Company registration number SC133795 (Scotland)
SCOTTISH AGRICULTURAL & RURAL DEVELOPMENT CENTRE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
PAGES FOR FILING WITH REGISTRAR
SCOTTISH AGRICULTURAL & RURAL DEVELOPMENT CENTRE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
4 - 11
SCOTTISH AGRICULTURAL & RURAL DEVELOPMENT CENTRE LIMITED
BALANCE SHEET
AS AT
29 FEBRUARY 2024
29 February 2024
- 1 -
29 February 2024
28 February 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
17,770
25,196
Investment property
5
1,350,000
1,350,000
1,367,770
1,375,196
Current assets
Debtors
7
49,517
70,895
Creditors: amounts falling due within one year
8
(204,737)
(243,391)
Net current liabilities
(155,220)
(172,496)
Total assets less current liabilities
1,212,550
1,202,700
Provisions for liabilities
Deferred tax liability
10
4,528
4,722
(4,528)
(4,722)
Net assets
1,208,022
1,197,978
Capital and reserves
Called up share capital
11
500,000
500,000
Profit and loss reserves
708,022
697,978
Total equity
1,208,022
1,197,978

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 11 November 2024 and are signed on its behalf by:
R Shaw
Director
Company registration number SC133795 (Scotland)
SCOTTISH AGRICULTURAL & RURAL DEVELOPMENT CENTRE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -
2024
2023
£
£
Profit/(loss) for the year
10,044
(43,528)
Other comprehensive income
-
0
-
Total comprehensive income for the year
10,044
(43,528)
The notes on pages 4 to 11 form an integral part of these financial statements.
SCOTTISH AGRICULTURAL & RURAL DEVELOPMENT CENTRE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 March 2022
500,000
741,506
1,241,506
Year ended 28 February 2023:
Loss and total comprehensive income
-
(43,528)
(43,528)
Balance at 28 February 2023
500,000
697,978
1,197,978
Year ended 29 February 2024:
Profit and total comprehensive income
-
10,044
10,044
Balance at 29 February 2024
500,000
708,022
1,208,022
SCOTTISH AGRICULTURAL & RURAL DEVELOPMENT CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 4 -
1
Accounting policies
Company information

Scottish Agricultural & Rural Development Centre Limited is a private company limited by shares incorporated in Scotland. The registered office is The Rural Centre, Ingliston, Edinburgh, EH28 8NZ.

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 and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

These financial statements are prepared on the going concern basis, which assumes that the company will continue in operational existence for the foreseeable future and be able to meet its liabilities as they fall due. At the balance sheet date. the company had net current liabilities of £155,220 (2023: £172,496).

 

The company has experienced recent challenges relating to office-working during the pandemic.  New tenants have recently been sourced and they have taken out leases from 2023, resulting in an improvement in the company’s projected rental income in 2023/24 and beyond.  The Directors are mindful of the need to improve its cashflow position and no Dividends have been declared recently nor expected to be declared in the short-term.   The company relies on the continued support of its creditors and bankers to meet its short-term obligations.  

 

The Directors are confident that the company will be able to increase its overdraft facility so that it continues to meet its short term obligations.  As a result of these measures, the Directors consider it appropriate to adopt the Going Concern basis of accounting.  

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods 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.

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:

Plant and equipment
25% Reducing balance
Fixtures and fittings
20% Reducing balance
SCOTTISH AGRICULTURAL & RURAL DEVELOPMENT CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 5 -

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.

1.5
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.6
Impairment of fixed assets

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
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 current liabilities.

1.8
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.

SCOTTISH AGRICULTURAL & RURAL DEVELOPMENT CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 6 -
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.

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.

1.9
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.

1.10
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.

SCOTTISH AGRICULTURAL & RURAL DEVELOPMENT CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 7 -
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.

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.

Valuation of investment property

The valuation of the investment property is a key accounting estimate. The valuation is typically carried out by a professional firm of surveyors. The methodology used by the surveyors is the property's value in use and takes into consideration market and economic conditions that affect the rental value per square foot and current occupancy levels. Where a formal valuation has not been carried out, the directors will assess whether the valuation based on similar methodology is appropriate.

3
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
7,500
7,500
SCOTTISH AGRICULTURAL & RURAL DEVELOPMENT CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 8 -
4
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Total
£
£
£
Cost
At 1 March 2023 and 29 February 2024
51,155
53,228
104,383
Depreciation and impairment
At 1 March 2023
28,662
50,525
79,187
Depreciation charged in the year
6,244
1,182
7,426
At 29 February 2024
34,906
51,707
86,613
Carrying amount
At 29 February 2024
16,249
1,521
17,770
At 28 February 2023
22,493
2,703
25,196
5
Investment property
2024
£
Fair value
At 1 March 2023 and 29 February 2024
1,350,000

The fair value of the company's investment property was revalued to £1,350,000 in November 2021 by Davidson & Robertson, Chartered Surveyors who are external to the company. The basis of this valuation was open market value. The directors consider that the value of the investment property at 29 February 2024 remained at £1,350,000.

