Company Registration No. SC340005 (Scotland)
NEW ISLA LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
PAGES FOR FILING WITH REGISTRAR
NEW ISLA LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
NEW ISLA LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2020
30 September 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Investments
3
14,799,359
15,221,826
Current assets
Cash at bank and in hand
100,401
115,774
Creditors: amounts falling due within one year
4
(115,876)
(96,099)
Net current (liabilities)/assets
(15,475)
19,675
Total assets less current liabilities
14,783,884
15,241,501
Capital and reserves
Called up share capital
5
27,099,884
27,099,884
Profit and loss reserves
(12,316,000)
(11,858,383)
Total equity
14,783,884
15,241,501
The directors of the company have elected not to include a copy of the profit and loss account 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 30 June 2021 and are signed on its behalf by:
R J Paterson
Director
Company Registration No. SC340005
NEW ISLA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 2 -
1
Accounting policies
Company information
New Isla Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Gogar Mains Estate Office, Gogar Mains House, Gogar Mains Farm Road, Edinburgh, United Kingdom, EH12 9BP.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has reported a loss for the year but as its recurring expenditure is limited it has sufficient resources to continue in operation for the foreseeable future.
true
However, in light of recent events surrounding the Covid-19 pandemic, in common with most companies in the UK it is difficult to predict what impact this may have on the economy as a whole and the company’s business in particular.
Although it is not possible to reliably estimate the length or severity of the outbreak, at the date of signing these financial statements the company has significant cash reserves, net current assets and is continuing to trade. The directors are actively managing the business on a day to day basis taking account of all changes in market conditions and government support and interventions.
While the directors are confident that the business will not be significantly impacted by the pandemic, they have considered the impact of a potential reduction in income and cost cutting and cash preserving measures have been adopted to minimise the impact of any downturn in trade during this difficult period.
The directors consider that the current strong financial position of the company, together with prudent management and government assistance in place to assist all companies in the coming months, will ensure that the company will continue in operational existence for the foreseeable future and they therefore continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Fixed asset investments
Interests in associates 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.
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.
1.4
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.
NEW ISLA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 3 -
1.5
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
.
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 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.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 creditors, 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 creditors
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 creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
NEW ISLA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 4 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.6
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
6
6
3
Fixed asset investments
2020
2019
£
£
Investments in associates
14,799,359
15,221,826
Movements in fixed asset investments
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 October 2019 & 30 September 2020
31,133,420
Impairment
At 1 October 2019
15,911,594
Impairment losses
422,467
At 30 September 2020
16,334,061
Carrying amount
At 30 September 2020
14,799,359
At 30 September 2019
15,221,826
NEW ISLA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 5 -
4
Creditors: amounts falling due within one year
2020
2019
£
£
Amounts owed to group undertakings and undertakings in which the company has a participating interest
91,516
91,375
Other creditors
24,360
4,724
115,876
96,099
5
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
611,375 Ordinary shares of £1 each
611,375
611,375
Preference share capital
Issued and fully paid
26,488,509 Preference shares of £1 each
26,488,509
26,488,509
6
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 Paul Hutchison BSc ACA.
The auditor was Azets Audit Services.