IRIS Accounts Production v24.2.0.383 SC126272 Board of Directors 1.1.23 31.12.23 31.12.23 the provision of freezing and cold storage facilities, fish processing, and the provision of fishselling and management services. ++ No significant change in the nature of these activities occurred during the year. true true false true true false false false false true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWhSC1262722022-12-31SC1262722023-12-31SC1262722023-01-012023-12-31SC1262722021-12-31SC1262722022-01-012022-12-31SC1262722022-12-31SC126272ns15:Scotland2023-01-012023-12-31SC126272ns14:PoundSterling2023-01-012023-12-31SC126272ns10:Director12023-01-012023-12-31SC126272ns10:PrivateLimitedCompanyLtd2023-01-012023-12-31SC126272ns10:FRS1022023-01-012023-12-31SC126272ns10:Audited2023-01-012023-12-31SC126272ns10:LargeCompaniesRegimeForDirectorsReport2023-01-012023-12-31SC126272ns10:LargeCompaniesRegimeForAccounts2023-01-012023-12-31SC126272ns10:FullAccounts2023-01-012023-12-31SC126272ns5:JointVenture12023-01-012023-12-31SC12627212023-01-012023-12-31SC126272ns10:OrdinaryShareClass12023-01-012023-12-31SC126272ns10:Director22023-01-012023-12-31SC126272ns10:Director32023-01-012023-12-31SC126272ns10:Director42023-01-012023-12-31SC126272ns10:Director52023-01-012023-12-31SC126272ns10:Director62023-01-012023-12-31SC126272ns10:Director72023-01-012023-12-31SC126272ns10:Director82023-01-012023-12-31SC126272ns10:RegisteredOffice2023-01-012023-12-31SC126272ns5:CurrentFinancialInstruments2023-12-31SC126272ns5:CurrentFinancialInstruments2022-12-31SC126272ns5:ShareCapital2023-12-31SC126272ns5:ShareCapital2022-12-31SC126272ns5:RetainedEarningsAccumulatedLosses2023-12-31SC126272ns5:RetainedEarningsAccumulatedLosses2022-12-31SC126272ns5:ShareCapital2021-12-31SC126272ns5:RetainedEarningsAccumulatedLosses2021-12-31SC126272ns5:RetainedEarningsAccumulatedLosses2022-01-012022-12-31SC126272ns5:RetainedEarningsAccumulatedLosses2023-01-012023-12-31SC126272ns5:NetGoodwill2023-01-012023-12-31SC126272ns5:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-31SC126272ns10:HighestPaidDirector2023-01-012023-12-31SC126272ns10:HighestPaidDirector2022-01-012022-12-31SC126272ns5:OwnedAssets2023-01-012023-12-31SC126272ns5:OwnedAssets2022-01-012022-12-31SC126272112023-01-012023-12-31SC126272112022-01-012022-12-31SC126272122023-01-012023-12-31SC126272122022-01-012022-12-31SC126272ns5:NetGoodwill2022-12-31SC126272ns5:NetGoodwill2023-12-31SC126272ns5:NetGoodwill2022-12-31SC126272ns5:LandBuildings2022-12-31SC126272ns5:LandBuildingsns5:ShortLeaseholdAssets2022-12-31SC126272ns5:PlantMachinery2022-12-31SC126272ns5:LandBuildings2023-01-012023-12-31SC126272ns5:LandBuildingsns5:ShortLeaseholdAssets2023-01-012023-12-31SC126272ns5:PlantMachinery2023-01-012023-12-31SC126272ns5:LandBuildings2023-12-31SC126272ns5:LandBuildingsns5:ShortLeaseholdAssets2023-12-31SC126272ns5:PlantMachinery2023-12-31SC126272ns5:LandBuildings2022-12-31SC126272ns5:LandBuildingsns5:ShortLeaseholdAssets2022-12-31SC126272ns5:PlantMachinery2022-12-31SC126272ns5:FurnitureFittings2022-12-31SC126272ns5:MotorVehicles2022-12-31SC126272ns5:FurnitureFittings2023-01-012023-12-31SC126272ns5:MotorVehicles2023-01-012023-12-31SC126272ns5:FurnitureFittings2023-12-31SC126272ns5:MotorVehicles2023-12-31SC126272ns5:FurnitureFittings2022-12-31SC126272ns5:MotorVehicles2022-12-31SC126272ns5:CostValuation2022-12-31SC126272ns5:Subsidiary12023-01-012023-12-31SC1262721ns5:Subsidiary12023-01-012023-12-31SC126272ns5:JointVenture112023-01-012023-12-31SC126272ns5:WithinOneYearns5:CurrentFinancialInstruments2023-12-31SC126272ns5:WithinOneYearns5:CurrentFinancialInstruments2022-12-31SC126272ns5:DeferredTaxation2022-12-31SC126272ns5:DeferredTaxation2023-01-012023-12-31SC126272ns5:DeferredTaxation2023-12-31SC126272ns10:OrdinaryShareClass12023-12-31SC126272ns5:RetainedEarningsAccumulatedLosses2022-12-31SC126272ns5:OtherRelatedParties2023-01-012023-12-31SC126272ns5:OtherRelatedParties2022-01-012022-12-31SC126272ns5:OtherRelatedParties2023-12-31SC126272ns5:OtherRelatedParties2022-12-31SC12627212023-01-012023-12-31
REGISTERED NUMBER: SC126272 (Scotland)








STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










Page

Company Information 1

Strategic Report 2 to 4

Report of the Directors 5 to 6

Report of the Independent Auditors 7 to 9

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Notes to the Financial Statements 14 to 24


LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: Mr J Buchan
Mr A Buchan
Mr J G Buchan
Mr S W Banks
Miss J Buchan
Mr A J Buchan
Mr W C Buchan


REGISTERED OFFICE: East Quay
The Harbour
Peterhead
Aberdeenshire
AB42 1JF


REGISTERED NUMBER: SC126272 (Scotland)


AUDITORS: Bain Henry Reid
Statutory Auditors
Chartered Accountants
28 Broad Street
Peterhead
Aberdeenshire
AB42 1BY


BANKERS: Lloyds Bank Plc
3-5 Albyn Place
Aberdeen
AB10 1PY

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present their strategic report for the year ended 31 December 2023.

PRINCIPAL ACTIVITIES
The principal activities of the company in the year under review were those of the provision of freezing and cold storage facilities, fish processing, and the provision of fishselling and management services.

No significant change in the nature of these activities occurred during the year.

REVIEW OF BUSINESS
The results for the year and the financial position of the company are shown in the attached financial statements.

Key Performance Indicators
The directors consider the key performance indicators to be as follows:
Movement
2023 2022 %
£'000 £'000

Turnover £82,519 £78,161 5.58
Gross profit £4,203 £5,596 (24.89 )
Earnings before interest, tax and depreciation £2,103 £3,590 (41.42 )

Net assets £9,636 £9,874 0.02


PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the execution of the company's objectives are subject to a number of risks. The key business risks and uncertainties affecting the company relate to fluctuations in market demand for fish products and competition from other fish processing companies. These risks are formally reviewed by the board and processes are put in place to monitor and to mitigate them as far as possible.

FINANCIAL RISK MANAGEMENT
The company's financial instruments comprise borrowings from its parent company and a bank overdraft, cash and short-term deposits, and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to fund the company's operations as well as to manage its working capital, liquidity and invest surplus funds.

The company's operations expose it to a variety of financial risks that include the effects of changes in credit risk, liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and related finance costs. The company does not use derivative financial instruments.

Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department.

Price Risk
The company is exposed to price risk due to normal inflationary increases in the purchase price of the goods and services it purchases in the UK and to fluctuations in the market price of its raw materials. The company has no exposure to equity securities price risk as it holds no listed or other equity investments.

Credit Risk
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual counterparty is subject to a limit, which is reassessed annually by the board.


LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

FINANCIAL RISK MANAGEMENT (CONT'D)
Liquidity Risk
The company actively maintains a mixture of long-term and short-term debt finance that is designed to ensure that the company has sufficient available funds for operations and planned expansions.

Cash Flow Risk
The company has both interest bearing assets and interest bearing liabilities which are subject to variable rates of interest. The directors will revisit the appropriateness of this policy if and when appropriate.

Foreign Currency Risk
The company has exposure to foreign currency risk. The amount of exposure is closely monitored by the board in order to minimise this risk as much as possible.

SECTION 172(1) STATEMENT
As the Board at Lunar Freezing and Cold Storage Company, we have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, in good faith, would be most likely to promote the company's success for the benefit of its members as a whole, and to have regard to long-term effect of our decisions on the company and its stakeholders. This statement addresses the ways in which we as a Board have complied with this responsibility.

