ACCOUNTS - Final Accounts preparation

Commitments under operating leases

At 31 December 2017 the Company had future minimum lease payments under non-cancellable operating leases as follows:

SCOTMAZ MACHINE TOOLS LIMITED - Company Information

Caseware UK (AP4) 2016.0.181 2016.0.181 2017-12-312017-12-31The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.truetrueNo description of principal activityfalse2017-01-01 SC081932 2017-01-01 2017-12-31 SC081932 2017-12-31 SC081932 2016-12-31 SC081932 c:CompanySecretary1 2017-01-01 2017-12-31 SC081932 c:Director1 2017-01-01 2017-12-31 SC081932 c:Director2 2017-01-01 2017-12-31 SC081932 c:RegisteredOffice 2017-01-01 2017-12-31 SC081932 c:Agent1 2017-01-01 2017-12-31 SC081932 d:PlantMachinery 2017-01-01 2017-12-31 SC081932 d:PlantMachinery 2017-12-31 SC081932 d:PlantMachinery 2016-12-31 SC081932 d:PlantMachinery d:OwnedOrFreeholdAssets 2017-01-01 2017-12-31 SC081932 d:MotorVehicles 2017-01-01 2017-12-31 SC081932 d:MotorVehicles 2017-12-31 SC081932 d:MotorVehicles 2016-12-31 SC081932 d:MotorVehicles d:OwnedOrFreeholdAssets 2017-01-01 2017-12-31 SC081932 d:FurnitureFittings 2017-01-01 2017-12-31 SC081932 d:FurnitureFittings 2017-12-31 SC081932 d:FurnitureFittings 2016-12-31 SC081932 d:FurnitureFittings d:OwnedOrFreeholdAssets 2017-01-01 2017-12-31 SC081932 d:OwnedOrFreeholdAssets 2017-01-01 2017-12-31 SC081932 d:FreeholdInvestmentProperty 2017-12-31 SC081932 d:FreeholdInvestmentProperty 2016-12-31 SC081932 d:CurrentFinancialInstruments 2017-12-31 SC081932 d:CurrentFinancialInstruments 2016-12-31 SC081932 d:Non-currentFinancialInstruments 2017-12-31 SC081932 d:CurrentFinancialInstruments d:WithinOneYear 2017-12-31 SC081932 d:CurrentFinancialInstruments d:WithinOneYear 2016-12-31 SC081932 d:Non-currentFinancialInstruments d:AfterOneYear 2017-12-31 SC081932 d:ShareCapital 2017-12-31 SC081932 d:ShareCapital 2016-12-31 SC081932 d:RetainedEarningsAccumulatedLosses 2017-12-31 SC081932 d:RetainedEarningsAccumulatedLosses 2016-12-31 SC081932 d:AcceleratedTaxDepreciationDeferredTax 2017-12-31 SC081932 d:AcceleratedTaxDepreciationDeferredTax 2016-12-31 SC081932 c:FRS102 2017-01-01 2017-12-31 SC081932 c:AuditExemptWithAccountantsReport 2017-01-01 2017-12-31 SC081932 c:FullAccounts 2017-01-01 2017-12-31 SC081932 c:PrivateLimitedCompanyLtd 2017-01-01 2017-12-31 SC081932 d:WithinOneYear 2017-12-31 SC081932 d:WithinOneYear 2016-12-31 SC081932 d:BetweenOneFiveYears 2017-12-31 SC081932 d:BetweenOneFiveYears 2016-12-31 iso4217:GBP xbrli:pure

Registered number: SC081932

SCOTMAZ MACHINE TOOLS LIMITED

UNAUDITED

FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 31 DECEMBER 2017

SCOTMAZ MACHINE TOOLS LIMITED

COMPANY INFORMATION

Directors	Scott Russell Hunter
	Colin Walker


Company secretary	Irene Hunter


Registered number	SC081932


Registered office	7 Glentye Road
	Broadleys Industrial Park
	Stirling
	Stirlingshire
	FK7 7LH


