REGISTERED NUMBER: |
KILTANE LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 |
REGISTERED NUMBER: |
KILTANE LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
Page |
Strategic Report | 1 |
Report of the Directors | 2 |
Report of the Independent Auditors | 4 |
Profit and Loss Account | 7 |
Other Comprehensive Income | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 10 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 13 |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their strategic report for the year ended 30 June 2024. |
The results for the year and financial position of the company are as shown in the annexed financial statements. |
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face. |
REVIEW OF BUSINESS |
Our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole. This year it has returned to turnover, having previously been gross assets. |
Turnover increased from £12,960,961 for the year ended 30 June 2023 to £19,214,471 for the year ended 30 June 2024. Net assets at 30 June 2024 have risen to £16,519,486 from £12,216,402 at 30 June 2023. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors regularly review the risks that we believe could seriously affect the company's performance, future prospects and ability to trade and we are satisfied that sufficient controls are in place to reduce these risks to an acceptable level. |
The directors have considered the risks associated with their supply chain and the associated currency exchange rate risks and have taken all steps to ensure the relationships built up remain strong and ready for any changes that arise together with the close monitoring of currency rate movements. |
FUTURE DEVELOPMENTS |
The directors expect that turnover for current year will show an increase on 2024. The company will continue to invest in people, processes and systems to help deliver business growth. |
ON BEHALF OF THE BOARD: |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their report with the financial statements of the company for the year ended 30 June 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was the retail of cashmere, woollens, tweeds and other luxury products to international and domestic tourists. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 June 2024 will be £53,053 (2023: £53,053). |
POST BALANCE SHEET EVENTS |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
The company's operations expose it to a variety of financial risks that include the effects of changes in commodity market prices, exchange rate risk, credit risk, liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring all levels of the related costs. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen in accordance with Section 414C(11) Companies Act 2006 to set out in the company's Strategic Report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the Directors' Report. It has done so in respect of future developments. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable laws 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 the affairs of the company and of the profit and 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; |
- state whether applicable accounting standards have been followed subject to any material departures disclosed and explained in the financial statements; |
- 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. |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KILTANE LIMITED |
Opinion |
We have audited the financial statements of Kiltane Limited (the 'company') for the year ended 30 June 2024 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 30 June 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. |
Basis for opinion |
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 Auditors' 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KILTANE LIMITED |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where 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 directors' 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 Statement of Directors' Responsibilities set out on page two, 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 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. |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations applicable to the company through discussions with directors and other management. |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, FRS102, taxation legislation and Sale of Goods Act. We also considered those laws and regulations having an indirect impact but nonetheless significant, including, GDPR, anti-bribery, employment, environmental and health and safety legislation; |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KILTANE LIMITED |
Auditors' responsibilities for the audit of the financial statements - continued |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 2 were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
In assessing the risk of material misstatements due to fraud in relation to revenue recognition, we: |
- | performed analytical procedures to identify unusual or unexpected relationships; |
- | performed walkthrough tests and substantive sample testing; and |
- | carried out cut off testing to ensure revenue recognised in the correct period. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
Caledonia House |
89 Seaward Street |
Glasgow |
G41 1HJ |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
PROFIT AND LOSS ACCOUNT |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
5,772,738 | 1,292,437 |
Other operating income | 4 |
Gain on revaluation of investment property | - | 1,492,626 |
5,950,651 | 2,936,410 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION | 7 |
Tax on profit | 8 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Revalued heritable property |
Income tax relating to other comprehensive income |
( |
) |
( |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
BALANCE SHEET |
30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investment property | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Non-distributable reserve | 22 |
Capital redemption reserve | 22 |
Revaluation reserve | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Non-distributable |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Dividends | - | ( |
) | - |
Total comprehensive income | - |
Transfer of revaluation | - | (1,892,626 | ) | 1,892,626 |
Transfer of deferred tax on |
revaluation | - | 680,829 | (680,829 | ) |
Balance at 30 June 2023 |
Changes in equity |
Dividends | - | ( |
) | - |
Total comprehensive income | - |
Transfer of revaluation | - | (131,500 | ) | 131,500 |
Transfer of deferred tax on |
revaluation | - | 32,875 | (32,875 | ) |
Transfer of heritable property |
to revaluation reserve | - | - | (2,915,145 | ) |
Balance at 30 June 2024 |
Capital |
redemption | Revaluation | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Dividends | - | - | ( |
) |
Total comprehensive income |
Balance at 30 June 2023 |
Changes in equity |
Dividends | - | - | ( |
) |
Total comprehensive income |
Transfer of heritable property |
to revaluation reserve | - | 2,915,145 | - |
Balance at 30 June 2024 |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of property plant and equipment | ( |
) | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
3,438,141 |
Cash and cash equivalents at end of year | 2 | 1,530,069 | 5,858,436 |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Gain on revaluation of fixed assets | - | (1,492,626 | ) |
Finance costs | 255,327 | 276,938 |
6,129,529 | 1,636,244 |
(Increase)/decrease in stocks | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2024 |
30/6/24 | 1/7/23 |
£ | £ |
Cash and cash equivalents | 1,530,069 | 5,858,436 |
Year ended 30 June 2023 |
30/6/23 | 1/7/22 |
£ | £ |
Cash and cash equivalents | 5,858,436 | 3,438,141 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
At 1/7/23 | Cash flow | At 30/6/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 5,858,436 | (4,328,367 | ) | 1,530,069 |
5,858,436 | ( |
) | 1,530,069 |
Debt |
Debts falling due within 1 year | (1,256,927 | ) | 662,455 | (594,472 | ) |
Debts falling due after 1 year | (3,829,859 | ) | 2,980,560 | (849,299 | ) |
(5,086,786 | ) | 3,643,015 | (1,443,771 | ) |
Total | 771,650 | (685,352 | ) | 86,298 |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | STATUTORY INFORMATION |
Kiltane Limited is a private company incorporated in Scotland. The registered office is Caledonia House, 89 Seaward Street, Glasgow, G41 1HJ. |
The financial statements are presented in Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. There were no material departures from this standard. |
Going concern |
After reviewing the company's adjusted forecasts, projections and post year end performance, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements. |
Critical accounting judgements |
The company considers on an annual basis the judgements that are made by directors when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements. In preparing these financial statements, the directors have the following judgements: |
- Whether a stock provision is required in the financial statements at the year end. |
- Determination of whether leases entered into by the company as a lessee are operating leases or hire purchase agreements. These decisions depend on the assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. |
Key sources of estimation uncertainty |
In the application of the company's accounting policies, the directors are required to make estimates and assumptions about the carrying amounts 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 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The directors consider the key sources of estimation uncertainty to be as follows: - |
- Tangible fixed assets (note 11) are depreciated over their estimated useful lives. The actual lives of the assets are assessed annually and may vary depending on several factors. In re-assessing asset lives, factors such as usage and maintenance programmes are taken into account. The directors assessed that no changes were required to the estimated useful lives of the tangible fixed assets and, therefore, determined that the stated depreciation policies applied in prior years remain appropriate. |
- Determination of the valuation placed on stock - stock levels are considered across all retail outlets and the warehouse in relation to consideration of damaged and obsolete stock to ensure appropriate write offs are made. |
- Intangible fixed assets (note 10) are amortised over their estimated useful lives. The actual lives of the assets are assessed annually and various factors are considered in this. These factors include the ongoing income from the brand and its market standing. The directors assessed that no changes were required to the estimated useful lives of the intangible fixed assets and, therefore, determined that the stated amortisation policies applied in prior years remain appropriate. |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents net invoiced sales of goods, excluding value added tax. The company's policy is to recognise revenue when substantively all risks and rewards in connection with the goods have been passed to the buyer. |
Store revenue is recognised at the point of sale of a product to the customer. |
E-commerce revenue is recognised when goods are delivered to the customer. |
Wholesale revenue is recognised at the point that control of the goods has passed to the customer, which is typically upon delivery. |
Rental income |
Rentals receivable under operating leases are charged to the profit and loss on a straight line basis over the period of the lease. |
Goodwill |
Positive purchased goodwill arising on acquisitions is capitalised, classified as an asset on the balance sheet and amortised over its estimated useful life up to a maximum of 20 years. This length of time is presumed to be the maximum useful life of purchased goodwill because it is difficult to make projections beyond this period. Goodwill is reviewed for impairment at the end of the first full financial year following each acquisition and subsequently, as and when necessary, if circumstances emerge that indicate that the carrying value may not be recoverable. |
Intangible assets |
Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is calculated, using the straight-line method, to allocate the depreciable amount of the assets to their residual values over their estimated useful life. Intellectual property, comprising trademarks and domain names are being amortised evenly over their estimated useful life of 5 years. This was based on the company objective of absorbing the brand name acquired into its own unique brand. |
Amortisation is included in administrative expenses in the profit and loss account. |
Where factors indicate that residual value or useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances. |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Heritable property | - |
Leasehold improvements | - |
Property improvements | - |
Fixtures & equipment | - |
Motor vehicles | - |
Computer equipment | - |
Tangible fixed assets (excluding heritable property) are included in the financial statements at cost less accumulated depreciation and impairment losses. |
At each balance sheet date, the directors review the carrying amounts of tangible fixed assets (excluding heritable property) to determine whether there is any indication that any items have suffered impairment loss and that if any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any an impairment loss is recognised in the profit and loss account. Where it is not possible to estimate the recoverable amount of the asset, the directors estimate the recoverable amount of the cash-generating unit to which the asset belongs. |
Heritable property is carried at its revalued amounts, being fair value at the date of valuation less any subsequent depreciation and impairment losses. Revaluations are performed by professionally qualified valuers with sufficient regularity to ensure that the carrying amounts do not differ materially from those that would be determined using fair values. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Where estimated residual value at the balance sheet date is considered to be equivalent to fair value, no depreciation will be charged. |
Any revaluation increase in the carrying amount of heritable property is recognised in other comprehensive income and included in a non-distributable reserve in equity, except to the extent that it reverses a revaluation decrease of the same asset previously recognised in the profit or loss, in which case the increase is credited to the profit and loss to the extent of the decrease previously expended. Decreases that offset previous increases of the same asset are charged in other comprehensive income and debited against the non-distributable reserve in equity: decreases exceeding the balance in non-distributable reserve relating to an asset are recognised in the profit and loss. Each year the difference between depreciation based on the revalued carrying amount of the asset recognised in profit or loss and depreciation based on the asset's original cost is transferred from non-distributable reserve to retained earnings. |
Tangible fixed assets are only capitalised if their acquisition cost is above £1,000. |
Investment property |
The company holds an investment property for rental purposes. Investment properties are accounted for as follows: |
(i) Investment properties are initially recorded at cost which includes purchase cost and any directly attributable expenditure. |
(ii) Thereafter, investment properties are revalued at each balance sheet date to their fair value, where this can be measured reliably. |
(iii) The surplus or deficit on revaluation in the financial year is recognised in the profit and loss account for that year. Revaluation gains and losses are accumulated in the profit and loss account reserve, unless the revaluation amount exceeds original cost in which case, a transfer is made of the surplus to a non-distributable reserve in the balance sheet. |
(iv) Deferred taxation is provided on any gains at the rate expected to apply when a property is sold. |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stock has been valued at the lower of cost and estimated selling price less costs to sell. Stock is recognised as an expense in the period in which the related revenue is recognised. |
