Company registration number SC145004 (Scotland)
LOSSIE SEAFOODS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
LOSSIE SEAFOODS LIMITED
COMPANY INFORMATION
Directors
Mr V West
Mr A Christofi
(Appointed 22 December 2022)
Company number
SC145004
Registered office
5-13 Low Street
Buckie
Banffshire
AB56 1UX
Auditor
Azets Audit Services
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
LOSSIE SEAFOODS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 30
LOSSIE SEAFOODS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -
The directors present the strategic report for the year ended 31 October 2023.
Lossie Seafoods is renowned as one of Scotland’s leading artisan producers of quality Scottish smoked salmon. We specialise in supplying premium smoked salmon to customers around the world for both the wholesale, catering and retail sectors, and our products are now a regular feature on the dinner tables of some of the world’s most prestigious hotels and restaurants.
Review of the Business
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Operating profit / (loss) | | | |
The year includes the Arbroath factory for the full 12 months (2022 was a partial year following our acquisition of the business, trade and assets) resulting in turnover increasing by 41% (2022 – 89%). The turnaround of the Arbroath business continues and is a major focus. Inflation has been a recurring theme all year, particularly raw material and labour, and the company has sought to pass on such costs to customers where appropriate. Nevertheless, this has resulted in a margin percentage reduction during the year.
On the back of the Arbroath acquisition, the business is following up a number of strategic opportunities to best utilise the complete footprint, raw material and process capabilities available.
The company continues to look for and invest in machinery to bring efficiencies to help manage the increased fish and labour costs. A couple of key investments in machinery have been made in 2024 leading to efficiencies and yield improvements.
The company's net assets were £5.4m at the end of the year (2022- £5.3m).
Principal risks and uncertainties
The key business risks affecting the company are as follows:
Raw material pricing and availability
Current economic conditions and inflation
Sales volumes and overhead absorption
Forex management
Funding availability
Labour resource availability
The directors have in place a risk management system which aims to manage and reduce the above risks to which the group is exposed.
Financial instruments
Our financial risk management objectives are to ensure sufficient working capital and cash flow for the company and to ensure there is sufficient support for its growth strategy. This is achieved through careful management of our cash resources, through inter-company loans and by obtaining external invoice discounting and loan finance where necessary. No treasury transactions or derivatives are entered into.
LOSSIE SEAFOODS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
S172 Statement
Summary
The directors believe that they have acted in the way they consider to be both in good faith and would be most likely to promote the success of the company for the benefit of its members as a whole. The duties of the directors are detailed in section 172 of the UK Companies Act 2006 which is summarised as follows:
A director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to:
The likely consequences of any decisions in the long-term;
The interests of the company’s employees;
The need to foster the company’s business relationships with suppliers, customers and others;
The impact of the company’s operations on the community and environment;
The desirability of the company maintaining a reputation for high standards of business conduct; and
The need to act fairly as between shareholders of the company.
The directors have a business plan which is based around achieving the group's business vision of being Scotland's leading producer of premium seafood operating in the UK and International markets.
Business conduct and relationships
We understand the importance of engaging with all our stakeholders and the directors regularly discuss issues concerning employees, clients, suppliers, community and environment, health and safety and shareholders which inform our decision making processes. The directors are aware that their strategic decisions can have long term implications for the business and its stakeholders, and these implications are carefully assessed.
We aim to build positive working relationships and partnerships with customers, employees and throughout our supply chain. We work hard to develop and maintain these relationships as they are central to our sustainable business ethos. Our aim is to build strong stable long term working relationships with them and to be fair and transparent in all our dealings.
Employees
We believe the core strength of the company is its people and we are committed to being a responsible business and employer. The company aims to recruit, develop, motivate and retain the best talent. For the business to succeed we need to engage and enable our people to perform at their best, develop their skills and capabilities, while ensuring we operate as efficiently and productively as possible.
Education & training, particularly young people, remain of key importance to the group and continued investment in this area is planned, helping to meet the industry wide skills shortage issue over the coming years.
We take active steps to ensure that the views and interests of our people are captured and considered in our decision-making. Equally, we ensure employees are kept up to date with information regularly as regards to the group's strategy and performance.
Community & environment
The company's environmental commitment is to adopt and promote industry standards and best practices, enhancing awareness of environmental responsibilities and a reduction in harmful emissions.
