Company registration number SC432208 (Scotland)
SCOTBEEF INVERURIE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 FEBRUARY 2024
SCOTBEEF INVERURIE LIMITED
COMPANY INFORMATION
Directors
J R Galloway
S C Dowling
Company number
SC432208
Registered office
Munnieston
Thornhill
Stirling
FK8 3QG
Auditor
Azets Audit Services
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
SCOTBEEF INVERURIE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 24
SCOTBEEF INVERURIE LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 25 FEBRUARY 2024
- 1 -

The directors present the strategic report for the Period ended 25 February 2024.

Principal activities

The principal activity of the Company is the production and sale of beef and lamb products predominantly for the UK market.

Review of the business

Turnover for the year was £62,500,000 (2023 - £79,601,000).

The Company continued to supply product into its historic high street butcher and food service customer base, however product previously supplied into the grocery retail sector was significantly reduced following the sale of Group activities connected to that channel. Additional volume was supplied into export markets, but this did not offset the volumes lost. In addition to above inflation increases in livestock cost, the reduced volumes processed led to significant increases in cost of production.

The main financial key performance indicators include operating profit, sales per employee and the level of working capital.

| 2024 | 2023 | Movement
Operating (loss) / profit | (£2,997,000) | £354,000 | (£2,643,000)
Sales per employee | £677,000 | £514,000 | £163,000
Net Current Assets | £693,000 | £4,076,000 | (£3,383,000)

Principal risks and uncertainties

The principal risks and uncertainties affecting the business include the following:

- Competition from alternative protein supply: market conditions for proteins can vary due to competitive forces such as sudden changes in market prices and supply conditions which can be driven by political and economic circumstances outside of the company’s control. To mitigate these risks, the company maintains close relationships with its customers and looks to develop alternative routes to market for its products on an ongoing basis.

- Employees: Skilled labour shortage has placed additional pressure on the existing workforce and on industry pay rates, the Company is working closely with local training bodies and labour providers to ensure adequate labour provision during seasonally busy periods.

- Livestock availability and pricing: to attempt to mitigate this the company has continued to maintain historically strong relationships with its farmer producers and with ANM Group, Scotland’s largest farmer consortium. However Scotland’s livestock sector is experiencing long term contraction, which in turn is driving up input prices that prove difficult to recover from customers.

- The UK food sector remains very competitive and price sensitive. The company works closely with its existing customers to offer a range of quality products which represent value for money, whilst looking to utilise established JW Galloway Group relationships in order to build on and develop routes to market.

Future outlook

Livestock cost is by far the largest business cost and upward price increases show no sign of retreat, with Scottish livestock numbers forecast to continue to decline as producers deal with very challenging economic conditions and central Government prioritise green policies over food security.

Following the continuation of difficult trading conditions, leading to further significant losses requiring Group financial support, and the negative outlook for the most significant input cost, the Board took the very difficult decision to cease production in June 2025, with operations closing in September 2025.The Directors would like to thank customers and staff for their support and input over the past fourteen years.

SCOTBEEF INVERURIE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 25 FEBRUARY 2024
- 2 -

On behalf of the board

J R Galloway
Director
3 February 2026
SCOTBEEF INVERURIE LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 25 FEBRUARY 2024
- 3 -

The directors present their annual report and financial statements for the Period ended 25 February 2024.

Results and dividends

The results for the Period are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the Period and up to the date of signature of the financial statements were as follows:

J R Galloway
S C Dowling
A Kirkbright
(Resigned 1 February 2025)
G R W Rogerson
(Resigned 20 March 2023)

Under the Articles of Association of the Company, none of the directors are required to retire by rotation.

Political donations

The company made no political or charitable donations or incurred any political expenditure during the year.

Financial instruments

For the year under review, the company participated in a centralised treasury arrangement with other companies with the J.W. Galloway group and the funds are managed on a group wide basis. Cash is predominately held by fellow subsidiary, Scotbeef Limited.

Post reporting date events

Following the continuation of difficult trading conditions, leading to further significant losses requiring Group financial support, and the negative outlook for the most significant input cost, the Board took the very difficult decision to cease production in June 2025, with operations closing in September 2025.

Going concern

As a result of the above, all trading activities of the company ceased subsequent to the year end and the directors are in the process of winding up the company, settling its outstanding obligations and distributing any remaining assets. As such, the financial statements have been prepared on a basis other than that of going concern. No material adjustments arose as a result of ceasing to apply the going concern basis.

