Company registration number SC062684 (Scotland)
A F SCOTT & COMPANY (HOTELIERS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
A F SCOTT & COMPANY (HOTELIERS) LIMITED
COMPANY INFORMATION
Directors
Mr A Scott
Mr C W Scott
Mr E C Scott
Mr M A F Scott
Mrs K M Ryan
Mr D C Ryan
Mrs C O Scott
Mrs A Scott
Company number
SC062684
Registered office
46 Wellmeadow
Blairgowrie
Perthshire
United Kingdom
PH10 6NH
Auditor
MMG Archbold Limited
78-84 Bell Street
Dundee
DD1 1RQ
A F SCOTT & COMPANY (HOTELIERS) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 21
A F SCOTT & COMPANY (HOTELIERS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 30 April 2024.
Review of the business
During the year ended 30 April 2024 turnover increased by 12.7% from £3,037k to £3,422k. An operating profit before tax was made during the year of £391k (2023 - £308k).
Principal risks and uncertainties
The company is subject to changes in both supplier and consumer markets as well as the economic climate which drives customer spending patterns. In seeking to minimise its exposure to these risks the company's management continually reviews its policies in respect to sourcing, customer engagement and retention.
It is company policy that customers who wish to trade on credit terms are subject to credit vetting procedures. In addition, receivable balances are monitored on an ongoing basis which results in the company's exposure to bad debts being insignificant.
Key performance indicators
In reviewing the company's performance, management regularly consider and review the company's working capital requirements and overall profitability for each trading period.
Mr M A F Scott
Director
29 January 2025
A F SCOTT & COMPANY (HOTELIERS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the company continued to be that of hoteliers, publicans and the letting of commercial and domestic properties.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr A Scott
Mr C W Scott
Mr E C Scott
Mr M A F Scott
Mrs K M Ryan
Mr D C Ryan
Mrs C O Scott
Mrs A Scott
Mrs D W Scott
(Resigned 11 June 2023)
Auditor
In accordance with the company's articles, a resolution proposing that MMG Archbold Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law 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 affairs of the company and of the profit or 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; and
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.
A F SCOTT & COMPANY (HOTELIERS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7. It has done so in respect of the review of the business and principle risks and uncertainties.
Statement of disclosure to auditor
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 auditor is unaware, and each direct has taken all the steps the he or she ought to have taken as director in order to make himself or herself aware of any relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr M A F Scott
Director
29 January 2025
A F SCOTT & COMPANY (HOTELIERS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF A F SCOTT & COMPANY (HOTELIERS) LIMITED
- 4 -
Opinion
We have audited the financial statements of A F Scott & Company (Hoteliers) Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 April 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.
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 Auditor's 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.
The directors are responsible for the other information. The 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
A F SCOTT & COMPANY (HOTELIERS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF A F SCOTT & COMPANY (HOTELIERS) LIMITED (CONTINUED)
- 5 -
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 directors' report.
We have nothing to report in respect of the following matters in relation to which 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 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 directors' responsibilities statement, 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 is 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.
Auditor's 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 an auditor's report 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.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud.
We identified the greater risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the misstatement of revenue. Our audit procedures to respond to these risks include:
- Enquiries of management about their own identification and assessment of the risks of irregularities.
- Testing of the appropriateness and correct authorisation of journal entries and any other significant transactions outside the ordinary course of business including those entered into with related parties.
- Review of significant estimates to ensure there is no indication of management bias.
- Testing of the completeness and correct allocation of revenue in the year.
Owing to the inherent limitation of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for the preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or provision of intentional misrepresentations.
A F SCOTT & COMPANY (HOTELIERS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF A F SCOTT & COMPANY (HOTELIERS) LIMITED (CONTINUED)
- 6 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 an auditor's report 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.
Paul Crichton BAcc CTA CA (Senior Statutory Auditor)
For and on behalf of MMG Archbold Limited, Statutory Auditor
Chartered Accountants
78-84 Bell Street
Dundee
DD1 1RQ
30 January 2025
A F SCOTT & COMPANY (HOTELIERS) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
3,422,774
3,037,271
Cost of sales
(2,002,757)
(1,801,568)
Gross profit
1,420,017
1,235,703
Administrative expenses
(1,031,857)
(943,620)
Other operating income
12,375
21,251
Operating profit
4
400,535
313,334
Interest payable and similar expenses
8
(9,076)
(5,698)
Profit before taxation
391,459
307,636
Tax on profit
9
(97,909)
(137,536)
Profit for the financial year
293,550
170,100
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 11 to 21 form part of these financial statements.