The company continues to be actively involved and supportive of its local communities. We support our people who regularly engage in volunteering and charitable activities at a local level and we actively promote and recognise their achievements throughout the organisation.
Shareholders & investors
The directors are committed to openly engaging with our shareholders and investors, as we recognise the importance of transparency and a continuing effective dialogue. It is important to us that all stakeholders understand our strategy and objectives, and the group is committed to considering properly their questions, issues or feedback received.
LOSSIE SEAFOODS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
Mr V West
Director
30 July 2024
LOSSIE SEAFOODS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -
The directors present their annual report and financial statements for the year ended 31 October 2023.
Principal activities
The principal activity of the company continued to be that of the production and supply of premium smoked salmon.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr V West
Mr. J W Hazeldean
(Resigned 22 December 2022)
Mr A Christofi
(Appointed 22 December 2022)
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
The company has taken exemption from disclosure of this information on the basis that it is disclosed within the annual report of its parent company, Associated Seafoods Limited, which can be obtained publicly from its registered office.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial instruments and associated risks.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
LOSSIE SEAFOODS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 5 -
On behalf of the board
Mr V West
Director
30 July 2024
LOSSIE SEAFOODS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 6 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
LOSSIE SEAFOODS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF LOSSIE SEAFOODS LIMITED
- 7 -
Opinion
We have audited the financial statements of Lossie Seafoods Limited (the 'company') for the year ended 31 October 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 October 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
LOSSIE SEAFOODS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF LOSSIE SEAFOODS LIMITED
- 8 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
LOSSIE SEAFOODS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF LOSSIE SEAFOODS LIMITED
- 9 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
Alan Brown
Senior Statutory Auditor
For and on behalf of Azets Audit Services
Chartered Accountants
Statutory Auditor
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
LOSSIE SEAFOODS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
92,464,986
65,527,810
Cost of sales
(79,712,942)
(56,226,794)
Gross profit
12,752,044
9,301,016
Administrative expenses
(11,970,709)
(8,422,843)
Other operating income
64,126
25,856
Operating profit
4
845,461
904,029
Interest payable and similar expenses
7
(773,099)
(468,713)
Profit before taxation
72,362
435,316
Tax on profit
8
(7,754)
(138,636)
Profit for the financial year
64,608
296,680
The profit and loss account has been prepared on the basis that all operations are continuing operations.
LOSSIE SEAFOODS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
2023
2022
£
£
Profit for the year
64,608
296,680
Other comprehensive income
-
-
Total comprehensive income for the year
64,608
296,680
LOSSIE SEAFOODS LIMITED
BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Negative goodwill
9
(3,124,254)
(3,374,880)
Other intangible assets
9
15,496
14,472
Total intangible assets
(3,108,758)
(3,360,408)
Tangible assets
10
19,337,082
19,113,790
Investments
11
1
1
16,228,325
15,753,383
Current assets
Stocks
13
8,751,535
5,838,914
Debtors
14
8,529,876
8,749,043
Cash at bank and in hand
348,479
323,866
17,629,890
14,911,823
Creditors: amounts falling due within one year
15
(23,518,487)
(19,511,992)
Net current liabilities
(5,888,597)
(4,600,169)
Total assets less current liabilities
10,339,728
11,153,214
Creditors: amounts falling due after more than one year
16
(2,978,500)
(3,879,501)
Provisions for liabilities
Deferred tax liability
19
1,962,696
1,939,789
(1,962,696)
(1,939,789)
Net assets
5,398,532
5,333,924
Capital and reserves
Called up share capital
22
1,232,644
1,232,644
Revaluation reserve
23
20,950
22,239
Capital redemption reserve
24
17,878
17,878
Profit and loss reserves
25
4,127,060
4,061,163
Total equity
5,398,532
5,333,924
The financial statements were approved by the board of directors and authorised for issue on 30 July 2024 and are signed on its behalf by:
Mr V West
Director
Company Registration No. SC145004
LOSSIE SEAFOODS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 13 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 November 2021
54,644
23,528
17,878
3,763,194
3,859,244
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
-
-
296,680
296,680
Conversion of loan to shares
22
1,178,000
-
-
-
1,178,000
Transfers
-
(1,289)
-
1,289
-
Balance at 31 October 2022
1,232,644
22,239
17,878
4,061,163
5,333,924
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
-
-
64,608
64,608
Transfers
-
(1,289)
-
1,289
-
Balance at 31 October 2023
1,232,644
20,950
17,878
4,127,060
5,398,532
LOSSIE SEAFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 14 -
1
Accounting policies
Company information
Lossie Seafoods Limited is a private company limited by shares incorporated in Scotland. The registered office is 5-13 Low Street, Buckie, Banffshire, AB56 1UX.
