Company registration number SC039565 (Scotland)
TAY AND TORRIDON ESTATES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
TAY AND TORRIDON ESTATES LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
TAY AND TORRIDON ESTATES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
19,578,696
16,405,471
Breeding herd
10
83,174
83,123
Investments
11
65
65
19,661,935
16,488,659
Current assets
Stocks
12
82,730
84,899
Debtors
13
806,171
269,151
Cash at bank and in hand
1,439
888,901
355,489
Creditors: amounts falling due within one year
14
(346,374)
(115,951)
Net current assets
542,527
239,538
Total assets less current liabilities
20,204,462
16,728,197
Provisions for liabilities
(3,139,770)
(2,426,149)
Net assets
17,064,692
14,302,048
Capital and reserves
Called up share capital
274,500
274,500
Revaluation reserve
10,138,961
7,999,399
Profit and loss reserves
6,651,231
6,028,149
Total equity
17,064,692
14,302,048
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 5 September 2023 and are signed on its behalf by:
B W P Kaye
Director
Company Registration No. SC039565
TAY AND TORRIDON ESTATES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
274,500
8,573,564
5,959,992
14,808,056
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
(574,165)
68,157
(506,008)
Balance at 31 March 2022
274,500
7,999,399
6,028,149
14,302,048
Year ended 31 March 2023:
Profit for the year
-
(713,188)
723,082
9,894
Other comprehensive income:
Revaluation of tangible fixed assets
-
2,852,750
-
2,852,750
Total comprehensive income for the year
-
2,139,562
723,082
2,862,644
Dividends
-
-
(100,000)
(100,000)
Balance at 31 March 2023
274,500
10,138,961
6,651,231
17,064,692
TAY AND TORRIDON ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
1
Accounting policies
Company information
Tay and Torridon Estates Limited is a private company limited by shares incorporated in Scotland. The registered office is Tarrylaw, Balbeggie, Perthshire, United Kingdom, PH2 6HJ.
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 freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on a going concern basis as an undertaking has been received from the directors of all group companies that they have no present intention of enforcing payment of the outstanding balances on their loan accounts. In addition, the parent company has confirmed that it will continue to provide financial assistance as is required to allow the company to trade for at least twelve months from the date that the financial statements are signed by the Board.true
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
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.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
Not depreciated
Plant and equipment
10% - 20% reducing balance
Motor vehicles
20% reducing balance
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.
TAY AND TORRIDON ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
Depreciation is provided on leased assets to write off the value less estimated residual value over the lease periods on a reducing balance basis. No provision for depreciation is made for hertiable property. It is the company's policy to maintain its properties in good condition. Costs of repairs and maintenance are charged against revenue in the year in which they are incurred.
Biological assets are held at deemed cost, based on historical purchase prices. None of the herd held in fixed assets are depreciated as they are all deemed to have constant value across their useful lives.
Heritable property is professionally valued with sufficient regularity and stated at fair value at the balance sheet date.
1.5
Fixed asset investments
Unquoted investments are included at cost less any provision for permanent diminution in value.
1.6
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.
1.7
Stocks
Stocks are valued at a conservative market value. It is the opinion of the directors that the net realisable value is not less than this.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
TAY AND TORRIDON ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's 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.
1.10
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.
TAY AND TORRIDON ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
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.
TAY AND TORRIDON ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Farming
301,366
303,002
Wind farm
1,282,104
437,692
Property management and investment
71,723
69,604
1,655,193
810,298
2023
2022
£
£
Other revenue
Interest income
895
-
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Auditor's remuneration - audit fees
7,222
5,040
Auditor's remuneration - other
1,360
3,605
Government grants
(139,494)
(139,014)
Depreciation of owned tangible fixed assets
46,467
40,620
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
7
7
TAY AND TORRIDON ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
6
Directors' remuneration
Three directors received emoluments totalling £45,341 (2022: £47,429) and the company contributed £nil (2022: £nil) to their pensions.
