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REGISTERED NUMBER: 04450315 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31st March 2023

for

West Scottish Lamb Limited

West Scottish Lamb Limited (Registered number: 04450315)






Contents of the Financial Statements
for the Year Ended 31st March 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4 to 5

Income Statement 6

Other Comprehensive Income 7

Balance Sheet 8

Statement of Changes in Equity 9

Cash Flow Statement 10

Notes to the Cash Flow Statement 11

Notes to the Financial Statements 12 to 20


West Scottish Lamb Limited

Company Information
for the Year Ended 31st March 2023







DIRECTORS: J F Errington
D Burton



SECRETARY: Mrs A J Burton



REGISTERED OFFICE: Carlisle Abattoir
Brunthill Road
Kingstown Industrial Estate
Carlisle
Cumbria
CA3 0EH



REGISTERED NUMBER: 04450315 (England and Wales)



AUDITORS: Farries, Kirk and McVean
Chartered Accountants
Statutory Auditors
Dumfries Enterprise Park
Heathhall
Dumfries
DUMFRIESSHIRE
DG1 3SJ



SOLICITORS: Arnison Heelis
1 St Andrew's Place
Penrith
CA11 7AW

West Scottish Lamb Limited (Registered number: 04450315)

Strategic Report
for the Year Ended 31st March 2023

The directors present their strategic report for the year ended 31st March 2023.

West Scottish Lamb Limited run an abattoir. The abattoir is based in Carlisle, though the product is predominantly Scottish. They deal in lamb and beef production and associated by-products.

The directors believe that the company is well placed to service the meat production industry from its location close to major transport routes between Scotland and England. Their staff and management team have lengthy experience in the industry.

REVIEW OF BUSINESS
The directors are again very pleased with the results. Turnover was maintained at £51.6m (2022 - £51.7m). They have continued the policy of concentrating mainly on lamb sales. As the majority of sales are to the export market, the Sterling turnover can fluctuate with Euro exchange rate movements regardless of the volume of business. The rate has not changed significantly over the year, remaining between 1.20€ to 1.13€. The low rate has again been good for export trade.

Gross profits during the year under review have risen from £3.5m to £4.4m. Gross profit percentage has increased from 6.9% to 8.5%. Bottom line profit before tax is increased from £1.58m to £1.93m..

Key Performance Indicators (KPI's)
In the opinion of the directors, the key performance indicators of the company are gross profit and turnover as noted above. Given the straightforward nature of the business, the directors are of the opinion that there are no additional KPI's that are necessary for an understanding of the development, performance or position of the business.

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to competition from both national and more local meat dealers, employee retention and product availability.

Financial risk management
The company's operations expose it to little in the way of financial risk. However, a variety of financial risks do exist to an extent including credit risk, liquidity risk currency risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs.

Credit risk
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual is subject to a limit which can only be reassessed by a director.

Liquidity risk
The company finances operations using invoice financing facilities from RBS Invoice Finance Limited. Reliance on this facility is reducing year on year and the company is operating well within available credit limits. However, it still requires the facility in order to ensure there are sufficient available funds for operations.

Currency risk
The company incurs virtually all its expenditure in Sterling but a significant percentage of its income is in Euros. As a result the company faces a risk with respect to movements in the exchange rate between invoice date and payment date.

Interest rate risk
The company has interest bearing liabilities including a bank overdraft and invoice financing facilities. The amount of interest charged on these liabilities is not sufficient to significantly affect company operations.

FUTURE OUTLOOK
The directors expect to continue trading profitably over the forthcoming twelve months, though the company results will always be subject to the fluctuations in the Euro exchange rate. There are no plans for significant expansion within the next twelve months.

SIGNED BY ORDER OF THE DIRECTORS:





D Burton - Director


7th September 2023

West Scottish Lamb Limited (Registered number: 04450315)

Report of the Directors
for the Year Ended 31st March 2023

The directors present their report with the financial statements of the company for the year ended 31st March 2023.

DIVIDENDS
The total distribution of dividends for the year ended 31st March 2023 will be £ 150,000 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1st April 2022 to the date of this report.

