Company Registration No. SC477646 (Scotland)
Reith Ecosse Limited
Unaudited financial statements
for the year ended 31 May 2024
Pages for filing with the registrar
Reith Ecosse Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 7
Reith Ecosse Limited
Statement of financial position
As at 31 May 2024
31 May 2024
1
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
2,867,724
2,781,619
Investment property
4
836,293
836,293
3,704,017
3,617,912
Current assets
Stocks
16,280
13,140
Debtors
5
126,191
104,937
Cash at bank and in hand
21,066
18,315
163,537
136,392
Creditors: amounts falling due within one year
6
(4,047,826)
(3,865,020)
Net current liabilities
(3,884,289)
(3,728,628)
Net liabilities
(180,272)
(110,716)
Capital and reserves
Called up share capital
7
100,000
100,000
Profit and loss reserves
(280,272)
(210,716)
Total equity
(180,272)
(110,716)
The director of the company has elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his 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.
The financial statements were approved and signed by the director and authorised for issue on 15 April 2025.
Richard Seaman
Director
Company Registration No. SC477646
Reith Ecosse Limited
Notes to the financial statements
For the year ended 31 May 2024
2
1
Accounting policies
Company information
Reith Ecosse Limited is a private company limited by shares incorporated in Scotland. The registered office is 9 Haymarket Square, Edinburgh, EH3 8RY.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for property rental income and the management and operation of sporting estates, net of VAT and trade discounts.
Revenue from property rental income is recognised by reference to the accounting period. Leases which are non-coterminous with the period end date are deferred or accrued as necessary.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have been passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
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 provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Heritable land and property
Nil
Estate improvements
Nil
Equipment, furniture and fixtures
10% reducing balance
Motor vehicles
25% straight line
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.
Reith Ecosse Limited
Notes to the financial statements (continued)
For the year ended 31 May 2024
1
Accounting policies (continued)
3
1.5
Investment properties
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.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for in line with note 1.4.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stock includes the value of ewes and gimmers, which are valued at the lower of cost and net realisable value.
1.8
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.
1.9
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 statement of financial position 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.
Reith Ecosse Limited
Notes to the financial statements (continued)
For the year ended 31 May 2024
1
Accounting policies (continued)
4
Basic financial assets
Basic financial assets, which include debtors, 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.
1.10
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.
1.11
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 income statement 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.
Reith Ecosse Limited
Notes to the financial statements (continued)
For the year ended 31 May 2024
1
Accounting policies (continued)
5
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 taxable 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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
4
4
Reith Ecosse Limited
Notes to the financial statements (continued)
For the year ended 31 May 2024
6
3
Tangible fixed assets
Heritable land and property
Estate improvements
Equipment, furniture and fixtures
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2023
2,600,590
98,856
71,134
72,041
2,842,621
Additions
62,984
3,174
39,640
105,798
Disposals
-
(3,200)
(3,200)
At 31 May 2024
2,600,590
161,840
74,308
108,481
2,945,219
Depreciation and impairment
At 1 June 2023
22,550
38,452
61,002
Depreciation charged in the year
5,123
12,303
17,426
Eliminated in respect of disposals
-
(933)
(933)
At 31 May 2024
27,673
49,822
77,495
Carrying amount
At 31 May 2024
2,600,590
161,840
46,635
58,659
2,867,724
At 31 May 2023
2,600,590
98,856
48,584
33,589
2,781,619
Reith Ecosse Limited
Notes to the financial statements (continued)
For the year ended 31 May 2024
7
4
Investment property
2024
£
Fair value
At 1 June 2023 and 31 May 2024
836,293
Investment property comprises property held for rental income. No formal valuation of the property has been carried out since its acquisition in July 2014, however the director has considered the condition of the property and considers the current fair value to not be materially different.
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
35,116
17,333
Other debtors
91,075
87,604
126,191
104,937
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
14,124
33,059
Taxation and social security
7,817
Other creditors
4,025,885
3,831,961
4,047,826
3,865,020
7
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
100,000 Ordinary shares of £1 each
100,000
100,000
8
Related party transactions
During the year, Finances Et Terroirs Hild, the parent company, advanced loans of £175,969 (2023: £104,064) to the company. At the year end, £3,979,773 (2023: £3,803,805) was outstanding.
9
Control
In the opinion of the director, the ultimate controlling party is L. Hild. L. Hild is the beneficial owner of the company through his ownership of Finances Et Terroirs Hild.