Accountants	Findlays
	Chartered Accountants
	11 Dudhope Terrace
	Dundee
	DD3 6TS


Bankers	Clydesdale Bank
	56 Murray Place
	Stirling
	FK7 7LH


Solicitors	Freelands
	36 Muir Street
	Motherwell
	ML1 1BW

SCOTMAZ MACHINE TOOLS LIMITED

CONTENTS

	Page
Accountants' Report	1
Balance Sheet	2 - 3
Notes to the Financial Statements	4 - 11

SCOTMAZ MACHINE TOOLS LIMITED

REPORT TO THE DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF SCOTMAZ MACHINE TOOLS LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2017

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Scotmaz Machine Tools Limited for the year ended 31 December 2017 which comprise the Balance Sheet and the related notes from the Company accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants of Scotland, we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/technical-resources/framework-for-the-preparation-of-accounts-revised-january-2017.

This report is made solely to the Board of Directors of Scotmaz Machine Tools Limited, as a body, in accordance with the terms of our engagement letter dated 23 May 2017. Our work has been undertaken solely to prepare for your approval the financial statements of Scotmaz Machine Tools Limited and state those matters that we have agreed to state to the Board of Directors of Scotmaz Machine Tools Limited, as a body, in this report in accordance with the requirements of the Institute of Chartered Accountants of Scotland as detailed at http://www.icas.com/technical-resources/framework-for-the-preparation-of-accounts-revised-january-2017. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Scotmaz Machine Tools Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Scotmaz Machine Tools 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 or loss of Scotmaz Machine Tools Limited. You consider that Scotmaz Machine Tools Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or review of the financial statements of Scotmaz Machine Tools 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.

Findlays

Chartered Accountants

11 Dudhope Terrace

Dundee

DD3 6TS

10 May 2018

Page 1

SCOTMAZ MACHINE TOOLS LIMITED

REGISTERED NUMBER: SC081932

BALANCE SHEET

AS AT 31 DECEMBER 2017

		2017		2016
Note		£		£

Fixed assets
Tangible assets	4		106,179		96,621
Investment property	5		120,760		120,760
			226,939		217,381
Current assets
Stocks	6	34,392		14,145
Debtors: amounts falling due within one year	7	1,346,384		1,372,992
Cash at bank and in hand	8	184,758		261,791
		1,565,534		1,648,928
Creditors: amounts falling due within one year	9	(516,044)		(599,334)
Net current assets			1,049,490		1,049,594
Total assets less current liabilities			1,276,429		1,266,975
Creditors: amounts falling due after more than one year	10		(26,611)		-
Provisions for liabilities
Deferred tax	11	(12,558)		(19,325)
			(12,558)		(19,325)
Net assets			1,237,260		1,247,650

Capital and reserves
Called up share capital	20,000	20,000
Profit and loss account	1,217,260	1,227,650
	1,237,260	1,247,650

Page 2

SCOTMAZ MACHINE TOOLS LIMITED

REGISTERED NUMBER: SC081932

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2017

The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 10 May 2018.

Scott Russell Hunter

Director

The notes on pages 4 to 11 form part of these financial statements.

Page 3

SCOTMAZ MACHINE TOOLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

1.	General information

Scotmaz Machine Tools Limited is a private company limited by shares, incorporated in Scotland within the United Kingdom (company number SC081932). The address of the registered office is given in the company information page of these financial statements.
The financial statements are presented in sterling which is the functional currency of the company.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

Page 4

SCOTMAZ MACHINE TOOLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

2.Accounting policies (continued)

2.3

Tangible fixed assets

Tangible fixed assets under the cost model, other than investment properties, are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Plant and machinery	-	25%
Motor vehicles	-	25%
Fixtures and fittings	-	10%	(Computer equipment 33.33%)

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income and Retained Earnings.

