Company Registration No. SC434438 (Scotland)
LOCHFYNE LANGOUSTINES LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
LOCHFYNE LANGOUSTINES LTD
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 9
LOCHFYNE LANGOUSTINES LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2019
31 December 2019
- 1 -
2019
2018
Notes
£
£
£
£
Non-current assets
Intangible assets
3
80,000
155,000
Property, plant and equipment
4
285,038
454,920
Investments
5
950,002
950,002
1,315,040
1,559,922
Current assets
Inventories
16,994
20,327
Trade and other receivables
6
120,796
238,566
Cash and cash equivalents
256
153
138,046
259,046
Current liabilities
8
(275,845)
(645,185)
Net current liabilities
(137,799)
(386,139)
Total assets less current liabilities
1,177,241
1,173,783
Non-current liabilities
9
(1,201,298)
(1,163,068)
Net (liabilities)/assets
(24,057)
10,715
Equity
Called up share capital
100
100
Other reserves
40,000
40,000
Retained earnings
(64,157)
(29,385)
Total equity
(24,057)
10,715
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.
LOCHFYNE LANGOUSTINES LTD
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2019
31 December 2019
2019
2018
Notes
£
£
£
£
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 17 December 2020 and are signed on its behalf by:
James D McMillan
Director
Company Registration No. SC434438
LOCHFYNE LANGOUSTINES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 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
Going concern
The directors are aware that the disruption to the company's supply chain caused by COVID-19 has had a material impact on the company's trading performance since the balance sheet date and throughout 2020 and to the extent that this disruption continues for any extended period of time after the date of signing these accounts could impact on the company's ability to continue as a going concern. These financial statements are prepared on the going concern basis as the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.
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 YEAR ENDED 31 DECEMBER 2019
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
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.
1.8
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.
LOCHFYNE LANGOUSTINES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 5 -
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.
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.
LOCHFYNE LANGOUSTINES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 6 -
1.13
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
in the period
are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Total
7
15
3
Intangible fixed assets
Other
£
Cost or valuation
At 1 January 2019
155,000
Disposals
(75,000)
At 31 December 2019
80,000
Amortisation and impairment
At 1 January 2019 and 31 December 2019
-
Carrying amount
At 31 December 2019
80,000
At 31 December 2018
155,000
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:
2019
2018
£
£
Cost
110,000
110,000
Accumulated amortisation
-
-
Carrying value
110,000
110,000
LOCHFYNE LANGOUSTINES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
3
Intangible fixed assets
(Continued)
- 7 -
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 1 January 2019
105,450
406,459
511,909
Additions
-
1,972
1,972
Disposals
-
(160,000)
(160,000)
At 31 December 2019
105,450
248,431
353,881
Depreciation and impairment
At 1 January 2019
-
56,989
56,989
Depreciation charged in the year
-
11,854
11,854
At 31 December 2019
-
68,843
68,843
Carrying amount
At 31 December 2019
105,450
179,588
285,038
At 31 December 2018
105,450
349,470
454,920
Boats
with a carrying amount of £135,000 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
.
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:
2019
2018
£
£
Cost
263,142
263,142
Accumulated depreciation
-
-
Carrying value
263,142
263,142
The revaluation surplus is disclosed in note 3.
LOCHFYNE LANGOUSTINES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
5
Fixed asset investments
2019
2018
£
£
Shares in group undertakings and participating interests
950,002
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 1 January 2019 & 31 December 2019
950,002
Carrying amount
At 31 December 2019
950,002
At 31 December 2018
950,002
6
Trade and other receivables
2019
2018
Amounts falling due within one year:
£
£
Trade receivables
113,539
213,670
Other receivables
7,257
24,896
120,796
238,566
7
Capital Reserves
During 2017 the directors capitalised £40,000 of amounts due to them to increase the company's capital base.
LOCHFYNE LANGOUSTINES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 9 -
8
Current liabilities
2019
2018
£
£
Bank loans and overdrafts
84,740
80,157
Trade payables
259,206
355,148
Amounts owed to group undertakings
(267,291)
(17,987)
Taxation and social security
22,870
17,738
Other payables
176,320
210,129
275,845
645,185
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 Bibby Finance Limited have a fixed charge over Church Hill, Campbeltown Road, Tarbert and floating charge over the other assets of the company.
9
Non-current liabilities
2019
2018
£
£
Bank loans and overdrafts
-
13,649
Other payables
1,201,298
1,149,419
1,201,298
1,163,068
Included in other payables is an amount of £720,149 due to Andrew MacMillan and £5,149 to James MacMillan directors of the company.
2019-12-31
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CCH Software
CCH Accounts Production 2020.200
No description of principal activity
James D McMillan
Andrew McMillan
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