A F SCOTT & COMPANY (HOTELIERS) LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,598,186
2,713,404
Investment property
11
2,952,668
2,941,647
5,550,854
5,655,051
Current assets
Stocks
12
64,891
57,429
Debtors
13
520,163
359,293
Cash at bank and in hand
725,347
483,813
1,310,401
900,535
Creditors: amounts falling due within one year
14
(641,139)
(624,130)
Net current assets
669,262
276,405
Total assets less current liabilities
6,220,116
5,931,456
Creditors: amounts falling due after more than one year
15
(18,750)
(28,125)
Provisions for liabilities
Deferred tax liability
17
390,685
397,221
(390,685)
(397,221)
Net assets
5,810,681
5,506,110
Capital and reserves
Called up share capital
18
214,000
214,000
Other reserves
2,527,988
2,516,967
Profit and loss reserves
3,068,693
2,775,143
Total equity
5,810,681
5,506,110
The notes on pages 11 to 21 form part of these financial statements.
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 29 January 2025 and are signed on its behalf by:
Mr M A F Scott
Director
Company registration number SC062684 (Scotland)
A F SCOTT & COMPANY (HOTELIERS) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
Share capital
Fair value reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 May 2022
214,000
2,604,847
2,517,163
5,336,010
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
170,100
170,100
Transfers
-
(87,880)
87,880
-
Balance at 30 April 2023
214,000
2,516,967
2,775,143
5,506,110
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
293,550
293,550
Transfers
-
11,021
-
11,021
Balance at 30 April 2024
214,000
2,527,988
3,068,693
5,810,681
The notes on pages 11 to 21 form part of these financial statements.
A F SCOTT & COMPANY (HOTELIERS) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
282,280
345,528
Interest paid
(9,076)
(5,698)
Income taxes paid
(19,199)
Net cash inflow from operating activities
273,204
320,631
Investing activities
Purchase of tangible fixed assets
(8,148)
(345,039)
Proceeds from disposal of tangible fixed assets
27,000
Net cash used in investing activities
(8,148)
(318,039)
Financing activities
Payment of finance leases obligations
(23,522)
(109,956)
Net cash used in financing activities
(23,522)
(109,956)
Net increase/(decrease) in cash and cash equivalents
241,534
(107,364)
Cash and cash equivalents at beginning of year
483,813
591,177
Cash and cash equivalents at end of year
725,347
483,813
The notes on pages 11 to 21 form part of these financial statements.
A F SCOTT & COMPANY (HOTELIERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
1
Accounting policies
Company information
A F Scott & Company (Hoteliers) Limited is a private company limited by shares incorporated in Scotland. The registered office is 46 Wellmeadow, Blairgowrie, Perthshire, United Kingdom, PH10 6NH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.
1.2
Going concern
The directors are required to prepare the statutory financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. In satisfaction of this responsibility the directors have considered the company's ability to meet it liability as they fall due.true
The directors have reviewed the operation of the company, it's likely performance in the future an the level and sources of funding available to meet any potential shortfall. They have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
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.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Heritable Property
Not provided
Plant and machinery
5 and 6 years
Fixtures and fittings
20% on cost
Computer equipment
33% on cost
It is the company's policy to maintain buildings to a high standard and the resultant high residual value renders any depreciation immaterial. Consequently, the directors consider that buildings should not be depreciated. This departure from the Companies Act 2006 and Financial Reporting Standard 102 is necessary to provide a true and fair view. Provisions for permanent diminution in value are made in the profit and loss account as they occur.
Heritable property is shown at original historic cost or subsequent valuation as set out in the notes to the accounts.
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.
A F SCOTT & COMPANY (HOTELIERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
1.5
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
Stocks
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.
1.7
Financial instruments
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
A F SCOTT & COMPANY (HOTELIERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in the other comprehensive income or directly in equity.
Current or deferred taxation and liabilities are not discounted.
Current tax
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 balance sheet date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet.
Timing differences arise from the inclusion of income and expenses in the 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.
1.9
Retirement benefits
The company operates a defined contribution retirement pension scheme. Contributions payable to the company's pension scheme are charged to the profit or loss in the period which they relate.
1.10
Leases
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet . Those held under hire purchase are depreciated over their estimated useful life. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.
The interest element of these obligations is charged to the profit or loss over the relevant period. The capital element of the future payments is treated as a liability.
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.
A F SCOTT & COMPANY (HOTELIERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
1.11
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
2
Judgements and key sources of estimation uncertainty
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The company had the following sources of estimation uncertainty:
Valuation of land and buildings
As described in notes 9 & 10 to the financial statements, land and buildings are stated at fair value based on the valuation performed by an independent professional valuer Messrs Graham & Sibbald with experience in the location and category of property valued. This has been considered by the directors who feel that the valuations are still appropriate. The valuer used observable market prices adjusted as necessary for any difference in the future, location or condition of the specific asset.