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
1,500
1,395
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
169,524
5,322
Deferred tax
Origination and reversal of timing differences
713,621
591,017
Total tax charge
883,145
596,339
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
893,039
90,331
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
169,677
17,163
Tax effect of expenses that are not deductible in determining taxable profit
1,174
2,146
Group relief
(115,582)
(5,322)
Fixed asset differences
(877)
(5,246)
Payment for group relief claimed
5,322
Remeasurement of deferred tax for changes in tax rates
171,269
582,276
Chargeable gains/(losses)
542,023
2023 claim from Culfargie Estates Ltd
115,582
Other tax adjustment
(121)
Taxation charge for the year
883,145
596,339
TAY AND TORRIDON ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
9
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
16,161,600
345,467
198,798
16,705,865
Additions
315,598
50,533
10,234
376,365
Disposals
(1,063)
(27,000)
(8,550)
(36,613)
Revaluation
2,852,750
2,852,750
At 31 March 2023
19,328,885
369,000
200,482
19,898,367
Depreciation and impairment
At 1 April 2022
197,286
103,108
300,394
Depreciation charged in the year
27,105
19,362
46,467
Eliminated in respect of disposals
(23,124)
(4,066)
(27,190)
At 31 March 2023
201,267
118,404
319,671
Carrying amount
At 31 March 2023
19,328,885
167,733
82,078
19,578,696
At 31 March 2022
16,161,600
148,181
95,690
16,405,471
The company's heritable property was revalued on an open market basis by an independent firm of Chartered Surveyors as at 31 March 2023. There was an increase of £2,852,750 in the value of the property.
The historic cost of the land and buildings is £5,860,932 (2022 - £5,546,397).
The company's heritable property is considered to have a high residual value and a useful economic life in excess of fifty years. It is the directors' policy to maintain the buildings in a continual state of sound repair and accordingly the depreciation charge is considered immaterial and no charge has therefore been made.
An impairment review is carried out on all tangible fixed assets on an annual basis. Such a review has been performed and in the directors' opinion the market value and residual value of all tangible fixed assets is in excess of the carrying value and there is no impairment.
10
Breeding herd
2023
£
Fair value
At 1 April 2022
83,123
Increase in value
51
At 31 March 2023
83,174
Biological assets with a carrying amount of £83,174 were revalued at 31st March 2023 on the basis of a change in the active market transaction price of the breeding herd.
TAY AND TORRIDON ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
11
Fixed asset investments
2023
2022
£
£
Other investments other than loans
65
65
12
Stocks
2023
2022
£
£
Sheep
51,350
42,785
Crops
7,125
8,850
Sundry
24,255
33,264
82,730
84,899
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
182
1,518
Other debtors
207,186
46,003
Prepayments and accrued income
598,803
221,630
806,171
269,151
14
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
46,208
Trade creditors
45,147
36,118
Corporation tax
169,524
5,322
Other creditors
3,856
12,346
Accruals and deferred income
81,639
62,165
346,374
115,951
The company meets its working capital requirements through an overdraft facility which is repayable on demand. The company is currently operating within an overdraft facility of £100,000 which is due for renewal on 1 September 2023. The directors anticipate that the bank overdraft facility will be renewed at a sufficient level to allow the company to meet its short term liabilities for a period of at least twelve months from the date that the financial statements are signed by the Board.
The bank overdraft is secured by a bond and floating charge over all the assets of the company and a cross company guarantee of £450,000 between the company and Culfargie Estates Limited.
TAY AND TORRIDON ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
15
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:
Nick Bennett ACA
Statutory Auditor:
Azets Audit Services
16
Capital commitments
The company had capital commitments for property improvement of £nil (2022: £340,014).
17
Parent company
The immediate and ultimate parent undertaking is Iowa Land Company Limited, a company incorporated in England. At the year end, and throughout the year, Iowa Land Company Limited owned all the share capital of the company. Group accounts for Iowa Land Company Limited are available to the public on payment of the appropriate fee, from Companies Registration Office, Companies House, Crown Way, Cardiff, CF14 3UZ.
The company has taken advantage of the exemption under FRS 102 Section 33 from the requirement to disclose information of the transaction with the entities that are part of the group on the basis that consolidated group financial statements are publically available. true
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