Company registration number SC119825 (Scotland)
MIGDALE SMOLT LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
PAGES FOR FILING WITH REGISTRAR
A9 Accountancy Limited
Chartered Accountants
Elm House
Cradlehall Business Park
Inverness
United Kingdom
IV2 5GH
MIGDALE SMOLT LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,380,264
606,294
Investment property
5
524,910
631,591
1,905,174
1,237,885
Current assets
Stocks
7
17,559
73,890
Debtors
8
360,337
462,228
Biological assets
6
391,559
641,890
Cash at bank and in hand
2,182,651
2,077,050
2,952,106
3,255,058
Creditors: amounts falling due within one year
9
(517,515)
(514,031)
Net current assets
2,434,591
2,741,027
Total assets less current liabilities
4,339,765
3,978,912
Provisions for liabilities
(133,797)
(55,434)
Net assets
4,205,968
3,923,478
Capital and reserves
Called up share capital
10
49,999
49,999
Profit and loss reserves
4,155,969
3,873,479
Total equity
4,205,968
3,923,478

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

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 8 August 2024 and are signed on its behalf by:
Mr H G Murray
Director
Company Registration No. SC119825
MIGDALE SMOLT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
1
Accounting policies
Company information

Migdale Smolt Limited is a private company limited by shares incorporated in Scotland. The registered office is Ledingham Chalmers LLP, Ord House, Cradlehall Business Park, Inverness, IV2 5GH.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, due to the strength of the balance sheet and the company's ability to generate sufficient cash from its operations, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised 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 and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

The company recognises revenue when:

The amount of revenue can be reliably measured;

it is probable that future economic benefits will flow to the entity;

and specific criteria have been met for each of the company's activities.

 

Turnover for management services is recognised on an accrual basis.

1.4
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:

Freehold land and buildings
5% straight line
Leasehold land and buildings
Straight line over the life of the lease
Plant and equipment
15% reducing balance and 16.5% straight line
Motor vehicles
25% reducing balance

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.

Also included within tangible fixed assets are the following depreciation policies:

Motor vehicles: 25% reducing balance

Leasehold buildings: straight line over the life of the lease

MIGDALE SMOLT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 3 -
1.5
Investment property

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. Changes in fair value are recognised in profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and conditions valued at the lower of cost and 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.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

MIGDALE SMOLT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies 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.

 

1.10
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.

 

Changes in the fair value of derivatives that are designed and qualify as fair value hedges are recogised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.11
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.

 

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.

1.12
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.

1.13
Retirement benefits

The company makes contributions into the personal pension funds of certain directors and employees. Contributions payable are charged to the profit and loss account in the year they are payable.

1.14
Leases
MIGDALE SMOLT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 5 -

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15

Biological assets

The company rears smolts and as a result holds fish as biological assets within current assets.

 

In accordance with FRS 102 these assets are defined as biological assets and are held at the lower of cost and estimated selling price less costs to complete and sell.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Employees

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

2024
2023
Number
Number
Total
18
20
MIGDALE SMOLT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 6 -
4
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Total
£
£
£
Cost
At 1 May 2023
171,124
2,495,210
2,666,334
Additions
533,094
380,613
913,707
Disposals
(8,901)
(119,162)
(128,063)
At 30 April 2024
695,317
2,756,661
3,451,978
Depreciation and impairment
At 1 May 2023
140,693
1,919,347
2,060,040
Depreciation charged in the year
6,307
124,998
131,305
Eliminated in respect of disposals
(6,640)
(112,991)
(119,631)
At 30 April 2024
140,360
1,931,354
2,071,714
Carrying amount
At 30 April 2024
554,957
825,307
1,380,264
At 30 April 2023
30,431
575,863
606,294
5
Investment property
2024
£
Fair value
At 1 May 2023
631,591
Disposals
(106,681)
At 30 April 2024
524,910

Investment property comprises land and buildings. The fair value of the investment property has been arrived at by the directors and is based on the cost of acquiring the assets with no subsequent changes to reflect in fair value deemed necessary. One of the investment properties was sold during the year and has been removed from the total at cost.

