ABC Taxis (Inverclyde) Limited - Accounts to registrar (filleted) - small 23.1.2

REGISTERED NUMBER: SC215370 (Scotland)

Financial Statements

for the Year Ended 31 December 2022

for

ABC Taxis (Inverclyde) Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Chartered Accountants' Report

11

DIRECTOR:

Mr G Campbell

REGISTERED OFFICE:

6 MacDougall Street

Greenock

Renfrewshire

PA15 2TG

REGISTERED NUMBER:

SC215370 (Scotland)

ACCOUNTANTS:

Henderson & Company

73 Union Street

Greenock

Renfrewshire

PA16 8BG

FIXED ASSETS

Intangible assets

4

10,079

18,254

Tangible assets

5

265,879

297,005

Investments

6

1

1

Investment property

7

842,862

635,839

1,118,821

951,099

CURRENT ASSETS

Stocks

1,390

499

Debtors

8

695,170

642,194

Prepayments and accrued income

7,777

311

Cash at bank

104,275

153,746

808,612

796,750

CREDITORS

Amounts falling due within one year

9

265,737

275,859

NET CURRENT ASSETS

542,875

520,891

TOTAL ASSETS LESS CURRENT LIABILITIES

1,661,696

1,471,990

CREDITORS

Amounts falling due after more than one year

10

491,131

446,172

NET ASSETS

1,170,565

1,025,818

CAPITAL AND RESERVES

Called up share capital

100

100

Share premium

39,900

39,900

Revaluation reserve

12

(8,887

)

(8,887

)

Retained earnings

1,139,452

994,705

SHAREHOLDERS' FUNDS

1,170,565

1,025,818

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 director acknowledges his 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 director and authorised for issue on 22 September 2023 and were signed by:

Mr G Campbell - Director

1.	STATUTORY INFORMATION

ABC Taxis (Inverclyde) 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.	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 as modified by the revaluation of certain assets.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for services supplied, net of discounts and Value Added Tax.

Revenue is recognised when the significant risks and rewards of ownership have transferred to the buyer, usually on use of the service; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Depreciation of intangible fixed assets

Goodwill arising on acquisitions is capitalised, classified as an asset on the Balance Sheet and amortised on a straight line basis at 33% and 15% p.a. It is reviewed for impairment at the end of the first full financial year following the acquisition, and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Intangible assets

Licence expenditure is capitalised where there is expected to be a benefit to future periods; the company able to demonstrate revenue from the licence; and the expenditure attributable can be reliably measured.

Capitalised licence expenditure is stated at cost less accumulated amortisation and impairment losses and amortised over its useful economic life. The assessment of useful economic life is 7 years.

Tangible fixed assets

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over their expected useful lives as follows:

Land and buildings - 5% on cost

Plant and machinery etc - 25% on cost and 15% 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 significant change since the last reporting date.

Investment properties are stated in the statement of financial position at their revalued amounts. Revaluations are carried out regularly so that carrying amounts do not materially differ from fair value at the date of financial position. Any revaluation increase or decrease on investment properties is credited to other reserves.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The tax expense for the year comprises current and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The liability for current tax is calculated using tax rates and laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognised for all taxable timing differences. Deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount for deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recoverd.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or asset realised, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

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.

Assets held under finance lease and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Operating lease payments are recognised as an expense on a straightline basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expenses on a straight line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension 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 when they are due. The assets of the plan are held separately from the company in independently administered funds.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position bank overdrafts are shown within borrowings in current liabilities.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value and thereafter stated at amortised cost using the effective interest method, less any impairment.

Creditors

Basic financial instruments, including preference shares that are classified as debt, are measured at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is initially measured at fair value and subsequently at amortised cost using the effective interest method.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2021 - 3 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2022

and 31 December 2022

416,040

AMORTISATION

At 1 January 2022

397,786

Charge for year

8,175

At 31 December 2022

405,961

NET BOOK VALUE

At 31 December 2022

10,079

At 31 December 2021

18,254

5.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 January 2022

325,991

105,220

7,370

Additions

-

4,650

-

Disposals

-

-

-

At 31 December 2022

325,991

109,870

7,370

DEPRECIATION

At 1 January 2022

107,376

98,236

6,933

Charge for year

-

1,773

114

Eliminated on disposal

-

-

-

At 31 December 2022

107,376

100,009

7,047

NET BOOK VALUE

At 31 December 2022

218,615

9,861

323

At 31 December 2021

218,615

6,984

437

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 January 2022

377,103

230,790

1,046,474

Additions

749

-

5,399

Disposals

(25,829

)

