ACCOUNTS - Final Accounts preparation

An analysis of turnover by class of business is as follows:

Registered number: SC051158

KAMES FISH FARMING LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

KAMES FISH FARMING LIMITED

COMPANY INFORMATION

Directors	Mr Stuart G Cannon
	The Honourable J E H G Gully
	Mr James I M Gully
	Mr Andrew T C Cannon
	Mr Allan MacIsaac


Company secretary	Mrs Shelagh J Cannon


Registered number	SC051158


Registered office	Kilmelford
	By Oban
	Argyll
	PA34 4XA


Independent auditor	French Duncan LLP (trading as AAB)
	Chartered Accountants and Statutory Auditor
	133 Finnieston Street
	Glasgow
	G3 8HB


Bankers	Bank of Scotland
	Station Road
	Oban
	PA34 4LL

KAMES FISH FARMING LIMITED

CONTENTS

	Page
Strategic report	1 - 2
Directors' report	3 - 4
Independent auditor's report	5 - 8
Statement of income and retained earnings	9
Statement of financial position	10
Statement of cash flows	11
Analysis of net debt	12
Notes to the financial statements	13 - 28

KAMES FISH FARMING LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 JANUARY 2025

Introduction

The directors present their Strategic Report for the year ended 31 January 2025.

Business review

Kames Fish Farming Ltd, is a Scottish family owned fish farm, operating in the Inner Hebrides of Scotland, and specialises in the production and distribution of Scottish Steelhead Trout. Our operations are vertically integrated to encompass the entire lifecycle of the trout, from hatching eggs sourced from our own broodstock, to the production of fully grown 2-6 kg head-on gutted sea grown Scottish Steelhead Trout.

Our premium-quality Scottish Steelhead Trout is primarily sold domestically within the United Kingdom through retail, food service and wholesale markets. As well as international sales to premium seafood services in the United States, European Union and the Asia.

Harvest tonnages increased from the previous year. However, the harvest schedule was disrupted by the stock losses in 2023. Increased global trout and salmon production in 2024 led to lower sale prices, impacting overall profitability.

Turnover was up from £11.9M in 2023/24 to £14.8M in 2024/25. Losses after tax increased from £1.05M to £1.65M.

We anticipate a return to profitability in the next financial year, because of strategic changes in production and sales. Kames remains committed to delivering high-quality, responsibly farmed Scottish Steelhead Trout while supporting local communities and protecting the marine environment.

Principal risks and uncertainties

Operational risk

As with any enterprise, we face certain risks and uncertainties in our operations. Key challenges include addressing biological factors such as gill health and managing sea lice. Additionally, environmental concerns, particularly the impact of predators such as seals, birds, and jellyfish, are critical factors that demand our ongoing attention and mitigation efforts.

Health, safety and environmental risk

The company is subject to stringent health, safety and environmental regulations. Accordingly, the provision of adequate training is a top priority and every precaution is taken to minimise risk in this area. We have processes in place to ensure compliance across the business with regular reporting to the Board on these matters.

Revenue risk

The company continues to focus on building strong relationships with existing and potential customers, and always performs to a high standard to minimise the risk of losing a trading customer. The company is continually reviewing its revenue offerings and increasing the number of third party customers in order to manage this risk.

Competitive risk

The company operates in a competitive industry, and continues to focus on building key relationships with our customers and providing a high quality service to distinguish ourselves over our competitors.

Credit risk

In order to minimise the risk of loss through customer defaults, appropriate credit monitoring systems are in place to manage this risk.

Page 1

KAMES FISH FARMING LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2025

Liquidity risk

The company manages its liquidity risk through the day to day management of working capital having regard to available bank facilities. Forecasts and budgets are in place and performance monitored on a regular basis to ensure that cash requirements are met and that liabilities can be paid as they fall due.

Financial key performance indicators

Outlined below are the key performance indicators that highlight our achievements for the year 2024/25 in comparison to the previous financial year:

2024/25 2023/24

Turnover £14,844,751 £11,898,117

EBITDA £(439,525) £(45,341)

Operating Loss % (10.67%) (9.77%)

Loss before tax £1,709,340 £1,287,988

This report was approved by the board and signed on its behalf.

