Company registration number 4068813 (England and Wales)
SEASALTER (WALNEY) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
PAGES FOR FILING WITH REGISTRAR
SEASALTER (WALNEY) LIMITED
COMPANY INFORMATION
Directors
Mr K Thompson
Mr V West
(Appointed 19 June 2023)
Company number
4068813
Registered office
The Old Gravel Works
South Walney Island
Barrow-In-Furness
Cumbria
United Kingdom
LA14 3YQ
Auditor
Azets Audit Services
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
SEASALTER (WALNEY) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
SEASALTER (WALNEY) LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
51,900
71,513
Current assets
Stocks
6
315,507
292,948
Debtors
7
59,260
100,221
Investments
8
50
50
Cash at bank and in hand
489
374,817
393,708
Creditors: amounts falling due within one year
9
(1,482,399)
(1,240,909)
Net current liabilities
(1,107,582)
(847,201)
Net liabilities
(1,055,682)
(775,688)
Capital and reserves
Called up share capital
2
2
Other reserves
296,366
296,366
Profit and loss reserves
10
(1,352,050)
(1,072,056)
Total equity
(1,055,682)
(775,688)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
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. 4068813
SEASALTER (WALNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
1
Accounting policies
Company information
Seasalter (Walney) Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Old Gravel Works, South Walney Island, Barrow-In-Furness, Cumbria, United Kingdom, LA14 3YQ.
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.
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 this 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, access to funding and the continued support of its parent company.
The current and future financial position of the company, its cash flows and liquidity have been reviewed by the directors. The company meets its day to day working capital requirements through operating cash flows and inter-company funding from its parent company, Loch Fyne Oysters Limited.
During the year, Loch Fyne Oysters Limited became part of the Associated Seafoods Limited Group. Associated Seafoods Limited also received £4.2m in funding from related parties to support the integration and development of the business.
Further to this, the directors have obtained assurances that Associated Seafoods Limited will provide such financial support as necessary to facilitate 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 Associated Seafoods Limited has the means and authority to provide such funding as and when it is required. Following these assurances, the directors are confident that there is sufficient headroom to meet the forecast cash requirements.
It is acknowledged that had such funding and assurances not been secured then a material uncertainty would exist which may cast doubt over the company’s ability to continue as a going concern and therefore its ability to realise its assets and discharge its liabilities in the normal course of business. However, on the basis of the funding and assurances received, no such uncertainty exists.
Taking all of the above into consideration, the directors believe that it is appropriate to prepare the financial statements on the going concern basis.
SEASALTER (WALNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 3 -
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 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
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
Not depreciated
Leasehold land and buildings
10% on cost
Plant and machinery
25% on reducing balance
Fixtures and fittings
25% on cost
Computer equipment
25% on cost
Motor vehicles
25% on reducing balance
Freehold land and buildings is not depreciated.
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
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.
SEASALTER (WALNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 4 -
1.6
Stocks
All stocks relate to biological assets.
Biological assets are measured under the cost method at the lower of cost and selling price less costs to sell, after making due allowance for obsolete and slow moving items. Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.
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.
1.7
Cash at bank and in hand
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.
1.8
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.
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.
SEASALTER (WALNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 5 -
1.9
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.10
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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
SEASALTER (WALNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 6 -
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Valuation and existence of biological assets
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of biological assets 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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 8 (2022 - 9).
2023
2022
Number
Number
Total
8
9
4
Directors' remuneration
2023
2022
£
£
Remuneration paid to directors
70,575
65,404
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).
SEASALTER (WALNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 November 2022 and 31 October 2023
45,501
451,634
497,135
Depreciation and impairment
At 1 November 2022
13,495
412,127
425,622
Depreciation charged in the year
1,657
17,956
19,613
At 31 October 2023
15,152
430,083
445,235
Carrying amount
At 31 October 2023
30,349
21,551
51,900
At 31 October 2022
32,006
39,507
71,513
6
Stocks
2023
2022
£
£
Oyster stocks
315,507
292,948
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
37,811
73,199
Other debtors
21,449
27,022
59,260
100,221
8
Current asset investments
2023
2022
£
£
Other investments
50
50
SEASALTER (WALNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
9
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
636
Trade creditors
21,293
75,374
Amounts owed to group undertakings
1,376,429
1,065,836
Taxation and social security
53,201
38,137
Other creditors
30,840
61,562
1,482,399
1,240,909
10
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
(1,072,056)
(942,661)
Loss for the year
(279,994)
(129,395)
At the end of the year
(1,352,050)
(1,072,056)
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Alan Brown
Statutory Auditor:
Azets Audit Services
12
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
13,908
34,801
SEASALTER (WALNEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
13
Related party transactions
Transactions with related parties
Sales
Sales
2023
2022
£
£
Entities with control, joint control or significant influence over the company
91,833
191,876
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
1,376,429
1,089,066
Key management personnel
-
13,765
The following amounts were outstanding at the reporting end date:
Other information
All related party balances are interest free and due on demand.
14
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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