Orkney Transport

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—8

1. General Information

Orkney Transport is a private company, limited by shares, incorporated in Scotland, registered number SC787652 . The registered office is 9 Garson Place, Stromness, Scotland, KW16 3EE.

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.

The previous year financial statements were prepared for a 17 month period from incorporation, from 31st October 2023 to 31 March 2025, with trade commencing on 8 July 2024. This financial statement has been prepared for a 12 month period.

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 rendering of services.

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.

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 profit and loss account over its estimated economic life of 10 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	Nil Depreciation
Plant & Machinery	20% Straight line
Fixtures & Fittings	25% Straight line
Computer Equipment	33% Reducing balance

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Orkney Transport

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

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.

2.6. Stocks and Work in Progress

Stocks is 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.

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 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. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled.

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, are initially recognised at transaction price and are subsequently carried at amortised cost, using the effective interest rate method. Financial liabilities classified as payable within one year are not amortised.

Derecognition of financial liabilities

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

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Orkney Transport

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

2.8. Taxation

The 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.

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: 35 (2025: 12)

4. Intangible Assets

	Goodwill
	£
Cost
As at 1 April 2025	930,667

As at 31 March 2026	930,667

Amortisation
As at 1 April 2025	-
Provided during the period	100,613

As at 31 March 2026	100,613

...CONTINUED

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Orkney Transport

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

Net Book Value
As at 31 March 2026	830,054

As at 1 April 2025	930,667

5. Tangible Assets

	Land & Property
	Freehold	Plant & Machinery	Fixtures & Fittings	Computer Equipment	Total
	£	£	£	£	£
Cost
As at 1 April 2025	414,490	522,720	367	1,956	939,533
Additions	-	564,279	-	2,702	566,981
Disposals	-	(53,838 )	-	-	(53,838 )

As at 31 March 2026	414,490	1,033,161	367	4,658	1,452,676

Depreciation
As at 1 April 2025	-	49,682	61	435	50,178
Provided during the period	-	135,471	76	1,151	136,698
Disposals	-	(6,826 )	-	-	(6,826 )

As at 31 March 2026	-	178,327	137	1,586	180,050

Net Book Value
As at 31 March 2026	414,490	854,834	230	3,072	1,272,626

As at 1 April 2025	414,490	473,038	306	1,521	889,355

6. Stocks

	31 March 2026	31 March 2025
	£	£
Stock	8,396	17,573

7. Debtors

	31 March 2026	31 March 2025
	£	£
Due within one year
Trade debtors	41,857	27,116
Other debtors	89,746	49,743

	131,603	76,859

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Orkney Transport

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

8. Creditors: Amounts Falling Due Within One Year

	31 March 2026	31 March 2025
	£	£
Net obligations under finance lease and hire purchase contracts	98,984	28,784
Trade creditors	9,925	53,275
Bank loans and overdrafts	130,216	127,213
Other loans	236,640	352,317
Other creditors	29,532	30,031
Taxation and social security	72,563	8,097

	577,860	599,717

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

	31 March 2026	31 March 2025
	£	£
Net obligations under finance lease and hire purchase contracts	342,552	176,096
Bank loans	611,711	738,504
Other loans	-	205,429

	954,263	1,120,029

HSBC UK Bank PLC hold a floating charge over all the property or undertaking of the company.

Of the creditors falling due after more than one year the following amounts are due after more than five years.

	31 March 2026		31 March 2025
	£		£
Bank loans	-		120

10. Obligations Under Finance Leases and Hire Purchase

	31 March 2026	31 March 2025
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	98,984	28,784
Later than one year and not later than five years	342,552	176,096

	441,536	204,880

	441,536	204,880

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Orkney Transport

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

11. Share Capital

	31 March 2026	31 March 2025
	£	£
Allotted, Called up and fully paid	240	240

12. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases are as following:

	31 March 2026	31 March 2025
	£	£
Not later than one year	-	2,750

	-	2,750

13. Directors Advances, Credits and Guarantees

Included within Debtors are the following loans to directors:

	As at 1 April 2025	Amounts advanced	Amounts repaid	Amounts written off	As at 31 March 2026
	£	£	£	£	£
Mr Mark Sinclair	-	2,226	-	-	2,226

The above loan is unsecured, interest free and repayable on demand.

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		31 March 2026		31 March 2025
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		830,054		930,667
Tangible Assets	5		1,272,626		889,355

			2,102,680		1,820,022
CURRENT ASSETS
Stocks	6	8,396		17,573
Debtors	7	131,603		76,859
Cash at bank and in hand		171,026		129,277

		311,025		223,709
Creditors: Amounts Falling Due Within One Year	8	(577,860 )		(599,717 )

NET CURRENT ASSETS (LIABILITIES)			(266,835 )		(376,008 )

TOTAL ASSETS LESS CURRENT LIABILITIES			1,835,845		1,444,014

Creditors: Amounts Falling Due After More Than One Year	9		(954,263 )		(1,120,029 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(214,216 )		(118,666 )

NET ASSETS			667,366		205,319

CAPITAL AND RESERVES
Called up share capital	11		240		240
Profit and Loss Account			667,126		205,079

SHAREHOLDERS' FUNDS			667,366		205,319