Mr Andrew T C Cannon

Director

Date: 30 October 2025

Page 2

KAMES FISH FARMING LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 JANUARY 2025

The directors present their report and the financial statements for the year ended 31 January 2025.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:

∙select suitable accounting policies for the Company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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 to 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.

Principal activity

The principal activity of the company is that of fish farming.

Results and dividends

The loss for the year, after taxation, amounted to £1,651,657 (2024 - £1,054,351).

No dividends were paid during the year (2024 - £Nil).

Directors

The directors who served during the year were:

Mr Stuart G Cannon

The Honourable J E H G Gully

Mr James I M Gully

Mr Andrew T C Cannon

Mr Allan MacIsaac

Page 3

KAMES FISH FARMING LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2025

Future developments

The Company will continue to focus on producing quality Scottish Steelhead Trout which are raised with fish welfare as a high priority. We will also continue with the development of our own broodstock which we believe will yield benefits in terms of efficiency and the long term sustainability of the business. We will also look to pursue opportunities for growth and expansion.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

A resolution to appoint AAB Audit & Accountancy Limited as auditor of the company will be proposed at the next general meeting.

This report was approved by the board and signed on its behalf.

Mr Andrew T C Cannon

Director

Date: 30 October 2025

Page 4

KAMES FISH FARMING LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KAMES FISH FARMING LIMITED

Opinion

We have audited the financial statements of Kames Fish Farming Limited (the 'Company') for the year ended 31 January 2025, which comprise the Statement of income and retained earnings, the Statement of financial position, the Statement of cash flows and the related notes, including a summary of 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 the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 31 January 2025 and of its loss for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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 United Kingdom, including the Financial Reporting Council'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 opinion.

Material uncertainty related to going concern

We draw attention to note 2.2 in the financial statements, which indicates that there is material uncertainty relating to credit extended by a key supplier and the company's ability to continue as a going concern should the credit be withdrawn. As stated in note 2.2, these events or conditions, along with the other matters as set forth in note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Page 5

KAMES FISH FARMING LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KAMES FISH FARMING LIMITED (CONTINUED)

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.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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 or the Directors' report.

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

∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

∙the financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of directors' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 3, 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.

Page 6

KAMES FISH FARMING LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KAMES FISH FARMING LIMITED (CONTINUED)

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and Taxation legislation.

We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:

∙Management override of controls to manipulate the company's key performance indicators to meet targets;

∙Occurrence, completeness and timing of revenue recognition;

∙Existence, valuation and cut-off of stock;

∙Management's use of the going concern principle as a basis of preparing financial statements;

∙Management judgement applied in calculating estimates; and

∙Compliance with relevant laws and regulations which directly impact the financial statements and those that the company needs to comply with for the purpose of trading.

Our audit procedures to respond to these risks included:

∙Testing of journal entries and other adjustments for appropriateness;

∙Testing a sample of revenue transactions substantively to ensure occurrence, completeness, and that the timing of recognition was appropriate;

∙Testing a sample of stock transactions substantively to ensure the valuation of stock was appropriate, and attending the year end stock count to test a sample of stock to final stock;

∙Stress test management's budgets and projections to ensure there are sufficient cash reserves;

∙Evaluating the business rationale of significant transactions outside the normal course of business;

∙Reviewing judgements made by management in their calculation of accounting estimates for potential management bias;

∙Enquiries of management about litigation and claims and inspection of relevant correspondence;

∙Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non-compliance with laws and regulations;

∙Performing a disclosure checklist on the financial statements to ensure Companies Act 2006 requirements are satisfied;

∙Analytical procedures to identify any unusual or unexpected trends or relationships; and

∙Reviewing minutes of meetings of those charged with governance to identify any matters indicating actual or potential fraud.

Page 7

KAMES FISH FARMING LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KAMES FISH FARMING LIMITED (CONTINUED)

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 for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.