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.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 'Statement of Financial Position' - Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Associated Seafoods Limited. These consolidated financial statements are available from its registered office.
1.2
Going concern
The directors are required to prepare the statutory financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. true
In satisfaction of their responsibility, the directors have considered the company's ability to meet its liabilities as they fall due. This assessment considers the company's principal risks and uncertainties and is dependent on a number of factors including financial performance and available financial resources.
Inflationary pressures, high raw material prices and current economic and market conditions have all impacted the company subsequent to the year end. Whilst the company has sought to pass costs on where appropriate to its customers, this has still resulted in a squeeze on margins. Nevertheless, the company continues to manage its working capital and cash flow closely to ensure it maintains sufficient financial resources at all times.
The company has obtained assurances that its ultimate parent will continue to facilitate such financial support as necessary for the development and growth of the company to meet the long term objectives of its investors. The directors have satisfied themselves as to the validity of these assurances and that its ultimate parent entity has the means and authority to provide such funding if it is required.
As a result, the directors are confident that the existing funding facilities and support from our investors will provide sufficient headroom to meet the forecast cash requirements. The directors therefore consider that it is appropriate to prepare the financial statements on the going concern basis.
LOSSIE SEAFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 15 -
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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 when the goods are shipped and title has passed), 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.
Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of 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.
Where the fair value of the net assets acquired exceeds the level of consideration, negative goodwill is recognised. Negative goodwill is presented immediately below any positive goodwill and a sub-total of net goodwill provided on the statement of financial position.
Negative goodwill, up to the fair value of non-monetary assets acquired, is recognised in the profit or loss in the periods in which the non-monetary assets are recovered. Any excess exceeding the fair value of non-monetary assets acquired is recognised in profit or loss in the periods expected to be benefited.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Trademarks & intellectual property
- 20% on cost
1.6
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.
LOSSIE SEAFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 16 -
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
- 2.5% and 4% on cost
Plant and equipment
- 10% on cost
Fixtures and fittings
- 25% on cost
Motor vehicles
- 25% on cost
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.
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
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.
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.
1.9
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.
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.
LOSSIE SEAFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 17 -
1.10
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.
1.11
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.
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.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
LOSSIE SEAFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 18 -
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.12
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.
1.13
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.
LOSSIE SEAFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 19 -
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.
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
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.
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.
1.17
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.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
LOSSIE SEAFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 20 -
1.18
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.
2
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.
Critical judgements and estimates
The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements.
Provisions
Management judgement is involved in evaluating currently available facts based on a broad range of information and prior experience. Inherent uncertainties exist in such evaluations. The liabilities included in the financial statements reflect estimates based on the information available to management at the time of determination of the liability and are reassessed at each reporting date.
Business combinations
There were various estimates and judgements applied in the acquisition of the business, trade and assets from the administrators of Dawnfresh Seafoods Limited and R.R. Spink & Sons (Arbroath) Limited in the prior year. These included:
The estimate of fair values of certain assets and liabilities acquired in the business combination.
The purchase price allocation and classification of directly attributable costs.
The release period for the resulting negative goodwill resulting from the acquisition.
Fair values of assets & liabilities acquired in business combinations were assessed by Management based on their knowledge of the industry and physical conditions of the assets acquired.
The purchase price allocation and classification of directly attributable costs was determined by Management based on their knowledge and experience.
Management assessed the period of release for negative goodwill on a weighted average basis based on the fair values of the underlying assets to which it related.
