Company Registration No. SC071949 (Scotland)
Regency Oils Limited
Unaudited financial statements
for the year ended 31 May 2023
Pages for filing with the registrar
Regency Oils Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 8
Regency Oils Limited
Statement of financial position
As at 31 May 2023
31 May 2023
1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
822,490
714,582
Investment properties
4
140,000
140,000
962,490
854,582
Current assets
Stocks
463,088
747,158
Debtors
5
895,136
1,400,159
Investments
6
176,780
163,572
Cash at bank and in hand
2,522,388
1,665,888
4,057,392
3,976,777
Creditors: amounts falling due within one year
7
(1,572,822)
(2,024,095)
Net current assets
2,484,570
1,952,682
Total assets less current liabilities
3,447,060
2,807,264
Provisions for liabilities
(161,733)
(130,467)
Net assets
3,285,327
2,676,797
Capital and reserves
Called up share capital
50,000
50,000
Revaluation reserve
8
42,129
42,129
Capital redemption reserve
100,000
100,000
Profit and loss reserves
3,093,198
2,484,668
Total equity
3,285,327
2,676,797
Regency Oils Limited
Statement of financial position (continued)
As at 31 May 2023
31 May 2023
2
The director of the company has elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his 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 and signed by the director and authorised for issue on 9 December 2023
..............................
Robert Milne
Director
Company Registration No. SC071949
Regency Oils Limited
Notes to the financial statements
For the year ended 31 May 2023
3
1
Accounting policies
Company information
Regency Oils Limited is a private company limited by shares incorporated in Scotland. The registered office is 15 Marine Place, Buckie, AB56 1UT.
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 investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts and settlement discounts.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on delivery of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
Tangible fixed assets
Land and buildings are stated at deemed historical cost (previously revalued cost) following the transition to FRS 102. The remainder of tangible fixed assets are measured at cost net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or deemed cost of assets less their residual values over their useful lives on the following bases:
Heritable property
2% straight line
Long term leasehold property
over the period of the lease
Commercial vehicles
10% straight line
Plant and equipment
5% - 20% straight line
Fixtures and fittings
15% 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.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
Regency Oils Limited
Notes to the financial statements (continued)
For the year ended 31 May 2023
1
Accounting policies (continued)
4
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
Current asset investments
Investments are stated at market value. Gains and losses on disposal and revaluation of investments are charged or credited to the income statement.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Heritable property held for sale is carried at its market value.
1.8
Cash at bank and in hand
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.
1.9
Financial instruments
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Debtors
Debtors do not carry interest and are stated at their nominal value. Appropriate allowances are made for estimated unrecoverable amounts, which are recognised in the profit and loss account when there is objective evidence that the asset is impaired.
Loans
Basic financial liabilities, including loans, 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
Trade creditors are not interest bearing and are stated at their nominal value.
1.10
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.
Regency Oils Limited
Notes to the financial statements (continued)
For the year ended 31 May 2023
1
Accounting policies (continued)
5
1.11
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.
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.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Regency Oils Limited
Notes to the financial statements (continued)
For the year ended 31 May 2023
6
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
17
20
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 June 2022
368,494
1,315,372
1,683,866
Additions
244,045
244,045
Disposals
(143,032)
(143,032)
At 31 May 2023
368,494
1,416,385
1,784,879
Depreciation and impairment
At 1 June 2022
175,784
793,500
969,284
Depreciation charged in the year
6,780
87,479
94,259
Eliminated in respect of disposals
(101,154)
(101,154)
At 31 May 2023
182,564
779,825
962,389
Carrying amount
At 31 May 2023
185,930
636,560
822,490
At 31 May 2022
192,710
521,872
714,582
In applying the accounting policies required by FRS 102, the company has elected that the revalued value of the land and buildings be deemed cost as from the transition date. Accordingly, the revaluation reserve has been frozen at £42,129.
Regency Oils Limited
Notes to the financial statements (continued)
For the year ended 31 May 2023
7
4
Investment property
2023
£
Fair value
At 1 June 2022 and 31 May 2023
140,000
Investment property comprises both commercial and residential properties. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 May 2023 by the director of the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
810,858
1,120,394
Other debtors
84,278
279,765
895,136
1,400,159
6
Current asset investments
2023
2022
£
£
Other investments
176,780
163,572
The fair value of these investments is based on the quoted share value.
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,265,523
1,631,888
Corporation tax
157,606
172,655
Other taxation and social security
7,182
6,815
Other creditors
142,511
212,737
1,572,822
2,024,095
The bank holds a bond and floating charge over the whole assets of the company.
8
Revaluation reserve
In applying the accounting policies required by FRS 102, the company has elected that the revalued value of the land and buildings be deemed cost as from the transition date. Accordingly, the revaluation reserve has been frozen at £42,129.
Regency Oils Limited
Notes to the financial statements (continued)
For the year ended 31 May 2023
8
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases with a remaining lease term of 55 years (2022 - 56 years), as follows:
2023
2022
£
£
631,125
642,600