John Paton & Son Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: SC095417 (Scotland)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

FOR

JOHN PATON & SON LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

W J Paton

W J Paton

Miss J Paton

A D Whiteford

SECRETARY:

Mrs G McKendrick

REGISTERED OFFICE:

84 Lister Street

Glasgow

G4 0BY

REGISTERED NUMBER:

SC095417 (Scotland)

AUDITORS:

Bannerman Johnstone Maclay

Chartered Accountants

and Statutory Auditor

213 St Vincent Street

Glasgow

G2 5QY

BANKERS:

HSBC plc

2 Buchanan Street

Glasgow

G1 3LB

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

1,143,275

1,207,747

Investment property

6

230,362

230,362

1,373,637

1,438,109

CURRENT ASSETS

Stocks

207,750

438,287

Debtors

7

4,765,568

4,332,311

Cash at bank

857

24,061

4,974,175

4,794,659

CREDITORS

Amounts falling due within one year

8

4,621,609

4,121,111

NET CURRENT ASSETS

352,566

673,548

TOTAL ASSETS LESS CURRENT LIABILITIES

1,726,203

2,111,657

CREDITORS

Amounts falling due after more than one year

9

(521,377

)

(486,190

)

PROVISIONS FOR LIABILITIES

(19,164

)

(21,412

)

NET ASSETS

1,185,662

1,604,055

CAPITAL AND RESERVES

Called up share capital

200,000

200,000

Revaluation reserve

11

455,903

469,620

Retained earnings

529,759

934,435

SHAREHOLDERS' FUNDS

1,185,662

1,604,055

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 22 December 2023 and were signed on its behalf by:

W J Paton - Director

1.	STATUTORY INFORMATION

John Paton & Son 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 (£).

Monetary amounts in these financial statements are rounded to the nearest £.

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, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any excess of the fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired, is capitalised and written off on a straight line basis over its useful economic life. Provision is made for any impairment.

Tangible fixed assets

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

-

2% on cost

Plant and machinery etc

-

33% on cost, 25% on cost and 20% on 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.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include certain debtors and cash and bank balances, are initially measured at transaction price including transactions costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including certain creditors and loans from related undertakings, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

Research and development

Research expenditure is written off as incurred. Development expenditure is also written off, except where the directors are satisfied as to the technical, commercial and financial viability of individual projects. In such cases, the identifiable expenditure is deferred and amortised over the period during which the group is expected to benefit. This period is between three and five years. Provision is made for any impairment.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 26 (2022 - 23 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

Goodwill

assets

Totals

£

£

£

COST

At 1 April 2022

and 31 March 2023

144,500

383,738

528,238

AMORTISATION

At 1 April 2022

and 31 March 2023

144,500

383,738

528,238

NET BOOK VALUE

At 31 March 2023

-

-

-

At 31 March 2022

-

-

-

5.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST OR VALUATION

At 1 April 2022

1,577,151

1,128,709

2,705,860

Additions

-

37,073

37,073

Disposals

-

(35,829

)

(35,829

)

At 31 March 2023

1,577,151

1,129,953

2,707,104

DEPRECIATION

At 1 April 2022

506,673

991,440

1,498,113

Charge for year

34,401

35,794

70,195

Eliminated on disposal

-

(4,479

)

(4,479

)

At 31 March 2023

541,074

1,022,755

1,563,829

NET BOOK VALUE

At 31 March 2023

1,036,077

107,198

1,143,275

At 31 March 2022

1,070,478

137,269

1,207,747

Cost or valuation at 31 March 2023 is represented by:

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

Valuation in 2006

617,393

-

617,393

Cost

959,758

1,129,953

2,089,711

1,577,151

1,129,953

2,707,104

If land and buildings had not been revalued they would have been included at the following historical cost:

2023

2022

£

£

Cost

959,758

959,758

Aggregate depreciation

575,511

553,458

Land and buildings were valued on an open market basis on 31 March 2006 by Graham and Sibbald .

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

Plant and

machinery

etc

£

COST OR VALUATION

At 1 April 2022

56,683

Transfer to ownership

(56,683

)

At 31 March 2023

-

DEPRECIATION

At 1 April 2022

56,683

Transfer to ownership

(56,683

)

At 31 March 2023

-

NET BOOK VALUE

At 31 March 2023

-

At 31 March 2022

-

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2022

and 31 March 2023

230,362

NET BOOK VALUE

At 31 March 2023

230,362

At 31 March 2022

230,362

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

819,872

537,497

Amounts owed by group undertakings

3,860,672

3,693,951

Other debtors

85,024

100,863

4,765,568

4,332,311

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Bank loans and overdrafts

606,478

1,249,585

Hire purchase contracts

-

1,574

Trade creditors

198,119

124,767

Amounts owed to group undertakings

3,014,102

2,218,337

Taxation and social security

114,986

49,308

Other creditors

687,924

477,540

4,621,609

4,121,111

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Bank loans

121,377

191,598

Other creditors

400,000

294,592

521,377

486,190

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Preference shares

400,000

294,592

10.	SECURED DEBTS

The following secured debts are included within creditors:

2023

2022

£

£

Bank overdrafts

521,478

1,164,585

Bank loans

206,377

276,598

727,855

1,441,183

The bank overdraft and loan are secured by a floating charge over the assets of the company and a composite multilateral company guarantee given by related companies.

11.

RESERVES

Revaluation

reserve

£

At 1 April 2022

469,620

Transfer of amount equivalent to additional depreciation on revalued assets

(13,717

)

At 31 March 2023

455,903

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

The Report of the Auditors was unqualified.

Douglas Paton BSc CA (Senior Statutory Auditor)

for and on behalf of Bannerman Johnstone Maclay

13.	RELATED PARTY DISCLOSURES

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.

14.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is John Paton & Son Group Limited.