Company registration number SC119437 (Scotland)
SEAFOOD ECOSSE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
SEAFOOD ECOSSE LIMITED
COMPANY INFORMATION
Directors
Mr W F Gault
Mr J M Stephen
Mr D West
Ms A Gault
Mr C J Gault
Ms F M Gault
Ms S S West
Ms A G J Leiper
Mr D W Leiper
Mr W Leiper
Ms A Stephen
Secretary
Brodies Secretarial Services Limited
Company number
SC119437
Registered office
Brodies House
31-33 Union Grove
Aberdeen
AB10 6SD
Auditor
Murray, Taylor LLP
10 Murray Lane
Montrose
Angus
DD10 8LF
SEAFOOD ECOSSE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Income statement
7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
SEAFOOD ECOSSE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

Review of the business

The results for the year and financial position of the company are shown in the annexed financial statements.

The financial statements for the year show that the company has achieved a pre-tax profit of £5,001,030. This is up from £4,595,828 in 2021.

The turnover for the year is up from £44,898,104 in 2021 to £50,788,084. Shareholder funds have risen from £11,314,937 to £13,358,670. Trading conditions continue to be tough, but the directors are satisfied with the performance achieved.

Principal risks and uncertainties

The company's operations expose it to a variety of financial risks that include the effects of changes in debt, market prices, credit risk, liquidity risk, interest rate risk and exchange risk. The company directors closely monitor those risks on an ongoing basis to seek to limit any adverse conditions which may affect the financial performance of the company.

On behalf of the board

Mr D W Leiper
Director
29 September 2023
SEAFOOD ECOSSE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company continued to be that of wholesaling seafood.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £2,158,835. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr W F Gault
Mr J M Stephen
Mr D West
Ms A Gault
Mr C J Gault
Ms F M Gault
Ms S S West
Ms A G J Leiper
Mr D W Leiper
Mr W Leiper
Ms A Stephen
Financial instruments
Foreign currency risk

Due to the level of export sales, the company uses derivative financial instruments, by using forward exchange contracts to purchase Euros, and this is certainly one of the biggest risks that the company faces. However the directors closely monitor the exchange rate for any significant adverse conditions and therefore can take appropriate action when necessary.

Future developments

After a successful trading year, the company directors' are confident that they can continue to overcome external market pressures by offering a high quality service, maintaining good relationships with customers and continuing to be competitive with prices offered to customers and suppliers.

Auditor

The auditor, Murray, Taylor LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

SEAFOOD ECOSSE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr D W Leiper
Director
29 September 2023
SEAFOOD ECOSSE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SEAFOOD ECOSSE LIMITED
- 4 -
Opinion

We have audited the financial statements of Seafood Ecosse Limited (the 'company') for the year ended 31 December 2022 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

SEAFOOD ECOSSE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF SEAFOOD ECOSSE LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

 

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the holiday resort sector.

 

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including relevant legislation such as the Companies Act 2006, taxation legislation, data protection, employment and health and safety legislation.

 

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence.

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

 

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulation.

SEAFOOD ECOSSE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF SEAFOOD ECOSSE LIMITED
- 6 -

To address the risk of fraud through management bias and override of controls, we:

 

•performed analytical procedures to identify any unusual or unexpected relationships;

 

•tested journal entries to identify unusual transactions;

 

•investigated the rationale behind significant or unusual transaction

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

•agreeing financial statement disclosures to underlying supporting documentation;

 

•enquiring of management as to actual and potential litigation and claims;

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

R J Sim F.C.C.A. (Senior Statutory Auditor)
For and on behalf of Murray, Taylor LLP
Chartered Certified Accountants
Statutory Auditor
10 Murray Lane
Montrose
Angus
DD10 8LF
29 September 2023
SEAFOOD ECOSSE LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
2022
2021
Notes
£
£
Revenue
3
50,788,085
44,898,104
Cost of sales
(43,130,889)
(38,069,921)
Gross profit
7,657,196
6,828,183
Administrative expenses
(2,813,672)
(2,444,384)
Other operating income
186,734
221,774
Operating profit
4
5,030,258
4,605,573
Investment income
7
8,383
2,945
Finance costs
8
(37,611)
(12,690)
Profit before taxation
5,001,030
4,595,828
Tax on profit
9
(741,412)
(848,866)
Profit for the financial year
4,259,618
3,746,962

The income statement has been prepared on the basis that all operations are continuing operations.

