Company Registration No. SC015727 (Scotland)
D C Watson & Sons (Fenton Barns) Limited
Unaudited financial statements
for the year ended 30 April 2023
Pages for filing with the registrar
D C Watson & Sons (Fenton Barns) Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 10
D C Watson & Sons (Fenton Barns) Limited
Statement of financial position
As at 30 April 2023
30 April 2023
1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
2,917,366
2,847,993
Investment property
4
3,889,500
3,889,500
Investments
5
6,806,866
6,737,493
Current assets
Stocks
15,074
28,389
Debtors
6
219,609
267,033
Cash at bank and in hand
35,319
42,763
270,002
338,185
Creditors: amounts falling due within one year
7
(328,817)
(336,827)
Net current (liabilities)/assets
(58,815)
1,358
Total assets less current liabilities
6,748,051
6,738,851
Creditors: amounts falling due after more than one year
8
(490,433)
(478,140)
Provisions for liabilities
(491,264)
(491,265)
Net assets
5,766,354
5,769,446
Capital and reserves
Called up share capital
1,056
1,056
Share premium account
189,240
189,240
Revaluation reserve
9
4,964,053
4,971,900
Profit and loss reserves
612,005
607,250
Total equity
5,766,354
5,769,446
D C Watson & Sons (Fenton Barns) Limited
Statement of financial position (continued)
As at 30 April 2023
30 April 2023
2
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 30 April 2023 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.
The 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 January 2024 and are signed on its behalf by:
Nicola Simpson
Director
Company Registration No. SC015727
D C Watson & Sons (Fenton Barns) Limited
Notes to the financial statements
For the year ended 30 April 2023
3
1
Accounting policies
Company information
D C Watson & Sons (Fenton Barns) Limited is a private company limited by shares incorporated in Scotland. The registered office is Estate Office, Fenton Barns, North Berwick, East Lothian, EH39 5BW.
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 amounts 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 at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet 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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. Included in creditors are loans from the directors totalling £42,307 (2022 - £53,449), the directors have confirmed that they will not seek repayment of these loans until the company has sufficient funds to do so.
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.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), 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.
Rental income on land and property leased under operating leases is recognised on a straight line basis over the lease term and is presented within turnover.
Grants received from the government in respect of agriculture are shown within turnover, whilst other grant income is shown within operating income.
1.4
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
0% - 2% per annum straight line basis
Plant and machinery
5% - 20% per annum straight line basis
D C Watson & Sons (Fenton Barns) Limited
Notes to the financial statements (continued)
For the year ended 30 April 2023
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.
The part of the annual depreciation charge on revalued assets which relates to the revaluation surplus is transferred from the revaluation reserve to the profit and loss account.
1.5
Investment property
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 at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries 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.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.
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.
D C Watson & Sons (Fenton Barns) Limited
Notes to the financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies (continued)
5
1.9
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.
1.10
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 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 debtors, 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 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 payments 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. Amounts 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.
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.
D C Watson & Sons (Fenton Barns) Limited
Notes to the financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies (continued)
6
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
D C Watson & Sons (Fenton Barns) Limited
Notes to the financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies (continued)
7
1.16
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
12
12
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 May 2022
2,680,500
841,568
3,522,068
Additions
150,394
150,394
Disposals
(13,400)
(13,400)
At 30 April 2023
2,680,500
978,562
3,659,062
Depreciation and impairment
At 1 May 2022
674,075
674,075
Depreciation charged in the year
13,743
67,278
81,021
Eliminated in respect of disposals
(13,400)
(13,400)
At 30 April 2023
13,743
727,953
741,696
Carrying amount
At 30 April 2023
2,666,757
250,609
2,917,366
At 30 April 2022
2,680,500
167,493
2,847,993
The freehold buildings were valued by D M Hall, Chartered Surveyors, in September 2022 at their market value assuming existing use of £1,110,500. The agricultural land was valued by DM Hall, Chartered Surveyors on 6 September 2022 at an open market value of £1,570,000. The September 2022 valuation has been recognised in the accounts for the year ended 30 April 2023 on the basis that this is a fair reflection of the fair value as at the year end date.
D C Watson & Sons (Fenton Barns) Limited
Notes to the financial statements (continued)
For the year ended 30 April 2023
3
Tangible fixed assets (continued)
8
The revaluation surplus is disclosed in note 9.
If the revalued assets were measured using the cost model, the carrying amounts would be as follows:
2023
2022
£
£
Cost
294,801
294,801
Accumulated depreciation
(64,250)
(58,354)
Carrying value
230,551
236,447
4
Investment property
2023
£
Fair value
At 1 May 2022 and 30 April 2023
3,889,500
Investment property comprises buildings rented to tenants. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 6 September 2022 by DM Hall Chartered Surveyors, who are not connected with the company.
