REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE PERIOD 1ST MARCH 2022 TO 26TH FEBRUARY 2023 |
FOR |
GRETNA GREEN LTD |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE PERIOD 1ST MARCH 2022 TO 26TH FEBRUARY 2023 |
FOR |
GRETNA GREEN LTD |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Period 1st March 2022 to 26th February 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Profit and Loss Account | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Financial Statements | 15 |
GRETNA GREEN LTD |
COMPANY INFORMATION |
for the Period 1st March 2022 to 26th February 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
100 Barbirolli Square |
Manchester |
M2 3BD |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
STRATEGIC REPORT |
for the Period 1st March 2022 to 26th February 2023 |
The directors present their strategic report for the period 1st March 2022 to 26th February 2023. |
REVIEW OF BUSINESS |
The principal activities of the company remain the provision of retail, hospitality, and tourism services - with a focus on weddings. In the financial year to 26th February 2023, the business continued to adapt, On-going Scottish Covid-19 restrictions inhibited the retail side of the business in the first few months of the year. Weddings boomed -- thanks to pent-up demand following the aftermath of CV19. Hotels traded for the full year. |
During the year turnover grew by £2.55m, the increase was driven by the demand for weddings and putting more heads on beds in hotels. In the year, focus was very much on leveraging the demand for people wanting to get married, while monitoring cash flow, control of stock and overheads, and team development. |
FINANCIAL KEY PERFORMANCE INDICATORS |
2023 | 2022 |
Revenue | 12,774,121 | 10,225,532 |
Underlying EBITDA | 799,542 | 1,457,925 |
Net current assets | 2,642,232 | 3,261,923 |
REVIEW OF BUSINESS RISKS |
Financial Risks |
The Company's operations expose it to a limited number of financial risks, primarily credit risk and liquidity risk. |
Credit Risk |
Appropriate credit checks are undertaken on all potential customers before liabilities are incurred. Individual exposures are monitored on an ongoing basis to ensure bad debts are minimised. |
Liquidity Risk |
The company regularly forecasts cash flow to ensure that sufficient funds are available for operational requirements. |
Non- Financial Risks |
Non-financial risks are monitored on a regular basis by the Board. The principal risks and how they are mitigated are set out below; |
Loss of business due to fall in demand or macro-economic climate - the Directors review prospects and sales forecast on a regular basis. The company maintains a consistent and good order book and puts considerable effort into maintaining customer focused activities. |
Loss of suppliers - The Company maintains strong relationships with its suppliers and actively manages its supplier base. |
EMPLOYEE INVOLVEMENT |
The company places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the company. This is achieved through team briefings, formal and informal meetings with employee representatives and a Staff Survey. |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
STRATEGIC REPORT |
for the Period 1st March 2022 to 26th February 2023 |
DISABLED EMPLOYEES |
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitude of the applicant concerned. In the event of employees becoming disabled every effort is made to ensure that their employment with the company continues and that appropriate and relevant training is arranged. It is the policy of the Company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. |
The Company reserves the right to conduct audits of key suppliers to ensure compliance with the company Supplier Code of Conduct. These audits can be done either by employees or by contracted, independent third parties or a combination. We expect our suppliers to respect human rights, including maintaining policies and procedures to prevent the use of child or forced labour. |
HUMAN TRAFFICKING AND ANTI-SLAVERY STATEMENT |
The Company is committed to ensuring that it is free from acts of modern slavery from within its own business and within its supply chain. The Company acknowledges responsibility for implementing the requirements of the Modern Slavery Act 2015 and will ensure transparency within the organisation and with suppliers of goods and services to the organisation. |
The Company Directors and Senior Management will take responsibility for enhancing this policy statement and its objectives, and shall provide adequate training to ensure that, wherever possible, slavery and human trafficking is not taking place within the organisation or within its supply chains. |
POLICY ON PAYMENT TO SUPPLIERS |
The Company's supplier payment policy is to agree terms and conditions for business transactions with suppliers. Suppliers are made aware of the Company's terms and payment is made according to those terms. |
ON BEHALF OF THE BOARD: |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
REPORT OF THE DIRECTORS |
for the Period 1st March 2022 to 26th February 2023 |
The directors present their report with the financial statements of the company for the period 1st March 2022 to 26th February 2023. |