SEAFOOD ECOSSE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
2022
2021
£
£
Profit for the year
4,259,618
3,746,962
Other comprehensive income
-
-
Total comprehensive income for the year
4,259,618
3,746,962
SEAFOOD ECOSSE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
31 December 2022
- 9 -
2022
2021
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
11
2,457,046
2,005,611
Investments
12
535,300
535,300
2,992,346
2,540,911
Current assets
Inventories
15
447,263
91,649
Trade and other receivables
16
14,111,572
10,710,470
Cash and cash equivalents
1,554,045
2,429,841
16,112,880
13,231,960
Current liabilities
17
(5,041,022)
(3,925,063)
Net current assets
11,071,858
9,306,897
Total assets less current liabilities
14,064,204
11,847,808
Non-current liabilities
18
(414,913)
(331,733)
Provisions for liabilities
Deferred tax liability
20
235,084
202,651
(235,084)
(202,651)
Net assets
13,414,207
11,313,424
Equity
Called up share capital
23
182,000
182,000
Capital redemption reserve
24
98,000
98,000
Retained earnings
13,134,207
11,033,424
Total equity
13,414,207
11,313,424
The financial statements were approved by the board of directors and authorised for issue on 29 September 2023 and are signed on its behalf by:
Mr D W Leiper
Director
Company Registration No. SC119437
SEAFOOD ECOSSE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
Share capital
Capital redemption reserve
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 January 2021
182,000
98,000
9,454,544
9,734,544
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
3,746,962
3,746,962
Dividends
10
-
-
(2,168,082)
(2,168,082)
Balance at 31 December 2021
182,000
98,000
11,033,424
11,313,424
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
4,259,618
4,259,618
Dividends
10
-
-
(2,158,835)
(2,158,835)
Balance at 31 December 2022
182,000
98,000
13,134,207
13,414,207
SEAFOOD ECOSSE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
2,795,614
3,494,738
Interest paid
(37,611)
(12,690)
Income taxes paid
(837,575)
(776,235)
Net cash inflow from operating activities
1,920,428
2,705,813
Investing activities
Purchase of property, plant and equipment
(648,558)
(82,383)
Proceeds from disposal of property, plant and equipment
-
0
7,000
Purchase of subsidiaries
-
0
(100)
Repayment of loans
-
0
490,995
Interest received
8,383
2,945
Net cash (used in)/generated from investing activities
(640,175)
418,457
Financing activities
Dividends paid
(2,158,835)
(2,168,082)
Net cash used in financing activities
(2,158,835)
(2,168,082)
Net (decrease)/increase in cash and cash equivalents
(878,582)
956,188
Cash and cash equivalents at beginning of year
2,429,841
1,473,653
Cash and cash equivalents at end of year
1,551,259
2,429,841
Relating to:
Cash at bank and in hand
1,554,045
2,429,841
Bank overdrafts included in creditors payable within one year
(2,786)
-
0
SEAFOOD ECOSSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
1
Accounting policies
Company information

Seafood Ecosse Limited is a private company limited by shares incorporated in Scotland. The registered office is Brodies House, 31-33 Union Grove, Aberdeen, AB10 6SD.

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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts 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.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

Seafood Ecosse Limited is a wholly owned subsidiary of Sco-Bere Seafood (Holdings) Limited, which itself is a wholly owned subsidiary of U Sea Limited and the results of Seafood Ecosse Limited are included in the consolidated financial statements of U Sea Limited, Brodies House, 31-33 Union Grove, Aberdeen, AB10 6SD, which are available from Companies House.

 

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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.

 

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.

1.4
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.