LOSSIE SEAFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 21 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
81,800,849
55,787,448
Export
10,664,137
9,740,362
92,464,986
65,527,810
2023
2022
£
£
Other revenue
Grants received
1,626
5,856
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
142,134
(48,665)
Government grants
(1,626)
(5,856)
Fees payable to the company's auditor for the audit of the company's financial statements
38,000
33,000
Depreciation of owned tangible fixed assets
1,057,173
877,231
Depreciation of tangible fixed assets held under finance leases
438,081
363,629
Amortisation of intangible assets
4,661
4,028
Release of negative goodwill
(250,626)
(134,689)
Operating lease charges
435,348
235,817
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Production
318
261
Administration and management
84
71
Total
402
332
LOSSIE SEAFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
5
Employees
(Continued)
- 22 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
11,987,307
8,971,697
Social security costs
1,053,826
796,469
Pension costs
389,401
285,047
13,430,534
10,053,213
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
180,243
157,702
Company pension contributions to defined contribution schemes
17,114
15,874
197,357
173,576
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
139,754
130,482
Interest on invoice finance arrangements
365,971
161,230
Interest payable to group undertakings
168,500
82,500
Other finance costs on financial liabilities
12,000
Interest on finance leases and hire purchase contracts
98,874
82,501
773,099
468,713
8
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(15,153)
Deferred tax
Origination and reversal of timing differences
(25,580)
137,023
Adjustment in respect of prior periods
48,487
1,613
Total deferred tax
22,907
138,636
Total tax charge
7,754
138,636
LOSSIE SEAFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
8
Taxation
(Continued)
- 23 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
72,362
435,316
Expected tax charge based on the standard rate of corporation tax in the UK of 22.52% (2022: 19.00%)
16,296
82,710
Tax effect of expenses that are not deductible in determining taxable profit
10,607
5,029
Adjustments in respect of prior years
33,977
1,613
Permanent timing differences
(51,443)
4,227
Re-measurement to deferred tax rate
(1,683)
45,057
Taxation charge for the year
7,754
138,636
9
Intangible fixed assets
Negative goodwill
Trademarks & intellectual property
Total
£
£
£
Cost
At 1 November 2022
(3,509,569)
53,267
(3,456,302)
Additions - internally developed
5,685
5,685
At 31 October 2023
(3,509,569)
58,952
(3,450,617)
Amortisation and impairment
At 1 November 2022
(134,689)
38,795
(95,894)
Amortisation charged for the year
(250,626)
4,661
(245,965)
At 31 October 2023
(385,315)
43,456
(341,859)
Carrying amount
At 31 October 2023
(3,124,254)
15,496
(3,108,758)
At 31 October 2022
(3,374,880)
14,472
(3,360,408)
LOSSIE SEAFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 24 -
10
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2022
13,562,320
10,009,748
617,076
16,840
24,205,984
Additions
867,663
617,525
187,033
46,325
1,718,546
At 31 October 2023
14,429,983
10,627,273
804,109
63,165
25,924,530
Depreciation and impairment
At 1 November 2022
1,978,252
2,737,690
360,400
15,852
5,092,194
Depreciation charged in the year
490,419
859,397
138,200
7,238
1,495,254
At 31 October 2023
2,468,671
3,597,087
498,600
23,090
6,587,448
Carrying amount
At 31 October 2023
11,961,312
7,030,186
305,509
40,075
19,337,082
At 31 October 2022
11,584,068
7,272,058
256,676
988
19,113,790
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and equipment
2,953,890
3,470,367
Certain freehold land and buildings have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.
11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
1
1
12
Subsidiaries
Details of the company's subsidiaries at 31 October 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
R.R. Spink and Sons Limited
5-13 Low Street, Buckie, Moray, United Kingdom, AB56 1UX
Ordinary
100.00
LOSSIE SEAFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 25 -
13
Stocks
2023
2022
£
£
Raw materials and consumables
3,585,429
3,218,001
Finished goods and goods for resale
5,166,106
2,620,913
8,751,535
5,838,914
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
6,580,775
6,569,559
Other debtors
382,864
359,443
Prepayments and accrued income
1,566,237
1,820,041
8,529,876
8,749,043
Trade debtors are subject to invoice finance arrangements.
