The directors present the strategic report for the year ended 31 March 2025.
We are pleased to report that the profit before tax for the year ended 31 March 2025 was £3,287,991 compared to £2,357,758 in 2024.
A & J Scott Limited achieved an increased turnover of £38,863,775 compared to the previous trading turnover of £34,602,075 for the year ended 31st March 2024. Looking ahead we are on track with our 25/26 forecast of over £39m.
We achieved another steady increase in Gross Profit amounting to £9,775,261
Profit after tax amounted to £2,508,891
The directors consider the results for the year ended 31st March 2025 to be satisfactory and the increase in the consolidated Shareholders' Funds from £33,091,474 to £34,700,365 a solid base for further investment.
The following key financial and other performance indicators during the year are for A & J Scott Limited alone. As our subsidiary East Roddam Estate Limited is a start-up company, we have not introduced KPI’s at this time.
Key Performance Indicators
KPI Units 2025 2024
Gross profit margin % 25.27 24.57
Net profit margin % 8.22 6.81
EBITDA £m 6.05 5.05
Inventory turnover days Days 54.40 66.00
The group finances its operations mainly through retained profits, with some asset finance borrowings.
The directors’ objectives in relation to its finances is to manage the working capital, namely debtors, creditors, and bank balances and to meet day to day obligations as and when they fall due.
They aim to maximise returns on surplus funds whilst minimising any exposure to fluctuating interest rates on borrowings in the pursuit of new investments or capital expenditure programmes. The group operates a credit insurance policy to insure against bad debt.
Management focus on Key Performance Indicators encompassing manufacturing efficiencies and cost control through Cost Centre Management.
Our intention is to continue to enhance trading and long-term profitability. A & J Scott Limited are a family-owned business, who believe re-investing profits back into the business ensuring we retain efficiency and maintain competitiveness in the market.
Health and safety risk
The group continues to invest in new technologies, which fit with our overall thinking and approach towards Health & Safety.
We continually work to prevent accidents and work-related ill health, striving to provide safe working conditions and adequate welfare. We take the safety of our staff, customers, contractors and visitors very seriously and review and update all Risk Assessments accordingly.
The group focuses on important development and training in line with the continuous improvement of the Health & Safety culture throughout the group which is communicated at all levels of the business.
A & J Scott Limited understand both the importance of looking after our employees physical Health & Safety, and equally supporting Mental Health throughout the workforce.
Environmental Risk
At A & J Scott Limited, our environmental and social responsibilities still sit very high in our approach to how we operate. We take natures contribution to our industry very seriously hence why we only source round timber from well managed forests in the UK that operate robust and sustainable programmes of replanting and renewal.
The group maintains certification to ensure that all timber is sourced from sustainable forests. We remain committed in our continued approach to all our business activities by always considering ecological, social and sustainable environmental factors.
Through achieving, maintaining and exceeding the qualifying criteria for memberships and accreditations, we can guarantee our customers that our products and sawn timber are manufactured from home-grown softwood or hardwood which has been grown and harvested in accordance with their environmental care and sustainability policies.
The group holds an environmental permit as required through LAPPC (Local Authority Pollution Prevention Control) the permit covers our timber treatment operations under Schedule 1, section 6.6 timber activities Part A (2) (a) for the preservation of wood and wood products with a chemical with a production capacity greater than 75m3 per day other exclusively treat against sap stain in accordance with The Pollution and Prevention Control Act 1999 Environmental Permitting (England and Wales) Regulations 2016 (as amended). Our permit number is EPN/15/004.
The group entered into a CCA (Climate Change Agreement) in 2014, in which we are well ahead of our targets.
A Senior Manager within the business has completed a programme of study designed by the University of Cambridge’s institute for sustainability leadership in business sustainability management which has allowed the business to develop further it’s sustainability strategies along with other sustainability initiatives. This includes the development of a group Environmental, Social and Governance (ESG) Strategy that aligns with the UN sustainability goals.
With a clear ESG strategy we are able to focus on key elements enabling us to maximise our positive impacts and reduce our negative impacts whilst strengthening our ability to influence a positive culture and engage with stakeholders.
At A & J Scott Limited we remain committed to reducing our impact on the planet and its natural resources and crucially helping to improve the quality of life for future generations. We understand that business as usual is no longer an option in terms of protecting the planet and the people who inhabit it. This is why we have thought through our objectives and have aligned our business strategy to the UN SDG’s to enable us to position ourselves to working towards building a better and more prosperous future for all. We now have a clearer picture of the journey ahead and we look forward to delivering on our commitments to support a better future for all to thrive and enjoy.
