Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-312023-12-31No description of principal activitytruefalse2023-01-01truefalse SC150314 2023-01-01 2023-12-31 SC150314 2022-01-01 2022-12-31 SC150314 2023-12-31 SC150314 2022-12-31 SC150314 2022-01-01 SC150314 1 2022-01-01 2022-12-31 SC150314 d:CompanySecretary1 2023-01-01 2023-12-31 SC150314 d:Director1 2023-01-01 2023-12-31 SC150314 d:Director2 2023-01-01 2023-12-31 SC150314 d:RegisteredOffice 2023-01-01 2023-12-31 SC150314 e:FurnitureFittings 2023-01-01 2023-12-31 SC150314 e:Goodwill 2023-01-01 2023-12-31 SC150314 e:CurrentFinancialInstruments 2023-12-31 SC150314 e:CurrentFinancialInstruments 2022-12-31 SC150314 e:Non-currentFinancialInstruments 2023-12-31 SC150314 e:Non-currentFinancialInstruments 2022-12-31 SC150314 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 SC150314 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 SC150314 e:Non-currentFinancialInstruments e:AfterOneYear 2023-12-31 SC150314 e:Non-currentFinancialInstruments e:AfterOneYear 2022-12-31 SC150314 e:ShareCapital 2023-12-31 SC150314 e:ShareCapital 2022-12-31 SC150314 e:ShareCapital 2022-01-01 SC150314 e:SharePremium 2023-01-01 2023-12-31 SC150314 e:SharePremium 2023-12-31 SC150314 e:SharePremium 2022-12-31 SC150314 e:SharePremium 2022-01-01 SC150314 e:SharePremium 1 2022-01-01 2022-12-31 SC150314 e:CapitalRedemptionReserve 2023-01-01 2023-12-31 SC150314 e:CapitalRedemptionReserve 2023-12-31 SC150314 e:CapitalRedemptionReserve 2022-12-31 SC150314 e:CapitalRedemptionReserve 2022-01-01 SC150314 e:CapitalRedemptionReserve 1 2022-01-01 2022-12-31 SC150314 e:RevaluationReserve 2023-01-01 2023-12-31 SC150314 e:RevaluationReserve 2023-12-31 SC150314 e:RevaluationReserve 2022-12-31 SC150314 e:RevaluationReserve 2022-01-01 SC150314 e:RevaluationReserve 1 2022-01-01 2022-12-31 SC150314 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 SC150314 e:RetainedEarningsAccumulatedLosses 2023-12-31 SC150314 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 SC150314 e:RetainedEarningsAccumulatedLosses 2022-12-31 SC150314 e:RetainedEarningsAccumulatedLosses 2022-01-01 SC150314 e:RetainedEarningsAccumulatedLosses 1 2022-01-01 2022-12-31 SC150314 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-12-31 SC150314 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-12-31 SC150314 e:FinancialLiabilitiesFairValueThroughProfitOrLoss e:UnlistedNon-exchangeTraded 2023-12-31 SC150314 e:FinancialLiabilitiesFairValueThroughProfitOrLoss e:UnlistedNon-exchangeTraded 2022-12-31 SC150314 d:OrdinaryShareClass1 2023-01-01 2023-12-31 SC150314 d:OrdinaryShareClass1 2023-12-31 SC150314 d:OrdinaryShareClass1 2022-12-31 SC150314 d:FRS102 2023-01-01 2023-12-31 SC150314 d:Audited 2023-01-01 2023-12-31 SC150314 d:FullAccounts 2023-01-01 2023-12-31 SC150314 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 SC150314 e:Subsidiary1 2023-01-01 2023-12-31 SC150314 e:Subsidiary1 1 2023-01-01 2023-12-31 SC150314 e:Subsidiary2 2023-01-01 2023-12-31 SC150314 e:Subsidiary2 1 2023-01-01 2023-12-31 SC150314 e:Subsidiary4 2023-01-01 2023-12-31 SC150314 e:Subsidiary4 1 2023-01-01 2023-12-31 SC150314 e:Subsidiary5 2023-01-01 2023-12-31 SC150314 e:Subsidiary5 1 2023-01-01 2023-12-31 SC150314 e:Subsidiary7 2023-01-01 2023-12-31 SC150314 e:Subsidiary7 1 2023-01-01 2023-12-31 SC150314 e:Subsidiary8 2023-01-01 2023-12-31 SC150314 e:Subsidiary8 1 2023-01-01 2023-12-31 SC150314 e:Subsidiary10 2023-01-01 2023-12-31 SC150314 e:Subsidiary10 1 2023-01-01 2023-12-31 SC150314 e:Subsidiary11 2023-01-01 2023-12-31 SC150314 e:Subsidiary11 1 2023-01-01 2023-12-31 SC150314 e:Subsidiary13 2023-01-01 2023-12-31 SC150314 e:Subsidiary13 1 2023-01-01 2023-12-31 SC150314 e:Subsidiary14 2023-01-01 2023-12-31 SC150314 e:Subsidiary14 1 2023-01-01 2023-12-31 SC150314 e:Subsidiary15 2023-01-01 2023-12-31 SC150314 e:Subsidiary15 1 2023-01-01 2023-12-31 SC150314 e:Subsidiary16 2023-01-01 2023-12-31 SC150314 e:Subsidiary16 1 2023-01-01 2023-12-31 SC150314 e:Subsidiary17 2023-01-01 2023-12-31 SC150314 e:Subsidiary17 1 2023-01-01 2023-12-31 SC150314 d:Consolidated 2023-12-31 SC150314 d:ConsolidatedGroupCompanyAccounts 2023-01-01 2023-12-31 SC150314 2 2023-01-01 2023-12-31 SC150314 4 2023-01-01 2023-12-31 SC150314 5 2023-01-01 2023-12-31 SC150314 6 2023-01-01 2023-12-31 SC150314 e:ShareCapital 1 2022-01-01 2022-12-31 xbrli:shares iso4217:GBP xbrli:pure
Registered number: SC150314













