Company Registration No. SC179395 (Scotland)
Raehills Farms Limited
Unaudited financial statements
for the year ended 31 March 2025
Pages for filing with the registrar
Raehills Farms Limited
Company information
Directors
Lord Johnstone
The Rt Hon the Earl of Annandale and Hartfell
Sarah Sherlock
Secretary
The Rt Hon the Earl of Annandale and Hartfell
Company number
SC179395
Registered office
Annandale Estate Office
St Ann's
Lockerbie
Dumfriesshire
DG11 1HQ
Accountants
Saffery LLP
Level 4, 9 Haymarket Square
Edinburgh
EH3 8RY
Raehills Farms Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
Raehills Farms Limited
Balance sheet
As at 31 March 2025
31 March 2025
1
2025
2024
Notes
£
£
£
£
Fixed assets
Goodwill
4
-
0
28,215
Investment properties
5
1,520,313
1,520,313
Investments
6
8,420,011
8,420,011
9,940,324
9,968,539
Current assets
Debtors
7
140,706
201,346
Cash at bank and in hand
132,855
42,837
273,561
244,183
Creditors: amounts falling due within one year
8
(276,898)
(274,383)
Net current liabilities
(3,337)
(30,200)
Total assets less current liabilities
9,936,987
9,938,339
Creditors: amounts falling due after more than one year
Loans and overdrafts
9
463,967
581,200
Government grants
10
349,755
393,474
(813,722)
(974,674)
Provisions for liabilities
(82,527)
(87,819)
Net assets
9,040,738
8,875,846
Capital and reserves
Called up share capital
11
1,810,103
1,810,103
Revaluation reserve
12
3,817,406
3,817,406
Profit and loss reserves
3,413,229
3,248,337
Total equity
9,040,738
8,875,846
Raehills Farms Limited
Balance sheet (continued)
As at 31 March 2025
31 March 2025
2

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 March 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

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.

T he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 2 December 2025 and are signed on its behalf by:
Lord Johnstone
Director
Company Registration No. SC179395
Raehills Farms Limited
Balance sheet (continued)
As at 31 March 2025
31 March 2025
3
1
Critical accounting 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.

2
Accounting policies
Company information

Raehills Farms Limited is a private company limited by shares incorporated in Scotland. The registered office is Annandale Estate Office, St Ann's, Lockerbie, Dumfriesshire, DG11 1HQ.

2.1
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 a mounts 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.

2.2
Intangible fixed assets - goodwill

Goodwill arising on the transfer of the assets and liabilities of Raehills Renewables Limited represents the excess of the fair value of the consideration over the fair value of the identifiable assets and liabilities acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Raehills Farms Limited
Notes to the financial statements
For the year ended 31 March 2025
2
Accounting policies (continued)
4
2.3
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value a t the reporting end date. Changes in fair value are recognised in profit or loss.

2.4
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

2.5
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.

Basic financial assets

Basic financial assets, which include debtors, 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 paymen ts 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. A m ounts 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.

2.6
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Raehills Farms Limited
Notes to the financial statements (continued)
For the year ended 31 March 2025
2
Accounting policies (continued)
5

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

2.7
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

2.8
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2.9
Retirement benefits

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

2.10
Government grants
Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.
Raehills Farms Limited
Notes to the financial statements (continued)
For the year ended 31 March 2025
6
3
Employees

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

2025
2024
Number
Number
Total
1
1
4
Intangible fixed assets
Goodwill
£
Cost or valuation
At 1 April 2024 and 31 March 2025
141,748
Amortisation and impairment
At 1 April 2024
113,533
Amortisation charged for the year
28,215
At 31 March 2025
141,748
Carrying amount
At 31 March 2025
-
0
At 31 March 2024
28,215

The goodwill was valued at initial cost on the transfer in or assets and liabilities from Raehills Renewables Limited. The goodwill has a useful life of 5 years and will be amortised over this time.

5
Investment property
2025
£
Fair value
At 1 April 2024 and 31 March 2025
1,520,313

Investment property comprises estate buildings, residential properties, rural property and farms. During the year some of the assets ceased to be used for investment purposes and were transferred to Annandale and Lochwood Estates LLP in December 2020 for use within the farming trade of the partnership. These assets are now shown within the fixed asset investments. The fair value of the investment property was then reviewed in February 2021 and a valuation was carried out by Galbraith, 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. The directors believe that this valuation still represents the fair value of the investment property as at 31 March 2025.

Raehills Farms Limited
Notes to the financial statements (continued)
For the year ended 31 March 2025
7
6
Fixed asset investments
2025
2024
£
£
Investments
8,420,011
8,420,011
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 April 2024 and 31 March 2025
8,420,011
Carrying amount
At 31 March 2025
8,420,011
At 31 March 2024
8,420,011
7
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
-
0
88,907
Other debtors
140,706
112,439
140,706
201,346
8
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
639
672
Corporation tax
40,225
12,115
Other taxation and social security
16,717
16,560
Other creditors
219,317
245,036
276,898
274,383
9
Loans and overdrafts
2025
2024
£
£
Loans and overdrafts
463,967
581,200

On 24 March 2016 the company granted a standard security in favour of Minnygap Energy Limited, secured over all the lease of subjects at Minnygap, Dumfries.

Raehills Farms Limited
Notes to the financial statements (continued)
For the year ended 31 March 2025
9
Loans and overdrafts (continued)
8
10
Government grants
2025
2024
£
£
Balance at 1 April 2024
393,474
437,193
Amortisation in the year
(43,719)
(43,719)
At 31 March 2025
349,755
393,474
11
Called up share capital
2025
2024
£
£
Ordinary share capital
Issued and fully paid
1,810,103 Ordinary shares of £1 each
1,810,103
1,810,103
12
Revaluation reserve
2025
2024
£
£
At the beginning and end of the year
3,817,406
3,817,406

Fair value movements on investment properties are accounted for through profit or loss. As these reserves are not distributable, a separate transfer has been made to the above revaluation reserve to separate these non-distributable reserves from the distributable reserves included in retained earnings.

Raehills Farms Limited
Notes to the financial statements (continued)
For the year ended 31 March 2025
9
13
Related party transactions
2025
2024
£
£
Transactions entered into with related parties can be summarised as follows:
Lochwood Estate:
Euro loan repaid by the company
(40,000)
-
Interest payable by the company
21,168
22,683
Annandale and Lochwood Estates LLP:
Interest charged on loan
12,354
73,230
LLP surplus allocated against loan
(110,755)
(95,277)
Loan repaid by the company
-
(165,000)
The balances due to/(from) related parties within one year at the year end were as follows:
Raehills Trust
175,912
175,912
The balances due to/(from) related parties after more than one year at the year end were as follows:
Lochwood Estate
269,922
288,754
Annandale and Lochwood Estates LLP
194,045
292,446
Lochwood Estates is a business which is owned by Lord David Johnstone. The interest paid relates to the Euro loan due in more than one year and is charged at 3.5% above Bank of England base rate.
Raehills Trust is a trust of which The Rt Hon the Earl of Annandale and Hartfell, a director of the company, is a trustee and Lord David Johnstone is a beneficiary. The balance is an accrued interest amount on which no further interest is charged.
Annandale and Lochwood Estates LLP is an LLP of which directors The Rt Hon the Earl of Annandale and Hartfell and Lord David Johnstone are designated members of.
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