REGISTERED NUMBER: SC278348 (Scotland)

Report of the Directors and

Unaudited Consolidated Financial Statements for the Year Ended 31 October 2018

for

3DReid Limited

Page

Company Information

1

Report of the Directors

2

Consolidated Statement of Comprehensive Income

3

Consolidated Balance Sheet

4

Company Balance Sheet

6

Consolidated Statement of Changes in Equity

8

Company Statement of Changes in Equity

9

Notes to the Consolidated Financial Statements

10

DIRECTORS:

R C Graham-Marr

C MacDonald

M H Taylor

G B S Turnbull

REGISTERED OFFICE:

45 West Nile Street

Glasgow

G1 2PT

REGISTERED NUMBER:

SC278348 (Scotland)

ACCOUNTANTS:

McLay McAlister & McGibbon LLP

Chartered Accountants

145 St Vincent Street

Glasgow

G2 5JF

The directors present their report with the financial statements of the company and the group for the year ended

31 October 2018.

REVIEW OF BUSINESS

The Directors of the business delivered a fee income of £9,133,659 (2017: £9,998,400), despite significant external

commercial challenges, which after adjusting the carrying values within the balance sheet in respect of work in progress

and debtors resulted in a reduced operating profit for the year of £168,258 (2017: £212,611).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 November 2017 to the date of this

report.

R C Graham-Marr

C MacDonald

M H Taylor

G B S Turnbull

Other changes in directors holding office are as follows:

M Anders - resigned 29 December 2017

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

M H Taylor - Director

29 March 2019

TURNOVER

9,133,659

9,998,400

Administrative expenses

(8,979,301

)

(9,790,422

)

154,358

207,978

Other operating income

13,900

4,633

OPERATING PROFIT

4

168,258

212,611

Interest payable and similar expenses

(59,660

)

(78,589

)

PROFIT BEFORE TAXATION

108,598

134,022

Tax on profit

5

(46,184

)

(68,116

)

PROFIT FOR THE FINANCIAL YEAR

62,414

65,906

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

62,414

65,906

Profit attributable to:

Owners of the parent

62,414

65,906

Total comprehensive income attributable to:

Owners of the parent

62,414

65,906

FIXED ASSETS

Intangible assets

7

145,568

242,613

Tangible assets

8

148,187

233,610

Investments

9

25,000

25,000

318,755

501,223

CURRENT ASSETS

Stocks

320,244

221,881

Debtors

10

3,262,147

3,455,426

Cash at bank and in hand

560,432

528,246

4,142,823

4,205,553

CREDITORS

Amounts falling due within one year

11

(2,024,423

)

(2,099,231

)

NET CURRENT ASSETS

2,118,400

2,106,322

TOTAL ASSETS LESS CURRENT LIABILITIES

2,437,155

2,607,545

CREDITORS

Amounts falling due after more than one year

12

(567,367

)

(792,371

)

PROVISIONS FOR LIABILITIES

-

(7,800

)

NET ASSETS

1,869,788

1,807,374

CAPITAL AND RESERVES

Called up share capital

1,045,000

1,045,000

Share premium

812,200

812,200

Retained earnings

12,588

(49,826

)

SHAREHOLDERS' FUNDS

1,869,788

1,807,374

The company and the group are entitled to exemption from audit under Section 477 of the Companies Act 2006 for the

year ended 31 October 2018.

The members have not required the company and the group to obtain an audit of its financial statements for the year

ended 31 October 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the group 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 and the group as at the end of each financial year and of the group's 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 and the group.

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006

relating to small companies.

The financial statements were approved by the Board of Directors on 29 March 2019 and were signed on its behalf by:

M H Taylor - Director

FIXED ASSETS

Intangible assets

7

145,568

242,613

Tangible assets

8

64,247

138,062

Investments

9

25,320

25,320

235,135

405,995

CURRENT ASSETS

Debtors

10

3,188,548

3,261,717

Cash at bank

489,103

485,573

3,677,651

3,747,290

CREDITORS

Amounts falling due within one year

11

(1,538,712

)

(1,617,940

)

NET CURRENT ASSETS

2,138,939

2,129,350

TOTAL ASSETS LESS CURRENT LIABILITIES

2,374,074

2,535,345

CREDITORS

Amounts falling due after more than one year

12

(530,300

)

(741,404

)

NET ASSETS

1,843,774

1,793,941

CAPITAL AND RESERVES

Called up share capital

1,045,000

1,045,000

Share premium

812,200

812,200

Retained earnings

(13,426

)

(63,259

)

SHAREHOLDERS' FUNDS

1,843,774

1,793,941

Company's profit for the financial year

49,833

52,473

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their 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 in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 29 March 2019 and were signed on its behalf by:

M H Taylor - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 November 2016

1,045,000

(115,732

)

812,200

1,741,468

Changes in equity

Total comprehensive income

-

65,906

-

65,906

Balance at 31 October 2017

1,045,000

(49,826

)

812,200

1,807,374

Changes in equity

Total comprehensive income

-

62,414

-

62,414

Balance at 31 October 2018

1,045,000

12,588

812,200

1,869,788

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 November 2016

1,045,000

(115,732

)

812,200

1,741,468

Changes in equity

Total comprehensive income

-

52,473

-

52,473

Balance at 31 October 2017

1,045,000

(63,259

)

812,200

1,793,941

Changes in equity

Total comprehensive income

-

49,833

-

49,833

Balance at 31 October 2018

1,045,000

(13,426

)

812,200

1,843,774

1.	STATUTORY INFORMATION

3DReid 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 General 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 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.