6
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
1,350,000
1,350,000
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
29,185
54,952
Prepayments and accrued income
20,332
15,943
49,517
70,895
SCOTTISH AGRICULTURAL & RURAL DEVELOPMENT CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 9 -
8
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
9
73,321
88,633
Trade creditors
51,383
90,864
Taxation and social security
2,776
475
Accruals and deferred income
77,257
63,419
204,737
243,391
9
Loans and overdrafts

The bank overdraft is secured by a standard security over the Rural Centre property and a bond and floating charge over the assets of the company.

10
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
4,528
4,722
2024
Movements in the year:
£
Liability at 1 March 2023
4,722
Credit to profit or loss
(194)
Liability at 29 February 2024
4,528
11
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
500,000
500,000
500,000
500,000
SCOTTISH AGRICULTURAL & RURAL DEVELOPMENT CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 10 -
12
Audit report information

As the profit and loss account 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. The auditor's report, which is attached to the company's full accounts,includes a Material Uncertainty relating to Going Concern, as follows:

 

'In forming our opinion, we have considered the adequacy of the disclosures made in note 1 of the financial statements concerning the company's ability to continue as a going concern. The financial statements have been prepared on a going concern basis, the validity of which is dependent upon the financial support of its creditors and in particular the company's bankers. Our opinion is not qualified in this respect.'

Senior Statutory Auditor:
David Jeffcoat
Statutory Auditor:
Alexander Sloan LLP, Accountants and Business Advisers
Date of audit report:
20 November 2024
13
Operating lease commitments
Lessor

The operating leases represent leases of office space to third parties.

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2024
2023
£
£
Within one year
84,608
57,353
Between two and five years
207,198
61,546
In over five years
185,019
25,951
476,825
144,850
14
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
7,500
7,500

The directors represent three organisations that are shareholders in the company. The three organisations charged fees of £7,500 (2023: £7,500) for directors' duties.

SCOTTISH AGRICULTURAL & RURAL DEVELOPMENT CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
14
Related party transactions
(Continued)
- 11 -
Other information

Transactions with related parties

The following transactions occurred with Related Parties in the year:

 

NFU Scotland

 

Two of the Directors of the company during the year (J. Davidson and R. Shaw) are representatives of NFU

Scotland. NFU Scotland are tenants of the Centre, and they also provide management and administrative.

services to the Centre.

 

During the year:

The Centre charged NFU Scotland £48,342 (2023: £52,329) for rent and other income and £32,614 (2023:

£25,666) in service charges and recharged expenses. The amounts owed to the Centre at the balance sheet date was £Nil (2023: £22,484).

 

NFU Scotland charged the Centre £32,000 (2023: £32,000) for Administration fees and £3,000 (2023: £3,000) for Directors' services. NFU Scotland also charged the Centre £13,999 (2023: £28,383) for other services

part of which was recharged to other tenants. The amounts owed to NFU Scotland at the balance sheet date was £49,500 (2023: £66,000).

 

The Centre paid NFU Scotland £Nil (2023: £Nil) in dividends.

 

Scottish Agricultural Organisation Society

 

One of the Directors of the company during the year (T. Bailey) is a representative of Scottish Agricultural

Organisation Society (SAOS). SAOS is a tenant of the Centre.

 

During the year:

The Centre charged SAOS £13,902 (2023: £14,280) for rent and other income and £9,379 (2023: £7,395) in service charges and recharged expenses. The amounts owed to the Centre at the balance sheet date was £6,106 (2023: £6,355).

 

SAOS charged the Centre £1,500 (2023: £1,500) for Directors' services. The amounts owed to SAOS at the

balance sheet date wad £Nil (2023: £Nil).

 

The Centre paid SAOS £nil (2023: £nil) in dividends.

 

Royal Highland and Agricultural Society of Scotland

 

Two of the Directors of the company (A. Laidlaw and J. Sinclair) are representatives of the Royal Highland

and Agricultural Society of Scotland (RHASS). RHASS provide security and maintenance services to the

Centre.

 

During the year:

RHASS charged the Centre £3,000 (2023: £3,000) for Directors' services. The amounts owed to RHASS at the balance sheet date was £Nil (2023: £Nil).

 

The Centre paid RHASS £Nil (2023: £Nil) in dividends.

 

 

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