Mertoun Estate Farms Limited - Accounts to registrar - small 17.2

REGISTERED NUMBER: 04030000 (England and Wales)

Mertoun Estate Farms Limited

Financial Statements

for the Year Ended 31st March 2017

Page

Company information

1

Balance sheet

2

to

3

Notes to the financial statements

4

to

8

Directors:

His Grace The Duke of Sutherland

The Duchess of Sutherland

Marquis of Stafford

Lord H A Egerton

Secretary:

The Duchess of Sutherland

Registered office:

66 Lincolns Inn Fields

London

WC2A 3LH

Registered number:

04030000 (England and Wales)

Accountants:

Rennie Welch LLP

Academy House

Shedden Park Road

Kelso

Roxburghshire

TD5 7AL

Fixed assets

Intangible assets

4

538,885

538,885

Tangible assets

5

3,065,279

2,009,115

3,604,164

2,548,000

Current assets

Stocks

1,150,982

1,044,316

Debtors

6

670,062

826,885

Investments

7

367

117

Cash at bank and in hand

328,387

307,324

2,149,798

2,178,642

Creditors

Amounts falling due within one year

8

427,917

872,547

Net current assets

1,721,881

1,306,095

Total assets less current liabilities

5,326,045

3,854,095

Creditors

Amounts falling due after more than one year

9

5,516,829

3,938,730

Net liabilities

(190,784

)

(84,635

)

Capital and reserves

Called up share capital

1,000

1,000

Retained earnings

(191,784

)

(85,635

)

Shareholders' funds

(190,784

)

(84,635

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st March 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st March 2017 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 of Part 15 of the Companies Act 2006 relating to small companies.

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 on 5th October 2017 and were signed on its behalf by:

His Grace The Duke of Sutherland - Director

1.	Statutory information

Mertoun Estate Farms Limited is a private company, limited by shares , registered in England and

Wales. 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 the provisions of Section 1A "Small Entities" of 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.

Changes in accounting policies

The principal accounting policies adopted in the preparation of the financial statements are set out

below.

The financial statements for the year ended 31st March 2017 are the first financial statements that

comply with FRS102 Section 1A for small entities. The date of transition is 1 April 2015.

There has been no impact to the financial statements on the transition date.

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.

Intangible assets

Intangible assets are measured at cost.

BPS entitlements are not being amortised.

Other intangible assets are not being amortised.

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.

Improvements to property

-

10% on cost and 5% on cost

Plant and machinery

-

at varying rates on cost

Motor vehicles

-

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, after making due allowance for

obsolete and slow moving items.

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 stock to completion.

Financial instruments

The following assets and liabilities are classified as financial instruments - trade debtors, trade

creditors and directors' loans.

Directors' loans (being repayable on demand), trade debtors and trade creditors 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

is recognised in the Income Statement.

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 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.

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.

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.

Those held under hire purchase contracts are depreciated over their useful lives. Those held under

finance leases are depreciated over their estimated useful lives or the lease term, whichever is the

shorter.

The interest element of these obligations is charged to the profit and loss account over the relevant

period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The regular cost of providing retirement pensions and related benefits is charged to the profit and loss

account over the employees' service lives on the basis of a constant percentage of earnings.

Investments

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

Going concern

The company has net liabilities at the year end due to poor farming results in the current and previous

years. The company has preference shares of £5,277,750 which are classified as creditors falling due

after one year. The company is therefore considered to continue to be a going concern and the

accounts have been prepared on that basis.

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 and that a payment will be required in settlement that can be estimated

reliably. Where material, provisions are calculated on a discounted basis.

Employee benefits

Short term employee benefits, including holiday pay, are recognised as an expense in the income

statement in the period in which they are incurred.

3.	Employees and directors

The average number of employees during the year was 16 .

4.	Intangible fixed assets

Other

BPS

intangible

entitlements

assets

Totals

£

£

£

Cost

At 1st April 2016

and 31st March 2017

15,000

523,885

538,885

Net book value

At 31st March 2017

15,000

523,885

538,885

At 31st March 2016

15,000

523,885

538,885

5.	Tangible fixed assets

Improvements

to

Plant and

Motor

property

machinery

vehicles

Totals

£

£

£

£

Cost

At 1st April 2016

851,707

2,742,628

66,881

3,661,216

Additions

683,290

701,380

4,800

1,389,470

Disposals

-

(108,414

)

(3,815

)

(112,229

)

At 31st March 2017

1,534,997

3,335,594

67,866

4,938,457

Depreciation

At 1st April 2016

387,921

1,227,733

36,447

1,652,101

Charge for year

58,241

241,912

10,930

311,083

Eliminated on disposal

-

(86,191

)

(3,815

)

(90,006

)

At 31st March 2017

446,162

1,383,454

43,562

1,873,178

Net book value

At 31st March 2017

1,088,835

1,952,140

24,304

3,065,279

At 31st March 2016

463,786

1,514,895

30,434

2,009,115

6.

Debtors: amounts falling due within one year

2017

2016

£

£

Trade debtors

456,497

475,369

Other debtors

213,565

351,516

670,062

826,885

7.	Current asset investments

2017

2016

£

£

Unlisted investments

367

117

8.

Creditors: amounts falling due within one year

2017

2016

£

£

Hire purchase contracts (see note 10)

258,242

222,055

Trade creditors

113,172

609,894

Other creditors

56,503

40,598

427,917

872,547

9.

Creditors: amounts falling due after more than one year

2017

2016

£

£

Hire purchase contracts (see note 10)

239,079

410,980

Other creditors

5,277,750

3,527,750

5,516,829

3,938,730

10.	Leasing agreements

Minimum lease payments fall due as follows:

Hire purchase

contracts

2017

2016

£

£

Net obligations repayable:

Within one year

258,242

222,055

Between one and five years

239,079

410,980

497,321

633,035

Non-cancellable

operating leases

2017

2016

£

£

Within one year

16,707

15,988

11.	Secured debts

The following secured debts are included within creditors:

2017

2016

£

£

Hire purchase contracts

497,321

633,035

Hire purchase contracts are secured on the assets concerned.

12.	Employee benefit obligations

The company operates a pension scheme providing benefits based on final pensionable pay. The

assets of the scheme are held separately from those of the company, being invested with insurance

companies. Contributions to the scheme are charged to the profit and loss account so as to spread the

cost of pensions over employees' working lives with the company. The contributions are determined by

a qualified actuary on the basis of triennial valuations using the projected unit method. The most recent

valuation was at 31st March 2010. The assumptions that have the most significant effect on the results

of the valuation are those relating to the rate of return on investments and the rate of increase in

salaries and pensions.

The pension charge for the year was £51,856 (2016 - £37,619).

The most recent triennial review to 31st March 2016 concluded in May 2017 that the scheme was now

in surplus.

13.	Capital commitments

2017

2016

£

£

Contracted but not provided for in the

financial statements

200,000

-