6
Biological assets
Smolts
£
Cost
At 1 May 2023
641,891
Change in inventory
(250,332)
At 30 April 2024
391,559
MIGDALE SMOLT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
7
Stocks
2024
2023
£
£
Other inventories
17,559
73,890
8
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
210,953
53,793
Amounts owed by group undertakings
-
0
250,503
Other debtors
149,384
157,932
360,337
462,228
9
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
193,763
405,390
Corporation tax
47,223
13,147
Other taxation and social security
34,890
36,236
Other creditors
241,639
59,258
517,515
514,031
10
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
49,999
49,999
49,999
49,999
11
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Paul Capewell FCA CA
Statutory Auditor:
A9 Accountancy Limited
Date of audit report:
27 August 2024
MIGDALE SMOLT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
12
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
713,060
-
13
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

The company has taken advantage of the exemption with FRS 102 Section 33 paragraph 33.1A, not to disclose transactions entered into between two or more members of the group, as the company is a wholly owned subsidiary of the group to which it is party to the transactions.

14
Directors' transactions

During the year a director purchased a property from the company for £200,000 which was deemed to be the market value at the time of the purchase.

15
Parent company

The immediate and ultimate parent company is Migdale Group Limited (previously Badbea Crofters Limited - changed at Companies House on the 5th August 2024), a company registered in Scotland with a registered office address of Dornoch Road, Bonar Bridge, IV24 3EB. The company is included within the consolidated financial statements of Migdale Group Limited. Copies of group consolidated accounts can be obtained from Companies House, 4th Floor, Edinburgh Quay 2, 139 Fountainbridge, Edinburgh, EH3 9FF.

2024-04-302023-05-01false27 August 2024CCH SoftwareCCH Accounts Production 2024.210No description of principal activityThis audit opinion is unqualifiedMr A M MacKenzieMr H G MurrayG L MurrayG L MurrayLC Secretaries LimitedfalsefalseSC1198252023-05-012024-04-30SC1198252024-04-30SC1198252023-04-30SC119825core:LandBuildingscore:OwnedOrFreeholdAssets2024-04-30SC119825core:PlantMachinery2024-04-30SC119825core:LandBuildingscore:OwnedOrFreeholdAssets2023-04-30SC119825core:PlantMachinery2023-04-30SC119825core:CurrentFinancialInstrumentscore:WithinOneYear2024-04-30SC119825core:CurrentFinancialInstrumentscore:WithinOneYear2023-04-30SC119825core:CurrentFinancialInstruments2024-04-30SC119825core:CurrentFinancialInstruments2023-04-30SC119825core:ShareCapital2024-04-30SC119825core:ShareCapital2023-04-30SC119825core:RetainedEarningsAccumulatedLosses2024-04-30SC119825core:RetainedEarningsAccumulatedLosses2023-04-30SC119825bus:Director22023-05-012024-04-30SC119825core:LandBuildingscore:OwnedOrFreeholdAssets2023-05-012024-04-30SC119825core:LandBuildingscore:LongLeaseholdAssets2023-05-012024-04-30SC119825core:PlantMachinery2023-05-012024-04-30SC119825core:MotorVehicles2023-05-012024-04-30SC1198252022-05-012023-04-30SC119825core:LandBuildingscore:OwnedOrFreeholdAssets2023-04-30SC119825core:PlantMachinery2023-04-30SC1198252023-04-30SC119825core:WithinOneYear2024-04-30SC119825core:WithinOneYear2023-04-30SC119825bus:PrivateLimitedCompanyLtd2023-05-012024-04-30SC119825bus:SmallCompaniesRegimeForAccounts2023-05-012024-04-30SC119825bus:FRS1022023-05-012024-04-30SC119825bus:Audited2023-05-012024-04-30SC119825bus:Director12023-05-012024-04-30SC119825bus:Director32023-05-012024-04-30SC119825bus:Director42023-05-012024-04-30SC119825bus:CompanySecretary12023-05-012024-04-30SC119825bus:FullAccounts2023-05-012024-04-30xbrli:purexbrli:sharesiso4217:GBP