Company Registration No. SC314612 (Scotland)
CLAONAIG ESTATE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
CLAONAIG ESTATE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
CLAONAIG ESTATE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
12,394,115
8,343,207
Current assets
Stocks
35,000
30,000
Debtors
5
27,908
37,539
Cash at bank and in hand
101,366
297,251
164,274
364,790
Creditors: amounts falling due within one year
6
(65,315)
(227,536)
Net current assets
98,959
137,254
Total assets less current liabilities
12,493,074
8,480,461
Provisions for liabilities
(615,590)
Net assets
11,877,484
8,480,461
Capital and reserves
Called up share capital
4,700,001
4,700,001
Revaluation reserve
7
6,470,143
1,982,845
Equity reserve
8
2,799,182
2,222,979
Profit and loss reserves
9
(2,091,842)
(425,364)
Total equity
11,877,484
8,480,461
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 4 October 2023 and are signed on its behalf by:
Mr Stewart Marshall
Director
Company Registration No. SC314612
CLAONAIG ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
1
Accounting policies
Company information
Claonaig Estate Limited 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 amounts 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 Land and Buildings, Plant and Machinery and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
At 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. true
The directors have reviewed forecasts and accept that, in the short-term, continued operational losses will occur and that these, along with projected capital spending, will require to be fully funded by the parent company.
The directors continue to look for additional funding opportunities to assist with cash flow but have committed to supporting the company and confirm the parent company’s ability to do this.
Note 10 – Equity Reserve shows the support given to date and this figure will continue to rise in the short-term.
The directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for the sale of livestock and associated farm activities and providing services (including shooting) provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue from the sale of livestock and other farm activity is recognised when the significant risks and rewards of ownership of livestock and other goods have passed to the buyer (usually on sale of livestock), 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.
Revenue from contracts for the provision of shoots is recognised when times and dates have been agreed with customers.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
CLAONAIG ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 3 -
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:
Land
Not depreciated
Plant and machinery
20% reducing balance
Deer fencing
25% reducing balance
Shooting equipment
Not depreciated
Motor vehicles
20% reducing balance
Freehold land and assets in the course of construction are not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.6
Stocks
Stocks 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 stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and 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 stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
CLAONAIG ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
1.7
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The 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 balance sheet 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 debtors 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 creditors, 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
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 profit and loss account 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.
CLAONAIG ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
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 profit and loss account, 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.
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
Employees
2022
2021
Number
Number
Total
4
4
CLAONAIG ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 January 2022
8,173,670
386,291
8,559,961
Additions
381,112
57,914
439,026
Disposals
(90,000)
(90,000)
Revaluation
3,749,389
3,749,389
At 31 December 2022
12,214,171
444,205
12,658,376
Depreciation and impairment
At 1 January 2022
13,730
203,024
216,754
Depreciation charged in the year
5,492
42,015
47,507
At 31 December 2022
19,222
245,039
264,261
Carrying amount
At 31 December 2022
12,194,949
199,166
12,394,115
At 31 December 2021
8,159,940
183,267
8,343,207
At the balance sheet date, the value of property under construction totalled £667,307 (2021: £1,126,805) based on a valuation of £600,000 undertaken by Matthew Havers MRICS FAAV of Strutt & Parker, independent valuers not connected with the company on the basis of market value as at 6 November 2022, plus costs of fixtures and fittings of £67,307..
Forest and other Land with a carrying amount of £4,166,293 were revalued at 14 December 2022 by Scottish Woodlands, 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 property and land.
Buildings and plots with a carrying amount of £881,035 were revalued at 6 November 2022 by Matthew Havers MRICS FAAV, of Strutt & Parker, 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 property.
In 2022 11 properties had their carrying value increased by £270,000 and one property had its carrying value decreased by £20,000. The net revaluation of £250,000 is reflected in the above revaluation to reflect their open market value as at 31 December 2022.
The revaluation deficit/(surplus) is disclosed in note 7.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
CLAONAIG ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
4
Tangible fixed assets
(Continued)
- 7 -
Land & Buildings
2022
2021
£
£
Cost
6,201,586
6,376,868
Additions
368,410
-
Disposals
-
(175,282)
Accumulated depreciation
(19,222)
(13,730)
Carrying value
6,550,774
6,187,856
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
8,795
14,167
Other debtors
19,113
23,372
27,908
37,539
Included in Trade receivables is an amount of £4,090 (2021: £Nil) in relation to payment for land rental and stock purchases by a company controlled by one of the company directors.
6
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
2,842
67,656
Amounts owed to group undertakings
141,203
Other creditors
62,473
18,677
65,315
227,536
Included within Trade Payables is a credit on account of £500 (2021: credit on account of £352) in relation to a deposit paid that was later refunded. This was in connection to a company controlled by one of the company directors.
7
Revaluation reserve
2022
2021
£
£
At the beginning of the year
1,982,845
2,327,563
Revaluation surplus /(deficit) arising in the year
4,487,298
(344,718)
At the end of the year
6,470,143
1,982,845
CLAONAIG ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
8
Equity reserve
2022
2021
£
£
At the beginning of the year
2,222,979
1,824,702
Arising in the year
576,203
398,277
At the end of the year
2,799,182
2,222,979
The amount of £576,203 (2021 - £398,277) represents a reclassification of loans made during the year by the parent company as a capital contribution.
9
Profit and loss reserves
2022
2021
£
£
At the beginning of the year
(425,364)
(614,794)
(Loss)/profit for the year
(1,666,478)
189,430
At the end of the year
(2,091,842)
(425,364)
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Neil Reid FCCA
Statutory Auditor:
William Duncan + Co (Audit) Ltd
11
Directors' transactions
Dividends totalling £0 (2021 - £0) were paid in the year in respect of shares held by the company's directors.
12
Parent company
The Parent (and ultimate controlling party) of the company is Bagger-Sorensen & Co. A/S, a company registered in Denmark at Tabletvej 1, DK-7100 Vejle, Denmark. It's principal place of business was also at this address.