Company Registration No. SC518613 (Scotland)
Caledonia Forest Land Investment Limited
Financial statements
for the year ended 31 October 2023
Pages for filing with the registrar
Caledonia Forest Land Investment Limited
Contents
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 13
Caledonia Forest Land Investment Limited
Balance sheet
As at 31 October 2023
1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
8,570,000
-
Biological assets
5
10,620,000
-
Investment properties
6
23,059,562
19,190,000
23,059,562
Current assets
Stocks
80,318
Debtors
7
202,432
732,706
Cash at bank and in hand
502,606
13,730
785,356
746,436
Creditors: amounts falling due within one year
8
(457,510)
(285,263)
Net current assets
327,846
461,173
Total assets less current liabilities
19,517,846
23,520,735
Creditors: amounts falling due after more than one year
9
(5,668,674)
(5,398,737)
Provisions for liabilities
10
(712,075)
(3,312,690)
Net assets
13,137,097
14,809,308
Capital and reserves
Called up share capital
10
1,387,475
Share premium account
11
3,700,000
Revaluation reserve
12
4,243,100
Capital contribution reserve
342,804
342,804
Profit and loss reserves
8,551,183
9,379,029
Total equity
13,137,097
14,809,308
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Caledonia Forest Land Investment Limited
Balance sheet (continued)
As at 31 October 2023
2
The financial statements were approved by the board of directors and authorised for issue on 15 January 2024 and are signed on its behalf by:
Kai-Carsten Albrecht
Director
Company Registration No. SC518613
Caledonia Forest Land Investment Limited
Statement of changes in equity
For the year ended 31 October 2023
3
Share capital
Share premium account
Revaluation reserve
Capital contribution reserve
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 1 November 2021
1,387,475
3,700,000
342,804
5,738,151
11,168,430
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
-
-
-
3,640,878
3,640,878
Balance at 31 October 2022
1,387,475
3,700,000
342,804
9,379,029
14,809,308
Year ended 31 October 2023:
Loss for the year
-
-
-
-
(842,629)
(842,629)
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
(1,106,110)
-
-
(1,106,110)
Tax relating to revaluation of tangible fixed assets
-
-
276,528
-
276,528
Total comprehensive income for the year
-
-
(829,582)
-
(842,629)
(1,672,211)
Own shares acquired
(1,387,465)
(3,700,000)
-
5,087,465
-
Transfer from investment properties
-
-
5,072,682
-
(5,072,682)
-
Balance at 31 October 2023
10
4,243,100
342,804
8,551,183
13,137,097
Caledonia Forest Land Investment Limited
Notes to the financial statements
For the year ended 31 October 2023
4
1
Accounting policies
Company information
Caledonia Forest Land Investment Limited is a private company limited by shares incorporated in Scotland. The registered office is Collins House, Rutland Square, Edinburgh, EH1 2AA.
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 investment properties, biological assets, land and buildings and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
At 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
Rental income from investment properties is included in the financial statements on a straight line basis over the terms of the lease.
Turnover is recognised at the fair value of the consideration received or receivable.
Revenue from the harvesting of timber products is recognised when the significant risks and rewards of ownership have passed to the buyer (usually on dispatch of the timber), 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.
1.4
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.
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% per annum straight line basis
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.
Caledonia Forest Land Investment Limited
Notes to the financial statements (continued)
For the year ended 31 October 2023
1
Accounting policies (continued)
5
1.5
Biological assets
Biological assets are recognised only when three recognition criteria have been fulfilled:
the entity has control over the asset as a result of past events;
it is probable that future economic benefits associated with the asset will flow to the entity; and
the fair value or cost of the asset can be measured reliably.
Where the company opts to measure a biological asset under the fair value model on initial recognition it must carry the asset at fair value at each reporting date. Changes in fair value less costs to sell are recognised in profit or loss.
Where the company opts to measure agricultural produce harvested from the biological asset it is measured at fair value less costs to sell at the point of harvest. This measurement becomes the cost at the date the company applies Section 13 Inventories to the agricultural produce.
1.6
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.
1.7
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.
1.8
Stocks
Stocks are stated at fair value less costs to sell.
1.9
Cash and cash equivalents
These comprise 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.
