Company Registration No. SC510252 (Scotland)
PITREADIE FARM LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
PAGES FOR FILING WITH REGISTRAR
PITREADIE FARM LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
PITREADIE FARM LIMITED
BALANCE SHEET
AS AT
31 JULY 2019
31 July 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
3
59,021
100,683
Tangible assets
4
7,998,154
7,924,146
8,057,175
8,024,829
Current assets
Stocks
5
364,871
233,366
Debtors
6
162,832
198,951
Cash at bank and in hand
7,234
19,110
534,937
451,427
Creditors: amounts falling due within one year
7
(377,388)
(535,372)
Net current assets/(liabilities)
157,549
(83,945)
Total assets less current liabilities
8,214,724
7,940,884
Creditors: amounts falling due after more than one year
8
(8,639,381)
(8,199,310)
Net liabilities
(424,657)
(258,426)
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
(424,757)
(258,526)
(424,657)
(258,426)
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 2019 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 2019
31 July 2019
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 30 December 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 2019
- 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 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
These financial statements are prepared on a going concern basis. At the balance sheet date, the
true
company had net
liabilities and included
within these liabilities are amounts due
to
related
parties of £
4,2
67
,
989
. After the balance sheet date, this amount was converted to ordinary shares and therefore t
he 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
recognised 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.
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.
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
Between 2% and 5% straight line. Land is not depreciated.
Plant and equipment
10% straight line and 25% straight line
Fencing
10% straight line
Motor vehicles
25% reducing balance
PITREADIE FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
1
Accounting policies
(Continued)
- 4 -
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 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.
1.9
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
Grants
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 5 (2018 - 2
).
PITREADIE FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
- 5 -
3
Intangible fixed assets
Payment Entitlement
£
Cost
At 1 August 2018 and 31 July 2019
140,500
Amortisation and impairment
At 1 August 2018
39,817
Amortisation charged for the year
41,662
At 31 July 2019
81,479
Carrying amount
At 31 July 2019
59,021
At 31 July 2018
100,683
4
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fencing
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 August 2018
7,109,797
647,441
133,688
87,420
7,978,346
Additions
21,546
131,523
29,620
14,835
197,524
At 31 July 2019
7,131,343
778,964
163,308
102,255
8,175,870
Depreciation and impairment
At 1 August 2018
11,500
21,228
5,542
15,930
54,200
Depreciation charged in the year
19,784
67,776
15,462
20,494
123,516
At 31 July 2019
31,284
89,004
21,004
36,424
177,716
Carrying amount
At 31 July 2019
7,100,059
689,960
142,304
65,831
7,998,154
At 31 July 2018
7,098,297
626,213
128,146
71,490
7,924,146
5
Stocks
2019
2018
£
£
Stocks
364,871
233,366
PITREADIE FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
- 6 -
6
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
98,507
300
Other debtors
27,430
153,748
Prepayments and accrued income
36,895
44,903
162,832
198,951
7
Creditors: amounts falling due within one year
2019
2018
£
£
Obligations under finance leases
124,046
106,671
Trade creditors
170,427
409,541
Taxation and social security
868
604
Other creditors
24,311
136
Accruals and deferred income
57,736
18,420
377,388
535,372
8
Creditors: amounts falling due after more than one year
2019
2018
Notes
£
£
Bank loans and overdrafts
9
3,600,000
3,600,000
Obligations under finance leases
151,017
235,494
Other borrowings
9
4,267,989
4,286,343
Accruals and deferred income
620,375
77,473
8,639,381
8,199,310
9
Loans and overdrafts
2019
2018
£
£
Bank loans
3,600,000
3,600,000
Other loans
4,267,989
4,286,343
7,867,989
7,886,343
Payable after one year
7,867,989
7,886,343
PITREADIE FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
9
Loans and overdrafts
(Continued)
- 7 -
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. Interest is charged at a rate of 2% over base rate.
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.
10
Events after the reporting date
After the balance sheet date
, the company entered into an agreement whereby The Parkmead Group plc will acquire the entire issued share capital for a consideration of £4.9m.
Also following the balance sheet date, the directors' loan has been converted to ordinary shares.
11
Related party transactions
Transactions
During the year, the company made advances to the directors of £
6
87,000. Credits of £
6
68
,
646 were received by the company, which resulted in a balance of £
4,267,989
due by the company at the year end (201
8
- £
4,286,343
)
.
The loan is unsecured and interest free with no fixed repayment terms in place.