1 April 2022 v2023.23.2 limited_company_frs_102_section_1a_v1_1_0 companies_houseSoftwarefalsetruetruetrueNo description of principal activitytruexbrli:purexbrli:sharesiso4217:GBPSC4699732022-04-012023-03-31SC4699732023-03-31SC4699732022-03-31SC469973core:WithinOneYear2023-03-31SC469973core:WithinOneYear2022-03-31SC469973core:AfterOneYear2023-03-31SC469973core:AfterOneYear2022-03-31SC469973core:ShareCapital2023-03-31SC469973core:ShareCapital2022-03-31SC469973core:RetainedEarningsAccumulatedLosses2023-03-31SC469973core:RetainedEarningsAccumulatedLosses2022-03-31SC469973bus:Director12022-04-012023-03-31SC469973bus:RegisteredOffice2022-04-012023-03-31SC469973core:OtherResidualIntangibleAssets2022-04-012023-03-31SC469973core:PlantMachinery2022-04-012023-03-31SC469973core:OfficeEquipment2022-04-012023-03-31SC469973core:MotorVehicles2022-04-012023-03-31SC469973core:FurnitureFittings2022-04-012023-03-31SC4699732021-04-012022-03-31SC469973core:IntangibleAssetsOtherThanGoodwill2023-03-31SC469973core:IntangibleAssetsOtherThanGoodwill2022-04-01SC469973core:IntangibleAssetsOtherThanGoodwill2022-04-012023-03-31SC469973core:IntangibleAssetsOtherThanGoodwill2022-03-31SC469973core:LandBuildings2022-04-01SC469973core:PlantMachinery2022-04-01SC4699732022-04-01SC469973core:LandBuildings2023-03-31SC469973core:PlantMachinery2023-03-31SC469973core:LandBuildings2022-03-31SC469973core:PlantMachinery2022-03-31SC46997312022-04-012023-03-31SC469973countries:Scotland2022-04-012023-03-31SC469973bus:AuditExemptWithAccountantsReport2022-04-012023-03-31SC469973bus:PrivateLimitedCompanyLtd2022-04-012023-03-31SC469973bus:SmallEntities2022-04-012023-03-31SC469973bus:FullAccounts2022-04-012023-03-31
Company registration number:
SC469973
Two Skies Ltd
Unaudited Filleted Financial Statements for the year ended
31 March 2023
Smartworks Chartered Accountants
9 Green Wood, KINROSS, KY13 8FG, United Kingdom
Two Skies Ltd
Report to the board of directors on the preparation of the unaudited statutory financial statements of Two Skies Ltd
Year ended
31 March 2023
In order to assist you to fulfil your duties under the Companies Act 2006, I have prepared for your approval the
financial statements
of
Two Skies Ltd
for the year ended
31 March 2023
which comprise the income statement, statement of financial position and related notes from the company’s accounting records and from information and explanations you have given me.
As a practising member of the ICAS, I am subject to its ethical and other professional requirements which are detailed at http://www.icas.com/​accountspreparationguidance.
This report is made solely to the Board of Directors of
Two Skies Ltd
, as a body, in accordance with the terms of my engagement letter dated 11 February 2021. My work has been undertaken solely to prepare for your approval the
financial statements
of
Two Skies Ltd
and state those matters that I have agreed to state to the Board of Directors of
Two Skies Ltd
, as a body, in this report in accordance with the requirements of the ICAS as detailed at http://www.icas.com/​accountspreparationguidance. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than
Two Skies Ltd
and its Board of Directors, as a body, for my work or for this report.
It is your duty to ensure that
Two Skies Ltd
has kept adequate accounting records and to prepare statutory
financial statements
that give a true and fair view of the assets, liabilities, financial position and profit of
Two Skies Ltd
. You consider that
Two Skies Ltd
is exempt from the statutory audit requirement for the year.
I have not been instructed to carry out an audit or a review of the financial statements of Two Skies Ltd. For this reason, I have not verified the accuracy or completeness of the accounting records or information and explanations you have given to me and I do not, therefore, express any opinion on the statutory financial statements.
Smartworks Chartered Accountants
9 Green Wood
KINROSS
KY13 8FG
United Kingdom
Date:
26 October 2023
Two Skies Ltd
Statement of Financial Position
31 March 2023
20232022
Note££
Fixed assets    
Intangible assets 5
4,560
 
4,940
 
Tangible assets 6
914,656
 
886,026
 
919,216
 
890,966
 
Current assets    
Stocks
172,508
 
188,022
 
Debtors 7
54,075
 
48,440
 
Cash at bank and in hand
99,336
 
115,704
 
325,919
 
352,166
 
Creditors: amounts falling due within one year 8
(239,727
)
(233,496
)
Net current assets
86,192
 
118,670
 
Total assets less current liabilities 1,005,408   1,009,636  
Creditors: amounts falling due after more than one year 9
(613,574
)
(660,798
)
Provisions for liabilities
(5,804
) -  
Net assets
386,030
 
348,838
 
Capital and reserves    
Called up share capital
100
 
100
 
Profit and loss account
385,930
 
348,738
 
Shareholders funds
386,030
 
348,838
 
For the year ending
31 March 2023
, the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
  • The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
  • The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These
financial statements
have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies’ regime.
In accordance with Section 444 of the Companies Act 2006, the income statement has not been delivered.
These
financial statements
were approved by the board of directors and authorised for issue on
26 October 2023
, and are signed on behalf of the board by:
D Mcintosh
Director
Company registration number:
SC469973
Two Skies Ltd
Notes to the Financial Statements
Year ended
31 March 2023

1 General information

The company is a private company limited by shares and is registered in Scotland. The address of the registered office is
Craigencalt Farm
,
Kinghorn
,
Burntisland
,
Fife
,
KY3 9YG
, .

