Company Registration No. SC044769 (Scotland)
Ardtornish Estate Company Limited
Unaudited financial statements
for the period ended 31 December 2023
Pages for filing with the registrar
Ardtornish Estate Company Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 10
Ardtornish Estate Company Limited
Statement of financial position
As at 31 December 2023
1
31 December 2023
31 March 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
10,207,569
10,383,289
Investment properties
5
5,177,136
4,958,000
Investments
4
30,616
30,616
15,415,321
15,371,905
Current assets
Stock and work in progress
122,260
126,900
Debtors falling due after more than one year
7
167,973
203,259
Debtors falling due within one year
7
1,506,742
1,413,495
Cash at bank and in hand
138,240
4,322,977
1,935,215
6,066,631
Creditors: amounts falling due within one year
8
(1,598,762)
(1,423,934)
Net current assets
336,453
4,642,697
Total assets less current liabilities
15,751,774
20,014,602
Creditors: amounts falling due after more than one year
9
(7,731,741)
(8,418,346)
Provisions for liabilities
10
(2,220,696)
(2,095,506)
Net assets
5,799,337
9,500,750
Capital and reserves
Called up share capital
63,750
75,000
Revaluation reserve
3,713,527
3,713,527
Capital redemption reserve
11,250
Profit and loss reserves
2,010,810
5,712,223
Total equity
5,799,337
9,500,750
Ardtornish Estate Company Limited
Statement of financial position (continued)
As at 31 December 2023
2
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial period 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 period 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 22 September 2024 and are signed on its behalf by:
Hugh Raven
Director
Company Registration No. SC044769
Ardtornish Estate Company Limited
Notes to the financial statements
For the period ended 31 December 2023
3
1
Accounting policies
Company information
Ardtornish Estate Company Limited is a private company limited by shares incorporated in Scotland. The registered office is Morvern, By Oban, Argyllshire, PA80 5UZ.
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 investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Reporting period
The reporting period is shorter than twelve months and covers from 1 April 2023 to the reporting date at 31 December 2023. The comparative period is for the fifteen months to 31 March 2023.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
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.
Ardtornish Estate Company Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
1
Accounting policies (continued)
4
Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:
Land and buildings
0% - 2% per annum straight line basis.
Plant and machinery
5% - 20% per annum reducing balance basis.
Fixtures, fittings and equipment
15% & 25% per annum reducing balance and straight line basis respectively.
Sporting
20% per annum reducing balance basis.
Motor vehicles
25% per annum reducing balance basis.
Hydro
5% - 10% per annum reducing balance basis.
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
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
1.7
Fixed asset investments
Fixed asset investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
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.
Ardtornish Estate Company Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
1
Accounting policies (continued)
5
Basic financial assets
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, 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.
1.11
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.
Ardtornish Estate Company Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
1
Accounting policies (continued)
6
1.12
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 income statement 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 taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted. Deferred tax is not provided on timing differences arising from the revaluation of investment properties where there is no commitment to sell the asset.
1.13
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that 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 reporting end date, 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. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
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.
1.15
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the period they are payable.
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 statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the income statement so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Ardtornish Estate Company Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
1
Accounting policies (continued)
7
1.17
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.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
2023
Number
Number
Total
21
21
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Hydro
Total
£
£
£
£
Cost
At 1 April 2023
3,285,648
1,899,685
11,028,320
16,213,653
Additions
208,575
208,575
Disposals
(62,383)
(62,383)
At 31 December 2023
3,285,648
2,045,877
11,028,320
16,359,845
Depreciation and impairment
At 1 April 2023
467,866
918,986
4,443,512
5,830,364
Depreciation charged in the period
35,756
90,473
246,930
373,159
Eliminated in respect of disposals
(51,247)
(51,247)
At 31 December 2023
503,622
958,212
4,690,442
6,152,276
Carrying amount
At 31 December 2023
2,782,026
1,087,665
6,337,878
10,207,569
At 31 March 2023
2,817,782
980,699
6,584,808
10,383,289
Included in fixed assets are assets under construction of £332,466 (March 2023 - £237,173). The depreciation charge in respect of such assets amount to £nil (March 2023 - £nil).
Ardtornish Estate Company Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
8
4
Fixed asset investments
2023
2023
£
£
Other investments other than loans
30,616
30,616
Fixed asset investments not carried at market value
The investment above relates to the company's holding in The Firm of Ardtornish Farms. The value is based on the original cost of the investment.
5
Investment property
2023
£
Fair value
At 1 April 2023
4,958,000
Additions
219,136
At 31 December 2023
5,177,136
The fair value of investment properties has been arrived at on the basis of a valuation carried out at 31 December 2023 by the board of directors.
