SKAIRFIELD LIMITED


Directors	JARDINE-PATERSON, James Michael
	JOHNSTONE, David Patrick Wentworth Hope, Lord
	MOUNSEY-HEYSHAM, Toby Herchard
	ROUTLEDGE, Oliver Myles


Registered Address	Armstrong Watson, 51 Rae Street
	Dumfries
	DG1 1JD


Registered Number	SC183096 (Scotland)

Notes to the Financial Statements
for the year ended 28 February 2026

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.

	Functional and presentation currency
	The financial statements are presented in sterling and this is the functional currency of the company.

	Judgements and key sources of estimation uncertainty
	The preparation of financial statements in conformity with FRS 102 requires management to make key judgements that affect the application of policies and reporting amounts of assets, income and expenses. The judgements that have a significant risk of causing a material adjustment are discussed below: Accounting treatment of standing timber Management deem a key area of judgement within these financial statements to be the accounting for standing timber and whether it should be classified as fixed assets or inventory. It is our assessment that based on the nature of this standing timber being held to maturity where it is then consumed, that it is deemed more appropriate to account for this as inventory as opposed to a fixed asset, in line with the definition of fixed assets set out in the Companies Act 2006.

Judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with FRS 102 requires management to make key judgements that affect the application of policies and reporting amounts of assets, income and expenses.
The judgements that have a significant risk of causing a material adjustment are discussed below:

Accounting treatment of standing timber
Management deem a key area of judgement within these financial statements to be the accounting for standing timber and whether it should be classified as fixed assets or inventory. It is our assessment that based on the nature of this standing timber being held to maturity where it is then consumed, that it is deemed more appropriate to account for this as inventory as opposed to a fixed asset, in line with the definition of fixed assets set out in the Companies Act 2006.

	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.

	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 follow

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 follow


		Straight line (years)
	Land and buildings	10
	Office Equipment	5

	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.

	Investment property
	Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate. These values are adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Income Statement.

	Stocks and work in progress
	Stocks relate to standing timber and are stated at the lower of cost and net realisable value. The volume of standing timber is assessed at each reporting date by the directors with assistance from independent experts when required. This is compared to the initial volume acquired to determine the extent of any reduction in the period. Where usage of standing timber has exceeded growth leading to a net reduction in volume the Company calculates the volume used as a percentage of the total acquired and calculates a proportionate element of the original cost which is then charged to the profit and loss account. Where the volume of wood at the end of a reporting period exceeds the original volume acquired the Company does not revalue the stock upwards to reflect this increase, in line with the policy of holding stock at cost.

Stocks and work in progress

Stocks relate to standing timber and are stated at the lower of cost and net realisable value. The volume of standing timber is assessed at each reporting date by the directors with assistance from independent experts when required. This is compared to the initial volume acquired to determine the extent of any reduction in the period. Where usage of standing timber has exceeded growth leading to a net reduction in volume the Company calculates the volume used as a percentage of the total acquired and calculates a proportionate element of the original cost which is then charged to the profit and loss account. Where the volume of wood at the end of a reporting period exceeds the original volume acquired the Company does not revalue the stock upwards to reflect this increase, in line with the policy of holding stock at cost.

	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


		2026		2025
	Average number of employees during the year	4		4

3.	Tangible fixed assets

	Land & buildings	Office Equipment	Total
	£	£	£
Cost or valuation
At 01 March 25	5,571,968	469	5,572,437
At 28 February 26	5,571,968	469	5,572,437
Depreciation and impairment
At 01 March 25	220,335	468	220,803
Charge for year	10,084	-	10,084
At 28 February 26	230,419	468	230,887
Net book value
At 28 February 26	5,341,549	1	5,341,550
At 28 February 25	5,351,633	1	5,351,634


	Commercial woodlands held by the company were revalued in 2022 based on external valuations by Scottish Woodlands. The directors believe the valuations attributed are still accurate at 28 February 2026. If commercial woodlands had not been included at valuation they would have been included under the historical cost convention as follows: 2026 £1,435,452 2025 £1,435,452

4.	Investment property
	The 2022 valuations were made by G M Thomson & Co, on an open market value for existing use basis. The directors believe these valuations are still accurate at 28 February 2026. If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows: 2025 £476,135 2024 £476,135


		£
	Fair value at 01 March 25	565,000
	At 28 February 26	565,000

5.	Fixed asset investments

	Other investments¹	Total
	£	£
Cost or valuation
At 01 March 25	496,199	496,199
Additions	72,895	72,895
Revaluations	76,129	76,129
Disposals	(81,990)	(81,990)
At 28 February 26	563,233	563,233
Net book value
At 28 February 26	563,233	563,233
At 28 February 25	496,199	496,199

	Notes
	¹Other investments other than loans

6.	Stocks

	2026	2025
	£	£
Other stocks	2,397,990	2,383,373
Total	2,397,990	2,383,373

7.	Debtors: amounts due within one year

	2026	2025
	£	£
Trade debtors / trade receivables	-	41,239
Other debtors	5,394	-
Prepayments and accrued income	11,763	12,367
Total	17,157	53,606

8.	Creditors: amounts due within one year

	2026	2025
	£	£
Trade creditors / trade payables	208	208
Taxation and social security	-	34,971
Accrued liabilities and deferred income	32,099	55,804
Total	32,307	90,983

9.	Provisions for liabilities

	2026	2025
	£	£
Net deferred tax liability (asset)	973,900	972,200
Total	973,900	972,200

10.	Events after reporting date
	It is the directors’ policy to retain cash within the company with the intention of purchasing forestry assets in line with the overall company strategy. Following extensive searches and various delays due to planting permissions, the directors have identified a forestry asset that satisfies their requirements and are currently in negotiations to purchase this with an aim to complete during the 4th quarter of 2026. A further forestry asset has been identified with the directors expecting to complete the purchase of this in 2027.

10.

Events after reporting date

It is the directors’ policy to retain cash within the company with the intention of purchasing forestry assets in line with the overall company strategy.
 
Following extensive searches and various delays due to planting permissions, the directors have identified a forestry asset that satisfies their requirements and are currently in negotiations to purchase this with an aim to complete during the 4th quarter of 2026.
 
A further forestry asset has been identified with the directors expecting to complete the purchase of this in 2027.

	Notes	2026		2025
		£	£	£	£
Fixed assets
Tangible assets	3		5,341,550		5,351,634
Investments	5		563,233		496,199
Investment property	4		565,000		565,000
			6,469,783		6,412,833
Current assets
Stocks	6	2,397,990		2,383,373
Debtors	7	17,157		53,606
Cash at bank and on hand		2,065,385		2,196,199
		4,480,532		4,633,178
Creditors amounts falling due within one year	8	(32,307)		(90,983)
Net current assets (liabilities)			4,448,225		4,542,195
Total assets less current liabilities			10,918,008		10,955,028
Provisions for liabilities	9		(973,900)		(972,200)
Net assets			9,944,108		9,982,828
Capital and reserves
Called up share capital			1,430,002		1,430,002
Revaluation reserve			4,222,380		4,222,380
Profit and loss account			4,291,726		4,330,446
Shareholders' funds			9,944,108		9,982,828