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.

Nicola MacLennan (Senior statutory auditor)

for and on behalf of

French Duncan LLP

Chartered Accountants and Statutory Auditor

133 Finnieston Street

Glasgow

G3 8HB

30 October 2025

Page 8

KAMES FISH FARMING LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 JANUARY 2025

	2025	2024
Note	£	£


Turnover	4	14,844,751	11,898,117
Cost of sales		(14,232,105)	(10,984,619)
Gross profit		612,646	913,498
Administrative expenses		(2,470,473)	(2,378,184)
Other operating income	5	273,876	301,818
Operating loss	6	(1,583,951)	(1,162,868)
Interest receivable and similar income	9	1,552	3,491
Interest payable and similar expenses	10	(126,941)	(128,611)
Loss before tax		(1,709,340)	(1,287,988)
Tax on loss	11	57,683	233,637
Loss after tax		(1,651,657)	(1,054,351)



Retained earnings at the beginning of the year	7,398,320	8,452,671
Loss for the year	(1,651,657)	(1,054,351)
Retained earnings at the end of the year	5,746,663	7,398,320

The notes on pages 13 to 28 form part of these financial statements.

Page 9

KAMES FISH FARMING LIMITED

REGISTERED NUMBER: SC051158

STATEMENT OF FINANCIAL POSITION

AS AT 31 JANUARY 2025

		2025		2024
Note		£		£

Fixed assets
Tangible assets	12		6,667,942		6,742,506
Investments	13		70,000		70,000
			6,737,942		6,812,506
Current assets
Stocks	14	7,910,528		7,500,304
Debtors: amounts falling due within one year	15	1,396,977		899,862
Cash at bank and in hand	16	777,452		621,683
		10,084,957		9,021,849
Creditors: amounts falling due within one year	17	(7,729,969)		(4,796,999)
Net current assets			2,354,988		4,224,850
Total assets less current liabilities			9,092,930		11,037,356
Creditors: amounts falling due after more than one year	18		(2,607,652)		(2,842,738)
Provisions for liabilities
Deferred tax	21		(610,138)		(667,821)
Net assets			5,875,140		7,526,797

Capital and reserves
Called up share capital	22	24,884	24,884
Share premium account	23	27,715	27,715
Capital redemption reserve	23	75,878	75,878
Profit and loss account	23	5,746,663	7,398,320
		5,875,140	7,526,797

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr Andrew T C Cannon

Director

Date: 30 October 2025

The notes on pages 13 to 28 form part of these financial statements.

Page 10

KAMES FISH FARMING LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 JANUARY 2025

			2025	2024
			£	£

Cash flows from operating activities
Loss for the financial year	(1,651,657)	(1,054,351)
Adjustments for:
Depreciation of tangible assets	1,144,426	1,117,527
Loss/(profit) on disposal of tangible assets	12,325	(10,179)
Government grants	(90,065)	(90,065)
Interest paid	126,941	128,611
Taxation charge	(57,683)	(233,637)
(Increase) in stocks	(410,224)	(589,015)
(Increase)/decrease in debtors	(497,115)	69,718
Increase in creditors	2,893,302	1,901,788
Corporation tax received	-	5,095
Net cash generated from operating activities	1,470,250	1,245,492

Cash flows from investing activities
Purchase of tangible fixed assets	(1,088,130)	(1,193,181)
Sale of tangible fixed assets	25,938	21,801
Net cash used in investing activities	(1,062,192)	(1,171,380)
Cash flows from financing activities
New secured loans	345,100	-
Repayment of loans	(260,710)	(257,811)
Repayment of/new finance leases	(209,738)	(199,375)
Interest paid	(126,941)	(128,611)
Net cash used in financing activities	(252,289)	(585,797)
Net increase/(decrease) in cash and cash equivalents	155,769	(511,685)
Cash and cash equivalents at beginning of year	621,683	1,133,368
Cash and cash equivalents at the end of year	777,452	621,683

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	777,452	621,683

The notes on pages 13 to 28 form part of these financial statements.