-

(25,829

)

At 31 December 2022

352,023

230,790

1,026,044

DEPRECIATION

At 1 January 2022

316,085

220,839

749,469

Charge for year

27,296

3,928

33,111

Eliminated on disposal

(22,415

)

-

(22,415

)

At 31 December 2022

320,966

224,767

760,165

NET BOOK VALUE

At 31 December 2022

31,057

6,023

265,879

At 31 December 2021

61,018

9,951

297,005

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

Motor

vehicles

£

COST

At 1 January 2022

78,790

Transfer to ownership

(36,443

)

At 31 December 2022

42,347

DEPRECIATION

At 1 January 2022

40,268

Charge for year

8,469

Transfer to ownership

(23,349

)

At 31 December 2022

25,388

NET BOOK VALUE

At 31 December 2022

16,959

At 31 December 2021

38,522

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2022

and 31 December 2022

1

NET BOOK VALUE

At 31 December 2022

1

At 31 December 2021

1

7.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2022

635,839

Additions

207,023

At 31 December 2022

842,862

NET BOOK VALUE

At 31 December 2022

842,862

At 31 December 2021

635,839

All of the company's investment properties were valued at 31 December 2022 by the director at fair value.

Fair value at 31 December 2022 is represented by:

£

Valuation in 2010

(8,887

)

Valuation in 2018

(10,558

)

Cost

862,307

842,862

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

34,057

32,249

Amounts owed by group undertakings

528,248

483,558

Other debtors

132,865

126,387

695,170

642,194

Included within in debtors is a deferred tax asset of £31,009 (2021 - £24,536). This balance is recoverable in more than twelve months from the balance sheet date.

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

91,178

57,517

Hire purchase contracts

6,537

17,727

Trade creditors

42,203

35,444

Amounts owed to group undertakings

-

23,911

Taxation and social security

63,300

65,055

Other creditors

62,519

76,205

265,737

275,859

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans

487,252

434,319

Hire purchase contracts

3,879

11,853

491,131

446,172

Amounts falling due in more than five years:

Repayable by instalments

Bank Loan

115,810

199,429

11.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Bank loans

578,430

491,836

The bank has a bond and floating charge over all monies of the company as well as a standard security over the properties owned by the company.

12.

RESERVES

Revaluation

reserve

£

At 1 January 2022

and 31 December 2022

(8,887

)

13.	RELATED PARTY DISCLOSURES

Dalglen (No. 1813) Limited has control of Inverclyde Taxis Ltd. At 31 December 2022 the company was owed £48,337 by Inverclyde Taxis Ltd (2021 - the company owed Inverclyde Taxis £23,911). This is an interest free loan.

Hobsons Taxis Ltd, a company controlled by Mr G. Campbell, director, owns 33% of the issued share capital in the company. At 31 December 2022 the company owed Hobsons Taxis Ltd £17,924 (2021 - £18,992). This is an interest free loan.

At 31 December 2022 Dalglen (No. 1810) Limited, a company under common control, owed the company £77,687 (2021 - £77,687). This is an interest free loan.

Cappielow Investments Ltd, a company in which ABC (Inverclyde) Taxis Limited owns 50% of the issued share capital, owes the company £479,911 (2021 - £483,558). A commercial rate of interest is charged on this loan.

14.	ULTIMATE CONTROLLING PARTY

The following reproduces the text of the report prepared for the director in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Director are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of ABC Taxis (Inverclyde) Limited for the year ended 31 December 2022 which comprise the Income Statement, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of ICAS, we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/accountspreparationguidance.

This report is made solely to the director of ABC Taxis (Inverclyde) Limited in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of ABC Taxis (Inverclyde) Limited and state those matters that we have agreed to state to the director of ABC Taxis (Inverclyde) Limited in this report in accordance with the requirements of ICAS as detailed at http://www.icas.com/accountspreparationguidance. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its director for our work or for this report.

It is your duty to ensure that ABC Taxis (Inverclyde) Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of ABC Taxis (Inverclyde) Limited. You consider that ABC Taxis (Inverclyde) Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of ABC Taxis (Inverclyde) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Henderson & Company

73 Union Street

Greenock

Renfrewshire

PA16 8BG

22 September 2023