SEAFOOD ECOSSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -

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:

Freehold land and buildings
2% straight line basis
Plant and equipment
10% and 25% straight line basis
Fixtures and fittings
33% and 25% straight line basis
Motor vehicles
25% straight line 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.

1.5
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.

1.6
Impairment of non-current assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

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.

SEAFOOD ECOSSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -
1.7
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.

 

Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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 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.

1.9
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 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

SEAFOOD ECOSSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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, 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 payments 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 payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

SEAFOOD ECOSSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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.

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 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. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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 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
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

SEAFOOD ECOSSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 17 -
1.14
Government grants

Government grants are recognised at the fair value of the asset received 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 in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Revenue
2022
2021
£
£
Revenue analysed by class of business
Wholesale of fish
50,788,085
44,898,104
2022
2021
£
£
Revenue analysed by geographical market
UK
8,252,261
6,145,374
Europe
42,535,824
38,752,730
50,788,085
44,898,104
2022
2021
£
£
Other revenue
Interest income
8,383
2,945
Grants received
22,821
87,779
SEAFOOD ECOSSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(22,821)
(87,779)
Fees payable to the company's auditor for the audit of the company's financial statements
19,000
14,000
Depreciation of owned property, plant and equipment
197,123
205,016
Profit on disposal of property, plant and equipment
-
(7,000)
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Production
75
64
Administration and support
20
17
Total
95
81

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
3,497,312
3,301,296
Social security costs
360,045
312,102
Pension costs
179,766
160,212
4,037,123
3,773,610
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
243,968
170,320
Company pension contributions to defined contribution schemes
10,981
10,372
254,949
180,692

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2021 - 1).

SEAFOOD ECOSSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
6
Directors' remuneration
(Continued)
- 19 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
243,968
170,320
Company pension contributions to defined contribution schemes
10,981
10,372
7
Investment income
2022
2021
£
£
Interest income
Interest on bank deposits
4,128
145
Other interest income
4,255
2,800
Total income
8,383
2,945
2022
2021
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
4,128
145
8
Finance costs
2022
2021
£
£
Other finance costs:
Other interest
37,611
12,690
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
708,979
874,726
Adjustments in respect of prior periods
-
0
(14,953)
Total current tax
708,979
859,773
Deferred tax
Origination and reversal of timing differences
32,433
(10,907)
Total tax charge
741,412
848,866
SEAFOOD ECOSSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
9
Taxation
(Continued)
- 20 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Profit before taxation
5,001,030
4,595,828
Expected tax charge based on the standard rate of corporation tax in the UK of 019% (2021: 19.00%)
950,196
873,207
Tax effect of expenses that are not deductible in determining taxable profit
6,061
(2,178)
Tax effect of income not taxable in determining taxable profit
(4,336)
(4,335)
Adjustments in respect of prior years
-
0
(14,953)
Group relief
(269,922)
(3,297)
Permanent capital allowances in excess of depreciation
26,980
11,329
Deferred tax adjustment
32,433
(10,907)
Taxation charge for the year
741,412
848,866
10
Dividends
2022
2021
£
£
Interim paid
2,158,835
2,168,082
SEAFOOD ECOSSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
11
Property, plant and equipment
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2022
1,389,927
1,357,660
74,652
99,450
2,921,689
Additions
617,964
18,323
2,771
9,500
648,558
Disposals
-
0
(32,103)
(3,557)
-
0
(35,660)
At 31 December 2022
2,007,891
1,343,880
73,866
108,950
3,534,587
Depreciation and impairment
At 1 January 2022
249,796
567,424
55,996
42,862
916,078
Depreciation charged in the year
26,732
133,395
9,956
27,040
197,123
Eliminated in respect of disposals
-
0
(32,103)
(3,557)
-
0
(35,660)
At 31 December 2022
276,528
668,716
62,395
69,902
1,077,541
Carrying amount
At 31 December 2022
1,731,363
675,164
11,471
39,048
2,457,046
At 31 December 2021
1,140,131
790,236
18,656
56,588
2,005,611
12
Fixed asset investments
2022
2021
Notes
£
£
Investments in subsidiaries
13
300
300
Investments in associates
14
375,000
375,000
Unlisted investments
160,000
160,000
535,300
535,300
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Seafood Ecosse (Fraserburgh) Limited
Brodies House, 31-33 Union Grove, Aberdeen, AB10 6SD
£1 Ordinary shares
100.00
Seafood Ecosse Spain
C/TAJONAR, 12 Entreplanta, Pamplona (Navarra) Spain
Ordinary shares
100.00
U Sea Fishing Limited
C/O Brodies Llp, 90 Bartholomew Close, London, EC1A 7BN
£1 Ordinary shares
100.00
14
Associates

