Company registration number SC070193 (Scotland)
NEW FINDHORN DIRECTIONS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
NEW FINDHORN DIRECTIONS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
NEW FINDHORN DIRECTIONS LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,221,697
1,263,432
Investments
5
63,001
63,001
1,284,698
1,326,433
Current assets
Debtors
6
73,437
48,681
Cash at bank and in hand
139,175
239,339
212,612
288,020
Creditors: amounts falling due within one year
7
(402,664)
(332,221)
Net current liabilities
(190,052)
(44,201)
Total assets less current liabilities
1,094,646
1,282,232
Creditors: amounts falling due after more than one year
8
(679,186)
(719,710)
Provisions for liabilities
(38,801)
(44,479)
Net assets
376,659
518,043
Capital and reserves
Called up share capital
9
2
2
Capital redemption reserve
96,516
96,516
Profit and loss reserves
280,141
421,525
Total equity
376,659
518,043
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 7 October 2024 and are signed on its behalf by:
Timothy Slack
Director
Company Registration No. SC070193
NEW FINDHORN DIRECTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
New Findhorn Directions Limited is a private company limited by shares incorporated in Scotland. The registered office is The Park, Findhorn, Forres, IV36 3TY.
1.1
Reporting period
During the prior period the directors agreed to extend the company's accounting reference date to 31st March. Consequently, the comparative figures cover the 14 month period from 1 February 2021 to 31st March 2022. The current year figures are for the year ended 31st March 2023.
1.2
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.
1.3
Going concern
The company is reporting a positive cash position at the balance sheet date, however, has net current liabilities of £190k following a routine distribution of funds to the parent charity during the year.
The Directors and management have prepared financial forecasts to March 2026 taking into consideration what they consider to be downside scenarios, whilst considering the overall funding requirements over a longer period. These financial forecasts, whilst by their very nature uncertain, demonstrate that the company is anticipated to operate within its current bank facilities, whilst meeting all liabilities as they fall due. The company also has support from the parent charity should additional short-term funding be required and has a letter of undertaking from the parent charity to that effect. The parent charity currently has cash reserves of £180k but is in the process of selling 5 properties which should realise funds of approximately £800k in excess of loans secured over those properties and other loans of the charity. The parent company charity has accepted offers for 3 properties and expects to have cash reserves in the next few weeks.
The trustees of the ultimate parent charity (Findhorn Foundation) are in the process of winding down the Trust with the current intention of transferring the shares in New Findhorn Directions Ltd to another community organisation. The trustees have no plans at this time which would impede New Findhorn Directions Ltd ability to run Findhorn Bay Holiday Park on the land currently used.
While the parent charity is going through a process of winding down and transferring residual assets to community organisations, the company will continue to trade in its current form. The ownership of the company will be transferred at the appropriate time. The directors of the company therefore believe that the going concern basis is the appropriate basis for the preparation of its accounts.
NEW FINDHORN DIRECTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
1.4
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.
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.
Income in respect of the holiday park bookings is recognised upon receipt, with any income relating to bookings after the year end being deferred.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2-10% Reducing Balance and 2% Straight line
Plant and equipment
5-33% Reducing Balance and 5-17% Straight line
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
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities 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.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand.
NEW FINDHORN DIRECTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
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 and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Financial liabilities that are not recognised as basic financial liabilities are initially recognised at transaction price, and then subsequently held at fair value. The company has developed a portfolio of affordable housing for rental. The terms of the rental agreements differ depending on the individual circumstances, with those classified as right to occupy agreements including a requirement for the tenant to provide a loan to the company. In return for the loan, the tenant receives a discounted rent and a variable return on the loan which is linked to the movements on the open market value of the property being let. The amount of repayable to the tenant under the right to occupy agreements may exceed the advance, or decrease depending on the movement in the property value. Subject to the specific terms and conditions, these arrangements are considered to reflect a complex financial instrument and thus carried at fair value at each balance sheet date. Rental income is accounted for at fair value, with the recognition of a finance cost in respect of any discount applied to the rental payable by the tenant.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.10
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.
NEW FINDHORN DIRECTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
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
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.
NEW FINDHORN DIRECTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Fair value of complex financial instruments
As noted at accounting policy 1.9, the company has developed a portfolio of affordable housing for rental. The terms of the right to occupy agreements include a requirement for the tenant to provide a loan to the company. In return for the loan , the tenant receives a discounted rent and a variable return on the loan which is linked to the movements on the open market value of the property being let. Initially the assessment of the terms of these arrangements to determine whether they are a basic or complex financial instrument has required the exercise of judgement. In addition, the assessment by the directors to determine the fair value of the financial liability also requirements judgment and includes estimation uncertainty.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
16
18
NEW FINDHORN DIRECTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2022
1,092,683
1,084,937
2,177,620
Additions
2,623
18,143
20,766
Disposals
(19,857)
(19,857)
At 31 March 2023
1,095,306
1,083,223
2,178,529
Depreciation and impairment
At 1 April 2022
92,497
821,691
914,188
Depreciation charged in the year
21,645
39,473
61,118
Eliminated in respect of disposals
(18,474)
(18,474)
At 31 March 2023
114,142
842,690
956,832
Carrying amount
At 31 March 2023
981,164
240,533
1,221,697
At 31 March 2022
1,000,186
263,246
1,263,432
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
63,001
63,001
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
40,227
25,735
Amounts owed by group undertakings
21,786
12,016
Other debtors
11,424
10,930
73,437
48,681
NEW FINDHORN DIRECTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
10,000
10,000
Trade creditors
55,815
32,296
Taxation and social security
4,952
Other creditors
336,849
284,973
402,664
332,221
Included within other creditors are loans with Ekopia, a related party. The loans are secured by an unregistered security over the property of Traigh Bhan, Iona.
