Silverfin false false 31/03/2024 01/04/2023 31/03/2024 Caroline Gregory 14/10/2014 Sean Kelly 14/10/2014 04 October 2024 The principal activity of the Company continues to be that of running a hotel. SC488936 2024-03-31 SC488936 bus:Director1 2024-03-31 SC488936 bus:Director2 2024-03-31 SC488936 2023-03-31 SC488936 core:CurrentFinancialInstruments 2024-03-31 SC488936 core:CurrentFinancialInstruments 2023-03-31 SC488936 core:Non-currentFinancialInstruments 2024-03-31 SC488936 core:Non-currentFinancialInstruments 2023-03-31 SC488936 core:ShareCapital 2024-03-31 SC488936 core:ShareCapital 2023-03-31 SC488936 core:RevaluationReserve 2024-03-31 SC488936 core:RevaluationReserve 2023-03-31 SC488936 core:RetainedEarningsAccumulatedLosses 2024-03-31 SC488936 core:RetainedEarningsAccumulatedLosses 2023-03-31 SC488936 core:LandBuildings 2023-03-31 SC488936 core:FurnitureFittings 2023-03-31 SC488936 core:OfficeEquipment 2023-03-31 SC488936 core:LandBuildings 2024-03-31 SC488936 core:FurnitureFittings 2024-03-31 SC488936 core:OfficeEquipment 2024-03-31 SC488936 core:CurrentFinancialInstruments core:Secured 2024-03-31 SC488936 core:MoreThanFiveYears 2024-03-31 SC488936 core:MoreThanFiveYears 2023-03-31 SC488936 2022-03-31 SC488936 bus:OrdinaryShareClass1 2024-03-31 SC488936 bus:PreferenceShareClass1 2024-03-31 SC488936 2023-04-01 2024-03-31 SC488936 bus:FilletedAccounts 2023-04-01 2024-03-31 SC488936 bus:SmallEntities 2023-04-01 2024-03-31 SC488936 bus:AuditExemptWithAccountantsReport 2023-04-01 2024-03-31 SC488936 bus:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 SC488936 bus:Director1 2023-04-01 2024-03-31 SC488936 bus:Director2 2023-04-01 2024-03-31 SC488936 core:LandBuildings core:TopRangeValue 2023-04-01 2024-03-31 SC488936 core:FurnitureFittings 2023-04-01 2024-03-31 SC488936 core:OfficeEquipment 2023-04-01 2024-03-31 SC488936 2022-04-01 2023-03-31 SC488936 core:LandBuildings 2023-04-01 2024-03-31 SC488936 core:CurrentFinancialInstruments 2023-04-01 2024-03-31 SC488936 core:Non-currentFinancialInstruments 2023-04-01 2024-03-31 SC488936 bus:OrdinaryShareClass1 2023-04-01 2024-03-31 SC488936 bus:OrdinaryShareClass1 2022-04-01 2023-03-31 SC488936 bus:PreferenceShareClass1 2023-04-01 2024-03-31 SC488936 bus:PreferenceShareClass1 2022-04-01 2023-03-31 iso4217:GBP xbrli:pure xbrli:shares

Company No: SC488936 (Scotland)

THE LOVAT LOCH NESS LIMITED

UNAUDITED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH THE REGISTRAR

THE LOVAT LOCH NESS LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024

Contents

THE LOVAT LOCH NESS LIMITED

BALANCE SHEET

AS AT 31 MARCH 2024
THE LOVAT LOCH NESS LIMITED

BALANCE SHEET (continued)

AS AT 31 MARCH 2024
Note 2024 2023
£ £
Fixed assets
Tangible assets 3 2,221,601 1,706,864
2,221,601 1,706,864
Current assets
Stocks 11,212 9,657
Debtors 4 63,402 37,372
Cash at bank and in hand 1,717 362
76,331 47,391
Creditors: amounts falling due within one year 5 ( 476,393) ( 517,336)
Net current liabilities (400,062) (469,945)
Total assets less current liabilities 1,821,539 1,236,919
Creditors: amounts falling due after more than one year 6 ( 659,734) ( 728,979)
Provision for liabilities 7 ( 157,036) ( 19,739)
Net assets 1,004,769 488,201
Capital and reserves
Called-up share capital 8 50,000 50,000
Revaluation reserve 565,123 0
Profit and loss account 389,646 438,201
Total shareholders' funds 1,004,769 488,201

For the financial year ending 31 March 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 The Lovat Loch Ness Limited (registered number: SC488936) were approved and authorised for issue by the Board of Directors on 04 October 2024. They were signed on its behalf by:

Caroline Gregory
Director
THE LOVAT LOCH NESS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024
THE LOVAT LOCH NESS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 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

The Lovat, Loch Ness 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 Clava House, Cradlehall Business Park, Inverness, IV2 5GH, 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 £.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, despite having net current liabilities at the year end of £400,062.

