Company Registration No. SC434438 (Scotland)
LOCHFYNE LANGOUSTINES LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE 14 MONTH PERIOD ENDED 31 DECEMBER 2018
PAGES FOR FILING WITH REGISTRAR
LOCHFYNE LANGOUSTINES LTD
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 10
LOCHFYNE LANGOUSTINES LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2018
31 December 2018
- 1 -
2018
2017
Notes
£
£
£
£
Non-current assets
Intangible assets
3
155,000
300,000
Property, plant and equipment
4
454,920
532,452
Investments
5
950,002
-
1,559,922
832,452
Current assets
Inventories
20,327
30,000
Trade and other receivables
6
238,566
275,472
Cash and cash equivalents
153
4,610
259,046
310,082
Current liabilities
8
(645,185)
(635,714)
Net current liabilities
(386,139)
(325,632)
Total assets less current liabilities
1,173,783
506,820
Non-current liabilities
9
(1,163,068)
(494,579)
Net assets
10,715
12,241
Equity
Called up share capital
10
100
100
Other reserves
40,000
40,000
Retained earnings
(29,385)
(27,859)
Total equity
10,715
12,241
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
For the financial 14 month period 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 14 month period 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.
LOCHFYNE LANGOUSTINES LTD
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2018
31 December 2018
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 26 September 2019 and are signed on its behalf by:
Andrew McMillan
Director
Company Registration No. SC434438
LOCHFYNE LANGOUSTINES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 14 MONTH PERIOD ENDED 31 DECEMBER 2018
- 3 -
1
Accounting policies
Company information
Lochfyne Langoustines Ltd is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
The Old Surgery, School Road, Tarbert, Argyll, PA29 6UL.
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 boats and licences and certain boats and licences at fair value. The principal accounting policies adopted are set out below.
1.2
Reporting period
The
financial statements
are presented for the 14 month period ended 31 December 2018. T
he reason f
the directors have elected to present a longer period is that they consider 31 December to be a more appropriate time in the business cycle for the company's year end. In addition they acquired a subsidiary company in the year which had a 31 December year end and the directors wanted to align the year ends of the two companies. As a consequence of presenting the accounts for 14 months to 31 December the co
mparative amounts presented in the financial statements (including
the related notes) are not entirely comparable.
1.3
Revenue
Revenue 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
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
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:
Licences
NIL
1.5
Property, plant and equipment
Property, plant and equipment
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
LOCHFYNE LANGOUSTINES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 14 MONTH PERIOD ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 4 -
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:
Processing plant
NIL
Boats
NIL
Plant and machinery
20% reducing balance
Motor vehicles
25% 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
.
1.6
Non-current investments
Interests in subsidiaries, associates and jointly controlled entities 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.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.7
Impairment of non-current 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.
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.
LOCHFYNE LANGOUSTINES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 14 MONTH PERIOD ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 5 -
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.
1.8
Inventories
Inventories 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 inventories to their present location and condition.
1.9
Cash and cash equivalents
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.
1.10
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 trade and other receivables 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.
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 trade and other payables, bank loans, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction
.
Financial liabilities classified as payable within one year are not amortised.
1.11
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.
LOCHFYNE LANGOUSTINES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 14 MONTH PERIOD ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 6 -
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 non-current 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 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.
1.14
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 14 month period was 15 (2017 - 12).
3
Intangible fixed assets
Other
£
Cost or valuation
At 31 October 2017
300,000
Additions
90,000
Disposals
(185,000)
Revaluation
(50,000)
At 31 December 2018
155,000
Amortisation and impairment
At 31 October 2017 and 31 December 2018
-
Carrying amount
At 31 December 2018
155,000
At 30 October 2017
300,000
LOCHFYNE LANGOUSTINES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 14 MONTH PERIOD ENDED 31 DECEMBER 2018
3
Intangible fixed assets
(Continued)
- 7 -
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2018
2017
£
£
Cost
110,000
150,300
Accumulated amortisation
-
-
Carrying value
110,000
150,300
The revaluation surplus is disclosed in note 3.
4
Property, plant and equipment
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 31 October 2017
105,450
465,698
571,148
Additions
-
40,761
40,761
Disposals
-
(120,000)
(120,000)
Revaluation
-
20,000
20,000
At 31 December 2018
105,450
406,459
511,909
Depreciation and impairment
At 31 October 2017
-
40,969
40,969
Depreciation charged in the 14 month period
-
16,020
16,020
At 31 December 2018
-
56,989
56,989
Carrying amount
At 31 December 2018
105,450
349,470
454,920
At 30 October 2017
107,723
424,729
532,452
Boats
with a carrying amount of £275,000 were revalued at
24 October 2017
by
Sunderland Marine
, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar
boats
.
LOCHFYNE LANGOUSTINES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 14 MONTH PERIOD ENDED 31 DECEMBER 2018
4
Property, plant and equipment
(Continued)
- 8 -
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2018
2017
£
£
Cost
263,142
333,142
Accumulated depreciation
-
-
Carrying value
263,142
333,142
The revaluation surplus is disclosed in note 3.
5
Fixed asset investments
2018
2017
£
£
Investments
950,002
-
The investment represents the whole of the issued share capital of Loch Fyne Seafarms Ltd.
Movements in non-current investments
Shares in group undertakings
£
Cost or valuation
At 31 October 2017
-
Additions
1,161,408
Valuation changes
(211,406)
At 31 December 2018
950,002
Carrying amount
At 31 December 2018
950,002
At 30 October 2017
-
LOCHFYNE LANGOUSTINES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 14 MONTH PERIOD ENDED 31 DECEMBER 2018
- 9 -
6
Trade and other receivables
2018
2017
Amounts falling due within one year:
£
£
Trade receivables
213,670
201,653
Other receivables
24,896
73,819
238,566
275,472
7
Capital Reserves
During 2017 the directors capitalised £40,000 of amounts due to them to increase the company's capital base.
8
Current liabilities
2018
2017
£
£
Bank loans and overdrafts
80,157
39,588
Trade payables
355,148
264,083
Amounts owed to group undertakings
(17,987)
-
Taxation and social security
17,738
4,865
Other payables
210,129
327,178
645,185
635,714
Included in other payables is an amount of £30,000 due to Andrew MacMillan.
AM Seafoods and Gordon Goldsworthy have a boat mortgage over the MFV Margaritta, MFV Morning Light and certain licences and the premises at Church Hill, Campbeltown Road, Tarbert.
The Royal Bank of Scotland and Royal Bank Invoice Financing Ltd have a fixed charge over Church Hill, Campbeltown Road, Tarbert and floating charge over the other assets of the company.
9
Non-current liabilities
2018
2017
£
£
Bank loans and overdrafts
13,649
26,755
Other payables
1,149,419
467,824
1,163,068
494,579
Included in other payables is an amount of £435,709 due to Andrew MacMillan and £15,709 to James MacMillan directors of the company.
LOCHFYNE LANGOUSTINES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 14 MONTH PERIOD ENDED 31 DECEMBER 2018
- 10 -
10
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
100
100
2018-12-31
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Andrew McMillan
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