Company registration number SC050016 (Scotland)
HIGHLAND DEEPHAVEN LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
HIGHLAND DEEPHAVEN LIMITED
COMPANY INFORMATION
Directors
R R L Munro Ferguson
M C Davis (chairman)
J M Hahn
(Appointed 1 January 2023)
W J Neeson III
(Appointed 1 January 2023)
Company number
SC050016
Registered office
Administration Building
Highland Deephaven Industrial Estate
Evanton
Dingwall
Ross-Shire
United Kingdom
IV16 9XP
Auditor
Azets Audit Services
10 Ardross Street
Inverness
United Kingdom
IV3 5NS
HIGHLAND DEEPHAVEN LIMITED
CONTENTS
Page
Statement of financial position
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
HIGHLAND DEEPHAVEN LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
23,692
15,574
Investment properties
4
9,520,000
9,520,000
9,543,692
9,535,574
Current assets
Debtors
5
1,468,142
104,940
Cash at bank and in hand
817,881
2,960,104
2,286,023
3,065,044
Creditors: amounts falling due within one year
6
(1,534,877)
(1,914,493)
Net current assets
751,146
1,150,551
Total assets less current liabilities
10,294,838
10,686,125
Creditors: amounts falling due after more than one year
7
(7,607)
(7,905)
Provisions for liabilities
8
(43,503)
(37,579)
Net assets
10,243,728
10,640,641
Capital and reserves
Called up share capital
9
2,002,970
2,002,970
Revaluation reserve
10
7,451,169
7,451,169
Capital redemption reserve
10
17,030
17,030
Profit and loss reserves
10
772,559
1,169,472
Total equity
10,243,728
10,640,641

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of Section 1A ‘Small Entities' of FRS 102.

The financial statements were approved by the board of directors and authorised for issue on 1 April 2024 and are signed on its behalf by:
J M Hahn
Director
Company Registration No. SC050016
HIGHLAND DEEPHAVEN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
2,002,970
7,452,601
17,030
1,326,873
10,799,474
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
641,167
641,167
Dividends
-
-
-
(800,000)
(800,000)
Other movements
-
(1,432)
-
1,432
-
Balance at 31 December 2022
2,002,970
7,451,169
17,030
1,169,472
10,640,641
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
403,087
403,087
Dividends
-
-
-
(800,000)
(800,000)
Balance at 31 December 2023
2,002,970
7,451,169
17,030
772,559
10,243,728
HIGHLAND DEEPHAVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information

Highland Deephaven Limited is a private company limited by shares incorporated in Scotland. The registered office is Administration Building, Highland Deephaven Industrial Estate, Evanton, Dingwall, Ross-Shire, United Kingdom, IV16 9XP.

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
Going concern

The company has sufficient financial resources to meet its day-to-day working capital requirements. The directors believe that the company is well placed to manage its business risks successfully and operate within the level of its current facilities.

 

The company therefore continues to adopt the going concern basis in preparing its financial statements.

1.3
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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Revenue from rental income is recognised in the period to which it relates in accordance with the rental agreement.

HIGHLAND DEEPHAVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Improvements to property
2% on cost
Fixtures and fittings
15% on cost
Computer equipment
25% on cost

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.

1.5
Investment properties

Investment property is carried at fair value determined annually by the directors and derives from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Comprehensive Income.

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, other short-term liquid investments with original maturities of three months or less.

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 statement of financial position 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 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.

HIGHLAND DEEPHAVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities

Basic financial liabilities, including creditors, 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.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

 

Dividends payable on equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

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 income statement 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.

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 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 income statement, 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.

HIGHLAND DEEPHAVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.13
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.15

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

1.16

Borrowing costs

All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred.

HIGHLAND DEEPHAVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2
Employees

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

2023
2022
Number
Number
Total
4
5
3
Tangible fixed assets
Improvements to property
Fixtures and fittings
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2023
92,892
2,450
1,160
96,502
Additions
1,954
8,620
-
0
10,574
At 31 December 2023
94,846
11,070
1,160
107,076
Depreciation and impairment
At 1 January 2023
78,644
1,349
935
80,928
Depreciation charged in the year
1,871
512
73
2,456
At 31 December 2023
80,515
1,861
1,008
83,384
Carrying amount
At 31 December 2023
14,331
9,209
152
23,692
At 31 December 2022
14,248
1,101
225
15,574
4
Investment property
2023
£
Fair value
At 1 January 2023 and 31 December 2023
9,520,000

Investment property was externally valued on an open market basis on 1 January 2013 by Graham & Sibbald, Chartered Surveyors.

 

The directors are of the opinion that this represents the fair value of the investment property at 31 December 2023.

HIGHLAND DEEPHAVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,322,125
37,394
Corporation tax recoverable
9,853
-
0
Prepayments and accrued income
136,164
67,546
1,468,142
104,940
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
108,046
48,924
Amounts owed to group undertakings
238,914
691,213
Corporation tax
-
0
13,920
Other taxation and social security
1,329
1,877
Government grants
298
298
Other creditors
27,330
12,459
Accruals and deferred income
1,158,960
1,145,802
1,534,877
1,914,493
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Government grants
7,607
7,905

At 31 December 2023 the balance £7,905 (2022 - £8,203) is represented by grants received of £14,915 (2022 - £14,915), less accumulated amortisation of the grants of £7,010 (2022 - £6,712).

 

During the year £298 (2022 - £298) was released to the Statement of Comprehensive Income in line with the accounting policy.

