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REGISTRAR OF COMPANIES

Registration number: SC315792

East Scales Limited

Unaudited Financial Statements

28 February 2023

image-name

 

East Scales Limited

Contents

Accountants' Report

1

Balance Sheet

2

Notes to the Financial Statements

4

 

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
East Scales Limited
for the Year Ended 28 February 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of East Scales Limited for the year ended 28 February 2023 as set out on pages 2 to 12 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of East Scales Limited, as a body, in accordance with the terms of our engagement letter dated 14 July 2023. Our work has been undertaken solely to prepare for your approval the accounts of East Scales Limited and state those matters that we have agreed to state to the Board of Directors of East Scales Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than East Scales Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that East Scales Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of East Scales Limited. You consider that East Scales Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of East Scales Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.



Dodd & Co Limited
Chartered Accountants
FIFTEEN Rosehill
Montgomery Way
Rosehill Estate
CARLISLE
CA1 2RW

31 October 2023

 

East Scales Limited

(Registration number: SC315792)
Balance Sheet as at 28 February 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

1,406,264

1,318,783

Other financial assets

6

216,168

195,337

 

1,622,432

1,514,120

Current assets

 

Stocks

738,138

661,928

Debtors

7

189,253

150,417

Cash at bank and in hand

 

653,369

401,636

 

1,580,760

1,213,981

Creditors: Amounts falling due within one year

8

(822,180)

(702,786)

Net current assets

 

758,580

511,195

Total assets less current liabilities

 

2,381,012

2,025,315

Creditors: Amounts falling due after more than one year

8

(640,534)

(750,226)

Provisions for liabilities

(231,481)

(201,839)

Net assets

 

1,508,997

1,073,250

Capital and reserves

 

Allotted, called up and fully paid share capital

202

202

Profit and loss account

1,508,795

1,073,048

Total equity

 

1,508,997

1,073,250

 

East Scales Limited

(Registration number: SC315792)
Balance Sheet as at 28 February 2023 (continued)

For the financial year ending 28 February 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 accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 31 October 2023 and signed on its behalf by:
 

.........................................

P D Graves

Director

 

East Scales Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

1

General information

The company is a private company limited by share capital, incorporated in Scotland.

The address of its registered office is:
East Scales Farm
Rigg
GRETNA
DG16 5JL

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Government grants

Government grants such as the basic payment scheme are included in the profit and loss account when all the necessary conditions for receipt have been met.

Basic payment scheme

The amount paid in connection with the purchase of the basic payment scheme entitlement was amortised over the useful economic life of that entitlement, and has now been fully amortised.

 

East Scales Limited

Notes to the Financial Statements for the Year Ended 28 February 2023 (continued)

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

10% reducing balance basis

Plant and equipment

10% reducing balance basis

Motor vehicles

25% reducing balance basis

Office equipment

3 year straight line basis

Land and buildings relate to tenants improvements on land leased by the company from the shareholders. As long as the intention is for the farming operation to continue, it is deemed a true and fair view to depreciate the assets at 10% reducing balance over their useful economic life, and not the duration of the lease.

Intangible assets

Other intangible assets represent an investment in AMCo Common Consolidation which is a contractual requirement in order to benefit from the AMCo milk purchasing agreement. This investment is non refundable and is therefore being amortised over its useful economic life to the business. As there is no fixed period for the contract, the directors have considered it appropriate to adopt an amortisation period of 5 years for the asset on a straight line basis. It has now been fully amortised.

 

East Scales Limited

Notes to the Financial Statements for the Year Ended 28 February 2023 (continued)

AMCo investments

Fixed asset investments represent an investment in AMCo Individual Consolidation which is a contractual requirement in order to benefit from the AMCo milk purchasing agreement. This investment is refundable and is stated at historical cost less provision for any diminution in value.

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 goods or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Trading stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. The cost of livestock is determined on an individual basis, and represents the purchase cost plus any additional costs of rearing the animal. Net realisable value is based on selling price less anticipated selling costs.

Herd stock is included in the balance sheet at the original cost of the herd adjusted annually for additions or disposals from the herd.

Additions to the herd are included at cost except where there is a reinstatement of disposals in the prior year. In this case they are reinstated at the prior year disposal value.

