Company Registration No. SC129179 (Scotland)
Stracathro Estates Limited
Unaudited financial statements
for the year ended 31 October 2019
Pages for filing with the Registrar
Stracathro Estates Limited
Contents
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 13
Stracathro Estates Limited
Balance sheet
As at 31 October 2019
31 October 2019
Page 1
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
3
34,976
69,954
Tangible assets
4
9,129,032
7,897,339
Investment properties
5
-
825,000
9,164,008
8,792,293
Current assets
Stocks
6
793,061
456,697
Debtors
7
503,217
356,250
Cash at bank and in hand
-
457,735
1,296,278
1,270,682
Creditors: amounts falling due within one year
8
(403,071)
(390,799)
Net current assets
893,207
879,883
Total assets less current liabilities
10,057,215
9,672,176
Creditors: amounts falling due after more than one year
9
(79,977)
(114,955)
Provisions for liabilities
(314,663)
(236,073)
Net assets
9,662,575
9,321,148
Capital and reserves
Called up share capital
10
19,600
19,600
Share premium account
4,854,806
4,854,806
Revaluation reserve
-
226,510
Capital redemption reserve
400
400
Profit and loss reserves
4,787,769
4,219,832
Total equity
9,662,575
9,321,148
Stracathro Estates Limited
Balance sheet (continued)
As at 31 October 2019
31 October 2019
Page 2
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 October 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 28 July 2020 and are signed on its behalf by:
Hugh Campbell Adamson
Director
Company Registration No. SC129179
Stracathro Estates Limited
Statement of changes in equity
For the year ended 31 October 2019
Page 3
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 November 2017
20,000
4,854,806
381,510
-
4,132,458
9,388,774
Year ended 31 October 2018:
Profit and total comprehensive income for the year
-
-
-
-
125,874
125,874
Dividends
-
-
-
-
(13,500)
(13,500)
Own shares acquired
-
-
-
-
(180,000)
(180,000)
Redemption of shares
10
(400)
-
-
400
-
-
Other movements
-
-
(155,000)
-
155,000
-
Balance at 31 October 2018
19,600
4,854,806
226,510
400
4,219,832
9,321,148
Year ended 31 October 2019:
Profit and total comprehensive income for the year
-
-
-
-
343,677
343,677
Dividends
-
-
-
-
(2,250)
(2,250)
Other movements
-
-
(226,510)
-
226,510
-
Balance at 31 October 2019
19,600
4,854,806
-
400
4,787,769
9,662,575
Stracathro Estates Limited
Notes to the financial statements
For the year ended 31 October 2019
Page 4
1
Accounting policies
Company information
Stracathro Estates Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Brae of Pert, North Water Bridge, Laurencekirk, Kincardineshire, AB30 1QR.
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 and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents amounts and services in relation to farming sales including crop sales, rental income and income from renewable energy projects.
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
The Basic Payment Scheme income is recognised once all conditions attached have been met.
1.3
Intangible fixed assets other than goodwill
Entitlements under the Basic Payment Scheme are accounted for as an intangible asset
acquired by
way of government grant. On initial recognition the intangible asset is recognised at fair value based
upon traded prices. The asset is amortised over its useful economic life being 5 years. In accordance
with the accruals model of recognition, the grant is recognised in income on a systematic basis over the
expected useful life of the asset, being 5 years. Hence a deferred income balance is recognised initially
which is released to income over 5 years.
Stracathro Estates Limited
Notes to the financial statements (continued)
For the year ended 31 October 2019
1
Accounting policies (continued)
Page 5
Amortisation 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:
Government grants
20% straight line
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:
Land and buildings Freehold
Nil
Plant and machinery
5% - 33% straight line
Fixtures, fittings & equipment
10% - 33% straight line
Motor vehicles
25% straight line
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
.
1.5
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.
Changes in fair value are recognised in profit or loss.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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.
Stracathro Estates Limited
Notes to the financial statements (continued)
For the year ended 31 October 2019
1
Accounting policies (continued)
Page 6
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.
1.7
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.
The company measures biological assets at cost less accumulated depreciation and accumulated impairment losses.
