Company Registration No. SC735474 (Scotland)
Cullisse Farms Limited
Unaudited financial statements
for the period ended 30 June 2023
Pages for filing with the registrar
Cullisse Farms Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 9
Cullisse Farms Limited
Statement of financial position
As at 30 June 2023
1
2023
Notes
£
£
Fixed assets
Tangible assets
3
9,005,606
Investments
4
5,000
9,010,606
Current assets
Biological assets
5
598,943
Stocks
115,151
Debtors
6
194,005
Cash at bank and in hand
166,160
1,074,259
Creditors: amounts falling due within one year
7
(1,209,982)
Net current liabilities
(135,723)
Total assets less current liabilities
8,874,883
Creditors: amounts falling due after more than one year
8
(3,127,453)
Provisions for liabilities
(168,228)
Net assets
5,579,202
Capital and reserves
Called up share capital
300
Share premium account
5,581,249
Profit and loss reserves
(2,347)
Total equity
5,579,202
Cullisse Farms Limited
Statement of financial position (continued)
As at 30 June 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 period ended 30 June 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 period 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 12 March 2024 and are signed on its behalf by:
Charles Peter Mackenzie
Leigh Mackenzie
Director
Director
Company Registration No. SC735474
Cullisse Farms Limited
Notes to the financial statements
For the period ended 30 June 2023
3
1
Accounting policies
Company information
Cullisse Farms Limited is a private company limited by shares incorporated in Scotland. The registered office is Cullisse Farm, Nigg, Tain, Ross Shire, IV19 1QN.
1.1
Reporting period
The company was incorporated on 14 June 2022 and began trading on 26 November 2022. Therefore these financial statements cover the trading period from 26 November 2022 to 30 June 2023.
1.2
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. The principal accounting policies adopted are set out below.
1.3
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, settlement discounts and volume rebates.
Sale of goods are recognised when goods are shipped and title has passed.
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:
Freehold land and buildings
0 - 4% per annum straight line basis
Plant and equipment
10% per annum reducing balance basis
Fixtures and fittings
15% per annum reducing balance basis
Motor vehicles
25% per annum reducing balance basis
Tractors and forklifts
10% per annum reducing balance basis
Wind turbine
5% per annum reducing balance 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.
1.5
Biological assets
Biological assets held by the company relate to livestock and growing crops which are measured at cost and no depreciation is charged.
Cullisse Farms Limited
Notes to the financial statements (continued)
For the period ended 30 June 2023
1
Accounting policies (continued)
4
1.6
Fixed asset investments
Fixed asset investments are stated at cost less any provision for diminution in value.
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 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.
1.9
Cash and cash equivalents
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.
1.10
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.
Cullisse Farms Limited
Notes to the financial statements (continued)
For the period ended 30 June 2023
1
Accounting policies (continued)
5
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
1.11
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.
1.12
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.
Cullisse Farms Limited
Notes to the financial statements (continued)
For the period ended 30 June 2023
1
Accounting policies (continued)
6
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.16
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
Number
Total
5
Cullisse Farms Limited
Notes to the financial statements (continued)
For the period ended 30 June 2023
7
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Tractors and forklifts
Wind turbine
Total
£
£
£
£
£
Cost
Additions
5,373,825
408,122
653,143
2,900,000
9,335,090
Disposals
(3,750)
(163,888)
(167,638)
At 30 June 2023
5,373,825
404,372
489,255
2,900,000
9,167,452
Depreciation and impairment
Depreciation charged in the period
23,450
25,272
28,541
84,583
161,846
At 30 June 2023
23,450
25,272
28,541
84,583
161,846
Carrying amount
At 30 June 2023
5,350,375
379,100
460,714
2,815,417
9,005,606
4
Fixed asset investments
2023
£
Other investments other than loans
5,000
Movements in fixed asset investments
Investments
£
Cost or valuation
At 14 June 2022
-
Additions
5,000
At 30 June 2023
5,000
Carrying amount
At 30 June 2023
5,000
Cullisse Farms Limited
Notes to the financial statements (continued)
For the period ended 30 June 2023
8
5
Biological assets
Beef
Wheat
Barley
Oilseed rape
Total
£
£
£
£
£
Cost
At 14 June 2022
-
-
-
-
-
Additions - procreation or planting
5,520
100,400
323,778
46,125
475,823
Additions - purchases
57,550
48,000
19,200
24,600
149,350
Disposals
(22,200)
(22,200)
Revaluation
(4,030)
(4,030)
At 30 June 2023
36,840
148,400
342,978
70,725
598,943
6
Debtors
2023
Amounts falling due within one year:
£
Other debtors
194,005
7
Creditors: amounts falling due within one year
2023
£
Bank loans
120,474
Trade creditors
125,425
Taxation and social security
12,232
Other creditors
951,851
1,209,982
8
Creditors: amounts falling due after more than one year
2023
£
Bank loans and overdrafts
3,005,235
Other creditors
122,218
3,127,453
Cullisse Farms Limited
Notes to the financial statements (continued)
For the period ended 30 June 2023
9
9
Loans and overdrafts
2023
£
Bank loans
3,125,709
Other loans
133,036
3,258,745
Payable within one year
253,510
Payable after one year
3,005,235
The long-term loans are secured by fixed charges over all land and buildings.
10
Related party transactions
Transactions with related parties
During the period the company entered into the following transactions with related parties:
As at 30 June 2023, £596,026 was owed to the directors and shareholders of the company. The loan is interest free and there are no fixed terms of repayment.