Archerfield Estates Ltd - Limited company accounts 23.2

REGISTERED NUMBER: SC106757 (Scotland)

Strategic Report, Report of the Directors and

Financial Statements for the Period 1 November 2021 to 28 February 2023

for

Archerfield Estates Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

John Kenneth Brown

Eleanor Douglas-Hamilton

Anne Douglas-Hamilton

Rachel Lilian Ross

REGISTERED OFFICE:

47 - 49 The Square

Kelso

Roxburghshire

TD5 7HW

REGISTERED NUMBER:

SC106757 (Scotland)

AUDITORS:

Douglas Home & Co (Audit) Limited

47-49 The Square

Kelso

Roxburghshire

TD5 7HW

The directors present their strategic report for the period 1 November 2021 to 28 February 2023.

BUSINESS REVIEW AND PRINCIPAL ACTIVITIES

The company engages in a diverse range of operations from owning, managing and developing heritable property and investments and a business enterprise including retail and hospitality activities.

Archerfield Estates Limited has continued to trade well during the 16-month period, despite the current economic climate implications faced by the business. Employee numbers have remained at over 50 staff members. The Director's strategic plan for the future is to continue to utilise the new redevelopment of the Walled Garden business to extend our offering and create a quality multi-faceted visitor destination, widening the visitor demographic and continue to increase footfall.

Results and Dividends

At £3.1m, turnover has seen a significant increase from the 2021 figure of £1.5m. From an operating loss-making position, the business is continuing to grow which can be seen through growing turnover, increased stockholdings and continuing to diversify activities. The last few years have brought significant change within the Archerfield Walled Garden part of the business with the business reopening a refurbished building and working to build the day time café, event and retail side of the business. The company has been increasing its offering to customers by adding an online shop and by promoting the shop local ideology the business has continued to drive visitor numbers The company has also seen rental increases for its property portfolio within the Edinburgh and East Lothian property markets.

Dividends totalling £247k were paid out during the period ended 28th February 2023.

Principle Risks and Uncertainties

Key risks and uncertainties are managed strategically at Board level and operationally via weekly senior management team meetings. Our key risks have been identified as follows:

Weather - This is a key risk to the company due to the seasonal nature and outdoor element of Archerfield Walled Garden. Adverse weather can lead to reduced footfall, impacting turnover levels and stock wastage.

Competition - Archerfield Walled Garden has many strong competitors in East Lothian and further afield. We continually monitor our position and remain competitive on our retail and hospitality, range, value, quality and service.

The Rental Market - Government restrictions over the movement in rental prices is a risk to the business as the company receives 10% of its annual turnover as rental income. The company regularly reviews its property portfolio to ensure the ongoing profitability of its investments.

Brexit - Leaving the European Union has had an impact on increased cost of goods, increased labour costs and supply shortages. However, utilising local suppliers and building strong relationships has helped the business cope with this issue.

The ongoing war between Ukraine and Russia - The ongoing war has impacted business confidence, and all major economies are reporting weak growth. The war has added to existing supply constraints and resulted in inflation pressures faced by the UK, which the Board continue to monitor.

Cost of Living Crisis - The long-term impact of the cost-of-living crisis is a concern for most companies as soaring energy bills, rising inflation and higher raw material costs are faced along with the worry that consumers facing the same pressures will cut spending. The Board will monitor this risk over the coming year.

EMPLOYEES

Details of the number of employees and related costs can be found in note 4 to the financial statements.

ON BEHALF OF THE BOARD:

Eleanor Douglas-Hamilton - Director

28 November 2023

The directors present their report with the financial statements of the company for the period 1 November 2021 to 28 February 2023.

PRINCIPAL ACTIVITIES

The principal activities of the company in the period under review were those of owning, managing and developing heritable property and investments and a business enterprise that includes retail and hospitality activities.

DIVIDENDS

Ordinary dividends were paid amounting to £247,010. The directors do not recommend payment of a final dividend.

EVENTS SINCE THE END OF THE PERIOD

Information relating to events since the end of the period is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 November 2021 to the date of this report.

John Kenneth Brown

Eleanor Douglas-Hamilton

Anne Douglas-Hamilton

Rachel Lilian Ross

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Douglas Home & Co (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Eleanor Douglas-Hamilton - Director

28 November 2023

Opinion

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, FRS102 and UK tax legislation. The engagement partner ensured the engagement team had the necessary competence, capabilities and skills to Identified laws and regulations and they remained alert to such matters throughout the audit.

Based on the results of our risk assessments we designed our audit procedures to identify non-compliance with such laws and regulation. We identified and evaluated the laws and regulations and enquired to management whether they were aware of any instances of non-compliance. We corroborated these through review of board minutes, review of legal and professional fees and review of any correspondence with HMRC.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. The laws and regulations we considered in this context included Health and Safety at Work Act 1979, Employment Law, Data Protection Act 2018, Food and Hygiene Standards UK, Wildlife & Countryside Act 1981 and Private Landlord Regulations per Private Housing (Tenancies) (Scotland) Act 2016.

