Company No: SC622667 (Scotland)

Contents

• Company Information
• Balance Sheet
• Notes to the Unaudited Financial Statements

DIRECTORS	Mike McMahon
	Wilma McMahon
	Chris McMahon
REGISTERED OFFICE	Commerce House
	South Street
	Elgin
	IV30 1JE
	United Kingdom
COMPANY NUMBER	SC622667(Scotland)
CHARTERED ACCOUNTANTS	Johnston Carmichael LLP
	Commerce House
	South Street
	Elgin
	IV30 1JE

		2021		2020
	Note	£		£
Fixed assets
Intangible assets	3	119,928		134,287
Tangible assets	4	300,722		292,788
		420,650		427,075
Current assets
Stocks		8,500		8,200
Debtors	5	3,440		0
Cash at bank and in hand		14,339		33,413
		26,279		41,613
Creditors
Amounts falling due within one year	6	( 251,371)		( 242,826)
Net current liabilities		(225,092)		(201,213)
Total assets less current liabilities		195,558		225,862
Creditors
Amounts falling due after more than one year	7	( 261,087)		( 269,707)
Net liabilities		( 65,529)		( 43,845)
Capital and reserves
Called-up share capital	8	100		100
Profit and loss account		( 65,629 )		( 43,945 )
Total shareholders' deficit		( 65,529)		( 43,845)

For the financial year ending 28 February 2021 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors’ responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Fear Beag Ltd (registered number: SC622667) were approved and authorised for issue by the Board of Directors on 23 November 2021. They were signed on its behalf by:

Mike McMahon Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial period, unless otherwise stated.

General information and basis of accounting

Fear Beag Ltd (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in Scotland. The address of the Company's registered office is Commerce House, South Street, Elgin, IV30 1JE, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors note that the business has net current liabilities of £225,092. The Company is supported through loans from the directors. The directors have confirmed that the loan facilities will continue to be available for at least 12 months from the date of signing these financial statements and the directors will continue to support the Company. Given the current position, the directors believe that any foreseeable debts can be met for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Employee benefits

Short term benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Profit and Loss Account in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.

Intangible assets

Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

Goodwill			10	years	Straight line
Computer software			4	years	Straight line

Goodwill
Goodwill arises on business combination and represents any excess of consideration given over the fair value of the identifiable assets and liabilities acquired. Goodwill is initially recognised as an intangible asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis over its useful economic life, which is 10 years.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a reducing balance basis over its expected useful life, as follows:

Land and buildings					Not depreciated
Plant and machinery etc.	20	-	25	%	Reducing balance

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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 credited or charged to profit or loss.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.

Non-financial assets
At each balance sheet date, the company reviews its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a 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. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either 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 the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies that are classified as debt, are 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.

Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

Government grants

Government grants are recognised based on the performance model and are measured at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received.

A grant that specifies performance conditions is recognised in income only when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the grant proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2. Employees

	2021		2020
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	13		3

3. Intangible assets

	Goodwill		Computer software		Total
	£		£		£
Cost
At 01 March 2020	140,000		1,437		141,437
At 28 February 2021	140,000		1,437		141,437
Accumulated amortisation
At 01 March 2020	7,000		150		7,150
Charge for the financial year	14,000		359		14,359
At 28 February 2021	21,000		509		21,509
Net book value
At 28 February 2021	119,000		928		119,928
At 29 February 2020	133,000		1,287		134,287

4. Tangible assets

	Land and buildings		Plant and machinery etc.		Total
	£		£		£
Cost
At 01 March 2020	279,041		14,645		293,686
Additions	0		12,460		12,460
At 28 February 2021	279,041		27,105		306,146
Accumulated depreciation
At 01 March 2020	0		898		898
Charge for the financial year	0		4,526		4,526
At 28 February 2021	0		5,424		5,424
Net book value
At 28 February 2021	279,041		21,681		300,722
At 29 February 2020	279,041		13,747		292,788

5. Debtors

	2021		2020
	£		£
Other debtors	3,440		0

6. Creditors: amounts falling due within one year

	2021		2020
	£		£
Bank loans and overdrafts	8,881		4,293
Trade creditors	3,280		11,192
Amounts owed to associates	78,896		64,041
Other creditors	156,521		157,411
Other taxation and social security	3,793		5,889
	251,371		242,826

The bank loan is secured by a floating charge over the assets of the business.

7. Creditors: amounts falling due after more than one year

	2021		2020
	£		£
Bank loans	261,087		269,707

The bank loan is secured by a floating charge over the assets of the business.

Included within bank loans are net current obligations of £221,077 (2020 - £231,479) which are due after 5 year and payable by instalments.

8. Called-up share capital

	2021		2020
	£		£
Allotted, called-up and fully-paid
100 Ordinary shares of £ 1.00 each	100		100

9. Related party transactions

Transactions with entities in which the entity itself has a participating interest

	2021		2020
	£		£
Other Related Parties	78,896		63,674

Transactions with the entity's directors

	2021		2020
	£		£
Key Management Personnel	153,074		153,412

These amounts are interest free and have no fixed terms of repayment.