J F Errington
D Burton

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Farries, Kirk and McVean, will be proposed for re-appointment at the forthcoming Annual General Meeting.

SIGNED BY ORDER OF THE DIRECTORS:





D Burton - Director


7th September 2023

Report of the Independent Auditors to the Members of
West Scottish Lamb Limited

Opinion
We have audited the financial statements of West Scottish Lamb Limited (the 'company') for the year ended 31st March 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 31st March 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Report of the Independent Auditors to the Members of
West Scottish Lamb Limited


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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:

- we have assessed the susceptibility of the company's financial statements to material misstatement as being low risk. The directors are very involved in the day to day management of the business and have a focus on controls to address potential fraud and error.
- the nature of the company's activities are significantly regulated. We have assessed the main regulations around the company's activities as being those concerning production of food for human consumption. The company's certification compliance with Global Standards for Food Safety was checked and confirmed.
- we have discussed the legal and regulatory framework the company operates under with the directors. This has enabled us to gain an understanding of those applicable to the company and the procedures they operate to ensure compliance.
- we have obtained an understanding of the company's policies and procedures on fraud risk through two way communication with the management and have no knowledge of any actual, suspected or alleged fraud.
- the Senior Statutory Auditor is satisfied that the engagement audit staff were competent to and capable of recognising non-compliance with laws and regulation. No details of any non-compliance were communicated to us and no such potential instances were noted during the audit process.

We have reached these conclusions following enquiries made of those charged with governance and senior staff and following audit testing procedures and review of financial statements.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Gerald McGill, BA CA (Senior Statutory Auditor)
for and on behalf of Farries, Kirk and McVean
Chartered Accountants
Statutory Auditors
Dumfries Enterprise Park
Heathhall
Dumfries
DUMFRIESSHIRE
DG1 3SJ

7th September 2023

West Scottish Lamb Limited (Registered number: 04450315)

Income Statement
for the Year Ended 31st March 2023

2023 2022
Notes £    £   

TURNOVER 3 51,591,162 51,697,924

Cost of sales (47,201,793 ) (48,154,060 )
GROSS PROFIT 4,389,369 3,543,864

Administrative expenses (2,484,895 ) (1,993,616 )
1,904,474 1,550,248

Other operating income 57,896 58,064
OPERATING PROFIT 6 1,962,370 1,608,312


Interest payable and similar expenses 7 (30,332 ) (31,991 )
PROFIT BEFORE TAXATION 1,932,038 1,576,321

Tax on profit 8 (551,888 ) (356,739 )
PROFIT FOR THE FINANCIAL YEAR 1,380,150 1,219,582

West Scottish Lamb Limited (Registered number: 04450315)

Other Comprehensive Income
for the Year Ended 31st March 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,380,150 1,219,582


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,380,150

1,219,582

West Scottish Lamb Limited (Registered number: 04450315)

Balance Sheet
31st March 2023

2023 2022
Notes £    £   
FIXED ASSETS
Tangible assets 10 1,540,999 1,426,543
Investments 11 3,870 3,870
1,544,869 1,430,413

CURRENT ASSETS
Stocks 12 433,697 639,026
Debtors 13 5,209,372 3,392,727
Cash at bank 4,082,315 3,331,405
9,725,384 7,363,158
CREDITORS
Amounts falling due within one year 14 (4,108,331 ) (2,843,759 )
NET CURRENT ASSETS 5,617,053 4,519,399
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,161,922

5,949,812

CREDITORS
Amounts falling due after more than one year 15 (24,631 ) (67,898 )

PROVISIONS FOR LIABILITIES 18 (255,424 ) (230,197 )
NET ASSETS 6,881,867 5,651,717

CAPITAL AND RESERVES
Called up share capital 19 200,080 200,080
Capital redemption reserve 20 100,040 100,040
Retained earnings 20 6,581,747 5,351,597
SHAREHOLDERS' FUNDS 6,881,867 5,651,717

The financial statements were approved by the Board of Directors and authorised for issue on 7th September 2023 and were signed on its behalf by:





