The members present their annual report and financial statements for the year ended 31 December 2024.
The principal activity continued to be that of pelagic fishing.
The results for the year and the financial position at the year end were considered satisfactory by the members who expect profits to continue at similar levels for the foreseeable future.
The members' drawings policy allows each member to draw a proportion of their profit share, subject to the cash requirements of the business.
Each member subscribes to the capital of the LLP on appointment as a member and subsequently when changes in ownership arise. In the event of any member withdrawing from the LLP the remaining members have the option to purchase the whole share of the outgoing member, in proportion to their interest in the LLP. If the remaining members do not wish to exercise this option the outgoing member may sell their share to any other person providing prior approval is obtained from the remaining members. Details of changes in members' capital are set out in the reconciliation of members' interests.
The designated members who held office during the year and up to the date of signature of the financial statements were as follows:
Hall Morrice LLP were deemed to be reappointed as auditor to the limited liability partnership in accordance with section 487(2) of the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008).
The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members 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 (as applied by limited liability partnerships the members 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 limited liability partnership and of the profit or loss of the limited liability partnership for that period.
In preparing these financial statements, the members are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the limited liability partnership will continue in business.
The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Castlehill LLP (the “Limited Liability Partnership”) for the year ended 31 December 2024, which comprise the statement of comprehensive income, the balance sheet, the reconciliation of members’ interests, 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).
Basis for opinion
Conclusions relating to going concern
Other information
As explained more fully in the members’ responsibilities statement, the members 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 members 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 members are responsible for assessing the LLP’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 members either intend to liquidate the LLP or to cease operations, or have no realistic alternative but to do so.
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 Independent 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 for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Independent auditor’s report.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing the risk of material misstatement due to non-compliance with laws and regulations we have:
ensured that the engagement team had the appropriate competence, capabilities and skills to identify or recognise non-compliance with laws and regulations;
identified the laws and regulations applicable to the entity through discussions with members and management and through our own knowledge of the sector;
focused on the specific laws and regulations we consider may have a direct effect on the financial statements, including FRS 102, the Companies Act 2006 and tax compliance regulations;
focused on the specific laws and regulations we consider may have an indirect effect on the financial statements that are central to the entity’s ability to trade, including those relating to health and safety and fisheries-related regulatory compliance;
reviewed the financial statement disclosures and tested supporting documentation to assess compliance with applicable laws and regulations; and
made enquiries of management and remained alert to instances of non-compliance throughout the audit.
reviewed minutes of meetings of those charged with governance; and
ensured the engagement team remained alert to instances of non-compliance throughout the audit.
In identifying and assessing the risk of material misstatement due to irregularities, including fraud and how it may occur, and the potential for management bias and the override of controls we have:
obtained an understanding of the LLP’s operations, including the nature of its revenue sources and of its objectives and strategies, to understand the classes of transactions, account balances, expected financial disclosures and business risks that may result in risk of material misstatement;
obtained an understanding of the internal controls in place to mitigate risks of irregularities, including fraud;
carried out detailed testing, on a sample basis, to verify the completeness, occurrence, existence and accuracy of transactions and balances;
carried out detailed testing to verify the completeness, validity, existence and accuracy of income including cut-off testing and ensuring income recognition is in line with stated accounting policies;
made enquiries of management as to where they considered there was a susceptibility to fraud, and their knowledge of any actual, suspected or alleged fraud;
tested journal entries to identify any unusual transactions;
performed analytical procedures to identify any significant or unusual transactions;
investigated the business rationale behind any significant or unusual transactions; and
evaluated the appropriateness of accounting policies and the reasonableness of accounting estimates.
We did not identify any matters relating to non-compliance with laws and regulations, or relating to fraud.
Because of the inherent limitations of an audit, there is an unavoidable risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk of not detecting a material misstatement due to fraud is inherently more difficult than detecting those that result from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. In addition, the further removed any non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
Use of our report
This report is made solely to the LLP’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the LLP’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 LLP and the LLP’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
In accordance with the members' agreement, amounts due to members at the financial year end are transferred to members' capital on the first day of the subsequent financial year.