Auditor

Azets Audit Services were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

SCOTBEEF INVERURIE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 25 FEBRUARY 2024
- 4 -
On behalf of the board
J R Galloway
Director
3 February 2026
SCOTBEEF INVERURIE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 25 FEBRUARY 2024
- 5 -

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- 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 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.

SCOTBEEF INVERURIE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SCOTBEEF INVERURIE LIMITED
- 6 -
Opinion

We have audited the financial statements of Scotbeef Inverurie Limited (the 'company') for the Period ended 25 February 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 25 February 2024 and of its loss for the Period 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 UK, including the FRC’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.

Emphasis of matter - Financial statements prepared on a basis other than going concern

We draw your attention to note 1.2 of the financial statements, which states that the financial statements have been prepared on a basis other than going concern. Our opinion is not modified in respect of this matter.

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.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' r eport for the financial Period 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.

SCOTBEEF INVERURIE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCOTBEEF INVERURIE LIMITED
- 7 -
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 identifie d material misstatements in the strategic report or the directors' r eport.

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' r esponsibilities s tatement, 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.

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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

SCOTBEEF INVERURIE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCOTBEEF INVERURIE LIMITED
- 8 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Alan Brown
Senior Statutory Auditor
For and on behalf of Azets Audit Services
4 February 2026
Chartered Accountants
Statutory Auditor
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
SCOTBEEF INVERURIE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 25 FEBRUARY 2024
- 9 -
52 week period
52 week period
ended
ended
25 February
26 February
2024
2023
Notes
£000's
£000's
Turnover
3
62,500
79,601
Cost of sales
(63,910)
(77,733)
Gross (loss)/profit
(1,410)
1,868
Distribution costs
(1,158)
(1,042)
Administrative expenses
(429)
(489)
Other operating income
-
0
17
Operating (loss)/profit
4
(2,997)
354
Interest receivable and similar income
6
3
17
(Loss)/profit before taxation
(2,994)
371
Tax on (loss)/profit
7
24
(55)
(Loss)/profit for the financial Period
(2,970)
316
SCOTBEEF INVERURIE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 25 FEBRUARY 2024
- 10 -
52 week period
52 week period
ended
ended
25 February
26 February
2024
2023
£000's
£000's
(Loss)/profit for the Period
(2,970)
316
Other comprehensive income
-
-
Total comprehensive income for the Period
(2,970)
316
SCOTBEEF INVERURIE LIMITED
BALANCE SHEET
AS AT 25 FEBRUARY 2024
25 February 2024
- 11 -
25 February 2024
26 February 2023
Notes
£000's
£000's
£000's
£000's
Fixed assets
Tangible assets
8
2,838
2,843
Current assets
Stocks
9
3,838
1,925
Debtors
10
5,519
4,790
Cash at bank and in hand
1,083
1,990
10,440
8,705
Creditors: amounts falling due within one year
11
(9,747)
(4,629)
Net current assets
693
4,076
Total assets less current liabilities
3,531
6,919
Creditors: amounts falling due after more than one year
12
(1,960)
(1,960)
Provisions for liabilities
Deferred tax liability
13
-
0
5
-
(5)
Net assets
1,571
4,954
Capital and reserves
Called up share capital
16
1,188
1,601
Capital redemption reserve
413
-
0
Profit and loss reserves
(30)
3,353
Total equity
1,571
4,954
The financial statements were approved by the board of directors and authorised for issue on 3 February 2026 and are signed on its behalf by:
J R Galloway
Director
Company Registration No. SC432208
SCOTBEEF INVERURIE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 25 FEBRUARY 2024
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£000's
£000's
£000's
£000's
Balance at 28 February 2022
1,601
-
0
3,037
4,638
Period ended 26 February 2023:
Profit and total comprehensive income for the period
-
-
316
316
Balance at 26 February 2023
1,601
-
0
3,353
4,954
Period ended 25 February 2024:
Loss and total comprehensive income for the period
-
-
(2,970)
(2,970)
Redemption of shares
16
(413)
413
(413)
(413)
Balance at 25 February 2024
1,188
413
(30)
1,571
SCOTBEEF INVERURIE LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 25 FEBRUARY 2024
- 13 -
2024
2023
Notes
£000's
£000's
£000's
£000's
Cash flows from operating activities
Cash (absorbed by)/generated from operations
22
(415)
391
Income taxes refunded/(paid)
1
(93)
Net cash (outflow)/inflow from operating activities
(414)
298
Investing activities
Purchase of tangible fixed assets
(83)
(316)
Proceeds from disposal of tangible fixed assets
-
0
2
Interest received
3
17
Net cash used in investing activities
(80)
(297)
Financing activities
Redemption of shares
(413)
-
0
Repayment of borrowings
-
0
(339)
Net cash used in financing activities
(413)
(339)
Net decrease in cash and cash equivalents
(907)
(338)
Cash and cash equivalents at beginning of Period
1,990
2,328
Cash and cash equivalents at end of Period
1,083
1,990
SCOTBEEF INVERURIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 FEBRUARY 2024
- 14 -
1
Accounting policies
Company information