Due to the nature of the products supplied, the directors deem it necessary to consider the recoverability of the cost of the stock and the associated provisioning required due to changing consumer seasonal demands and the condition of the stock. |
Tax |
Current tax is recognised at the amount of tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted at the balance sheet date. |
The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date. |
With the exception of changes arising on the initial recognition of a business combination, the tax expense is presented either in profit or loss, other comprehensive income or statement of changes in equity depending on the transaction that resulted in the tax expense. |
Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the period. Contributions payable for the year are charged in the profit and loss account. |
Employee benefits |
The costs of short-term employee benefits are recognised as a liability and an expense. |
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. |
The cost of any unpaid bonuses is recognised in the period in which the employee's services are received. |
Operating lease commitments |
Rentals paid applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor, are charged against or credited to profits on a straight line basis over the period of the lease. |
Lease premiums |
Lease premiums paid in relation to operating leases are released on a straight line basis over the period of the lease. |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase commitments |
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the profit and loss account on a straight line basis. |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like bank loans, loans to related parties and trade and other accounts receivable and payable. |
Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received. |
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in profit or loss. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities. |
Provisions |
Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom |
Europe |
Rest of the World | 281,705 | 215,120 |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
4. | OTHER OPERATING INCOME |
2024 | 2023 |
£ | £ |
Commission received | 61,527 | 8,630 |
Corporation tax supplement |
Rent received |
177,913 | 151,347 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Sales and trading | 93 | 21 |
Warehouse and administration | 23 | 86 |
The key management personnel of the company comprise a director and chief operating officer. During the year, the total employee benefits for the key management personnel were £94,206 (2023: £90,855). |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank overdraft interest |
Bank term loan interest |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
7. | PROFIT BEFORE TAXATION |
The profit is stated after charging: |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
Auditors' remuneration for non audit work |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Overprovision in prior year | - | (20,491 | ) |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
UK corporation tax has been charged at 25% . |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Adjustments to tax charge in respect of previous periods | ( |
) |
property |
Deferred tax movement | (3,957 | ) | 411,394 |
deferred tax |
Revaluation of properties | - | (305,929 | ) |
Tax losses from previous years utilised | - | (193,943 | ) |
Total tax charge | 1,437,812 | 452,775 |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
8. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Revalued heritable property | (32,875 | ) | 98,625 |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revalued heritable property | (257,058 | ) | 142,942 |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Final |
10. | INTANGIBLE FIXED ASSETS |
Intellectual |
Goodwill | property | Totals |
£ | £ | £ |
COST |
At 1 July 2023 |
and 30 June 2024 |
AMORTISATION |
At 1 July 2023 |
and 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
11. | TANGIBLE FIXED ASSETS |
Heritable | Leasehold | Property |
property | improvements | improvements |
£ | £ | £ |
COST OR VALUATION |
At 1 July 2023 |
Additions |
Disposals | ( |
) |
Revaluations |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
Fixtures | Motor | Computer |
& equipment | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 July 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
Revaluations |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Cost or valuation at 30 June 2024 is represented by: |
Heritable | Leasehold | Property |
property | improvements | improvements |
£ | £ | £ |
Valuation in 2007 | 400,496 | - | - |
Valuation in 2008 | 150,000 | - | - |
Valuation in 2012 | 144,986 | - | - |
Valuation in 2013 | 585,000 | - | - |
Valuation in 2016 | 250,000 | - | - |
Valuation in 2017 | 850,000 | - | - |
Valuation in 2018 | 600,000 | - | - |
Valuation in 2021 | (228,060 | ) | - | - |
Valuation in 2023 | 400,000 | - | - |
Valuation in 2024 | 131,500 | - | - |
Cost | 3,566,078 | 446,061 | 23,879 |
6,850,000 | 446,061 | 23,879 |
Fixtures | Motor | Computer |
& equipment | vehicles | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2007 | - | - | - | 400,496 |
Valuation in 2008 | - | - | - | 150,000 |
Valuation in 2012 | - | - | - | 144,986 |
Valuation in 2013 | - | - | - | 585,000 |
Valuation in 2016 | - | - | - | 250,000 |
Valuation in 2017 | - | - | - | 850,000 |
Valuation in 2018 | - | - | - | 600,000 |
Valuation in 2021 | - | - | - | (228,060 | ) |
Valuation in 2023 | - | - | - | 400,000 |