Included within other creditors is a balance of £59,209 that is held on behalf of the Title Holders Association, a related party.
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
21,667
31,667
Other creditors
657,519
688,043
679,186
719,710
Included within other creditors are loans with Ekopia, a related party. The loans are secured by an unregistered security over the property of Traigh Bhan, Iona. The loans are also secured over one of the properties and also over one accommodation unit with a market value of at least £60,000.
Creditors which fall due after five years are as follows:
2023
2022
£
£
Payable by instalments
73,239
85,047
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
2
2
2
2
NEW FINDHORN DIRECTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
10
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.
Included within the audit report is a material uncertainty 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.
We draw your attention to Note 1.3 to the financial statements which explains that the company has net current liabilities of £190k and that the trustees of the ultimate parent charity have taken the decision to wind down the Trust. We have considered the adequacy of the disclosures made in note 1.3 of the financial statements concerning the company’s ability to continue as a going concern. As at 31 March 2023 the company had net current liabilities of £190k but this does contain loans of £102k that while technically repayable within 2 months it is very unlikely that such repayment will be sought. With the support of the parent charity and the trustees and the directors continuing close and regular monitoring of their financial position this will allow them to continue operating as a going concern. Our opinion is not modified in respect of this matter.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The audit report was signed on 7th October 2024 by Neil Young (Senior statutory auditor) on behalf of Bird Simpson & Co.
Senior Statutory Auditor:
Neil Young
Statutory Auditor:
Bird Simpson & Co.
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
221,890
245,295
12
Events after the reporting date
Following the year end, the trustees of the ultimate parent charity, have made the decision to wind down the charity. See going concern note 1.3 for further details.
13
Parent company
The ultimate controlling party at the reporting end date is The Findhorn Foundation, a registered charitable trust. The Findhorn Foundation's registered office is The Park, Findhorn, Forres, IV36 3TZ.
The Directors consider the Trustee's of The Findhorn Foundation to be the ultimate controlling party.
2023-03-312022-04-01false07 October 2024CCH SoftwareCCH Accounts Production 2024.200No description of principal activityThis audit opinion is unqualifiedTimothy SlackAlexander WalkerCaroline MattersKatherine TylerAnn McEllinTerence GilbeyfalsefalseSC0701932022-04-012023-03-31SC0701932023-03-31SC0701932022-03-31SC070193core:LandBuildings2023-03-31SC070193core:OtherPropertyPlantEquipment2023-03-31SC070193core:LandBuildings2022-03-31SC070193core:OtherPropertyPlantEquipment2022-03-31SC070193core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-31SC070193core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-31SC070193core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-31SC070193core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-31SC070193core:CurrentFinancialInstruments2023-03-31SC070193core:CurrentFinancialInstruments2022-03-31SC070193core:Non-currentFinancialInstruments2023-03-31SC070193core:Non-currentFinancialInstruments2022-03-31SC070193core:ShareCapital2023-03-31SC070193core:ShareCapital2022-03-31SC070193core:CapitalRedemptionReserve2023-03-31SC070193core:CapitalRedemptionReserve2022-03-31SC070193core:RetainedEarningsAccumulatedLosses2023-03-31SC070193core:RetainedEarningsAccumulatedLosses2022-03-31SC070193bus:Director12022-04-012023-03-31SC070193core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-012023-03-31SC070193core:PlantMachinery2022-04-012023-03-31SC0701932021-02-012022-03-31SC070193core:LandBuildings2022-03-31SC070193core:OtherPropertyPlantEquipment2022-03-31SC0701932022-03-31SC070193core:LandBuildings2022-04-012023-03-31SC070193core:OtherPropertyPlantEquipment2022-04-012023-03-31SC070193core:WithinOneYear2023-03-31SC070193core:WithinOneYear2022-03-31SC070193core:CurrentFinancialInstrumentscore:WithinOneYear2022-04-012023-03-31SC070193core:Non-currentFinancialInstrumentscore:AfterOneYear2022-04-012023-03-31SC07019312022-04-012023-03-31SC070193bus:PrivateLimitedCompanyLtd2022-04-012023-03-31SC070193bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-31SC070193bus:FRS1022022-04-012023-03-31SC070193bus:Audited2022-04-012023-03-31SC070193bus:Director22022-04-012023-03-31SC070193bus:Director32022-04-012023-03-31SC070193bus:Director42022-04-012023-03-31SC070193bus:Director52022-04-012023-03-31SC070193bus:Director62022-04-012023-03-31SC070193bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP