SIMPSINNS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
Company registration number SC220884 (Scotland)
SIMPSINNS LIMITED
COMPANY INFORMATION
Directors
Mr Malcolm Simpson
Mrs Karen Simpson
Secretary
Mrs Karen Simpson
Company number
SC220884
Registered office
152A High Street
Irvine
Ayrshire
KA12 8AN
Auditor
William Duncan + Co (Audit) Ltd
Ellersley House
30 Miller Road
Ayr
Ayrshire
KA7 2AY
Business address
Gailes Hotel
Marine Drive
Irvine
Ayrshire
KA11 5AE
Bankers
Barclays Bank PLC
Portman Square
1 Churchill Place
London
E14 5HP
Solicitors
McCluskey Browne
7 Portland Road
Kilmarnock
Ayrshire
KA1 2BT
SIMPSINNS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 27
SIMPSINNS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -

The directors present the strategic report for the year ended 31 July 2024.

Fair review of the business

The directors of SimpsInns are pleased to report on another strong year across all aspects of the business.

 

The performance of our leisure offering has been exceptional, with Si! Spa at The Gailes Hotel delivering above forecasted sales.

 

Already an award-winning venue, we have picked up another exceptional accolade at this year’s BABTAC & CIBTAC Spa Awards as The Best Boutique Spa in the UK , which has given us the additional encouragement required to progress with our ambitious plan to further develop our Spa and leisure presence across Ayrshire with an additional site due to be complete by the end of 2025.

 

The increase in Simpsinns’ turnover and gross profit is a credit to the hard work and commitment of the Simpsinns team, delivering excellent results in an exceptionally challenging environment both economically and politically.

 

Despite the high cost of operations, especially in the food and drink sector, our strong performance in bedroom occupancy and room rate in the hotels and the growth in our leisure related business has supported another successful and profitable year.

 

Simpsinns’ continued commitment to reinvest in the business to maintain the high standards our guests expect is reflected in the completed project of the redesign and refurbishment of both the “Potting Shed “and “The Terrace Restaurant” at Si!, opening to great acclaim and positive reviews.

 

In addition the company's second Spa facility and Bedroom extension at the Waterside Hotel is well underway. This £3 million investment will add an exciting new leisure offering to the property and expand the hotel to a luxury 40 bedroom operation.

Principal risks and uncertainties

Government increases on National Minimum Wage, the employers national insurance rate and the lowering of the eeligibility threshold to pay N.I. will all be a significant cost to the business.

 

As has been the case in previous years, rising energy costs continue to be one of the biggest challenges to our business. To combat this, Simpsinns is investing in solar panels and exploring additional energy-efficient technologies to help offset the operating costs, while supporting our commitment to engage in utilising a more sustainable energy source.

Development and performance

We will continue our policy of improvement and maintenance of our estate. Reinvestment of profit continues to be our chosen path towards development and security of trade.

We are committed to the future expansion of our room stock and further additional leisure investment going forward.

 

SimpsInns retains significant cash reserves and continues to partner with Barclays Bank to develop and operate from a strong financial position.

 

SimpsInns will continue to maintain its high quality property and estate portfolio. Our strong management team will continue to grow profitability through increased sales, operational controls and strong marketing objectives.

 

We have a strong experienced team, with some new strength added to our senior management team, preparing for a challenging year with growth opportunity.

Key performance indicators

Simpsinns continues to benchmark against industry standards, delivering above average results on controlling costs and delivering the very best service standards and value.

SIMPSINNS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 2 -

On behalf of the board

Mr Malcolm Simpson
Director
28 April 2025
SIMPSINNS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 July 2024.

Principal activities

The principal activity of the company continued to be the operation of a hotel, bar restaurants, wedding and conference facilities.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £106,897. The directors do not recommend payment of a further 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 Malcolm Simpson
Mrs Karen Simpson
Auditor

In accordance with the company's articles, a resolution proposing that William Duncan + Co (Audit) Ltd be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all 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 Malcolm Simpson
Director
28 April 2025
SIMPSINNS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 2024
- 4 -

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:

 

 

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.