The directors are optimistic for the future performance of the business.
The group has re-invested profits made during recent years in new plant and machinery mainly from cash generated. This allows us to further establish ourselves as one of the market leaders in sawmilling of quality Homegrown British Timber.
2021 saw the installation of a new Log Sorting Line which doubles the capacity of the existing line. This investment has greatly increased our capacity to grade logs.
The second phase of investment following on from the Log Sorting Line was the upgrading of one of our main sawmills. This work commenced in 2022 and was completed in March 2023 and is now increasing our recovery rates from logs processed in the mill.
The duel ground mount and roof mount solar panel installation is helping mitigate rising energy costs. It was commissioned in November 2023 and will greatly reduce our electricity from the grid going forward.
The Scott family shareholders are firm believers in re-investing profits back into the business to fund modern state of the art sawmilling equipment to ensure we improve efficiency and maintain competitiveness to enable us to best support our increasing customer base.
In January 2025 A & J Scott Limited entered into contracts to purchase a new sawmill. This investment in Mill 10 is expected to boost output by 40%. The new sawmill will feature a fully integrated system, including a log infeed, a high-performance saw line, an automated high-speed edging line, crosscut, stacking, and sorting lines for both centre and side-board products. Complementing this will be a fully integrated co-product handling system, ensuring optimal efficiency, sustainability, and resource utilisation. The build will continue thought 2025 and 2026 and commissioning will take place in Q1 2027.
The Board consider, both individually and collectively, that they have acted in a way that they consider in good faith, would be most likely to promote the success of the group for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s.172 (a-f) of the Companies Act 2006) in the decisions taken during the year ended 31st March 2025.
We communicate with our employees through a variety of channels including workplace forums and newsletters. Our HR department has an open door policy so employees can discuss any issues they may have confidentially, whether relating to work or personal matters. We have various notice boards sited throughout the organisation and we carry out where appropriate, documented toolbox talks.
We also have two staff members with qualifications in FAQ Level 3 Award in Mental Health which enables them to spot signs and symptoms of mental health conditions and signpost employees in the right direction. They are there to offer help if required whilst maintaining confidentiality.
In addition we have an Employee Assistance Programme (EAP) to provide our team of employees with support and practical advice on issues that may be impacting their health and wellbeing and performance.
The strength of our relationships with customers and suppliers has been central to our success in recent years. The vast majority of our sales come from repeat business with a diverse range of key accounts, and the close relationships we have developed enables us to understand their needs and anticipate future trends in demand. This understanding of our customers and markets drives our investment in product development and new production capacity.
We also work closely with our suppliers to anticipate changes in the market and new technologies. Additionally, we seek to ensure that they operate ethically, taking due consideration sustainable forestry regulations, minimisation of environmental impacts and the safety and well-being of their workforce. By working closely with and setting high standards for our suppliers, we reduce operating and reputational risk and promote the long term success of the group.
By order of the board
The directors present their annual report and financial statements for the year ended 31 March 2025.
The results for the year are set out on page 14.
Ordinary dividends were paid amounting to £900,000. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group finances its activities with a combination of finance leases and hire purchase contracts, cash and short term deposits. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the group operating activities.
Cash flow and liquidity risk is the risk that a group's available cash will not be sufficient to meet its financial obligations. The group actively manages its cash flow position including collection of debts and timely payment of creditors. This, coupled with the strong cash position of the group is deemed sufficient to minimise the group exposure to cash flow and liquidity risk.
Foreign exchange risk refers to the potential for loss from exposure to foreign exchange rate fluctuations. Group policies including regular monitoring of exchange rates and forward currency purchases, are aimed at minimising this risk. The group does not consider that it is materially exposed to foreign exchange risk.
Credit risk is the risk that one party of a financial instrument will cause a financial loss for the other party by failing to discharge its obligation. Group policies are aimed at minimising such losses and require customers to satisfy credit worthiness procedures prior to acceptance of contracts. The group also utilises credit insurance policies to protect against non-payment of debt. The group does not consider that it is materially exposed to credit risk.
Price risk is the risk that changes raw material prices have the potential to impact on the profitability of the group. The group does not consider that it is materially exposed to price risk and monitors prices on a regular basis.
The group embarked on an ongoing Research and Development Programme to improve and develop the productivity and throughput of production facilities. The results of which have seen the group maintain its profitability and competitiveness in the market.
