KENNETH MACKENZIE LIMITED


Directors	LOCKERBY, Alexander William John
	LOCKERBY, Janet
	LOCKERBY, Nichola
	MACLEOD, Donna Joan


Registered Address	Caberfeidh Road
	Stornoway
	Isle Of Lewis
	HS1 2SE


Registered Number	SC047484 (Scotland)

Notes to the Financial Statements
for the year ended 31 August 2025

1.	Accounting policies

	Statutory information
	The company is a private company limited by shares and registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

	Basis of preparation
	The financial statements have been prepared under the historical cost convention on a going concern basis unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

	Going concern
	The directors believe that the company has adequate resources to continue in operational existence for the foreseeable future. The company continues to have the support of the directors, shareholders and creditors and therefore continue to adopt the going concern basis of accounting in preparing the financial statements.

	Turnover policy
	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/or the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. 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 policy

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/or the rendering of services.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. 

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.

	Employee benefits
	The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligation. Contributions to defined contribution plans are expensed in the period to which they relate. Amounts not paid are shown in other creditors in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

Employee benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligation. 

Contributions to defined contribution plans are expensed in the period to which they relate.  Amounts not paid are shown in other creditors in the Statement of Financial Position.  The assets of the plan are held separately from the company in independently administered funds.

	Foreign currency translation
	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to the Income Statement

Foreign currency translation

Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to the Income Statement

	Current taxation
	Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

	Deferred tax
	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

Deferred tax

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. 

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Tangible fixed assets and depreciation
	Tangible fixed assets are stated at cost or valuation less depreciation. The assets residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement Depreciation is provided on all tangible fixed assets as follows: Land and buildings - 1% and 2% on cost Plant and machinery - 10% on cost Vehicles - 25% on cost Office equipment - 25% on cost

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost or valuation less depreciation. 

The assets residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement

Depreciation is provided on all tangible fixed assets as follows:
Land and buildings - 1% and 2% on cost
Plant and machinery - 10% on cost
Vehicles - 25% on cost
Office equipment - 25% on cost

	Investments
	Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value where the difference between cost and fair value is material. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the Income Statement.

Investments

Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value where the difference between cost and fair value is material. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the Income Statement.

	Stocks and work in progress
	Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete). At each date of Statement of Financial Position, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Income Statement. Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

Stocks and work in progress

Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete). 

At each date of Statement of Financial Position, stocks are assessed for impairment.  If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell.  The impairment loss is recognised immediately in the Income Statement.

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

	Trade and other debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Trade and other debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

	Trade and other creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

	Financial instruments
	The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

2.	Average number of employees


		2025		2024
	Average number of employees during the year	41		41

3.	Tangible fixed assets

	Land & buildings	Plant & machinery	Vehicles	Office Equipment	Total
	£	£	£	£	£
Cost or valuation
At 01 September 24	140,486	2,964,407	41,250	105,508	3,251,651
Additions	125,000	200,386	-	6,174	331,560
At 31 August 25	265,486	3,164,793	41,250	111,682	3,583,211
Depreciation and impairment
At 01 September 24	36,521	2,860,636	15,926	62,652	2,975,735
Charge for year	2,136	26,595	10,312	15,700	54,743
At 31 August 25	38,657	2,887,231	26,238	78,352	3,030,478
Net book value
At 31 August 25	226,829	277,562	15,012	33,330	552,733
At 31 August 24	103,965	103,771	25,324	42,856	275,916


	Included in freehold property is freehold land at valuation of £25,000 (2024 - £25,000), which has not been depreciated. The freehold property was revalued by the directors on the basis of an open market value for existing use on 30 June 1995. Cost or valuation at 31 August 2025 is as follows: At cost £51,767 Additions 31 August 2025 £125,000 At valuation 30 June 1995 £88,719 £265,486 If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows: 2025 2024 Cost £176,767 £51,767 Accumulated depreciation £29,152 £27,689 Net book value £147,615 £24,078

Included in freehold property is freehold land at valuation of £25,000 (2024 - £25,000), which has not been depreciated.

The freehold property was revalued by the directors on the basis of an open market value for existing use on 30 June 1995.

Cost or valuation at 31 August 2025 is as follows:
At cost                                              £51,767
Additions  31 August 2025                 £125,000
At valuation 30 June 1995                  £88,719
                                                      £265,486

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:
                                                    2025                           2024
Cost                                           £176,767                     £51,767
Accumulated depreciation            £29,152                     £27,689
Net book value                          £147,615                     £24,078

4.	Fixed asset investments

	Other investments¹	Total
	£	£
Cost or valuation
At 01 September 24	18,000	18,000
At 31 August 25	18,000	18,000
Net book value
At 31 August 25	18,000	18,000
At 31 August 24	18,000	18,000

	Notes
	¹Other investments other than loans

5.	Stocks

	2025	2024
	£	£
Raw materials and consumables	51,614	62,302
Work in progress	64,744	39,368
Finished goods	529,453	491,588
Total	645,811	593,258

6.	Debtors: amounts due within one year

	2025	2024
	£	£
Trade debtors / trade receivables	161,098	252,277
Prepayments and accrued income	40,361	89,625
Total	201,459	341,902

7.	Debtors: amounts due after one year

	2025	2024
	£	£
Other debtors	696,567	696,567
Total	696,567	696,567

8.	Creditors: amounts due within one year

	2025	2024
	£	£
Trade creditors / trade payables	137,832	175,926
Taxation and social security	104,778	217,306
Other creditors	17,025	72,692
Accrued liabilities and deferred income	22,851	5,000
Total	282,486	470,924

9.	Provisions for liabilities

	2025	2024
	£	£
Net deferred tax liability (asset)	47,000	30,000
Total	47,000	30,000

10.	Pension commitments
	The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company in an independently administered fund. At the balance sheet date, unpaid contributions of £5,995 (2024 - £Nil) were due to the fund. They are included in other creditors.

11.	Related party transactions
	Included within administration expenses is a management charge of £26,276 (2024 - £72,000) to Brook Taverner Limited, a company of which A P Booth is a director, in respect of recharged costs.

12.	Controlling party
	The company was a wholly owned subsidiary undertaking of Xangongo Limited throughout the current and previous year. Xangongo Limited was under the control of A W J Lockerby throughout the year. The financial statements of Xangongo Limited are available to the public and may be obtained from The Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ.

	Notes	2025		2024
		£	£	£	£
Fixed assets
Tangible assets	3		552,733		275,916
Investments	4		18,000		18,000
			570,733		293,916
Current assets
Stocks	5	645,811		593,258
Debtors	6,7	898,025		1,038,469
Cash at bank and on hand		1,326,537		1,807,172
		2,870,373		3,438,899
Creditors amounts falling due within one year	8	(282,486)		(470,924)
Net current assets (liabilities)			2,587,887		2,967,975
Total assets less current liabilities			3,158,620		3,261,891
Provisions for liabilities	9		(47,000)		(30,000)
Net assets			3,111,620		3,231,891
Capital and reserves
Called up share capital			100,000		100,000
Share premium			367,232		367,232
Revaluation reserve			70,933		71,606
Profit and loss account			2,573,455		2,693,053
Shareholders' funds			3,111,620		3,231,891