SIMPSINNS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SIMPSINNS LIMITED
- 5 -

Qualified opinion

We have audited the financial statements of Simpsinns Limited (the 'company') for the year ended 31 July 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified opinion

We would draw your attention to the disclosures in note 12 to the financial statements which applies to the Land and Buildings category within the Tangible Fixed Assets note. This indicates that an external valuation was performed in September 2023 on a proportion of the land and buildings included in this balance sheet category revaluing this element to £13,000,000. There have been subsequent additions of £268,067 at cost.

 

The remaining elements were externally valued in July 2020 and have subsequent additions that have been added through ongoing capital projects. We were unable to satisfy ourselves of the valuation of these elements of land and buildings as they were not part of the revaluation exercise. The remaining total of £5,694,460 included in the balance sheet remains at the existing valuation plus additions. Consequently we were unable to determine whether any further revaluation adjustment was necessary.

 

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 qualified 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.

Key audit matters

Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report.

SIMPSINNS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIMPSINNS LIMITED
- 6 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

 

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the valuation of land and buildings at 31 July 2024. We have concluded that where the other information refers to land and building valuation, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, 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 and the directors' report.

 

Arising solely from the limitation on the scope of our work relating to valuation of land and buildings, referred to above:

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

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.

SIMPSINNS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIMPSINNS LIMITED
- 7 -

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Mr Neil Reid FCCA
Senior Statutory Auditor
For and on behalf of William Duncan + Co (Audit) Ltd
29 April 2025
Accountants
Statutory Auditor
Ellersley House
30 Miller Road
Ayr
Ayrshire
KA7 2AY
SIMPSINNS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
10,755,639
9,548,505
Cost of sales
(2,086,674)
(1,967,481)
Gross profit
8,668,965
7,581,024
Administrative expenses
(7,424,063)
(5,825,594)
Other operating income
56,190
8,384
Operating profit
4
1,301,092
1,763,814
Interest receivable and similar income
7
142,915
83,426
Interest payable and similar expenses
8
(354,909)
(293,998)
Amounts written off investments
9
175,743
(71,863)
Profit before taxation
1,264,841
1,481,379
Tax on profit
10
(359,261)
(397,048)
Profit for the financial year
905,580
1,084,331
Other comprehensive income
Revaluation of tangible fixed assets
(102,828)
5,374,706
Tax relating to other comprehensive income
-
0
(1,542,305)
Total comprehensive income for the year
802,752
4,916,732

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SIMPSINNS LIMITED
BALANCE SHEET
AS AT 31 JULY 2024
31 July 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
19,209,196
19,383,543
Investments
13
2,170,629
1,966,222
21,379,825
21,349,765
Current assets
Stocks
14
88,158
86,589
Debtors
15
673,556
9,631
Cash at bank and in hand
3,071,303
2,874,466
3,833,017
2,970,686
Creditors: amounts falling due within one year
16
(2,194,130)
(1,885,522)
Net current assets
1,638,887
1,085,164
Total assets less current liabilities
23,018,712
22,434,929
Creditors: amounts falling due after more than one year
17
(4,475,022)
(4,596,337)
Provisions for liabilities
Deferred tax liability
19
2,250,743
2,241,500
(2,250,743)
(2,241,500)
Net assets
16,292,947
15,597,092
Capital and reserves
Called up share capital
22
4
4
Revaluation reserve
7,068,093
7,293,970
Profit and loss reserves
9,224,850
8,303,118
Total equity
16,292,947
15,597,092