DIVIDENDS |
The total distributions paid in the period to 26 February 2023 was £92,480 (2022: £106,470). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st March 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
The Company has chosen, in accordance with Section 414 C(ii) of the Companies Act 2006, and as noted in this Directors' Report, to include certain matters in its Strategic Report that would otherwise be required to disclose in this Directors' Report, specifically in respect of the review of the business, key performance indicators, principal business risks and uncertainties and future developments for the company. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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. |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
REPORT OF THE DIRECTORS |
for the Period 1st March 2022 to 26th February 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditor, Xeinadin Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GRETNA GREEN LTD |
Qualified Opinion |
We have audited the financial statements of Gretna Green Ltd (the 'company') for the period ended 26th February 2023 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Financial Statements, including a summary of 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 except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 26th February 2023 and of its profit for the period then ended; |
- | have been properly prepared in accordance with the United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006 |
Basis for qualified opinion |
At the prior period reporting date, due to the COVID-19 pandemic and government restrictions, we did not observe the counting of physical inventories at the start of of that financial year. We were therefore unable to satisfy ourselves by other means concerning the inventory quantities held at 28 February 2021 by using other audit procedures. Consequently, we were unable to determine whether any adjustment to that amount was necessary or whether there was any consequential effect on the cost of sales for the year ended 28 February 2022. |
Any adjustment to the valuation of the opening inventory would have a consequential impact on the reported profit for the year. |
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 Auditors' 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 evidence we have obtained is sufficient and appropriate to provide a basis for our qualified 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. |
Key audit matters |
Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GRETNA GREEN LTD |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
Opinion on other matters prescribed in Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
Except for the matter described in the basis for qualified opinion section of our report, 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. |
Arising solely from the limitation on the scope of our work relating to inventory, referred to above: |
- | we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and |
- | in our opinion, adequate accounting records have not been kept. |
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: |
- | returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GRETNA GREEN LTD |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GRETNA GREEN LTD |
Auditors' 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 a Report of the Auditors 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: |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following: |
- | The nature of the industry and sector, control environment and business performance including the company's remuneration policies, key drivers for directors remuneration, bonus levels and performance targets. |
- | Results of the enquiries of management about their own identification and assessment of the risks of irregularities; |
- | Any matters we have identified having obtained and reviewed the company's documentation of their policies and procedures relating to: |
- | identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
- | detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- | the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- | the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income, valuation of stock, capitalisation of expenditure, depreciation policies and provisions against slow moving stock. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety, pensions legislation and tax legislation. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. |
Audit response to risks identified |
Our procedures to respond to risks identified included the following: |
- | reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- | enquiring of management concerning actual and potential litigation and claims; |
- | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; |
- | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business; and |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GRETNA GREEN LTD |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
100 Barbirolli Square |
Manchester |
M2 3BD |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
