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 SEPTEMBER 2022

	2022	2021
Note	£	£


Turnover	4	29,887,579	32,234,767
Cost of sales		(27,555,974)	(30,121,771)
Gross profit		2,331,605	2,112,996
Administrative expenses		(1,844,943)	(1,248,709)
Other operating income		1,000	6,969
Operating profit	5	487,662	871,256
Interest payable and similar expenses		(2,126)	(3,890)
Profit before tax		485,536	867,366
Tax on profit	7	(72,370)	(247,274)
Profit for the financial year		413,166	620,092

There were no recognised gains and losses for 2022 or 2021 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2022 (2021:£NIL).

The notes on form part of these financial statements.

MOLSON SCOTLAND LIMITED

REGISTERED NUMBER:SC064957

STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2022

		2022		2021
Note		£		£

Fixed assets
Tangible assets	8		103,176		231,740
			103,176		231,740
Current assets
Stocks	9	3,216,900		3,106,078
Debtors: amounts falling due within one year	10	10,551,199		3,234,070
Cash at bank and in hand		252,306		5,499,059
		14,020,405		11,839,207
Creditors: amounts falling due within one year	11	(12,834,718)		(11,176,720)
Net current assets			1,185,687		662,487
Total assets less current liabilities			1,288,863		894,227
Creditors: amounts falling due after more than one year	12		-		(5,097)
Provisions for liabilities
Deferred tax	14		-		(13,433)
Net assets			1,288,863		875,697

Capital and reserves
Called up share capital	15	3,600	3,600
Capital redemption reserve		400	400
Profit and loss account		1,284,863	871,697
		1,288,863	875,697

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

J Powles

Director

Date: 11 January 2023

The notes on form part of these financial statements.

MOLSON SCOTLAND LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2022

	Called up share capital	Capital redemption reserve	Profit and loss account	Total equity
	£	£	£	£
At 1 October 2020	3,600	400	251,605	255,605
Comprehensive income for the year
Profit for the year	-	-	620,092	620,092

At 1 October 2021	3,600	400	871,697	875,697
Comprehensive income for the year
Profit for the year	-	-	413,166	413,166
At 30 September 2022	3,600	400	1,284,863	1,288,863

The notes on form part of these financial statements.

MOLSON SCOTLAND LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

1.	GENERAL INFORMATION

Molson Scotland Limited is a private company limited by shares, and incorporated in Scotland. The registered office is Lochill Industrial Estate, Doune, Stirlingshire, FK16 6AU.

2.ACCOUNTING POLICIES

2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Molson Group Limited as at 30 September 2022 and these financial statements may be obtained from Unit 4, Smoke Lane Industrial Estate, Avonmouth, Bristol, BS11 0YA.

2.3

GOING CONCERN

The company saw a small decrease in turnover to £29.9m (2021: £32.2m) and a net profit before tax to £0.5m (2021: £0.9m). The company did improve gross profit margin to 7.8% (2021: 6.6%), despite ongoing supply chain difficulties suffered in the year.
At the year-end, the company had net assets of £1.3m (2021: £0.9m), and trading during the current financial year has been solid and order intake continues to remain strong.
The directors have prepared forecasts that show the company is able to realise its assets and settle its liabilities as they fall due in the normal course of business for a period of at least 12 months from the date of approval of these financial statements. Therefore these financial statements are prepared on a going concern basis.

MOLSON SCOTLAND LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

2.ACCOUNTING POLICIES (continued)

2.4

FOREIGN CURRENCY TRANSLATION

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

2.5

TURNOVER

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.6

OPERATING LEASES: THE COMPANY AS LESSEE

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

MOLSON SCOTLAND LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

2.ACCOUNTING POLICIES (continued)

2.7

LEASED ASSETS: THE COMPANY AS LESSEE

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

2.8

FINANCE COSTS

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.9

PENSIONS

The Company participates in a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

2.10

CURRENT AND DEFERRED TAXATION

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

2.11

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

MOLSON SCOTLAND LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

2.ACCOUNTING POLICIES (continued)

2.11

TANGIBLE FIXED ASSETS (CONTINUED)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery	-	25%	on cost
Motor vehicles	-	25%	on cost
Fixtures and fittings	-	25%	on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.12

STOCK

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.

2.13

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.14

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.15

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

MOLSON SCOTLAND LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

2.ACCOUNTING POLICIES (continued)

2.16

PROVISIONS FOR LIABILITIES

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

2.17

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

MOLSON SCOTLAND LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

3.	JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The critical judgements made by management that have a significant effect on the amounts recognised in the financial statements are described below.

Critical judgments

Lease commitments

The company determines whether leases entered into by the company either as a lessor or a lessee are operating or lease or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

Depreciation rates

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Sources of estimation uncertainty

Impairment of fixed assets

The company determines whether there are indicators of impairment of tangible and intangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Valuation of stock provision

The company determines whether there are conditions that exist at the balance sheet date that indicates that the net realisable value of individual stock lines are less than the carrying value. Such indicators include post year end sales, auction prices, and market demand.

Sale of construction equipment	26,107,346	26,780,138
Servicing of construction equipment	3,105,151	4,808,486
Hire of equipment	675,082	646,143
	29,887,579	32,234,767

All turnover arose within the United Kingdom.