Promoting the company's success for its members
Lunar Freezing and Cold Storage Company Limited incorporated in 1990 and is controlled and run by the Buchan family. We are pleased of the way in which, over thirty years, the company has grown and provided employment, training and financial reward for its owners and employees.

We make strategic decisions based on long-term objectives. In particular, this has meant significant investment in capital in both the catching and processing sectors to ensure that we can maintain high quality and offer flexibility to customers. This has been at the expense of short-term gains but positions the company to supply the quality fish products our customers demand over the long term. In doing so our aim is to maximise the company's ability to grow profits and market share whilst returning the highest possible value to shareholders.

Engaging with stakeholders
We act openly in relation to all of our dealings with customers, colleagues, suppliers and third-party contacts and recognise the responsibility that we share with our suppliers to source products in an ethical manner. We want our customers to be confident that people are treated fairly and are neither exploited nor exposed to unsafe working conditions.

Our key stakeholders, and the way in which we engage with them are as follows:

Employees The strength of our business is built on the hard work and dedication of all our employees. Although our processing facilities are highly mechanised, we rely on a skilled team of hand filleters to produce our hand cut products. Our colleagues rely on us to provide stable employment and opportunities to realise their potential in a working environment where they can be at their best. The board takes active steps to ensure that the suggestions, views and interests of the workforce are captured and considered in decision making.

Customers and
suppliers
We continue to invest heavily in innovation and encourage and support continuous improvementsin supplier standards to ensure we can continue to offer customers the best quality products.Our Ethical Trading Policy requires all our suppliers to comply with our ethical code. This procedure sets out the standards that we expect to be in place throughout our supply chain. We seek to develop long term relationships with our suppliers who share our ethical standards.We have built and will maintain a reputation for transparency and fair dealing in our interaction with customers and suppliers.
Regulators We seek to enjoy a constructive and cooperative relationship with the bodies that authorise and regulate our business activities. This helps us maintain a reputation for high standards of business conduct. They expect us to comply with applicable laws, regulations and licence conditions and these are always considered during our decision making


LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Community
and planet
We are a family run business with roots in Peterhead and have invested heavily in our community,providing long term employment in the North East of Scotland.We are active participants in the Responsible Fishing Scheme which enables commercial fishing operations to provide assurance of good working conditions and operational best practices. In sourcing our products from RFS certified vessels our customers can be sure that as well as the care of the catch being a top priority so to is the environment with responsible fishing ensuring healthy oceans and safeguarding supplies for the future.

ON BEHALF OF THE BOARD:





Mr A Buchan - Director


19 September 2024

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors set out in the table below have held office during the whole of the period from 1 January 2023 to the date of this report.

The directors shown below were in office at 31 December 2023 but did not hold any interest in the Ordinary shares of £1 each at 1 January 2023 or 31 December 2023.

Mr J Buchan
Mr A Buchan
Mr J G Buchan
Mr S W Banks
Miss J Buchan
Mr A J Buchan
Mr W C Buchan

EMPLOYEES
The company has a recruitment policy to ensure that all applications for employment, including those made by disabled persons, are given full and fair consideration in light of the applicants’ aptitudes and abilities. There is also an equal opportunities policy to ensure that all employees are treated equally in terms of employment, training, career development and promotion. Where employees develop a disability during their employment, every effort is made to continue their employment and arrange for appropriate training as far as is reasonably practicable.

DISCLOSURE IN THE STRATEGIC REPORT
The company has disclosed matters relating to; future developments, financial risk management, employment, community and supplier relations within the strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 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.

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Bain Henry Reid, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr A Buchan - Director


19 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED


Opinion
We have audited the financial statements of Lunar Freezing & Cold Storage Company Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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 December 2023 and of its loss 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.

Basis for opinion
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 Auditors' 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.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED


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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 directors' 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 Statement of Directors' Responsibilities set out on page five, 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 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.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks applicable to the group, the company and the sector in which they operate. We determined that the following laws and regulations were most significant:

- the Companies Act 2006;
- the various Scottish Government Statutory Instruments relating to food hygiene and health and safety.

We obtained an understanding of how the group and the company has complied with those legal and regulatory frameworks by making enquiries of the management. We corroborated our inquiries through our review of board minutes and enquiries of the group's legal advisors.

Assessing the design and effectiveness of controls management has in place to detect fraud, and understanding how those charged with governance have considered the potential for override of those controls, or other inappropriate influence over the financial reporting process.

