The Chairman presents his statement for the period.

Principal activities:

The principal activity of Scottish Craft Butchers during the year continued to be the provision of advice, support and training services to the meat trade.

Scottish Craft Butchers has no share capital and is a private company limited by guarantee with each member undertaking to subscribe, up to a limit of £1, such amounts as may be necessary to pay the debts and liabilities in the event of being wound up.

Results for the year:

The profit/(loss) for the year (after tax) amounted to (£29,472) (2024 - (£18,653)).

We have seen another year of challenges and change for our organisation and our members. The meat trade is still under what feels like continual attack from veganism, calls to reduce red meat consumption to save the planet and expectations to become more eco-friendly. Add to that rising operational costs, and increases affecting the whole supply chain that has led to dented confidence for businesses and consumers. We also must consider the continued weakening of “high street” shopping locations and extortionate energy costs.

Members have been informed of changes to legislation and guidance issued, they have then had to act accordingly.

Members have adapted as best they can, to all challenges that present themselves. We are an industry with a strong resilience.

Another year where butchers need the regular flow of advice, support, and training services that the SCB continues to provide.

Circumstances have changed continually over the decades but with the guidance of its President and his Executive Committee, SCB continues to provide a meaningful service to its members through the Members Services and Training Services sides of the business.

Most meetings of the Executive Committee have been held via video conference, which is a new normal, we are now utilising a hybrid system of meetings due to the investment made in our meeting room at the office.

New members of the committee have joined over this period, finding the facility to join the meeting from home preferential to having to travel.

Member Services promotes the consumer facing image of SCB and Training Services operate under the name Craft Skills Scotland (CSS). Both sides aim to provide quality support to the meat industry and the craft butcher sector. They also perform the role of representing the sector and responding to consultations and consumer questions /​ requests. Members’ subscriptions only fund SCB. CSS is a wholly owned standalone subsidiary whose objective is to promote and sustain the craft skills of the industry.

SCB is delighted to provide administrative support to the Guild of Q Butchers. This service to over 70 butchers GB wide operates out of the Perth office, and this provides a valuable contribution to overheads.

SCB members continue to have issues over inconsistency of food safety regulation and varying interpretations on guidance, but the SCB management team’s positive working relationship with Food Standards Scotland continues to provide an important and useful contact with the enforcement community.

We are constantly advising members to have EHO’s recommendations formally documented so that all parties can try to achieve some semblance of uniformity of approach.

SCB has assisted where the need for allergen advice has emerged with renewed focus. Labelling guidance has been a regular request this year. SCB were involved in the development of the “food standards guide: butchers” document issued by FSS. .

Representation continues to the Scottish Government’s Animal Health and Welfare Stakeholder Group and SCB is proud of its working partnerships with the likes of Quality Meat Scotland, the National Sheep Association, the Scottish Association of Meat Wholesalers, the Institute of Auctioneers and Appraisers and the National Farmers Union Scotland.

Membership has held up well given the aforesaid.  Some new shops have opened, there continues to be a few retirals, but focus is still required on assisting with succession planning, business takeover and introducing new young owners. In many cases butcher’s shops are very good and viable businesses and it is a matter of identifying potential new owners who will undoubtedly inherit successful businesses with good returns.

The number of shops in Membership is 345:  264 businesses (267 in 2024) plus 81 branches (86 in 2024).

Competition in the sector continues to be challenging with discounter supermarkets making a bigger impact not only to independents, but other established multiples. Retaining customers in the face of new economic pressures is the new challenge. Energy costs are an ongoing issue for businesses.

It has been increasingly important for SCB to provide members with guidance and advice to enable business to continue to trade profitably. Members have been kept up to speed with all the developments in the meat industry, regional meetings are a critical interface to exchange views and disseminate information. We were particularly proud to be involved with the making of the BBC 1 documentary, Our Lives-Haggis Hunters. This program was broadcast on prime time tv with an audience of 1.3 million viewers, not including those who watched it on the BBC Iplayer. It was a very positive reflection of our industry. Product evaluation events have kept the independent butcher in the news highlighting quality meat products. We feel it is vitally important that all channels should be used to promote business and attract new and younger customers. It is also essential that we encourage new talent into the sector as the ageing workforce will come up for retirement.