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 28 April 2025 and are signed on its behalf by:
Mr Malcolm Simpson
Director
Company registration number SC220884 (Scotland)
SIMPSINNS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 10 -
Share capital
Revaluation reserve
Non-distri-butable profits
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 August 2022
4
3,461,569
1,586
7,535,201
10,998,360
Year ended 31 July 2023:
Profit
-
-
-
1,084,331
1,084,331
Other comprehensive income:
Revaluation of tangible fixed assets
-
5,374,706
-
-
5,374,706
Tax relating to other comprehensive income
-
(1,542,305)
-
-
0
(1,542,305)
Total comprehensive income
-
3,832,401
-
1,084,331
4,916,732
Dividends
11
-
-
-
(318,000)
(318,000)
Transfers
-
-
0
(33,308)
33,308
-
Balance at 31 July 2023
4
7,293,970
(31,722)
8,334,840
15,597,092
Year ended 31 July 2024:
Profit
-
-
-
905,580
905,580
Other comprehensive income:
Revaluation of tangible fixed assets
-
(102,828)
-
-
(102,828)
Total comprehensive income
-
(102,828)
-
905,580
802,752
Dividends
11
-
-
-
(106,897)
(106,897)
Transfers
-
(123,049)
134,207
(11,158)
-
Balance at 31 July 2024
4
7,068,093
102,485
9,122,365
16,292,947
SIMPSINNS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,940,969
2,931,011
Income taxes paid
(282,531)
(452,649)
Net cash inflow from operating activities
1,658,438
2,478,362
Investing activities
Purchase of tangible fixed assets
(411,838)
(458,349)
Purchase of investments
-
0
(553,526)
Proceeds from disposal of investments
(28,664)
537,045
Repayment of loans
(656,925)
-
0
Interest received
94,314
43,289
Dividends received
48,601
40,137
Net cash used in investing activities
(954,512)
(391,404)
Financing activities
Repayment of bank loans
(45,283)
(1,371,889)
Interest paid
(354,909)
(293,998)
Dividends paid
(106,897)
(318,000)
Net cash used in financing activities
(507,089)
(1,983,887)
Net increase in cash and cash equivalents
196,837
103,071
Cash and cash equivalents at beginning of year
2,874,466
2,771,395
Cash and cash equivalents at end of year
3,071,303
2,874,466
SIMPSINNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 12 -
1
Accounting policies
Company information

Simpsinns Limited is a private company limited by shares incorporated in Scotland. The registered office is 152A High Street, Irvine, Ayrshire, KA12 8AN. The principal business address is Gailes Hotel, Marine Drive, Irvine, Ayrshire, KA11 5AE.

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, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statementstrue.

1.3
Turnover

Turnover represents amounts receivable in respect of the principal activities of the company on the date they incur, for pre booked events revenue is deferred and only recognised once the pre booked event has taken place. Turnover is stated net of VAT.

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.

 

Land and Buildings (Freehold and Leasehold) are initially measured at cost and subsequently measured at valuation, net of depreciation and any impairment losses

 

Plant and Machinery, Fixtures and Fittings and Equipment, Computer Equipment and Motor Vehicles are initially measured at cost an subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised in order to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Freehold
2% Straight Line
Land and buildings Leasehold
1% Straight Line, being the lease term
Plant and machinery
20% Reducing Balance
Fixtures, fittings & equipment
20% Reducing Balance
Computer equipment
20% Reducing Balance
Motor vehicles
25% Reducing Balance

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.

SIMPSINNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 13 -

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuations less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is unusually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extend that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in the profit or loss.

In respect of assets in the course of construction, no depreciation is charge until the assets are brought into use.

 

As described in the basis for qualified section of our audit report, we were unable to satisfy ourselves of the valuation of the entire land and buildings category included at 31 July 2024 which are included in the balance sheet.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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.

1.7
Stocks

Stocks are stated at the lower of cost 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 balance sheet 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.

SIMPSINNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, 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.

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.

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, are initially recognised at transaction price unless the arrangement constitutes a financing transaction. Financial liabilities classified as payable within one year are not amortised.

 

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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 profit and loss account 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.

SIMPSINNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 15 -
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 tax 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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Government grants

Income in connection with the Grant received from Irvine Bay Urban Regeneration Company will be recognised over a 7 year period subject to an annual review of the claw back provisions within the terms and conditions of the agreement.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

SIMPSINNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

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.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Accomodation, Food & Drink Revenue
10,755,639
9,548,505
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
10,755,639
9,548,505
2024
2023
£
£
Other revenue
Interest income
94,314
43,289
Dividends received
48,601
40,137
Grants received
7,500
7,500
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(7,500)
(7,500)
Fees payable to the company's auditor for the audit of the company's financial statements
13,000
8,500
Depreciation of owned tangible fixed assets
483,357
175,821
Operating lease charges
61,748
31,120
SIMPSINNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 17 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Management
16
14
Other
230
214
Total
246
228

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,748,006
3,190,631
Social security costs
258,615
219,271
Pension costs
574,584
129,932
4,581,205
3,539,834
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
18,192
18,192
Company pension contributions to defined contribution schemes
514,509
77,138
532,701
95,330

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
94,314
43,289
Other income from investments
Dividends received
48,601
40,137
Total income
142,915
83,426
SIMPSINNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 18 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
354,909
293,998
9
Amounts written off investments
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Gain/(loss) on financial assets held at fair value through profit or loss
134,207
(33,308)
Other gains/(losses)
Gain/(loss) on disposal of current asset investments
41,536
(38,555)
175,743
(71,863)
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
350,018
230,188
Deferred tax
Origination and reversal of timing differences
9,243
166,860
Total tax charge
359,261
397,048

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
1,264,841
1,481,379
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
316,210
370,345
Tax effect of income not taxable in determining taxable profit
43,051
(10,034)
Deferred tax movement on revalued asset gain
-
0
52,388
Tax rate differences
-
0
(15,651)
Taxation charge for the year
359,261
397,048
SIMPSINNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
10
Taxation
(Continued)
- 19 -

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
1,542,305
11
Dividends
2024
2023
£
£
Final paid
106,897
318,000
SIMPSINNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 20 -
12
Tangible fixed assets
Land and buildings Freehold
Land and buildings Leasehold
Assets under construction
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost or valuation
At 1 August 2023
18,668,970
12,000
-
0
323,543
2,534,492
58,397
6,750
21,604,152
Additions
281,557
-
0
130,281
-
0
-
0
-
0
-
0
411,838
Revaluation
(104,927)
-
0
-
0
-
0
-
0
-
0
-
0
(104,927)
At 31 July 2024
18,845,600
12,000
130,281
323,543
2,534,492
58,397
6,750
21,911,063
Depreciation and impairment
At 1 August 2023
-
0
-
0
-
0
241,446
1,920,906
53,643
4,614
2,220,609
Depreciation charged in the year
342,736
-
0
-
0
16,419
122,717
951
534
483,357
Revaluation
(2,099)
-
0
-
0
-
0
-
0
-
0
-
0
(2,099)
At 31 July 2024
340,637
-
0
-
0
257,865
2,043,623
54,594
5,148
2,701,867
Carrying amount
At 31 July 2024
18,504,963
12,000
130,281
65,678
490,869
3,803
1,602
19,209,196
At 31 July 2023
18,668,970
12,000
-
0
82,097
613,586
4,754
2,136
19,383,543
SIMPSINNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 21 -

The carrying value of land and buildings comprises:

2024
2023
£
£
Freehold
18,607,791
18,668,970
Long leasehold
12,000
12,000
18,619,791
18,680,970

The Gailes Hotel and Spa within Freehold land and buildings were valued on an open market basis by Colliers International Property Consultants Limited, a firm of independent chartered surveyors, on the 30th September 2023 to £13,000,000.

 

The remaining properties within the Freehold land and buildings category were valued on an open market basis by CDLH Leisure & Hospitality Surveyors, a firm of independent chartered surveyors, on the 31st July 2020. Since that date there have been additions of £442,808 which are included at cost. The directors have assessed the valuation and the subsequent additions and have considered this to still be appropriate. This assessment has been based on the ongoing capital projects, the upturn in trade and the improved property market in the year to 31 July 2024. The directors expect to instruct a new independent valuation for the 31 July 2025 year end when the current capital projects are concluded in these properties.

 

If revalued assets were stated on a historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

 

2024
2023
£
£
Cost
12,457,991
12,046,153
Accumulated depreciation
(2,508,204)
(2,280,997)
Carrying value
9,949,787
9,765,156
13
Fixed asset investments
2024
2023
£
£
Listed investments
2,170,629
1,966,222
SIMPSINNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
13
Fixed asset investments
(Continued)
- 22 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 August 2023
1,966,222
Additions
798,110
Valuation changes
134,207
Cash movement in Investments
(1,605)
Disposals
(726,305)
At 31 July 2024
2,170,629
Carrying amount
At 31 July 2024
2,170,629
At 31 July 2023
1,966,222

The Fixed Asset Investments are managed by external fund managers and are valued at the closing open market valuation as at 31st July 2024.

 

Included in the above Fixed Asset Investments are cash balances of £93,018 (2023 - £94,624).

 

The historical cost of the listed investments at 31st July 2024 is £1,975,125 (2023 - £1,903,320).

