Company Registration No. SC134373 (Scotland)
ORRMAC (NO:500) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2020
PAGES FOR FILING WITH REGISTRAR
ORRMAC (NO:500) LIMITED
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 7
ORRMAC (NO:500) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 DECEMBER 2020
30 December 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
3
2,710,224
2,781,223
Current assets
Stocks
5,627
4,615
Debtors
4
1,321,780
1,271,423
Cash at bank and in hand
126,644
91,245
1,454,051
1,367,283
Creditors: amounts falling due within one year
5
(240,258)
(282,148)
Net current assets
1,213,793
1,085,135
Total assets less current liabilities
3,924,017
3,866,358
Creditors: amounts falling due after more than one year
6
(2,022,782)
(1,799,410)
Provisions for liabilities
(57,535)
(57,535)
Net assets
1,843,700
2,009,413
Capital and reserves
Called up share capital
7
2,000,100
2,000,100
Other reserves
684,904
684,904
Profit and loss reserves
(841,304)
(675,591)
Total equity
1,843,700
2,009,413
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 30 December 2020 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
and in accordance with the provisions for FRS 102 section 1A - small entities.
ORRMAC (NO:500) LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
30 DECEMBER 2020
30 December 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 16 September 2021 and are signed on its behalf by:
A D F MacDonald
Director
Company Registration No. SC134373
ORRMAC (NO:500) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2020
- 3 -
1
Accounting policies
Company information
Orrmac (No:500) Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
1 Rutland Court, Edinburgh, Scotland, EH3 8EY.
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. The principal accounting policies adopted are set out below.
Post balance sheet events
Since 31 December 2020 the world has faced unprecedented uncertainty and disruption as a result of Covid-19. The directors have considered the effects of this pandemic on its operations and any going concern implications for the business post year end, and full details are noted in section 1.2 in accounting policies.
1.2
Going concern
The directors review and update budgets and forecasts to ensure that at all times the company has sufficient resources to meet its liabilities as they fall due for a period of at least twelve months from the date of signing the financial statements. The directors have considered a number of potential scenarios over the coming twelve months, and are satisfied that these scenarios provide evidence that the company has adequate working capital to continue trading over this period
true
.
As a result of Covid-19, the hotel has had to close during the 2020 financial year for a number of months - in line with many other businesses in the hospitality sector. During this period, the business was reorganised to adapt to Covid-19 restrictions, and successfully opened post the original spring lockdown. The hotel is currently closed again, however, management expect the business to reopen early in 2021, and are anticipating that advances in vaccinations together with the arrival of spring, will allow the hotel to commence trading profitably again.
The company has a healthy cash balance at the date of signing these financial statements, and with advantage being taken of government support and initiatives, together with a deferral of bank loan payments until spring 2021, and a working capital loan being obtained during 2020, the directors have been working hard to ensure the business has the appropriate cash inflows. The directors also continue to monitor the cost base of the business to ensure that this remains at an appropriate level.
Thus, with a healthy cash balance for the size of the business; access to government support; deferred loan payments; and a hotel that has shown its ability to adapt to Covid-19 protocols and command strong sales when open (with no signs to suggest this will not be the case from spring 2021), the directors are satisfied that the company will have adequate resources to continue as a going concern for the foreseeable future.
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
, and
is shown net of VAT and other sales related taxes
.
ORRMAC (NO:500) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2020
1
Accounting policies
(Continued)
- 4 -
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% on buildings cost
Plant and equipment
20% on cost
Fixtures and fittings
20% on cost
Computers
20% on cost
Freehold land is not depreciated.
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
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.
Any impairment loss is 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
is based on the cost to purchase on a first in, first out basis.
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.
1.8
Financial instruments
The following assets and liabilities are classified as financial instruments - trade and other debtors, trade and other creditors, bank loans and directors' loans.
Debt instruments, other than those wholly repayable within one year, are initially measured at the present value of future payments, discounted at a market rate of interest, and subsequently at amortised cost using the effective interest method.
Directors' loans repayable on demand, trade debtors and trade creditors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.
Financial assets that are measured at amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement.
ORRMAC (NO:500) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2020
1
Accounting policies
(Continued)
- 5 -
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.
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 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
in respect of permanent differences except in respect of business combinations. Deferred tax is determined using rates and laws that have been enacted or substantively enacted by the reporting date.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 17
(2019 - 20).
ORRMAC (NO:500) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2020
- 6 -
3
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 31 December 2019
3,063,333
126,754
394,030
15,387
3,599,504
Additions
450
15,522
2,928
18,900
At 30 December 2020
3,063,783
142,276
396,958
15,387
3,618,404
Depreciation and impairment
At 31 December 2019
337,780
98,015
373,240
9,246
818,281
Depreciation charged in the year
61,273
15,370
10,697
2,559
89,899
At 30 December 2020
399,053
113,385
383,937
11,805
908,180
Carrying amount
At 30 December 2020
2,664,730
28,891
13,021
3,582
2,710,224
At 30 December 2019
2,725,553
28,739
20,790
6,141
2,781,223
Freehold land and buildings includes land at a cost of £144,173 (2019 - £144,173).
4
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
391
111
Other debtors
1,309,986
1,238,917
Prepayments and accrued income
11,403
32,395
1,321,780
1,271,423
5
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans
71,506
66,836
Trade creditors
36,765
37,573
Corporation tax
20,037
20,037
Other taxation and social security
1,990
31,506
Other creditors
58,462
64,346
Accruals and deferred income
51,498
61,850
240,258
282,148
ORRMAC (NO:500) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2020
- 7 -
6
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans and overdrafts
790,165
561,189
Other creditors
1,232,617
1,238,221
2,022,782
1,799,410
The bank loan is repayable in quarterly instalments. The final instalment is due for payment on 31 March 2028. Interest is charged at 3.64% over Libor.
The bank loan is secured by a standard security over the freehold land and buildings, a bond and floating charge over the whole property, assets and undertakings of the company, and personal guarantees of up to £75,000 each granted by A D M MacDonald and J A M Orr, directors.
7
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
2,000,100 Ordinary Shares of £1 each
2,000,100
2,000,100
8
Reserves
Profit and loss reserves represent the accumulated profits and losses for the company. Other reserves is composed of capital contribution totalling £684,904 (2019 - £684,904).
9
Capital commitments
Capital commitments constitute the contracted costs to completion of tangible fixed assets under construction at the financial reporting date.
10
Ultimate controlling party
The directors consider that A D M MacDonald and J A M Orr are jointly the company's controlling party by virtue of their office and shareholdings.