Kelvin Steels Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: SC205181 (Scotland)

Financial Statements for the Year Ended 30 November 2022

for

KELVIN STEELS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

H B Nugent

A Nugent

REGISTERED OFFICE:

Caledonia House

Thornliebank Industrial Estate

Glasgow

G46 8JT

REGISTERED NUMBER:

SC205181 (Scotland)

SENIOR STATUTORY AUDITOR:

Robert Pollock BA CA

AUDITORS:

Sharles Audit Limited

Statutory Auditor

29 Brandon Street

Hamilton

ML3 6DA

FIXED ASSETS

Intangible assets

5

-

-

Tangible assets

6

117,902

93,079

117,902

93,079

CURRENT ASSETS

Stocks

759,749

546,032

Debtors

7

1,568,380

1,981,229

Cash at bank

2,180,087

1,056,129

4,508,216

3,583,390

CREDITORS

Amounts falling due within one year

8

2,047,505

1,332,882

NET CURRENT ASSETS

2,460,711

2,250,508

TOTAL ASSETS LESS CURRENT LIABILITIES

2,578,613

2,343,587

PROVISIONS FOR LIABILITIES

579,449

573,219

NET ASSETS

1,999,164

1,770,368

CAPITAL AND RESERVES

Called up share capital

10,000

10,000

Retained earnings

1,989,164

1,760,368

SHAREHOLDERS' FUNDS

1,999,164

1,770,368

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 31 August 2023 and were signed on its behalf by:

H B Nugent - Director

1.	STATUTORY INFORMATION

Kelvin Steels 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

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. There were no material departures from the standard.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these 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.

Turnover

Turnover is derived from sales of steel by the company.

Turnover is measured at the fair value of the sales of steel, net of discounts and excluding value added tax, and is recognised at the point that the company obtains the right to consideration.

Goodwill

Goodwill arising on an acquisition of a trade is the difference between the fair value of the consideration paid and the fair value of the assets and liabilities acquired. Positive goodwill is capitalised and amortised through the profit & loss account over the directors estimate of its economic useful life which is 4 years. impairment tests on the carrying value of goodwill are undertaken :-

- at the end of the first full financial year following acquisition;

- in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

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.

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 etc

-

25% on cost, 10% on cost and at varying rates on cost

Tangible fixed assets held for the companies own use are stated at cost less accumulated depreciation and accumulated impairment loss.

At each balance sheet date, the company reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Expenditure of £1,000 or more on individual tangible fixed assets is capitalised at cost. Expenditure on assets below this threshold is charged directly to the income statement in the period it is incurred.

Government grants

Grants considered to be revenue in nature are credited to the profit and loss account in the period to which they relate. Grants of a capital nature are reflected as deferred income in the balance sheet and released to the profit and loss account over the estimated useful life of the assets to which they relate.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell (net realisable value). Costs, which comprise direct production costs, are based on the method appropriate to the type of inventory class, but usually on a first-in-first-out basis. Overheads are charged to the income statement as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs. A provision for slow moving and obsolete stock is made based on historical experience and other relevant factors.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amounts of stocks recognised as an expense in the period in which the reversal occurs.

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 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.

Pension costs and other post-retirement benefits

The company makes contributions to a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 34 (2021 - 33 ) .

5.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 December 2021

and 30 November 2022

68,252

AMORTISATION

At 1 December 2021

and 30 November 2022

68,252

NET BOOK VALUE

At 30 November 2022

-

At 30 November 2021

-

6.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 December 2021

50,621

668,980

719,601

Additions

-

162,150

162,150

Disposals

-

(105,416

)

(105,416

)

At 30 November 2022

50,621

725,714

776,335

DEPRECIATION

At 1 December 2021

50,621

575,901

626,522

Charge for year

-

43,878

43,878

Eliminated on disposal

-

(11,967

)

(11,967

)

At 30 November 2022

50,621

607,812

658,433

NET BOOK VALUE

At 30 November 2022

-

117,902

117,902

At 30 November 2021

-

93,079

93,079

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

1,371,959

1,140,068

Amounts owed by group undertakings

166,683

801,933

Other debtors

13,200

19,422

Prepayments

16,538

19,806

1,568,380

1,981,229

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade creditors

1,022,764

543,934

Tax

280,250

147,730

Social security and other taxes

116,935

174,815

Other creditors

34,129

30,076

Directors' current accounts

477

2,000

Accrued expenses

592,950

434,327

2,047,505

1,332,882

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

The Report of the Auditors was unqualified.

Robert Pollock BA CA (Senior Statutory Auditor)

for and on behalf of Sharles Audit Limited

10.	RELATED PARTY DISCLOSURES

The company's related parties are considered to be Eaststrand Ltd, Arran Holdings limited, Weststrand Limited and Kelvin Steels (England) Limited. Eaststrand Limited has a common director and beneficial shareholder and Arran Holdings Limited is a subsidiary of Eaststrand Limited. Weststrand Limited is the company's ultimate parent company, and Kelvin Steels (England) Limited is a fellow subsidiary.

The company leases its premises from Arran Holdings Limited. During the year rent of £150,000 (2021 - £150,000) was paid to Arran Holdings Limited under the terms of the lease. There was nothing due to this company at the year end or the previous year end.

Exemption has been taken from disclosing related party transactions with Weststrand Limited and Kelvin Steels (England) Limited on the basis that consolidated financial statements have been prepared for the group headed by the company's parent, Weststrand Limited.

11.	FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

12.	ULTIMATE CONTROLLING PARTY

The company's ultimate parent company is Weststrand Limited, a company registered in Scotland and having its registered office at Caledonia House, Thornliebank Industrial Estate, Thornliebank, Glasgow, G46 8JT.