6
Financial instruments
2023
2023
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
274,338
399,027
Ardtornish Estate Company Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
9
7
Debtors
2023
2023
Amounts falling due within one year:
£
£
Trade debtors
9,585
8,971
Other debtors
1,497,157
1,404,524
1,506,742
1,413,495
2023
2023
Amounts falling due after more than one year:
£
£
Other debtors
167,973
203,259
Total debtors
1,674,715
1,616,754
8
Creditors: amounts falling due within one year
2023
2023
£
£
Bank loans and overdrafts
896,410
485,938
Trade creditors
323,792
125,448
Corporation tax
106,817
499,027
Other taxation and social security
19,300
39,088
Other creditors
252,443
274,433
1,598,762
1,423,934
9
Creditors: amounts falling due after more than one year
2023
2023
£
£
Bank loans and overdrafts
7,700,929
8,418,346
Other creditors
30,812
7,731,741
8,418,346
Amounts included above which fall due after five years are as follows:
Payable by instalments
1,743,504
2,135,464
Ardtornish Estate Company Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
10
10
Provisions for liabilities
2023
2023
£
£
Movement in provisions
(13,521)
2,320
Provisions brought forward
179,442
177,122
165,921
179,442
Deferred tax liabilities
2,054,775
1,916,064
2,220,696
2,095,506
The provision amount of £165,921 includes £40,921 that relates to an agreement with the Highlands Small Communities' Housing Trust, whereby a payment of £70,000 is due on the termination of a lease of affordable housing owned by Ardtornish Estate Company Limited. The lease agreement is due to terminate on 2 April 2034. The provision is discounted at a rate of 5%.
Also included above is a provision of £80,000 that relates to a commitment to complete a number of roads serving various parts of the estate.
2023-12-312023-04-01falseCCH SoftwareCCH Accounts Production 2023.300No description of principal activityAndrew HamiltonHugh RavenDennis OvertonSusan HitchA MacDonaldfalseSC0447692023-04-012023-12-31SC0447692023-12-31SC0447692023-03-31SC044769core:LandBuildings2023-12-31SC044769core:OtherPropertyPlantEquipment2023-12-31SC044769core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-12-31SC044769core:LandBuildings2023-03-31SC044769core:OtherPropertyPlantEquipment2023-03-31SC044769core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-03-31SC044769core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-31SC044769core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-31SC044769core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-31SC044769core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-31SC044769core:CurrentFinancialInstruments2023-12-31SC044769core:CurrentFinancialInstruments2023-03-31SC044769core:Non-currentFinancialInstruments2023-12-31SC044769core:Non-currentFinancialInstruments2023-03-31SC044769core:ShareCapital2023-12-31SC044769core:ShareCapital2023-03-31SC044769core:RevaluationReserve2023-12-31SC044769core:RevaluationReserve2023-03-31SC044769core:CapitalRedemptionReserve2023-12-31SC044769core:CapitalRedemptionReserve2023-03-31SC044769core:RetainedEarningsAccumulatedLosses2023-12-31SC044769core:RetainedEarningsAccumulatedLosses2023-03-31SC044769bus:Director22023-04-012023-12-31SC044769core:LandBuildingscore:OwnedOrFreeholdAssets2023-04-012023-12-31SC044769core:PlantMachinery2023-04-012023-12-31SC044769core:FurnitureFittings2023-04-012023-12-31SC044769core:ComputerEquipment2023-04-012023-12-31SC044769core:MotorVehicles2023-04-012023-12-31SC0447692022-01-012023-03-31SC044769core:LandBuildings2023-03-31SC044769core:OtherPropertyPlantEquipment2023-03-31SC044769core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-03-31SC0447692023-03-31SC044769core:LandBuildings2023-04-012023-12-31SC044769core:OtherPropertyPlantEquipment2023-04-012023-12-31SC044769core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-04-012023-12-31SC044769core:WithinOneYear2023-12-31SC044769core:WithinOneYear2023-03-31SC044769core:AfterOneYear2023-12-31SC044769core:AfterOneYear2023-03-31SC044769bus:PrivateLimitedCompanyLtd2023-04-012023-12-31SC044769bus:SmallCompaniesRegimeForAccounts2023-04-012023-12-31SC044769bus:FRS1022023-04-012023-12-31SC044769bus:AuditExemptWithAccountantsReport2023-04-012023-12-31SC044769bus:Director12023-04-012023-12-31SC044769bus:Director32023-04-012023-12-31SC044769bus:Director42023-04-012023-12-31SC044769bus:Director52023-04-012023-12-31SC044769bus:FullAccounts2023-04-012023-12-31xbrli:purexbrli:sharesiso4217:GBP