Company registration number SC362391 (Scotland)
KEPPOCHHILL PROPERTY COMPANY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 JULY 2023
PAGES FOR FILING WITH REGISTRAR
KEPPOCHHILL PROPERTY COMPANY LIMITED
COMPANY INFORMATION
Directors
I C McGhee
S A McGhee
G D McGhee
Secretary
I C McGhee
Company number
SC362391
Registered office
10 Keppochhill Drive
M8 Food Park
Glasgow
United Kingdom
G21 1HX
Accountants
Azets
Titanium 1
King's Inch Place
Renfrew
Renfrewshire
United Kingdom
PA4 8WF
KEPPOCHHILL PROPERTY COMPANY LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 8
KEPPOCHHILL PROPERTY COMPANY LIMITED
BALANCE SHEET
- 1 -
29 July 2023
30 July 2022
Notes
£
£
£
£
Fixed assets
Investment property
4
7,056,072
7,056,072
Current assets
Debtors
5
17,870
475,360
Cash at bank and in hand
56,204
1,074,848
74,074
1,550,208
Creditors: amounts falling due within one year
6
(1,159,181)
(2,188,074)
Net current liabilities
(1,085,107)
(637,866)
Total assets less current liabilities
5,970,965
6,418,206
Creditors: amounts falling due after more than one year
7
(711,507)
(1,076,922)
Provisions for liabilities
(641,717)
(637,071)
Net assets
4,617,741
4,704,213
Capital and reserves
Called up share capital
9
105
99
Share premium account
1,211,425
1,199,902
Profit and loss reserves
3,406,211
3,504,212
Total equity
4,617,741
4,704,213
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 29 July 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
KEPPOCHHILL PROPERTY COMPANY LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 29 February 2024 and are signed on its behalf by:
G D McGhee
Director
Company Registration No. SC362391
KEPPOCHHILL PROPERTY COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 JULY 2023
- 3 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 August 2021
99
1,199,902
3,284,305
4,484,306
Year ended 30 July 2022:
Profit and total comprehensive income for the year
-
-
219,907
219,907
Balance at 30 July 2022
99
1,199,902
3,504,212
4,704,213
Year ended 29 July 2023:
Profit and total comprehensive income for the year
-
-
251,999
251,999
Issue of share capital
9
6
11,523
-
11,529
Dividends
-
-
(350,000)
(350,000)
Balance at 29 July 2023
105
1,211,425
3,406,211
4,617,741
KEPPOCHHILL PROPERTY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 JULY 2023
- 4 -
1
Accounting policies
Company information
Keppochhill Property Company Limited is a private company limited by shares incorporated in Scotland. The registered office is 10 Keppochhill Drive, M8 Food Park, Glasgow, United Kingdom, G21 1HX.
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 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 other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Turnover represents rental income. Rental income income is recognised in the period to which it relates.
1.3
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. Changes in fair value are recognised in profit or loss.
1.4
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.5
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.
KEPPOCHHILL PROPERTY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
1
Accounting policies
(Continued)
- 5 -
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.
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.
1.6
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.7
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.
KEPPOCHHILL PROPERTY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
1
Accounting policies
(Continued)
- 6 -
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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.
2
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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
KEPPOCHHILL PROPERTY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
- 7 -
4
Investment property
2023
£
Fair value
At 31 July 2022 and 29 July 2023
7,056,072
Investment property was valued on an open market basis on 30 July 2023 by its directors.
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
5,838
Other debtors
12,032
475,360
17,870
475,360
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
365,415
351,278
Trade creditors
4,606
Taxation and social security
79,361
67,301
Other creditors
709,799
1,769,495
1,159,181
2,188,074
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
711,507
1,076,922
8
Loans and overdrafts
2023
2022
£
£
Bank loans
1,076,922
1,428,200
Payable within one year
365,415
351,278
Payable after one year
711,507
1,076,922
The bank loan is secured by a standard security over the property held by Keppochhill Property Company Limited, floating charges and cross guarantees between related companies.
KEPPOCHHILL PROPERTY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
- 8 -
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
99
99
99
99
A Ordinary shares of £1 each
3
-
3
-
B Ordinary shares of £1 each
1
-
1
-
C Ordinary Shares of £1 each
1
-
1
-
D Ordinary shares of £1 each
1
-
1
-
105
99
105
99
During the year, 3 £1 A Ordinary shares, 1 £1 B Ordinary share, 1 £1 C Ordinary share and 1 £1 D Ordinary share were issued for a total consideration of £11,529. A share premium of £11,523 arose on these issues.
10
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Rental Income
2023
2022
£
£
A company under common ownership
374,974
401,896
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£
£
A company under common ownership
351,087
1,765,248
A company with a mutual director and shareholder
350,000
-
The following amounts were outstanding at the reporting end date:
The following amounts were recognised as an expense in the period in respect of bad and doubtful debts due from related parties:
2023
2022
£
£
A company under common ownership
-
(98,038)
11
Parent company
The company was under the control of its directors throughout the year.