D Burton - Director


West Scottish Lamb Limited (Registered number: 04450315)

Statement of Changes in Equity
for the Year Ended 31st March 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   

Balance at 1st April 2021 200,080 4,363,015 100,040 4,663,135

Changes in equity
Dividends - (231,000 ) - (231,000 )
Total comprehensive income - 1,219,582 - 1,219,582
Balance at 31st March 2022 200,080 5,351,597 100,040 5,651,717

Changes in equity
Dividends - (150,000 ) - (150,000 )
Total comprehensive income - 1,380,150 - 1,380,150
Balance at 31st March 2023 200,080 6,581,747 100,040 6,881,867

West Scottish Lamb Limited (Registered number: 04450315)

Cash Flow Statement
for the Year Ended 31st March 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,095,152 2,465,596
Interest paid (24,690 ) (25,427 )
Interest element of hire purchase payments paid (5,642 ) (6,564 )
Tax paid (279,155 ) (243,178 )
Net cash from operating activities 1,785,665 2,190,427

Cash flows from investing activities
Purchase of tangible fixed assets (281,488 ) (239,004 )
Sale of tangible fixed assets - 42,165
Net cash from investing activities (281,488 ) (196,839 )

Cash flows from financing activities
Capital repayments in year (43,267 ) (67,113 )
Amount withdrawn by directors (560,000 ) -
Equity dividends paid (150,000 ) (231,000 )
Net cash from financing activities (753,267 ) (298,113 )

Increase in cash and cash equivalents 750,910 1,695,475
Cash and cash equivalents at beginning of year 2 3,331,405 1,635,930

Cash and cash equivalents at end of year 2 4,082,315 3,331,405

West Scottish Lamb Limited (Registered number: 04450315)

Notes to the Cash Flow Statement
for the Year Ended 31st March 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 1,932,038 1,576,321
Depreciation charges 167,033 157,532
Loss on disposal of fixed assets - 16,927
Finance costs 30,332 31,991
2,129,403 1,782,771
Decrease/(increase) in stocks 205,329 (307,553 )
(Increase)/decrease in trade and other debtors (1,256,645 ) 793,741
Increase in trade and other creditors 1,017,065 196,637
Cash generated from operations 2,095,152 2,465,596

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 4,082,315 3,331,405
Year ended 31st March 2022
31.3.22 1.4.21
£    £   
Cash and cash equivalents 3,331,405 1,635,930


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.22 Cash flow At 31.3.23
£    £    £   
Net cash
Cash at bank 3,331,405 750,910 4,082,315
3,331,405 750,910 4,082,315
Debt
Finance leases (111,165 ) 43,267 (67,898 )
(111,165 ) 43,267 (67,898 )
Total 3,220,240 794,177 4,014,417

West Scottish Lamb Limited (Registered number: 04450315)

Notes to the Financial Statements
for the Year Ended 31st March 2023

1. STATUTORY INFORMATION

West Scottish Lamb Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

Depreciation charges in accordance with the accounting policies stated below.
Provision for bad debt.

Turnover
Turnover represents the net invoiced sales of meat, services and by-products during the financial year under review excluding value added tax. With respect to sales of meat products, revenue is recognised based on date of despatch to customers.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Improvements to property - 4% on cost
Plant and machinery - 15% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 15% on reducing balance

Amounts written off each asset over the estimated useful life represent cost less residual value.

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period.

Stocks
Livestock is valued at specific invoiced cost. Meat stocks are valued at retail value. By products are not valued due to the uncertainty of value at time of production. Consumables are valued at the lower of cost and net realisable value on a first in, first out basis.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

West Scottish Lamb Limited (Registered number: 04450315)

Notes to the Financial Statements - continued
for the Year Ended 31st March 2023

2. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies have been translated into sterling at the rate available to the company from its bank at the period end date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company makes contributions to a workplace pension on behalf of employees and occasionally makes contributions to personal schemes on behalf of directors. Contributions payable to these schemes are charged to profit or loss in the period to which they relate.