The group meets its day to day working capital requirements through cash generated from operations.
The group's forecasts and projections for the next twelve months show that it should be able to continue in operational existence for that period and operate within the facilities currently available to it, taking into account reasonable possible changes in trading performance. At the year end the financial statements the group showed significant cash balances.
Having considered the current cash forecasts of the group, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for a period of a least twelve months from the date of signing these financial statements.
Based on the factors set out above the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
The directors continuously research and investigate new sawmilling technology to evaluate short-term and long-term investment plans. The directors believe that the group is in a good financial position and they remain confident that the group will continue to grow.
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the group will be put at a General Meeting.
We have considered the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) when preparing this report. These recommendations encourage businesses to increase disclosure of climate-related information, with an emphasis on financial disclosure. A. & J. Scott Limited supports these recommendations and are committed to disclosing the relevant information which can be found below.
Governance
The UK Government’s Streamlined Energy and Carbon Reporting (SECR) policy was implemented on 1 April 2019. The table below represents the group’s energy use and associated greenhouse gas (GHG) emissions from electricity and fuel in the UK for the year ended 31 March 2025.
Scope 1 consumption and emissions relate to direct combustion of natural gas, and fuels utilised for transportation operations, such as group vehicle fleets.
Scope 2 consumption and emissions relate to indirect emissions relating to the consumption of purchased electricity in day-to-day business operations.
Scope 3 consumption and emissions relate to emissions resulting from sources not directly owned by the reporting group.
Management’s role in assessing and managing climate related risks and opportunities
A & J Scott Limited will continue to assess and manage climate related risks and opportunities by striving to implement wherever possible new and efficient technologies. This will include, but not be limited to, selecting cleaner more energy efficient plant and equipment in any new development or when replacing older less efficient equipment. Continued monitoring of energy usage will facilitate the ability to target higher use activities and areas.
Strategy
A & J Scott Limited strategy is always to look forward, to plan, invest and educate now so that we can secure a greener and cleaner future. To always consider our actions and environmental impacts both negative and positive in all our activities and accepting that business as usual is no longer an option in terms of sustainable activities. To continue to consider the protection of our planet so that it can be enjoyed by future generations. To share information and best practices and to form and be part of a strong network within the organisation and beyond.
Sustainability
During this reporting period we have seen reductions in electricity consumption and diesel (DERV) consumption compared to previous years reports.
We expect to see further reductions in electricity consumption for the next reporting period largely due to the expected performance from ground mounted and roof mounted solar panels and the installation of a Battery Energy Storage System with a capacity of 4.5mw charged by our Solar systems.
As well as continuing to meet and exceed targets set our in our climate change agreement that the group entered into in 2014, we have now introduced a comprehensive ESG strategy. The EST strategy aligns with all relevant UN sustainability goals which form he backbone of the strategy. One of the aims within the strategy is to half emissions by 2030 and to reach net zero before 2050.
Metrics and Targets
The metrics used to collect this data are:
Purchased Electricity – Data collected from electricity used.
DERV – Fuel purchased data
Red Diesel (Gas Oil) – Fuel purchased data (Ceased in 2022-23)
LPG – Purchase history data
Summary of scope 1 (direct) greenhouse gas emissions for the year ended 31 March 2025
Diesel fuel (DERV) used for group road vehicles in litres
Diesel fuel (Gas Oil) used for internal mobile plant and static plant in litres ((No longer used, phased out and replaced by DERV).
LPG used for FLT’s delivered in Kgs
Summary of Scope 2 (indirect) greenhouse gas emissions for the year ended 31 March 2025
Purchased electricity measured in kWh’s
Summary of scope 3 (other indirect) greenhouse gas emissions for the year ended 31 March 2025
Scope 3 not considered, no private vehicle usage for business purposes.
