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REGISTERED NUMBER: SC132049 (Scotland)












Unaudited Financial Statements

for the Year Ended 31 March 2024

for

Orkney Islands Property Developments Ltd

Orkney Islands Property Developments Ltd (Registered number: SC132049)






Contents of the Financial Statements
for the Year Ended 31 March 2024




Page

Company Information 1

Abridged Statement of Financial Position 2

Notes to the Financial Statements 4


Orkney Islands Property Developments Ltd

Company Information
for the Year Ended 31 March 2024







DIRECTORS: W H Barbour
A R McGinn
J F Murray
R Horrobin
R Kemp
Mrs M J M Campbell



SECRETARY: Mrs A E Whitton



REGISTERED OFFICE: 4 Gunn's Close
Kirkwall
Orkney
KW15 1DU



REGISTERED NUMBER: SC132049 (Scotland)



ACCOUNTANTS: Orcadia
Chartered Accountants
3 East Road
Kirkwall
Orkney
KW15 1HZ



BANKERS: The Royal Bank of Scotland
1 Victoria Street
Kirkwall
Orkney
KW15 1DP

Orkney Islands Property Developments Ltd (Registered number: SC132049)

Abridged Statement of Financial Position
31 March 2024

2023 2024
£    £    Notes £    £   
FIXED ASSETS
201 Tangible assets 4 -
4,350,000 Investment property 5 4,350,000
4,350,201 4,350,000

CURRENT ASSETS
9,832 Debtors 6,533
114,286 Cash at bank and in hand 121,059
124,118 127,592
CREDITORS
58,210 Amounts falling due within one year 53,997
65,908 NET CURRENT ASSETS 73,595
4,416,109 TOTAL ASSETS LESS CURRENT
LIABILITIES

4,423,595

CREDITORS
(916,834 ) Amounts falling due after more than one
year

6

(880,107

)

(332,316 ) PROVISIONS FOR LIABILITIES (332,316 )

(143,212 ) ACCRUALS AND DEFERRED INCOME (143,212 )

494,000 PENSION ASSET 10 556,000
3,517,747 NET ASSETS 3,623,960

Orkney Islands Property Developments Ltd (Registered number: SC132049)

Abridged Statement of Financial Position - continued
31 March 2024

2023 2024
£    £    Notes £    £   
RESERVES
374,360 Sinking fund reserve 9 389,640
494,000 Pension reserve 9 556,000
2,649,387 Income and expenditure account 9 2,678,320
3,517,747 3,623,960

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2024 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 surplus or deficit 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.

All the members have consented to the preparation of an abridged Statement of Financial Position for the year ended 31 March 2024 in accordance with Section 444(2A) of the Companies Act 2006.

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 16 August 2024 and were signed on its behalf by:





W H Barbour - Director


Orkney Islands Property Developments Ltd (Registered number: SC132049)

Notes to the Financial Statements
for the Year Ended 31 March 2024

1. STATUTORY INFORMATION

Orkney Islands Property Developments Ltd is a private company, limited by guarantee , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


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.

Turnover
Turnover consists of rental income, exclusive of Value Added Tax, arising in the United Kingdom.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery etc - 25% on cost

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in surplus or deficit.

Investment properties are included in the balance sheet at their fair value.

Full valuations are made by independent professional qualified valuers every five years and in the intervening years, these valuations are updated by directors with the assistance of independent professional advice as required.

Orkney Islands Property Developments Ltd (Registered number: SC132049)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' 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 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 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 re 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.

Pension costs and other post-retirement benefits
The pension scheme liabilities are measured using a projected unit method. The pension scheme assets are valued at market rate. The pension scheme surplus (to the extent that it can be recovered)/deficit is recognised in full on the balance sheet.

Grants
Grants from The Scottish Government which relate to specific capital expenditure, are deducted from the cost of fixed assets in a manner similar to the accounting treatment adopted by Housing Associations.

Grants of a Revenue nature are credited to the profit and loss account when received.

Government grants received are treated as deferred credits until the expiry of the obligation period.

Orkney Islands Property Developments Ltd (Registered number: SC132049)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

2. ACCOUNTING POLICIES - continued

Sinking fund reserve
This provision within Reserves has been established for future major repairs to the Glaitness Scheme. Transfers to this reserve are based on 2% per annum of the original project cost.

Maintenance fund reserve
This provision within Reserves has been established for the ongoing maintenance requirements of Glaitness. Transfers to this reserve are based on £344 per property per annum at Glaitness.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 4 (2023 - 2 ) .

4. TANGIBLE FIXED ASSETS
Totals
£   
COST
At 1 April 2023
and 31 March 2024 67,035
DEPRECIATION
At 1 April 2023 66,834
Charge for year 201
At 31 March 2024 67,035
NET BOOK VALUE
At 31 March 2024 -
At 31 March 2023 201

5. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 April 2023
and 31 March 2024 4,350,000
NET BOOK VALUE
At 31 March 2024 4,350,000
At 31 March 2023 4,350,000

Orkney Islands Property Developments Ltd (Registered number: SC132049)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

5. INVESTMENT PROPERTY - continued

Fair value at 31 March 2024 is represented by:
£   
Valuation in 1995 4,810
Valuation in 1996 1,442
Valuation in 1997 2,683
Valuation in 2002 229,846
Valuation in 2007 1,041,562
Valuation in 2011 790,000
Valuation in 2016 395,359
Valuation in 2020 255,000
Cost 1,629,298
4,350,000

The Investment Properties were valued by Billy Groundwater AssocRICS of Orkney Surveying Services on 5 November 2020 at fair value.

6. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
FIVE YEARS
2024 2023
£    £   
Repayable by instalments
Other loans 200,000 200,000

7. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Other loans 36,727 36,727

Amounts falling due between two and five years:
Other loans 680,107 716,834

Amounts falling due in more than five years:

Repayable by instalments
Other loans 200,000 200,000

Orkney Islands Property Developments Ltd (Registered number: SC132049)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

8. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Other loans 916,834 953,561

Scottish Homes, The Scottish Ministers and Orkney Islands Council hold standard securities over the properties.

9. RESERVES
Income
and Sinking Maintenance
expenditure fund Pension Fund
Totals account reserve reserve Reserve
£    £    £    £    £   

At 1 April 2023 3,517,747 2,649,387 374,360 494,000 -
Surplus for the year 52,469 52,469
Movements 62,000 (23,536 ) 15,280 62,000 8,256
Expenditure in Year (8,256 ) - - - (8,256 )
At 31 March 2024 3,623,960 2,678,320 389,640 556,000 -

10. EMPLOYEE BENEFIT OBLIGATIONS

The company's employees are eligible to join a Local Government pension scheme, which is a defined benefit statutory scheme. The most recent full actuarial valuation was on 31 March 2020 and was carried out by a qualified independent actuary. An updated valuation has been prepared at 31 March 2024 for the purposes of FRS102 disclosure. Contributions to the scheme are determined by the actuary on the basis of triennial valuations. The estimated Employer's contributions for the year to 31 March 2025 will be approximately £11,000.

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. It was assumed that salary increases would average 3.3% per year and that present and future pensions would increase at the rate of 2.8% per year.

The pension charge for the year was £12,081. The contributions of the company will be 17% and employees will contribute between 5.7% and 6% depending on salary.

Orkney Islands Property Developments Ltd (Registered number: SC132049)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

10. EMPLOYEE BENEFIT OBLIGATIONS - continued

The amounts recognised in the balance sheet are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Present value of funded obligations (1,077,000 ) (1,068,000 )
Fair value of plan assets 1,633,000 1,562,000
556,000 494,000
Present value of unfunded obligations - -
Surplus 556,000 494,000
Net asset 556,000 494,000

The amounts recognised in surplus or deficit are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Current service cost 19,000 32,000
Net interest from net defined benefit
asset/liability

(23,000

)

(6,000

)
Past service cost - -
(4,000 ) 26,000

Actual return on plan assets 72,000 46,000

Orkney Islands Property Developments Ltd (Registered number: SC132049)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

10. EMPLOYEE BENEFIT OBLIGATIONS - continued

Changes in the present value of the defined benefit obligation are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Opening defined benefit obligation 1,068,000 1,488,000
Current service cost 19,000 32,000
Contributions by scheme participants 4,000 4,000
Interest cost 49,000 40,000
Benefits paid (98,000 ) (43,000 )
Remeasurements:
Actuarial (gains)/losses from changes in
demographic assumptions

(23,000

)

(15,000

)
Actuarial (gains)/losses from changes in
financial assumptions

(30,000

)

(526,000

)
Oblig other remeasurement 88,000 88,000
1,077,000 1,068,000

Changes in the fair value of scheme assets are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Opening fair value of scheme assets 1,562,000 1,704,000
Contributions by employer 12,000 12,000
Contributions by scheme participants 4,000 4,000
Expected return 72,000 46,000
Benefits paid (98,000 ) (43,000 )
Return on plan assets (excluding interest
income)

81,000

(161,000

)
1,633,000 1,562,000

Orkney Islands Property Developments Ltd (Registered number: SC132049)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

10. EMPLOYEE BENEFIT OBLIGATIONS - continued

The amounts recognised in other comprehensive income are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Actuarial (gains)/losses from changes in
demographic assumptions

23,000

15,000
Actuarial (gains)/losses from changes in
financial assumptions

30,000

526,000
Oblig other remeasurement (88,000 ) (88,000 )
Return on plan assets (excluding interest
income)

81,000

(161,000

)
46,000 292,000

The major categories of scheme assets as a percentage of total scheme assets are as follows:

Defined benefit
pension plans
2024 2023
Equities 84% 87%
Bonds 6% 7%
Property 8% 5%
Cash 2% 1%
100% 100%

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2024 2023
Discount rate 4.80% 4.75%
Future salary increases 3.30% 3.45%
Future pension increases 2.80% 2.95%


Mortality Assumptions20242023
Assumed life expectations on retirement at age 65:YearsYears
Retiring today
- Males20.920.9
- Females25.123.4
Retiring in 20 years
- Males21.722.5
- Females26.125.6