Company registration number SC076332 (Scotland)
UPPERMILL FARMS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 3 MAY 2024
PAGES FOR FILING WITH REGISTRAR
UPPERMILL FARMS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
UPPERMILL FARMS LIMITED
BALANCE SHEET
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
2,996,435
2,929,201
Investment property
5
39,595,777
34,485,725
Investments
6
1,037,497
966,294
43,629,709
38,381,220
Current assets
Stocks
239,205
243,840
Debtors
7
1,287,633
1,124,731
Cash at bank and in hand
24,067,029
27,877,168
25,593,867
29,245,739
Creditors: amounts falling due within one year
8
(19,016,335)
(19,501,346)
Net current assets
6,577,532
9,744,393
Total assets less current liabilities
50,207,241
48,125,613
Creditors: amounts falling due after more than one year
9
(17,790)
Provisions for liabilities
(84,596)
Net assets
50,122,645
48,107,823
Capital and reserves
Called up share capital
1,000
1,000
Profit and loss reserves
50,121,645
48,106,823
Total equity
50,122,645
48,107,823
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 3 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their 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.
UPPERMILL FARMS LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 27 January 2025 and are signed on its behalf by:
Mr B Allan
Director
Company Registration No. SC076332
UPPERMILL FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 3 MAY 2024
- 3 -
1
Accounting policies
Company information
Uppermill Farms Limited is a private company limited by shares incorporated in Scotland. The registered office is Castle Office, Castle Farm, Kintore, Inverurie, Aberdeenshire, United Kingdom, AB51 0XR.
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, modified to include the revaluation of investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Revenue from farming is recognised when the livestock or produce is delivered to the customer. Revenue from property sales is recognised when the properties are sold. Revenue from property letting is recognised in the period for which the rent is due. Turnover is stated net of Value Added Tax.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost which is the purchase price plus any directly attributable costs. Subsequently the assets are stated at cost less any accumulated depreciation and impairment losses.
An increase or decrease in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in the profit and loss reserve.
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Farms
2% straight line
Implements & Machinery
15% reducing balance and over 15 years
No depreciation is provided on investment properties which are revalued on an annual basis.
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.
UPPERMILL FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 MAY 2024
1
Accounting policies
(Continued)
- 4 -
1.6
Fixed asset investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
1.7
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
1.8
Stocks
Stocks are valued at the lower of cost and net realisable value.
1.9
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.
1.10
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.
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.
UPPERMILL FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 MAY 2024
1
Accounting policies
(Continued)
- 5 -
1.11
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.
1.12
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.
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.
1.13
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
UPPERMILL FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 MAY 2024
- 6 -
2
Judgements and key sources of estimation uncertainty
Key sources of estimation uncertainty
In preparing the financial statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with past experiences and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual value of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
Determining fair value of investment properties
Although investment property valuations are carried out by an independent professional valuer using a recognised basis of valuation and updated by the directors, a degree of judgement is required in establishing fair values.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
3
3
UPPERMILL FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 MAY 2024
- 7 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 4 May 2023
2,866,596
1,025,405
3,892,001
Additions
120,679
24,000
144,679
Disposals
(26,087)
(26,087)
At 3 May 2024
2,987,275
1,023,318
4,010,593
Depreciation and impairment
At 4 May 2023
214,077
748,723
962,800
Depreciation charged in the year
13,542
58,516
72,058
Eliminated in respect of disposals
(20,700)
(20,700)
At 3 May 2024
227,619
786,539
1,014,158
Carrying amount
At 3 May 2024
2,759,656
236,779
2,996,435
At 3 May 2023
2,652,519
276,682
2,929,201
5
Investment property
2024
£
Fair value
At 4 May 2023
34,485,725
Additions
5,110,052
At 3 May 2024
39,595,777
The investment properties were valued on 3 May 2024 at fair value by the company directors. The deficit on revaluation has been debited through the statement of income and retained earnings in the year under review. The original cost of the investment properties was £43,107,322.
6
Fixed asset investments
2024
2023
£
£
Other investments
1,037,497
966,294
UPPERMILL FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 MAY 2024
6
Fixed asset investments
(Continued)
- 8 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 4 May 2023
966,294
Additions
9,765
Valuation changes
61,438
At 3 May 2024
1,037,497
Carrying amount
At 3 May 2024
1,037,497
At 3 May 2023
966,294
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
58,569
39,806
Other debtors
1,229,064
1,079,279
1,287,633
1,119,085
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset
5,646
Total debtors
1,287,633
1,124,731
8
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
69,914
12,118
Corporation tax
358,505
484,515
Other taxation and social security
35,289
63,976
Other creditors
18,552,627
18,940,737
19,016,335
19,501,346
UPPERMILL FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 MAY 2024
- 9 -
9
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
17,790
10
Related party transactions
The company has common directors with Malcolm Allan Housebuilders Limited and during the year under review the company contracted Malcolm Allan Housebuilders Limited to develop and refurbish properties at a value of £696,571 (2023 - £305,422). The company paid interest of £1,206,982 (2023 - £943,615) to Malcolm Allan Housebuilders Limited on the loan due to the company.
The balance included at the year end in other creditors due within one year to Malcolm Allan Housebuilders Limited was £17,875,079 (2023 - £18,281,359).