Invoice financing
The company use Invoice Financing through RBS Invoice Finance Limited to accelerate the receipt of funds due from debtors. No rights are transferred to the finance provider, all benefits and risks remain with the company and all finance is potentially repayable therefore linked presentation is not appropriate. Accordingly debtors are disclosed in full within the balance sheet and the associated finance is included within creditors due within one year.

Financial instruments
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors
Trade debtors are amounts due from customers for the sale of services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price and represent the full value of the services charged to customers, including any amounts charged on for third parties.

Trade Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date they are presented as non current liabilities.

Borrowings
Interest bearing borrowings are initially recorded at fair value, net of transaction costs. Interest bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transactions costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share Capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

West Scottish Lamb Limited (Registered number: 04450315)

Notes to the Financial Statements - continued
for the Year Ended 31st March 2023

2. ACCOUNTING POLICIES - continued

Provisions and contingencies
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events; it is probably that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

3. TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Sale of goods 51,177,180 51,370,696
Rendering of services 413,982 327,228
51,591,162 51,697,924

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 15,102,067 17,849,323
Europe 36,489,095 33,848,601
51,591,162 51,697,924

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,838,900 1,675,333
Social security costs 179,225 135,203
Other pension costs 32,853 30,537
2,050,978 1,841,073

The average number of employees during the year was as follows:
2023 2022

Directors 2 2
Management staff 3 4
Administrative staff 3 4
Production staff 59 62
67 72

5. DIRECTORS' EMOLUMENTS
2023 2022
£    £   
Directors' remuneration 201,470 74,720

Information regarding the highest paid director for the year ended 31st March 2023 is as follows:
2023
£   
Emoluments etc 101,470

West Scottish Lamb Limited (Registered number: 04450315)

Notes to the Financial Statements - continued
for the Year Ended 31st March 2023

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 84,768 69,670
Depreciation - owned assets 144,516 136,111
Depreciation - assets on hire purchase contracts 22,516 21,419
Loss on disposal of fixed assets - 16,927
Auditors' remuneration 13,500 13,500
Foreign exchange differences (54,956 ) (33,818 )

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest & discounting 24,690 25,427
Hire purchase 5,642 6,564
30,332 31,991

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 337,662 279,156
Interest (1 ) (35 )
s455 tax payable 189,000 -
Total current tax 526,661 279,121

Deferred tax 25,227 77,618
Tax on profit 551,888 356,739

UK corporation tax has been charged at 19% (2022 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,932,038 1,576,321
Profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 -
19%)

367,087

299,501

Effects of:
Expenses not deductible for tax purposes 734 734
Capital allowances in excess of depreciation (30,160 ) (21,079 )
provisions
Deferred taxation 25,227 77,618
Corporation tax interest - (35 )
s455 tax 189,000 -
Total tax charge 551,888 356,739

From 1 April 2023 the UK Corporation Tax will rise to 25% for companies with profits exceeding £250,000.

West Scottish Lamb Limited (Registered number: 04450315)

Notes to the Financial Statements - continued
for the Year Ended 31st March 2023

9. DIVIDENDS
2023 2022
£    £   
"C" Ordinary shares of £1 each
Interim 150,000 231,000

10. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1st April 2022 816,548 2,050,335 5,401
Additions 40,309 241,179 -
At 31st March 2023 856,857 2,291,514 5,401
DEPRECIATION
At 1st April 2022 244,190 1,256,035 5,401
Charge for year 29,689 127,165 -
At 31st March 2023 273,879 1,383,200 5,401
NET BOOK VALUE
At 31st March 2023 582,978 908,314 -
At 31st March 2022 572,358 794,300 -

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1st April 2022 108,195 191,376 3,171,855
Additions - - 281,488
At 31st March 2023 108,195 191,376 3,453,343
DEPRECIATION
At 1st April 2022 95,932 143,754 1,745,312
Charge for year 3,059 7,119 167,032
At 31st March 2023 98,991 150,873 1,912,344
NET BOOK VALUE
At 31st March 2023 9,204 40,503 1,540,999
At 31st March 2022 12,263 47,622 1,426,543

West Scottish Lamb Limited (Registered number: 04450315)