Disposals to the herd are disposed of at an average cost except where there have been additions to the herd in the prior year. In this case they are disposed on a last in first out basis.

Trade creditors

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

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method where due after more than one year.

 

East Scales Limited

Notes to the Financial Statements for the Year Ended 28 February 2023 (continued)

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 transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the 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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
Equity shares and debt securities
 Recognition and measurement
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

 Impairment
For instruments measured at cost less impairment the impairment is the difference between the assets' carrying amount and the best estimate the entity would receive for the asset if it were sold at the reporting date.


Other grants
Other grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets on a basis consistent with the depreciation policy.

 

East Scales Limited

Notes to the Financial Statements for the Year Ended 28 February 2023 (continued)

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 7 (2022 - 8).

 

East Scales Limited

Notes to the Financial Statements for the Year Ended 28 February 2023 (continued)

4

Intangible assets

Basic payment scheme
 £

Other intangible assets
 £

Total
£

Cost or valuation

At 1 March 2022

40,000

76,382

116,382

At 28 February 2023

40,000

76,382

116,382

Amortisation

At 1 March 2022

40,000

76,382

116,382

At 28 February 2023

40,000

76,382

116,382

Carrying amount

At 28 February 2023

-

-

-

5

Tangible assets

Land and buildings
£

Plant and equipment
 £

Motor vehicles
 £

Office equipment
 £

Total
£

Cost or valuation

At 1 March 2022

815,412

1,663,353

14,445

1,775

2,494,985

Additions

-

235,901

-

-

235,901

Disposals

-

(13,250)

-

-

(13,250)

At 28 February 2023

815,412

1,886,004

14,445

1,775

2,717,636

Depreciation

At 1 March 2022

312,469

855,980

5,978

1,775

1,176,202

Charge for the year

50,296

91,245

2,117

-

143,658

Eliminated on disposal

-

(8,488)

-

-

(8,488)

At 28 February 2023

362,765

938,737

8,095

1,775

1,311,372

Carrying amount

At 28 February 2023

452,647

947,267

6,350

-

1,406,264

At 28 February 2022

502,943

807,373

8,467

-

1,318,783

 

East Scales Limited

Notes to the Financial Statements for the Year Ended 28 February 2023 (continued)

6

Other financial assets (current and non-current)

2023
£

2022
£

Non-current financial assets

Financial assets at cost less impairment

216,168

195,337

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

At 1 March 2022

195,337

195,337

Additions

20,831

20,831

At 28 February 2023

216,168

216,168

Carrying amount

At 28 February 2023

216,168

216,168

At 28 February 2022

195,337

195,337

7

Debtors

2023
£

2022
£

Trade debtors

168,358

126,920

Other debtors

20,895

23,497

189,253

150,417

 

East Scales Limited

Notes to the Financial Statements for the Year Ended 28 February 2023 (continued)

8

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

434,893

366,952

Trade creditors

 

237,032

211,728

Taxation and social security

 

3,068

2,754

Corporation tax liability

 

104,521

82,777

Other creditors

 

42,666

38,575

 

822,180

702,786

Due after one year

 

Loans and borrowings

9

573,446

695,293

Other creditors

 

67,088

54,933

 

640,534

750,226

2023
£

2022
£

After more than five years by instalments

415,433

527,075

415,433

527,075

 

East Scales Limited

Notes to the Financial Statements for the Year Ended 28 February 2023 (continued)

9

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

33,543

30,779

Finance lease liabilities

21,818

27,373

Other borrowings

379,532

308,800

434,893

366,952

Current loans and borrowings includes the following liabilities, on which security has been given by the company:

2023
£

2022
£

Bank borrowings

33,543

30,779

Finance lease liabilities

21,818

27,373

55,361

58,152

Bank borrowings are secured by a floating charge over all property or undertaking of the company. Finance lease liabilities are secured on the assets to which they relate.

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

558,234

658,263

Finance lease liabilities

15,212

37,030

573,446

695,293

Non-current loans and borrowings includes the following liabilities, on which security has been given by the company:

2023
£

2022
£

Bank borrowings

558,234

658,263

Finance lease liabilities

15,212

37,030

573,446

695,293

Bank borrowings are secured by a floating charge over all property or undertaking of the company. Finance lease liabilities are secured on the assets to which they relate.