The directors present their annual report and financial statements for the year ended 31 October 2025.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the society's governing document, the Companies Act 2006 the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)".
The company was formed to take over the activities of Kintyre Agricultural Society ('the Society') as from 1 November 2002. The main purpose of the company is to promote and advance agriculture, agricultural science and associated trades through regular meetings and social activities. The company actively encourages young people to train in stockmanship and other farming skills through having specific classes in its shows for youngsters, promoting the Royal Highland Education Trust in the local area through the schools, and offering bursaries to those who wish to study in some aspect of farming.
The Company's main trading asset, being the land and properties at Anderson Show Field are owned and run by Anderson Trading Company Ltd, a wholly owned subsidiary of Kintyre Agricultural Society ('the Company').
The directors have paid due regard to guidance issued by the Office of Scottish Charity Regulator (OSCR) in deciding what activities the society should undertake.
This year, the Company undertook four social events: a tup sale, a ploughing match, a harvest supper and the August show. The results of these activities are contained in the Financial Statements.
The Company had a surplus for the year of £4,485 (2024 - deficit of £32,532). This surplus has been added to the reserves and carried forward. The company holds 100% of the share capital in Anderston Trading Company Limited which has net assets of £138,283 (2024 - £141,442). The directors are satisfied that in the event of the land in Anderston Trading Company Limited being sold the amounts due from that company to Kintyre Agricultural Society would be fully recoverable.
It is the policy of the society that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The directors consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the society’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The directors have assessed the major risks to which the society is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The society is a company limited by guarantee not having a share capital. It is also a registered charity recognised by HM Revenue & Customs under the Scottish Charity Number SC000143.
The directors who served during the year and up to the date of signature of the financial statements were:
The Directors must be members of the Society and are appointed by the members at General Meeting. All such appointments are reviewed each year at the Annual General Meeting. Directors may resign at any time. If the number of Directors drops below 3, the remaining Directors have the right to fill, on a temporary basis, any vacancy that may arise during the year. The members additionally appoint at least 10 Area Representatives annually from their own number. Such Area Representatives will in normal course attend Directors Meetings and be involved in any decision making but are not Directors of the Company. To facilitate his role as Honorary Secretary & Treasurer, John Armour is currently a non-voting Director of the Company.
The liability of the directors on a wind up of the company is limited to £1 each.
The directors' report was approved by the Board of Directors.
I report on the financial statements of the society for the year ended 31 October 2025, which are set out on pages 4 to 11.
It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In the course of my examination, no matter has come to my attention
1. which gives me reasonable cause to believe that in any material respect the requirements:
to keep accounting records in accordance with Section 44(1)(a) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scotland) Regulations 2006
have not been met, or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Kintyre Agricultural Society is a private company limited by guarantee incorporated in Scotland. The registered office is Benrioch, Campbeltown, Argyll, PA28 6PF.
The financial statements have been prepared in accordance with the society's governing document, the Companies Act 2006 the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)". The society is a Public Benefit Entity as defined by FRS 102.
The society has taken advantage of the provisions in the SORP for charities not to prepare a statement of cash flows.
The financial statements are prepared in sterling, which is the functional currency of the society. 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 and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the directors have a reasonable expectation that the society has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the directors in furtherance of the charitable objectives.
Cash donations are recognised on receipt. Other donations are recognised once the society has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under gift aid is recognised at the time of the donation.
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure is incurred.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the society. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Cash and cash equivalents 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 society 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 society's balance sheet when the society 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.
Basic financial liabilities, including creditors and bank loans 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 operations 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.
Financial liabilities are derecognised when the society’s contractual obligations expire or are discharged or cancelled.
In the application of the society’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 independent examiners costs of £948 are included in the governance costs above.
Mr John Armour received an honorarium of £3,000 (2024 - £3,000) for acting as Secretary and Treasurer to the committee during the year. No other directors (or any persons connected with them) received any remuneration or benefits from the society during the year.
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The investment in the subsidiary company is the cost of 1 ordinary £1 share in Anderston Trading Company Ltd. This is the entire issued share capital and therefore the company, which is registered in Scotland and trades as a property rental company, is a wholly owned subsidiary of Kintyre Agricultural Society. During the year to 31 October 2025, Anderston Trading Company Ltd's deficit amounted to £3,159 (2024 - surplus £34,227) and its total net assets at 31 October 2025 amounted to £138,283 (2024 - net assets £141,442).
The listed investments relate to National Savings Bonds and 3.5% War Stock Certificates.
Included in Other Debtors is an amount of £3,576 (2024 - £0) due from Anderston Trading Company Ltd. A balance of £35,317 was written off in the previous period.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.