Company registration number SC072886 (Scotland)
SKENE ENTERPRISES (ABERDEEN) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
SKENE ENTERPRISES (ABERDEEN) LIMITED
COMPANY INFORMATION
Directors
C P Skene
A J K Skene
J A MacKenzie
R M Skene
P C Norris
Secretary
LC Secretaries Limited
Company number
SC072886
Registered office
Johnstone House
52-54 Rose Street
Aberdeen
United Kingdom
AB10 1HA
Auditor
Azets Audit Services
37 Albyn Place
Aberdeen
United Kingdom
AB10 1JB
SKENE ENTERPRISES (ABERDEEN) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
SKENE ENTERPRISES (ABERDEEN) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -
The directors present the strategic report for the year ended 31 January 2024.
Business Review
The company is engaged in the development and management of a retirement village encompassing a care home.
The directors are pleased to report satisfactory trading results for the year ended 31 January 2024. The company continued to commit considerable resources to the operation of its retirement village and care home.
Principal Risks and Uncertainties
The Board of Directors and senior management continue to follow and review all business protocols to ensure that these are kept up to date.
The performance of the local housing market continued to have a positive impact on the ability of purchasers to buy houses and apartments at Inchmarlo which resulted in a better resale performance.
Following Brexit, the company has not experienced any material shortage in fulfilling key roles. As a company we offer employment to qualified personnel from across the international market for care industry specialists and believe that we have suitable coverage to fulfil any roles, even where there are changes in legislation.
Financial Key Performance Indicators
Management consider revenue growth and operating profit to be the primary indicators of the Company's financial performance. Revenue increased by 10.5% as a result of the necessary increase to fees in line with the increase to the National Minimum Wage which took place in the financial year. Operating profit margins have decreased in the year due to substantial repairs being undertaken in the Home and the Estate. Many repairs had to be put on hold through the COVID years, and now a schedule of repairs is being undertaken. The Directors are satisfied that margins remain within acceptable levels for the type of trading activity and the home continues to operate at close to full occupancy and providing a very high standard of care in the local community.
Net current assets have decreased from £4.5 million to £2.9 million. Total assets have decreased from £8.9 million to £7.2 million.
Other Key Performance Indicators
Management review the occupancy levels of the care home and house sales activities of the retirement village. Occupancy continued to be at a high level and house sales have exceeded expectations.
R M Skene
Director
7 October 2024
SKENE ENTERPRISES (ABERDEEN) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 January 2024.
Principal activities
The principal activity of the company continued to be that of development of a continuing care retirement community through its housing developments and operation of a care home.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £2,000,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
C P Skene
A J K Skene
J A MacKenzie
R M Skene
P C Norris
Post reporting date events
In April 2024 the directors declared and paid a dividend of £600,000 to shareholders.
In August 2024, one of the directors agreed to purchase an investment property held by the company for £370,000 based on a third party valuation report obtained in July 2024.
Auditor
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
R M Skene
Director
7 October 2024
SKENE ENTERPRISES (ABERDEEN) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
The directors are responsible for preparing the annual report 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;
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.
SKENE ENTERPRISES (ABERDEEN) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SKENE ENTERPRISES (ABERDEEN) LIMITED
- 4 -
Opinion
We have audited the financial statements of Skene Enterprises (Aberdeen) Limited (the 'company') for the year ended 31 January 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 January 2024 and of its profit 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.
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 Auditor's 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
SKENE ENTERPRISES (ABERDEEN) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SKENE ENTERPRISES (ABERDEEN) LIMITED
- 5 -
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 directors' report.
We have nothing to report in respect of the following matters in relation to which 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 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 directors' responsibilities statement, 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 is 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.
Auditor's 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 an auditor's report 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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
SKENE ENTERPRISES (ABERDEEN) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SKENE ENTERPRISES (ABERDEEN) LIMITED
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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 an auditor's report 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.
