Company Registration No. SC030380 (Scotland)
Reekie Refrigeration Limited
unaudited financial statements
for the year ended 31 December 2020
Pages for filing with Registrar
Reekie Refrigeration Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
Reekie Refrigeration Limited
Balance sheet
as at 31 December 2020
31 December 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
4
712,873
714,914
Investments
5
19,343
17,020
732,216
731,934
Current assets
Debtors
6
290,806
271,669
Cash at bank and in hand
8,940
2,552
299,746
274,221
Creditors: amounts falling due within one year
7
(1,094,054)
(1,039,418)
Net current liabilities
(794,308)
(765,197)
Total assets less current liabilities
(62,092)
(33,263)
Provisions for liabilities
(3,156)
(2,818)
Net liabilities
(65,248)
(36,081)
Capital and reserves
Called up share capital
100
100
Revaluation reserve
14,691
12,909
Profit and loss reserves
(80,039)
(49,090)
Total equity
(65,248)
(36,081)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his 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.
Reekie Refrigeration Limited
Balance sheet (continued)
as at 31 December 2020
31 December 2020
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 24 September 2021
P N J S Reekie
Director
Company Registration No. SC030380
Reekie Refrigeration Limited
Notes to the financial statements
for the year ended 31 December 2020
- 3 -
1
Accounting policies
Company information
Reekie Refrigeration Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Baden Powell Road, Kirkton Industrial Park, Arbroath, DD11 3LS.
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 on the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t 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. Although Covid 19 has interrupted the business
of the company
, the directors have taken appropriate steps to secure the future of the business. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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
.
Revenue consists of rental income from properties held.
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.
The fair value of an investment property cannot be measured reliably without undue cost and effort and therefore it is included at cost as land and buildings. As impairment is not considered to be appropriate for this property, no depreciation is charged.
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:
Land and buildings
No depreciation
Tools, implements etc
25% reducing balance
Furnishing and fittings
15% reducing balance
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
.
Reekie Refrigeration Limited
Notes to the financial statements (continued)
for the year ended 31 December 2020
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
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.
1.6
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.
1.7
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.
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 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.
Reekie Refrigeration Limited
Notes to the financial statements (continued)
for the year ended 31 December 2020
1
Accounting policies (continued)
- 5 -
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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
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.
1.8
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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
The tax expense represents the corporation tax charge for the year.
The tax currently payable is based on taxable profit for the year. The company's liability for current tax is calculated using the tax rates that have been enacted or substantively enacted by the balance sheet date.
Reekie Refrigeration Limited
Notes to the financial statements (continued)
for the year ended 31 December 2020
1
Accounting policies (continued)
- 6 -
1.10
Investment income
Investment income is stated net of tax credits. When scrip shares have been taken in lieu of dividend the dividend foregone has been included as income. Franked investment income is stated on the basis of cash receipts. Unfranked investment income is stated on the basis of gross receipts before deduction of income tax.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
1
1
Reekie Refrigeration Limited
Notes to the financial statements (continued)
for the year ended 31 December 2020
- 7 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2020
703,670
101,060
804,730
Disposals
(12,929)
(12,929)
At 31 December 2020
703,670
88,131
791,801
Depreciation and impairment
At 1 January 2020
89,816
89,816
Depreciation charged in the year
1,622
1,622
Eliminated in respect of disposals
(12,510)
(12,510)
At 31 December 2020
78,928
78,928
Carrying amount
At 31 December 2020
703,670
9,203
712,873
At 31 December 2019
703,670
11,244
714,914
5
Fixed asset investments
2020
2019
£
£
Other investments other than loans
19,343
17,020
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 January 2020
17,020
Additions
540
Valuation changes
1,783
At 31 December 2020
19,343
Carrying amount
At 31 December 2020
19,343
At 31 December 2019
17,020
Reekie Refrigeration Limited
Notes to the financial statements (continued)
for the year ended 31 December 2020
- 8 -
6
Debtors
2020
2019
Amounts falling due within one year:
£
£
Other debtors
290,806
271,669
7
Creditors: amounts falling due within one year
2020
2019
£
£
Corporation tax
6,036
6,266
Other creditors
1,088,018
1,033,152
1,094,054
1,039,418
8
Non distributable reserve
The revaluation gain/(loss) arising on the revaluation of the investments held are included within the non distributable reserve.
9
Profit and loss reserves
The profit and loss account includes all current and prior period retained distributable profit and losses.
10
Related party transactions
The following amounts were outstanding at the reporting end date:
2020
2019
Amounts due to related parties
£
£
Entities over which the entity has control, joint control or significant influence
1,085,978
1,030,648
11
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
268,891
18,573
287,464
268,891
18,573
287,464
The loan to the director is repayable on demand and therefore there is no discounting under FRS 102.