PROFIT AND LOSS ACCOUNT |
for the Period 1st March 2022 to 26th February 2023 |
Period |
1/3/22 |
to | Year ended |
26/2/23 | 28/2/22 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Distribution costs | ( |
) | ( |
) |
Administrative expenses | ( |
) | ( |
) |
114,456 | 183,072 |
Other operating income | 5 |
OPERATING PROFIT | 8 |
Interest receivable and similar income |
269,859 | 933,983 |
Gain/loss on revaluation of investments | - | (8,959 | ) |
PROFIT BEFORE TAXATION |
Tax on profit | 9 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL PERIOD |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
BALANCE SHEET |
26th February 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
Investment property | 14 |
CURRENT ASSETS |
Stocks | 15 |
Debtors | 16 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 17 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 18 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 22 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 23 |
Share premium |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
STATEMENT OF CHANGES IN EQUITY |
for the Period 1st March 2022 to 26th February 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1st March 2021 |
Profit for the year | - | 738,607 | - | - | 738,607 |
Total comprehensive income | - | - |
Dividends | - | ( |
) | - | - | ( |
) |
Balance at 28th February 2022 |
Profit for the period | - | 20,141 | - | - | 20,141 |
Total comprehensive income | - | - |
Dividends | - | ( |
) | - | - | ( |
) |
Balance at 26th February 2023 |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
CASH FLOW STATEMENT |
for the Period 1st March 2022 to 26th February 2023 |
Period |
1/3/22 |
to | Year ended |
26/2/23 | 28/2/22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 28 |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Sale of fixed asset investments |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of period |
29 |
5,223,862 |
Cash and cash equivalents at end of period | 29 | 5,422,032 | 6,263,360 |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Period 1st March 2022 to 26th February 2023 |
1. | STATUTORY INFORMATION |
Gretna Green Ltd is a private company limited by share capital, incorporated in Scotland, registration number SC052082. The address of the registered office is Headless Cross, Gretna Green, Dumfriesshire, DG16 5EA. The principal places of business are: Smiths at Gretna Green Hotel, Headless Cross, Gretna Green, Dumfriesshire, DG16 5EA; Greens at Gretna Hotel, Glasgow Road, Gretna, DG16 5FG and Gretna Hall Hotel, Gretna Green, Dumfriesshire, DG16 5DY. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Preparation of consolidated financial statements |
The company has chosen not to prepare consolidated financial statements as both of its subsidiaries are dormant and immaterial to the results. These financial statements therefore present information about the company as an individual undertaking and not about its group. |
Turnover |
Turnover represents amounts recognised by the company in respect of goods and services supplied, exclusive of Value Added Tax and trade discounts. Turnover principally consists of wedding ceremonies, hotel stays. retail sales and farming income, which are recognised at the point of which the goods or services are provided. |
Goodwill |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. |
Depreciation on tangible fixed assets is charged to the profit and loss so as to write off their value, over their estimated useful lives, using the following methods: |
Freehold property | - 2% on cost |
Fixtures and fittings | - varying rates between 10% - 33% on cost |
At each balance sheet date, the Company reviews the carrying amounts of its fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st March 2022 to 26th February 2023 |
2. | ACCOUNTING POLICIES - continued |
Government grants |
Government grants are recognised on the accrual model and are measured at fair value of the asset receivable. Grants are classified as relating either to other income or to assets. Grants related to other income are recognised in profit or loss over the period in which the related costs are recognised. Grants relating to assets are recognised 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. |
Investment property |
Investment property is carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Profit and Loss Account. |
Investments |
In the balance sheet, unlisted investments are shown as cost less impairment. Any provision for impairment is reflected as an expense in the statement of profit or loss. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the first-in-first-out principle and includes expenditure in acquiring the stocks, product or conversion costs and other costs in bringing them to their existing location and condition. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred taxation |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st March 2022 to 26th February 2023 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The obligations for contributions to defined contribution scheme are recognised as an expense as incurred. The assets of the scheme are held separately from those of the Company in an independent administered fund. |