DRUM DEVELOPMENT GROUP LIMITED






DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

 
DRUM DEVELOPMENT GROUP LIMITED
 

COMPANY INFORMATION


Directors
G M Bone 
S C Oag 




Company secretary
Brodies Secretarial Services Limited



Registered number
SC150314



Registered office
12 Rubislaw Terrace Lane

Aberdeen

AB10 1XF




Independent auditors
Anderson Anderson and Brown Audit LLP

Kingshill View

Prime Four Business Park

Kingswells

Aberdeen

AB15 8PU





 
DRUM DEVELOPMENT GROUP LIMITED
 

CONTENTS



Page
Group strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditors' report
6 - 9
Consolidated statement of comprehensive income
10
Consolidated balance sheet
11 - 12
Company balance sheet
13
Consolidated statement of changes in equity
14 - 15
Company statement of changes in equity
16
Consolidated statement of cash flows
17
Consolidated analysis of net debt
18
Notes to the financial statements
19 - 35


 
DRUM DEVELOPMENT GROUP LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their report and the consolidated financial statements for the year ended 31 December 2023.
The principal activity of the Group is the development of commercial and residential properties. 

Business review
 
The Group is an award-winning property development business, based in Aberdeen, Edinburgh, Glasgow and London, with a track record of successful trading and growth. 
The Group is active throughout the UK and engaged in a broad range of projects covering a variety of sectors including business space, retail, industrial, leisure and residential.  Activity in recent years has focused on transformational city centre regeneration and urban expansion via the assembly and construction of large-scale mixed-use schemes. 
Business highlights
The Group recently completed the first two phases of a major regeneration project at Candleriggs Square in  Glasgow, whilst continuing to deliver new homes for the institutional private rented sector across Glasgow and Edinburgh.  The Group continued to make significant progress working with national and local government, community and infrastructure stakeholders via the submission of a major planning application for a significant residential led development on its strategic land-holding to the West of the capital city and secured another site as part of its strategic expansion into regional England.  
The Group’s current activities and committed work in progress will contribute significantly to the built environment in Scotland over the next few years, which in turn will be complemented with significant activity throughout the UK as the Group continues to expand and secures additional sites. 
Operational performance
The Group has generated a profit before tax for the year of £3.2m which is reflective of the stage of current projects within the development cycle and the resultant phased completions of the major developments highlighted above. The directors can confirm that the cash balances held within the Group ensure that the Group is well placed to continue the expansion of its geographical footprint and take advantage of new opportunities throughout the UK Regions.
 

