Argo's Bakery Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—7

1. General Information

Argo's Bakery Limited is a private company, limited by shares, incorporated in Scotland, registered number SC082881 . The registered office is Argo's Bakery, Cairston Road, Stromness, Orkney, KW16 3JS.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.3. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to the profit and loss account over its estimated economic life of .... years.

2.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold	2% on Cost
Plant & Machinery	25% o a Reducing Balance
Motor Vehicles	25% o a Reducing Balance
Fixtures & Fittings	10% on a Reducing Balance

2.5. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts 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 the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

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Argo's Bakery Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

2.6. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

2.7. Financial Instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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 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 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 re 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.

2.8. Taxation

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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.

...CONTINUED

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Argo's Bakery Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

2.8. Taxation - continued

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 59 (2024: 50)

4. Intangible Assets

	Goodwill
	£
Cost
As at 1 April 2024	127,000

As at 31 March 2025	127,000

Amortisation
As at 1 April 2024	127,000

As at 31 March 2025	127,000

Net Book Value
As at 31 March 2025	-

As at 1 April 2024	-

5. Tangible Assets

	Land & Property
	Freehold	Plant & Machinery	Motor Vehicles	Fixtures & Fittings	Total
	£	£	£	£	£
Cost
As at 1 April 2024	951,642	1,043,317	40,850	220,585	2,256,394
Additions	6,245	-	-	-	6,245

As at 31 March 2025	957,887	1,043,317	40,850	220,585	2,262,639

...CONTINUED

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Argo's Bakery Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

Depreciation
As at 1 April 2024	213,573	955,172	37,071	159,844	1,365,660
Provided during the period	18,973	22,707	293	6,075	48,048

As at 31 March 2025	232,546	977,879	37,364	165,919	1,413,708

Net Book Value
As at 31 March 2025	725,341	65,438	3,486	54,666	848,931

As at 1 April 2024	738,069	88,145	3,779	60,741	890,734

6. Investments

	Other
	£
Cost
As at 1 April 2024	10,000

As at 31 March 2025	10,000

Provision
As at 1 April 2024	-

As at 31 March 2025	-

Net Book Value
As at 31 March 2025	10,000

As at 1 April 2024	10,000

7. Stocks

	2025	2024
	£	£
Stock	197,563	147,408

8. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	138,890	225,415
Other debtors	5,479	10,609

	144,369	236,024

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Argo's Bakery Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

9. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	9,187	9,187
Trade creditors	166,723	246,150
Bank loans and overdrafts	107,766	88,192
Other creditors	120,699	101,519
Taxation and social security	31,092	23,106

	435,467	468,154

Included in Other Creditors is £76,572 (2024: £30,252) due to two of the directors.

10. Creditors: Amounts Falling Due After More Than One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	2,297	11,484
Bank loans	159,040	205,963

	161,337	217,447

11. Obligations Under Finance Leases and Hire Purchase

	2025	2024
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	9,187	9,187
Later than one year and not later than five years	2,297	11,484

	11,484	20,671

	11,484	20,671

12. Share Capital

	2025	2024
	£	£
Allotted, Called up and fully paid	63,000	63,000

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		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	5		848,931		890,734
Investments	6		10,000		10,000

			858,931		900,734
CURRENT ASSETS
Stocks	7	197,563		147,408
Debtors	8	144,369		236,024
Cash at bank and in hand		18,162		43,833

		360,094		427,265
Creditors: Amounts Falling Due Within One Year	9	(435,467 )		(468,154 )

NET CURRENT ASSETS (LIABILITIES)			(75,373 )		(40,889 )

TOTAL ASSETS LESS CURRENT LIABILITIES			783,558		859,845

Creditors: Amounts Falling Due After More Than One Year	10		(161,337 )		(217,447 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(71,898 )		(69,566 )

NET ASSETS			550,323		572,832

CAPITAL AND RESERVES
Called up share capital	12		63,000		63,000
Share premium account			40,000		40,000
Capital redemption reserve			78,000		78,000
Profit and Loss Account			369,323		391,832

SHAREHOLDERS' FUNDS			550,323		572,832