Caledonia Forest Land Investment Limited
Notes to the financial statements (continued)
For the year ended 31 October 2023
1
Accounting policies (continued)
6
1.10
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.
1.11
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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. 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.
Caledonia Forest Land Investment Limited
Notes to the financial statements (continued)
For the year ended 31 October 2023
1
Accounting policies (continued)
7
1.12
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.14
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.
2
Critical accounting 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.
Caledonia Forest Land Investment Limited
Notes to the financial statements (continued)
For the year ended 31 October 2023
2
Critical accounting judgements and key sources of estimation uncertainty (continued)
8
Key sources of estimation uncertainty
Fair value of land and buildings and biological assets
The company's key source of estimation uncertainty relates to land and buildings and biological assets valuation. Biological assets comprise woodland assets, and are carried at fair value, with changes in fair value recognised in profit or loss. Determining the fair value of land and buildings and biological assets held at valuation requires the entity to use a professional to estimate what it believes to be a fair market value of each asset.
The fair value defined as the estimated amount for which the land and buildings or biological assets should exchange on the date of the valuation between a willing buyer and seller in an arm's length transaction, through the use of comparable values of similar land and buildings or woodland assets observable in the market.
The main assumptions in the valuation are typically trade related, such as land value and crop value, and are based on the professional judgement and market observations. Each land asset or woodland asset has been valued in isolation based on the unique nature, characteristics and perceived risk of that asset.
The net book value of land and buildings at 31 October 2023 held at valuation was £8,570,000.
The net book value of biological assets at 31 October 2023 held at valuation was £10,620,000.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
4
Tangible fixed assets
Land and buildings
£
Cost or valuation
Additions
9,676,110
Revaluation
(1,106,110)
At 31 October 2023
8,570,000
Depreciation and impairment
Carrying amount
At 31 October 2023
8,570,000
At 31 October 2022
Caledonia Forest Land Investment Limited
Notes to the financial statements (continued)
For the year ended 31 October 2023
4
Tangible fixed assets (continued)
9
Forestry assets, including land were revalued by Royal Institution of Chartered Surveyors' Registered Valuers under the employment of Goldcrest Land and Forestry Group LLP as at 31 October 2023. These revaluations were carried out on a market basis.
If land and buildings were measured using the cost model, the carrying amounts would have been £4,603,428 (2022 - £nil).
5
Biological assets
Woodlands
£
Cost or valuation
At 1 November 2022
Transfer from investment property
11,824,662
Additions - planting
232,613
Fellings
(530,950)
Transfer to stock
(80,318)
Revaluation
(826,007)
At 31 October 2023
10,620,000
Carrying amount
At 31 October 2023
10,620,000
At 31 October 2022
The biological assets were revalued by Royal Institution of Chartered Surveyors' Registered Valuers under the employment of Goldcrest Land and Forestry Group LLP as at 31 October 2023. These revaluations were carried out on a market basis.
Woodlands are carried at valuation. If woodlands were measured using the cost model, the carrying amounts would have been £4,847,644(2022 - £nil).
6
Investment property
2023
£
Fair value
At 1 November 2022
23,059,562
Transfers
(21,447,244)
Revaluations
(1,612,318)
At 31 October 2023
Caledonia Forest Land Investment Limited
Notes to the financial statements (continued)
For the year ended 31 October 2023
6
Investment property (continued)
10
Following a re-organisation of the business activities, investment property did not meet the definition of investment property and has been re-classified to tangible assets and biological assets during the year.
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
148,904
Other debtors
53,528
732,706
202,432
732,706
8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
32,754
Taxation and social security
54,748
Other creditors
370,008
285,263
457,510
285,263
9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Loans due to shareholder
5,668,674
5,398,737
Creditors which fall due after five years are as follows:
2023
2022
£
£
Payable other than by instalments
5,668,674
5,398,737
Caledonia Forest Land Investment Limited
Notes to the financial statements (continued)
For the year ended 31 October 2023
11
10
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Capital gains
991,643
3,312,690
Tax losses
(279,568)
-
712,075
3,312,690
2023
Movements in the year:
£
Liability at 1 November 2022
3,312,690
Credit to profit or loss
(2,324,088)
Credit to other comprehensive income
(276,527)
Liability at 31 October 2023
712,075
11
Reserves
Share premium account
This reserve records the amount above the nominal value received for shares issued, less transaction costs.