Valuation in 2024 | - | - | - | 131,500 |
Cost | 1,580,023 | 35,020 | 269,277 | 5,920,338 |
1,580,023 | 35,020 | 269,277 | 9,204,260 |
If the heritable properties had not been revalued they would have been included at the following historical cost: |
2024 | 2023 |
£ | £ |
Cost | 3,566,078 | 1,897,578 |
Aggregate depreciation | 293,497 | 293,497 |
A valuation was carried out on assets included within heritable properties on 30 June 2024 by Shepherd Chartered Surveyors, who are professionally qualified valuers. The valuers deemed a market valuation of £6,850,000 in respect of properties held, to be an appropriate fair value at the balance sheet date. |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
12. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 July 2023 |
and 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
A valuation was carried out on this property on 30 June 2024 by Shepherd Chartered Surveyors, who are professionally qualified valuers. The valuers deemed this market valuation of £4,800,000 to be an appropriate fair value at the balance sheet date. |
13. | STOCKS |
2024 | 2023 |
£ | £ |
Stocks |
Stock recognised in cost of sales during the year as an expense was £7,208,385 (2023: £6,349,634). |
14. | DEBTORS |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Other debtors |
Lease premium | 44,909 | 44,909 |
VAT |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Other debtors |
Lease premium | 306,974 | 306,883 |
Aggregate amounts |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Trade creditors |
Corporation tax |
Social security and other taxes |
VAT | - | 385,643 |
Other creditors |
Accruals and deferred income |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 17) |
17. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more than 5 years | - | 566,460 |
The amount due in instalments over five years will be repaid in equal gross monthly instalments at an interest rate currently in the region of 3%. |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
18. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank Loans | 1,031,770 | 2,386,785 |
Bank of Scotland PLC holds a bond and floating charge over the company and all of its assets in respect of the bank loan and overdraft facilities. Bank of Scotland PLC also holds standard securities over the company's heritable and investment properties. |
20. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 1,534,734 | 1,505,816 |
Deferred |
tax |
£ |
Balance at 1 July 2023 |
Accelerated capital allowances | 28,918 |
Balance at 30 June 2024 |
The provision for deferred tax consists of the tax effect of timing differences in respect of the excess of taxation allowances over depreciation on fixed assets and the tax effect of revalued fixed assets. There are no unused tax losses or unused tax credits. |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 400,000 | 400,000 |
The rights attached to the Ordinary shares shall be determined from time to time in meeting by the directors. At the balance sheet date, they had full voting rights and dividend entitlement. |
KILTANE LIMITED (REGISTERED NUMBER: SC175001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
22. | RESERVES |
Capital |
Retained | Non-distributable | redemption | Revaluation |
earnings | reserve | reserve | reserve | Totals |
£ | £ | £ | £ | £ |
At 1 July 2023 | 11,816,402 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Revaluation in year | 98,625 | - | - | - | 98,625 |
Transfer of revaluation | (131,500 | ) | 131,500 | - | - | - |
Transfer of deferred tax on |
revaluation | 32,875 | (32,875 | ) | - | - | - |
Transfer of heritable property |
to revaluation reserve | - | (2,915,145 | ) | - | 2,915,145 | - |
At 30 June 2024 | 16,119,486 |
At the 30th of June 2024 it was deemed appropriate to transfer the revaluation of heritable property to a revaluation reserve and continue presenting investment property within non-distributable reserves. |
23. | PENSION COMMITMENTS |
The company operates various defined contribution pension schemes for the directors and staff. Contributions payable for the period were £33,515 (2023: £26,664). The assets of the schemes are held separately from those of the company in independently administered funds. |
At the balance sheet date, £8,003 (2023: £6,353) was due to be paid to the schemes. |
24. | RELATED PARTY DISCLOSURES |
The company is controlled by the director, J M Keane. |
Included in other debtors is £284,215 (2023: £175,590) owing from Kiltane (Royal Mile) Limited, a company in which director, J M Keane, has a beneficial interest. This amount is interest free and repayable within one year. |
Also included in other debtors is £409,941 (2023: £365,234) owing from Kiltane Developments Limited, a company controlled by director, J M Keane. This amount is interest free and repayable within one year. |
Included in other debtors is £368,198 (2023: £286,449) owing from Kiltane Properties Limited, a company controlled by director, J M Keane. |
Included in other creditors is £57,120 (2023: £60,291) owing to Kiltane Investments LLP which is controlled by director, J M Keane. This amount is interest free and repayable within one year. |
Dividends of £50,400 (2023: £50,400) and £2,653 (2023: £2,653) respectively were paid to directors J M Keane and Mrs K Keane during the period. |
25. | POST BALANCE SHEET EVENTS |
Post year end, the company entered into a new leasing agreement during the normal course of business with a total commitment of £3,000,000. |