Company registration number SC074048 (Scotland)
SOUTH FORNET ESTATES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
PAGES FOR FILING WITH REGISTRAR
SOUTH FORNET ESTATES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
SOUTH FORNET ESTATES LIMITED
BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
401,562
838,051
Investment properties
4
3,388,180
2,852,133
Investments
5
100
100
3,789,842
3,690,284
Current assets
Stocks
7
176,321
140,819
Debtors
8
126,482
110,986
Cash at bank and in hand
-
0
41,696
302,803
293,501
Creditors: amounts falling due within one year
9
(735,213)
(552,578)
Net current liabilities
(432,410)
(259,077)
Total assets less current liabilities
3,357,432
3,431,207
Creditors: amounts falling due after more than one year
10
(1,505,424)
(1,609,169)
Provisions for liabilities
(283,185)
(409,951)
Net assets
1,568,823
1,412,087
Capital and reserves
Called up share capital
2
2
Revaluation reserve
909,596
909,596
Capital redemption reserve
361,597
361,597
Profit and loss reserves
297,628
140,892
Total equity
1,568,823
1,412,087

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

SOUTH FORNET ESTATES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MAY 2024
31 May 2024
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 22 January 2025
N G STILL
N G Still
Director
Company Registration No. SC074048
SOUTH FORNET ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
1
Accounting policies
Company information

South Fornet Estates Limited is a private company limited by shares incorporated in Scotland. The registered office is South Fornet, Skene, Aberdeenshire, AB32 7BX.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

These financial statements are prepared on the going concern basis. At the balance sheet date, the company had net current liabilities of £432,410. Included within these liabilities are amounts due to the director and members of the directors family of £197,787. These loans, although payable on demand, will not be repaid at the detriment of other creditors. true

 

The company has a combination of bank loans and an overdraft facility of £175k in place therefore the director is of the opinion that the company has adequate working capital to execute its operations over the next 12 months.

 

The financial statements are prepared on a going concern basis which assumes that the company will continue to meet its liabilities as they fall due. Furthermore, the director has confirmed they shall continue to support the company to facilitate its ability to continue trading as a going concern for the foreseeable future. As a result, the director has a reasonable expectation that the company will continue in operational existence for the foreseeable future.

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.

SOUTH FORNET ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 4 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold property
7-20 years
Plant & machinery
4-25 years
Office equipment
4 years
Fixtures & fittings
10 years

Freehold land and assets in the course of construction are not depreciated.

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 properties

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. Investment property is carried at fair value determined annually by the director and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of comprehensive income.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

1.7
Stocks and work in progress

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash at bank and in hand

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.

1.9
Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade debtors and creditors. These are measured at amortised cost and are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

SOUTH FORNET ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 5 -
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.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
4
4
SOUTH FORNET ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 6 -
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Fixtures & fittings
Total
£
£
£
£
Cost
At 1 June 2023
881,989
482,406
187,109
1,551,504
Additions
-
0
1,000
-
0
1,000
Transfers
(400,000)
-
0
-
0
(400,000)
At 31 May 2024
481,989
483,406
187,109
1,152,504
Depreciation and impairment
At 1 June 2023
228,475
335,191
149,787
713,453
Depreciation charged in the year
1,812
28,601
7,076
37,489
At 31 May 2024
230,287
363,792
156,863
750,942
Carrying amount
At 31 May 2024
251,702
119,614
30,246
401,562
At 31 May 2023
653,514
147,215
37,322
838,051
4
Investment property
2024
£
Fair value
At 1 June 2023
2,852,133
Additions
136,047
Transfers
400,000
At 31 May 2024
3,388,180

The land was revalued by the director in consultation with independent chartered surveyors in 2011. Following the development of the land, the values recorded in these accounts were reviewed in line with open market value for existing use and the director considered that there has been no material change in property values at the year end.

5
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
100
100
6
Subsidiaries

Details of the company's subsidiaries at 31 May 2024 are as follows:

SOUTH FORNET ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
6
Subsidiaries
(Continued)
- 7 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
ERA Aggregates Limited
Scotland
Construction Recycling
£1 Ordinary
100.00
7
Stocks
2024
2023
£
£
Stocks
176,321
140,819
8
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
115,223
81,809
Other debtors
11,259
29,177
126,482
110,986
9
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
230,947
80,000
Trade creditors
88,703
42,048
Corporation tax
26,499
26,499
Other taxation and social security
68,178
56,051
Other creditors
320,886
347,980
735,213
552,578
10
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
11
1,502,000
1,582,000
Other Creditors
3,424
27,169
1,505,424
1,609,169
SOUTH FORNET ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
11
Loans and overdrafts
2024
2023
£
£
Bank loans
1,582,000
1,662,000
Bank overdrafts
150,947
-
0
Other loans
124,980
124,980
1,857,927
1,786,980
Payable within one year
355,927
204,980
Payable after one year
1,502,000
1,582,000

The bank loan was refinanced in November 2022 for a 5 year agreement with a capital repayment of £20,000 per quarter. Following the 5 year loan term, this will then be reconsidered for a refinance.

 

 

12
Related party transactions

During the year, the company made advances to the director of £121,333. Credits were received of £101,915 which resulted in amounts due to the director at the year end of £30,142 (2023 - £49,560). The loan is unsecured and interest free with no fixed repayment terms in place.

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