8
Deferred taxation
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
5,924
-
Investment property
37,579
37,579
43,503
37,579
HIGHLAND DEEPHAVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Deferred taxation
(Continued)
- 9 -
2023
Movements in the year:
£
Liability at 1 January 2023
37,579
Charge to profit or loss
5,924
Liability at 31 December 2023
43,503
9
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
1,461,626 B Ordinary Shares of £1 each
1,461,626
1,461,626
12 C Ordinary Shares of £1 each
12
12
541,332 D Ordinary Shares of £1 each
541,332
541,332
2,002,970
2,002,970

The 'B' ordinary shares, 'C' ordinary shares and the 'D' ordinary shares are deemed to form separate classes of shares. These shares rank in all respects pari passu other than specific rights in relation to the appointment of directors. The voting rights are more particularly described in the articles of association.

10
Reserves

Revaluation reserve

 

The revaluation reserve relates to the revaluation of investment properties net of deferred tax liabilities in relation to the investment properties.

 

Capital redemption reserve

 

The capital redemption reserve relates to previous share capital buy backs.

 

Profit and loss account

 

The profit and loss account relates to the accumulated profits less dividends.

11
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The senior statutory auditor was Allison Gibson.
The statutory auditor was Azets Audit Services.
HIGHLAND DEEPHAVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
12
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
Within one year
30,300
30,300
Between two and five years
121,200
121,200
In over five years
1,666,500
1,696,800
1,818,000
1,848,300
HIGHLAND DEEPHAVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
13
Related party transactions

Highland-North Sea Limited

Parent company

 

During the year management charges amounting to £120,440 (2022 - £143,044) were charged by Highland-North Sea Limited.

 

During the year Highland Deephaven Limited made payments to Highland-North Sea Limited totalling £744,279 (2022 - £36,327).

 

During the year Highland Deephaven Limited received £171,540 (2022 - £233,547) from Highland-North Sea Limited.

 

The amount due to the related party as at 31 December 2023 is £238,914 (2022 - £691,213). These

transactions were under normal market conditions and there was no interest charged.

 

Highland Resources Incorporated

Ultimate parent company

 

During the year management charges of £100,000 (2022 - £100,000) were paid to Highland Resources Incorporated, the ultimate parent undertaking.

 

During the year Highland Resources Incorporated paid expenses of £796,067 on behalf of Highland Deephaven. £85,463 is in trade creditors at the year end.

14
Parent company

The directors consider Highland Resources Incorporated to be the ultimate controlling party.

 

The address of the company's registered office is:

 

700 Milam Street #1250

Houston

TX 77002

USA

15
Directors' transactions

At the year end the company owed the former directors £8,259 (2022 - £8,259) which is included in other creditors.

 

These transactions were under normal market conditions and there was no interest charged.

16
Non-audit services provided by auditor

In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

2023-12-312023-01-01false02 April 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedG R O'ConnorR R L Munro FergusonT E HillR KilpatrickM C Davis (chairman)J M HahnW J Neeson IIIfalseSC0500162023-01-012023-12-31SC050016bus:Director22023-01-012023-12-31SC050016bus:Director52023-01-012023-12-31SC050016bus:Director62023-01-012023-12-31SC050016bus:Director72023-01-012023-12-31SC050016bus:Director12023-01-012023-12-31SC050016bus:Director32023-01-012023-12-31SC050016bus:Director42023-01-012023-12-31SC050016bus:RegisteredOffice2023-01-012023-12-31SC0500162023-12-31SC0500162022-12-31SC050016core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-31SC050016core:FurnitureFittings2023-12-31SC050016core:ComputerEquipment2023-12-31SC050016core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-31SC050016core:FurnitureFittings2022-12-31SC050016core:ComputerEquipment2022-12-31SC050016core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-31SC050016core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-31SC050016core:CurrentFinancialInstruments2023-12-31SC050016core:CurrentFinancialInstruments2022-12-31SC050016core:Non-currentFinancialInstruments2023-12-31SC050016core:Non-currentFinancialInstruments2022-12-31SC050016core:ShareCapital2023-12-31SC050016core:ShareCapital2022-12-31SC050016core:RevaluationReserve2023-12-31SC050016core:RevaluationReserve2022-12-31SC050016core:CapitalRedemptionReserve2023-12-31SC050016core:CapitalRedemptionReserve2022-12-31SC050016core:RetainedEarningsAccumulatedLosses2023-12-31SC050016core:RetainedEarningsAccumulatedLosses2022-12-31SC050016core:ShareCapital2021-12-31SC050016core:RevaluationReserve2021-12-31SC050016core:CapitalRedemptionReserve2021-12-31SC050016core:RetainedEarningsAccumulatedLosses2021-12-31SC0500162021-12-31SC050016core:ShareCapitalOrdinaryShares2023-12-31SC050016core:ShareCapitalOrdinaryShares2022-12-31SC050016core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31SC0500162022-01-012022-12-31SC050016core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31SC050016core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-31SC050016core:FurnitureFittings2023-01-012023-12-31SC050016core:ComputerEquipment2023-01-012023-12-31SC050016core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-31SC050016core:FurnitureFittings2022-12-31SC050016core:ComputerEquipment2022-12-31SC0500162022-12-31SC050016core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-31SC050016core:WithinOneYear2023-12-31SC050016core:WithinOneYear2022-12-31SC050016core:BetweenTwoFiveYears2023-12-31SC050016core:BetweenTwoFiveYears2022-12-31SC050016core:MoreThanFiveYears2023-12-31SC050016core:MoreThanFiveYears2022-12-31SC050016bus:PrivateLimitedCompanyLtd2023-01-012023-12-31SC050016bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-31SC050016bus:FRS1022023-01-012023-12-31SC050016bus:Audited2023-01-012023-12-31SC050016bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP