John Paton & Son Limited - Accounts to registrar - small 17.2

REGISTERED NUMBER: SC095417 (Scotland)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2017

FOR

JOHN PATON & SON LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

W J Paton

Miss J Paton

W J Paton

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

1,374,678

1,390,555

1,374,678

1,390,555

CURRENT ASSETS

Stocks

277,734

302,542

Debtors

6

3,793,889

3,238,704

Cash at bank

21,206

19,125

4,092,829

3,560,371

CREDITORS

Amounts falling due within one year

7

2,310,223

2,256,045

NET CURRENT ASSETS

1,782,606

1,304,326

TOTAL ASSETS LESS CURRENT LIABILITIES

3,157,284

2,694,881

CREDITORS

Amounts falling due after more than one year

8

1,002,810

902,146

NET ASSETS

2,154,474

1,792,735

CAPITAL AND RESERVES

Called up share capital

200,000

200,000

Revaluation reserve

10

538,205

551,922

Retained earnings

1,416,269

1,040,813

SHAREHOLDERS' FUNDS

2,154,474

1,792,735

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

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 on 11 December 2017 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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.

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.

Development costs are being amortised evenly over their estimated useful life of nil years.

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

-

20% on cost

Stocks

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

moving items.

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 44 (2016 - 37 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

Goodwill

assets

Totals

£

£

£

COST

At 1 April 2016

and 31 March 2017

144,500

383,738

528,238

AMORTISATION

At 1 April 2016

and 31 March 2017

144,500

383,738

528,238

NET BOOK VALUE

At 31 March 2017

-

-

-

At 31 March 2016

-

-

-

5.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST OR VALUATION

At 1 April 2016

1,561,276

881,635

2,442,911

Additions

-

63,028

63,028

At 31 March 2017

1,561,276

944,663

2,505,939

DEPRECIATION

At 1 April 2016

311,647

740,709

1,052,356

Charge for year

31,226

47,679

78,905

At 31 March 2017

342,873

788,388

1,131,261

NET BOOK VALUE

At 31 March 2017

1,218,403

156,275

1,374,678

At 31 March 2016

1,249,629

140,926

1,390,555

Cost or valuation at 31 March 2017 is represented by:

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

Valuation in 1998

219,568

-

219,568

Valuation in 2002

197,825

-

197,825

Valuation in 2006

200,000

-

200,000

Cost

943,883

944,663

1,888,546

1,561,276

944,663

2,505,939

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

2017

2016

£

£

Cost

943,883

943,883

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 2016

78,273

Additions

37,483

Transfer to ownership

(12,600

)

At 31 March 2017

103,156

DEPRECIATION

At 1 April 2016

23,171

Charge for year

21,563

Transfer to ownership

(12,600

)

At 31 March 2017

32,134

NET BOOK VALUE

At 31 March 2017

71,022

At 31 March 2016

55,102

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

550,044

567,670

Amounts owed by group undertakings

3,080,890

2,632,845

Other debtors

6,504

8,706

Directors' loan accounts

123,001

-

Prepayments and accrued income

33,450

29,483

3,793,889

3,238,704

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts

1,876,954

1,824,225

Preference shares

26,700

26,700

Hire purchase contracts

19,967

13,734

Trade creditors

168,298

239,670

Social security and other taxes

47,411

36,718

VAT

46,749

21,790

Accrued expenses

124,144

93,208

2,310,223

2,256,045

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Bank loans

684,480

594,416

Preference shares

267,892

267,892

Hire purchase contracts

50,438

39,838

1,002,810

902,146

9.	SECURED DEBTS

The following secured debts are included within creditors:

2017

2016

£

£

Bank overdrafts

1,711,954

1,739,225

Bank loans

849,480

679,416

2,561,434

2,418,641

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.

10.

RESERVES

Revaluation

reserve

£

At 1 April 2016

551,922

Transfer of amount equivalent to additional depreciation on revalued assets

(13,717

)

At 31 March 2017

538,205

11.	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

12.	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.

13.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is John Paton & Son (Holdings) Limited.