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REGISTRAR OF COMPANIES

Registration number: SC450267

Auchlane Farming Company Limited

Unaudited Financial Statements

31 May 2023

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Auchlane Farming Company Limited

Contents

Accountants' Report

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

4

 

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Auchlane Farming Company Limited
for the Year Ended 31 May 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Auchlane Farming Company Limited for the year ended 31 May 2023 as set out on pages 2 to 11 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of Auchlane Farming Company Limited, as a body, in accordance with the terms of our engagement letter dated 11 January 2023. Our work has been undertaken solely to prepare for your approval the accounts of Auchlane Farming Company Limited and state those matters that we have agreed to state to the Board of Directors of Auchlane Farming Company Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Auchlane Farming Company Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Auchlane Farming Company Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Auchlane Farming Company Limited. You consider that Auchlane Farming Company Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Auchlane Farming Company Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.



Dodd & Co Limited
Chartered Accountants
FIFTEEN Rosehill
Montgomery Way
Rosehill Estate
CARLISLE
CA1 2RW

31 January 2024

 

Auchlane Farming Company Limited

(Registration number: SC450267)
Balance Sheet as at 31 May 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

-

418

Tangible assets

5

1,565,188

1,323,163

 

1,565,188

1,323,581

Current assets

 

Stocks

1,101,557

1,072,386

Debtors

6

364,851

233,716

Cash at bank and in hand

 

657

650

 

1,467,065

1,306,752

Creditors: Amounts falling due within one year

7

(682,783)

(815,016)

Net current assets

 

784,282

491,736

Total assets less current liabilities

 

2,349,470

1,815,317

Creditors: Amounts falling due after more than one year

7

(1,279,340)

(1,284,660)

Provisions for liabilities

(299,331)

(215,967)

Net assets

 

770,799

314,690

Capital and reserves

 

Allotted, called up and fully paid share capital

100

100

Profit and loss account

770,699

314,590

Total equity

 

770,799

314,690

 

Auchlane Farming Company Limited

(Registration number: SC450267)
Balance Sheet as at 31 May 2023 (continued)

For the financial year ending 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 31 January 2024 and signed on its behalf by:
 

.........................................
H W Campbell
Director

.........................................
K J Campbell
Director

 
     
 

Auchlane Farming Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2023

1

General information

The company is a private company limited by share capital, incorporated in Scotland.

The address of its registered office is:
Auchlane Farm
Kelton
CASTLE DOUGLAS
DG7 1SZ

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Government grants

Government grants such as the basic payment scheme are included in the profit and loss account when all the necessary conditions for receipt have been met.

Basic payment scheme

The amount paid in connection with the purchase of the basic payment scheme entitlement was amortised over the useful economic life of that entitlement, and has now been fully amortised.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

Auchlane Farming Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2023 (continued)

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

5% straight line basis

Plant and equipment

15% reducing balance basis and 20 years straight line basis

Motor Vehicles

25% reducing balance basis

Tractors

15% reducing balance basis

Land and buildings relate to tenants improvements on land leased by the company from the director. As the long term intention is for the farming operation to continue, it is deemed a true and fair view to depreciate the assets at 5% straight line basis over their useful life, and not the duration of the lease.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Basic payment entitlement

Over 2 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Auchlane Farming Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2023 (continued)

Trade debtors

Trade debtors are amounts due from customers for the sale of goods or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Trading stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. The cost of livestock represents the purchase cost plus any additional costs of rearing the animal. Net realisable value is based on selling price less anticipated selling costs. Crop stock is valued at fair value less any anticipated costs to sell.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method where due after more than one year.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Auchlane Farming Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2023 (continued)

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 10 (2022 - 11).

 

Auchlane Farming Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2023 (continued)

4

Intangible assets

Basic payment scheme
 £

Total
£

Cost or valuation

At 1 June 2022

58,114

58,114

At 31 May 2023

58,114

58,114

Amortisation

At 1 June 2022

57,696

57,696

Amortisation charge

418

418

At 31 May 2023

58,114

58,114

Carrying amount

At 31 May 2023

-

-

At 31 May 2022

418

418

5

Tangible assets

Land and buildings
£

Plant and equipment
 £

Motor vehicles
 £

Tractors
 £

Total
£

Cost or valuation

At 1 June 2022

408,786

1,092,086

106,315

530,942

2,138,129

Additions

63,643

299,030

47,540

102,500

512,713

Disposals

-

(12,500)

(49,590)

(70,500)

(132,590)

At 31 May 2023

472,429

1,378,616

104,265

562,942

2,518,252

Depreciation

At 1 June 2022

52,229

556,497

39,238

167,002

814,966

Charge for the year

23,580

103,578

6,912

59,813

193,883

Eliminated on disposal

-

(10,337)

(6,199)

(39,249)

(55,785)

At 31 May 2023

75,809

649,738

39,951

187,566

953,064

Carrying amount

At 31 May 2023

396,620

728,878

64,314

375,376

1,565,188

At 31 May 2022

356,557

535,589

67,077

363,940

1,323,163

 

Auchlane Farming Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2023 (continued)

6

Debtors

2023
£

2022
£

Trade debtors

238,781

207,034

Other debtors

126,070

26,682

364,851

233,716

7

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

8

405,202

511,924

Trade creditors

 

219,459

287,651

Taxation and social security

 

5,022

5,968

Corporation tax liability

 

44,436

-

Other creditors

 

8,664

9,473

 

682,783

815,016

Due after one year

 

Loans and borrowings

8

1,254,950

1,255,967

Other creditors

 

24,390

28,693

 

1,279,340

1,284,660

2023
£

2022
£

After more than five years by instalments

910,765

846,460

910,765

846,460

8

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

44,976

70,721

Bank overdrafts

271,816

317,645

Finance lease liabilities

81,414

82,985

Other borrowings

6,996

40,573

405,202

511,924

 

Auchlane Farming Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2023 (continued)

Current loans and borrowings includes the following liabilities, on which security has been given by the company:

2023
£

2022
£

Bank borrowings

44,976

70,721

Bank overdrafts

271,816

317,645

Finance lease liabilities

81,414

82,985

Other borrowings

6,996

6,996

405,202

478,347

Bank borrowings are secured by fixed and floating charges over the company's assets.

Bank overdrafts are secured by fixed and floating charges over the company's assets.

Finance lease liabilities are secured on the assets to which they relate.

Other borrowings are secured by fixed and floating charges over the company's assets.

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

1,097,785

1,129,643

Finance lease liabilities

146,671

108,834

Other borrowings

10,494

17,490

1,254,950

1,255,967

Non-current loans and borrowings includes the following liabilities, on which security has been given by the company:

2023
£

2022
£

Bank borrowings

1,097,785

1,129,643

Finance lease liabilities

146,671

108,834

Other borrowings

10,494

17,490

1,254,950

1,255,967

Bank borrowings are secured by fixed and floating charges over the company's assets.

Finance lease liabilities are secured on the assets to which they relate.

Other borrowings are secured by fixed and floating charges over the company's assets.

 

Auchlane Farming Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2023 (continued)

9

Related party transactions

Transactions with directors

2023

At 1 June 2022
£

Advances
£

Repayments
£

Other payments
£

Dividends credited
£

Interest
£

At 31 May 2023
£

H W Campbell

Loan

-

77,414

(29,615)

-

(1,333)

355

46,821

               
         

K J Campbell

Loan

-

77,414

(29,614)

-

(1,334)

355

46,821

               
         

 

Directors' advances are repayable on demand.

Interest has been charged on advances to directors at 2% to 5 April 2023 and 2.25% thereafter.