THORNTOUN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Company Registration No. SC129587 (Scotland)
THORNTOUN LIMITED
COMPANY INFORMATION
Directors
Mr Richard Johnstone
Mr William Johnstone
Mrs Agnes Johnstone
Secretary
Mr David Brown
Company number
SC129587
Registered office
Thorntoun Estate
Crosshouse
Kilmarnock
Ayrshire
KA2 0BH
Auditor
William Duncan + Co (Audit) Ltd
Ellersley House
30 Miller Road
Ayr
Ayrshire
KA7 2AY
Business address
Thorntoun Estate
Crosshouse
Kilmarnock
Ayrshire
KA2 0BH
Bankers
Bank of Scotland
123 High Street
Ayr
Ayrshire
KA7 1QP
Solicitors
Morton Fraser Solicitors
1 West Regent Street
Glasgow
G2 1RW
THORNTOUN LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 19
THORNTOUN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

Review of the business

The directors continue to monitor and control the key performance indicators of occupancy, average rate per bed, and wages costs.

 

During this year the company has reverted back to the pre covid trading model that has resulted in a period of adjustment with covid support grants having been removed. After the immediate effect on occupancy, it has taken some time to rectify and build this back up. In addition to this, covid still affected the company within staffing and agency costs.

 

In a challenging year for all care homes, the results for the year and the financial position at the year end were considered satisfactory by the directors. The company is in a strong financial position and the directors expect the business to continue to trade successfully and are ready to react to and update plans as necessary.

 

Principal risks and uncertainties

As a provider of care and respite to the elderly and disabled, the company continues to maintain a focus on high standards and is always trying to ensure that the services provided are relevant to the changes in needs of the community.

 

The company maintains a well established process for identifying and managing business risks. For each risk identified, the directors ensure that controls are in place to either prevent the risk or to mitigate the effect of the risk.

 

With respect to clinical risk, the company is dedicated to ensuring that its residents are treated and cared for with the highest clinical standards. The company is aware that there were specific risks associated with the pandemic, such as maintaining adequate staffing and protecting residents, and the company had plans in place to deal with the impact of such an emergency.

 

With regard to funding risk, the company supports its operations from internally generated profits.

Key performance indicators

The directors are committed to maintaining key financial ratios to ensure that there is appropriate financial headroom.

On behalf of the board

Mr Richard Johnstone
Director
1 November 2023
THORNTOUN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activities of the company in the year under review were that of a registered nursing home providing accommodation and care for the elderly, together with accommodation providing both respite care and long stay care for adults with learning difficulties.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £300,000. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr Richard Johnstone
Mr William Johnstone
Mrs Agnes Johnstone
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr Richard Johnstone
Director
1 November 2023
THORNTOUN LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THORNTOUN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THORNTOUN LIMITED
- 4 -
Opinion

We have audited the financial statements of Thorntoun Limited (the 'company') for the year ended 31 March 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

THORNTOUN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THORNTOUN LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements of non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission and misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

THORNTOUN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THORNTOUN LIMITED
- 6 -
Mr Neil Reid FCCA
Senior Statutory Auditor
For and on behalf of William Duncan + Co (Audit) Ltd
2 November 2023
Chartered Accountants
Statutory Auditor
Ellersley House
30 Miller Road
Ayr
Ayrshire
KA7 2AY
THORNTOUN LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
5,022,201
4,797,052
Cost of sales
(3,939,672)
(3,403,040)
Gross profit
1,082,529
1,394,012
Administrative expenses
(789,716)
(844,490)
Other operating income
84,562
185,031
Operating profit
4
377,375
734,553
Interest receivable and similar income
7
62,288
59,190
Profit before taxation
439,663
793,743
Tax on profit
8
(83,133)
(169,802)
Profit for the financial year
356,530
623,941

The profit and loss account has been prepared on the basis that all operations are continuing operations.

THORNTOUN LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,982,104
1,992,330
Current assets
Stocks
11
2,000
2,000
Debtors
12
3,287,940
2,969,781
Cash at bank and in hand
1,263,000
1,474,807
4,552,940
4,446,588
Creditors: amounts falling due within one year
13
(845,130)
(811,229)
Net current assets
3,707,810
3,635,359
Total assets less current liabilities
5,689,914
5,627,689
Provisions for liabilities
Deferred tax liability
14
91,937
86,242
(91,937)
(86,242)
Net assets
5,597,977
5,541,447
Capital and reserves
Called up share capital
16
8,100
8,100
Equity reserve
17
(281,801)
(305,719)
Profit and loss reserves
5,871,678
5,839,066
Total equity
5,597,977
5,541,447

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 1 November 2023 and are signed on its behalf by:
Mr Richard Johnstone
Director
Company registration number SC129587 (Scotland)
THORNTOUN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
Share capital
Equity reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
8,100
(329,368)
5,498,774
5,177,506
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
623,941
623,941
Dividends
9
-
-
(260,000)
(260,000)
Transfer of amortised cost movements
16
-
0
23,649
(23,649)
-
Balance at 31 March 2022
8,100
(305,719)
5,839,066
5,541,447
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
356,530
356,530
Dividends
9
-
-
(300,000)
(300,000)
Transfer of amortised cost movements
-
0
23,918
(23,918)
-
Balance at 31 March 2023
8,100
(281,801)
5,871,678
5,597,977
THORNTOUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
1
Accounting policies
Company information

Thorntoun Limited is a private company limited by shares incorporated in Scotland. The registered office is Thorntoun Estate, Crosshouse, Kilmarnock, Ayrshire, KA2 0BH.

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.

