Hay's Dock Cafe Restaurant Limited is a private company limited by shares incorporated in Scotland. The registered office is Garthspool, Lerwick, Shetland, ZE1 0NY. Its place of business is Shetland Museum and Archives, Hay's Dock, Lerwick, Shetland, ZE1 0LA.
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.
A t the time of approving the financial statements , t he directors have the directors are of the opinion that it is appropriate to prepare the accounts on a going concern basis in spite of a net asset deficiency of £71,715. The company is dependent on the continued financial support of Shetland Amenity Trust who have provided assurances that the support will continue to be given.
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.
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.
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, 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.
The average monthly number of persons (including directors) employed by the company during the year was 17 (2017 - 21).
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.
100% of the share capital of the company is beneficially held by the Shetland Amenity Trust. During the year, sales of £3,097 were made to the parent charity. At 31st March 2018 the balance owed to the company was £1,383 (2017: £1,371) and was included within Trade Debtors. Expenditure of £1,040 was made from the parent and the charity and a balance of £274 (2017: £598) was due by the company at the year end. This was included within Trade Creditors.
There was also an inter group loan from the charity to the company. This increased by £6,686 to a balance of £47,752 (2017: £41,066), at the year end. There are no repayment terms and no interest accruing on this loan.
The building and equipment used by the company is owned by the parent entity, the Shetland Amenity Trust, and no rent has been charged for the use of the equipment or the building in this year of trading.
The company is controlled by the Shetland Amenity Trust, a Scottish registered charity. The Shetland Amenity Trust consolidated statement of accounts may be obtained from its Registered Office, being Shetland Amenity Trust, Garthspool, Lerwick, Shetland, ZE1 0NY.