Company registration number SC372531 (Scotland)
Lows Orkney Limited
unaudited financial statements
for the year ended 28 February 2025
Pages for filing with registrar
Lows Orkney Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 11
Lows Orkney Limited
Balance sheet
as at 28 February 2025
- 1 -
28 February 2025
29 February 2024
Notes
£
£
£
£
Fixed assets
Tangible assets
4
656,155
691,050
Investments
5
63
64
656,218
691,114
Current assets
Debtors
6
412,339
355,678
Cash at bank and in hand
774,050
687,070
1,186,389
1,042,748
Creditors: amounts falling due within one year
7
(772,739)
(675,005)
Net current assets
413,650
367,743
Total assets less current liabilities
1,069,868
1,058,857
Creditors: amounts falling due after more than one year
8
(115,870)
(140,493)
Provisions for liabilities
(19,428)
(29,065)
Net assets
934,570
889,299
Capital and reserves
Called up share capital
10
850
850
Share premium account
11
9,666
9,666
Capital redemption reserve
11
350
350
Profit and loss reserves
11
923,704
878,433
Total equity
934,570
889,299
Lows Orkney Limited
Balance sheet (continued)
as at 28 February 2025
- 2 -
For the financial year ended 28 February 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 1 September 2025 and are signed on its behalf by:
C M Smith
Director
Company registration number SC372531 (Scotland)
Lows Orkney Limited
Notes to the financial statements
for the year ended 28 February 2025
- 3 -
1
Accounting policies
Company information
Lows Orkney Limited is a private company limited by shares incorporated in Scotland. The registered office is 5 Broad Street, Kirkwall, Orkney, KW15 1DH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies' regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet 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 statements.
1.3
Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
Rendering of services
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
1.4
Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated
depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Lows Orkney Limited
Notes to the financial statements (continued)
for the year ended 28 February 2025
1
Accounting policies (continued)
- 4 -
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using both the straight line method and on a reducing balance basis.
Freehold property
no depreciation
Leasehold improvements
4% on cost
Equipment, fixtures and fittngs
25% on reducing balance
Computer equipment
20% on cost
Motor vehicles
25% on reducing balance & 33% on cost
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Profit & Loss Account.
The non depreciation of freehold property is a departure from the requirements of section 1A of FRS 102. The directors believe it is appropriate not to depreciate freehold property as they believe the property will only increase in value and therefore depreciation should not be applied.
1.5
Fixed asset investments
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Profit & Loss Account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
1.6
Borrowing costs
All borrowing costs are recognised in the Statement of Income and Retained Earnings in the year in which they are incurred.
1.7
Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
1.8
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.
Lows Orkney Limited
Notes to the financial statements (continued)
for the year ended 28 February 2025
1
Accounting policies (continued)
- 5 -
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
Taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in the Profit & Loss Account except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
Current tax
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.
Deferred tax
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Lows Orkney Limited
Notes to the financial statements (continued)
for the year ended 28 February 2025
1
Accounting policies (continued)
- 6 -
1.10
Provisions
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Profit & Loss Account in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
1.11
Retirement benefits
The company contributes to a pension fund for its employees and directors.
The contributions are recognised as an expense in the Profit & Loss Account when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet.
1.12
Interest income is recognised in the Profit & Loss Account using the effective interest method.
1.13
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
1.14
Finance costs are charged to the Profit & Loss Account over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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.