Tangible fixed asset useful life and residual value
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Hotel and hospitality
2,782,525
2,224,133
Biomass
479,853
644,481
Property letting
160,396
168,657
3,422,774
3,037,271
2024
2023
£
£
Other revenue
Grants received
12,375
21,251
A F SCOTT & COMPANY (HOTELIERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(12,375)
(21,251)
Depreciation of owned tangible fixed assets
123,366
96,642
Depreciation of tangible fixed assets held under finance leases
-
7,163
Profit on disposal of tangible fixed assets
-
(21,370)
Operating lease charges
11,338
16,118
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
7,625
10,000
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
8
9
Management and administration
8
10
Operational
52
52
Total
68
71
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,046,914
904,866
Social security costs
71,200
62,181
Pension costs
17,839
7,388
1,135,953
974,435
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
141,630
139,622
A F SCOTT & COMPANY (HOTELIERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
42
238
Other finance costs:
Interest on finance leases and hire purchase contracts
9,034
5,460
9,076
5,698
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
104,445
Deferred tax
Origination and reversal of timing differences
(6,536)
55,530
Changes in tax rates
82,006
Total deferred tax
(6,536)
137,536
Total tax charge
97,909
137,536
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
391,459
307,636
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
97,865
76,909
Tax effect of expenses that are not deductible in determining taxable profit
44
Effect of change in corporation tax rate
82,006
Permanent capital allowances in excess of depreciation
(23,722)
Depreciation on assets not qualifying for tax allowances
2,343
Taxation charge for the year
97,909
137,536
A F SCOTT & COMPANY (HOTELIERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
10
Tangible fixed assets
Heritable Property
Plant and machinery
Fixtures and fittings
Computer equipment
Total
£
£
£
£
£
Cost or valuation
At 1 May 2023
2,273,277
1,393,025
335,518
13,309
4,015,129
Additions
6,352
1,796
8,148
Disposals
(86,796)
(86,796)
At 30 April 2024
2,273,277
1,312,581
335,518
15,105
3,936,481
Depreciation and impairment
At 1 May 2023
1,146,458
143,969
11,298
1,301,725
Depreciation charged in the year
61,645
60,344
1,377
123,366
Eliminated in respect of disposals
(86,796)
(86,796)
At 30 April 2024
1,121,307
204,313
12,675
1,338,295
Carrying amount
At 30 April 2024
2,273,277
191,274
131,205
2,430
2,598,186
At 30 April 2023
2,273,277
246,567
191,549
2,011
2,713,404
Heritable property with a carrying amount of £2,273,277 were revalued at 4 July 2012 by Messrs Graham & Sibbald, independent valuers not connected with the company on the basis of market value, and in 2024 by the directors. The directors reviewed the period from when the independent review was carried out to date by considered the effect on values of matters that have occurred in the intervening years and is based on market conditions and recent market transactions on arm's length terms for similar properties.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Heritble Property
2024
2023
£
£
Cost
1,136,142
1,136,142
11
Investment property
2024
£
Fair value
At 1 May 2023
2,941,647
Net gains or losses through fair value adjustments
11,021
At 30 April 2024
2,952,668
Investment properties, which comprise various residential and commercial properties, were valued on a an open market basis at 30 April 2024 by the directors.
A F SCOTT & COMPANY (HOTELIERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
11
Investment property
(Continued)
- 18 -
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2024
2023
£
£
Cost
1,195,606
1,195,606
Accumulated depreciation
-
-
Carrying amount
1,195,606
1,195,606
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
64,891
57,429
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
378,922
156,211
Other debtors
4,094
39,514
Prepayments and accrued income
137,147
163,568
520,163
359,293
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
16
23,522
Trade creditors
213,771
325,107
Corporation tax
104,479
34
Other taxation and social security
96,511
68,044
Government grants
9,375
9,375
Other creditors
129,897
132,986
Accruals and deferred income
87,106
65,062
641,139
624,130
A F SCOTT & COMPANY (HOTELIERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
15
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
18,750
28,125
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
23,522
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
123,995
148,372
Tax losses
(99,476)
(117,317)
Revaluations
37,016
37,016
Investment property
329,150
329,150
390,685
397,221
2024
Movements in the year:
£
Liability at 1 May 2023
397,221
Credit to profit or loss
(6,536)
Liability at 30 April 2024
390,685
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
214,000
214,000
214,000
214,000
A F SCOTT & COMPANY (HOTELIERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
19
Fair value reserve
2024
2023
£
£
At the beginning of the year
2,516,967
2,604,847
Other movements
11,021
(87,880)
At the end of the year
2,527,988
2,516,967
20
Related party transactions
2024
2023
Amounts due to related parties
£
£
Key management personnel
5,136
13,658
Other related parties
153,121
132,528
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Key management personnel
4,473
11,818
Other related parties
238,931
233,030
21
Cash generated from operations
2024
2023
£
£
Profit after taxation
293,550
170,100
Adjustments for:
Taxation charged
97,909
137,536
Finance costs
9,076
5,698
Gain on disposal of tangible fixed assets
-
(21,370)
Depreciation and impairment of tangible fixed assets
123,366
103,805
Movements in working capital:
(Increase)/decrease in stocks
(7,462)
71,151
Increase in debtors
(160,870)
(144,914)
(Decrease)/increase in creditors
(73,289)
14,147
Increase in deferred income
-
9,375
Cash generated from operations
282,280
345,528
A F SCOTT & COMPANY (HOTELIERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
22
Analysis of changes in net funds
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
483,813
241,534
725,347
Obligations under finance leases
(23,522)
23,522
-
460,291
265,056
725,347
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