 

 

14
Stocks
2024
2023
£
£
Goods for resale
88,158
86,589
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,583
9,631
Other debtors
671,973
-
0
673,556
9,631
SIMPSINNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 23 -
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
18
97,328
28,796
Payments received on account
429,544
386,452
Trade creditors
431,348
288,100
Corporation tax
293,512
226,025
Other taxation and social security
481,207
481,699
Government grants
20
7,500
7,500
Other creditors
14,780
12,437
Accruals and deferred income
438,911
454,513
2,194,130
1,885,522
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
18
4,137,522
4,251,337
Government grants
20
337,500
345,000
4,475,022
4,596,337
18
Loans and overdrafts
2024
2023
£
£
Bank loans
4,234,850
4,280,133
Payable within one year
97,328
28,796
Payable after one year
4,137,522
4,251,337

On the 30th November 2023, Simpsinns refinanced to Barclays Bank Plc. The new borrowing terms with Barclays Bank Plc includes a security floating charge over all assets of the company, supported by standard security over certain company properties. The loan is due to be repaid in 5 years, based on a 20 year repayment plan. The loan carries a floating rate of interest not less than 2.08% per annum margin.

 

At the year end Irvine Bay Regeneration, now North Ayrshire Venture Trust has standard security over Si! Café Bar and Restaurant (formerly The Golf Hotel, Kilwinning Road, Irvine). This has been satisfied post year end.

SIMPSINNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 24 -
19
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
2,250,743
2,241,500
2024
Movements in the year:
£
Liability at 1 August 2023
2,241,500
Charge to profit or loss
9,243
Liability at 31 July 2024
2,250,743
20
Government grants
2024
2023
£
£
Arising from government grants
345,000
352,500
345,000
352,500

Deferred income is included in the financial statements as follows:

2024
2023
£
£
Current liabilities
7,500
7,500
Non-current liabilities
337,500
345,000
345,000
352,500
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
574,584
129,932

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

SIMPSINNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 25 -
22
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
2 Ordinary shares of £1 each
2
2
1 Ordinary A shares of £1 each
1
1
1 Ordinary B shares of £1 each
1
1
4
4

 

23
Non-distributable profits reserve
2024
2023
£
£
At the beginning of the year
(31,722)
1,586
Non distributable profits in the year
134,207
(33,308)
At the end of the year
102,485
(31,722)

Included within the profit and loss reserve is an amount of £102,485 (2023 - £31,722) which relates to the fair value movement of the listed share investments. These reserves are not distributable until realised.

24
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
63,490
28,843
Between two and five years
169,320
30,574
In over five years
85
86
232,895
59,503
25
Related party transactions
Transactions with related parties

 

SIMPSINNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
25
Related party transactions
(Continued)
- 26 -

 

2024
Balance
Amounts owed by related parties
£
Entities with control, joint control or significant influence over the company
15,048
There were no amounts owed in the previous period.

No guarantees have been given or received.

 

26
Directors' transactions

Dividends totalling £24,568 (2023 - £206,000) were paid in the year in respect of shares held by the company's directors.

 

'Other Creditors' includes the sum of £656,925 owed from the directors to the company (2023 - £37 due from the company to its directors and included in 'Other Creditors'). This balance is repayable on demand with no interest payable

27
Ultimate controlling party

The company is under the control of the board of directors.

28
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
905,580
1,084,331
Adjustments for:
Taxation charged
359,261
397,048
Finance costs
354,909
293,998
Investment income
(142,915)
(83,426)
Depreciation and impairment of tangible fixed assets
483,357
175,821
(Gain)/loss on sale of investments
(41,536)
38,555
Other gains and losses
(134,207)
33,308
Movements in working capital:
Increase in stocks
(1,569)
(33,516)
(Increase)/decrease in debtors
(7,000)
890,282
Increase in creditors
172,589
142,110
Decrease in deferred income
(7,500)
(7,500)
Cash generated from operations
1,940,969
2,931,011
SIMPSINNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 27 -
29
Analysis of changes in net debt
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
2,874,466
196,837
3,071,303
Borrowings excluding overdrafts
(4,280,133)
45,283
(4,234,850)
(1,405,667)
242,120
(1,163,547)
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