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REGISTRAR OF COMPANIES

Registration number: SC461967

Legars Limited

Unaudited Financial Statements

31 May 2024

image-name

 

Legars Limited

Contents

Accountants' Report

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

4

 

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Legars Limited
for the Year Ended 31 May 2024

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Legars Limited for the year ended 31 May 2024 as set out on pages 2 to 10 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of Legars Limited, as a body, in accordance with the terms of our engagement letter dated 12 September 2023. Our work has been undertaken solely to prepare for your approval the accounts of Legars Limited and state those matters that we have agreed to state to the Board of Directors of Legars Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Legars Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Legars Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Legars Limited. You consider that Legars Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Legars Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.



Dodd & Co Limited
Chartered Accountants
FIFTEEN Rosehill
Montgomery Way
Rosehill Estate
CARLISLE
CA1 2RW

6 February 2025

 

Legars Limited

(Registration number: SC461967)
Balance Sheet as at 31 May 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

4

81,058

103,680

Tangible assets

5

9,665,744

8,476,233

 

9,746,802

8,579,913

Current assets

 

Stocks

2,037,141

2,017,436

Debtors

6

723,639

598,451

 

2,760,780

2,615,887

Creditors: Amounts falling due within one year

7

(4,879,310)

(2,900,432)

Net current liabilities

 

(2,118,530)

(284,545)

Total assets less current liabilities

 

7,628,272

8,295,368

Creditors: Amounts falling due after more than one year

7

(4,544,295)

(6,335,666)

Provisions for liabilities

(672,188)

(430,105)

Net assets

 

2,411,789

1,529,597

Capital and reserves

 

Allotted, called up and fully paid share capital

100

100

Profit and loss account

2,411,689

1,529,497

Total equity

 

2,411,789

1,529,597

 

Legars Limited

(Registration number: SC461967)
Balance Sheet as at 31 May 2024 (continued)

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

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 6 February 2025 and signed on its behalf by:
 

.........................................

B J Renwick

Director

.........................................

J E Renwick

Director

 

Legars Limited

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

1

General information

The company is a private company limited by share capital, incorporated in Scotland.

The address of its registered office is:
Legars Farm
KELSO
TD5 7TN

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The company has net current liabilities at 31 May 2024 and meets its day to day working capital requirements through its bank overdraft facility which, in common with all such facilities, is repayable on demand. In addition the directors have provided financial support by way of short term loans. On the basis of this support, the directors consider it appropriate to prepare the financial statements on the going concern basis.

However, should the company not have the support of its bankers, and therefore be unable to continue trading, adjustments would have to be made to reduce the value of assets to their recoverable amounts, to provide for any further liabilities which might arise, and to reclassify fixed assets and long term liabilities as current assets and current liabilities.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Government grants

Government grants such as the basic payment scheme are included in the profit and loss account when all the necessary conditions for receipt have been met.

 

Legars Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024 (continued)

Basic payment scheme amortisation

The amount paid in connection with the purchase of the basic payment scheme entitlement is being amortised over the useful economic life of that entitlement. In addition, an annual impairment review is being performed.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

20 years straight line basis

Plant and equipment

15% reducing balance basis

Motor vehicles

25% reducing balance basis

Furniture, fittings and office equipment

3 years straight line basis

Trade debtors

Trade debtors are amounts due from customers for the sale of goods or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Legars Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024 (continued)

Stocks

Trading stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. The cost of livestock represents the purchase cost plus any additional costs of rearing the animal. Net realisable value is based on selling price less anticipated selling costs. Crop stock is valued at fair value less any anticipated costs to sell.

Flock stock is included in the balance sheet at the original cost of the flock. The directors consider this to be appropriate because the individual components of the flock are constantly being replaced, without material variation in the composition or value of the flock.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method where due after more than one year.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

Legars Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024 (continued)

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Preference shares are classified as debt when the shares are redeemable in the future at the option of the holder.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 20 (2023 - 15).

 

Legars Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024 (continued)

4

Intangible assets

Basic payment scheme
 £

Total
£

Cost or valuation

At 1 June 2023

194,168

194,168

At 31 May 2024

194,168

194,168

Amortisation

At 1 June 2023

90,488

90,488

Amortisation charge

22,622

22,622

At 31 May 2024

113,110

113,110

Carrying amount

At 31 May 2024

81,058

81,058

At 31 May 2023

103,680

103,680

5

Tangible assets

Land and buildings
£

Plant and equipment
 £

Motor vehicles
 £

Furniture, fittings and office equipment
 £

Total
£

Cost or valuation

At 1 June 2023

6,916,697

2,217,182

37,500

3,021

9,174,400

Additions

443,431

1,255,782

55,340

1,658

1,756,211

Disposals

-

(333,550)

-

-

(333,550)

At 31 May 2024

7,360,128

3,139,414

92,840

4,679

10,597,061

Depreciation

At 1 June 2023

157,195

526,030

12,860

2,082

698,167

Charge for the year

66,887

273,109

13,424

765

354,185

Eliminated on disposal

-

(121,035)

-

-

(121,035)

At 31 May 2024

224,082

678,104

26,284

2,847

931,317

Carrying amount

At 31 May 2024

7,136,046

2,461,310

66,556

1,832

9,665,744

At 31 May 2023

6,759,502

1,691,152

24,640

939

8,476,233

 

Legars Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024 (continued)

6

Debtors

2024
£

2023
£

Trade debtors

546,665

536,478

Other debtors

176,974

61,973

723,639

598,451

7

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

8

4,201,897

2,118,896

Trade creditors

 

556,758

711,438

Taxation and social security

 

25,669

9,428

Corporation tax liability

 

41,788

12,849

Other creditors

 

53,198

47,821

 

4,879,310

2,900,432

Due after one year

 

Loans and borrowings

8

4,544,295

6,335,666

2024
£

2023
£

After more than five years by instalments

3,420,342

4,982,139

3,420,342

4,982,139

8

Loans and borrowings

2024
£

2023
£

Current loans and borrowings

Bank borrowings

1,956,275

311,938

Bank overdrafts

285,657

94,142

Finance lease liabilities

418,034

127,381

Redeemable preference shares

1,500,000

1,500,000

Other borrowings

41,931

85,435

4,201,897

2,118,896

 

Legars Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024 (continued)

Current loans and borrowings includes the following liabilities, on which security has been given by the company:

2024
£

2023
£

Bank borrowings

1,956,275

311,938

Bank overdrafts

285,657

94,142

Finance lease liabilities

418,034

127,381

2,659,966

533,461

Bank borrowings are secured by fixed and floating charges over the company's assets.

Bank overdrafts are secured by fixed and floating charges over the company's assets.

Finance lease liabilities are secured on the assets to which they relate.

2024
£

2023
£

Non-current loans and borrowings

Bank borrowings

4,234,207

6,216,777

Finance lease liabilities

310,088

118,889

4,544,295

6,335,666

Non-current loans and borrowings includes the following liabilities, on which security has been given by the company:

2024
£

2023
£

Bank borrowings

4,234,207

6,216,777

Finance lease liabilities

310,088

118,889

4,544,295

6,335,666

Bank borrowings are secured by fixed and floating charges over the company's assets.

Finance lease liabilities are secured on the assets to which they relate.