Revaluation reserve
This reserve records increases in the fair value of land and buildings and decreases to the extent that such decrease relates to an increase on the same asset previously recognised in equity.
12
Revaluation reserve
2023
2022
£
£
At the beginning of the year
Revaluation deficit arising in the year
(1,106,110)
Deferred tax on revaluation of tangible assets
276,528
-
Transfer from investment properties
5,072,682
-
At the end of the year
4,243,100
-
Caledonia Forest Land Investment Limited
Notes to the financial statements (continued)
For the year ended 31 October 2023
12
13
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Eunice McAdam.
The auditor was Saffery LLP.
Caledonia Forest Land Investment Limited
Notes to the financial statements (continued)
For the year ended 31 October 2023
13
14
Operating lease arrangements
Lessor
The company previously held land as investment properties for rental purposes, which were let to a third party. This lease was terminated during the year.
Future minimum rentals receivable under non-cancellable operating leases are as follows:
2023
2022
£
£
1,360,000
2023-10-312022-11-01falseCCH SoftwareCCH Accounts Production 2023.100No description of principal activityThis audit opinion is unqualifiedKai-Carsten AlbrechtJohannes BaareEdward Daniels2024-01-152024-01-15SC5186132022-11-012023-10-31SC5186132023-10-31SC5186132022-10-31SC518613core:CurrentFinancialInstrumentscore:WithinOneYear2023-10-31SC518613core:CurrentFinancialInstrumentscore:WithinOneYear2022-10-31SC518613core:CurrentFinancialInstruments2023-10-31SC518613core:CurrentFinancialInstruments2022-10-31SC518613core:Non-currentFinancialInstruments2023-10-31SC518613core:Non-currentFinancialInstruments2022-10-31SC518613core:ShareCapital2023-10-31SC518613core:ShareCapital2022-10-31SC518613core:SharePremium2023-10-31SC518613core:SharePremium2022-10-31SC518613core:RevaluationReserve2023-10-31SC518613core:RevaluationReserve2022-10-31SC518613core:OtherMiscellaneousReserve2023-10-31SC518613core:OtherMiscellaneousReserve2022-10-31SC518613core:RetainedEarningsAccumulatedLosses2023-10-31SC518613core:RetainedEarningsAccumulatedLosses2022-10-31SC518613core:ShareCapital2021-10-31SC518613core:SharePremium2021-10-31SC518613core:RevaluationReserve2021-10-31SC518613core:OtherMiscellaneousReserve2021-10-31SC518613core:RetainedEarningsAccumulatedLosses2021-10-31SC5186132021-10-31SC518613core:RevaluationReserve2022-10-31SC518613bus:Director12022-11-012023-10-31SC518613core:RetainedEarningsAccumulatedLosses2021-11-012022-10-31SC5186132021-11-012022-10-31SC518613core:RetainedEarningsAccumulatedLosses2022-11-012023-10-31SC518613core:RevaluationReserve2022-11-012023-10-31SC518613core:ShareCapital2022-11-012023-10-31SC518613core:SharePremium12022-11-012023-10-31SC51861312022-11-012023-10-31SC518613core:LandBuildingscore:OwnedOrFreeholdAssets2022-11-012023-10-31SC518613core:LandBuildings2022-11-012023-10-31SC518613core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2022-11-012023-10-31SC518613core:LandBuildings2023-10-31SC518613core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2022-10-31SC518613core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2023-10-31SC518613core:LandBuildings2022-10-31SC518613core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2022-10-31SC5186132022-10-31SC518613core:WithinOneYear2023-10-31SC518613core:WithinOneYear2022-10-31SC518613bus:PrivateLimitedCompanyLtd2022-11-012023-10-31SC518613bus:SmallCompaniesRegimeForAccounts2022-11-012023-10-31SC518613bus:FRS1022022-11-012023-10-31SC518613bus:Audited2022-11-012023-10-31SC518613bus:Director22022-11-012023-10-31SC518613bus:Director32022-11-012023-10-31SC518613bus:FullAccounts2022-11-012023-10-31xbrli:purexbrli:sharesiso4217:GBP