Company registration number SC372531 (Scotland)
Lows Orkney Limited
unaudited financial statements
for the year ended 29 February 2024
Pages for filing with Registrar
Lows Orkney Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 11
Lows Orkney Limited
Balance sheet
as at 29 February 2024
- 1 -
29 February 2024
28 February 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
5
691,050
668,432
Investments
6
64
64
691,114
668,496
Current assets
Debtors
7
355,678
518,139
Cash at bank and in hand
687,070
604,491
1,042,748
1,122,630
Creditors: amounts falling due within one year
8
(675,005)
(604,033)
Net current assets
367,743
518,597
Total assets less current liabilities
1,058,857
1,187,093
Creditors: amounts falling due after more than one year
9
(140,493)
(163,782)
Provisions for liabilities
(29,065)
(22,457)
Net assets
889,299
1,000,854
Capital and reserves
Called up share capital
11
850
850
Share premium account
12
9,666
9,666
Capital redemption reserve
12
350
350
Profit and loss reserves
12
878,433
989,988
Total equity
889,299
1,000,854

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 29 February 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the 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.

Lows Orkney Limited
Balance sheet (continued)
as at 29 February 2024
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 8 August 2024 and are signed on its behalf by:
C M Smith
Director
Company Registration No. SC372531
Lows Orkney Limited
Notes to the financial statements
for the year ended 29 February 2024
- 3 -
1
Accounting policies
Company information

Lows Orkney Limited is a private company limited by shares incorporated in Scotland. The registered office is 5 Broad Street, Kirkwall, Orkney, KW15 1DH.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

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

1.3
Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

 

 

 

 

 

Lows Orkney Limited
Notes to the financial statements (continued)
for the year ended 29 February 2024
1
Accounting policies (continued)
- 4 -
1.4
Intangible fixed assets - goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Profit & Loss Account over its useful economic life.

 

Amortisation is provided at the following rates:

 

Goodwill     -     10 years

1.5
Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated

depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using both the straight line method and on a reducing balance basis.

 

Freehold property
no depreciation
Leasehold improvements
4% on cost
Equipment, fixtures and fittngs
25% on reducing balance
Computer equipment
20% on cost
Motor vehicles
25% on reducing balance & 33% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

 

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Profit & Loss Account.

 

The non depreciation of freehold property is a departure from the requirements of section 1A of FRS 102. The directors believe it is appropriate not to depreciate freehold property as they believe the property will only increase in value and therefore depreciation should not be applied.

1.6
Fixed asset investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 

Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Profit & Loss Account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 

1.7
Borrowing costs

All borrowing costs are recognised in the Statement of Income and Retained Earnings in the year in which they are incurred.

Lows Orkney Limited
Notes to the financial statements (continued)
for the year ended 29 February 2024
1
Accounting policies (continued)
- 5 -
1.8
Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.10
Taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Profit & Loss Account except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

Lows Orkney Limited
Notes to the financial statements (continued)
for the year ended 29 February 2024
1
Accounting policies (continued)
- 6 -
Current tax

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

Deferred tax

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

 

 

 

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

1.11
Provisions

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

 

Provisions are charged as an expense to the Profit & Loss Account in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

 

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

1.12
Retirement benefits

The company contributes to a pension fund for its employees and directors.

 

The contributions are recognised as an expense in the Profit & Loss Account when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet.

1.13

Interest income

Interest income is recognised in the Profit & Loss Account using the effective interest method.

1.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

1.15

Finance costs

Finance costs are charged to the Profit & Loss Account over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Lows Orkney Limited
Notes to the financial statements (continued)
for the year ended 29 February 2024
- 7 -
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.

