Company Registration No. SC044769 (Scotland)
Ardtornish Estate Company Limited
Unaudited financial statements
for the year ended 31 December 2019
Pages for filing with the Registrar
Ardtornish Estate Company Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
4 - 12
Ardtornish Estate Company Limited
Statement of financial position
As at 31 December 2019
31 December 2019
Page 1
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
11,803,694
12,310,079
Investment properties
4
4,481,248
4,426,248
Investments
5
30,616
30,616
16,315,558
16,766,943
Current assets
Stocks
254,757
318,779
Debtors falling due after more than one year
6
268,791
288,955
Debtors falling due within one year
6
940,467
1,272,805
Cash at bank and in hand
87,628
14,821
1,551,643
1,895,360
Creditors: amounts falling due within one year
7
(2,006,891)
(1,813,167)
Net current (liabilities)/assets
(455,248)
82,193
Total assets less current liabilities
15,860,310
16,849,136
Creditors: amounts falling due after more than one year
8
(11,366,123)
(11,848,998)
Provisions for liabilities
9
(2,104,723)
(1,950,514)
Net assets
2,389,464
3,049,624
Capital and reserves
Called up share capital
10
75,000
75,000
Revaluation reserve - undistributable
3,331,106
3,286,106
Profit and loss reserves - distributable
(1,016,642)
(311,482)
Total equity
2,389,464
3,049,624
Ardtornish Estate Company Limited
Statement of financial position (continued)
As at 31 December 2019
31 December 2019
Page 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 31 December 2019 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 1 July 2020 and are signed on its behalf by:
Hugh Raven
Director
Company Registration No. SC044769
Ardtornish Estate Company Limited
Statement of changes in equity
For the year ended 31 December 2019
Page 3
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2018
75,000
5,451,170
83,490
5,609,660
Year ended 31 December 2018:
Loss for the year
-
-
(394,972)
(394,972)
Other comprehensive income:
Revaluation of tangible fixed assets
-
(2,618,752)
-
(2,618,752)
Tax relating to other comprehensive income
-
525,138
-
525,138
Total comprehensive income for the year
-
(2,093,614)
(394,972)
(2,488,586)
Transfers
-
(71,450)
-
(71,450)
Balance at 31 December 2018
75,000
3,286,106
(311,482)
3,049,624
Year ended 31 December 2019:
Loss for the year
-
-
(705,160)
(705,160)
Other comprehensive income:
Revaluation of tangible fixed assets
-
45,000
-
45,000
Total comprehensive income for the year
-
45,000
(705,160)
(660,160)
Balance at 31 December 2019
75,000
3,331,106
(1,016,642)
2,389,464
Ardtornish Estate Company Limited
Notes to the financial statements
For the year ended 31 December 2019
Page 4
1
Accounting policies
Company information
Ardtornish Estate Company Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Morvern, By Oban, Argyllshire, PA80 5UZ.
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 investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
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 VA
T.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
1.3
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.
Ardtornish Estate Company Limited
Notes to the financial statements (continued)
For the year ended 31 December 2019
1
Accounting policies (continued)
Page 5
Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:
Land and buildings
0% - 2% per annum straight line basis.
Plant and machinery
5% - 20% per annum reducing balance basis.
Fixtures, fittings and equipment
15% & 25% per annum reducing balance and straight line basis respectively.
Sporting
20% per annum reducing balance basis.
Motor vehicles
25% per annum reducing balance basis.
Hydro
5% - 10% per annum reducing balance basis.
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
.
1.4
Investment properties
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 a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in profit or loss.
1.5
Fixed asset investments
Fixed asset investments
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.
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. 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.
1.7
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.
Ardtornish Estate Company Limited
Notes to the financial statements (continued)
For the year ended 31 December 2019
1
Accounting policies (continued)
Page 6
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 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 and bank loans, 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.
1.9
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.
Ardtornish Estate Company Limited
Notes to the financial statements (continued)
For the year ended 31 December 2019
1
Accounting policies (continued)
Page 7
1.10
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 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 taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted. Deferred tax is not provided on timing differences arising from the revaluation of investment properties where there is no commitment to sell the asset.
1.11
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value
,
the unwinding of the discount is recognised as a finance cost in profit or loss in the period
in which
it arises.
1.12
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.