MOLSON SCOTLAND LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

Depreciation of tangible fixed assets	120,657	64,825
Exchange differences	1,949	71
Defined contribution pension cost	35,374	29,677
Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements	16,965	15,425

Wages and salaries	973,739	1,266,312
Social security costs	215,834	174,584
Cost of defined contribution scheme	35,374	29,677
	1,224,947	1,470,573

The average monthly number of employees, including the directors, during the year was as follows:

	2022	2021
	No.	No.

Sales, Sales Support, and Servicing	37	35
Administrative	10	10

	47	45

MOLSON SCOTLAND LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

CORPORATION TAX
Current tax on profits for the year	134,545	233,841
	134,545	233,841

TOTAL CURRENT TAX	134,545	233,841

DEFERRED TAX
Origination and reversal of timing differences	(62,175)	13,433
TOTAL DEFERRED TAX	(62,175)	13,433


	TAXATION ON PROFIT ON ORDINARY ACTIVITIES	72,370	247,274

MOLSON SCOTLAND LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

7.TAXATION (CONTINUED)

Profit on ordinary activities before tax

485,536

867,366

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021: 19%)	92,252	164,800
EFFECTS OF:
Fixed asset differences	329	17,779
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	1,575	3,338
Adjustments to tax charge in respect of prior periods	-	6,697
Remeasurement of deferred tax for changes in tax rates	(10,817)	3,224
Other differences leading to an increase (decrease) in the tax charge	(10,969)	51,436
TOTAL TAX CHARGE FOR THE YEAR	72,370	247,274

FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

As enacted by the Government on 24 May 2021, the main rate of corporation tax will increase from 19% to 25% with effect from 1 April 2023.

MOLSON SCOTLAND LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

8.	TANGIBLE FIXED ASSETS

	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£
COST OR VALUATION
At 1 October 2021	149,944	483,523	75,640	709,107
Additions	1,699	-	1,250	2,949
Disposals	(15,079)	(67,930)	-	(83,009)
At 30 September 2022	136,564	415,593	76,890	629,047
DEPRECIATION
At 1 October 2021	98,095	331,458	47,814	477,367
Charge for the year	17,329	81,615	21,713	120,657
Disposals	(11,229)	(60,924)	-	(72,153)
At 30 September 2022	104,195	352,149	69,527	525,871
NET BOOK VALUE
At 30 September 2022	32,369	63,444	7,363	103,176
At 30 September 2021	51,849	152,065	27,826	231,740

The depreciation charged to the profit and loss account in the year related to assets held under hire purchase agreements is £15,174 (2021: £22,135).

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2022	2021
	£	£


Motor vehicles	19,130	60,342
	19,130	60,342

MOLSON SCOTLAND LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

9.	STOCKS
		2022	2021
		£	£

Parts stock	1,725,112	1,212,479
Work in progress	262,660	221,830
Finished goods and goods for resale	1,229,128	1,671,769
	3,216,900	3,106,078

10.

DEBTORS

					2022	2021
					£	£


Trade debtors	1,704,408	2,310,506
Amounts owed by group undertakings	8,408,886	253,177
Other debtors	5,892	5,528
Prepayments and accrued income	383,271	664,859
Deferred taxation	48,742	-
	10,551,199	3,234,070

Amounts owed by group undertakings are unsecured and repayable on demand.

11.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
		2022	2021
		£	£

Trade creditors	1,591,915	908,832
Amounts owed to group undertakings	10,154,957	8,786,051
Corporation tax	34,545	159,478
Other taxation and social security	54,649	80,632
Obligations under finance lease and hire purchase contracts	4,497	27,914
Other creditors	40,367	31,821
Accruals and deferred income	953,788	1,181,992
	12,834,718	11,176,720

Amounts owed to group undertakings are unsecured and repayable on demand.

MOLSON SCOTLAND LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

12.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
		2022	2021
		£	£

Net obligations under finance leases and hire purchase contracts	-	5,097
	-	5,097

Within one year	4,497	27,914
Between 1-5 years	-	5,097
	4,497	33,011

14.	DEFERRED TAXATION

		2022
		£

	At beginning of year	(13,433)
	Charged to profit or loss	62,175
	AT END OF YEAR	48,742

The deferred taxation balance is made up as follows:
	2022	2021
	£	£

Fixed asset timing differences	48,382	(13,793)
Short term timing differences	360	360
	48,742	(13,433)

MOLSON SCOTLAND LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

15.	SHARE CAPITAL
		2022	2021
		£	£

ALLOTTED, CALLED UP AND FULLY PAID

3,600 (2021: 3,600) Ordinary shares of £1.00 each	3,600	3,600

16.	PENSION COMMITMENTS

The Company participates in a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £35,374 (2021: £29,677). At the year end there were outstanding contributions of £696 (2021: £31,821).

17.

RELATED PARTY TRANSACTIONS

All related party transactions are on normal commercial rates and normal commercial terms.
The Company is consolidated within Molson Group Limited accounts and has therefore taken advantage of the exemption available under the requirements of Section 33 Related Party Disclosures paragraph 33.7, in not providing details of any transactions which have been eliminated on consolidation.
Key management personnel are considered to be the directors, who are remunerated through another group company.

18.	CONTROLLING PARTY

Molson Scotland Limited is a wholly owned subsidiary of Molson Group Limited, a Company incorporated in the United Kingdom.