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. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Thorntoun (2008) Limited. These consolidated financial statements are available from its registered office.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Fees are recognised at the fair value of the consideration received or receivable for the provision of nursing and residential care provided in the normal course of business. Revenue is recognised at the the point in time when services are provided.

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.

THORNTOUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 11 -

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:

Land and buildings Freehold
2% Reducing Balance
Plant and machinery
20% Reducing Balance
Fixtures, fittings & equipment
20% Reducing Balance
Motor vehicles
25% 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.

1.5
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.

1.6
Stocks

Food stocks and consumables are stated at the lower of cost and net realisable value.

1.7
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.

1.8
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.

THORNTOUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 12 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
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.

THORNTOUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
Deferred tax

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
Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.
1.14

Other loans

Other loans, which are basic financial instruments are initially recorded at the present value of future receipts discounted at a market rate of interest for similar loans. Subsequently they are measured at amortised cost using the effective interest method. Other loans that are payable within one year are not discounted.

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.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Fees
5,022,201
4,797,052
THORNTOUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 14 -
2023
2022
£
£
Other revenue
Interest income
62,288
59,190
Grants received
78,942
185,031
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(78,942)
(185,031)
Fees payable to the company's auditor for the audit of the company's financial statements
10,600
10,500
Depreciation of owned tangible fixed assets
55,511
87,228
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Care and other staff
168
175
Administration
3
3
Directors
1
1
Total
172
179

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,966,514
2,924,651
Social security costs
224,440
209,108
Pension costs
68,784
72,633
3,259,738
3,206,392
THORNTOUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
39,330
38,119
Company pension contributions to defined contribution schemes
20,000
28,450
59,330
66,569
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on related party loans
16,975
-
0
Interest receivable from group companies
23,918
23,649
Other interest income
21,395
35,541
Total income
62,288
59,190
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
77,438
147,543
Deferred tax
Origination and reversal of timing differences
5,695
22,259
Total tax charge
83,133
169,802
THORNTOUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
8
Taxation
(Continued)
- 16 -

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
439,663
793,743
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
83,536
150,811
Depreciation on assets not qualifying for tax allowances
5,357
6,045
Adjustments in respect of financial assets
(4,544)
(4,493)
Other permanent differences
(2,583)
(3,258)
Effect of change in deferred tax rate
1,367
20,697
Taxation charge for the year
83,133
169,802
9
Dividends
2023
2022
£
£
Interim paid
300,000
260,000
10
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
2,867,818
5,983
1,494,023
106,841
4,474,665
Additions
-
0
-
0
45,285
-
0
45,285
At 31 March 2023
2,867,818
5,983
1,539,308
106,841
4,519,950
Depreciation and impairment
At 1 April 2022
1,074,615
2,430
1,307,673
97,617
2,482,335
Depreciation charged in the year
33,373
888
18,944
2,306
55,511
At 31 March 2023
1,107,988
3,318
1,326,617
99,923
2,537,846
Carrying amount
At 31 March 2023
1,759,830
2,665
212,691
6,918
1,982,104
At 31 March 2022
1,793,203
3,553
186,350
9,224
1,992,330
THORNTOUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Tangible fixed assets
(Continued)
- 17 -

The Bank of Scotland hold a fixed and floating charge over the assets of the company and a standard security over the company's heritable property.

 

11
Stocks
2023
2022
£
£
Finished goods and goods for resale
2,000
2,000
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
451,138
193,219
Amounts owed by group undertakings
-
0
131
Other debtors
214,678
223,489
Prepayments and accrued income
41,099
60,683
706,915
477,522
2023
2022
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
770,025
713,165
Other debtors
1,811,000
1,779,094
2,581,025
2,492,259
Total debtors
3,287,940
2,969,781

Loans to related parties have not incurred a market rate of interest in the year ended 31 March 2023 and in the year ended 31 March 2022 and as such have been discounted to fair value to account for the below market rate of interest, with the difference between book value and fair value being recognised in equity. The subsequent unwinding of the discount is recognised as interest income through the Profit and Loss.

THORNTOUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
110,393
146,683
Amounts owed to group undertakings
5,905
-
0
Corporation tax
77,438
147,543
Other taxation and social security
48,904
50,974
Other creditors
35,706
125,318
Accruals and deferred income
566,784
340,711
845,130
811,229
14
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
91,937
86,242
There were no deferred tax movements in the year.
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
68,784
72,633

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
8,000
8,000
8,000
8,000
A Ordinary shares of £1 each
100
100
100
100
8,100
8,100
8,100
8,100

 

THORNTOUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
17
Equity reserve

The equity reserve reflects the discounting of the loans from related parties to fair value and the movement in the year is in relation to the unwinding of the discount. These reserves are not distributable.

18
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
5,143
10,137
19
Related party transactions

The company has taken the exemption available under FRS102 Section 33 “Related Party Disclosures” and has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertakings of the group.

Included within amounts due from related parties (after more than one year) is a loan to an entity related by virtue of common directorships. This loan is repayable over 12 years with a rate of interest of 1.36%. Repayments of £Nil (2022: £120,000) were made in the year and £16,975 (2022: nil) was charged in the year. The amount outstanding at the balance sheet date was £2,019,000 (£1,978,106).

Included within other creditors (within one year) last year was an amount due to a related party through common directorship. This balance was repaid within the current year and a net amount due from them at 31 March 2023 of £6,578. This balance is interest free and repayable on demand.

 

20
Ultimate controlling party

The ultimate parent company is Thorntoun (2008) Limited, a company registered in Scotland, which is jointly controlled by the directors.

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