Page 11

KAMES FISH FARMING LIMITED

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 JANUARY 2025


At 1 February 2024	Cash flows	New bank loans	New finance leases	Other non-cash changes	At 31 January 2025
£	£	£	£	£	£

Cash at bank and in hand	621,683	155,769	-	-	-	777,452
Debt due after 1 year	(984,155)	260,710	(316,324)	-	4,782	(1,034,987)
Debt due within 1 year	(258,517)	-	(28,776)	-	(4,782)	(292,075)
Finance leases	(1,620,110)	209,738	-	(19,995)	-	(1,430,367)
	(2,241,099)	626,217	(345,100)	(19,995)	-	(1,979,977)

The notes on pages 13 to 28 form part of these financial statements.

Page 12

KAMES FISH FARMING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

1.	General information

Kames Fish Farming Limited is a private company limited by shares and is registered and incorporated in Scotland. Its registered office is Kilmelford, Oban, PA34 4XA.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Going concern

The accounts have been prepared on a going concern basis however there is a material uncertainty in relation to credit limits extended by a key supplier, who continues to be supportive. This support has provided liquidity while the company recovers from unexpected biological issues that impacted in the year ended 31 January 2024 however, should the extended credit be withdrawn, the company may be unable to pay its liabilities as they fall due.

The directors are working closely with the supplier to reduce the level of credit and return to standard terms as soon as possible. The directors are looking at financing options, making efficiencies within production and adjusting sales strategy in order to return to profitability, realise working capital and pay down the debt.

The directors have prepared cashflow forecasts, incorporating the potential impact of the above noted factors. On this basis and having considered these factors, the directors have made an informed judgement that the company has adequate working capital to execute its operations over the next 12 months. As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.

Page 13

KAMES FISH FARMING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

2.Accounting policies (continued)

2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

2.4

Revenue

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:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of turnover can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 14

KAMES FISH FARMING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

2.Accounting policies (continued)

2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.6

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of income and retained earnings in the same period as the related expenditure.

2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.9

Finance costs

Finance costs are charged to profit or loss 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.

2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 15

KAMES FISH FARMING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

2.Accounting policies (continued)

2.11

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

2.12

Employee benefits

Short-term employee benefits are recognised as an expense in the period in which they are incurred.

2.13

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss 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.

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 balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

2.14

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.

Page 16

KAMES FISH FARMING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

2.Accounting policies (continued)

2.14

Tangible fixed assets (continued)

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property	-	2%
Long-term leasehold property	-	over the period of the lease
Plant and machinery	-	20%
Motor vehicles	-	20%
Assets under construction	-	not depreciated, not in use
Fish equipment	-	10-20% straight line

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 profit or loss.

2.15

Valuation of 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 reporting date. Gains and losses on remeasurement are recognised in the Statement of income and retained earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.18

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.

Page 17

KAMES FISH FARMING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

2.Accounting policies (continued)

2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.20

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.21

Financial instruments

The Company only 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.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Page 18

KAMES FISH FARMING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that effect the amounts reported for assets and liabilities as at the Statement of Financial Position date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from these estimates. The following judgements and estimates have had the most significant effects on amounts recognised in the financial statements.

Depreciation

The estimates and assumptions made to determine asset lives require judgements to be made as regards useful lives and residual values. The useful lives and residual values of the company's fixed assets are determined by management at the time the asset is acquired and reviewed annually for appropriateness.The lives are based on historical experience with similar assets. Historically changes in useful lives have not resulted in material changes to the company's depreciation charge.

Stock valuation

The valuation of stocks at the year end date requires judgement from management as by its very nature, trout farming means that the volume of biological assets held at each reporting date is itself an estimate. However, the company regularly grades and performs sample counts on all sites. Furthermore, all deviations between expected volumes and actual harvests are measured and reviewed regularly. In general, unless there have been significant disease issues causing higher than normal mortality rates or a period of restricted handling, uncertainty levels are typically low.