Based on the results of our risk assessments we designed our audit procedures to identify non-compliance with such laws and regulation. We identified and evaluated the laws and regulation and enquired to management whether they were aware of any instances of non-compliance. We corroborated these through review of correspondence with any regulators, reviewed company policy for health and safety procedures, reviewed food hygiene rating and carried out gross to net pay checks.

We assessed the risks of material misstatement in respect of fraud via enquiries of management and those charged with governance as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud and considered the internal controls in place to mitigate risks of fraud. The management accounts are reviewed regularly by the board and actual figures compared to budgets; any variances are investigated by the finance controller.

To address the risk of fraud through management bias and override of controls we performed analytical procedures to identify any unusual or unexpected relationships, tested journal entries to identify unusual transactions, assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias and investigated the rationale behind any significant or unusual transactions.

With regard to identification of material misstatements in relation to fraud, we considered income recognition in line with FRS102, reviewed the appropriateness of the accounting policies selected and reviewed disclosures for completeness and accuracy. We also identified related parties and reviewed related party transactions.

We assessed the risk of material misstatement in respect of valuation of investment properties by ensuring the company has applied the appropriate accounting treatment, any gains/losses on revaluation are recognised in P&L. The external surveyors' reports are reviewed for appropriateness of the valuation by looking at the economic environment and comparing the property value to the market price in the same area.

The main factors of the audit process which may affect the likelihood of detection of irregularities includes the element of inherent difficulty always present in detecting irregularities due to fraud, and that conclusions on the design and implementation of internal controls focus only on those we have assessed as key controls.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Caroline Tice BA CA (Senior Statutory Auditor)

for and on behalf of Douglas Home & Co (Audit) Limited

47-49 The Square

Kelso

Roxburghshire

TD5 7HW

29 November 2023

REVENUE

3

3,133,309

1,472,862

Cost of sales

2,144,375

1,131,096

GROSS PROFIT

988,934

341,766

Administrative expenses

1,407,215

477,448

(418,281

)

(135,682

)

Other operating income

-

76,017

OPERATING LOSS

5

(418,281

)

(59,665

)

Interest receivable and similar income

1,551

1,895

(416,730

)

(57,770

)

Gain/loss on revaluation of investment property

5,583,333

-

5,166,603

(57,770

)

Interest payable and similar expenses

6

37

-

PROFIT/(LOSS) BEFORE TAXATION

5,166,566

(57,770

)

Tax on profit/(loss)

7

750,839

562,419

PROFIT/(LOSS) FOR THE FINANCIAL PERIOD

4,415,727

(620,189

)

PROFIT/(LOSS) FOR THE PERIOD

4,415,727

(620,189

)

OTHER COMPREHENSIVE INCOME

-

153,875

Income tax relating to other comprehensive income

-

(38,469

)

OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF INCOME TAX

-

115,406

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

4,415,727

(504,783

)

FIXED ASSETS

Intangible assets

9

17,665

5,335

Property, plant and equipment

10

3,824,835

3,896,914

Investments

11

101,526

101,526

Investment property

12

17,397,563

11,814,230

21,341,589

15,818,005

CURRENT ASSETS

Inventories

13

515,474

246,902

Debtors

14

77,722

186,866

Cash at bank and in hand

357,393

1,064,981

950,589

1,498,749

CREDITORS

Amounts falling due within one year

15

312,562

269,428

NET CURRENT ASSETS

638,027

1,229,321

TOTAL ASSETS LESS CURRENT LIABILITIES

21,979,616

17,047,326

PROVISIONS FOR LIABILITIES

16

2,608,692

1,845,119

NET ASSETS

19,370,924

15,202,207

CAPITAL AND RESERVES

Called up share capital

17

8,500

8,500

Share premium

18

1,633,255

1,633,255

Other reserves

18

11,221,211

6,643,046

Retained earnings

18

6,507,958

6,917,406

SHAREHOLDERS' FUNDS

19,370,924

15,202,207

The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2023 and were signed on its behalf by:

Eleanor Douglas-Hamilton - Director

Called up

share

Retained

Share

Other

Total

capital

earnings

premium

reserves

equity

£

£

£

£

£

Balance at 1 November 2020

8,500

7,701,645

1,633,255

6,527,640

15,871,040

Changes in equity

Total comprehensive income

-

(620,189

)

-

115,406

(504,783

)

Dividends

-

(164,050

)

-

-

(164,050

)

Balance at 31 October 2021

8,500

6,917,406

1,633,255

6,643,046

15,202,207

Changes in equity

Total comprehensive income

-

(162,438

)

-

4,578,165

4,415,727

Dividends

-

(247,010

)

-

-

(247,010

)

Balance at 28 February 2023

8,500

6,507,958

1,633,255

11,221,211

19,370,924

Cash flows from operating activities

Cash generated from operations

1

(421,373

)

(420,690

)

Interest paid

(37

)

-

Tax paid

97,103

-

Net cash from operating activities

(324,307

)

(420,690

)

Cash flows from investing activities

Purchase of intangible fixed assets

(12,330

)

(5,335

)