2 Statement of compliance

These
financial statements
have been prepared in compliance with FRS 102 Section 1A, 'The Financial Reporting Standard applicable to the UK and 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 assets.
The
financial statements
are prepared in sterling, which is the functional currency of the company.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied, 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.

Current tax

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.

Intangible assets

Intangible assets are initially measured at cost and are subsequently measured at cost less any accumulated amortisation and accumulated impairment losses or at a revalued amount. However, Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Any intangible assets carried at a revalued amount are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation 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 capital and reserves. However, the increase is recognised in profit or loss to the extent that 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 capital and reserves. If a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess is recognised in profit or loss.
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Other intangible assets
5% straight line

Tangible assets

Tangible assets are initially measured at cost, and are subsequently measured at cost less any accumulated depreciation and accumulated impairment losses or at a revalued amount.
Any tangible assets carried at a revalued amount 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 capital and reserves. However, the increase is recognised in profit or loss to the extent that 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 capital and reserves. If a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess is recognised in profit or loss.
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Plant and machinery
25% straight line
Office equipment
25% straight line
Motor vehicles
25% straight line
Fixtures and fittings
25% straight line

Impairment

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.

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 stocks to their present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

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 entity 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 entity 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.

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.
Basic financial instruments are initially recognised at the transaction price and are subsequently measured as follows: Debt instruments are subsequently measured at amortised cost and commitments to receive a loan and to make a loan to another entity are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment.
All other financial instruments, including derivatives, are initially recognised at fair value, which is normally the transaction price and are subsequently measured at fair value, with any changes recognised in profit or loss.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.
All equity instruments regardless of significance, and other financial assets that are individually significant, are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics.
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is more likely than not that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured on an undiscounted basis at the tax rates that would apply in the periods in which timing differences are expected to reverse, based on tax rates and laws enacted at the statement of financial position date.

Provisions for liabilities

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 in finance costs in profit or loss in the period it arises.

Defined contribution pension plan

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.

4 Average number of employees

The average number of persons employed by the company during the year was
10
(2022:
10.00
).

5 Intangible assets

Other intangible assets
£
Cost  
At
1 April 2022
and
31 March 2023
7,600
 
Amortisation  
At
1 April 2022
2,660
 
Charge
380
 
At
31 March 2023
3,040
 
Carrying amount  
At
31 March 2023
4,560
 
At 31 March 2022
4,940
 
The capital element of the lease premium paid on entry to a retail unit has been treated as an intangible asset and is being amortised, on a straight line basis, over the twenty year lease period.

6 Tangible assets

Land and buildingsPlant and machinery etc.Total
£££
Cost      
At
1 April 2022
863,735
 
78,739
 
942,474
 
Additions -  
57,159
 
57,159
 
Disposals -  
(25,690
)
(25,690
)
At
31 March 2023
863,735
 
110,208
 
973,943
 
Depreciation      
At
1 April 2022
-  
56,448
 
56,448
 
Charge -  
14,078
 
14,078
 
Disposals -  
(11,239
)
(11,239
)
At
31 March 2023
-  
59,287
 
59,287
 
Carrying amount      
At
31 March 2023
863,735
 
50,921
 
914,656
 
At 31 March 2022
863,735
 
22,291
 
886,026
 
Carrying values included above held under finance leases and hire purchase contracts: Motor Vehicles £29,873 (2022: £11,239)

7 Debtors

20232022
££
Trade debtors
5,962
 
11,901
 
Other debtors
48,113
 
36,539
 
54,075
 
48,440
 

8 Creditors: amounts falling due within one year

20232022
££
Bank loans and overdrafts
55,095
 
56,129
 
Trade creditors
38,820
 
23,751
 
Taxation and social security
11,524
 
18,072
 
Other creditors
134,288
 
135,544
 
239,727
 
233,496
 
The loans are secured by a floating charge over the heritable land and property owned by the company. The finance leases included in other creditors are secured on the assets concerned. Included in other creditors is a non bank loan secured by a fixed charge on a specific area of land.

9 Creditors: amounts falling due after more than one year

20232022
££
Bank loans and overdrafts
411,464
 
452,241
 
Other creditors
202,110
 
208,557
 
613,574
 
660,798
 
The loans are secured by a floating charge over the heritable land and property owned by the company. The finance leases included in other creditors are secured on the assets concerned.
Creditors of more than five years total £246,083 (2022: £261,474)

10 Guarantees and other financial commitments

At 31st March 2023, the company had total commitments under non-cancellable operating leases over the remaining life of those leases of £36,000 (2022 - £54,000).
The company operated a defined contribution pension scheme, for the directors and employees. At the statement of financial position date, unpaid contributions of £1,089 (2022 - £953) were due to the fund. They are included in other creditors.

11 Directors' advances, credit and guarantees

At the year end £100,643 (2022:£92,823) was due to be paid to the directors within one year. Interest on £47,500 was charged at 1.50% by Dory McIntosh. An additional £180,000 (2022: £180,000) was loaned by the director Adam McIntosh and treated as repayable after more than one year. Interest on this loan was charged at 1%. There were no fixed terms for repayment on any of the directors' loans.

12 Controlling party

The company was controlled by Adam McIntosh, a director.