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The Company is supported through loans from the directors. The directors have confirmed that the loan facilities will continue to be available for at least 12 months from the date of signing these financial statements and the directors will continue to support the Company. Given the current position, the directors believe that any foreseeable debts can be met for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

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.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

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.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, 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 or valuation, 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 100 years straight line
Fixtures and fittings 15 % reducing balance
Office equipment 25 % reducing balance

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.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in 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 Statement of Income and Retained Earnings 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

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 assets is estimated in order to determine the extent of the impairment loss (if any).

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.

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 include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

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, bank loans 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.

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

Grants received towards capital expenditure are released to the profit and loss account over the expected useful life of the asset. Grants received towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

2. Employees

2024 2023
Number Number
Monthly average number of persons employed by the Company during the year, including directors 26 24

3. Tangible assets

Land and buildings Fixtures and fittings Office equipment Total
£ £ £ £
Cost
At 01 April 2023 1,552,457 604,660 43,362 2,200,479
Additions 0 8,106 1,034 9,140
Revaluations 565,123 0 0 565,123
At 31 March 2024 2,117,580 612,766 44,396 2,774,742
Accumulated depreciation
At 01 April 2023 112,130 365,753 15,732 493,615
Charge for the financial year 15,527 36,937 7,062 59,526
At 31 March 2024 127,657 402,690 22,794 553,141
Net book value
At 31 March 2024 1,989,923 210,076 21,602 2,221,601
At 31 March 2023 1,440,327 238,907 27,630 1,706,864

Revaluation of tangible assets

Land and buildings with a carrying amount of £1,989,923 were revalued at 22 July 2024 by DM Hall Chartered Surveyors, independent valuers not connected with the company on an open market basis. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

The directors are satisfied that the revalued amount was applicable at 31 March 2024.

2024 2023
£ £
Historical cost 1,552,457 0
Accumulated depreciation (127,656) 0
Carrying value 1,424,801 0

4. Debtors

2024 2023
£ £
Trade debtors 0 5,028
Other debtors 63,402 32,344
63,402 37,372

5. Creditors: amounts falling due within one year

2024 2023
£ £
Bank loans and overdrafts (secured) 230,927 299,488
Trade creditors 57,390 63,974
Taxation and social security 65,438 28,557
Other creditors 122,638 125,317
476,393 517,336

The bank loan is secured by a standard security over the property.

The obligations under finance leases are secured over the assets which the agreements relate to.

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

2024 2023
£ £
Bank loans (secured) 434,809 464,043
Other creditors 224,925 264,936
659,734 728,979

The bank loan is secured by a standard security over the property.

The obligations under finance leases are secured over the assets which the agreements relate to.

The redeemable shares are to be redeemed based on monthly repayments recommencing after March 2025. All redeemable shares will be redeemed at par but the balance carries an interest rate of 6%.

The aggregate amount of secured liabilities due after one year is £434,809 (2023 - £464,043)

Amounts repayable after more than 5 years are included in creditors falling due over one year:

2024 2023
£ £
Bank loans (secured) 201,120 279,953

7. Deferred tax

2024 2023
£ £
At the beginning of financial year ( 19,739) ( 32,777)
(Charged)/credited to the Statement of Income and Retained Earnings ( 137,297) 13,038
At the end of financial year ( 157,036) ( 19,739)

8. Called-up share capital

2024 2023
£ £
Allotted, called-up and fully-paid
50,000 Ordinary shares of £ 1.00 each 50,000 50,000
118,463 6.00% Preference redeemable shares of £ 1.00 each 118,463 118,463
168,463 168,463

9. Financial commitments

Other financial commitments

2024 2023
£ £
Current Commitments arising from government grants 6,995 7,890
Non-current Commitments arising from government grants 76,213 83,208
Operating Lease Commitments 6,300 12,082
89,508 103,180

Operating Lease commitments are due as follows: £4,941 due within one year and £1,359 due within 2-5 years.

10. Related party transactions

Transactions with the entity's directors

2024 2023
£ £
Key Management Personnel 32,784 84,015

Other related party transactions

2024 2023
£ £
Other Related Parties 19,250 29,250