1.13
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
Ardtornish Estate Company Limited
Notes to the financial statements (continued)
For the year ended 31 December 2019
1
Accounting policies (continued)
Page 8
1.14
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 the income statement so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the income statement for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 24 (2017 - 28).
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Hydro
Total
£
£
£
£
Cost
At 1 January 2019
3,081,478
1,697,890
10,983,787
15,763,155
Additions
-
8,105
43,831
51,936
Disposals
(10,000)
-
-
(10,000)
At 31 December 2019
3,071,478
1,705,995
11,027,618
15,805,091
Depreciation and impairment
At 1 January 2019
278,751
453,510
2,720,815
3,453,076
Depreciation charged in the year
43,196
155,390
349,735
548,321
At 31 December 2019
321,947
608,900
3,070,550
4,001,397
Carrying amount
At 31 December 2019
2,749,531
1,097,095
7,957,068
11,803,694
At 31 December 2018
2,802,727
1,244,380
8,262,972
12,310,079
Ardtornish Estate Company Limited
Notes to the financial statements (continued)
For the year ended 31 December 2019
3
Tangible fixed assets (continued)
Page 9
The net book value of other tangible fixed assets includes £10,297 (2018 - £13,729) in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £3,432 (2018 - £4,576) for the year.
Included within plant and machinery is £137,275 (2018 - £137,275) of fixtures and fittings which are non-depreciating.
Included in fixed assets are assets under construction of £206,377 (2018 - £206,377). The depreciation charge in respect of such assets amount to £nil (2018 - £nil).
4
Investment property
2019
£
Fair value
At 1 January 2019
4,426,248
Transfers to fixed assets
10,000
Revaluations
45,000
At 31 December 2019
4,481,248
The fair value of investment properties has been arrived at on the basis of a valuation carried out at 31 December 2019 by the board of directors and corroborated by an external valuation performed by qualified valuation experts at 31 May 2019. The valuation was made on an open market value basis. No depreciation is provided in respect of these properties.
5
Fixed asset investments
2019
2018
£
£
Investments
30,616
30,616
Fixed asset investments not carried at market value
The investment above relates to the company's holding in The Firm of Ardtornish Farms. The value is based on the original cost of the investment.
Ardtornish Estate Company Limited
Notes to the financial statements (continued)
For the year ended 31 December 2019
5
Fixed asset investments (continued)
Page 10
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 January 2019 & 31 December 2019
30,616
Carrying amount
At 31 December 2019
30,616
At 31 December 2018
30,616
6
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
10,138
658,733
Other debtors
930,329
614,072
940,467
1,272,805
2019
2018
Amounts falling due after more than one year:
£
£
Other debtors
268,791
288,955
Total debtors
1,209,258
1,561,760
Included in other debtors is a balance of £268,791 (2018 - £288,955) relating to a grid connection due to expire in 2036. This balance is being released to the profit and loss account over the duration of the contracted period.
Ardtornish Estate Company Limited
Notes to the financial statements (continued)
For the year ended 31 December 2019
Page 11
7
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans and overdrafts
1,376,279
1,264,793
Trade creditors
290,411
166,090
Other taxation and social security
33,520
52,039
Other creditors
306,681
330,245
2,006,891
1,813,167
8
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loans and overdrafts
11,366,123
11,847,766
Other creditors
-
1,232
11,366,123
11,848,998
Amounts included above which fall due after five years are as follows:
Payable by instalments
5,910,891
6,388,434
9
Provisions for liabilities
2019
2018
£
£
Other
138,670
33,670
-
105,000
138,670
138,670
Deferred tax liabilities
1,966,053
1,811,844
2,104,723
1,950,514
Ardtornish Estate Company Limited
Notes to the financial statements (continued)
For the year ended 31 December 2019
9
Provisions for liabilities (continued)
Page 12
The provision of £33,670 relates to an agreement with the Highlands Small Communities' Housing Trust, whereby a payment of £70,000 is due on the termination of a lease of affordable housing owned by Ardtornish Estate Company Limited. The lease agreement is due to terminate on 2 April 2034. The provision is discounted at a rate of 5%.
The provision of £105,000 relates to a commitment to complete a number of roads serving various parts of the estate.
10
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
75,000 Ordinary Shares of £1 each
75,000
75,000
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Andrew Hamilton
Hugh Raven
William Kendall
Dennis Overton
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