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
5,475,813
5,089,732
Obligations under finance leases
18
739,246
977,119
Other borrowings
17
4,047,630
2,328,270
Trade creditors
10,904,095
7,973,496
Taxation and social security
319,768
487,252
Government grants
20
11,626
11,626
Other creditors
168,339
147,509
Accruals and deferred income
1,851,970
2,496,988
23,518,487
19,511,992
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
2,178,740
2,543,024
Obligations under finance leases
18
773,281
1,308,372
Government grants
20
26,479
28,105
2,978,500
3,879,501
LOSSIE SEAFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 26 -
17
Loans and overdrafts
2023
2022
£
£
Bank loans
2,433,830
2,745,997
Bank overdrafts
5,220,723
4,886,759
Loans from group undertakings
4,047,630
2,328,270
11,702,183
9,961,026
Payable within one year
9,523,443
7,418,002
Payable after one year
2,178,740
2,543,024
All balances due in respect of invoice finance facilities are included within bank overdrafts and secured over the related debts and a floating charge over other assets.
Bank loans are secured by bond and floating charge, standard security and unlimited guarantee across group companies. These are subject to interest at 2.5% and 3.32% over base and are due for repayment between a period over 5 and 10 years.
Loans from group undertakings are subject to interest at 15% or 0%. All balances are due on demand.
Ranking in respect of all secured debt is dependent on asset category.
18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
739,246
977,119
In two to five years
773,281
1,308,372
1,512,527
2,285,491
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Net obligations under finance leases are secured over the assets to which they relate.
LOSSIE SEAFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 27 -
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
1,797,171
1,423,292
Tax losses
(859,004)
(587,809)
Business combination fair values
1,032,340
1,114,141
Other
(7,811)
(9,835)
1,962,696
1,939,789
2023
Movements in the year:
£
Liability at 1 November 2022
1,939,789
Charge to profit or loss
22,907
Liability at 31 October 2023
1,962,696
20
Government grants
2023
2022
£
£
Arising from government grants
38,105
39,731
Included in the financial statements as follows:
Current liabilities
11,626
11,626
Non-current liabilities
26,479
28,105
38,105
39,731
The company was awarded a grant of £302,878 during 2013 from the Scottish Government for the expansion and relocation of its factory premises. The Scottish Government have the right to repayment of the grant in whole or in part if the company disposes of any equipment or buildings funded by grant funds without the written consent of the Scottish Government for a period of five or ten years respectively from the completion date of the project.
LOSSIE SEAFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 28 -
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
389,401
285,047
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1,232,124
1,232,124
1,232,124
1,232,124
'A' Ordinary of 1p each
52,002
52,002
520
520
1,284,126
1,284,126
1,232,644
1,232,644
Each share is entitled to one vote. There are no restrictions on the distribution of dividends and all shares carry equal rights on return of assets on liquidation. The shares are not redeemable.
LOSSIE SEAFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 29 -
23
Revaluation reserve
2023
2022
£
£
At the beginning of the year
22,239
23,528
Transfer to retained earnings
(1,289)
(1,289)
At the end of the year
20,950
22,239
24
Capital redemption reserve
2023
2022
£
£
At the beginning and end of the year
17,878
17,878
25
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
4,061,163
3,763,194
Profit for the year
64,608
296,680
Transfer from revaluation reserve
1,289
1,289
At the end of the year
4,127,060
4,061,163
26
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
100,208
113,056
Between two and five years
69,291
100,054
169,499
213,110
27
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
LOSSIE SEAFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
27
Related party transactions
(Continued)
- 30 -
Sales
Sales
2023
2022
£
£
Other related parties
186,560
288,550
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
On 1 March 2023, Loch Fyne Oysters Limited became a wholly owned subsidiary within the Associated Seafoods Limited group. Transactions are disclosed above for the period to the date of acquisition.
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Other related parties
-
141,732
28
Ultimate controlling party
The company is a wholly owned subsidiary of Associated Seafoods Limited, a company incorporated in Scotland. Its registered office is Capital Square, 58 Morrison Street, Edinburgh, Scotland, EH3 8BP.
Associated Seafoods Limited's parent is Scottish Seafood Investments Limited, an investment company registered in British Virgin Islands under registration number 2019384. The ultimate parent undertaking of Scottish Seafood Investments Limited is Northern Link Limited, an investment company registered in British Virgin Islands under registration number 580292. The registered office of both entities is 3rd Floor, Yamraj Building, Market Square, PO Box 3175, Road Town, Tortola, British Virgin Islands.
Associated Seafoods Limited is the largest group into which the entity is consolidated. Copies of the group accounts can be obtained publicly from Companies House.
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