Company Registration No. SC230212 (Scotland)
LOCH NESS GIFTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
PAGES FOR FILING WITH REGISTRAR
LOCH NESS GIFTS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
LOCH NESS GIFTS LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2021
28 February 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
4
241,742
249,178
Investment properties
5
79,800
79,800
321,542
328,978
Current assets
Stocks
86,963
100,327
Debtors
6
3,417
542
Cash at bank and in hand
57,297
79,984
147,677
180,853
Creditors: amounts falling due within one year
7
(17,892)
(99,067)
Net current assets
129,785
81,786
Total assets less current liabilities
451,327
410,764
Creditors: amounts falling due after more than one year
8
(41,602)
(2,368)
Provisions for liabilities
Deferred tax liability
14,411
13,053
(14,411)
(13,053)
Net assets
395,314
395,343
Capital and reserves
Called up share capital
9
2
2
Profit and loss reserves
395,312
395,341
Total equity
395,314
395,343
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
LOCH NESS GIFTS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
28 FEBRUARY 2021
28 February 2021
- 2 -
For the financial year ended 28 February 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 30 July 2021 and are signed on its behalf by:
I Miller
Director
Company Registration No. SC230212
LOCH NESS GIFTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 3 -
1
Accounting policies
Company information
Loch Ness Gifts Limited (SC230212) is a private company limited by shares incorporated in Scotland. The registered office is Loch Ness Gifts. The Green, DRUMNADROCHIT, IV63 6TX.
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.
These financial statements are prepared under the historical cost convention. The principal accounting policies adopted are set out below.
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 £.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future.
Further, the directors recognise that there are ongoing risks and uncertainties in respect of the COVID-19 pandemic that could have an impact on future results. The extent of any future government imposed restrictions may have an impact on the company's ability to trade profitably. However, the directors will continue to assess all forms of financial support available, should this be required, and will take all necessary actions to mitigate any impact on the company as far as possible.
Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
LOCH NESS GIFTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
1
Accounting policies
(Continued)
- 4 -
1.5
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.
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Freehold land and buildings
2% straight line
Plant & Machinery
20% reducing balance
Fixtures, fittings & equipment
15% straight line
Computer equipment
25% reducing balance
1.6
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.
The surplus or deficit on revaluation is recognised in the profit and loss account.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials
.
At each reporting date, an assessment is made for impairment.
1.9
Cash at bank and in hand
Cash and cash equivalents
are basic financial assets
and
include
cash at bank, cash in hand
and bank overdrafts.
1.10
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method
.
Impairment of financial assets
Financial assets
are assessed for indicators of impairment at each reporting end date.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled
.
LOCH NESS GIFTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans
are
initially recognised at transaction price
and are subsequently carried at amortised cost, using the effective interest rate method
.
Financial liabilities classified as payable within one year are not amortised.
1.11
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.
1.12
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
.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled. 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.
1.13
Employee benefits
The costs of short-term employee benefits are recognised
in the period in which the employee's services are received.
1.14
Retirement benefits
During the year the company made pension contributions to the personal pension plans of the directors. Contributions payable are charged to the profit and loss account in the year they are payable.
1.15
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.16
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.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred
. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
LOCH NESS GIFTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 6 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 7 (2020 - 7
).
3
Intangible fixed assets
Goodwill
£
Cost
At 1 March 2020
30,000
Disposals
(30,000)
At 28 February 2021
Amortisation and impairment
At 1 March 2020
30,000
Disposals
(30,000)
At 28 February 2021
Carrying amount
At 28 February 2021
At 29 February 2020
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 March 2020
325,060
40,047
365,107
Additions
595
595
At 28 February 2021
325,060
40,642
365,702
Depreciation and impairment
At 1 March 2020
79,288
36,641
115,929
Depreciation charged in the year
6,501
1,530
8,031
At 28 February 2021
85,789
38,171
123,960
Carrying amount
At 28 February 2021
239,271
2,471
241,742
At 29 February 2020
245,772
3,406
249,178
LOCH NESS GIFTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 7 -
5
Investment property
2021
£
Fair value
At 1 March 2020 and 28 February 2021
79,800
The investment property was valued at £79,800 by the directors on 28 February 2021 at an open market rate. The directors believe this to be fair value as at 28 February 2021.
6
Debtors
2021
2020
Amounts falling due within one year:
£
£
Other debtors
3,417
542
7
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans
8,398
51,964
Trade creditors
150
1,005
Corporation tax
3,337
17,197
Other taxation and social security
2,398
7,355
Other creditors
3,609
21,546
17,892
99,067
The Business Term Loan was secured via a bond and floating charge over the full assets of the company.
8
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
41,602
2,368
The Business Term Loan was secured via a bond and floating charge over the full assets of the company.
9
Called up share capital
2021
2020
£
£
Issued and fully paid
2 Ordinary shares of £1 each
2
2
LOCH NESS GIFTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 8 -
10
Events after the reporting date
The directors continue to carefully monitor the risks and uncertainties arising from the
COVID-19
pandemic, but believe the business is well placed to take action, should this be required, to mitigate the effects of any issues that may arise.