Company Registration No. SC110587 (Scotland)
Strathern Limited
unaudited financial statements
for the period ended 31 March 2023
Pages for filing with Registrar
Strathern Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
Strathern Limited
Balance sheet
as at 31 March 2023
31 March 2023
- 1 -
2023
2021
Notes
£
£
£
£
Fixed assets
Investments
4
1,539,302
1,948,677
Current assets
Debtors
5
32,638
58,075
Cash at bank and in hand
330,300
295,898
362,938
353,973
Creditors: amounts falling due within one year
6
(4,807)
(15,586)
Net current assets
358,131
338,387
Total assets less current liabilities
1,897,433
2,287,064
Provisions for liabilities
(206,267)
(229,423)
Net assets
1,691,166
2,057,641
Capital and reserves
Called up share capital
7
100
100
Share premium account
8
474,220
474,220
Other reserves
656,336
978,066
Profit and loss reserves
10
560,510
605,255
Total equity
1,691,166
2,057,641
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial period ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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.
The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Strathern Limited
Balance sheet (continued)
as at 31 March 2023
31 March 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 8 November 2023 and are signed on its behalf by:
Mr J CS Kelman
Director
Company Registration No. SC110587
Strathern Limited
Notes to the financial statements
for the period ended 31 March 2023
- 3 -
1
Accounting policies
Company information
Strathern Limited is a private company limited by shares incorporated in Scotland. The registered office is 6 Longnewton Cottages, By Haddington, East Lothian, EH41 4JW.
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 on the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Reporting period
The accounting period has been extended to a fifteen month period and not directly comparable to the previous accounting period.
1.3
Tangible fixed assets
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.
1.4
Fixed asset investments
Interests in listed investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Transaction costs are expensed to profit or loss as incurred. Changes in fair value are recognised in other comprehensive income except to the extent that a gain reverses a loss previously recognised in profit or loss, or a loss exceeds the accumulated gains recognised in equity; such gains and loss are recognised in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
Strathern Limited
Notes to the financial statements (continued)
for the period ended 31 March 2023
1
Accounting policies (continued)
- 4 -
1.6
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.
Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
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.
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.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Strathern Limited
Notes to the financial statements (continued)
for the period ended 31 March 2023
1
Accounting policies (continued)
- 5 -
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.
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
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
2021
Number
Number
Total
2
2
3
Amounts written off investments
2023
2021
£
£
Fair value (losses)/gains
Change in value of financial assets held at fair value through profit or loss
(349,067)
156,894
4
Fixed asset investments
2023
2021
£
£
Other investments other than loans
1,539,302
1,948,677
Fixed asset investments revalued
Listed investments included above:
Strathern Limited
Notes to the financial statements (continued)
for the period ended 31 March 2023
4
Fixed asset investments (continued)
- 6 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 January 2022
1,948,677
Additions
49,236
Valuation changes
(357,492)
Disposals
(101,119)
At 31 March 2023
1,539,302
Carrying amount
At 31 March 2023
1,539,302
At 31 December 2021
1,948,677
5
Debtors
2023
2021
Amounts falling due within one year:
£
£
Corporation tax recoverable
15
Other debtors
32,623
58,075
32,638
58,075
6
Creditors: amounts falling due within one year
2023
2021
£
£
Corporation tax
11,203
Other creditors
4,807
4,383
4,807
15,586
7
Called up share capital
2023
2021
£
£
Ordinary share capital
Issued and fully paid
100 ordinary shares of £1 each
100
100
Each ordinary share carries one vote and is entitled to participate pari passu with other ordinary shares in any dividend or capital distribution.
Strathern Limited
Notes to the financial statements (continued)
for the period ended 31 March 2023
- 7 -
8
Share premium account
Share premium represents the excess paid over the par value of share on issue.
9
Non-distributable reserve
Non-distributable reserves represent the revaluation of investments less associated deferred tax liabilities and are not distributable to shareholders.
10
Profit and loss reserves
Profit and loss reserves include all current and prior years retained profit and losses.
11
Directors' transactions
During the year dividends were paid to PM Kelman of £29,988 (2021 - £nil) and to J Kelman of £10,404 (2021 - £nil).
12
Ultimate controlling party
The ultimate controlling party is Mrs PM Kelman.