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.
The directors are of the opinion that the accounts should not be prepared on a going concern basis as the company has ceased to trade during the year. As a result of this decision the accounts have been prepared on a break-up basis. The directors intend to wind up the company.
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 9 (2018 - 17).
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.
Emphasis of matter
100% of the share capital of the company is beneficially held by the Shetland Amenity Trust. During the year, sales of £619 (2018: £3,097) were made to the parent charity. At 31st March 2019 the balance owed to the company was £nil (2018: £1,383). Expenditure of £1,648 (2018: £1,040) was paid by the parent charity on behalf of the company and a balance of £1,161 (2018: £274) was due by the company to the charity at the year end and was included within Trade Creditors.
There was also an inter-group balance due to the charity from the company which was released during the year on instruction of the parent charity. This totalled £132,752. No repayment terms were in place on this balance and no interest was accruing.
The building and equipment used by the company is owned by the parent entity, the Shetland Amenity Trust. 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.