SKAIRFIELD LIMITED


Directors	JARDINE-PATERSON, James Michael
	JOHNSTONE, David Patrick Wentworth Hope, Lord
	MOUNSEY-HEYSHAM, Toby Herchard
	ROUTLEDGE, Oliver Myles


Registered Address	Armstrong Watson, 51 Rae Street
	Dumfries
	DG1 1JD


Registered Number	SC183096 (Scotland)

Notes to the Financial Statements
for the year ended 28 February 2025

1.	Accounting policies

	Statutory information
	The company is a private company limited by shares and registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

	Basis of preparation
	The financial statements have been prepared under the historical cost convention on a going concern basis unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

	Functional and presentation currency
	The financial statements are presented in sterling and this is the functional currency of the company.

	Judgements and key sources of estimation uncertainty
	The preparation of financial statements in conformity with FRS 102 requires management to make key judgements that affect the application of policies and reporting amounts of assets, income and expenses. The judgements that have a significant risk of causing a material adjustment are discussed below: Accounting treatment of standing timber Management deem a key area of judgement within these financial statements to be the accounting for standing timber and whether it should be classified as fixed assets or inventory. It is our assessment that based on the nature of this standing timber being held to maturity where it is then consumed, that it is deemed more appropriate to account for this as inventory as opposed to a fixed asset, in line with the definition of fixed assets set out in the Companies Act 2006.

Judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with FRS 102 requires management to make key judgements that affect the application of policies and reporting amounts of assets, income and expenses.
The judgements that have a significant risk of causing a material adjustment are discussed below:

Accounting treatment of standing timber
Management deem a key area of judgement within these financial statements to be the accounting for standing timber and whether it should be classified as fixed assets or inventory. It is our assessment that based on the nature of this standing timber being held to maturity where it is then consumed, that it is deemed more appropriate to account for this as inventory as opposed to a fixed asset, in line with the definition of fixed assets set out in the Companies Act 2006.

	Turnover policy
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Turnover policy

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. 

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

	Current taxation
	Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

	Deferred tax
	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

Deferred tax

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. 

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Tangible fixed assets and depreciation
	Tangible fixed assets are stated at cost or valuation less depreciation. 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 disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement Depreciation is provided on all tangible fixed assets as follows: Land and buildings - 10% straight-line/not depreciated Office equipment - 20% straight-line

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost or valuation less depreciation. 

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 disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement

Depreciation is provided on all tangible fixed assets as follows:
Land and buildings - 10% straight-line/not depreciated
Office equipment - 20% straight-line


		Straight line (years)
	Land and buildings	10
	Office Equipment	5

	Investments
	Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value where the difference between cost and fair value is material. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the Income Statement.

Investments

Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value where the difference between cost and fair value is material. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the Income Statement.

	Investment property
	Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate. These values are adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Income Statement.

	Stocks and work in progress
	Stocks relate to standing timber and are stated at the lower of cost and net realisable value. The volume of standing timber is assessed at each reporting date by the directors with assistance from independent experts when required. This is compared to the initial volume acquired to determine the extent of any reduction in the period. Where usage of standing timber has exceeded growth leading to a net reduction in volume the Company calculates the volume used as a percentage of the total acquired and calculates a proportionate element of the original cost which is then charged to the profit and loss account. Where the volume of wood at the end of a reporting period exceeds the original volume acquired the Company does not revalue the stock upwards to reflect this increase, in line with the policy of holding stock at cost.

Stocks and work in progress

Stocks relate to standing timber and are stated at the lower of cost and net realisable value. The volume of standing timber is assessed at each reporting date by the directors with assistance from independent experts when required. This is compared to the initial volume acquired to determine the extent of any reduction in the period. Where usage of standing timber has exceeded growth leading to a net reduction in volume the Company calculates the volume used as a percentage of the total acquired and calculates a proportionate element of the original cost which is then charged to the profit and loss account. Where the volume of wood at the end of a reporting period exceeds the original volume acquired the Company does not revalue the stock upwards to reflect this increase, in line with the policy of holding stock at cost.

