Company No: SC396077 (Scotland)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2022		2021
		£		£
Fixed assets
Tangible assets	3	32,503		23,102
Investments	4	1,711,430		0
		1,743,933		23,102
Current assets
Stocks	5	425,314		232,283
Debtors	6	33,745		0
Cash at bank and in hand	7	13,626		17
		472,685		232,300
Creditors
Amounts falling due within one year	8	( 1,003,809)		( 8,879)
Net current (liabilities)/assets		(531,124)		223,421
Total assets less current liabilities		1,212,809		246,523
Creditors
Amounts falling due after more than one year	9	( 1,500,000)		( 396,736)
Net liabilities		( 287,191)		( 150,213)
Capital and reserves
Called-up share capital	10	2		2
Profit and loss account		( 287,193 )		( 150,215 )
Total shareholder's deficit		( 287,191)		( 150,213)

For the financial year ending 31 March 2022 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The member has 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 and delivered 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 Buchan Guns Ltd. (registered number: SC396077) were approved and authorised for issue by the Director on 31 March 2023. They were signed on its behalf by:

Grant Buchan 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 year, unless otherwise stated.

General information and basis of accounting

Buchan Guns 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 Ugie Lodge Mill Of Rora, Longside, Peterhead, AB42 4UB, 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

At the year end the company has net liabilities of £287,191 (2021 - £150,213) and net current liabilities of £531,124 (2021 - net current assets of £223,421). However the company is in early growth stages and it is anticipated that both revenue and profit will be recognised in the year to 31 March 2023 as a number of orders will be completed and provided to the customer. The directors expect the company to grow substantially over the next few years. In the meantime the company is supported by its subsidiary company and directors. The directors have confirmed that they will not seek repayment of their loan accounts totalling £635,781 until the company has sufficient funds to do so. Therefore, these financial statements have been prepared on a going concern basis.

Group accounts exemption

Group accounts exemption s399
The Company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the Company as an individual entity and not about its group.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Profit and Loss Account in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

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. This is when the goods have been completed, certified and the final invoice raised.

Income received in advance of turnover being recognised is included as deferred income.

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 straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings	20 years straight line
Plant and machinery etc.	5 years straight line

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.

Stocks

Stocks and work in progress 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.

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.

Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, and loans from fellow group companies, 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.

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.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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

	2022		2021
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	3		2

3. Tangible assets

	Land and buildings		Plant and machinery etc.		Total
	£		£		£
Cost
At 01 April 2021	21,046		51,166		72,212
Additions	0		19,388		19,388
At 31 March 2022	21,046		70,554		91,600
Accumulated depreciation
At 01 April 2021	8,806		40,304		49,110
Charge for the financial year	1,030		8,957		9,987
At 31 March 2022	9,836		49,261		59,097
Net book value
At 31 March 2022	11,210		21,293		32,503
At 31 March 2021	12,240		10,862		23,102

4. Fixed asset investments

Investments in subsidiaries

	2022
	£
Cost
At 01 April 2021	0
Additions	1,711,430
At 31 March 2022	1,711,430
Carrying value at 31 March 2022	1,711,430
Carrying value at 31 March 2021	0

During the year, the company acquired 100% of the ordinary share capital of David McKay Brown (Gunmakers) Limited. Included in the above is deferred consideration of £250,000 which is payable in equal instalments on the 3rd, 4th and 5th anniversary of the completion of the deal.

5. Stocks

	2022		2021
	£		£
Work in progress	425,314		232,283

6. Debtors

	2022		2021
	£		£
Trade debtors	2,148		0
Other debtors	31,597		0
	33,745		0

7. Cash and cash equivalents

	2022		2021
	£		£
Cash at bank and in hand	13,626		17

8. Creditors: amounts falling due within one year

	2022		2021
	£		£
Amounts owed to Group undertakings	222,665		0
Amounts owed to directors	557,069		117
Accruals and deferred income	130,853		1,030
Corporation tax	1,906		1,906
Other taxation and social security	10,698		5,729
Other creditors	80,618		97
	1,003,809		8,879

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

	2022		2021
	£		£
Bank loans	1,250,000		0
Amounts owed to directors	0		396,736
Other creditors	250,000		0
	1,500,000		396,736

This loan is secured by a floating charge over all of the company's assets.

Other creditors represents deferred consideration which is payable on the 3rd, 4th and 5th anniversary of the completion of the acquisition of David McKay Brown (Gunmakers) Limited. The date of completion was 23 December 2021.

10. Called-up share capital

	2022		2021
	£		£
Allotted, called-up and fully-paid
2 Ordinary shares of £ 1.00 each	2		2

11. Related party transactions

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

	2022		2021
	£		£
Group company	222,665		0

This loan is interest free and repayable on demand.

Transactions with the entity's directors

	2022		2021
	£		£
Directors loan accounts	557,069		396,853

In the course of the company making its acquisition of David McKay Brown (Gunmakers) Limited, the directors incurred significant costs on behalf of the company. These loans are interest free and repayable on demand.