Swanston Farm Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC192334 (Scotland)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2018

FOR

SWANSTON FARM LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Mr A McClung

Ms A L McClung

REGISTERED OFFICE:

111 Swanston Road

Edinburgh

EH10 7DS

REGISTERED NUMBER:

SC192334 (Scotland)

ACCOUNTANTS:

Haines Watts

Chartered Accountants

Victoria House

87 High Street

Tillicoultry

FK13 6AA

SOLICITORS:

Turcan Connell

Princes Exchange

1 Earl Grey Street

Edinburgh

EH3 9EE

FIXED ASSETS

Tangible assets

5

6,509,016

8,180,570

CURRENT ASSETS

Stocks

6

24,698

18,524

Debtors

7

49,947

42,731

Cash at bank and in hand

105,758

128,252

180,403

189,507

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

8

1,667,596

1,615,017

NET CURRENT LIABILITIES

(1,487,193

)

(1,425,510

)

TOTAL ASSETS LESS CURRENT LIABILITIES

5,021,823

6,755,060

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

9

(1,656,577

)

(1,476,000

)

PROVISIONS FOR LIABILITIES

(215,592

)

(493,888

)

NET ASSETS

3,149,654

4,785,172

CAPITAL AND RESERVES

Called up share capital

985

985

Share premium

11

-

2,161,488

Revaluation reserve

11

994,065

2,087,241

Retained earnings

11

2,154,604

535,458

SHAREHOLDERS' FUNDS

3,149,654

4,785,172

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 12 September 2019 and were signed on its behalf by:

Mr A McClung - Director

1.	STATUTORY INFORMATION

Swanston Farm Limited is a private company, limited by shares , registered in Scotland. The company's

registered number and registered office address can be found on the Company Information page.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

TURNOVER

Turnover is measured at the fair value of the consideration received or receivable in relation to farming and

estate management and bar and restaurant services excluding discounts and value added tax where applicable.

TANGIBLE FIXED ASSETS

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land and buildings

-

not provided

Plant and machinery

-

25% per annum reducing balance

Fixtures and fittings

-

25% per annum reducing balance

Motor vehicles

-

25% per annum on cost

All fixed assets are initially recorded at cost.

GOVERNMENT GRANTS

Government grants have been recognised in line with the accruals model. Grants totalling £38,238 (2017 :

£19,728) were received from the Scottish Government to support farming activities.

STOCKS

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and

slow moving items.

TAXATION

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different

from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and

laws that have been enacted or substantively enacted by the year end and that are expected to apply to the

reversal of the timing difference.

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.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

4.

EMPLOYEES

The average number of employees during the year was 34 (2017 - 33 ) .

5.	TANGIBLE FIXED ASSETS

Fixtures

Land and

Plant and

and

Motor

buildings

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST OR VALUATION

At 1 January 2018

8,049,532

122,057

315,909

9,958

8,497,456

Additions

85,433

23,040

25,906

-

134,379

Disposals

(1,760,000

)

-

(1,664

)

-

(1,761,664

)

At 31 December 2018

6,374,965

145,097

340,151

9,958

6,870,171

DEPRECIATION

At 1 January 2018

-

78,968

227,960

9,958

316,886

Charge for year

-

16,533

28,152

-

44,685

Eliminated on disposal

-

-

(416

)

-

(416

)

At 31 December 2018

-

95,501

255,696

9,958

361,155

NET BOOK VALUE

At 31 December 2018

6,374,965

49,596

84,455

-

6,509,016

At 31 December 2017

8,049,532

43,089

87,949

-

8,180,570

Cost or valuation at 31 December 2018 is represented by:

Fixtures

Land and

Plant and

and

Motor

buildings

machinery

fittings

vehicles

Totals

£

£

£

£

£

Valuation in 2018

1,227,241

-

-

-

1,227,241

Cost

5,147,724

145,097

340,151

9,958

5,642,930

6,374,965

145,097

340,151

9,958

6,870,171

If Land and Buildings had not been revalued they would have been included at the following historical cost:

2018

2017

£

£

Cost

5,147,724

5,962,291

Value of land in freehold land and buildings

2,450,000

2,450,000

Land and Buildings were valued on an open market basis on 31 December 2018 by the directors .

6.

STOCKS

2018

2017

£

£

Stocks

24,698

18,524

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

12,895

18,842

Other debtors

37,052

23,889

49,947

42,731

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Bank loans and overdrafts

104,134

93,000

Hire purchase contracts

-

6,810

Trade creditors

34,285

37,229

Taxation and social security

108,377

69,661

Other creditors

1,420,800

1,408,317

1,667,596

1,615,017

Included in "Other creditors" are redeemable 4% £1 preference shares totalling £1,125,737 (2017 :

£1,125,737).

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2018

2017

£

£

Bank loans

1,499,077

1,476,000

Other creditors

157,500

-

1,656,577

1,476,000

10.	SECURED DEBTS

The following secured debts are included within creditors:

2018

2017

£

£

Bank loans

1,603,211

1,569,000

Security is held over the assets owned by the company.

Part of Swanston Farm is subject to a standard security in favour of Gilbert McClung (Kelso) Limited.

11.

RESERVES

Retained

Share

Revaluation

earnings

premium

reserve

Totals

£

£

£

£

At 1 January 2018

535,458

2,161,488

2,087,241

4,784,187

Profit for the year

540,482

540,482

Dividends

(2,176,000

)

(2,176,000

)

Reserves transfer

233,176

-

(233,176

)

-

De-merger of revalued assets

860,000

-

(860,000

)

-

Capital reduction

2,161,488

(2,161,488

)

-

-

At 31 December 2018

2,154,604

-

994,065

3,148,669

A capital reduction took place during 2018 which converted share premium of £2,161,488 into distributable

reserves.

An amount of £860,000 which related to revalued village cottages was released from the revaluation reserve to

distributable reserves on disposal of this asset.

The company held sufficient distributable reserves to issue a dividend in specie of £1,760,000 on 27 June 2018.

This dividend, which included the distribution of the village cottages, was issued to facilitate a de-merger to

the temporary holding company which is owned by Swanston Farm Limited's exiting director.

12.	RELATED PARTY DISCLOSURES

Included in "Other creditors" is a balance of £183,083 (2017 : £183,282) due to the directors. Interest is

charged at 2.5% on overdrawn amounts exceeding £10,000 and no fixed terms of repayment have been agreed.

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group".

The ultimate parent company is Swanston Farm Holdings Ltd whose registered office is at 111 Swanston Road,

Edinburgh, EH10 7DS.