Lows Orkney Limited
Notes to the financial statements (continued)
for the year ended 28 February 2025
- 7 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2025
2024
Number
Number
Total
28
27
4
Tangible fixed assets
Freehold property
Leasehold improvements
Equipment, fixtures and fittngs
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2024
530,000
151,198
76,161
151,883
97,017
1,006,259
Additions
2,678
2,634
5,312
Disposals
(3,042)
(3,042)
At 28 February 2025
530,000
151,198
78,839
154,517
93,975
1,008,529
Depreciation and impairment
At 1 March 2024
102,815
70,458
88,261
53,675
315,209
Depreciation charged in the year
6,048
2,095
20,960
11,104
40,207
Eliminated in respect of disposals
(3,042)
(3,042)
At 28 February 2025
108,863
72,553
109,221
61,737
352,374
Carrying amount
At 28 February 2025
530,000
42,335
6,286
45,296
32,238
656,155
At 29 February 2024
530,000
48,383
5,703
63,622
43,342
691,050
5
Fixed asset investments
2025
2024
£
£
Shares in group undertakings and participating interests
63
64
The company's investment, at balance sheet date, is related to shares held in Orkney Auction Mart Limited.
Lows Orkney Limited
Notes to the financial statements (continued)
for the year ended 28 February 2025
5
Fixed asset investments (continued)
- 8 -
Movements in fixed asset investments
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 March 2024
64
Disposals
(1)
At 28 February 2025
63
Carrying amount
At 28 February 2025
63
At 29 February 2024
64
6
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
149,532
159,442
Amounts recoverable on contracts
145,000
108,000
Other debtors
53,144
36,394
Prepayments and accrued income
64,663
51,842
412,339
355,678
7
Creditors: amounts falling due within one year
2025
2024
£
£
Bank loans
18,265
15,000
Other loans
4,576
6,864
Corporation tax
261,874
189,166
Other taxation and social security
126,848
104,198
Other creditors
275,872
250,900
Accruals and deferred income
85,304
108,877
772,739
675,005
The bank loans are secured by a fixed charge over one of the properties of the company.
Lows Orkney Limited
Notes to the financial statements (continued)
for the year ended 28 February 2025
- 9 -
8
Creditors: amounts falling due after more than one year
2025
2024
£
£
Bank loans and overdrafts
115,870
135,917
Other loans
4,576
115,870
140,493
The bank loan is secured by a fixed charge over one of the properties of the company.
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2025
2024
Balances:
£
£
At beginning of year
29,065
22,457
Charged to profit or loss
(9,637)
6,608
19,428
29,065
10
Called up share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.1p each
250,000
250,000
250
250
A non-voting ordinary shares of 0.1p each
120,000
120,000
120
120
B non-voting ordinary shares of 0.1p each
120,000
120,000
120
120
C non-voting ordinary shares of 0.1p each
120,000
120,000
120
120
E non-voting ordinary shares of 0.1p each
120,000
120,000
120
120
F non-voting ordinary shares of 0.1p each
120,000
120,000
120
120
850,000
850,000
850
850
Lows Orkney Limited
Notes to the financial statements (continued)
for the year ended 28 February 2025
- 10 -
11
Reserves
Share premium
The share premium account has arisen on the sale of shares in excess of the par value and is a non-distributable reserve.
Capital redemption reserve
The capital redemption reserve has arisen on the purchase of the company’s own shares and is a non-distributable reserve.
Profit and loss account
The profit and loss account includes all current and prior year profit and losses.
12
Pension commitments
The company contributes to a pension fund for its employees and directors. The pension cost and charge represents contributions payable by the company to the pension fund and amounted to £99,319 (2024: £78,574). At the year end contributions of £10,124 (2024: £Nil) remained due to the fund.
13
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
Restated
2025
2024
£
£
Within one year
34,604
34,740
Between two and five years
34,188
66,309
68,792
101,049
Lows Orkney Limited
Notes to the financial statements (continued)
for the year ended 28 February 2025
- 11 -
14
Related party transactions
Transactions with related parties
At the year-end sums were due to the following directors:
2025
2024
£
£
J C Stevenson
25,038
-
E J Thomson
50,385
22,515
D M N Hill
62,754
43,066
E T C Nicolson
63,203
62,868
E J Penny
-
48,000
C M Smith
63,705
72,187
265,085
248,636
The sums are interest free and repayable on demand.
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