Orkney Distilling Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC525595 (Scotland)

Unaudited Financial Statements

for the Year Ended 29 February 2020

for

Orkney Distilling Limited

Page

Company Information

1

Abridged Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

S C R Kemp

Mrs A S Kemp

REGISTERED OFFICE:

Springfields

Berstane Road

St Ola

Kirkwall

Orkney

KW15 1SZ

REGISTERED NUMBER:

SC525595 (Scotland)

ACCOUNTANTS:

Orcadia

Chartered Accountants

1 - 3 East Road

Kirkwall

Orkney

KW15 1HZ

FIXED ASSETS

8,489

Intangible assets

4

8,140

1,095,175

Tangible assets

5

1,136,577

1,103,664

1,144,717

CURRENT ASSETS

77,812

Stocks

105,924

175,078

Debtors

40,389

150,662

Cash at bank and in hand

57,682

403,552

203,995

CREDITORS

1,115,036

Amounts falling due within one year

937,120

(711,484

)

NET CURRENT LIABILITIES

(733,125

)

392,180

TOTAL ASSETS LESS CURRENT LIABILITIES

411,592

CREDITORS

(288,992

)

Amounts falling due after more than one year

6

(281,937

)

(114,663

)

ACCRUALS AND DEFERRED INCOME

(125,638

)

(11,475

)

NET ASSETS/(LIABILITIES)

4,017

CAPITAL AND RESERVES

100

Called up share capital

100

(11,575

)

Retained earnings

3,917

(11,475

)

4,017

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 29 February 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 29 February 2020 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.

All the members have consented to the preparation of an abridged Balance Sheet for the year ended 29 February 2020 in accordance with Section 444(2A) of the Companies Act 2006.

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 and authorised for issue on 23 November 2020 and were signed on its behalf by:

S C R Kemp - Director

1.	STATUTORY INFORMATION

Orkney Distilling 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Development costs are being amortised evenly over their estimated useful life of four years.

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

-

2% on cost

Plant and machinery etc

-

25% on reducing balance

Stocks

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

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 debtors and 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 unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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 re initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 9 (2019 - 8 ) .

4.	INTANGIBLE FIXED ASSETS

Totals

£

COST

At 1 March 2019

15,308

Additions

3,170

At 29 February 2020

18,478

AMORTISATION

At 1 March 2019

6,819

Amortisation for year

3,519

At 29 February 2020

10,338

NET BOOK VALUE

At 29 February 2020

8,140

At 28 February 2019

8,489

5.	TANGIBLE FIXED ASSETS

Totals

£

COST

At 1 March 2019

1,106,686

Additions

67,109

At 29 February 2020

1,173,795

DEPRECIATION

At 1 March 2019

11,511

Charge for year

25,707

At 29 February 2020

37,218

NET BOOK VALUE

At 29 February 2020

1,136,577

At 28 February 2019

1,095,175

Included in cost of land and buildings is freehold land of £ 176,910 (2019 - £ 176,910 ) which is not depreciated.

6.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN FIVE YEARS

2020

2019

£

£

Repayable by instalments

Bank Loans

248,061

256,201

7.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Bank loans

289,599

296,998

8.	RELATED PARTY DISCLOSURES

During the year the construction of the distillery was undertaken by a company in which S Kemp is a director. At 31 March 2020 there was a balance due to the company of £341,615. This amount is included within other creditors.