Company Registration No. SC314612 (Scotland)
CLAONAIG ESTATE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
PAGES FOR FILING WITH REGISTRAR
CLAONAIG ESTATE LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
CLAONAIG ESTATE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
5
8,343,207
8,322,506
Current assets
Inventories
30,000
14,900
Trade and other receivables
6
37,539
4,824
Cash and cash equivalents
297,251
26,932
364,790
46,656
Current liabilities
7
(227,536)
(131,690)
Net current assets/(liabilities)
137,254
(85,034)
Net assets
8,480,461
8,237,472
Equity
Called up share capital
4,700,001
4,700,001
Revaluation reserve
8
1,982,845
2,327,563
Equity reserve
9
2,222,979
1,824,702
Retained earnings
10
(425,364)
(614,794)
Total equity
8,480,461
8,237,472
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
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 12 December 2022 and are signed on its behalf by:
Mr Stewart Marshall
Director
Company Registration No. SC314612
CLAONAIG ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
1
Accounting policies
Company information
Claonaig Estate Limited is a
private
company
limited by shares
incorporated in
Scotland
.
The registered office is
The Old Surgery, School Road, Tarbert, Argyll, PA29 6UL.
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 Land and Buildings, Plant and Machinery and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
true
The directors have reviewed forecasts and accept that, in the short-term, continued operational losses will occur and that these, along with projected capital spending, will require to be fully funded by the parent company.
The directors continue to look for additional funding opportunities to assist with cash flow but have committed to supporting the company and confirm the parent company’s ability to do this.
Note
10
– Equity Reserve shows the support given to date and this figure will continue to rise in the short-term.
The
directors continue to adopt the going concern basis of accounting in preparing the financial statements
.
1.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for
the sale of livestock and associated farm activities
and
providing
services
(including shooting)
provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
Revenue from the sale of
livestock and other farm activity
is recognised when the significant risks and rewards of ownership of
livestock and other goods
have passed to the buyer
(usually on sale of livestock)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of
shoots is recognised when times and dates have been agreed with customers.
CLAONAIG ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 3 -
1.4
Property, plant and equipment
Property, plant and equipment
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:
Land
Not depreciated
Plant and machinery
25% reducing balance
Deer fencing
25% reducing balance
Shooting equipment
Not depreciated
Motor vehicles
20% reducing balance
Freehold land and assets in the course of construction are 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
.
1.5
Impairment of non-current 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. 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.
1.6
Inventories
Inventories 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 inventories to their present location and condition.
Inventories held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
CLAONAIG ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 4 -
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
trade and other receivables
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 unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
trade and other payables
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade payables
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade payables
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
CLAONAIG ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 5 -
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
2021
2020
Number
Number
Total
4
4
4
Intangible fixed assets
Other
£
Cost
At 1 January 2021
47,999
Disposals
(47,999)
At 31 December 2021
Amortisation and impairment
At 1 January 2021
47,999
Disposals
(47,999)
At 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020
CLAONAIG ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 6 -
5
Property, plant and equipment
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 January 2021
8,145,059
357,528
8,502,587
Additions
548,611
41,929
590,540
Disposals
(13,166)
(13,166)
Revaluation
(520,000)
(520,000)
At 31 December 2021
8,173,670
386,291
8,559,961
Depreciation and impairment
At 1 January 2021
8,238
171,843
180,081
Depreciation charged in the year
5,492
35,340
40,832
Eliminated in respect of disposals
(4,159)
(4,159)
At 31 December 2021
13,730
203,024
216,754
Carrying amount
At 31 December 2021
8,159,940
183,267
8,343,207
At 31 December 2020
8,136,821
185,685
8,322,506
At the balance sheet date, the cost of property under construction totalled £1,126,805.
Forest and other
Land
with a carrying amount of
£4,166,293
were revalued at
29 September 2020
by
Scottish Woodlands
, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar proper
ty and land
.
Buildings and plots with a carrying amount of £1,056,317 were revalued at 6 November 2020 by A T M Aitchison BLE MRICS, Director of Strutt & Parker,
independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar pr
operty.
In 2021 three properties had their carrying value reduced by £520,000 (of which £119,586 is reflected in the above revaluation) to reflect their open market value as at 31 December 2021.
The revaluation deficit/(surplus) is disclosed in note 8.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
CLAONAIG ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
5
Property, plant and equipment
(Continued)
- 7 -
Land & Buildings
2021
2020
£
£
Cost
6,376,868
5,828,257
Accumulated depreciation
(13,730)
(8,238)
Carrying value
6,363,138
5,820,019
6
Trade and other receivables
2021
2020
Amounts falling due within one year:
£
£
Trade receivables
14,167
895
Other receivables
23,372
3,929
37,539
4,824
7
Current liabilities
2021
2020
£
£
Trade payables
67,656
67,871
Amounts owed to group undertakings
141,203
54,277
Other payables
18,677
9,542
227,536
131,690
8
Revaluation reserve
2021
2020
£
£
At the beginning of the year
2,327,563
10,761
Revaluation (deficit) / surplus arising in the year
(344,718)
2,316,802
At the end of the year
1,982,845
2,327,563
CLAONAIG ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
9
Equity reserve
2021
2020
£
£
At the beginning of the year
1,824,702
1,500,000
Arising in the year
398,277
324,702
At the end of the year
2,222,979
1,824,702
The amount of £398,277 (2020 - £324,702) represents a reclassification of loans made during the year by the parent company as a capital contribution.
10
Retained earnings
2021
2020
£
£
At the beginning of the year
(614,794)
(415,039)
Profit/(loss) for the year
189,430
(199,755)
At the end of the year
(425,364)
(614,794)
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Neil Reid FCCA and the auditor was William Duncan + Co (Audit) Ltd.
12
Directors' transactions
Dividends totalling £0 (2020 - £0) were paid in the year in respect of shares held by the company's directors.
13
Parent company
The Parent (and ultimate controlling party) of the company is Bagger-Sorensen & Co. A/S, a company registered in Denmark at Lysholt Alle 10, DK-7000 Vejle, Denmark. It's principal place of business was also at this address.