2.4

Investment property

Investment property is carried at fair value determined annually by the directors and is derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Income and Retained Earnings.

2.5

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Work in progress includes labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.6

Debtors

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

2.7

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 5

SCOTMAZ MACHINE TOOLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

2.Accounting policies (continued)

2.8

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

2.9

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.10

Finance costs

Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.11

Operating leases: the Company as lessor

Rentals income from operating leases is credited to the Statement of Income and Retained Earnings on a straight line basis over the term of the relevant lease.

2.12

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of Income and Retained Earnings on a straight line basis over the lease term.

2.13

Pensions

Defined contribution pension plan

The Company operates a defined contribution 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 in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.14

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Balance Sheet date.

Page 6

SCOTMAZ MACHINE TOOLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

2.Accounting policies (continued)

2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Income and Retained Earnings in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

2.16

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Employees

The average monthly number of employees, including directors, during the year was 12 (2016 - 13).

Page 7

SCOTMAZ MACHINE TOOLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

4.	Tangible fixed assets

	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£
Cost or valuation
At 1 January 2017	131,970	29,805	122,660	284,435
Additions	-	45,445	1,847	47,292
Disposals	-	(11,810)	-	(11,810)
At 31 December 2017	131,970	63,440	124,507	319,917
Depreciation
At 1 January 2017	58,581	19,887	109,346	187,814
Charge for the year on owned assets	18,347	13,023	3,091	34,461
Disposals	-	(8,537)	-	(8,537)
At 31 December 2017	76,928	24,373	112,437	213,738
Net book value
At 31 December 2017	55,042	39,067	12,070	106,179
At 31 December 2016	73,389	9,918	13,314	96,621

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2017	2016
	£	£


Plant and machinery	34,084	73,125
	34,084	73,125

Page 8

SCOTMAZ MACHINE TOOLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

5.	Investment property

		Freehold investment property
		£
	Valuation
	At 1 January 2017	120,760
	At 31 December 2017	120,760

The 2017 valuations were made by the directors, on an open market value for existing use basis.

The investment property was purchased for £120,760; the directors believe this cost is not materially different from the current market value.

6.	Stocks
		2017	2016
		£	£

Stock and work in progress	34,392	14,145
	34,392	14,145

Debtors

					2017	2016
					£	£


Trade debtors	361,128	466,466
Amounts owed by group undertakings	973,232	880,526
Other debtors	12,024	26,000
	1,346,384	1,372,992

8.	Cash and cash equivalents
		2017	2016
		£	£

Cash at bank and in hand	184,758	261,791
	184,758	261,791

Page 9

SCOTMAZ MACHINE TOOLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

9.	Creditors: Amounts falling due within one year
		2017	2016
		£	£

Trade creditors	405,717	380,695
Corporation tax	6,696	48,675
Other taxation and social security	86,129	126,817
Obligations under finance lease and hire purchase contracts	7,108	29,032
Other creditors	95	8,811
Accruals and deferred income	10,299	5,304
	516,044	599,334

10.	Creditors: Amounts falling due after more than one year
		2017	2016
		£	£

Net obligations under finance leases and hire purchase contracts	26,611	-
	26,611	-

11.	Deferred taxation

		2017
		£

	At beginning of year	(19,325)
	Charged to profit or loss	6,767
	At end of year	(12,558)

The provision for deferred taxation is made up as follows:
	2017	2016
	£	£

	Accelerated capital allowances	(12,558)	(19,325)
		(12,558)	(19,325)

Page 10

SCOTMAZ MACHINE TOOLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

12.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £12,629 (2016 - £14,549).

Not later than 1 year	32,901	1,048
Later than 1 year and not later than 5 years	7,370	74,248
	40,271	75,296

14.	Controlling party

The company is a wholly owned subsidiary of McDowell Engineering Limited, a company incorporated in Scotland whose registered office is 7 Glentye Road, Broadleys Industrial Park, Stirling, FK7 7LH.

Page 11