	Sale of fish	14,844,751	11,898,117

Analysis of turnover by country of destination:

					2025	2024
					£	£

United Kingdom	7,978,485	7,872,361
Rest of Europe	1,982,136	2,005,299
Rest of the world	4,884,130	2,020,457
	14,844,751	11,898,117

Page 19

KAMES FISH FARMING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

5.	Other operating income
		2025	2024
		£	£

Other operating income	1,443	28,656
Government grants receivable	89,948	102,537
Fees receivable	182,485	170,625
	273,876	301,818

Fees payable to the Company's auditor for the audit of the Company's financial statements	16,200	15,400
Exchange differences	19,288	6,806
Other operating lease rentals	5,544	6,362
Rent - operating leases	145,500	115,500
Depreciation	1,144,426	1,117,527

Wages and salaries	2,007,998	1,900,504
Social security costs	203,084	181,946
Cost of defined contribution scheme	49,832	47,051
	2,260,914	2,129,501

The average monthly number of employees, including the directors, during the year was as follows:

			2025	2024
			No.	No.

			58	59

Page 20

KAMES FISH FARMING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

8.	Directors' remuneration
		2025	2024
		£	£

Directors' emoluments	252,332	248,934
Company contributions to defined contribution pension schemes	8,462	8,488
	260,794	257,422

During the year retirement benefits were accruing to 2 directors (2024 - 3) in respect of defined contribution pension schemes.

9.	Interest receivable
		2025	2024
		£	£

Other interest receivable

1,552

3,491

10.	Interest payable and similar expenses
		2025	2024
		£	£

Bank interest payable	88,671	90,798
Finance leases and hire purchase contracts	38,270	37,813
	126,941	128,611

Page 21

KAMES FISH FARMING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

Corporation tax
Adjustments in respect of previous periods	-	(5,095)

Total current tax	-	(5,095)

Deferred tax
Origination and reversal of timing differences	(78,501)	(228,542)
Adjustments in respect of prior periods	20,818	-
Total deferred tax	(57,683)	(228,542)


	Tax on loss	(57,683)	(233,637)

Loss on ordinary activities before tax

(1,709,340)

(1,287,988)

Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 24.03%)	(427,335)	(309,504)
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	2,064	(3,153)
Adjustments to tax charge in respect of prior periods	-	(5,095)
Other differences leading to an increase (decrease) in the tax charge	346,770	84,115
Adjustments to tax charge in respect of previous periods - deferred tax	20,818	-
Total tax charge for the year	(57,683)	(233,637)

Page 22

KAMES FISH FARMING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

12.	Tangible fixed assets

	Freehold property	Long-term leasehold property	Plant and machinery	Motor vehicles	Assets under construction	Fish equipment	Total
	£	£	£	£	£	£	£
Cost or valuation
At 1 February 2024	1,334,195	299,343	354,310	210,807	36,929	7,836,012	10,071,596
Additions	476,650	-	-	35,695	102,734	493,046	1,108,125
Disposals	-	-	-	(6,155)	(36,929)	-	(43,084)
At 31 January 2025	1,810,845	299,343	354,310	240,347	102,734	8,329,058	11,136,637
Depreciation
At 1 February 2024	91,621	93,528	152,585	56,619	-	2,934,737	3,329,090
Charge for the year	22,197	18,229	69,743	43,855	-	990,402	1,144,426
Disposals	-	-	-	(4,821)	-	-	(4,821)
At 31 January 2025	113,818	111,757	222,328	95,653	-	3,925,139	4,468,695
Net book value
At 31 January 2025	1,697,027	187,586	131,982	144,694	102,734	4,403,919	6,667,942
At 31 January 2024	1,242,574	205,815	201,725	154,188	36,929	4,901,275	6,742,506

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2025	2024
	£	£

Motor vehicles	81,224	80,250
Fish equipment	2,233,268	2,548,164
	2,314,492	2,628,414

Page 23

KAMES FISH FARMING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

13.	Fixed asset investments

		Unlisted investments
		£
	Cost or valuation
	At 1 February 2024 and 31 January 2025	162,270
	Impairment
	At 1 February 2024 and 31 January 2025	92,270
	Net book value
	At 31 January 2025	70,000
	At 31 January 2024	70,000

14.	Stocks
		2025	2024
		£	£

Fish stock	7,620,646	7,116,733
Fuel stock	15,434	16,901
Feed and other stock	274,448	366,670
	7,910,528	7,500,304

15.

