Company registration number SC459925
CORRIMONY FARM LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
CORRIMONY FARM LIMITED
CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 11
CORRIMONY FARM LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
34,190
34,190
Tangible assets
4
1,669,796
1,698,909
Herd
5
220,522
224,670
Investments
6
300
300
1,924,808
1,958,069
Current assets
Stocks
162,130
227,293
Debtors
7
181,656
122,810
Cash at bank and in hand
121,716
101,533
465,502
451,636
Creditors: amounts falling due within one year
8
(644,138)
(681,838)
Net current liabilities
(178,636)
(230,202)
Total assets less current liabilities
1,746,172
1,727,867
Creditors: amounts falling due after more than one year
9
(930,405)
(927,259)
Provisions for liabilities
12
(51,723)
(60,264)
Net assets
764,044
740,344
Capital and reserves
Allotted, called up and fully paid share capital
100
100
Profit and loss reserves
763,944
740,244
Total equity
764,044
740,344
CORRIMONY FARM LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
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 31 December 2023 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.
The financial statements were approved by the board of directors and authorised for issue on 13 September 2024 and are signed on its behalf by:
Mr D B Girvan
Director
Company Registration No. SC459925
CORRIMONY FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
Corrimony Farm Limited is a private company limited by shares incorporated in Scotland. The registered office is Redwood, 19 Culduthel Road, Inverness, IV2 4AA.
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].
1.2
Going concern
At the balance sheet date, the company had net current liabilities totalling £178,636 (2022 - £230,202). However, the directors have confirmed that they will ensure that adequate funds will be made available to meet third party liabilities as they fall due. On this basis they consider it appropriate to prepare the financial statements on a going concern basis.
1.3
Turnover
Turnover represents net invoiced sales of good and services rendered, arising from the business of farming, excluding value added tax, during the year, along with income from government support schemes. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer and the amount of revenue can be reliably measured. Revenue from government support schemes is recognised when received.
1.4
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.
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:
Basic payment scheme entitlements
not amortised
CORRIMONY FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 4 -
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Property
Not depreciated
Biomass Heating System
10% on reducing balance
Hydro Scheme
Not depreciated
Plant and equipment
25% on reducing balance
Tractors
25% on reducing balance
Office equipment
33% on cost
Motor vehicles
25% on reducing balance
Assets in the course of construction are 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.
1.6
Biological assets
Biological assets are recognised only when three recognition criteria have been fulfilled:
the entity has control over the asset as a result of past events;
it is probable that future economic benefits associated with the asset will flow to the entity; and
the fair value or cost of the asset can be measured reliably.
The breeding animals of the company are accounted for under the herd basis. It is valued at the initial purchase price, and is not revalued each year. Any increase in the herd size is treated as an addition to the herd asset. These additions to the herd are incorporated at cost at that point in time. The herd stock is accounted for in accordance with HM Revenue and Customs herd basis rules.
1.7
Fixed asset investments
Fixed asset investments are stated at fair value, which, for unlisted investments, is taken to equate to cost.
CORRIMONY FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 5 -
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
Livestock is valued by the directors in line with HM Revenue and Customs guidance and industry averages. Crop values comprise direct costs plus attributable overheads. Other stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
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.
CORRIMONY FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 6 -
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.
1.12
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.
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.
CORRIMONY FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 7 -
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
4
4
3
Intangible fixed assets
Basic payment scheme entitlements
£
Cost
At 1 January 2023 and 31 December 2023
34,190
Amortisation and impairment
At 1 January 2023 and 31 December 2023
Carrying amount
At 31 December 2023
34,190
At 31 December 2022
34,190
CORRIMONY FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
4
Tangible fixed assets
Property
Biomass Heating System
Hydro Scheme
Assets under construction
Plant and equipment
Tractors
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
£
£
£
Cost
At 1 January 2023
1,399,357
142,974
58,496
258,872
60,842
2,486
81,032
2,004,059
Additions
5,050
25,155
1,725
31,930
Disposals
(6,500)
(6,500)
At 31 December 2023
1,399,357
142,974
58,496
5,050
277,527
60,842
4,211
81,032
2,029,489
Depreciation and impairment
At 1 January 2023
87,583
139,711
42,334
829
34,693
305,150
Depreciation charged in the year
5,539
34,233
4,627
1,403
11,585
57,387
Eliminated in respect of disposals
(2,844)
(2,844)
At 31 December 2023
93,122
171,100
46,961
2,232
46,278
359,693
Carrying amount
At 31 December 2023
1,399,357
49,852
58,496
5,050
106,427
13,881
1,979
34,754
1,669,796
At 31 December 2022
1,399,357
55,391
58,496
119,161
18,508
1,657
46,339
1,698,909
CORRIMONY FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
5
Herd
Cattle
Sheep
Total
£
£
£
At 1 January 2023
164,650
60,020
224,670
Additions
42,000
42,000
Disposals
(46,148)
(46,148)
At 31 December 2023
206,650
13,872
220,522
6
Fixed asset investments
2023
2022
£
£
Other investments other than loans
300
300
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
5,251
12,664
Other debtors
176,405
110,146
181,656
122,810
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
55,555
55,565
Trade creditors
22,839
25,084
Taxation and social security
12,541
19,438
Other creditors
553,203
581,751
644,138
681,838
9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
930,405
922,392
Other creditors
4,867
930,405
927,259
CORRIMONY FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
10
Loans and overdrafts
2023
2022
£
£
Bank loans
985,960
977,957
Payable within one year
55,555
55,565
Payable after one year
930,405
922,392
Bank loans are secured by a bond and floating charge over all the assets of the company.
11
Hire purchase and finance lease obligations
2023
2022
Future minimum lease payments due under hire purchase contracts
£
£
Within one year
4,867
7,301
In two to five years
4,867
4,867
12,168
Hire purchase and finance lease obligations are secured over the assets to which they relate.
12
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
13
51,723
60,264
13
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
51,723
60,264
2023
Movements in the year:
£
Liability at 1 January 2023
60,264
Credit to profit or loss
(8,541)
Liability at 31 December 2023
51,723
CORRIMONY FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
14
Related party transactions
Included in other creditors at the balance sheet date is an amount owed to the directors of £533,096 (2022 - £551,826). This loan is unsecured, interest free and has no fixed terms of repayment.
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