Conversion Factors:
Type | Conversion x by amount / 1000 |
Electricity | .207074 x kWh / 1000 |
DERV | 2.51 x litres / 1000 |
Gas Oil | 2.75857 – No longer applicable. |
LPG | (1kg=1.969 litres) Litres x 1.56 /1000 |
Consumption:
Type | Qty & Unit – 01.04.24 to 31.03.25 | Qty & Unit – 01.04.23 to 31.03.24 | Average per month 2023 12-month period | Qty & Unit – 01.01.22 to 31.03.23 | Average per month 2022 15-month period | Qty & Unit – 01.01.21 to 31.12.21 | Average per month 2021 12-month period |
Electricity Wooperton (Scope 2) | 4,333,770 kWh | 4,921,972 kWh | 410,164 kWh | 6,899,057 kWh | 459,937 kWh | 6,061,468 kWh | 505,122 kWh |
Electricity Chirnside (Scope 2) | 123,782 kWh | 117,978 kWh | 9,831kWh | 207,667 kWh | 13,844 kWh | 149,008 | 12,417 kWh |
Total Electricity (Scope 2) | 4,457,552 kWh | 5,039,950 kWh | 419,996 kWh | 7,016,724 kWh | 473,782 kWh | 6,210,476 kWh | 517,540 kWh |
DERV Wooperton (Scope 1) | 164, 207 litres | 250,604 litres | 20,884 litres | 256,011 litres | 17,067 litres | 218,271 litres | 18,189 litres |
Red Diesel (Gas Oil) Wooperton (Scope 1) | 0 Litres | 0 litres | 0 | 57,050 litres | 3,803 litres | 309,097 litres | 25,758 kWh |
Red Diesel (Gas Oil) Chirnside (Scope 1) | 0 Litres | 0 litres | 0 | 1000 litres | 67 litres | 6,996 litres | 583 litres |
DERV Chirnside (Scope 1) | 5,000 Litres | 3,001 litres | 250 litres | 3,000 litres | 200 litres | 0 | 0 |
LPG (Scope 1) FLT | 0 | 7,524 kgs | 627 kgs | 19,746 kgs | 1,316 kgs | 3042 kgs | 254 kgs |
LPG Bulk | 2,659 Litres |
|
|
|
|
|
|
DERV Total | 169,207 | 253,605 litres | 21,134 litres | 259,011 litres | 17,267 litres | 218,271 litres | 18,189 litres |
Red Diesel (Gas Oil) Total | 0 | 0 |
| 58,050 litres | 3,870 litres | 316,093 litres | 26,341 litres |
Emissions:
Type | 01.04.24 to 31.03.25 | Average per month 2024 12-month period | 01.04.23 to 31.03.24 | Average per month 2023 12-month period | 01.01.22 to 31.03.23 | Average per month 2022 15-month period | 01.01.21 to 31.12.21 | Average per month 2021 12-month period |
Electricity | 923 | 76.92 | 1043.64 | 86.97 | 1,508.97 | 100.60 | 1318.7 | 109.89 |
DERV | 425 | 35.42 | 636.55 | 53.05 | 650.72 | 43.38 | 548.37 | 45.70 |
Red Diesel (Gas oil) | 0 | 0 | 0 | 0 | 160.13 | 10.68 | 871.96 | 72.66 |
LPG | 4.14 | .345 | 23.11 | 1.93 | 60.06 | 4.00 | 8.94 | .75 |
Total Energy consumption (tCO2e) | 1,352.14 | 112.68 | 1,703.30 | 141.95 | 2,379.88 | 158.66 | 2,747.97 | 229.00 |
Intensity ratio:
| Qty & Unit – 01.04.24 to 31.03.25 | Qty & Unit – 01.04.23 to 31.03.24 | Average per month 2023 12-month period | Qty & Unit – 01.01.22 to 31.03.23 | Average per month 2023 15-month period | Qty & Unit – 01.01.21 to 31.12.21 | Average per month 2023 12-month period |
Total production output volume (m3) | 140,292 | 132,124 | 11,010 | 183,692 | 12,246 | 166,760 | 13,897 |
Total emissions (tCO2e) | 1352.14 | 1703 | 142 | 2380 | 158.66 | 2748 | 229 |
Tonnes of CO2e per 1000m3 | 9.63 | 12.89 | 12.89 | 12.95 | 12.95 | 16.48 | 16.48 |
We have audited the financial statements of A. & J. Scott Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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).
Basis for 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 group's and parent 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.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
We identified the following applicable laws and regulations as those most likely to have a material impact on the financial statements: Health and Safety; employment law (including the Working Time Directive); and compliance with the UK Companies Act.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Use of our 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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,781,394 (2024 - £2,030,476 profit).
A. & J. Scott Limited (“the company”) is a private limited company, limited by shares, domiciled and incorporated in England and Wales. The registered office is Station Sawmills, Wooperton, Alnwick, Northumberland, NE66 4XW.
The group consists of A. & J. Scott Limited and all of its subsidiaries.
