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COMPANY REGISTRATION NUMBER: SC375740
Inverness Kart Raceway Ltd
Filleted Financial Statements
31 December 2022
Inverness Kart Raceway Ltd
Statement of Financial Position
31 December 2022
2022
2021
Note
£
£
£
Fixed assets
Tangible assets
5
895,929
889,234
Current assets
Stocks
8,373
6,317
Debtors
6
44,250
33,884
Cash at bank and in hand
134,886
317,852
---------
---------
187,509
358,053
Creditors: amounts falling due within one year
7
( 187,902)
( 200,477)
---------
---------
Net current (liabilities)/assets
( 393)
157,576
---------
------------
Total assets less current liabilities
895,536
1,046,810
Creditors: amounts falling due after more than one year
8
( 820,488)
( 888,090)
Provisions
Taxation including deferred tax
( 16,861)
---------
------------
Net assets
58,187
158,720
---------
------------
Capital and reserves
Called up share capital
100
100
Profit and loss account
58,087
158,620
--------
---------
Shareholder funds
58,187
158,720
--------
---------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the income statement has not been delivered.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
Inverness Kart Raceway Ltd
Statement of Financial Position (continued)
31 December 2022
These financial statements were approved by the board of directors and authorised for issue on 25 October 2023 , and are signed on behalf of the board by:
Mr C Henderson
Director
Company registration number: SC375740
Inverness Kart Raceway Ltd
Notes to the Financial Statements
Year ended 31 December 2022
1. General information
The company is a private company limited by shares, registered in Scotland. The address of the registered office is Forbes House, 36 Huntly Street, Inverness, IV3 5PR, United Kingdom. The address of the principal place of business is Fairways Business Park, Sir Walter Scott Drive, Inverness, IV2 6AA, United Kingdom.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
Whilst there is uncertainty and risk arising from Covid-19 the directors feel that the impact to the business is limited to the short term and does not pose a significant material threat to the business. Since the year end trading levels have increased and returned to a pre-Covid level therefore the directors consider it appropriate to continue to adopt the going concern basis of accounting.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Leasehold property
-
over the lease term
Plant and machinery
-
10% - 20% straight line
Fixtures and fittings
-
10% straight line
Motor vehicles
-
25% straight line
Equipment
-
25% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments, which includes debtors, bank and cash balances and creditors are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 20 (2021: 17 ).
5. Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Equipment
Total
£
£
£
£
£
£
Cost
At 1 Jan 2022
972,723
123,582
37,458
1,001
18,544
1,153,308
Additions
9,340
42,930
1,579
557
54,406
---------
---------
--------
-------
--------
------------
At 31 Dec 2022
982,063
166,512
39,037
1,001
19,101
1,207,714
---------
---------
--------
-------
--------
------------
Depreciation
At 1 Jan 2022
149,697
79,805
19,724
656
14,192
264,074
Charge for the year
25,461
16,324
3,835
251
1,840
47,711
---------
---------
--------
-------
--------
------------
At 31 Dec 2022
175,158
96,129
23,559
907
16,032
311,785
---------
---------
--------
-------
--------
------------
Carrying amount
At 31 Dec 2022
806,905
70,383
15,478
94
3,069
895,929
---------
---------
--------
-------
--------
------------
At 31 Dec 2021
823,026
43,777
17,734
345
4,352
889,234
---------
---------
--------
-------
--------
------------
6. Debtors
2022
2021
£
£
Amounts owed by group undertakings and undertakings in which the company has a participating interest
3,124
3,124
Other debtors
41,126
30,760
--------
--------
44,250
33,884
--------
--------
7. Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
33,338
33,001
Trade creditors
10,935
18,718
Amounts owed to group undertakings and undertakings in which the company has a participating interest
25,253
26,768
Corporation tax
2,395
4,876
Social security and other taxes
22,375
11,860
Other creditors
93,606
105,254
---------
---------
187,902
200,477
---------
---------
The bank loans amounting to £23,444 (2021 - £23,362) are secured by a first and floating charge over the property or undertaking of the company.
8. Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
144,107
175,708
Amounts owed to group undertakings and undertakings in which the company has a participating interest
246,899
268,741
Other creditors
429,482
443,641
---------
---------
820,488
888,090
---------
---------
The bank loans amounting to £119,144 (2021 - £140,851) are secured by a first and floating charge over the property or undertaking of the company.
Included within creditors: amounts falling due after more than one year is an amount of £189,090 (2021: £210,713) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
The bank loan falling due after more than five years is repayable by instalments at a variable rate of interest of 2.75% over the Bank of England base rate.
The amounts due to group undertakings falling due after more than five years are repayable by instalments at a fixed rate of interest of 2.5%.
9. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2022
2021
£
£
Not later than 1 year
20,000
20,000
Later than 1 year and not later than 5 years
80,000
80,000
Later than 5 years
535,001
555,001
---------
---------
635,001
655,001
---------
---------
10. Events after the end of the reporting period
After the year end profits of £18,000 (2021 - £130,000) were donated to the parent company, which is a charity. The balance was paid within 9 months of the year end, therefore the profits on which corporation tax was due were reduced to allow for this payment.
11. Summary audit opinion
The auditor's report for the year dated 25 October 2023 was unqualified .
The senior statutory auditor was Daniel Palombo M.A., C.A. , for and on behalf of Ritsons .
12. Related party transactions
During the year the company made sales of £185 (2021 - £nil) to one (2021 - no) director . The company has taken advantage of the FRS 102 1AC.35 exemption available to those subsidiaries that are 100% owned. Accordingly, disclosure is not made of any related party transactions with the company's parent company.
13. Controlling party
The company is a 100% subsidiary of Day 1 Ltd , a charitable company registered in Scotland with the registration number SC291616 and registered office at 47 Island Bank Road, Inverness, United Kingdom, IV2 4QT .