We assessed the susceptibly of the company's and the parent group's financial statements to material misstatement, including how fraud might occur.Audit procedures performed during the company's audit included:

- Challenging assumptions and judgements made by management in its significant accounting estimates
- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
- Assessing the extent of compliance with the relevant laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED


Use of our report
This report is made solely to the company's members, as a body, 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 members those matters we are required to state to them in a Report of the Auditors 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 members as a body, for our audit work, for this report, or for the opinions we have formed.




Iain Arthur FCCA (Senior Statutory Auditor)
for and on behalf of Bain Henry Reid
Statutory Auditors
Chartered Accountants
28 Broad Street
Peterhead
Aberdeenshire
AB42 1BY

19 September 2024

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 82,518,847 78,160,927

Cost of sales 78,315,488 72,564,558
GROSS PROFIT 4,203,359 5,596,369

Administrative expenses 4,487,522 4,325,001
(284,163 ) 1,271,368

Other operating income 109,706 129,299
OPERATING (LOSS)/PROFIT 4 (174,457 ) 1,400,667

Interest receivable and similar income 4,057 1,562
(170,400 ) 1,402,229

Interest payable and similar expenses 5 5 4,626
(LOSS)/PROFIT BEFORE TAXATION (170,405 ) 1,397,603

Tax on (loss)/profit 6 67,210 417,294
(LOSS)/PROFIT FOR THE FINANCIAL YEAR (237,615 ) 980,309

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

(LOSS)/PROFIT FOR THE YEAR (237,615 ) 980,309


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE (LOSS)/INCOME
FOR THE YEAR

(237,615

)

980,309

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 - -
Tangible assets 9 20,973,622 19,503,615
Investments 10 240,000 240,000
21,213,622 19,743,615

CURRENT ASSETS
Stocks 11 22,439,764 20,893,119
Debtors 12 40,833,238 42,512,084
Cash at bank and in hand 2,916,531 2,890,859
66,189,533 66,296,062
CREDITORS
Amounts falling due within one year 13 76,268,111 75,248,215
NET CURRENT LIABILITIES (10,078,578 ) (8,952,153 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

11,135,044

10,791,462

PROVISIONS FOR LIABILITIES 15 (966,662 ) (556,245 )

ACCRUALS AND DEFERRED INCOME 16 (532,078 ) (361,298 )
NET ASSETS 9,636,304 9,873,919

CAPITAL AND RESERVES
Called up share capital 17 2 2
Retained earnings 18 9,636,302 9,873,917
SHAREHOLDERS' FUNDS 9,636,304 9,873,919

The financial statements were approved by the Board of Directors and authorised for issue on 19 September 2024 and were signed on its behalf by:





Mr A Buchan - Director


LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 2 8,893,608 8,893,610

Changes in equity
Total comprehensive income - 980,309 980,309
Balance at 31 December 2022 2 9,873,917 9,873,919

Changes in equity
Total comprehensive loss - (237,615 ) (237,615 )
Balance at 31 December 2023 2 9,636,302 9,636,304

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


1. STATUTORY INFORMATION

Lunar Freezing & Cold Storage Company Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006. The financial statements have been prepared on the historic cost basis except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements
The financial statements contain information about Lunar Freezing & Cold Storage Company Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Lunar Fishing Company Limited, East Quay, The Harbour, Peterhead, AB42 1JF.

Significant judgements and estimates
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Impairment of stock on hand
The company's stock on hand comprises of fish for resale which has a finite shelf life and is subject to market conditions due to consumer demand. As a result it is necessary to consider the recoverability of the cost of stock on hand and the associated provisioning required. When calculating any stock impairment, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods.

Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management consider factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Revenue recognition
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.

Sale of goods:
Turnover from the sale of goods represents revenue earned from the sale of wholesale and processed fish products. The sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services:
Turnover from the rendering of services represents revenue earned from the provision of freezing and cold storage, transportation and engineering services. Turnover is recognised in the accounting period in which the services are rendered when the outcome of the contract can be estimated reliably.

Management fees
Management fee income is recognised when the right to receive payment for services rendered is established.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of business in 2001 and 2002, has been written off over its estimated useful life of 10 and 5 years, respectively.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets, other than freehold land, over their estimated useful life or, if held under a finance lease, over the term of the lease, whichever is the shorter. The rates applicable are:

Heritable property- Over 50 years
Leasehold property- Over the term of the lease
Plant and machinery- Over 5 to 10 years
Fixtures and fittings- Over 5 years
Motor vehicles- Over 4 to 8 years

Impairment of assets
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

Stock is also assessed for impairment at each reporting date. The carrying amount is compared with its selling price less costs to complete and sell. If stock is impaired, its carrying amount is reduced to its selling price less costs to complete and sell, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Fixed asset investments
Investments held are stated at cost less accumulated impairment losses.

