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REGISTERED NUMBER: SC196090 (Scotland)










Audited Financial Statements

for the Year Ended 31 March 2024

for

Orkney Cheese Company Limited

Orkney Cheese Company Limited (Registered number: SC196090)






Contents of the Financial Statements
for the Year Ended 31 March 2024




Page

Company Information 1

Statement of Financial Position 2

Notes to the Financial Statements 3


Orkney Cheese Company Limited

Company Information
for the Year Ended 31 March 2024







DIRECTORS: N Gopal
S R Reid
E J Wood
M D J Chatters
D D Ritch
G J Thomson



REGISTERED OFFICE: Crowness Road
Hatston Industrial Estate
Kirkwall
Orkney
KW15 1RG



REGISTERED NUMBER: SC196090 (Scotland)



AUDITORS: Orcadia
Chartered Accountants and Registered Auditors
1-3 East Road
Kirkwall
Orkney
KW15 1HZ



BANKERS: Bank of Scotland
56 Albert Street
Kirkwall
Orkney
KW15 1HJ



SOLICITORS: Lows Orkney
5 Broad Street
Kirkwall
Orkney
KW15 1DH

Orkney Cheese Company Limited (Registered number: SC196090)

Statement of Financial Position
31 March 2024

2023 2024
£    £    Notes £    £   
FIXED ASSETS
1,024,125 Tangible assets 4 1,270,318

CURRENT ASSETS
2,910,051 Stocks 2,756,526
840,397 Debtors 5 1,022,023
75 Investments 6 75
2,130,361 Cash at bank and in hand 1,230,669
5,880,884 5,009,293
CREDITORS
1,052,027 Amounts falling due within one year 7 1,011,957
4,828,857 NET CURRENT ASSETS 3,997,336
5,852,982 TOTAL ASSETS LESS CURRENT
LIABILITIES

5,267,654

CREDITORS
(160,075 ) Amounts falling due after more than one year 8 (63,420 )

(122,070 ) PROVISIONS FOR LIABILITIES (87,660 )

(370,471 ) ACCRUALS AND DEFERRED INCOME (403,763 )
5,200,366 NET ASSETS 4,712,811

CAPITAL AND RESERVES
1,000,000 Called up share capital 1,000,000
1,098,306 Share premium 1,098,306
3,102,060 Retained earnings 2,614,505
5,200,366 SHAREHOLDERS' FUNDS 4,712,811

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 31 July 2024 and were signed on its behalf by:





E J Wood - Director


Orkney Cheese Company Limited (Registered number: SC196090)

Notes to the Financial Statements
for the Year Ended 31 March 2024

1. STATUTORY INFORMATION

Orkney Cheese Company Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared under the historical cost convention and are in accordance with applicable accounting standards.


Turnover
Turnover represents net invoiced sales of dairy products, excluding value added tax.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Land and buildings - 4% on cost and in accordance with the property
Plant and machinery etc - 25% on cost, 20% on reducing balance, 10% on reducing balance, 10% on cost and 4% on cost

Tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use.

Stocks
Stocks are stated at the lower of cost and net realisable value on a consistent basis year by year. The cost of finished goods includes production overheads together with an appropriate proportion of indirect overheads. Net realisable value is calculated as the estimated selling price less costs to complete and sell.

At the end of each reporting period inventories are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is recognised the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

Orkney Cheese Company Limited (Registered number: SC196090)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' 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 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 re 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Orkney Cheese Company Limited (Registered number: SC196090)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

2. ACCOUNTING POLICIES - continued

Leasing and hire purchase commitments
Assets obtained under finance leases and hire purchase contracts are capitalised in the balance sheet and are depreciated over their useful lives. The interest element of the rental obligations are charged to profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding.

Operating leases
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the lease term.


Impairment of non-financial assets
At each reporting period date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets may 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.

At each balance sheet date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets may have suffered an impairment loss. If there is such an indication the recoverable amount of the asset (or asset's cash generating unit) is compared to the carrying amount of the asset (or asset's cash generating unit).

The recoverable amount of the asset (or asset's cash generating unit) is the higher of the fair value less costs to sell and value in use. Value in use is defined as the present value of the future cash flows before interest and tax obtainable as a result of the asset's (or asset's cash generating unit's) continued use. These cash flows are discounted using a pre-tax discount rate that represents the current market risk-free rate and the risks inherent in the asset.

If the recoverable amount of the asset (or asset's cash generating unit) is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in the profit and loss account, unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation.
Thereafter any excess is recognised in profit or loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset (or asset's cash generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in the profit and loss account.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 24 (2023 - 24 ) .

Orkney Cheese Company Limited (Registered number: SC196090)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

4. TANGIBLE FIXED ASSETS
Plant and
Land and machinery
Totals buildings etc
£    £    £   
COST
At 1 April 2023 3,269,945 55,880 3,214,065
Additions 417,980 - 417,980
Disposals (500,837 ) - (500,837 )
At 31 March 2024 3,187,088 55,880 3,131,208
DEPRECIATION
At 1 April 2023 2,245,820 41,224 2,204,596
Charge for year 121,378 1,708 119,670
Eliminated on disposal (450,428 ) - (450,428 )
At 31 March 2024 1,916,770 42,932 1,873,838
NET BOOK VALUE
At 31 March 2024 1,270,318 12,948 1,257,370
At 31 March 2023 1,024,125 14,656 1,009,469

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 974,624 809,491
Other debtors 47,399 30,906
1,022,023 840,397

6. CURRENT ASSET INVESTMENTS
2024 2023
£    £   
Unlisted investments 75 75

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 81,803 31,379
Amounts owed to group undertakings 543,037 658,273
Taxation and social security 14,847 19,497
Other creditors 372,270 342,878
1,011,957 1,052,027

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Amounts owed to group undertakings 43,354 43,354
Other creditors 20,066 116,721
63,420 160,075

Orkney Cheese Company Limited (Registered number: SC196090)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

9. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Orkney Islands Council 116,721 116,721

The loans from Orkney Islands Council are secured by a Standard Security over the assets of the company.

10. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Steven J Sinclair BA CA (Senior Statutory Auditor)
for and on behalf of Orcadia

11. OPERATING LEASE COMMITMENTS

At the year end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:-
20242023
££
26,72661,919

12. RELATED PARTY DISCLOSURES

Creditors falling due after more than one year include an interest free loan of £43,354 due to Orkney Milk Limited which has no formal repayment terms.

13. FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

In common with many other businesses of our size and nature we use our auditors to provide tax advice and to represent us, as necessary, at tax tribunals.