Company Registration No. SC446546 (Scotland)
RM BRORA LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
PAGES FOR FILING WITH REGISTRAR
RM BRORA LIMITED
COMPANY INFORMATION
Directors
D F Sutherland CBE CA
F W Hinteregger
A A Nelson
I Watson
(Appointed 8 August 2019)
Secretary
C A Clayton LLB (Hons) Dip. LP
Company number
SC446546
Registered office
Oldtown of Leys House
Culduthel
INVERNESS
IV2 6AE
Accountants
Johnston Carmichael LLP
Clava House
Cradlehall Business Park
INVERNESS
IV2 5GH
RM BRORA LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
RM BRORA LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2018
31 December 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
3
939,852
895,613
Current assets
Stocks
111,851
111,357
Debtors
4
50,881
32,012
Cash at bank and in hand
12,241
107,230
174,973
250,599
Creditors: amounts falling due within one year
5
(429,998)
(603,265)
Net current liabilities
(255,025)
(352,666)
Total assets less current liabilities
684,827
542,947
Creditors: amounts falling due after more than one year
6
(459,538)
(233,334)
Provisions for liabilities
(55,918)
(47,342)
Net assets
169,371
262,271
Capital and reserves
Called up share capital
7
750
750
Revaluation reserve
225,705
223,612
Profit and loss reserves
(57,084)
37,909
Total equity
169,371
262,271
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
RM BRORA LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2018
31 December 2018
- 2 -
For the financial year ended 31 December 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.
The financial statements were approved by the board of directors and authorised for issue on 10 September 2019 and are signed on its behalf by:
D F Sutherland CBE CA
Director
Company Registration No. SC446546
RM BRORA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
- 3 -
1
Accounting policies
Company information
RM Brora Limited
(SC446546),
is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Oldtown of Leys House, Culduthel, INVERNESS, IV2 6AE.
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 £.
The financial statements have been prepared under the historical cost convention modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has recorded a loss in the financial period and has net current liabilities of £
255,025
at the year end.
It is recognised that the ability of the company to continue as a going concern is dependent
o
n
the
on-going financial support
of the directors.
The
directors are
confident that funds will be made available to allow the company to meet its liabilities as they fall due
and that amounts due to the directors and entities controlled by the directors totalling £267,464 at 31 December 2018, will not be recalled within 12 months from the date of approval of these financial statements
. For th
is
reason, the
directors
continue to adopt the going concern basis in preparing the financial statements and ha
ve
considered a period of
12
months from the date of approval of these financial statements.
1.3
Turnover
Turnover represents amounts receivable for good and services net of VAT and trade discounts and is recognised on the accruals basis.
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
Not depreciated
Plant and machinery
10% Straight line
Fixtures, fittings & equipment
10% Straight line
Office equipment
25% Straight line
Motor vehicles
25% Straight line
The non-depreciation of freehold land and buildings is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the directors this is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or qualified.
RM BRORA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 4 -
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible to determine whether there is any indication that those assets have suffered an impairment loss
.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include
cash at bank and in hand.
1.8
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 balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
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
. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets
are assessed for indicators of impairment at each reporting end date.
Derecognition of financial assets
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, are
initially recognised at transaction price
and are subsequently carried at amortised cost using the effective interest method
.
Financial liabilities classified as payable within one year are not amortised.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
RM BRORA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 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
.
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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised
in the period in which the employee's services are received.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 31 (201
7
- 27).
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 January 2018
683,926
353,932
1,037,858
Additions
-
89,904
89,904
At 31 December 2018
683,926
443,836
1,127,762
Depreciation and impairment
At 1 January 2018
-
142,245
142,245
Depreciation charged in the year
-
45,665
45,665
At 31 December 2018
-
187,910
187,910
Carrying amount
At 31 December 2018
683,926
255,926
939,852
At 31 December 2017
683,926
211,687
895,613
On 15 September 2016, Allied Surveyors Scotland PLC confirmed that as at 31 December 2016, there was no material difference between the open market value of land and buildings as at 31 December 2016 and their book value. The directors believe the valuation as at 15 September 2016 still reflects the book value as at 31 December 2018. Consequently no depreciation has been charged on these assets.
RM BRORA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
3
Tangible fixed assets
(Continued)
- 6 -
If revalued assets were stated on a historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2018
2017
£
£
Cost
424,459
424,459
Accumulated depreciation
(20,283)
(20,283)
Carrying value
404,176
404,176
4
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
8,401
5,957
Other debtors
42,480
26,055
50,881
32,012
5
Creditors: amounts falling due within one year
2018
2017
£
£
Bank loans and overdrafts
52,067
23,333
Trade creditors
36,709
52,024
Taxation and social security
20,138
32,733
Other creditors
321,084
495,175
429,998
603,265
Bank loans and overdrafts are secured by way of security bond and floating charge over the company's assets.
RM BRORA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 7 -
6
Creditors: amounts falling due after more than one year
2018
2017
£
£
Bank loans and overdrafts
459,538
233,334
The bank loan is secured by a security bond and a floating charge over the company's assets.
Amounts included above which fall due after five years are as follows:
Payable by instalments
342,312
139,998
7
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
375 A Ordinary shares of £1 each
375
375
375 B Ordinary shares of £1 each
375
375
750
750
8
Related party transactions
The following amounts were outstanding at the reporting end date:
2018
2017
Amounts due to related parties
£
£
Key management personnel
267,464
289,964
These loans are unsecured, interest free and have no fixed terms of repayment.