Basis of consolidation

The group financial statements incorporate 3DReid Limited and its subsidiaries made up to 31

October 2018.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the

financial statements.

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, being the amount paid in connection with the acquisition of a business in 2007, is being amortised

evenly over its estimated useful life. The economic useful life has been reviewed by the directors and is

considered to be 10 years from 1 May 2010.

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.

Fixtures and fittings

-

33% on cost, 25% on cost and over the term of the lease

Computer equipment

-

33% on cost

Financial instruments

Debtors

Trade debtors and other debtors are recognised at the settlement amount due with appropriate allowances for any

irrecoverable amounts when there is objective evidence the asset is impaired.

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand.

Creditors

Trade creditors and other creditors are recognised where the company has a present obligation resulting from a

past event and are recognised at the settlement amount due after allowing for any trade discounts due.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at

the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme

are charged to profit or loss in the period to which they relate.

Investments

Fixed asset investments are stated at cost less provision for diminution in value.

Going concern

3DReid manages its business with appropriate financial KPI's in place to secure workload, monitor resources,

profitability and cash flow and continues to maintain headroom to meet its financial obligations.

The Group finances its activities through the use of long term bank loans and other third party funding.

Given the information presented, the Directors continue to adopt a going concern basis in preparing the financial

statements.

Critical accounting judgements and estimates

The preparation of these financial statements requires the directors to make judgements, estimates and

assumptions that affect the application of policies and reported amounts of assets and liabilities, income and

expenses. Judgements and estimates are continually evaluated and are based on historical experiences and other

factors, including expectations of future events that are believed to be reasonable under the circumstances.

The company makes estimates and assumptions concerning the future. The estimates and assumptions that have a

significant risk of causing a material adjustment to the carrying amounts of asset and liabilities within the next

financial year are discussed below:

Work in Progress

Work in progress is valued at cost of all direct expenditure plus attributable fixed and variable overheads less

any provision for foreseeable losses.

Revenue Recognition

Revenue is recognised to the extent that it is probable that the financial benefits will flow to the Practice and the

revenue can be readily measured. Turnover from the fees for architectural services is recognised by reference to

stage payments. The stage of where a contract is at is determined either by reference to the estimate of the fee

drawdown, evaluation of the proportion of fees in relation to milestones and the proportion of WIP valued,

depending on the nature of the underlying contract.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 11 (2017 - 11 ) .

The average number of employees by undertakings that were proportionately consolidated during the year was

124 (2017 - 138 ) .

4.	OPERATING PROFIT

The operating profit is stated after charging:

31.10.18

31.10.17

£

£

Depreciation - owned assets

45,416

36,475

Depreciation - assets on hire purchase contracts

53,241

56,196

Goodwill amortisation

97,045

97,046

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.10.18

31.10.17

£

£

Current tax:

UK corporation tax

56,684

69,616

Deferred tax

(10,500

)

(1,500

)

Tax on profit

46,184

68,116

6.	INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent

company is not presented as part of these financial statements.

7.	INTANGIBLE FIXED ASSETS

Group

Goodwill

£

COST

At 1 November 2017

and 31 October 2018

2,771,065

AMORTISATION

At 1 November 2017

2,528,452

Charge for year

97,045

At 31 October 2018

2,625,497

NET BOOK VALUE

At 31 October 2018

145,568

At 31 October 2017

242,613

Company

Goodwill

£

COST

At 1 November 2017

and 31 October 2018

2,771,065

AMORTISATION

At 1 November 2017

2,528,452

Charge for year

97,045

At 31 October 2018

2,625,497

NET BOOK VALUE

At 31 October 2018

145,568

At 31 October 2017

242,613

Goodwill arose on the purchase of Geoffrey Reid Associates Limited in 2007. The economic useful life has been

reviewed by the directors and is considered to be 10 years from 1 May 2010. In the opinion of the directors, this

is an estimate of the period over which the benefits will be derived.

8.	TANGIBLE FIXED ASSETS

Group

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 November 2017

1,024,674

854,010

1,878,684

Additions

7,225

6,009

13,234

At 31 October 2018

1,031,899

860,019

1,891,918

DEPRECIATION

At 1 November 2017

871,407

773,667

1,645,074

Charge for year

42,318

56,339

98,657

At 31 October 2018

913,725

830,006

1,743,731

NET BOOK VALUE

At 31 October 2018

118,174

30,013

148,187

At 31 October 2017

153,267

80,343

233,610

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

Computer

equipment

£

COST

At 1 November 2017

168,622

Transfer to ownership

(44,408

)

At 31 October 2018

124,214

DEPRECIATION

At 1 November 2017

91,039

Charge for year

53,241

Transfer to ownership

(44,408

)

At 31 October 2018

99,872

NET BOOK VALUE

At 31 October 2018

24,342

At 31 October 2017

77,583

Company

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 November 2017

924,972

854,010

1,778,982

Additions

-

2,709

2,709

At 31 October 2018

924,972

856,719

1,781,691

DEPRECIATION

At 1 November 2017

867,253

773,667

1,640,920

Charge for year

21,286

55,238

76,524

At 31 October 2018

888,539

828,905

1,717,444

NET BOOK VALUE

At 31 October 2018

36,433

27,814

64,247

At 31 October 2017

57,719

80,343

138,062

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

Computer

equipment

£

COST

At 1 November 2017

168,622

Transfer to ownership

(44,408

)

At 31 October 2018

124,214

DEPRECIATION

At 1 November 2017

91,039

Charge for year

53,241

Transfer to ownership

(44,408

)

At 31 October 2018

99,872

NET BOOK VALUE

At 31 October 2018

24,342

At 31 October 2017

77,583