Matthew Allan (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
7 October 2024
Chartered Accountants
Statutory Auditor
37 Albyn Place
Aberdeen
United Kingdom
AB10 1JB
SKENE ENTERPRISES (ABERDEEN) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
4,782,142
4,329,469
Cost of sales
(2,156,805)
(1,884,164)
Gross profit
2,625,337
2,445,305
Administrative expenses
(2,253,625)
(1,875,277)
Other operating income
34,686
49,783
Operating profit
4
406,398
619,811
Interest receivable and similar income
7
208,615
66,947
Interest payable and similar expenses
8
(50,312)
(23)
Amounts written off investments
9
(160,824)
-
Profit before taxation
403,877
686,735
Tax on profit
10
(153,995)
(147,321)
Profit for the financial year
249,882
539,414
The profit and loss account has been prepared on the basis that all operations are continuing operations.
SKENE ENTERPRISES (ABERDEEN) LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
3,750,769
3,767,283
Investment property
13
589,430
717,935
4,340,199
4,485,218
Current assets
Stocks
14
26,821
40,174
Debtors
15
316,502
291,528
Cash at bank and in hand
3,060,506
4,584,231
3,403,829
4,915,933
Creditors: amounts falling due within one year
16
(495,163)
(385,205)
Net current assets
2,908,666
4,530,728
Total assets less current liabilities
7,248,865
9,015,946
Provisions for liabilities
Deferred tax liability
17
82,587
99,550
(82,587)
(99,550)
Net assets
7,166,278
8,916,396
Capital and reserves
Called up share capital
19
10,000
10,000
Profit and loss reserves
20
7,156,278
8,906,396
Total equity
7,166,278
8,916,396
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:
R M Skene
Director
Company Registration No. SC072886
SKENE ENTERPRISES (ABERDEEN) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2022
10,000
8,766,982
8,776,982
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
539,414
539,414
Dividends
11
-
(400,000)
(400,000)
Balance at 31 January 2023
10,000
8,906,396
8,916,396
Year ended 31 January 2024:
Profit and total comprehensive income for the year
-
249,882
249,882
Dividends
11
-
(2,000,000)
(2,000,000)
Balance at 31 January 2024
10,000
7,156,278
7,166,278
SKENE ENTERPRISES (ABERDEEN) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
511,547
3,105,756
Interest paid
(50,312)
(23)
Income taxes paid
(90,502)
(59,952)
Net cash inflow from operating activities
370,733
3,045,781
Investing activities
Purchase of tangible fixed assets
(94,193)
(509,767)
Proceeds on disposal of tangible fixed assets
13,440
Purchase of investment property
(32,319)
(165)
Payments arising from loans issued
9,999
(9,999)
Interest received
208,615
66,947
Net cash generated from/(used in) investing activities
105,542
(452,984)
Financing activities
Dividends paid
(2,000,000)
(400,000)
Net cash used in financing activities
(2,000,000)
(400,000)
Net (decrease)/increase in cash and cash equivalents
(1,523,725)
2,192,797
Cash and cash equivalents at beginning of year
4,584,231
2,391,434
Cash and cash equivalents at end of year
3,060,506
4,584,231
SKENE ENTERPRISES (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
1
Accounting policies
Company information
Skene Enterprises (Aberdeen) Limited is a private company limited by shares domiciled and incorporated in Scotland. The registered office is Johnstone House, 52-54 Rose Street, Aberdeen, United Kingdom, AB10 1HA.
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.
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 the revaluation of freehold properties and to include investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements the directors have a reasonable expectation that the company will continue to be in operational existence for the foreseeable future due to reasonably high occupancy levels at the care home, the improvement in the resale of homes on the estate and a continued focus on cost control measures. In addition the company has sufficient cash reserves to meet its obligations for the foreseeable future. Therefore the directors continue to adopt the going concern basis of accounting in preparing the financial statements. true
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 any discounts.
Turnover on private property sales is recognised at the point of handover. Turnover in relation to service provision is recognised in the period in which the service is provided. Costs incurred in relation to the sale of private property are recognised by reference to the overall anticipated margin of the contract. This is normally measured by surveys of work performed to date and budgets for costs to complete.
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 property
2% reducing balance
Plant and equipment
20% reducing balance
Motor vehicles
25% 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.
SKENE ENTERPRISES (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 12 -
1.5
Investment properties
Investment properties, which are properties held to earn rentals and/or for capital appreciation, are initially recognised at cost which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the company's reporting date. Changes in fair value are recognised in the statement of comprehensive income.
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). 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.
1.7
Stocks
Stocks and work in progress 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 condition.
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, and other short-term liquid investments with original maturities of three months or less.
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.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
SKENE ENTERPRISES (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 13 -
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, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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, 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
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.
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.
SKENE ENTERPRISES (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 14 -
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
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
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.
SKENE ENTERPRISES (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 15 -
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.
Key Sources of estimation uncertainty
The estimates and assumptions which have significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Carrying value of Tangible Assets
The carrying value, estimated useful life and depreciation of tangible assets are judgements made by the directors (Note 12). The directors assess the useful life of these assets and depreciate over the appropriate period.
Valuation of Investment Properties
The company carries its investment properties at fair value, with changes in fair value being recognised in the statement of comprehensive income. The fair value was assessed by the directors on the basis set out in Note 13.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Exit fees
169,111
164,705
Service income
4,613,031
4,164,764
4,782,142
4,329,469
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
4,782,142
4,329,469
2024
2023
£
£
Other revenue
Interest income
208,615
66,947
Rental income arising from investment properties
34,686
48,145
Grants received
-
1,638
SKENE ENTERPRISES (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 16 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(1,638)
Fees payable to the company's auditor for the audit of the company's financial statements
21,250
19,500
Depreciation of owned tangible fixed assets
110,707
106,372
Profit on disposal of tangible fixed assets
(13,440)
-
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Nurses and caring staff
74
72
Administrative staff
11
11
Security and maintenance staff
19
17
Management
3
3
Total
107
103
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,401,167
2,151,323
Social security costs
203,396
191,105
Pension costs
74,344
69,782
2,678,907
2,412,210
SKENE ENTERPRISES (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 17 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
217,338
241,934
Company pension contributions to defined contribution schemes
14,346
16,340
231,684
258,274
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
100,178
115,765
Company pension contributions to defined contribution schemes
6,485
7,579
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
208,049
66,947
Other interest income
566
Total income
208,615
66,947
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
208,049
66,947
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
50,312
23
9
Amounts written off investments
2024
2023
£
£
Changes in the fair value of investment properties
(160,824)
-
SKENE ENTERPRISES (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 18 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
170,962
104,996
Adjustments in respect of prior periods
(4)
(14,535)
Total current tax
170,958
90,461
Deferred tax
Origination and reversal of timing differences
(16,963)
47,279
Adjustment in respect of prior periods
9,581
Total deferred tax
(16,963)
56,860
Total tax charge
153,995
147,321
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
403,877
686,735
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
97,052
130,480
Tax effect of expenses that are not deductible in determining taxable profit
32,703
7,288
Adjustments in respect of prior years
(4)
(4,954)
Permanent fixed asset differences
(2,163)
3,129
Remeasurement of deferred tax for changes in tax rates
(1,271)
11,347
Chargeable gains/(losses)
(11,581)
31
Movement in deferred tax not recognised
15,799
Taxation charge for the year
130,535
147,321
Taxation charge in the financial statements
153,995
147,321
Reconciliation - the current year tax charge does not reconcile to the above analysis. Please review figures in the database.
(23,460)
-
An increase in the UK corporation tax rate to 25% on profits over £250,000 (effective from 1 April 2023) was substantively enacted on 3 March 2021. This was expected to increase the company's future tax accordingly and therefore the deferred tax liability has been recognised utilising the new rate.