A close relationship with Quality Meat Scotland has created heightened support and a better understanding of the Craft butcher sector and its importance to the meat industry. We are grateful to QMS and the Scotch Butchers Club for the sponsorship of the new Craft Butcher Diploma of Scotland which gives accreditation of the exceptional skills of individuals in the industry.

Both sides of the organisation – SCB and CSS continue to be well used and appreciated by the membership.

Our training arm, Craft Skills Scotland (CSS), continues to contract SDS for funding and CSS successfully tendered for Modern Apprenticeship places. 189 trainees are currently on funded training, 59 trainees achieved Modern Apprenticeships in the last contract year. 122 trainees came on to training in the last contract year while 77 of the allocated 171 places in the current contract have been taken up. 8 Craft Butcher Diplomas were presented during the year.

Changes to NI, increased wage costs and uncertainty in the industry last year affected performance this year. The ability to maintain income streams was challenging especially when businesses were unsure about employing apprentices. The traditional period for sign-ups (January through March) saw numbers well down on previous years. This has now shown signs of recovery.

We continue to be a training provider for the Brewing, Modern Apprentice, qualification. We are working with several breweries across the country, some in rural locations which entail higher costs for delivery.

SCB continues to be an awarding body in partnership with Scottish Qualifications Authority (SQA). Distance Learning Foundation Hygiene and Foundation HACCP are delivered to our trainees.

Two Meat Managers HACCP and Hygiene Course was held during the year with the 11 candidates attending achieving a high standard of certification.

Regional meetings were held in October 2024 in – Stepps, Carfraemill, Perth, and Elgin. All have been very well attended and well received.

The trade fair was held in May 2025 at Perth, with record numbers attending. Many businesses who exhibited have already expressed their desire to attend the next fair in May 2027.

The newsletter has been published timeously on the first day of each month.

We have 35 Corporate members, (37 in 2024). They have been great supporters to SCB and hopefully they have gained sufficient business in return to justify their continued support. Many have made good use of free inserts or adverts in the Newsletters and the platform available through regional meetings.

We held the World Haggis Championship in 2025 with the judging taking place at the trade fair along with the Scottish Pork Sausage Championship.

The winner of the World Haggis Championship 2025, McCaskies in Wemyss Bay, saw sales increase especially after the “Our Lives-Haggis Hunters” TV broadcast.

The Scottish Pork Sausages Championship was won by Tom Courts for the 3rd time. Something that made Tom and his staff very proud. The Lorne sausage & make it with Pork evaluations were held in September 2024 with the results announced at the regional meetings in October 2024. The Make it with Haggis and Speciality Sausage product evaluations were held in April 2025 with the results announced at the trade fair in May 2025.

Porktober” promotional activity continues to gather interest each year with more organisations joining in. We won marketing initiative of the year at the National Pig Awards in November 2024.

We will hold evaluations for Black Pudding, Beef Link Sausage, Best Steak and Speciality Burger in 2026.

Increased resource to take professional photographs and generate professional press releases has generated good PR for independent butchers from these evaluations and competitions.

Our Employment Law advisers continue to enhance the services offered by SCB. A Health and Safety adviser is also retained to provide members with advice.

For the One Hundred and Sixth Annual General Meeting, SCB went to Bellshill. It was held on 17th November 2024 in the Alona Hotel where Laura Black was elected as President.  The very well attended meeting was fortunate to attract top speakers – Neil Wilson Institute of Auctioneers & Appraisers Scotland, Scott Walker Scottish Association of Meat Wholesalers and Jock Gibson from Macbeths in Forres all of whom had fantastic stories to tell that proved inspirational to all who attended.

The SCB Training Awards were again held in conjunction with the AGM. Generously supported by QMS, The Incorporation of Fleshers in Glasgow, the Dundee Fleshers and the Lanarkshire Butchers Association. This complemented what was a very positive day and again there was a great show of the emerging talent in our industry.

SCB remains highly accessible to members and members’ views are constantly canvassed when either telephoning, attending meetings or visited by any of the CSS assessors.

Finally, I would like to record the valuable contribution made by all members of staff. Bruce McCall continues to be the first point of contact for members and Claire Simpson who is responsible for all things training. Thanks to Joyce Miller, Gordon Wallace, Willie Kemp, Sarah Frew and Robbie Hughan, they have all been an invaluable source of support to me over the last 12 months.

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

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

Scottish Craft Butchers is a private company limited by guarantee incorporated in Scotland. The registered office is 8 /10 Needless Road, Perth, PH2 0JW.

