R & A Wilson Limited - Accounts to registrar (filleted) - small 23.1.2

REGISTERED NUMBER: SC237983 (Scotland)

R & A Wilson Limited

Unaudited Financial Statements

for the Year Ended 31st October 2022

Page

Company information

1

Balance sheet

2

to

3

Notes to the financial statements

4

to

8

Directors:

A C M Wilson

Mrs R E Wilson

Mrs S E M Williams

Secretary:

A C M Wilson

Registered office:

Academy House

Shedden Park Road

Kelso

Roxburghshire

TD5 7AL

Business address:

Clackmae

Earlston

Berwickshire

TD4 6AJ

Registered number:

SC237983 (Scotland)

Accountants:

Rennie Welch LLP

Academy House

Shedden Park Road

Kelso

Roxburghshire

TD5 7AL

Fixed assets

Intangible assets

4

-

-

Tangible assets

5

1,508,226

1,512,963

1,508,226

1,512,963

Current assets

Stocks

1,243,573

1,217,273

Debtors

6

215,147

158,985

Investments

7

200

200

1,458,920

1,376,458

Creditors

Amounts falling due within one year

8

1,610,861

1,427,307

Net current liabilities

(151,941

)

(50,849

)

Total assets less current liabilities

1,356,285

1,462,114

Creditors

Amounts falling due after more than one year

9

(740,074

)

(930,871

)

Provisions for liabilities

(191,308

)

(196,582

)

Net assets

424,903

334,661

Capital and reserves

Called up share capital

100

100

Retained earnings

424,803

334,561

Shareholders' funds

424,903

334,661

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st October 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st October 2022 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 Statement of income and retained earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27th July 2023 and were signed on its behalf by:

A C M Wilson - Director

1.	Statutory information

R & A Wilson 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.	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.

Turnover arising from the sale of goods is recognised when the significant risks and rewards of ownership have passed to the buyer. Turnover arising from the provision of services is recognised as contract activity progresses and the right to consideration is earned.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2002, has been fully amortised over its estimated useful life of ten years.

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.

Basic payment scheme entitlements have now been fully 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 the cost less estimated residual value of each asset over its estimated useful life.

Robotic milking equipment

-

10% on cost

Land

-

not provided

Property improvements

-

5% on cost and 4% on cost

Plant and machinery

-

15% on reducing balance

Tractors

-

20% on reducing balance and Nil

Motor vehicles

-

25% on reducing balance

Office equipment

-

25% on cost

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Stocks

Stocks are valued at the lower of cost and net realisable value by the directors with the exception of the animals on herd basis. Cost includes all direct expenditure and appropriate proportion of fixed and variable overheads. Net realisable value is based on estimated selling prices less further costs expected to be incurred in bringing the growing crops to completion and finishing the livestock.

Financial instruments

The following assets and liabilities are classified as financial instruments - trade debtors, trade creditors, accruals, hire purchase contracts, bank loans and directors' loans.

Bank loans and hire purchase contracts are initially measured at the present value of future payments, discounted at a market rate of interest, and subsequently at amortised cost using the effective interest method.

Directors' loans (being repayable on demand), trade debtors, trade creditors and accruals are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss in the Statement of Income and Retained Earnings.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Investments

Current asset investments are stated at the lower of cost and net realisable value.

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.

Employee benefits

Short term employee benefits, including holiday pay, are recognised as an expense in the Statement of Income and Retained Earnings in the period in which they are incurred.

Provisions

Provisions are set up only where it is probable that a present obligation exists as a result of an event prior to the balance sheet date and that a payment will be required in settlement that can be estimated reliably. Where material, provisions are calculated on a discounted basis.

Going concern

The directors have considered the company's financial position for a period of 12 months from the date of signing these financial statements and have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing these financial statements.

3.	Employees and directors

The average number of employees during the year was 6 (2021 - 8 ) .

4.	Intangible fixed assets

Basic

payment

scheme

Goodwill

entitlements

Totals

£

£

£

Cost

At 1st November 2021

and 31st October 2022

71,200

2,645

73,845

Amortisation

At 1st November 2021

and 31st October 2022

71,200

2,645

73,845

Net book value

At 31st October 2022

-

-

-

At 31st October 2021

-

-

-

5.	Tangible fixed assets

Robotic

milking

Property

Plant and

equipment

Land

improvements

machinery

£

£

£

£

Cost

At 1st November 2021

476,108

280,079

1,032,150

471,576

Additions

-

-

90,543

78,227

Disposals

-

-

-

(32,000

)

At 31st October 2022

476,108

280,079

1,122,693

517,803

Depreciation

At 1st November 2021

385,229

-

350,765

267,947

Charge for year

20,596

-

50,984

39,775

Eliminated on disposal

-

-

-

(15,296

)

At 31st October 2022

405,825

-

401,749

292,426

Net book value

At 31st October 2022

70,283

280,079

720,944

225,377

At 31st October 2021

90,879

280,079

681,385

203,629

Motor

Office

Tractors

vehicles

equipment

Totals

£

£

£

£

Cost

At 1st November 2021

393,932

39,988

19,067

2,712,900

Additions

-

-

2,598

171,368

Disposals

-

-

-

(32,000

)

At 31st October 2022

393,932

39,988

21,665

2,852,268

Depreciation

At 1st November 2021

156,375

20,554

19,067

1,199,937

Charge for year

44,914

2,483

649

159,401

Eliminated on disposal

-

-

-

(15,296

)

At 31st October 2022

201,289

23,037

19,716

1,344,042

Net book value

At 31st October 2022

192,643

16,951

1,949

1,508,226

At 31st October 2021

237,557

19,434

-

1,512,963

6.

Debtors: amounts falling due within one year

2022

2021

£

£

Trade debtors

191,825

135,062

Other debtors

23,322

23,923

215,147

158,985

7.	Current asset investments

2022

2021

£

£

Unlisted investments

200

200

8.

Creditors: amounts falling due within one year

2022

2021

£

£

Bank loans and overdrafts

751,928

713,709

Hire purchase contracts

98,939

109,689

Trade creditors

351,571

273,086

Taxation and social security

46,938

23,615

Other creditors

361,485

307,208

1,610,861

1,427,307

9.

Creditors: amounts falling due after more than one year

2022

2021

£

£

Bank loans

695,769

808,667

Hire purchase contracts

44,305

122,204

740,074

930,871

Amounts falling due in more than five years:

Repayable by instalments

Bank loans due after five years

207,882

325,505

10.	Secured debts

The following secured debts are included within creditors:

2022

2021

£

£

Bank overdrafts

639,031

606,335

Bank loans

808,666

916,041

Hire purchase contracts

143,244

231,893

1,590,941

1,754,269

The Clydesdale Bank PLC hold a floating charge over all the assets of the company together with a personal guarantee of £1,450,000 from Mr ACM and Mrs RE Wilson, the directors of the company. A standard security is also held over 58 acres of land at Chapel-on-Leader.

Hire purchase contracts are secured against the assets to which they relate.

11.	Post balance sheet events

Since the year end, on 4th April 2023, an interim dividend for the year ending 31st October 2023 of £640 per share has been declared.