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2. |
Summary of Significant Accounting Policies |
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The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements. |
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Statement of compliance |
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The financial statements of the company for the year ended 30 June 2024 have been prepared in accordance with the provisions of FRS 102 Section 1A (Small Entities) and the Companies Act 2006. |
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Basis of preparation |
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The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. |
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Turnover |
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Turnover is recognised to the extent that the company obtains the right to consideration in exchange for its performance. Turnover comprises the fair value of consideration received and receivable exclusive of value added tax and after discounts and rebates.
Where the consideration receivable in cash or cash equivalents is deferred, and the arrangement constitutes a financing transaction, the fair value of the consideration is measured as the present value of all future receipts using the imputed rate of interest.
Turnover 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 turnover 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.
Turnover from the provision of services is recognised in the accounting period in which the services are rendered and the outcome of the contract can be estimated reliably. The company uses the percentage of completion method based on the actual service performed as a percentage of the total services to be provided. |
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Intangible assets |
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Shellfish Licence & Crown Lease |
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Shellfish Licence & Crown Lease are valued at cost less accumulated amortisation. |
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Tangible assets and depreciation |
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Tangible assets are stated at cost or at valuation, less accumulated depreciation. Cost is based on the invoiced cost, net of VAT. The charge to depreciation is calculated to write off the original cost or valuation of tangible assets, less their estimated residual value, over their expected useful lives as follows: |
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Land and buildings freehold |
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2% Straight Line |
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Fixtures, fittings and equipment |
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20% Straight Line |
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The carrying values of tangible fixed assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. |
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Stocks |
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The companys biological assets comprises of oysters and are measured at cost less any accumulated impairment losses. Cost comprises the purchase price of oyster unit together with an apportionment of overheads incurred in the normal course of business in bringing stocks to their present location and condition. Full provision is made for mortality of stock units. |
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Trade and other debtors |
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Trade and other debtors including amounts owed from group companies are recognised initially at transaction price (including transaction costs) unless a financing arrangement exists in which case they are measured at the present value of future receipts discounted at a market rate. Subsequently these are measured at amortised cost less any provision for impairment. A provision for 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 receivables. The amount of the provision is the difference between the assets carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. All movements in the level of the provision required are recognised in the profit and loss. |
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Cash and cash equivalents |
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Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the Balance Sheet bank overdrafts are shown within Creditors. |
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Provisions |
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Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the same value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense. |
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Trade and other creditors |
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Creditors and accruals are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
As permitted by the amendment made to FRS 102 Section 11 for small entities by the FRC on 8 May 2017 amounts due from directors and shareholders of the entity are stated initially at the transaction price and subsequently at transaction price less repayments. The amortised cost model is not used. |
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Related parties |
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For the purposes of these financial statements a party is considered to be related to the company if: |
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the party has the ability, directly or indirectly, through one or more intermediaries to control the company or exercise significant influence over the company in making financial and operating policy decisions or has joint control over the company; |
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the company and the party are subject to common control; |
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the party is an associate of the company or forms part of a joint venture with the company; |
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the party is a member of key management personnel of the company or the company's parent, or a close family member of such as an individual, or is an entity under the control, joint control or significant influence of such individuals; |
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the party is a close family member of a party referred to above or is an entity under the control or significant influence of such individuals; or |
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the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company. |
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Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the company. |
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Taxation and deferred taxation |
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Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the financial year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Balance Sheet date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements.
Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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Foreign currencies |
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Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the Balance Sheet date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the rates of exchange ruling at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The resulting exchange differences are dealt with in the Profit and Loss Account. |
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Ordinary share capital |
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The ordinary share capital of the company is presented as equity. |
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Transactions and balances with group companies: |
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2024 |
2023 |
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£ |
£ |
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Compagnie Financiere Gillardeau |
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During the year the company purchased goods and services to the value of £127,945 from Compagnie Financiere Gillardeau.
The company has also received a working capital loan from CFG. CFG charges interest at a rate of 4.07% in respect of this loan, which is repayable on demand. |
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Amount (owed to) Compagnie Financiere Gillardeau |
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(199,296) |
(118,043) |
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PKA Ltd. |
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During the year the company sold goods to the value of £135,715 to PKA Ltd.
During the year the company purchased goods to the value of £31,094 from PKA Ltd.
The company has also received a working capital loan from PKA. This loan is non-interest bearing and is repayable on demand. |
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Amount (owed to) PKA Ltd. |
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(440,067) |
(284,008) |
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PKC Oysters Ltd |
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During the year the company sold goods to the value of £44,237 to PKC Oysters Ltd |
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PKO Oysters Ltd. |
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During the year the company sold goods to the value of £121,531 to PKO Oysters Ltd |
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BC Shellfish Ltd |
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During the year the company purchased goods to the value of £81,793 from BC Shellfish Ltd |
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Amount (owed to) BC Shellfish Ltd |
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(74,849) |
(44,883) |
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Production Huitres Gillardeau |
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During the year the company sold goods to the value of £87,600 to Production Huitres Gillardeau.
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PKM Oysters Ltd. |
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During the year the company sold goods to the value of £20,434 to PKM Oysters Ltd |
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Amount due from PKM Oysters Ltd. |
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20,434 |
54,304 |
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Speciales Gillardeau |
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No trading transactions during the year. |
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Amount (owed to) Speciales Gillardeau |
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(2,194) |
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Keenan Oysters Ltd |
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During the year the company sold goods to the value of £106,438 to Keenan Oysters Ltd.
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Amount due from/(owed to) Keenan Oysters Ltd |
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6,548 |
(26,828) |
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