Details of the company's associates at 31 December 2022 are as follows:

SEAFOOD ECOSSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
14
Associates
(Continued)
- 22 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
The Star Fishing Company Limited
Unit 6, Oban, Argyll, PA24 4LS
Ordinary shares
50.00
-
Q Varl Fishing Company Limited
50 The Terrace, Torquay, Devon, TQ1 1DD
Ordinary shares
-
50.00
15
Inventories
2022
2021
£
£
Raw materials and consumables
447,263
91,649
16
Trade and other receivables
2022
2021
Amounts falling due within one year:
£
£
Trade receivables
8,912,492
6,329,922
Amounts owed by group undertakings
5,025,775
4,291,866
Other receivables
153,444
68,995
Prepayments and accrued income
19,861
19,687
14,111,572
10,710,470
17
Current liabilities
2022
2021
Notes
£
£
Bank loans and overdrafts
19
2,786
-
0
Trade payables
3,321,144
2,407,193
Corporation tax
746,130
874,726
Other taxation and social security
191,368
175,553
Government grants
21
22,821
22,821
Accruals and deferred income
756,773
444,770
5,041,022
3,925,063
18
Non-current liabilities
2022
2021
Notes
£
£
Government grants
21
414,913
331,733
SEAFOOD ECOSSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
19
Borrowings
2022
2021
£
£
Bank overdrafts
2,786
-
0
Payable within one year
2,786
-
0

 

20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
235,084
202,651
2022
Movements in the year:
£
Liability at 1 January 2022
202,651
Charge to profit or loss
32,433
Liability at 31 December 2022
235,084

The deferred tax liability set out above is expected to reverse over the coming years and relates to accelerated capital allowances that are expected to mature within the same period.

21
Government grants
2022
2021
£
£
Arising from government grants
437,734
354,554
Included in the financial statements as follows:
Current liabilities
22,821
22,821
Non-current liabilities
414,913
331,733
437,734
354,554
SEAFOOD ECOSSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
22
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
179,766
160,212

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

23
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
'A' Ordinary shares of £1 each
140,000
140,000
140,000
140,000
'B' Ordinary shares of £1 each
42,000
42,000
42,000
42,000
182,000
182,000
182,000
182,000

The holders of the A ordinary and B ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company's residual assets.

24
Capital redemption reserve

The capital redemption reserve was created when the company purchased 98,000 of its own B ordinary shares.

25
Capital commitments

Amounts contracted for but not provided in the financial statements:

