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Company No: SC442507 (Scotland)

DORNOCH DISTILLERY COMPANY LIMITED

UNAUDITED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 29 FEBRUARY 2024
PAGES FOR FILING WITH THE REGISTRAR

DORNOCH DISTILLERY COMPANY LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 29 FEBRUARY 2024

Contents

DORNOCH DISTILLERY COMPANY LIMITED

BALANCE SHEET

AS AT 29 FEBRUARY 2024
DORNOCH DISTILLERY COMPANY LIMITED

BALANCE SHEET (continued)

AS AT 29 FEBRUARY 2024
Note 2024 2023
£ £
Fixed assets
Intangible assets 3 1,428 1,410
Tangible assets 4 404,133 387,806
405,561 389,216
Current assets
Stocks 784,104 770,520
Debtors 5 383,454 398,729
Cash at bank and in hand 96,324 ( 7,309)
1,263,882 1,161,940
Creditors: amounts falling due within one year 6 ( 574,568) ( 635,842)
Net current assets 689,314 526,098
Total assets less current liabilities 1,094,875 915,314
Creditors: amounts falling due after more than one year 7 ( 309,162) ( 231,469)
Provision for liabilities ( 24,686) ( 16,065)
Net assets 761,027 667,780
Capital and reserves
Called-up share capital 8 2 2
Profit and loss account 761,025 667,778
Total shareholder's funds 761,027 667,780

For the financial year ending 29 February 2024 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The financial statements of Dornoch Distillery Company Limited (registered number: SC442507) were approved and authorised for issue by the Board of Directors on 02 October 2024. They were signed on its behalf by:

Simon Thompson
Director
DORNOCH DISTILLERY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 29 FEBRUARY 2024
DORNOCH DISTILLERY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 29 FEBRUARY 2024
1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Dornoch Distillery Company Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in Scotland. The address of the Company's registered office is Dornoch Distillery, Castle Close, Dornoch,IV25 3SD, United Kingdom.

The financial statements have been prepared under the historical cost convention, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.

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.

Revenue from the sale of various distillery spirits 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.

Employee benefits

Short term benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Intangible assets

Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

Computer software 3 years straight line
Trademarks, patents and licences 10 years straight line
Tangible fixed assets

Tangible fixed assets are stated at cost, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings 50 years straight line
not depreciated
Leasehold improvements not depreciated
Plant and machinery 25 % reducing balance
Vehicles 25 % reducing balance
Fixtures and fittings 15 % reducing balance
Computer equipment 3 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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.

Leases

The Company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Profit and Loss Account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Provision is made for obsolete, slow-moving or defective items where appropriate.

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.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and comprise cash in hand and at bank.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

Government grants

Government grants are recognised based on the performance model and are measured at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received.

A grant that specifies performance conditions is recognised in income only when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the grant proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2. Employees

2024 2023
Number Number
Monthly average number of persons employed by the Company during the year, including directors 7 8

3. Intangible assets

Computer software Trademarks, patents
and licences
Total
£ £ £
Cost
At 01 March 2023 2,888 2,890 5,778
Additions 0 320 320
At 29 February 2024 2,888 3,210 6,098
Accumulated amortisation
At 01 March 2023 2,888 1,480 4,368
Charge for the financial year 0 302 302
At 29 February 2024 2,888 1,782 4,670
Net book value
At 29 February 2024 0 1,428 1,428
At 28 February 2023 0 1,410 1,410

4. Tangible assets

Land and buildings Leasehold improve-
ments
Plant and machinery Vehicles Fixtures and fittings Computer equipment Total
£ £ £ £ £ £ £
Cost
At 01 March 2023 203,241 48,949 189,184 111,346 37,344 4,430 594,494
Additions 0 0 8,570 56,865 300 523 66,258
Disposals 0 0 ( 6,155) 0 ( 798) 0 ( 6,953)
At 29 February 2024 203,241 48,949 191,599 168,211 36,846 4,953 653,799
Accumulated depreciation
At 01 March 2023 8,604 2,817 143,486 36,240 11,869 3,672 206,688
Charge for the financial year 2,173 2,817 14,208 24,700 3,821 763 48,482
Disposals 0 0 ( 5,308) 0 ( 196) 0 ( 5,504)
At 29 February 2024 10,777 5,634 152,386 60,940 15,494 4,435 249,666
Net book value
At 29 February 2024 192,464 43,315 39,213 107,271 21,352 518 404,133
At 28 February 2023 194,637 46,132 45,698 75,106 25,475 758 387,806

5. Debtors

2024 2023
£ £
Trade debtors 139,585 223,029
Amounts owed by Parent undertakings 136 0
Other debtors 243,733 175,700
383,454 398,729

6. Creditors: amounts falling due within one year

2024 2023
£ £
Bank loans 55,784 64,032
Trade creditors 124,373 105,627
Taxation and social security 80,948 99,115
Obligations under finance leases and hire purchase contracts 23,579 14,408
Other creditors 289,884 352,660
574,568 635,842

Loans are secured by standard security and bond and floating charge over the assets of the company.

The obligations under hire purchase contracts are secured over the assets which the agreements relate to.

Obligations under hire purchase contracts due within one year, for which security has been given, total £23,579 (2023 - £14,408).

7. Creditors: amounts falling due after more than one year

2024 2023
£ £
Bank loans 251,446 176,872
Obligations under finance leases and hire purchase contracts 42,041 24,782
Other creditors 15,675 29,815
309,162 231,469

Loans are secured by standard security and bond and floating charge over the assets of the company.

The obligations under hire purchase contracts are secured over the assets which the agreements relate to.

Obligations under hire purchase contracts due over one year, for which security has been given, total £42,041 (2023 - £24,782).

8. Called-up share capital

2024 2023
£ £
Allotted, called-up and fully-paid
2 Ordinary shares of £ 1.00 each 2 2

9. Related party transactions

Other related party transactions

2024 2023
£ £
Balance due from Dornoch Castle Hotel Limited 102,603 75,626

The directors Philip and Simon Thomson are both directors in Dornoch Castle Hotel Limited.