Kelso Races Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC014994 (Scotland)

Unaudited Financial Statements for the Year Ended 31 May 2020

for

Kelso Races Limited

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

G F Adam

D H Davidson

Mrs J Millar

R M Landale

M S Hunter

J M H Garratt

REGISTERED OFFICE:

The Racecourse

Kelso

Roxburghshire

TD5 7SX

REGISTERED NUMBER:

SC014994 (Scotland)

ACCOUNTANTS:

Douglas Home & Co Ltd

Chartered Accountants

47-49 The Square

Kelso

Roxburghshire

TD5 7HW

FIXED ASSETS

Intangible assets

4

4,875,000

5,000,000

Property, plant and equipment

5

1,312,585

1,445,164

Investments

6

30,600

30,600

6,218,185

6,475,764

CURRENT ASSETS

Inventories

4,569

4,671

Debtors

7

58,074

287,097

Cash at bank

273,265

116,967

335,908

408,735

CREDITORS

Amounts falling due within one year

8

282,396

346,572

NET CURRENT ASSETS

53,512

62,163

TOTAL ASSETS LESS CURRENT LIABILITIES

6,271,697

6,537,927

CREDITORS

Amounts falling due after more than one year

9

(400,012

)

(457,517

)

PROVISIONS FOR LIABILITIES

(1,063,500

)

(1,085,500

)

NET ASSETS

4,808,185

4,994,910

CAPITAL AND RESERVES

Called up share capital

2,000

2,000

Other reserves

157,090

157,090

Fair value reserve

4,330,000

4,455,000

Retained earnings

319,095

380,820

SHAREHOLDERS' FUNDS

4,808,185

4,994,910

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2020 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 15 February 2021 and were signed on its behalf by:

J M H Garratt - Director

1.	STATUTORY INFORMATION

Kelso Races 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 as modified by the revaluation of certain assets.

The company meets its day to day working capital requirements through an overdraft facility which is repayable on demand. The company expects to operate within the facility currently agreed and within that expected to be agreed periodically with the company's bankers. These views are based on the company's plans and on the successful outcome of discussions with the company's bankers.

Turnover

Turnover represents net income from raceday activities, excluding value added tax.

Intangible assets

Race day fixtures owned by the company are stated at valuation. Valuations are carried out annually by the directors and reviewed for impairment.

Race day fixtures are amortised over 40 years from the date of valuation.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Grandstands

-

4% on reducing balance and Over the remaining life of the lease

Freehold land

-

not provided

Improvements to property

-

Over the remaining life of the lease

Fixtures, fittings, plant and machinery

-

33% on cost and 25% on reducing balance

Stocks

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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.

Hire purchase and leasing commitments

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 estimated 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 profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The company contributes to the personal pension schemes of certain employees. Contributions payable for the year are charged in the profit and loss account.

Grants and capital contributions

Capital contributions received from the Horserace Betting Levy Board are capitalised in the balance sheet and amortised over a period specified at the time the grant was made. This amortisation appears in the Profit and Loss account.

Media rights income

Income received in advance under media rights contracts is deferred and recognised evenly over the period of the contract.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 11 (2019 - 11 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST OR VALUATION

At 1 June 2019

and 31 May 2020

5,000,000

AMORTISATION

Charge for year

125,000

At 31 May 2020

125,000

NET BOOK VALUE

At 31 May 2020

4,875,000

At 31 May 2019

5,000,000

Cost or valuation at 31 May 2020 is represented by:

Other

intangible

assets

£

Valuation in 2019

5,000,000

5.	PROPERTY, PLANT AND EQUIPMENT

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST OR VALUATION

At 1 June 2019

1,662,247

1,683,956

3,346,203

Additions

-

2,274

2,274

At 31 May 2020

1,662,247

1,686,230

3,348,477

DEPRECIATION

At 1 June 2019

891,998

1,009,041

1,901,039

Charge for year

38,095

96,758

134,853

At 31 May 2020

930,093

1,105,799

2,035,892

NET BOOK VALUE

At 31 May 2020

732,154

580,431

1,312,585

At 31 May 2019

770,249

674,915

1,445,164

Cost or valuation at 31 May 2020 is represented by:

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

Valuation in 2019

500,000

-

500,000

Cost

1,162,247

1,686,230

2,848,477

1,662,247

1,686,230

3,348,477

Freehold land was valued on an open market basis on 23 October 2019 by Sidney Phillips .

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

etc

£

COST OR VALUATION

At 1 June 2019

145,440

Transfer to ownership

(48,740

)

At 31 May 2020

96,700

DEPRECIATION

At 1 June 2019

62,395

Charge for year

17,017

Transfer to ownership

(33,762

)

At 31 May 2020

45,650

NET BOOK VALUE

At 31 May 2020

51,050

At 31 May 2019

83,045

6.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1 June 2019

and 31 May 2020

30,600

NET BOOK VALUE

At 31 May 2020

30,600

At 31 May 2019

30,600

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/5/20

31/5/19

£

£

Trade debtors

46,741

120,238

Other debtors

11,333

166,859

58,074

287,097

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/5/20

31/5/19

£

£

Hire purchase contracts

13,501

14,404

Trade creditors

67,659

165,682

Taxation and social security

10,324

46,781

Other creditors

190,912

119,705

282,396

346,572

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31/5/20

31/5/19

£

£

Hire purchase contracts

25,479

38,980

Other creditors

374,533

418,537

400,012

457,517

10.	SECURED DEBTS

The following secured debts are included within creditors:

31/5/20

31/5/19

£

£

Hire purchase contracts

38,980

53,384

Hire Purchase liabilities are secured on the assets to which they relate.