Emerald Inns Ltd - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: SC420187 (Scotland)

Unaudited Financial Statements for the Year Ended 31 May 2023

for

Emerald Inns Ltd

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

M A Lawless

D S Lawson

REGISTERED OFFICE:

135 Culduthel Road

Inverness

IV2 4EF

REGISTERED NUMBER:

SC420187 (Scotland)

ACCOUNTANTS:

Cairntax

Fairways House

Fairways Business Park

Inverness

IV2 6AA

FIXED ASSETS

Intangible assets

5

607,500

675,000

Tangible assets

6

167,216

180,990

Investment property

7

405,418

405,418

1,180,134

1,261,408

CURRENT ASSETS

Stocks

55,120

48,169

Debtors

8

506,336

465,012

Cash at bank and in hand

1,431,228

950,965

1,992,684

1,464,146

CREDITORS

Amounts falling due within one year

9

604,069

449,043

NET CURRENT ASSETS

1,388,615

1,015,103

TOTAL ASSETS LESS CURRENT LIABILITIES

2,568,749

2,276,511

CREDITORS

Amounts falling due after more than one year

10

(57,654

)

(65,431

)

PROVISIONS FOR LIABILITIES

(24,876

)

(27,510

)

NET ASSETS

2,486,219

2,183,570

CAPITAL AND RESERVES

Called up share capital

100

100

Share premium

303,801

303,801

Retained earnings

2,182,318

1,879,669

2,486,219

2,183,570

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2023 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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 26 February 2024 and were signed on its behalf by:

D S Lawson - Director

1.	STATUTORY INFORMATION

Emerald Inns 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.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.

Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Goodwill - over 20 years

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible fixed assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Long term leasehold property - over the period of the lease

Fixtures and fittings - 15% reducing balance

Equipment - 20% reducing balance

Leasehold improvements - 20% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Investment property

Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure.

Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.

Stocks

Stocks are measured at the lower of cost and estimated selling price.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Lease income is recognised in profit or loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Government grants are recognised using the accrual model.

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 38 (2022 - 34 ) .

5.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 June 2022

and 31 May 2023

1,350,000

AMORTISATION

At 1 June 2022

675,000

Charge for year

67,500

At 31 May 2023

742,500

NET BOOK VALUE

At 31 May 2023

607,500

At 31 May 2022

675,000

6.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

Long

to

Plant and

and

leasehold

property

machinery

fittings

Totals

£

£

£

£

£

COST

At 1 June 2022

110,916

84,396

103,897

97,290

396,499

Additions

-

-

14,864

-

14,864

At 31 May 2023

110,916

84,396

118,761

97,290

411,363

DEPRECIATION

At 1 June 2022

62,852

51,047

58,905

42,705

215,509

Charge for year

1,809

6,670

11,972

8,187

28,638

At 31 May 2023

64,661

57,717

70,877

50,892

244,147

NET BOOK VALUE

At 31 May 2023

46,255

26,679

47,884

46,398

167,216

At 31 May 2022

48,064

33,349

44,992

54,585

180,990

7.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 June 2022

and 31 May 2023

405,418

NET BOOK VALUE

At 31 May 2023

405,418

At 31 May 2022

405,418

The investment property was valued by the directors, on 31 May 2022, based on open market value.

The historic cost of the investment property is £405,418 (2022 - £405,418).

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

10,348

10,348

Other debtors

495,988

454,664

506,336

465,012

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Other loans

5,000

3,000

Trade creditors

276,202

244,653

Tax

141,856

75,449

Social security and other taxes

20,710

17,345

VAT

122,154

67,062

Other creditors

38,147

41,534

604,069

449,043

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Other Loans

57,654

65,431

11.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2023

2022

£

£

Within one year

20,000

20,000

Between one and five years

80,000

80,000

In more than five years

70,000

90,000

170,000

190,000

12.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 May 2023 and 31 May 2022:

2023

2022

£

£

D S Lawson

Balance outstanding at start of year

32,559

31,162

Amounts advanced

271,117

179,171

Amounts repaid

(268,053

)

(177,774

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

35,623

32,559

Interest is charged on the loan to D S Lawson at a rate of 2% (2022 - 2%) and the amount of interest charged for the year ended 31 May 2023 was £2,340 (2022 - £1,489). The loan has no fixed terms of repayment.

13.	RELATED PARTY DISCLOSURES

During the year, total dividends of £192,000 (2022 - £174,000) were paid to the directors .