Serracon Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: SC425064 (Scotland)

Unaudited Financial Statements for the Year Ended 31 December 2022

for

Serracon Limited

Page

Balance Sheet

1

Notes to the Financial Statements

3

FIXED ASSETS

Intangible assets

4

21,130

39,878

Tangible assets

5

316,661

268,134

337,791

308,012

CURRENT ASSETS

Stocks

4,967,124

2,109,653

Debtors

6

1,735,008

1,378,319

Cash at bank

720,626

342,457

7,422,758

3,830,429

CREDITORS

Amounts falling due within one year

7

(5,011,665

)

(2,180,276

)

NET CURRENT ASSETS

2,411,093

1,650,153

TOTAL ASSETS LESS CURRENT LIABILITIES

2,748,884

1,958,165

CREDITORS

Amounts falling due after more than one year

8

(1,057,984

)

(604,696

)

PROVISIONS FOR LIABILITIES

(47,529

)

(22,213

)

NET ASSETS

1,643,371

1,331,256

CAPITAL AND RESERVES

Called up share capital

2,118

2,118

Share premium

6,690

6,690

Retained earnings

1,634,563

1,322,448

1,643,371

1,331,256

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

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

(b)

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

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 24 August 2023 and were signed on its behalf by:

Mr R Paterson - Director

1.	STATUTORY INFORMATION

Serracon Limited is a private company, limited by shares, domiciled in Scotland, registration number SC425064. The registered office is 1 Wheatfield Road, Dunnikier Business Park, Kirkcaldy, Fife, KY1 3PD.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover represents net invoiced sales of goods in respect of machine tool accessories and products, excluding value added tax. Sales are recognised at the point at which the goods are delivered.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Research and development are being amortised evenly over their estimated useful life of five years.

Tangible fixed assets and depreciation

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Land and buildings

-

5% on cost

Plant and machinery etc

-

33% on reducing balance, 33% on cost, 25% on reducing balance, 20% on reducing balance and 20% on cost

Tangible fixed assets are stated at cost less depreciation. Cost represent purchase price together with any incidental costs of acquisition.

The directors have considered the residual value of all tangible fixed assets to be immaterial and therefore all tangible fixed assets are depreciated to nil value.

The directors have reviewed the depreciation policies for fixed assets as a whole and consider that it is more appropriate to depreciate assets on a straight line basis going forward.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is represented by purchase price.

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.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.

Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

Provisions

Provisions are recognised when the company has a legal or constructive obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Provisions are discounted where the time value of money is material.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 48 (2021 - 44 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 January 2022

and 31 December 2022

473,373

AMORTISATION

At 1 January 2022

433,495

Charge for year

18,748

At 31 December 2022

452,243

NET BOOK VALUE

At 31 December 2022

21,130

At 31 December 2021

39,878

5.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 January 2022

64,339

304,815

369,154

Additions

17,297

135,506

152,803

Disposals

-

(27,457

)

(27,457

)

At 31 December 2022

81,636

412,864

494,500

DEPRECIATION

At 1 January 2022

20,766

80,254

101,020

Charge for year

15,904

75,868

91,772

Eliminated on disposal

-

(14,953

)

(14,953

)

At 31 December 2022

36,670

141,169

177,839

NET BOOK VALUE

At 31 December 2022

44,966

271,695

316,661

At 31 December 2021

43,573

224,561

268,134

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

etc

£

COST

At 1 January 2022

198,116

Transfer to ownership

(68,787

)

At 31 December 2022

129,329

DEPRECIATION

At 1 January 2022

49,996

Charge for year

41,396

Transfer to ownership

(48,291

)

At 31 December 2022

43,101

NET BOOK VALUE

At 31 December 2022

86,228

At 31 December 2021

148,120

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

£

£

Trade debtors

1,666,955

1,332,994

Amounts owed by group undertakings

31,898

7,038

Other debtors

36,155

38,287

1,735,008

1,378,319

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

£

£

Bank loans and overdrafts

263,232

59,080

Hire purchase contracts

38,588

51,838

Trade creditors

371,500

506,943

Amounts owed to group undertakings

1,337,728

970,817

Taxation and social security

339,894

124,689

Other creditors

2,660,723

466,909

5,011,665

2,180,276

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.22

31.12.21

£

£

Bank loans

27,184

35,363

Hire purchase contracts

30,800

69,333

Amounts owed to group undertakings

500,000

500,000

Other creditors

500,000

-

1,057,984

604,696

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

-

3,283

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.12.22

31.12.21

£

£

Hire purchase contracts

69,388

121,171

Bank loans

290,416

93,205

Factoring creditor

1,203,545

-

1,563,349

214,376

Balances due under hire purchase/finance lease agreements are secured upon the assets to which they relate.

Personal guarantees have been extended by company shareholders in relation to the bank loans. There is also a security over the ground at Carberry Road Mitchelston Industrial Estate and 1 Wheatfield Road, Dunnikier Business Park.

The factoring creditor is secured over the debts to which the factoring facility relates to.

10.	RELATED PARTY DISCLOSURES

A family member provided a loan to the company during the year ended 31st December 2022 of £1,500,000. Interest is charged at 2% above base rate over the term of the loan.

11.	ULTIMATE PARENT COMPANY

The ultimate parent company is Riverside (Global) Ltd. The registered office of this company is 1 Wheatfield Road, Dunnikier Business Park, Kirkcaldy, Fife, United Kingdom, KY1 3PD.