5
Fixed asset investments
2023
2022
£
£
Investment in subsidiary
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 May 2022 & 30 April 2023
25,730
Impairment
At 1 May 2022 & 30 April 2023
25,730
Carrying amount
At 30 April 2023
-
At 30 April 2022
-
D C Watson & Sons (Fenton Barns) Limited
Notes to the financial statements (continued)
For the year ended 30 April 2023
9
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
93,303
79,180
Corporation tax recoverable
3,628
Amounts owed by group undertakings
88,331
Other debtors
122,678
99,522
219,609
267,033
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
46,763
56,572
Trade creditors
44,074
47,067
Corporation tax
29,562
11,935
Other taxation and social security
5,758
6,673
Other creditors
202,660
214,580
328,817
336,827
The bank holds a bond and floating charge in respect of the term loan and overdraft.
The hire purchase creditor of £29,303 (2022 - £27,748) is secured over the assets to which it relates.
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
418,226
455,180
Other creditors
72,207
22,960
490,433
478,140
The bank holds a bond and floating charge in respect of the term loan and overdraft.
The hire purchase creditor of £72,207 (2022 - £22,960) is secured over the assets to which it relates.
Creditors which fall due after five years are as follows:
2023
2022
£
£
Payable by instalments
186,364
226,403
D C Watson & Sons (Fenton Barns) Limited
Notes to the financial statements (continued)
For the year ended 30 April 2023
10
9
Revaluation reserve
2023
2022
£
£
At the beginning of the year
4,971,900
832,924
Revaluation surplus arising in the year
4,631,114
Deferred tax on revaluation of tangible assets
-
(491,265)
Transfer to retained earnings
(7,847)
(873)
At the end of the year
4,964,053
4,971,900
10
Financial commitments, guarantees and contingent liabilities
At 30 April 2023 the company has an obligation to continue to manage the sewage treatment works at Fenton Barns in order to meet the requirements of a licence granted by The Scottish Environment Protection Agency (SEPA). There are continued concerns about the inability of the company to control what enters the sewage treatment works from unconnected companies, which may result in fines for any past breaches, work being required to upgrade the sewage treatment works, the works being closed down by SEPA, or to have the works adopted by Scottish Water. The company also has a potential unquantifiable liability for the reimbursement of costs incurred by tenants in repairing the sewage system to working order or compliance with environmental law.
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
10,401
17,743
12
Related party transactions
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
10,750
-
The amounts due from related parties are unsecured and no interest is charged.
During the year the company paid expenses totalling £10,750 on behalf of related parties.
2023-04-302022-05-01false30 January 2024CCH SoftwareCCH Accounts Production 2023.100No description of principal activityKeith Chalmers-WatsonNicola SimpsonLesley Gordon-SmithSC0157272022-05-012023-04-30SC0157272023-04-30SC0157272022-04-30SC015727core:LandBuildings2023-04-30SC015727core:OtherPropertyPlantEquipment2023-04-30SC015727core:LandBuildings2022-04-30SC015727core:OtherPropertyPlantEquipment2022-04-30SC015727core:CurrentFinancialInstrumentscore:WithinOneYear2023-04-30SC015727core:CurrentFinancialInstrumentscore:WithinOneYear2022-04-30SC015727core:Non-currentFinancialInstrumentscore:AfterOneYear2023-04-30SC015727core:Non-currentFinancialInstrumentscore:AfterOneYear2022-04-30SC015727core:CurrentFinancialInstruments2023-04-30SC015727core:CurrentFinancialInstruments2022-04-30SC015727core:Non-currentFinancialInstruments2023-04-30SC015727core:Non-currentFinancialInstruments2022-04-30SC015727core:ShareCapital2023-04-30SC015727core:ShareCapital2022-04-30SC015727core:SharePremium2023-04-30SC015727core:SharePremium2022-04-30SC015727core:RevaluationReserve2023-04-30SC015727core:RevaluationReserve2022-04-30SC015727core:RetainedEarningsAccumulatedLosses2023-04-30SC015727core:RetainedEarningsAccumulatedLosses2022-04-30SC015727core:RevaluationReserve2022-04-30SC015727core:RevaluationReserve2021-04-30SC015727bus:Director22022-05-012023-04-30SC015727core:LandBuildingscore:OwnedOrFreeholdAssets2022-05-012023-04-30SC015727core:PlantMachinery2022-05-012023-04-30SC0157272021-05-012022-04-30SC015727core:LandBuildings2022-04-30SC015727core:OtherPropertyPlantEquipment2022-04-30SC0157272022-04-30SC015727core:LandBuildings2022-05-012023-04-30SC015727core:OtherPropertyPlantEquipment2022-05-012023-04-30SC015727core:WithinOneYear2023-04-30SC015727core:WithinOneYear2022-04-30SC015727core:RevaluationReserve2022-05-012023-04-30SC015727core:RevaluationReserve2021-05-012022-04-30SC015727bus:PrivateLimitedCompanyLtd2022-05-012023-04-30SC015727bus:SmallCompaniesRegimeForAccounts2022-05-012023-04-30SC015727bus:FRS1022022-05-012023-04-30SC015727bus:AuditExemptWithAccountantsReport2022-05-012023-04-30SC015727bus:Director12022-05-012023-04-30SC015727bus:CompanySecretary12022-05-012023-04-30SC015727bus:FullAccounts2022-05-012023-04-30xbrli:purexbrli:sharesiso4217:GBP