Scotbeef Inverurie Limited is a private company limited by shares incorporated in Scotland. The registered office is Munnieston, Thornhill, Stirling, FK8 3QG.

1.1
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.

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 £000's.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

In September 2025, the company ceased all operations and the directors are in the process of winding up the company. The directors intend to settle its outstanding obligations and distribute any remaining assets. true As such, the financial statements have been prepared on a basis other than that of going concern. No material adjustments arose as a result of ceasing to apply the going concern basis.

1.3
Turnover

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.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

1.4
Tangible fixed assets

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:

Freehold land
nil
Plant and equipment
10-50%
Motor vehicles
17-50%

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 profit or loss.

SCOTBEEF INVERURIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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 profit or loss, 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 profit or loss, 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.

1.6
Stocks

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.

1.7
Cash and cash equivalents

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.

1.8
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.

SCOTBEEF INVERURIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 FEBRUARY 2024
1
Accounting policies
(Continued)
- 16 -
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 the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

SCOTBEEF INVERURIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -
1.9
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.

1.10
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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.

1.11
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.

1.12
Retirement benefits

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

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease s asset are consumed.

SCOTBEEF INVERURIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 FEBRUARY 2024
1
Accounting policies
(Continued)
- 18 -
1.14
Government grants

Government grants are recognised at the fair value of the asset receive d or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

2
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.

As at the year end in the opinion of the directors that there are no estimates or judgements made that could have a material impact on the financial statements.

3
Turnover and other revenue
2024
2023
£000's
£000's
Turnover analysed by class of business
Sale of beef and lamb products
62,500
79,601
2024
2023
£000's
£000's
Turnover analysed by geographical market
United Kingdom
50,760
75,261
Other European countries
11,740
4,340
62,500
79,601
2024
2023
£000's
£000's
Other revenue
Interest income
3
17
SCOTBEEF INVERURIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 FEBRUARY 2024
- 19 -
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the period is stated after charging:
£000's
£000's
Fees payable to the company's auditor for the audit of the company's financial statements
29
36
Depreciation of owned tangible fixed assets
88
75
Operating lease charges
211
170
5
Employees

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

2024
2023
Number
Number
Slaughter, manufacturing and processing of meat
80
140
Administrative
16
15
Total
96
155

Their aggregate remuneration comprised:

2024
2023
£000's
£000's
Wages and salaries
2,901
4,613
Social security costs
279
458
Pension costs
58
94
3,238
5,165
6
Interest receivable and similar income
2024
2023
£000's
£000's
Interest income
Interest on bank deposits
3
17
2024
2023
Investment income includes the following:
£000's
£000's
Interest on financial assets not measured at fair value through profit or loss
3
17
SCOTBEEF INVERURIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 FEBRUARY 2024
- 20 -
7
Taxation
2024
2023
£000's
£000's
Current tax
UK corporation tax on profits for the current period
-
0
18
Adjustments in respect of prior periods
(18)
(6)
Total current tax
(18)
12
Deferred tax
Origination and reversal of timing differences
(117)
41
Adjustment in respect of prior periods
111
2
Total deferred tax
(6)
43
Total tax (credit)/charge
(24)
55

The actual (credit)/charge for the Period can be reconciled to the expected (credit)/charge for the Period based on the profit or loss and the standard rate of tax as follows:

2024
2023
£000's
£000's
(Loss)/profit before taxation
(2,994)
371
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 24.49% (2023: 19.00%)
(733)
70
Unutilised tax losses carried forward
618
-
0
Adjustments in respect of prior years
93
(4)
Other non-reversing timing differences
13
-
0
Remeasurement of deferred tax for changes in tax rates
(15)
-
0
Temporary timing differences
-
0
(11)
Taxation (credit)/charge for the period
(24)
55
SCOTBEEF INVERURIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 FEBRUARY 2024
- 21 -
8
Tangible fixed assets
Freehold land
Assets under construction
Plant and equipment
Motor vehicles
Total
£000's
£000's
£000's
£000's
£000's
Cost
At 27 February 2023
1,500
140
1,799
410
3,849
Additions
-
0
19
64
-
0
83
At 25 February 2024
1,500
159
1,863
410
3,932
Depreciation and impairment
At 27 February 2023
-
0
-
0
651
355
1,006
Depreciation charged in the Period
-
0
-
0
74
14
88
At 25 February 2024
-
0
-
0
725
369
1,094
Carrying amount
At 25 February 2024
1,500
159
1,138
41
2,838
At 26 February 2023
1,500
140
1,148
55
2,843
9
Stocks
2024
2023
£000's
£000's
Raw materials and consumables
3,838
1,925
10
Debtors
2024
2023
Amounts falling due within one year:
£000's
£000's
Trade debtors
3,002
3,474
Amounts owed by group undertakings
2,421
1,155
Prepayments and accrued income
96
161
5,519
4,790
11
Creditors: amounts falling due within one year
2024
2023
£000's
£000's
Trade creditors
3,090
3,162
Amounts owed to group undertakings
5,191
339
Corporation tax
-
0
18
Other taxation and social security
100
83
Accruals and deferred income
1,366
1,027
9,747
4,629
SCOTBEEF INVERURIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 FEBRUARY 2024
- 22 -
12
Creditors: amounts falling due after more than one year
2024
2023
Notes
£000's
£000's
Government grants
14
1,960
1,960
13
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£000's
£000's
Accelerated capital allowances
-
5
2024
Movements in the Period:
£000's
Liability at 27 February 2023
5
Credit to profit or loss
(5)
Liability at 25 February 2024
-

At the period end, the company had an unrecognised deferred tax asset of £0.62m relating to tax losses carried forward. No asset has been recognised due to uncertainty over when sufficient profits would be available to offset the tax losses.

14
Government grants
2024
2023
£000's
£000's
Arising from government grants
1,960
1,960
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£000's
£000's
Charge to profit or loss in respect of defined contribution schemes
58
94

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.

SCOTBEEF INVERURIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 FEBRUARY 2024
- 23 -
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£000's
£000's
Issued and fully paid
Ordinary shares of £1 each
1,188,000
1,601,000
1,188
1,601
17
Financial commitments, guarantees and contingent liabilities

Within the scope of the bank borrowing arrangements, JW Galloway Limited, Scotbeef Limited, Scotbeef Inverurie Limited, and Vivers Scotlamb Limited have each guaranteed to the bank the others’ obligations. There was £nil outstanding on behalf of the other group companies at 25 February 2024 (2023 - £nil).

18
Operating lease commitments
Lessee

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

2024
2023
£000's
£000's
Within one year
211
62
Between two and five years
-
0
150
211
212
19
Events after the reporting date

Following the continuation of difficult trading conditions, leading to further significant losses requiring Group financial support, and the negative outlook for the most significant input cost, the Board took the very difficult decision to cease production in June 2025, with operations closing in September 2025.

20
Related party transactions

The company sold goods to group entities amounting to £26.8m and purchased goods amounting to £2.7m.

At the year end the company was owed £2.8m from group companies (2023 - £1.1m).

21
Ultimate controlling party

The ultimate parent undertaking of Scotbeef Inverurie Limited is JW Galloway Limited, which is incorporated in the United Kingdom, and registered in Scotland. The address of JW Galloway Limited is: Munnieston Cottage, Thornhill, Stirling, Scotland, FK8 3QG.

SCOTBEEF INVERURIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 FEBRUARY 2024
- 24 -
22
Cash (absorbed by)/generated from operations
2024
2023
£000's
£000's
(Loss)/profit for the Period after tax
(2,970)
316
Adjustments for:
Taxation (credited)/charged
(24)
55
Investment income
(3)
(17)
Depreciation and impairment of tangible fixed assets
88
75
Movements in working capital:
Increase in stocks
(1,913)
(146)
Increase in debtors
(729)
(929)
Increase in creditors
5,136
1,037
Cash (absorbed by)/generated from operations
(415)
391
23
Analysis of changes in net funds
27 February 2023
Cash flows
25 February 2024
£000's
£000's
£000's
Cash at bank and in hand
1,990
(907)
1,083
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