Company Registration No. SC275628 (Scotland)
Cardross Asset Management Limited
Annual report and financial statements
for the year ended 30 November 2023
Cardross Asset Management Limited
Company information
Director
Mr A S Buchanan
Secretary
Mrs MJ Buchanan
Company number
SC275628
Registered office
8 Craigcrook Road
Edinburgh
EH4 3NQ
Auditor
Henderson Loggie LLP
11 - 15 Thistle Street
Edinburgh
EH2 1DF
Cardross Asset Management Limited
Contents
Page
Director's report
1 - 2
Independent auditor's report
3 - 5
Profit and loss account
6
Balance sheet
7
Statement of changes in equity
8
Notes to the financial statements
9 - 13
Cardross Asset Management Limited
Director's report
for the year ended 30 November 2023
- 1 -

The director presents their annual report and financial statements for the year ended 30 November 2023.

Principal activities

The principal activity of the company continued to be that of management of real estate on a contract basis.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr A S Buchanan
Auditor

The auditor, Henderson Loggie LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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 of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the director individually has taken all the necessary steps that he ought to have taken as director in order to make himself aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

Cardross Asset Management Limited
Director's report (continued)
for the year ended 30 November 2023
- 2 -
On behalf of the board
Mr A S Buchanan
Director
14 February 2024
Cardross Asset Management Limited
Independent auditor's report
to the member of Cardross Asset Management Limited
- 3 -
Opinion

We have audited the financial statements of Cardross Asset Management Limited (the 'company') for the year ended 30 November 2023 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

Cardross Asset Management Limited
Independent auditor's report (continued)
to the member of Cardross Asset Management Limited
- 4 -
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 director's report.

 

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:

 

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines is 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below.

Cardross Asset Management Limited
Independent auditor's report (continued)
to the member of Cardross Asset Management Limited
- 5 -

As part of our planning process:

 

The key procedures we undertook to detect irregularities, including fraud, during the course of the audit included:

 

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance. The risk is also greater regarding irregularities occurring due to fraud, rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report 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 member for our audit work, for this report, or for the opinions we have formed.

Diana Penny (Senior Statutory Auditor)
For and on behalf of Henderson Loggie LLP
14 February 2024
Chartered Accountants
Statutory Auditor
11 - 15 Thistle Street
Edinburgh
EH2 1DF
Cardross Asset Management Limited
Profit and loss account
for the year ended 30 November 2023
- 6 -
2023
2022
£
£
Turnover
134,576
112,975
Administrative expenses
(122,160)
(110,084)
Other operating income
57,661
57,661
Operating profit
70,077
60,552
Interest receivable and similar income
21,195
1,690
Profit before taxation
91,272
62,242
Tax on profit
(20,618)
(11,948)
Profit for the financial year
70,654
50,294
Cardross Asset Management Limited
Balance Sheet
As at 30 November 2023
30 November 2023
- 7 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
2,597
3,355
Investment properties
5
778,250
778,250
780,847
781,605
Current assets
Debtors
6
22,387
23,628
Cash at bank and in hand
1,145,180
1,082,514
1,167,567
1,106,142
Creditors: amounts falling due within one year
7
(37,110)
(26,908)
Net current assets
1,130,457
1,079,234
Total assets less current liabilities
1,911,304
1,860,839
Provisions for liabilities
(46,910)
(47,099)
Net assets
1,864,394
1,813,740
Capital and reserves
Called up share capital
10,000
10,000
Non-distributable reserve
220,162
220,162
Profit and loss reserves
1,634,232
1,583,578
Total equity
1,864,394
1,813,740

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 14 February 2024
Mr A S Buchanan
Director
Company Registration No. SC275628
Cardross Asset Management Limited
Statement of changes in equity
for the year ended 30 November 2023
- 8 -
Share capital
Non-distributable reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 December 2021
10,000
220,162
1,553,284
1,783,446
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
-
50,294
50,294
Dividends
-
-
(20,000)
(20,000)
Balance at 30 November 2022
10,000
220,162
1,583,578
1,813,740
Year ended 30 November 2023:
Profit and total comprehensive income for the year
-
-
70,654
70,654
Dividends
-
-
(20,000)
(20,000)
Balance at 30 November 2023
10,000
220,162
1,634,232
1,864,394
Cardross Asset Management Limited
Notes to the financial statements
for the year ended 30 November 2023
- 9 -
1
Accounting policies
Company information

Cardross Asset Management Limited is a private company limited by shares incorporated in Scotland. The registered office is 8 Craigcrook Road, Edinburgh, EH4 3NQ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies' regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover, which represents management fee income, is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

1.3
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:

Fixtures, fittings & equipment
15% straight line
Motor vehicles
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.

1.4
Investment properties

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 at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account and held in a non-distributable reserve.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

Cardross Asset Management Limited
Notes to the financial statements (continued)
for the year ended 30 November 2023
1
Accounting policies (continued)
- 10 -
1.7
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.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs.

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, are recognised at transaction price.

 

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.

1.8
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.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Cardross Asset Management Limited
Notes to the financial statements (continued)
for the year ended 30 November 2023
1
Accounting policies (continued)
- 11 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Employee 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.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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 property valuation

Investment properties are valued at fair value.. At 30 November 2023 this was based on the directors assessment of the fair value. The director does not believe the fair value has changed from the professional valuation undertaken at 30 November 2021 as detailed within note 5 of the financial statements.

Cardross Asset Management Limited
Notes to the financial statements (continued)
for the year ended 30 November 2023
- 12 -
3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
2
2
4
Tangible fixed assets
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
Cost
At 1 December 2022 and 30 November 2023
15,822
62,000
77,822
Depreciation and impairment
At 1 December 2022
12,467
62,000
74,467
Depreciation charged in the year
758
-
0
758
At 30 November 2023
13,225
62,000
75,225
Carrying amount
At 30 November 2023
2,597
-
0
2,597
At 30 November 2022
3,355
-
0
3,355
5
Investment property
2023
£
Fair value
At 1 December 2022 and 30 November 2023
778,250

Investment property comprises rental property. This was valued at £778,250 as at 30 November 2021 by J&E Shepherd, independent valuers not connected with the company, on the basis of market value. The valuation conforms to International Valuation standards and was based on recent market transactions on arm's length terms of similar properties. The director believes this valuation was still appropriate at 30 November 2023.

 

The historical value of the freehold investment property is £511,828 (2022: £511,828).

Cardross Asset Management Limited
Notes to the financial statements (continued)
for the year ended 30 November 2023
- 13 -
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
22,387
23,628
7
Creditors: amounts falling due within one year
2023
2022
£
£
Corporation tax
20,807
11,973
Other taxation and social security
8,263
8,758
Other creditors
8,040
6,177
37,110
26,908
8
Related party transactions

Property management services were provided to Cardross Estates Limited, a company in which Mr A S Buchanan is a director. Fees received in respect of property management services amounted to £10,000 in the year (2022: £10,000).

 

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