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, investments and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to surplus or deficit.

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 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.

Investments in listed company shares are remeasured to market value each balance sheet date. Gains and losses on remeasurement are recognised in the profit & loss for the period.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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.

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, 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.

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, 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.

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.

Operating Leases

Rentals paid under operating leases are charged to profit & Loss on a straight line basis over the lease term.

Government grants

Grants are accounted under accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the profit & loss at the same rate as depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Grants of revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

Pensions

The company operate a defined contribution scheme for the benefit of its employees. Contributions payable are recognised in the profit and loss account when due.

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.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Tangible fixed assets are depreciated over a period to reflect their estimated useful lives. The applicability of the assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence.

Fixed assets are also assessed as to whether there are indictors of impairment. This assessment involves consideration of the economic viability of the purpose for which the asset is used.

An apportionment of shared expenses are allocated to members services. The application is consistent with prior years and reasonable when considered in line with profit levels.

A percentage of shared overheads are allocated to other organisations occupying the building, based on the space utilised. Staff time is also allocated out for services performed; this is estimated by the Chief Exec. Estimates were deemed to be reasonable and consistent.

The property included in land and buildings is held at fair value.

The property at 8/10 Needless Road is valued at £220,000. The last formal valuation was performed in 2017, the valuation remains the same based on the directors estimates of value.

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

Included in land and buildings is the property at 8/10 Needlless Road, Perth.

The fair value of the property has been arrived at on the basis of a valuation carried out in October 2017 by Graham and Sibbald Charted Surveyors, who are not connected with the company. The valuation of the property was £220,000, which the directors believe to still be a fair valuation.

Listed investments have been revalued at market value. This is based on an independent valuation which is carried out by Redmayne Bentley an Investment Management Company who also provide stockbroking services. The original cost of the listed investments is £61,208 (2024 - £61,251)

There has been no recent valuation of the unlisted investments including the president's chain and trophies. The wholly owned subsidiary Scottish Federation of Meat Traders Association were dormant throughout the financial year.

Summary of investments

Investment risks

FRS 102 requires the disclosure of information in relation to certain investment risks. Theserisks are set out by FRS 102 as follows:

Credit risk: this is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

Market risk: this comprises currency risk, interest rate risk and other price risk.

- Currency risk: this is the risk that the fair value or future cash flows of a financial asset will fluctuate because of changes in foreign exchange rates.

- Interest rate risk: this is the risk that the fair value or future cash flows of a financial asset will fluctuate because of changes in market interest rates.

Other price risk: this is the risk that the fair value or future cash flows of a financial asset will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.

The Fund has exposure to these risks because of the investments it makes to implement its investment strategy. The directors manage investment risks, including credit risk and market risk, within agreed risk limits which are set taking into account the Fund’s strategic investment objectives. These investment objectives and risk limits are implemented through the investment manager agreements in place with the Fund’s investment managers and monitored by the directors by regular reviews of the investment portfolios.

Credit risk

The Fund invests in pooled investment vehicles and is therefore directly exposed to credit risk in relation to the instruments it holds in the pooled investment vehicles and is indirectly exposed to credit risks arising on the financial instruments held by the pooled investment vehicles.

Analysis of direct credit risk

Direct credit risk arising from pooled investment vehicles is mitigated by the underlying assets of the pooled arrangements being ring-fenced from the pooled manager, the regulatory environments in which the pooled managers operate and diversification of investments amongst a number of pooled arrangements. The directors carry out due diligence checks on the appointment of new pooled investment managers and on an ongoing basis monitor any changes to the regulatory and operating environment of the pooled manager.

Pooled investment arrangements used by the Fund comprise authorised unit trusts.

Indirect credit risk arises in relation to underlying investments held in the bond pooled investment vehicles. This risk is mitigated by only investing in pooled funds which invest in at least investment grade credit rated securities.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The pension cost charge represents contributions payable by the Company to the fund and amounted to £5,761 (2024 - £6,858). Contributions totalling £615 (2024 - £2,230) were payable to the fund at the balance sheet date and are included within creditors.

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 August 2025 and of its deficit 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.

The Company received grant funding from Skills Development Scotland. This grant may be repayable should the Company fail to continue to comply with the grant conditions. The grants are audited by Skills Development Scotland and comply with all conditions set.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows: