Company registration number SC198237 (Scotland)
KIC (HOLDINGS) LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
PAGES FOR FILING WITH REGISTRAR
KIC (HOLDINGS) LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
KIC (HOLDINGS) LTD
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
4
11,040,498
10,916,207
Investment properties
5
1,155,000
1,714,000
Investments
6
1,712,404
1,709,503
13,907,902
14,339,710
Current assets
Stocks
17,418
18,151
Debtors
8
4,222,507
4,065,620
Cash at bank and in hand
307,780
83,285
4,547,705
4,167,056
Creditors: amounts falling due within one year
9
(224,553)
(292,080)
Net current assets
4,323,152
3,874,976
Total assets less current liabilities
18,231,054
18,214,686
Creditors: amounts falling due after more than one year
10
(2,077,268)
(2,162,772)
Provisions for liabilities
(440,860)
(349,152)
Net assets
15,712,926
15,702,762
Capital and reserves
Called up share capital
11
1,003
1,003
Share premium account
4,945,766
4,945,766
Capital redemption reserve
810
810
Profit and loss reserves
10,765,347
10,755,183
Total equity
15,712,926
15,702,762
KIC (HOLDINGS) LTD
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2021
31 December 2021
- 2 -
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 28 September 2022 and are signed on its behalf by:
Mr J W S P Morrison
Director
Company Registration No. SC198237
KIC (HOLDINGS) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
1
Accounting policies
Company information
KIC (Holdings) Ltd is a
private
company
limited by shares
incorporated in
Scotland
.
The registered office is
Kincardine House, Aberargie, Perth, United Kingdom, PH2 9LX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The
financial statements
present information about the company as an individual entity and not about its group
.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover represents income received from farming, the letting of property and land, whisky sales, together with wayleaves and feu duties.
1.3
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% on straight line
Plant and equipment
25% on reducing balance and 5% on reducing balance
Fixtures and fittings
25% on reducing balance
Motor vehicles
25% on reducing balance
Freehold land is not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
KIC (HOLDINGS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 4 -
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure
. Subsequently it is measured
at fair value a
t
the reporting end date.
Changes in fair value are recognised in profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
KIC (HOLDINGS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 5 -
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.
Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date 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 recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
KIC (HOLDINGS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 6 -
1.11
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.12
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.13
Foreign exchange
Transactions in currencies other than
pounds sterling
are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons employed by the company during the year was:
2021
2020
Number
Number
Total
KIC (HOLDINGS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
4
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2021
9,540,052
1,774,109
131,376
4,276
11,449,813
Additions
161,259
210,936
372,195
Disposals
(10,272)
(10,272)
At 31 December 2021
9,701,311
1,985,045
121,104
4,276
11,811,736
Depreciation and impairment
At 1 January 2021
278,057
191,080
61,997
2,472
533,606
Depreciation charged in the year
140,907
85,079
15,971
451
242,408
Eliminated in respect of disposals
(4,776)
(4,776)
At 31 December 2021
418,964
276,159
73,192
2,923
771,238
Carrying amount
At 31 December 2021
9,282,347
1,708,886
47,912
1,353
11,040,498
At 31 December 2020
9,261,995
1,583,029
69,379
1,804
10,916,207
Assets under construction at a cost of £nil (2020 - £2,297,767) are included in land and property. These assets are not depreciated.
Assets under construction at a cost of £360,339 (2020 - £149,404) are included in plant and equipment. These assets are not depreciated.
5
Investment property
2021
£
Fair value
At 1 January 2021
1,714,000
Disposals
(559,000)
At 31 December 2021
1,155,000
Investment property is valued on an open market value basis by reference to market evidence of transaction prices for similar properties. Sales of similar properties were made during the accounting period and so the amounts obtained for these were deemed suitable as valuations for the remaining properties.
KIC (HOLDINGS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
6
Fixed asset investments
2021
2020
£
£
Shares in group undertakings and participating interests
1,712,402
1,709,501
Other investments other than loans
2
2
1,712,404
1,709,503
Movements in fixed asset investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2021
1,709,501
2
1,709,503
Additions
2,901
-
2,901
At 31 December 2021
1,712,402
2
1,712,404
Carrying amount
At 31 December 2021
1,712,402
2
1,712,404
At 31 December 2020
1,709,501
2
1,709,503
7
Subsidiaries
Details of the company's subsidiaries at 31 December 2021 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
KIC Inventories Limited
Kincardine House, Aberargie, Perth, Scotland, PH2 9LX
Ordinary
100.00
Morrison Scotch Whisky Distillers Limited
Kincardine House, Aberargie, Perth, Scotland, PH2 9LX
Ordinary
100.00
The Perth Distilling Company Limited
Kincardine House, Aberargie, Perth, Scotland, PH2 9LX
Ordinary
100.00
Grange Mains Farm Limited
Kincardine House, Aberargie, Perth, Scotland, PH2 9LX
Ordinary
100.00
8
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
329,886
158,514
Corporation tax recoverable
7,150
Other debtors
3,870,138
3,891,106
4,207,174
4,049,620
KIC (HOLDINGS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
8
Debtors
(Continued)
- 9 -
2021
2020
Amounts falling due after more than one year:
£
£
Other debtors
15,333
16,000
Total debtors
4,222,507
4,065,620
9
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
66,293
180,612
Corporation tax
32,211
Other creditors
126,049
111,468
224,553
292,080
10
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
2,020,000
2,020,000
Other creditors
57,268
142,772
2,077,268
2,162,772
A standard security over the farm land at Laurencekirk has been granted to AMC plc as security for the bank loan.
Creditors which fall due after five years are as follows:
2021
2020
£
£
Payable other than by instalments
2,020,000
2,020,000
11
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
823
823
823
823
Ordinary B of £1 each
180
180
180
180
1,003
1,003
1,003
1,003
KIC (HOLDINGS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
12
Related party transactions
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.
true
13
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Director's loan account
2.00
761
-
16
-
777
Director's loan account
2.00
16,901
126,180
443
(122,301)
21,223
17,662
126,180
459
(122,301)
22,000
14
Parent company
The parent company is Kincardine Limited.
The ultimate controlling party is Mrs K B M C Morrison.