SKENE ENTERPRISES (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 19 -
11
Dividends
2024
2023
2024
2023
Per share
Per share
Total
Total
£
£
£
£
Ordinary shares
Final paid
200.00
40.00
2,000,000
400,000
12
Tangible fixed assets
Freehold property
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 February 2023
4,503,866
1,180,401
116,104
5,800,371
Additions
17,366
76,827
94,193
At 31 January 2024
4,521,232
1,257,228
116,104
5,894,564
Depreciation and impairment
At 1 February 2023
954,562
982,144
96,382
2,033,088
Depreciation charged in the year
45,349
54,198
11,160
110,707
At 31 January 2024
999,911
1,036,342
107,542
2,143,795
Carrying amount
At 31 January 2024
3,521,321
220,886
8,562
3,750,769
At 31 January 2023
3,549,304
198,257
19,722
3,767,283
13
Investment property
2024
£
Fair value
At 1 February 2023
717,935
Additions
32,319
Net gains or losses through fair value adjustments
(160,824)
At 31 January 2024
589,430
Investment properties were originally recognised at their cost of acquisition during a prior year.
Based on a valuation received from Allied Surveyors Scotland in July 2024 and the subsequently agreed sale of a property in August 2024, the directors believe that the value of one of the properties held at the year end should be decreased to £370,000. The directors believe that the valuation in July 2024 is reflective of the fair value of the property at 31 January 2024 due to the key data points used in the valuation report provided.
The directors are of the opinion that the value of the two other properties remain at a fair value of £219,430, taking into account the independent valuation reports obtained when acquiring these properties versus current local market conditions.
On a historical cost basis, the properties would have been included at £750,254 (2023 - £717,935).
SKENE ENTERPRISES (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 20 -
14
Stocks
2024
2023
£
£
Work in progress
26,821
40,174
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
235,210
157,519
Other debtors
41,010
Prepayments and accrued income
81,292
92,999
316,502
291,528
16
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
70,379
66,961
Corporation tax
170,943
90,487
Other taxation and social security
49,490
46,257
Other creditors
74,781
69,761
Accruals and deferred income
129,570
111,739
495,163
385,205
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
83,462
100,261
Short term timing differences
(876)
(711)
Capital gains
1
-
82,587
99,550
SKENE ENTERPRISES (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
17
Deferred taxation
(Continued)
- 21 -
2024
Movements in the year:
£
Liability at 1 February 2023
99,550
Credit to profit or loss
(16,963)
Liability at 31 January 2024
82,587
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
74,344
69,782
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. At the year end the company owed £4,637 (2023 - £4,161) to the pension scheme.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000
20
Profit and loss reserves
This reserve records retained earnings and accumalated losses.
21
Directors' transactions
Interest totalling £29,125 (2023 - £nil) was paid to the company's directors.
Dividends totalling £1,005,400 (2023 - £201,080) were paid in the year in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Loan to director
-
9,999
(9,999)
-
9,999
(9,999)
-
SKENE ENTERPRISES (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 22 -
22
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
217,338
241,934
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Recharged Expenses
2024
2023
2024
2023
£
£
£
£
Other related parties
15,934
28,145
353,360
418,754
2024
2023
Amounts due to related parties
£
£
Other related parties
34,551
39,184
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Other related parties
-
809
23
Ultimate controlling party
Throughout the year the company was controlled by the directors.
SKENE ENTERPRISES (ABERDEEN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 23 -
24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
249,882
539,414
Adjustments for:
Taxation charged
153,995
147,321
Finance costs
50,312
23
Investment income
(208,615)
(66,947)
Gain on disposal of tangible fixed assets
(13,440)
-
Depreciation and impairment of tangible fixed assets
110,707
106,372
Other gains and losses
160,824
-
Movements in working capital:
Decrease/(increase) in stocks
13,353
(10,895)
(Increase)/decrease in debtors
(34,973)
2,352,260
Increase in creditors
29,502
38,208
Cash generated from operations
511,547
3,105,756
25
Analysis of changes in net funds
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
4,584,231
(1,523,725)
3,060,506
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