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Stocks
Stocks have been valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items.

Trade debtors
Trade debtors on normal terms are stated at their nominal value and are assessed for recoverability on an ongoing basis.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
The company's functional and presentation currency is Pound Sterling (£).

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value is determined.

Foreign exchange gains and losses resulting from the settlement of transactions and for the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account.

Leases
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Rentals payable under operating leases are charged to the profit or loss on a straight line basis over the lease term, unless the rental payments are structured to increase in line with expected general inflation, in which case the company recognises annual rent expense equal to amounts owed to the lessor.

The aggregate benefit of lease incentives are recognised as a reduction to the expense recognised over the lease term on a straight line basis.

Employee benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Contributions in respect of the company's defined contribution pension scheme are charged to the profit and loss account for the year in which they are payable to the scheme. Differences between contributions payable and contributions actually paid in the year are shown as either accruals or prepayments at the year end.

Provision for liabilities
Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

The company recognises a provision for annual leave accrued by employees as a result of services rendered in the current period, and which employees are entitled to carry forward and use within the next twelve months. The provision is measured at the salary cost payable for the period of absence.

Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments like loans and other accounts receivable and payable are initially measured at the present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate, or in the case of an outright short term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the net present value of estimated cash flows discounted at the assets original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk to changes in value.

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Going concern
At the time of approving the financial statements the directors have a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future, and therefore continue to adopt the going concern basis of accounting in preparing the financial statements.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 13,834,143 11,619,595
Social security costs 840,843 766,561
Other pension costs 187,045 163,340
14,862,031 12,549,496

The average number of employees during the year was as follows:
2023 2022

Production 198 196
Administration 55 55
253 251

2023 2022
£    £   
Directors' remuneration 302,829 280,813
Directors' pension contributions to money purchase schemes 23,556 21,526

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 195,636 181,017
Pension contributions to money purchase schemes 15,750 14,370

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


4. OPERATING (LOSS)/PROFIT

The operating loss (2022 - operating profit) is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 156,063 162,967
Depreciation - owned assets 2,277,339 2,209,670
Profit on disposal of fixed assets (39,638 ) (19,750 )
Auditors' remuneration 13,000 11,500
Auditors' remuneration for non audit work 7,000 6,000
Operating lease rentals receivable (86,120 ) (86,120 )
(Profit)/Loss on foreign exchange (121,955 ) (104,897 )

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 5 4,626

6. TAXATION

Analysis of the tax charge
The tax charge on the loss for the year was as follows:
2023 2022
£    £   
Current tax:
Group relief payable/ (receivable) (343,207 ) 213,344

Deferred tax 410,417 203,950
Tax on (loss)/profit 67,210 417,294

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
(Loss)/profit before tax (170,405 ) 1,397,603
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 23.521%
(2022 - 19%)

(40,081

)

265,545

Effects of:
Expenses not deductible for tax purposes 4,225 43
Depreciation on non qualifying assets 78,786 61,139

Super deduction allowance - (42,932 )

Change in rate of deferred taxation 24,280 133,499
Total tax charge 67,210 417,294

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


7. PENSION COSTS (DEFINED CONTRIBUTION SCHEME)

The company operates a money purchase (defined contribution) pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £187,045 (2022: £163,339).

8. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 100,003
AMORTISATION
At 1 January 2023
and 31 December 2023 100,003
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 -

9. TANGIBLE FIXED ASSETS
Heritable Leasehold Plant and
property property machinery
£    £    £   
COST
At 1 January 2023 11,870,537 6,879,277 31,264,137
Additions 661,073 - 2,353,631
Disposals - - (60,755 )
At 31 December 2023 12,531,610 6,879,277 33,557,013
DEPRECIATION
At 1 January 2023 3,062,814 2,904,110 25,440,364
Charge for year 248,812 144,504 1,621,776
Eliminated on disposal - - (60,755 )
At 31 December 2023 3,311,626 3,048,614 27,001,385
NET BOOK VALUE
At 31 December 2023 9,219,984 3,830,663 6,555,628
At 31 December 2022 8,807,723 3,975,167 5,823,773

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


9. TANGIBLE FIXED ASSETS - continued

Fixtures
and Motor
fittings vehicles Totals
£    £    £   
COST
At 1 January 2023 243,873 2,555,800 52,813,624
Additions 22,375 754,762 3,791,841
Disposals - (282,059 ) (342,814 )
At 31 December 2023 266,248 3,028,503 56,262,651
DEPRECIATION
At 1 January 2023 243,613 1,659,108 33,310,009
Charge for year 4,604 257,643 2,277,339
Eliminated on disposal - (237,564 ) (298,319 )
At 31 December 2023 248,217 1,679,187 35,289,029
NET BOOK VALUE
At 31 December 2023 18,031 1,349,316 20,973,622
At 31 December 2022 260 896,692 19,503,615

Included in cost of land and buildings is freehold land of £ 91,121 (2022 - £ 91,121 ) which is not depreciated.

10. FIXED ASSET INVESTMENTS
Shares in Interest
group in joint
undertakings venture Totals
£    £    £   
COST
At 1 January 2023
and 31 December 2023 50,000 190,000 240,000
NET BOOK VALUE
At 31 December 2023 50,000 190,000 240,000
At 31 December 2022 50,000 190,000 240,000

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

Scotia Charters Limited
Registered office:
Nature of business: Operation of charter vessel
%
Class of shares: holding
Ordinary £1 50.00

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


10. FIXED ASSET INVESTMENTS - continued

Joint venture

Alisrose Limited
Registered office:
Nature of business: Water Treatment Plant
%
Class of shares: holding
Ordinary £1 20.43

11. STOCKS
2023 2022
£    £   
Stocks 22,439,764 20,893,119

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 11,298,888 11,795,488
Amounts owed by group undertakings 28,132,938 27,001,187
Other debtors 849,438 3,204,396
Prepayments 551,974 511,013
40,833,238 42,512,084

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 3,805,311 2,101,877
Social security and other taxes 354,219 304,221
Amounts owed to group undertakings 71,042,363 72,384,079
Other creditors 1,066,218 458,038
76,268,111 75,248,215

14. LEASING AGREEMENTS
Minimum lease payments under non-cancellable operating leases calculated at present value using a pre-tax discount rate fall due as follows:
2023 2022
£    £   

Within one year 150,546 138,729
Between one and five years 552,967 509,564
In more than five years 2,241,774 2,114,712
2,945,287 2,763,005

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


15. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated Capital Allowances 966,662 556,245

Deferred
tax
£   
Balance at 1 January 2023 556,245
Provided during year 410,417
Balance at 31 December 2023 966,662

16. ACCRUALS AND DEFERRED INCOME
2023 2022
£    £   
Deferred government grants 532,078 361,298

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
2 Ordinary £1 2 2

Each share is entitled to one vote in any circumstances and each share is also entitled pari passu to dividend payments or any other distributions, including distributions arising from a winding up of the company.

18. RESERVES
Retained
earnings
£   

At 1 January 2023 9,873,917
Deficit for the year (237,615 )
At 31 December 2023 9,636,302

Retained earnings
This reserve records all current and prior period retained profit and loss.

LUNAR FREEZING & COLD STORAGE
COMPANY LIMITED (REGISTERED NUMBER: SC126272)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


19. ULTIMATE PARENT COMPANY

The ultimate parent company is Lunar Fishing Company Limited, which owns 100% of the issued share capital of Lunar Freezing & Cold Storage Company Limited. Copies of its accounts can be obtained from the Registrar of Companies, Companies House, 4th Floor, Edinburgh Quay 2, 139 Fountainbridge, Edinburgh, EH3 9FF.

The directors named in the Directors Report attached to these financial statements are shareholders of Lunar Fishing Company Limited, but do not by dint of those holdings exercise a majority holding of the issued share capital or exercise majority voting rights within that company. Other close family members of the Directors hold shares in Lunar Fishing Company Limited. No material interests in any customer or suppliers of Lunar Freezing & Cold Storage Company Limited have been noted for those family members, or for the directors.

20. CAPITAL COMMITMENTS
2023 2022
£    £   
Contracted but not provided for in the
financial statements 764,864 873,541

21. RELATED PARTY DISCLOSURES

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.

Other related parties
2023 2022
£    £   
Purchases 130,579 79,838
Amount due to related party 21,934 7,936

22. POST BALANCE SHEET EVENTS

The financial statements were authorised for issue on 19 September 2024 by the board of directors.

23. ULTIMATE CONTROLLING PARTY

There is no ultimate controlling party.