Company Registration No. SC184241 (Scotland)
LAESO FISH LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
LAESO FISH LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
LAESO FISH LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
725,971
816,872
Current assets
Stocks
1,974,012
426,122
Debtors
5
1,654,607
1,552,253
Cash at bank and in hand
172,852
484,429
3,801,471
2,462,804
Creditors: amounts falling due within one year
6
(4,953,907)
(2,358,625)
Net current (liabilities)/assets
(1,152,436)
104,179
Total assets less current liabilities
(426,465)
921,051
Creditors: amounts falling due after more than one year
7
(133,366)
(153,010)
Net (liabilities)/assets
(559,831)
768,041
Capital and reserves
Called up share capital
9
3,600,000
3,600,000
Share premium account
10
1,150,000
1,150,000
Profit and loss reserves
11
(5,309,831)
(3,981,959)
Total (deficit)/equity
(559,831)
768,041
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 25 April 2024 and are signed on its behalf by:
Bjarne Kronborg
Director
Company Registration No. SC184241
LAESO FISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Laeso Fish Limited is a private company limited by shares domiciled and incorporated in Scotland. The registered office is 14 Carden Place, Aberdeen, AB10 1UR. The company's place of business is Damhead Circle, Peterhead, AB42 3GX.
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 pound (£).
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company's results are included in the consolidated financial statements of A/S Laeso Fiskeindustri, the parent company, which are intended to show a true and fair view. Copies of the consolidated financial statements can be obtained from A/S Laeso Fiskeindustri, Osterby Havn, Denmark.
1.2
Going concern
The company has reported a loss before tax of £1.3m (2022: loss of £22k). At the balance sheet date, the company had net current liabilities of £1.2m (2022: net current assets of £0.1m) and net liabilities of £0.6m (2022: net assets of £0.8m). Included within current liabilities are banking facilities of £4.4m (2022: £1.8m) which have a renewal date of 1 July 2025.true
The banking facilities are provided through the parent company A/S Laeso Fiskeindustri and the continued availability of these are critical to the company’s going concern applicability. The directors have prepared financial forecasts for the company, with wider group financial forecasts being available, which demonstrate that generally, the group can operate within the available banking facilities. A small number of months over the forecast period have been identified for which the group banking facilities are not forecast to be sufficient for the funding requirements, however both the group and company directors have demonstrated alternative sources of finance that are sufficient to address any forecast funding shortfalls. The directors acknowledge that inherent within the financial forecasts, is a level of judgement and estimation uncertainty particularly around prawn catch volumes which have the most significant impact on the financial forecasts. We have based these on predictions from sales agents and are confident in the robustness of the resulting forecasts. The directors will continue to track actual financial performance to forecast on an ongoing basis, so that good financial governance can be displayed at all times.
Therefore, at the time of approving these financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least a period of 12 months following the approval of these financial statements. Thus, the directors continue to adopt the going concern basis of accounting in preparing these financial statements.
1.3
Turnover
Turnover represents net sales of processed fish, excluding value added tax and is recognised in the financial statements when the company has received the right to consideration. The company obtains the right to consideration on the despatch of the goods.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
LAESO FISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Land and buildings freehold
- 4% on cost
Plant and machinery
- 10%-33% 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.
1.5
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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
Impairment of financial assets
Financial assets 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. The impairment loss is recognised in profit and loss.
LAESO FISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
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.
1.9
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.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
LAESO FISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.12
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.
The Government grants received in relation to the Scottish Seafood Business Resilience Fund are recognised as other operating income in the profit and loss account in the period to which the grants relate.
1.13
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
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
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Going concern
The going concern assessment, together with associated assumptions, is a judgement exercised by management. This assessment is summarised in note 1.2.
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.
Stock valuation and impairment
The directors have valued stock at the lower of cost and net realisable value. The directors exercise judgement in estimating the direct costs of production to stock, the selling prices of products and any related impairment. Stock carrying value at year end totalled £2,035,261 (2022 - £426,122).
LAESO FISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
50
45
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
1,668,682
2,692,897
4,361,579
Additions
6,900
47,371
54,271
Disposals
(7,963)
(174,415)
(182,378)
At 31 December 2023
1,667,619
2,565,853
4,233,472
Depreciation and impairment
At 1 January 2023
1,062,148
2,482,559
3,544,707
Depreciation charged in the year
67,010
55,592
122,602
Eliminated in respect of disposals
(4,597)
(155,211)
(159,808)
At 31 December 2023
1,124,561
2,382,940
3,507,501
Carrying amount
At 31 December 2023
543,058
182,913
725,971
At 31 December 2022
606,534
210,338
816,872
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
192,063
142,689
Amounts owed by group undertakings
639,711
506,950
Other debtors
822,833
850,823
1,654,607
1,500,462
Deferred tax asset
51,791
1,654,607
1,552,253
Amounts due from group undertakings are interest free and repayable on demand.
LAESO FISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
4,448,077
1,773,949
Trade creditors
181,816
352,207
Amounts owed to group undertakings
238,328
152,676
Taxation and social security
35,117
24,107
Other creditors
50,569
55,686
4,953,907
2,358,625
The interest rate on the bank overdraft was 4.7% for quarters one, two and four of the year. For the third quarter, the interest rate on the bank overdraft was 5.6%. Balance is repayable on demand.
Interest rate on amounts owed to group undertakings is the same interest rates as the bank overdraft facility. Amounts owed to group undertakings are repayable on demand.
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Government grants
133,366
153,010
8
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
4,448,077
1,773,949
Payable within one year
4,448,077
1,773,949
The interest rate on the bank overdraft was 4.7% for quarters one, two and four of the year. For the third quarter, the interest rate on the bank overdraft was 5.6%.
The company's bankers hold standard security and a floating charge over all the assets of the company. The company's bankers also hold a guarantee from the parent company and the parent company holds a guarantee from Laeso Fish Limited against all company debts. The total amount of debt that is secured is £4,718,015 (2022 - £1,848,298).
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
3,600,000
3,600,000
3,600,000
3,600,000
The company has one class of ordinary shares which carry a right to vote and no right to fixed income.
LAESO FISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
10
Share premium account
Share premium account is made up of premiums paid on historical share issues, above the nominal value of the shares.
11
Profit and loss reserves
The profit and loss reserve consists of the company's accumulated profits and losses.
12
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.
The senior statutory auditor was Stephen McIlwaine and the auditor was Johnston Carmichael LLP.
13
Financial commitments, guarantees and contingent liabilities
At 31 December 2023 the Company's bankers held the following guarantees in favour of the Company's suppliers:
£50,000 (2022: £50,000) in favour of the Denhold Fishselling Ltd.
£250,000 (2022: £250,000) in favour of The Fraserburgh Fishsalesmen's Association.
£80,000 (2022: £80,000) in favour of Peterhead Fishsalesmen's Association.
£40,000 (2022: £40,000) in favour of Bank of Scotland.
14
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of tangible fixed assets
40,524
-
LAESO FISH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
15
Related party transactions
Transactions with related parties
Other information
The company has taken advantage of the exemption available in Section 33 of FRS102 'Related Party Disclosures' not to disclose transaction entered between companies wholly owned within the group. The company had no related party transactions transacted outside normal market conditions.
16
Ultimate controlling party
The ultimate parent company is A/S Laeso Fiskeindustri, a company registered in Denmark. Copies of the financial statements can be obtained from A/S Laeso Fiskeindustri, Osterby Havn, Denmark.
There is no party with ultimate control through their shareholding in the parent company.