There are no existing restrictions or limitations which impact the ability of the members of the LLP to reduce the amount of Members' other interests.
In accordance with the members' agreement, amounts due to members at the financial year end are transferred to members' capital on the first day of the subsequent financial year.
There are no existing restrictions or limitations which impact the ability of the members of the LLP to reduce the amount of Members' other interests.
Castlehill LLP is a limited liability partnership incorporated in Scotland. The registered office is Heritage House, 141 Shore Street, Fraserburgh, United Kingdom, AB43 9BP.
The limited liability partnership's principal activities are disclosed in the Members' Report.
These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together 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 limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest pound.
The limited liability partnership has not prepared consolidated financial statements on the basis that the subsidiary is not material for the purpose of giving a true and fair view. The financial statements present information about the limited liability partnership as an individual entity and not about its group.
At the time of approving the financial statements the members have a reasonable expectation that the LLP has adequate resources to continue in operational existence for the foreseeable future. In reaching this conclusion, particular attention has been paid to the period of 12 months from the date of approval of the financial statements, and therefore they have been prepared on a going concern basis.
Turnover represents amounts receivable for the sale of fish and related products. Fish sales are recognised at the point of settling. Other income is recognised as services are provided.
Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).
Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.
Profits are automatically divided as they arise, so the LLP does not have an unconditional right to refuse payment and the amounts arising that are due to members are in the nature of liabilities. They are therefore treated as an expense and presented as members remuneration charged as an expense in arriving at the result for the relevant year. To the extent that they remain unpaid at the period end, they are shown as liabilities.
All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.
Intangible assets are stated at cost, net of amortisation and any provision for impairment.
Amortisation 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:
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Tangible fixed assets are stated at cost less depreciation or valuation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
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 recognised in the profit and loss account.
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the limited liability partnership. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the limited liability partnership reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.
Stocks comprise fuel held for use and are stated at the lower of cost and estimated selling price. The quantity of fuel held at the reporting date is determined based on the number of litres calculated by the engineer using physical measurement or estimation techniques and are valued using the price per litre from the most recent purchase invoices. Fuel is charged to profit or loss as consumed.
Cash at bank and in hand are basic financial assets and include deposits held at call with banks.
Financial instruments are recognised in the limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.
Basic financial assets, which include debtors and bank balances, are measured at transaction price including transaction costs.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership 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.
Basic financial liabilities, including creditors, are initially recognised at transaction price.
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.
Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Assets and liabilities of overseas subsidiaries are translated into the group’s presentation currency at the rate ruling at the reporting date. Income and expenses of overseas subsidiaries are translated at the average rate for the year as the members consider this to be a reasonable approximation to the rate at the date of the transaction. Translation differences are recognised in other comprehensive income and accumulated in equity.
Taxation
No taxation has been provided in the accounts as taxation is a personal liability of the members. Taxation payments made by the LLP on behalf of members are accounted for as members drawings.
In the application of the limited liability partnership’s accounting policies, the members 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.
Amortisation
The amortisation rate applied to each class of intangible asset is a judgment exercised by management. Amortisation charged in the year was £76,906 (2023 - £108,190) (Note 8).
Depreciation
The depreciation rate applied to each class of tangible asset is a judgment exercised by management. Depreciation charged in the year was £957,996 (2023 - £894,325) (Note 9).
An analysis of the limited liability partnership's turnover is as follows:
Members' remuneration charged as an expense where there is an automatic, contractually agreed division of profits.
In addition, £1,560,250 (2023 - £1,376,400) of remuneration was paid to companies controlled by directors of the LLP's designated members by way of labour share which is included in cost of sales.
Details of the limited liability partnership's subsidiaries at 31 December 2024 are as follows:
Amounts owed to group undertakings represent the intercompany balance due to the subsidiary, Puerto De Camarles S.L.U. This balance is unsecured, interest free and repayable on demand.
The LLP has taken advantage of the exemptions included in FRS 102 33.1A not to disclose transactions with wholly owned group companies.
Castlehill LLP is connected to its members and to companies with common directors.