Debtors

					2025	2024
					£	£


Trade debtors	1,167,219	617,948
Other debtors	163,656	72,878
Prepayments and accrued income	66,102	209,036
	1,396,977	899,862

Page 24

KAMES FISH FARMING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

16.	Cash and cash equivalents
		2025	2024
		£	£

	Cash at bank and in hand	777,452	621,683

17.	Creditors: Amounts falling due within one year
		2025	2024
		£	£

Bank loans	292,075	258,517
Trade creditors	6,678,832	3,768,789
Other taxation and social security	51,203	53,196
Obligations under finance lease and hire purchase contracts	210,620	204,510
Other creditors	15,000	110,218
Accruals and deferred income	482,239	401,769
	7,729,969	4,796,999

Details of bank and other loans including securities are included in note 19.

18.	Creditors: Amounts falling due after more than one year
		2025	2024
		£	£

Bank loans	1,034,987	984,155
Net obligations under finance leases and hire purchase contracts	1,219,747	1,415,600
Accruals and deferred income	352,918	442,983
	2,607,652	2,842,738

Details of bank loans including securities are included in note 19.

Page 25

KAMES FISH FARMING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

Amounts falling due within one year	292,075	258,517
Amounts falling due 1-2 years	255,535	262,048
Amounts falling due 2-5 years	348,390	407,737
Amounts falling due after more than 5 years	431,062	314,370
	1,327,062	1,242,672

The bank loans are secured by standard securities over property and certain other fixed assets together with a floating charge over the whole assets of the company.

Within one year	210,620	204,510
Between 1-5 years	821,047	826,700
Over 5 years	398,700	588,900
	1,430,367	1,620,110

The hire purchase and finance leases are secured over the assets to which they relate.

Page 26

KAMES FISH FARMING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

21.	Deferred taxation

		2025
		£

	At beginning of year	(667,821)
	Charged to profit or loss	57,683
	At end of year	(610,138)

The provision for deferred taxation is made up as follows:
	2025	2024
	£	£

Accelerated capital allowances	917,236	1,001,768
Capital gains	245,030	245,031
Losses and other deductions	(552,128)	(578,978)
	610,138	667,821

22.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

24,884 (2024 - 24,884) Ordinary shares of £1.00 each	24,884	24,884

23.

Reserves

Share premium account

This reserve records the amount above the nominal value received for shares sold, less transaction costs.

Capital redemption reserve

This reserve is a capital redemption reserve created when the company purchased some of its own shares.

Profit and loss account

The profit and loss account represents the accumulated profits and losses of the company less distributions made to shareholders.

Page 27

KAMES FISH FARMING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2025

24.	Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in independently administered funds. The pension cost charge represents contributions payable by the company to the funds and amounted to £49,832 (2024 - £47,051). Contributions totalling £4,413 (2024 - £Nil) were payable to the funds at the Statement of Financial Position date and are included in accruals.

Not later than 1 year	145,500	67,500
Later than 1 year and not later than 5 years	308,500	73,000
Later than 5 years	243,000	21,000
	697,000	161,500

26.

Related party transactions

During the year £16,500 (2024 - £18,420) of goods or services were purchased from other related parties and £Nil (2024 - £282) goods sold to other related parties. The outstanding balances with the other related parties as at the statement of financial position date was £Nil (2024 - £Nil).

The senior leadership team are considered to be key management personnel of the Company. No other employees are considered to have authority or responsibility for planning, directing and controlling the activities of the Group. Total remuneration including social security and directors fees is £190,892 (2024 - £188,476).

27.	Controlling party

In the opinion of the directors there is no controlling party.

Page 28