	Trade and other debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Trade and other debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

	Trade and other creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

	Financial instruments
	The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

2.	Average number of employees


		2025		2024
	Average number of employees during the year	4		5

3.	Tangible fixed assets

	Land & buildings	Office Equipment	Total
	£	£	£
Cost or valuation
At 01 March 24	5,571,968	469	5,572,437
At 28 February 25	5,571,968	469	5,572,437
Depreciation and impairment
At 01 March 24	209,879	468	210,347
Charge for year	10,456	-	10,456
At 28 February 25	220,335	468	220,803
Net book value
At 28 February 25	5,351,633	1	5,351,634
At 29 February 24	5,362,089	1	5,362,090


	Commercial woodlands held by the company were revalued in 2022 based on external valuations by Scottish Woodlands. The directors believe the valuations attributed are still accurate at 29 February 2024. If commercial woodlands had not been included at valuation they would have been included under the historical cost convention as follows: 2025 £1,435,452 2024 £1,435,452

4.	Investment property
	The 2022 valuations were made by G M Thomson & Co, on an open market value for existing use basis. The directors believe these valuations are still accurate at 28 February 2025. If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows: 2025 £476,135 2024 £476,135


		£
	Fair value at 01 March 24	565,000
	At 28 February 25	565,000

5.	Fixed asset investments

	Other investments¹	Total
	£	£
Cost or valuation
At 01 March 24	459,707	459,707
Additions	127,242	127,242
Revaluations	15,589	15,589
Disposals	(106,339)	(106,339)
At 28 February 25	496,199	496,199
Net book value
At 28 February 25	496,199	496,199
At 29 February 24	459,707	459,707

	Notes
	¹Other investments other than loans

6.	Stocks

	2025	2024
	£	£
Other stocks	2,383,373	2,480,426
Total	2,383,373	2,480,426

7.	Debtors: amounts due within one year

	2025	2024
	£	£
Trade debtors / trade receivables	41,239	-
Other debtors	-	3,249
Prepayments and accrued income	12,367	36,370
Total	53,606	39,619

8.	Creditors: amounts due within one year

	2025	2024
	£	£
Trade creditors / trade payables	208	208
Taxation and social security	34,971	-
Accrued liabilities and deferred income	55,804	19,870
Total	90,983	20,078

9.	Provisions for liabilities

	2025	2024
	£	£
Net deferred tax liability (asset)	972,200	979,100
Total	972,200	979,100

10.	Events after reporting date
	It is the directors' policy to retain cash within the company with the intention of purchasing forestry assets in line with the overall company strategy. Progress has ben made in this respect with the identification of a potential forest, however the purchase has been delayed awaiting the outcome of regulatory surveys. It is anticipated that the purchase of this forest will be completed in 2026, subject to favourable survey reports.

10.

Events after reporting date

It is the directors' policy to retain cash within the company with the intention of purchasing forestry assets in line with the overall company strategy. 

Progress has ben made in this respect with the identification of a potential forest, however the purchase has been delayed awaiting the outcome of regulatory surveys.

It is anticipated that the purchase of this forest will be completed in 2026, subject to favourable survey reports.

	Notes	2025		2024
		£	£	£	£
Fixed assets
Tangible assets	3		5,351,634		5,362,090
Investments	5		496,199		459,707
Investment property	4		565,000		565,000
			6,412,833		6,386,797
Current assets
Stocks	6	2,383,373		2,480,426
Debtors	7	53,606		39,619
Cash at bank and on hand		2,196,199		1,944,707
		4,633,178		4,464,752
Creditors amounts falling due within one year	8	(90,983)		(20,078)
Net current assets (liabilities)			4,542,195		4,444,674
Total assets less current liabilities			10,955,028		10,831,471
Provisions for liabilities	9		(972,200)		(979,100)
Net assets			9,982,828		9,852,371
Capital and reserves
Called up share capital			1,430,002		1,430,002
Revaluation reserve			4,222,380		4,222,380
Profit and loss account			4,330,446		4,199,989
Shareholders' funds			9,982,828		9,852,371