Company Registration No. SC510252 (Scotland)
PITREADIE FARM LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2018
PAGES FOR FILING WITH REGISTRAR
PITREADIE FARM LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
PITREADIE FARM LIMITED
BALANCE SHEET
AS AT
31 JULY 2018
31 July 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Intangible assets
3
100,683
53,000
Tangible assets
4
7,924,146
1,706,397
8,024,829
1,759,397
Current assets
Stocks
5
233,366
28,940
Debtors
6
198,951
28,505
Cash at bank and in hand
19,110
310
451,427
57,755
Creditors: amounts falling due within one year
7
(535,372)
(1,756,200)
Net current liabilities
(83,945)
(1,698,445)
Total assets less current liabilities
7,940,884
60,952
Creditors: amounts falling due after more than one year
8
(8,199,310)
(46,339)
Net (liabilities)/assets
(258,426)
14,613
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
(258,526)
14,513
(258,426)
14,613
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 July 2018 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.
PITREADIE FARM LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 JULY 2018
31 July 2018
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 2 August 2019 and are signed on its behalf by:
L CROSS
L Cross
Director
Company Registration No. SC510252
PITREADIE FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2018
- 3 -
1
Accounting policies
Company information
Pitreadie Farm Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
14 Loirsbank Road, Cults, Aberdeen, AB15 9NE.
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 have been prepared with early application of
the
FRS 102 Triennial Review 2017 amendments in full.
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.
1.2
Going concern
These financial statements are prepared on a going concern basis. At the balance sheet date, the
company had net
liabilities of £258,426
. Included within these liabilities are amounts due
to
related
parties of £
4,286,343.
The financial statements are prepared on a going concern basis which assumes that
the company will continue to meet its liabilities as they fall due. Furthermore, the directors have confirmed
they shall continue to support the company to facilitate its ability to continue trading as a going concern for
the foreseeable future. As a result, the director
s
ha
ve
a reasonable expectation that the company will
continue in operational existence for the foreseeable future
.
1.3
Turnover
Revenue comprises farming subsidies and livestock sales. Revenue
is
ecognised in the period
to which
it relates.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful
life.
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.
PITREADIE FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2018
1
Accounting policies
(Continued)
- 4 -
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
Nil and 5% straight line
Plant and equipment
10% straight line
Fencing
10% straight line
Motor vehicles
25% declining balance
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
.
1.6
Biological assets
Biological
assets
are recognised
only when three recognition criteria have been fulfilled:
-
the entity has control over the asset as a result of past events;
-
it is probable that future economic benefits associated with the asset will flow to the entity; and
-
the fair value or cost of the asset can be measured reliably.
The company measures biological assets at cost less accumulated depreciation and accumulated impairment losses.
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 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 replacement cost and 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
Cash at bank and in hand
Cash at bank and in hand
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.
1.9
Financial instruments
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade debtors and creditors. These are measured at amortised cost and are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
PITREADIE FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2018
1
Accounting policies
(Continued)
- 5 -
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 2 (2017 - 2).
3
Intangible fixed assets
Payment Entitlement
£
Cost
At 1 August 2017
53,000
Additions
87,500
At 31 July 2018
140,500
Amortisation and impairment
At 1 August 2017
-
Amortisation charged for the year
39,817
At 31 July 2018
39,817
Carrying amount
At 31 July 2018
100,683
At 31 July 2017
53,000
PITREADIE FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2018
- 6 -
4
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fencing
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 August 2017
1,594,394
89,666
11,620
17,650
1,713,330
Additions
5,515,403
699,375
122,068
69,770
6,406,616
Disposals
-
(141,600)
-
-
(141,600)
At 31 July 2018
7,109,797
647,441
133,688
87,420
7,978,346
Depreciation and impairment
At 1 August 2017
411
1,014
980
4,528
6,933
Depreciation charged in the year
11,089
22,901
4,562
11,402
49,954
Eliminated in respect of disposals
-
(2,687)
-
-
(2,687)
At 31 July 2018
11,500
21,228
5,542
15,930
54,200
Carrying amount
At 31 July 2018
7,098,297
626,213
128,146
71,490
7,924,146
At 31 July 2017
1,593,983
88,652
10,640
13,122
1,706,397
5
Stocks
2018
2017
£
£
Stocks
233,366
28,940
6
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
300
-
Other debtors
153,748
26,313
Prepayments and accrued income
44,903
2,192
198,951
28,505
PITREADIE FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2018
- 7 -
7
Creditors: amounts falling due within one year
2018
2017
£
£
Obligations under finance leases
106,671
23,169
Trade creditors
409,541
7,343
Taxation and social security
604
-
Other creditors
136
1,723,188
Accruals and deferred income
18,420
2,500
535,372
1,756,200
8
Creditors: amounts falling due after more than one year
2018
2017
Notes
£
£
Bank loans and overdrafts
9
3,600,000
-
Obligations under finance leases
235,494
46,339
Other borrowings
9
4,286,343
-
Accruals and deferred income
77,473
-
8,199,310
46,339
9
Loans and overdrafts
2018
2017
£
£
Bank loans
3,600,000
-
Other loans
4,286,343
-
7,886,343
-
Payable after one year
7,886,343
-
The long-term loans are secured by a Bond and Floating Charge over the property of Pitreadie Farm Limited; a standard security over land at Pitreadie Farm, Banchory; a standard security over the land at Tipperty Farm. There is also a guarantee made by L Cross, a director, of £150,000 as well as the postponement of her directors loan.
Borrowings take the form of 2 Bank of Scotland loans of £1.8m. These are interest only loans which will mature in 5 years.
Other loans are long term directors loans. These are not repayable on demand as they are postponed as per the terms of the security of the bank loans. No interest has been charged on this due to the early adoption of the Triennial Review.
PITREADIE FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2018
- 8 -
10
Related party transactions
Transactions
During the year, the company made advances to the directors of £22,000. Credits of £2,585,155 were received by the company, which resulted in a balance of £4,286,343 due by the company at the year end. (2017 - £1,723,188)