Notes to the Financial Statements - continued
for the Year Ended 31st March 2023

10. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and
machinery
£   
COST
At 1st April 2022
and 31st March 2023 195,399
DEPRECIATION
At 1st April 2022 45,652
Charge for year 22,516
At 31st March 2023 68,168
NET BOOK VALUE
At 31st March 2023 127,231
At 31st March 2022 149,747

11. FIXED ASSET INVESTMENTS
Unlisted
investments
£   
COST
At 1st April 2022
and 31st March 2023 3,870
NET BOOK VALUE
At 31st March 2023 3,870
At 31st March 2022 3,870

12. STOCKS
2023 2022
£    £   
Meat stock 28,763 93,597
Livestock 386,870 527,365
Consumables 18,064 18,064
433,697 639,026

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 4,342,161 3,143,834
Loans 13,608 14,270
Derivative asset 16,728 -
Directors' current accounts 560,000 -
VAT 183,380 137,423
Prepayments 93,495 97,200
5,209,372 3,392,727

Confidential Invoice Financing is provided by arrangement with RBS Invoice Finance Limited. At 31 March 2022 - £3,466,001 (2022 - £2,573,306) of the Trade debtors have been financed in such a manner.

West Scottish Lamb Limited (Registered number: 04450315)

Notes to the Financial Statements - continued
for the Year Ended 31st March 2023

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 16) 43,267 43,267
Trade creditors 3,039,469 2,143,933
Tax 526,662 279,156
Social security and other taxes 75,518 50,183
Net wages 37,260 31,238
Accrued expenses 386,155 295,212
Derivative liability - 770
4,108,331 2,843,759

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 16) 24,631 67,898

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 43,267 43,267
Between one and five years 24,631 67,898
67,898 111,165

Non-cancellable operating leases
2023 2022
£    £   
Within one year 22,415 37,921
Between one and five years 11,112 26,119
33,527 64,040

The company is committed to paying £1,000 per week rent for its premises plus a fixed amount per animal slaughtered. Based on historic levels of throughput this will amount to approximately £100,000 per annum. There is no formal lease agreement in place. However, in practice it has simply paid the headlease direct to Carlisle City Council (currently £35,240 per annum) with additional rent being waived by the directors who possess the leasehold.

17. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Hire purchase contracts 67,898 111,165

The hire purchase creditors are secured against the assets so financed.

18. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 255,424 230,197

West Scottish Lamb Limited (Registered number: 04450315)

Notes to the Financial Statements - continued
for the Year Ended 31st March 2023

18. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1st April 2022 230,197
Charge to Income Statement during year 25,227
Balance at 31st March 2023 255,424

The provision for deferred taxation arises entirely as a result of accelerated capital allowances.

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
40 "A" Ordinary £1 40 40
40 "C" Ordinary £1 40 40
200,000 "E" Ordinary £1 200,000 200,000
200,080 200,080

The "A" Ordinary and "C" Ordinary classes of shares rank pari passu. The "E" Ordinary shares of £1 each have no voting or dividend rights and are redeemable at par.

20. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1st April 2022 5,351,597 100,040 5,451,637
Profit for the year 1,380,150 1,380,150
Dividends (150,000 ) (150,000 )
At 31st March 2023 6,581,747 100,040 6,681,787

21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31st March 2023 and 31st March 2022:

2023 2022
£    £   
D Burton
Balance outstanding at start of year 2,065 2,065
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 2,065 2,065

J F Errington
Balance outstanding at start of year - -
Amounts advanced 560,000 -
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 560,000 -

West Scottish Lamb Limited (Registered number: 04450315)

Notes to the Financial Statements - continued
for the Year Ended 31st March 2023

22. RELATED PARTY DISCLOSURES

During the year under review, the company made purchases totalling £453,274 (2022 - £902,933) from directors. Included in this number is Consultancy services of £100,000 (2022 - £150,000) and Lairage charges of £112,685 (2022 - £126,561).

At 31st March 2023 the sum of £161,298 (2022 - £132,627) was owing to directors as Trade Creditors whilst £14,000 was included in Accruals (2022 - £80,000).