Purchase of tangible fixed assets

(128,423

)

(1,038,454

)

Purchase of investment property

-

180

Sale of tangible fixed assets

2,931

1,398

Sale of fixed asset investments

-

10,636

Interest received

1,551

1,895

Net cash from investing activities

(136,271

)

(1,029,680

)

Cash flows from financing activities

Equity dividends paid

(247,010

)

(164,050

)

Net cash from financing activities

(247,010

)

(164,050

)

Decrease in cash and cash equivalents

(707,588

)

(1,614,420

)

Cash and cash equivalents at beginning of period

2

1,064,981

2,679,401

Cash and cash equivalents at end of period

2

357,393

1,064,981

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

1/11/21

to

Year Ended

28/2/23

31/10/21

£

£

Profit/(loss) before taxation

5,166,566

(57,770

)

Depreciation charges

199,418

108,081

(Profit)/loss on disposal of fixed assets

(1,847

)

1,343

Gain on revaluation of fixed assets

(5,583,333

)

(405,251

)

Finance costs

37

-

Finance income

(1,551

)

(1,895

)

(220,710

)

(355,492

)

Increase in inventories

(268,572

)

(133,022

)

Decrease/(increase) in trade and other debtors

24,775

(5,413

)

Increase in trade and other creditors

43,134

73,237

Cash generated from operations

(421,373

)

(420,690

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 28 February 2023

28/2/23

1/11/21

£

£

Cash and cash equivalents

357,393

1,064,981

Year ended 31 October 2021

31/10/21

1/11/20

£

£

Cash and cash equivalents

1,064,981

2,679,401

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/11/21

Cash flow

At 28/2/23

£

£

£

Net cash

Cash at bank and in hand

1,064,981

(707,588

)

357,393

1,064,981

(707,588

)

357,393

Total

1,064,981

(707,588

)

357,393

1.	STATUTORY INFORMATION

Archerfield Estates 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Following the refurbishment of the Walled Garden, the Directors decided to extend the year end of the business to accommodate the operational logistics.

Going concern

The company has reported an operating loss for the financial period and is forecasting a loss in the year ahead.

However, in light of recent events surrounding the COVID -19 pandemic, Brexit, the war in Ukraine and the cost-of-living crisis, in common with most companies in the UK it is difficult to predict what impact this may have on the economy as a whole and the company's business in particular.

Although it is not possible to reliably estimate the length or severity of the current financial volatility, at the date of signing these financial statements the company has significant cash reserves, net current assets and is continuing to trade. The directors are actively managing the business on a day-to-day basis taking account of all changes in market conditions.

The directors consider that the current strong financial position of the company, together with prudent management decision making, will ensure that the company will continue in operational existence for the foreseeable future, and they therefore continue to adopt the going concern basis of accounting 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 trade discounts.

Turnover includes the following income streams:

-

Rental income is recognised on a straight line basis over the lease term.

-

Turnover for the retail and hospitality enterprise is recognised at the point of sale with the exception of the event income. Event income is recognised as the event occurs with deposits and advance ticket sales being included within deferred income.

-

The sale of agricultural goods is recognised upon delivery of the goods

Intellectual property

Intellectual property is initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Amortisation over 10 years will commence when the project is completed.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over

their useful lives on the following bases:

Land & buildings

- 33 years straight line

Plant, fixtures & equipment

- 15% - 25% straight line

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.

Heritable land and non-industrial buildings and moveable property are reviewed annually for impairment and the directors are of the opinion that their useful economic lives and residual values are such that any depreciation would not be material.

Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value a t the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

Fixed Asset Investments

Investments in joint ventures and unlisted entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly contolled entities .

Stocks

Retail and hospitality stocks are valued at the lower of cost and estimated selling price less costs to sell.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-downs of stocks to net realisable value and all losses of stock are recognised as an expense in the period in which the write-down of loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised as an expense in which the reversal occurs.

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section

12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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, bank loans, loans from fellow group companies and preference shares 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.

Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. Debt instruments may be designated as being measured at fair value through the profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

or cancelled.

Taxation

Taxation for the period 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 period 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Employee and retirement benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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

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

Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Investment properties

The value of the investment properties is based on values provided by external chartered surveyors. The directors do however acknowledge that these valuations are based on estimates made by the surveyors.

Useful economic life and residual value of property

The directors estimate that the company's property that is subject to depreciation will have a useful economic life of 33 years, with no residual value at the end of the useful economic life.

3.

REVENUE

This analysis is not considered to be applicable to the period ended 28 February 2023 and 31 October 2021.

4.	EMPLOYEES AND DIRECTORS

Period

1/11/21

to

Year Ended

28/2/23

31/10/21

£

£

Wages and salaries

1,342,113

831,715

Social security costs

101,287

54,675

Other pension costs

25,339

13,559

1,468,739

899,949

The average number of employees during the period was as follows:

Period

1/11/21

to

Year Ended

28/2/23

31/10/21

Directors

4

4

Management and administration

5

5

Retail and hospitality

45

39

Garden and estate

7

8

61

56