In respect of agricultural produce harvested from a biological asset, this is measured at the point of harvest at either;
-
lower of cost and estimated selling price less costs to complete and sell; or
-
fair value less costs to sell with any gain or loss arising on initial recognition of agricultural produce at fair value less costs to sell being included in profit or loss.
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.
1.8
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.
Stracathro Estates Limited
Notes to the financial statements (continued)
For the year ended 31 October 2019
1
Accounting policies (continued)
Page 7
1.9
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, 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, 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.
1.10
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.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Stracathro Estates Limited
Notes to the financial statements (continued)
For the year ended 31 October 2019
1
Accounting policies (continued)
Page 8
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 and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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
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 balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Stracathro Estates Limited
Notes to the financial statements (continued)
For the year ended 31 October 2019
1
Accounting policies (continued)
Page 9
1.14
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a 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 profit and loss account for the period.
1.16
Grants are credited to deferred revenue. Grants towards capital expenditure are released to
the profit
and loss account over the expected useful life of the assets. Grants towards revenue
expenditure are
released to the profit and loss account as the related expenditure is incurred.
1.17
The company's preference shares are treated as financial liabilities of the company under FRS
102. All
dividends are accordingly classified as interest payments.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 11 (2018 - 9).
Stracathro Estates Limited
Notes to the financial statements (continued)
For the year ended 31 October 2019
Page 10
3
Intangible fixed assets
Government grants
£
Cost
At 1 November 2018 and 31 October 2019
174,888
Amortisation and impairment
At 1 November 2018
104,934
Amortisation charged for the year
34,978
At 31 October 2019
139,912
Carrying amount
At 31 October 2019
34,976
At 31 October 2018
69,954
The Basic Payment Scheme units were valued at initial award in 2015 at £174,888. The scheme will run until December 2020 therefore the useful life is 5 years. The units will be amortised over this time.
Stracathro Estates Limited
Notes to the financial statements (continued)
For the year ended 31 October 2019
Page 11
4
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2018
5,793,617
3,125,590
42,266
111,574
9,073,047
Additions
592,790
1,313,944
857
5,995
1,913,586
Disposals
-
(597,710)
(374)
(7,000)
(605,084)
At 31 October 2019
6,386,407
3,841,824
42,749
110,569
10,381,549
Depreciation and impairment
At 1 November 2018
67,297
1,040,491
30,417
37,503
1,175,708
Depreciation charged in the year
-
281,360
4,844
29,018
315,222
Eliminated in respect of disposals
-
(234,705)
(208)
(3,500)
(238,413)
At 31 October 2019
67,297
1,087,146
35,053
63,021
1,252,517
Carrying amount
At 31 October 2019
6,319,110
2,754,678
7,696
47,548
9,129,032
At 31 October 2018
5,726,320
2,085,099
11,849
74,071
7,897,339
5
Investment properties
2019
£
Fair value
At 1 November 2018
825,000
Disposals
(825,000)
At 31 October 2019
-
The fair value of the investment
property has been arrived at on the basis of a valuation carried
out
by
the directors of the company
.
The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
Stracathro Estates Limited
Notes to the financial statements (continued)
For the year ended 31 October 2019
Page 12
6
Stocks
2019
2018
£
£
Biological assets
639,408
323,957
Other stock
153,653
132,740
793,061
456,697
7
Debtors
2019
2018
£
£
Trade debtors
342,337
138,062
Other debtors
160,880
218,188
503,217
356,250
8
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans and overdrafts
42,401
-
Trade creditors
165,864
106,919
Corporation tax
-
61,699
Other taxation and social security
17,912
41,847
Other creditors
176,894
180,334
403,071
390,799
The company has granted a floating charge in favour of the Clydesdale Bank PLC, in respect of all present and future obligations and liabilities.
9
Creditors: amounts falling due after more than one year
2019
2018
£
£
Other creditors
79,977
114,955
Stracathro Estates Limited
Notes to the financial statements (continued)
For the year ended 31 October 2019
Page 13
10
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
19,600 Ordinary shares of £1 each
19,600
19,600
2019-10-31
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CCH Software
CCH Accounts Production 2019.301
No description of principal activity
Hugh Campbell Adamson
Alison Campbell Adamson
Gordon Cairns
Alexander Taylor
James Campbell Adamson
Alison Campbell Adamson
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