| TOP MANAGEMENT LTD |
| Notes to the Accounts |
| For the year ended 31 December 2022 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Going concern |
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At the time of the approval of the financial statements, within one of the company's subsidiaries, Hampco Limited, there remains uncertainty over the recoverability of a trade debtors balance of £0.751m due on a large contract the company worked on during prior years. This in turn, may impact on the recoverability of amounts due to group undertakings shown on the balance sheet of Top Management Ltd. |
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The director is in active dialogue regarding settlement of the outstanding amount and is confident that these will be received. |
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In making his going concern assessment, the director has considered various scenarios that may arise, ranging from full recovery to no recovery of the outstanding trade debtors balance referred to above. The director has also considered financial support that is available from the parent company and from within the wider group. |
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Included in other creditors is a loan balance due to the director of £199,683. The director has confirmed that he will not seek any repayment of this loan for a period of at least 12 months from the date of approval of these financial statements. In addition, the director has also considered financial support that is available from within the wider group, should this be required. |
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Based on the above, the director therefore has a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future and accordingly the director continues to adopt the going concern basis in preparing these financial statements. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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| 2 |
Employees |
2022 |
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2021 |
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Number |
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Number |
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Average number of persons employed by the company |
1 |
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1 |
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| 3 |
Investments |
Investments in |
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subsidiary |
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undertakings |
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£ |
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Cost |
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At 1 January 2022 |
39,064 |
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At 31 December 2022 |
39,064 |
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| 4 |
Subsidiaries |
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Details of the company's subsidiaries at 31 December 2022 are as follows: |
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Name of undertaking and country of |
Class of |
% Held |
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incorporation or residency |
shareholding |
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Easyfab Limited |
Scotland |
Ordinary |
100 |
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Hampco Limited |
Scotland |
Ordinary |
100 |
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Hampco Services Inc. |
USA |
Ordinary |
100 |
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Hampco Services Limited |
Scotland |
Ordinary |
100 |
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Hampco Services PTE Limited* |
Singapore |
Ordinary |
- |
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T2 Integrity Limited |
Scotland |
Ordinary |
100 |
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* Investment held by Hampco Limited. |
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| 5 |
Debtors |
2022 |
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2021 |
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£ |
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£ |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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309,479 |
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330,102 |
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Deferred tax asset |
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244 |
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244 |
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Other debtors |
325 |
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250 |
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310,048 |
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330,596 |
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Amounts owed by group undertakings are interest free and repayable on demand. |
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| 6 |
Creditors: amounts falling due within one year |
2022 |
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2021 |
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£ |
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£ |
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Trade creditors |
(123) |
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4,358 |
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Taxation and social security costs |
- |
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2,147 |
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Other creditors |
202,683 |
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202,683 |
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202,560 |
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209,188 |
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| 7 |
Security |
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At 31 December 2022, the company is party to a cross corporate guarantee (bond and floating charge) signed by all members of the TOP Management Ltd group. The parties to the guarantee have no outstanding bank debt at the period end. |
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| 8 |
Related party transactions |
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The company has taken advantage of the exemption available in accordance with Section 33 of FRS 102 'Related Party Disclosures' not to disclose transactions entered into between two or more wholly owned members of the group. |
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| 9 |
Parent company |
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Top Management is the ultimate parent company of the group it is part of. The ultimate controlling party is Mr A L Grieve. |
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| 10 |
Other information |
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TOP MANAGEMENT LTD is a private company limited by shares and incorporated in Scotland. Its registered office is: |
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Archballoch Business Centre |
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Alford |
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Aberdeenshire |
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AB33 8HP |
