HUGH STRAIN OF AYR LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
Company registration number SC635034 (Scotland)
PAGES FOR FILING WITH REGISTRAR
HUGH STRAIN OF AYR LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 11
HUGH STRAIN OF AYR LTD
BALANCE SHEET
AS AT 31 JULY 2023
31 July 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
4
5,921
6,921
Tangible assets
5
18,871
15,062
24,792
21,983
Current assets
Stocks
258,585
199,303
Debtors
6
98,483
23,727
Cash at bank and in hand
42,186
6,511
399,254
229,541
Creditors: amounts falling due within one year
7
(399,434)
(241,859)
Net current liabilities
(180)
(12,318)
Total assets less current liabilities
24,612
9,665
Creditors: amounts falling due after more than one year
8
(18,707)
(29,408)
Provisions for liabilities
(4,718)
(2,862)
Net assets/(liabilities)
1,187
(22,605)
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
1,087
(22,705)
Total equity
1,187
(22,605)

The director of the company has elected not to include a copy of the profit and loss account 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 director acknowledges her 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.

HUGH STRAIN OF AYR LTD
BALANCE SHEET (CONTINUED)
AS AT 31 JULY 2023
31 July 2023
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 29 July 2024
Mrs L Strain
Director
Company registration number SC635034 (Scotland)
HUGH STRAIN OF AYR LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 3 -
1
Accounting policies
Company information

Hugh Strain of Ayr Ltd is a private company limited by shares incorporated in Scotland. The registered office is 46a Castlehill Road, Ayr, Ayrshire, KA7 2JA.

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. The principal accounting policies adopted are set out below.

These financial statements for the year ended 31 July 2023 are the first financial statements of Hugh Strain of Ayr Ltd prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 August 2021. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 11.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

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.

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 dispatch 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.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

1.5
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.

HUGH STRAIN OF AYR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 4 -

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:

Plant and equipment
25% Straight Line
Computers
25% Straight Line
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.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.8
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.

1.9
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 balance sheet 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 and cash and bank balances, 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.

HUGH STRAIN OF AYR LTD
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.

 

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.

1.10
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.

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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.

HUGH STRAIN OF AYR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 6 -
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
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 balance sheet 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.

1.14
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
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

3
Employees

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

2023
2022
Number
Number
Total
20
16
HUGH STRAIN OF AYR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 7 -
4
Intangible fixed assets
Goodwill
£
Cost
At 1 August 2022 and 31 July 2023
10,000
Amortisation and impairment
At 1 August 2022
3,079
Amortisation charged for the year
1,000
At 31 July 2023
4,079
Carrying amount
At 31 July 2023
5,921
At 31 July 2022
6,921
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 August 2022
30,040
Additions
9,003
At 31 July 2023
39,043
Depreciation and impairment
At 1 August 2022
14,978
Depreciation charged in the year
5,194
At 31 July 2023
20,172
Carrying amount
At 31 July 2023
18,871
At 31 July 2022
15,062
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
76,636
23,727
Other debtors
21,847
-
0
98,483
23,727
HUGH STRAIN OF AYR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 8 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
10,000
10,000
Trade creditors
-
0
1,816
Taxation and social security
380,601
218,695
Other creditors
8,833
11,348
399,434
241,859

'Other creditors' includes £1,749 (2022 - £1,749) due under hire purchase agreement. These balances are secured on the asset to which they relate.

8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
18,252
27,419
Other creditors
455
1,989
18,707
29,408

'Other creditors' includes £455 (2022 - £1,989) due under hire purchase agreement. These balances are secured on the asset to which they relate.

9
Transactions with directors

'Other debtors' includes the amount of £16,634 due to the company by its director (2022 - £3,105 due to the director). This amount is repayable on demand and interest is charged at 2%.

HUGH STRAIN OF AYR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 9 -
11
Reconciliations on adoption of FRS 102
Reconciliation of equity
At 1 August 2021
At 31 July 2022
Previous UK GAAP
Effect of
transition
FRS 102
Previous UK GAAP
Prior year adjustment
Effect of
transition
FRS 102
Notes
£
£
£
£
£
£
£
Fixed assets
Goodwill
7,921
-
7,921
6,921
-
-
6,921
Tangible assets
21,080
-
21,080
15,062
-
-
15,062
29,001
-
29,001
21,983
-
-
21,983
Current assets
Stocks
86,835
-
86,835
199,303
-
-
199,303
Debtors
21,011
-
21,011
23,727
-
-
23,727
Bank and cash
86,746
-
86,746
6,511
-
-
6,511
194,592
-
194,592
229,541
-
-
229,541
Creditors due within one year
Loans and overdrafts
(10,989)
-
(10,989)
(13,105)
-
-
(13,105)
Finance leases
(1,749)
-
(1,749)
(1,749)
-
-
(1,749)
Taxation
(158,434)
-
(158,434)
(218,695)
-
-
(218,695)
Other creditors
(5,679)
-
(5,679)
(8,310)
-
-
(8,310)
(176,851)
-
(176,851)
(241,859)
-
-
(241,859)
Net current assets/(liabilities)
17,741
-
17,741
(12,318)
-
-
(12,318)
Total assets less current liabilities
46,742
-
46,742
9,665
-
-
9,665
HUGH STRAIN OF AYR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
11
Reconciliations on adoption of FRS 102
At 1 August 2021
At 31 July 2022
Previous UK GAAP
Effect of
transition
FRS 102
Previous UK GAAP
Prior year adjustment
Effect of
transition
FRS 102
Notes
£
£
£
£
£
£
£
(Continued)
- 10 -
Creditors due after one year
Loans and overdrafts
(38,345)
-
(38,345)
(27,419)
-
-
(27,419)
Finance leases
(3,789)
-
(3,789)
(1,989)
-
-
(1,989)
(42,134)
-
(42,134)
(29,408)
-
-
(29,408)
Provisions for liabilities
Deferred tax
-
-
-
(2,862)
2,862
(2,862)
(2,862)
Net assets
4,608
-
4,608
(22,605)
2,862
(2,862)
(22,605)
Capital and reserves
Share capital
100
-
0
100
100
-
-
100
Profit and loss
4,508
-
0
4,508
(22,705)
-
-
(22,705)
Total equity
4,608
-
4,608
(22,605)
-
-
(22,605)
HUGH STRAIN OF AYR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
11
Reconciliations on adoption of FRS 102
(Continued)
- 11 -
Notes to reconciliations on adoption of FRS 102
Deferred Tax

On 1 August 2021 the company transitioned to FRS 102. At year ended 31 July 2022 the deferred tax balance was calculated to be £2,862, which was unrecognised under the previous accounting convention. The prior year profit and loss account and balance sheet have been restated to reflect this change in accounting treatment. There were no other accounting adjustments arising as a result of transitioning to FRS 102.

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