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REGISTERED NUMBER: SC420187 (Scotland)















Unaudited Financial Statements for the Year Ended 31 May 2024

for

Emerald Inns Ltd

Emerald Inns Ltd (Registered number: SC420187)






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




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


Emerald Inns Ltd

Company Information
for the Year Ended 31 May 2024







DIRECTORS: M A Lawless
D S Lawson





REGISTERED OFFICE: 135 Culduthel Road
Inverness
IV2 4EF





REGISTERED NUMBER: SC420187 (Scotland)





ACCOUNTANTS: Cairntax
Fairways House
Fairways Business Park
Inverness
IV2 6AA

Emerald Inns Ltd (Registered number: SC420187)

Balance Sheet
31 May 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 5 540,000 607,500
Tangible assets 6 161,249 167,216
Investment property 7 405,418 405,418
1,106,667 1,180,134

CURRENT ASSETS
Stocks 72,723 55,120
Debtors 8 535,595 506,336
Cash at bank and in hand 1,716,710 1,431,228
2,325,028 1,992,684
CREDITORS
Amounts falling due within one year 9 690,272 604,069
NET CURRENT ASSETS 1,634,756 1,388,615
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,741,423

2,568,749

CREDITORS
Amounts falling due after more than one
year

10

-

(57,654

)

PROVISIONS FOR LIABILITIES (23,896 ) (24,876 )
NET ASSETS 2,717,527 2,486,219

CAPITAL AND RESERVES
Called up share capital 100 100
Share premium 303,801 303,801
Retained earnings 2,413,626 2,182,318
2,717,527 2,486,219

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

Emerald Inns Ltd (Registered number: SC420187)

Balance Sheet - continued
31 May 2024


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

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

The financial statements were approved by the Board of Directors and authorised for issue on 25 February 2025 and were signed on its behalf by:





D S Lawson - Director


Emerald Inns Ltd (Registered number: SC420187)

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

1. STATUTORY INFORMATION

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

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.

Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life.

Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Goodwill - over 20 years

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Emerald Inns Ltd (Registered number: SC420187)

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

3. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation
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:

Long term leasehold property - over the period of the lease
Fixtures and fittings - 15% reducing balance
Equipment - 20% reducing balance
Leasehold improvements - 20% reducing balance

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.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Investment property
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure.

Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.

Stocks
Stocks are measured at the lower of cost and estimated selling price.

Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Emerald Inns Ltd (Registered number: SC420187)

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

3. ACCOUNTING POLICIES - continued

Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Lease income is recognised in profit or loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.

Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Government grants are recognised using the accrual model.

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 36 (2023 - 38 ) .

Emerald Inns Ltd (Registered number: SC420187)

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

5. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 June 2023
and 31 May 2024 1,350,000
AMORTISATION
At 1 June 2023 742,500
Charge for year 67,500
At 31 May 2024 810,000
NET BOOK VALUE
At 31 May 2024 540,000
At 31 May 2023 607,500

6. TANGIBLE FIXED ASSETS
Improvements Fixtures
Long to Plant and and
leasehold property machinery fittings Totals
£    £    £    £    £   
COST
At 1 June 2023 110,916 84,396 118,761 97,290 411,363
Additions - - 22,143 - 22,143
At 31 May 2024 110,916 84,396 140,904 97,290 433,506
DEPRECIATION
At 1 June 2023 64,661 57,717 70,877 50,892 244,147
Charge for year 1,809 5,336 14,005 6,960 28,110
At 31 May 2024 66,470 63,053 84,882 57,852 272,257
NET BOOK VALUE
At 31 May 2024 44,446 21,343 56,022 39,438 161,249
At 31 May 2023 46,255 26,679 47,884 46,398 167,216

7. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 June 2023
and 31 May 2024 405,418
NET BOOK VALUE
At 31 May 2024 405,418
At 31 May 2023 405,418

The investment property was valued by the directors, on 31 May 2022, based on open market value. In the opinion of the directors, the valuation of the investment property remains unchanged for this financial year.

The historic cost of the investment property is £405,418 (2023 - £405,418).

Emerald Inns Ltd (Registered number: SC420187)

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

8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 10,348 10,348
Other debtors 525,247 495,988
535,595 506,336

9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Other loans - 5,000
Trade creditors 304,884 276,202
Tax 184,260 141,856
Social security and other taxes 22,208 20,710
VAT 129,201 122,154
Other creditors 49,719 38,147
690,272 604,069

10. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Other Loans - 57,654

11. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 20,000 20,000
Between one and five years 80,000 80,000
In more than five years 50,000 70,000
150,000 170,000

12. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 May 2024 and 31 May 2023:

2024 2023
£    £   
D S Lawson
Balance outstanding at start of year 35,623 32,559
Amounts advanced 256,407 271,117
Amounts repaid (258,110 ) (268,053 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 33,920 35,623

Interest is charged on the loan to D S Lawson at a rate of 2.25% (2023 - 2%) and the amount of interest charged for the year ended 31 May 2024 was £2,768 (2023 - £2,340). The loan has no fixed terms of repayment.