Prime Cuts Butchers (Ayrshire) Ltd - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: SC456630 (Scotland)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

FOR

PRIME CUTS BUTCHERS (AYRSHIRE) LTD

Page

Company Information

1

Statement of Financial Position

2

Statement of Changes in Equity

4

Notes to the Financial Statements

5

DIRECTOR:

Mr J Kennedy

REGISTERED OFFICE:

6 Miller Road

Ayr

Ayrshire

KA7 2AY

REGISTERED NUMBER:

SC456630 (Scotland)

ACCOUNTANTS:

K M Stewart & Company

6 Miller Road

Ayr

KA7 2AY

BANKERS:

Santander

Customer Service Centre

Bootle

Merseyside

L30 4GB

FIXED ASSETS

Intangible assets

4

1,100

2,200

Tangible assets

5

54,091

54,994

55,191

57,194

CURRENT ASSETS

Stocks

6

4,182

4,182

Debtors

7

182,612

132,363

Cash at bank and in hand

30,720

14,021

217,514

150,566

CREDITORS

Amounts falling due within one year

8

126,889

53,007

NET CURRENT ASSETS

90,625

97,559

TOTAL ASSETS LESS CURRENT LIABILITIES

145,816

154,753

CREDITORS

Amounts falling due after more than one year

9

(30,833

)

(40,833

)

PROVISIONS FOR LIABILITIES

(9,957

)

(10,059

)

NET ASSETS

105,026

103,861

CAPITAL AND RESERVES

Called up share capital

11

100

100

Retained earnings

12

104,926

103,761

SHAREHOLDERS' FUNDS

105,026

103,861

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2022 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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 director and authorised for issue on 31 August 2023 and were signed by:

Mr J Kennedy - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 September 2020

100

52,793

52,893

Changes in equity

Total comprehensive income

-

50,968

50,968

Balance at 31 August 2021

100

103,761

103,861

Changes in equity

Total comprehensive income

-

1,165

1,165

Balance at 31 August 2022

100

104,926

105,026

1.	STATUTORY INFORMATION

Prime Cuts Butchers (Ayrshire) Ltd 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.

Functional currency

The financial statements are presented in British Pounds Sterling which is the functional currency. Figures are shown to the nearest whole pound.

Significant judgements and estimates

The preparation of financial statements requires the use of certain accounting estimates. It also requires the Directors to exercise judgement in applying the Companies Accounting policies. The areas requiring a higher degree of judgement, or complexity, and areas where assumptions or estimates are most significant to the financial statements, are disclosed below:

Estimation Uncertainty

Useful life of properties, plant and equipment

The Company assesses the useful life of its properties, plant and equipment and estimates the annual charge to be depreciated based on this.

Recoverability of Debtors

The Company assesses the recoverability of Debtors on an individual basis, taking into consideration payment history, and perceived liquidity. Where it is considered that there is a higher than normal risk to the recoverability of these, provision is made against the recoverability of these debts.

Stock Valuation

The Company assesses the carrying value of stock on at least an annual basis, taking into consideration when each item was purchased and the Company's ability to sell that particular item. Where it is considered the net realisable value of stock has fallen below its' original cost, a provision is made by Management against the stock value in the financial statements.

Key Judgements made in the application of Accounting Policies

a) Exemptions taken in the application of FRS 102

The Company has considered and taken advantage of the following exemptions in its application of FRS 102:

i) The Company has not revisited previous accounting estimates.

Turnover

Turnover represents net invoiced sales of retail butcher products, excluding value added tax.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2013, is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets

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

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Computer equipment

-

33.3% on cost

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

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

Financial instruments

Classification

The Company believes all financial instruments are Basic Financial Instruments. Therefore, the Company recognises these in accordance with Section 11 of the Financial Reporting Standard.

Recognition and measurement

The company's debt instruments are measured at amortised cost using the effective interest rate method.

Impairment

Financial instruments are reviewed annually for impairment.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 3 (2021 - NIL ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 September 2021

and 31 August 2022

11,000

AMORTISATION

At 1 September 2021

8,800

Amortisation for year

1,100

At 31 August 2022

9,900

NET BOOK VALUE

At 31 August 2022

1,100

At 31 August 2021

2,200

5.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Computer

machinery

fittings

equipment

Totals

£

£

£

£

COST

At 1 September 2021

90,440

9,721

1,720

101,881

Additions

7,974

451

566

8,991

At 31 August 2022

98,414

10,172

2,286

110,872

DEPRECIATION

At 1 September 2021

40,033

5,703

1,151

46,887

Charge for year

8,757

670

467

9,894

At 31 August 2022

48,790

6,373

1,618

56,781

NET BOOK VALUE

At 31 August 2022

49,624

3,799

668

54,091

At 31 August 2021

50,407

4,018

569

54,994

6.

STOCKS

2022

2021

£

£

Stocks

4,182

4,182

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Other debtors

182,612

132,363

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

10,000

10,380

Trade creditors

9,479

4,640

Taxation and social security

33,240

31,299

Other creditors

74,170

6,688

126,889

53,007

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans

30,833

40,833

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

30,833

40,833

The bank loan is repayable in instalments over 6 years. The loan is guaranteed by government and carries an interest rate of 2.5% p.a.

10.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Bank loans

40,833

51,213

The bank loan is secured by a bond and floating charge over the assets for the company.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

100

Ordinary

£1

100

100

12.

RESERVES

Retained

earnings

£

At 1 September 2021

103,761

Profit for the year

1,165

At 31 August 2022

104,926

13.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 August 2022 and 31 August 2021:

2022

2021

£

£

Mr J Kennedy

Balance outstanding at start of year

85,828

9,064

Amounts advanced

115,374

98,171

Amounts repaid

(65,368

)

(21,407

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

135,834

85,828

14.	POST BALANCE SHEET EVENTS

At the date on which the financial statements were approved, the financial implications arising from the Coronavirus (Covid-19) outbreak, which has affected the UK, are uncertain. The director is reviewing forecasts for an anticipated change in the company's operational activities in the short term. The director is of the opinion that the Covid-19 outbreak is a non-adjusting Post Balance Sheet event and that the company remains a going concern.