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds. |
Leases |
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term. |
Financial instruments |
Financial assets and liabilities are recognised when the company becomes party to the contractual provisions of the financial instrument. The company holds basic financial instruments, which comprise cash at bank and in hand, trade and other debtors, borrowings, and trade and other creditors. The company has chosen to apply the measurement and recognition provisions of Section 11 Basic Financial Instruments. |
Trade and other debtors |
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts. |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand. Bank borrowings are included in creditors. |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st March 2022 to 26th February 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the Company's accounting policies above, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources.The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future period. |
The following are the Company's key accounting estimates and assumptions: |
Depreciation |
The company accounts for depreciation in accordance with FRS 102. The depreciation and expense is the recognition of the decline in the value of the asset and allocation of the cost of the asset over the periods in which the asset will be used. Judgements are made on the estimated useful life of the assets which are regularly reviewed to reflect the changing environment. Depreciation charged in the period was £521,585 (2022 - £429,477). |
Stock provision |
Stock is valued at the lower of cost and net realisable value. Net realisable values are assessed using market data which is based upon recent trading activity. At the end of each reporting period stock lines are assessed for impairment against post period end activity and fair values along with trading activity during the period. Where impairment is identified the value is reduced and the impairment charge is recognised through profit or loss. The provision at the reporting date is £356,890 (2022 - £489,499). |
Investment property valuation |
Investment properties are valued at fair value, with changes in fair value being recognised in the Profit and Loss Account. The valuation method is based on a discounted cash flow model based on comparable market data. The determined fair value is sensitive to the estimated yield as well as to vacancy rates. |
Management have deemed the investment property is accurately valued at the reporting date and no revaluation is required for this financial period. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
Period |
1/3/22 |
to | Year ended |
26/2/23 | 28/2/22 |
£ | £ |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st March 2022 to 26th February 2023 |
4. | TURNOVER - continued |
An analysis of turnover by geographical market is given below: |
Period |
1/3/22 |
to | Year ended |
26/2/23 | 28/2/22 |
£ | £ |
United Kingdom |
Europe |
United States of America |
Asia |
Oceania | 16,137 | 29,736 |
North America | 13,031 | 13,837 |
5. | OTHER OPERATING INCOME |
Period |
1/3/22 |
to | Year ended |
26/2/23 | 28/2/22 |
£ | £ |
Net rents received |
Sundry income | 69,099 | 20,777 |
Government grants |
124,538 | 749,216 |
6. | EMPLOYEES AND DIRECTORS |
Period |
1/3/22 |
to | Year ended |
26/2/23 | 28/2/22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st March 2022 to 26th February 2023 |
6. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the period was as follows: |
Period |
1/3/22 |
to | Year ended |
26/2/23 | 28/2/22 |
Administration and maintenance | 37 | 27 |
Museum, retail outlets and hotel | 176 | 153 |
7. | DIRECTORS' EMOLUMENTS |
Period |
1/3/22 |
to | Year ended |
26/2/23 | 28/2/22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
Period |
1/3/22 |
to | Year ended |
26/2/23 | 28/2/22 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
8. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period |
1/3/22 |
to | Year ended |
26/2/23 | 28/2/22 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Goodwill amortisation |
Auditors' remuneration |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st March 2022 to 26th February 2023 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
Period |
1/3/22 |
to | Year ended |
26/2/23 | 28/2/22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1/3/22 |
to | Year ended |
26/2/23 | 28/2/22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Deferred tax movement | 249,718 | 83,370 |
Losses not utilised | 53,412 | - |
Total tax charge | 249,718 | 186,417 |
10. | DIVIDENDS |
Period |
1/3/22 |
to | Year ended |
26/2/23 | 28/2/22 |
£ | £ |
Ordinary shares of £1 each |
Final |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st March 2022 to 26th February 2023 |
11. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1st March 2022 |
and 26th February 2023 |
AMORTISATION |
At 1st March 2022 |
Amortisation for period |
At 26th February 2023 |
NET BOOK VALUE |
At 26th February 2023 |
At 28th February 2022 |
12. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | and |
property | fittings | Totals |
£ | £ | £ |
COST |
At 1st March 2022 |
Additions |
Disposals | ( |
) | ( |
) |
Reclassification/transfer | ( |
) |
At 26th February 2023 |
DEPRECIATION |
At 1st March 2022 |
Charge for period |
At 26th February 2023 |
NET BOOK VALUE |
At 26th February 2023 |
At 28th February 2022 |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st March 2022 to 26th February 2023 |
13. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1st March 2022 |
and 26th February 2023 |
PROVISIONS |
At 1st March 2022 |
and 26th February 2023 | 32,250 |
NET BOOK VALUE |
At 26th February 2023 |
At 28th February 2022 |
The directors believe that the carrying value of the investment is supported by the underlying net assets and future forecast cashflows. |
The following were subsidiary undertakings of the company: |
Name | Country | Class of share | Holding | Principal activity |
Gretna Museum and Tourist Services Limited | Scotland | Ordinary | 100% | Dormant |
Gretna House Investment Company Limited | Scotland | Ordinary | 100% | Dormant |
The registered office and principal places of business for the above entities are Headless Cross, Gretna Green, Dumfriesshire, DG16 5EA; the financial year ends for the above subsidiaries are 28th February 2023. |
14. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1st March 2022 |
and 26th February 2023 |
NET BOOK VALUE |
At 26th February 2023 |
At 28th February 2022 |
15. | STOCKS |
2023 | 2022 |
£ | £ |
Goods for resale |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st March 2022 to 26th February 2023 |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Tax |
Prepayments |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 19) |
Trade creditors |
Social security and other taxes |
VAT | 224,035 | 134,761 |
Other creditors |
Accruals and deferred income |
Deferred government grants |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 19) |
Deferred government grants |
The deferred government grants are capital based grants relating to freehold property and are being written off to revenue over the life of the assets concerned. |
19. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st March 2022 to 26th February 2023 |
19. | LOANS - continued |
2023 | 2022 |
£ | £ |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
20. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
21. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
On the 18 November RBS created a floating charge over all of the property and undertakings of the company; this charge also contains a negative pledge. |
22. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 705,433 | 455,715 |
Deferred |
tax |
£ |
Balance at 1st March 2022 |
Provided during period |
Balance at 26th February 2023 |
23. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 8,148 | 8,148 |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st March 2022 to 26th February 2023 |
24. | PENSION COMMITMENTS |
The company contributes to a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension charge represents contributions payable by the company to the fund and amounted to £119,854 (2022 - £87,444). Contributions totalling £19,355 (2022 - £15,443) were payable to the fund at the balance sheet date and are included in creditors. |
25. | CAPITAL COMMITMENTS |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements |
26. | RELATED PARTY DISCLOSURES |
Dividends of £92,480 (2022 - £106,470) were paid to shareholders who are also directors. |
The company paid storage fees of £12,000 (2022 - £25,840) to Gretna House Farm which is controlled by a director. |
The directors consider key management personnel to be the same as directors and therefore the total compensation for the period is £742,271 (2022 - £357,569). |
27. | ULTIMATE CONTROLLING PARTY |
The ultimate controller of the company is Mrs L Houston by virtue of her majority shareholding. |
28. | RECONCILIATION OF PROFIT FOR THE FINANCIAL PERIOD TO CASH GENERATED FROM OPERATIONS |
Period |
1/3/22 |
to | Year ended |
26/2/23 | 28/2/22 |
£ | £ |
Profit for the financial period |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Loss on revaluation of fixed assets | - | 8,959 |
Loss on impairment of fixed assets | - | 51,025 |
Finance income | (30,865 | ) | (1,695 | ) |
Taxation |
799,902 | 1,457,925 |
Increase in stocks | ( |
) | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
GRETNA GREEN LTD (REGISTERED NUMBER: SC052082) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st March 2022 to 26th February 2023 |
29. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Period ended 26th February 2023 |
26/2/23 | 1/3/22 |
£ | £ |
Cash and cash equivalents | 5,422,032 | 6,263,360 |
Year ended 28th February 2022 |
28/2/22 | 1/3/21 |
£ | £ |
Cash and cash equivalents | 6,263,360 | 5,223,862 |
30. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/3/22 | Cash flow | At 26/2/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 6,263,360 | (841,328 | ) | 5,422,032 |
6,263,360 | ( |
) | 5,422,032 |
Debt |
Debts falling due within 1 year | (196,366 | ) | (5,162 | ) | (201,528 | ) |
Debts falling due after 1 year | (770,301 | ) | 205,161 | (565,140 | ) |
(966,667 | ) | 199,999 | (766,668 | ) |
Total | 5,296,693 | (641,329 | ) | 4,655,364 |