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. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company A. & J. Scott Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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 statements.
The group meets its day to day working capital requirements through cash generated from operations.
The group’s forecasts and projections for the next twelve months show that it should be able to continue in operational existence for that period and operate within the facilities currently available to it, taking into account reasonable possible changes in trading performance. At the year end the financial statements the group showed significant cash balances.
Having considered the current cash forecasts of the group, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for a period of a least twelve months from the date of signing these financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue 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 revenue 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.
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 recognised in the income statement.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
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.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.
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 group after deducting all of its 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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable and deferred 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 income statement, 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 if, and only if, there is 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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leased asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
In the application of the group’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.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock is valued under standard costing. The cost of finished goods and goods for resale is calculated per M3 of output and comprises direct materials, direct labour costs and those overheads that have been incurred in production.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).
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:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Investment property comprises of 5 properties. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 16 January 2023 by Aitchinsons Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
Details of the company's subsidiaries at 31 March 2025 are as follows:
For the year ending 31 March 2025, the following subsidiaries were entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies:
East Roddam Estate Limited (company registration number 14460948)
The long-term loans are secured by fixed charges over the property they relate to.
A. & J. Scott Limited has a long term loan with The Directors Retirement Benefit Scheme over a 3 year period incurring an interest rate of 6% for a principle amount of £190,000. The balance at the year end is £nil.
A. & J. Scott Limited has a long term loan with The Directors Retirement Benefit Scheme over a 3 year period incurring an interest rate of 5% for a principle amount of £175,000. The balance at the year end is £nil.
A. & J. Scott Limited has a long term loan with The Directors Retirement Benefit Scheme over a 3 year period incurring an interest rate of 8% for a principle amount of £160,000. The balance at the year end is £119,412. There is a fixed charges secured against the related asset dated 2 April 2024.
A. & J. Scott Limited has a long term loan with The Directors Retirement Benefit Scheme over a 5 year period incurring an interest rate of 8% for a principle amount of £175,000. The balance at the year end is £145,745. There is a fixed charges secured against the related asset dated 3 April 2024.
A. & J. Scott Limited has a long term loan with The Directors Retirement Benefit Scheme over a 5 year period incurring an interest rate of 8% for a principle amount of £185,000. The balance at the year end is £154,073. There is a fixed charges secured against the related asset dated 24 May 2024.
East Roddam Estate Limited has a long term loan with Barclays Bank Plc over a 5 year period incurring an interest rate of 5.87% for a principal amount of £1,955,000. The balance at the year end is £1,920,253.
East Roddam Estate Limited has a long term loan with Barclays Bank Plc over a 5 year period incurring a variable interest rate of base rate +1.58% for a principal amount of £1,955,000. The balance at the year end is £1,922,629.
East Roddam Estate Limited had a long term loan with Barclays Bank Plc over a 3 year period incurring an interest rate of 5.83% for a principal amount of £4,687,500. During the year this balance was refinanced into the above loan. The balance at the year end was £nil.
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Included in the statement of financial position are unpaid pension contributions of £17,902 (2024 - £3,675).
Revaluation reserves represent the surplus obtained from revaluations of investment property.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The operating leases represent leases of farm cottages to third parties. The leases are negotiated over terms of 2-5 years and rentals are fixed for 2-5 years. All leases include a provision for five-yearly upward rent reviews according to prevailing market conditions. There are no options in place for either party to extend the lease terms.
At the reporting end date the group had contracted with tenants for the following minimum lease payments:
Amounts contracted for but not provided in the financial statements:
During the year the group entered into the following transactions with related parties:
A & J Scott Limited Directors Retirement Benefit Scheme is a related party by virtue of common directors. During the period £44,050 (2024 - £42,780) of rent was charged. At the period end the balance was £nil (2024 - £nil).
In addition, A & J Scott Limited Directors Retirement Benefit Scheme have provided loans to the company which have interest charged at market rates. At the period end, the balance was £419,230 (2024 - £39,280).
R Scott Properties Limited is a related party due to being under the common control of a director. During the year £63,000 (2024 - £60,000) of rent was charged by R Scott Properties Limited for the use of the Chirnside Site. At the period end, the balance was £nil (2024 - £nil).
During the year a property was rented out to a family member. The property had an open market rate of £850 per month (2024: £850 per month).
The following amounts were outstanding at the reporting end date:
Dividends totalling £750,000 (2024 - £750,000) were paid in the year in respect of shares held by the company's directors.