2022
2021
£
£
Acquisition of property, plant and equipment
483,472
-
SEAFOOD ECOSSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
26
Cash generated from operations
2022
2021
£
£
Profit for the year after tax
4,259,618
3,746,962
Adjustments for:
Taxation charged
741,412
848,866
Finance costs
37,611
12,690
Investment income
(8,383)
(2,945)
Gain on disposal of property, plant and equipment
-
(7,000)
Depreciation and impairment of property, plant and equipment
197,123
205,016
Movements in working capital:
Increase in inventories
(355,614)
(45,568)
Increase in trade and other receivables
(3,401,102)
(1,185,764)
Increase/(decrease) in trade and other payables
1,241,769
(54,698)
Increase/(decrease) in deferred income
83,180
(22,821)
Cash generated from operations
2,795,614
3,494,738
27
Analysis of changes in net funds
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
2,429,841
(875,796)
1,554,045
Bank overdrafts
-
0
(2,786)
(2,786)
2,429,841
(878,582)
1,551,259
2022-12-312022-01-01falseCCH SoftwareCCH Accounts Production 2023.200Mr W F GaultMr J M StephenMr D WestMs A GaultMr C J GaultMs F M GaultMs S S WestMs A G J LeiperMr D W LeiperMr W LeiperMs A StephenBrodies Secretarial Services Limited4259618SC1194372022-01-012022-12-31SC119437bus:Director12022-01-012022-12-31SC119437bus:Director22022-01-012022-12-31SC119437bus:Director32022-01-012022-12-31SC119437bus:Director42022-01-012022-12-31SC119437bus:Director52022-01-012022-12-31SC119437bus:Director62022-01-012022-12-31SC119437bus:Director72022-01-012022-12-31SC119437bus:Director82022-01-012022-12-31SC119437bus:Director92022-01-012022-12-31SC119437bus:Director102022-01-012022-12-31SC119437bus:Director112022-01-012022-12-31SC119437bus:CompanySecretary12022-01-012022-12-31SC119437bus:RegisteredOffice2022-01-012022-12-31SC1194372022-12-31SC1194372021-01-012021-12-31SC119437core:RetainedEarningsAccumulatedLosses2021-01-012021-12-31SC119437core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31SC1194372021-12-31SC119437core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-31SC119437core:PlantMachinery2022-12-31SC119437core:FurnitureFittings2022-12-31SC119437core:MotorVehicles2022-12-31SC119437core:LandBuildingscore:OwnedOrFreeholdAssets2021-12-31SC119437core:PlantMachinery2021-12-31SC119437core:FurnitureFittings2021-12-31SC119437core:MotorVehicles2021-12-31SC119437core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-31SC119437core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-31SC119437core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-31SC119437core:Non-currentFinancialInstrumentscore:AfterOneYear2021-12-31SC119437core:CurrentFinancialInstruments2022-12-31SC119437core:CurrentFinancialInstruments2021-12-31SC119437core:ShareCapital2022-12-31SC119437core:ShareCapital2021-12-31SC119437core:CapitalRedemptionReserve2022-12-31SC119437core:CapitalRedemptionReserve2021-12-31SC119437core:RetainedEarningsAccumulatedLosses2022-12-31SC119437core:RetainedEarningsAccumulatedLosses2021-12-31SC119437core:ShareCapital2020-12-31SC119437core:CapitalRedemptionReserve2020-12-31SC119437core:RetainedEarningsAccumulatedLosses2020-12-31SC119437core:ShareCapitalOrdinaryShares2022-12-31SC119437core:ShareCapitalOrdinaryShares2021-12-31SC1194372021-12-31SC1194372020-12-31SC119437core:WithinOneYear2022-12-31SC119437core:WithinOneYear2021-12-31SC119437core:LandBuildingscore:OwnedOrFreeholdAssets2022-01-012022-12-31SC119437core:PlantMachinery2022-01-012022-12-31SC119437core:FurnitureFittings2022-01-012022-12-31SC119437core:MotorVehicles2022-01-012022-12-31SC11943712022-01-012022-12-31SC11943712021-01-012021-12-31SC119437core:UKTax2022-01-012022-12-31SC119437core:UKTax2021-01-012021-12-31SC119437core:LandBuildingscore:OwnedOrFreeholdAssets2021-12-31SC119437core:PlantMachinery2021-12-31SC119437core:FurnitureFittings2021-12-31SC119437core:MotorVehicles2021-12-31SC119437core:Non-currentFinancialInstruments2022-12-31SC119437core:Non-currentFinancialInstruments2021-12-31SC119437core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2022-12-31SC119437core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2021-12-31SC119437bus:PrivateLimitedCompanyLtd2022-01-012022-12-31SC119437bus:FRS1022022-01-012022-12-31SC119437bus:Audited2022-01-012022-12-31SC119437bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP