Company Registration No. SC128704 (Scotland)
Careston Limited
Unaudited financial statements
for the year ended 31 July 2023
Pages for filing with the registrar
Careston Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 9
Careston Limited
Statement of financial position
As at 31 July 2023
1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
3,279
13,147
Investments
4
1
1
3,280
13,148
Current assets
Debtors
5
3,311,893
4,946,484
Investments
6
2,503,387
-
0
Cash at bank and in hand
710,790
1,583,950
6,526,070
6,530,434
Creditors: amounts falling due within one year
7
(14,505)
(27,320)
Net current assets
6,511,565
6,503,114
Total assets less current liabilities
6,514,845
6,516,262
Creditors: amounts falling due after more than one year
8
(45,000)
(45,000)
Net assets
6,469,845
6,471,262
Capital and reserves
Called up share capital
9
20,000
20,000
Share premium account
4,515,780
4,515,780
Profit and loss reserves
1,934,065
1,935,482
Total equity
6,469,845
6,471,262
Careston Limited
Statement of financial position (continued)
As at 31 July 2023
2

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

For the financial year ended 31 July 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 year 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.

The financial statements were approved by the board of directors and authorised for issue on 22 April 2024 and are signed on its behalf by:
James Shaw Campbell Adamson
Director
Company Registration No. SC128704
Careston Limited
Notes to the financial statements
For the year ended 31 July 2023
3
1
Accounting policies
Company information

Careston Limited is a private company limited by shares incorporated in Scotland. The registered office is The Manse, Careston, Brechin, Scotland, DD9 6SA.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

1.2
Turnover

Turnover represents amounts receivable for management services provided to other group companies net of VAT.

Revenue from contracts for the provision of professional services is recognised annually based on the costs involved in providing the management services to other group companies.

1.3
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.

Tangible fixed assets are stated at cost less depreciation.  Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Fixtures, fittings and equipment
10% per annum straight line
Motor vehicles
25% per annum 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.

1.4
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately 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.

Careston Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
1
Accounting policies (continued)
4

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
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
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 statement of financial position 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, 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.

Careston Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
1
Accounting policies (continued)
5
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.7
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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.8
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 income statement 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.

Careston Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
1
Accounting policies (continued)
6
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.

1.9
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.

1.10
Retirement benefits
The company contributes to employees' personal pension plans.  Contributions payable are charged to the profit and loss account in the year they are payable.
2
Employees

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

2023
2022
Number
Number
Total
2
3
Careston Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
7
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 August 2022
27,570
Additions
1,499
Disposals
(25,299)
At 31 July 2023
3,770
Depreciation and impairment
At 1 August 2022
14,423
Depreciation charged in the year
264
Eliminated in respect of disposals
(14,196)
At 31 July 2023
491
Carrying amount
At 31 July 2023
3,279
At 31 July 2022
13,147
4
Fixed asset investments
2023
2022
£
£
Investments
1
1
Fixed asset investments not carried at market value

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 August 2022 and 31 July 2023
1
Carrying amount
At 31 July 2023
1
At 31 July 2022
1
Careston Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
8
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
3,288,420
4,896,741
Other debtors
23,473
49,743
3,311,893
4,946,484
6
Current asset investments
2023
2022
£
£
Other investments
2,503,387
-
0
7
Creditors: amounts falling due within one year
2023
2022
£
£
Corporation tax
3,160
1,427
Other creditors
11,345
25,893
14,505
27,320
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
45,000
45,000
Amounts included above which fall due after five years are as follows:
Payable other than by instalments
45,000
45,000

 

9
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
20,000 Ordinary shares of £1 each
20,000
20,000
Careston Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
9
10
Related party transactions
Transactions with related parties

The following amounts were outstanding at the reporting date.

 

2023
2022
Amounts due to related parties
£
£
Entities over which the entity has control, joint control or significant influence
45,000
45,000
Amounts due to related parties
2023
2022
£
£
Entities over which the entity has control, joint control or significant influence
3,288,420
4,896,741
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