3
Employees

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

2024
2023
Number
Number
Total
27
27
4
Intangible fixed assets
Goodwill
£
Cost
At 1 March 2023 and 29 February 2024
1,000,000
Amortisation and impairment
At 1 March 2023 and 29 February 2024
1,000,000
Carrying amount
At 29 February 2024
-
0
At 28 February 2023
-
0
Lows Orkney Limited
Notes to the financial statements (continued)
for the year ended 29 February 2024
- 8 -
5
Tangible fixed assets
Freehold property
Leasehold improvements
Equipment, fixtures and fittngs
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2023
530,000
151,198
69,831
92,908
97,017
940,954
Additions
-
0
-
0
6,330
61,207
-
0
67,537
Disposals
-
0
-
0
-
0
(2,232)
-
0
(2,232)
At 29 February 2024
530,000
151,198
76,161
151,883
97,017
1,006,259
Depreciation and impairment
At 1 March 2023
-
0
96,767
68,554
68,550
38,651
272,522
Depreciation charged in the year
-
0
6,048
1,904
21,793
15,024
44,769
Eliminated in respect of disposals
-
0
-
0
-
0
(2,082)
-
0
(2,082)
At 29 February 2024
-
0
102,815
70,458
88,261
53,675
315,209
Carrying amount
At 29 February 2024
530,000
48,383
5,703
63,622
43,342
691,050
At 28 February 2023
530,000
54,431
1,277
24,358
58,366
668,432
6
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
64
64

The company's investments, at balance sheet date, comprise the following;

 

1. Lows Orkney Trustees Limited - The company is dormant. Lows Orkney Limited own 100% of £1 share capital.

2. Orkney Auction Mart Limited

7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
159,442
275,035
Amounts recoverable on contracts
108,000
167,000
Other debtors
36,394
35,431
Prepayments and accrued income
51,842
40,673
355,678
518,139
Lows Orkney Limited
Notes to the financial statements (continued)
for the year ended 29 February 2024
- 9 -
8
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
15,000
15,000
Other loans
6,864
6,864
Corporation tax
189,166
163,606
Other taxation and social security
104,198
143,678
Other creditors
250,900
215,432
Accruals and deferred income
108,877
59,453
675,005
604,033

The bank loans are secured by a fixed charge over one of the properties of the company.

9
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
135,917
152,342
Other loans
4,576
11,440
140,493
163,782

The bank loans are secured by a fixed charge over one of the properties of the company.

Lows Orkney Limited
Notes to the financial statements (continued)
for the year ended 29 February 2024
- 10 -
10
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
At beginning of year
22,457
15,930
Charged to profit or loss
6,608
6,527
29,065
22,457
11
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.1p each
250,000
250,000
250
250
A non-voting ordinary shares of 0.1p each
120,000
120,000
120
120
B non-voting ordinary shares of 0.1p each
120,000
120,000
120
120
C non-voting ordinary shares of 0.1p each
120,000
120,000
120
120
E non-voting ordinary shares of 0.1p each
120,000
120,000
120
120
F non-voting ordinary shares of 0.1p each
120,000
120,000
120
120
850,000
850,000
850
850

 

12
Reserves
Share premium

The share premium account has arisen on the sale of shares in excess of the par value and is a non-distributable reserve.

Capital redemption reserve

The capital redemption reserve has arisen on the purchase of the company’s own shares and is a non-distributable reserve.

Profit and loss account

The profit and loss account includes all current and prior year profit and losses.

Lows Orkney Limited
Notes to the financial statements (continued)
for the year ended 29 February 2024
- 11 -
13
Pension commitments

The company contributes to a pension fund for its employees and directors. The pension cost and charge represents contributions payable by the company to the pension fund and amounted to £78,574 (2023: £26,368). At the year end contributions of £Nil (2023: £Nil) remained due to the fund.

14
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2024
2023
£
£
Within one year
46,806
38,039
Between two and five years
142,713
78,426
189,519
116,465
15
Contingent asset

A contingent asset existed at the year-end in relation to the sale of the IFA division. 80% of the total consideration was received during the year. The remaining 20% (£32,533) is subject to specific conditions being met. On this basis, the remaining income and the corresponding debtor have not been recognised in the 2024 year-end accounts.

16
Related party transactions
Transactions with related parties

At the year-end sums were due to the following directors:

2024
2023
£
£
D J M Fairnie
-
212
E J Thomson
22,515
120
D M N Hill
43,066
46,247
E T C Nicolson
62,868
53,531
E J Penny
48,000
73,678
C M Smith
72,187
40,684
248,636
214,472

The sums are interest free and repayable on demand.

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