Page 1
 

 
DRUM DEVELOPMENT GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
The principal risks and uncertainties affecting the Group are varied and include the following:
Funding risk
The Group has seen positive cashflows in recent years and has a healthy cash balance. The Group have funding facilities in place for specific developments and have access to further facilities, if required.  Based on current cash balances and trading forecast the directors have an expectation that the facilities available will be sufficient for the Group for the foreseeable future.
Market and asset values 
The Group continue to review the carrying value of its projects and investments.
Construction and development risk
The Group places considerable emphasis on the quality of its design teams, and on its project management and cost consultants.  The Group also forges strong working relationships with contracting firms and continuously carries out project diligence to minimise construction and development risk.  The Group also maintains risk registers, often in conjunction with clients, to monitor the macro-economic factors affecting the whole of the construction and development industry and wider economy.

Financial key performance indicators
 
The key performance indicator used by the directors is the cash flow and profit margin on individual developments. In addition, consolidated cashflow forecasts are regularly reviewed to ensure ongoing compliance. 

Directors' statement of compliance with duty to promote the success of the Group
 
Section 172 (1) (a) to (f) of the Companies Act 2006 requires the company directors to consider, both individually and collectively, that they have acted in the way that they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole in the decisions taken during the current year.
When making these decisions the directors have given regard to:
• The likely consequences of any decisions on the long-term;
• The interests of the company’s employees
• The need to foster the company’s business relationships with suppliers, customers and others
• The impact of the company’s operations on the community and environment
• The desirability of the company maintaining a reputation for high standards of business conduct and
• The need to act fairly between shareholders of the company
The majority of stakeholder engagement is carried out by the Board of directors who meet on a regular basis.The board considers and discusses information from across the organisation to help it understand the impact of the company’s operations, and the interests and views of our key stakeholders. It also reviews strategy, financial and operational performance as well as information covering areas such as key risks, and legal and regulatory compliance. As a result of these activities, the Board has an overview of engagement with stakeholders, and other relevant factors, which enables the directors to comply with their legal duty under section 172 of the Companies Act 2006.

Page 2
 

 
DRUM DEVELOPMENT GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


This report was approved by the board and signed on its behalf.



S C Oag
Director

Date: 23 September 2024

Page 3
 

 
DRUM DEVELOPMENT GROUP LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Results and dividends

The profit for the year, after taxation, amounted to £2,291,027 (2022 - £5,097,998).

Directors

The directors who served during the year were:

G M Bone 
S C Oag 

Future developments

The directors expect the level of activity to continue across all of the Group Companies.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group is exempt from the requirements to report greenhouse gas (‘GHG’) emissions in the Directors’ report, in line with the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 as the Group qualifies as a low energy user.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as that director is aware, there is no relevant audit information of which the company's auditors are unaware, and
that director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsAnderson Anderson and Brown Audit LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





S C Oag
Director

Date: 23 September 2024

Page 4
 

 
DRUM DEVELOPMENT GROUP LIMITED
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5
 

 
DRUM DEVELOPMENT GROUP LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DRUM DEVELOPMENT GROUP LIMITED
 

Opinion


We have audited the financial statements of Drum Development Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Group Statement of comprehensive income, the Group and Company Balance sheets, the Group Statement of cash flows, the Group and Company Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 directors' 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 Group's or the parent 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 directors with respect to going concern are described in the relevant sections of this report.


Page 6
 

 
DRUM DEVELOPMENT GROUP LIMITED

 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DRUM DEVELOPMENT GROUP LIMITED (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' report thereon.  The directors are 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 5, the directors are 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 directors determine 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 directors are responsible for assessing the Group's and the parent 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 directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 7
 

 
DRUM DEVELOPMENT GROUP LIMITED

 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DRUM DEVELOPMENT GROUP LIMITED (CONTINUED)

Auditors' 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 Auditors' 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 Group financial statements.


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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The laws and regulations we considered in this context were the Companies Act 2006 and Taxation legislation.
We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:

Management override of controls to manipulate the company’s key performance indicators to meet targets
Timing and completeness of revenue recognition
Management judgement applied in calculating provisions
Compliance with relevant laws and regulations which directly impact the financial statements and those that the company needs to comply with for the purpose of trading

Our audit procedures to respond to these risks included:

Testing of journal entries and other adjustments for appropriateness
Reviewing a sample of sales transactions on contracts to confirm recognition appropriate
Evaluating the business rationale of significant transactions outside the normal course of business
Reviewing judgments made by management in their calculation of accounting estimates for potential management bias
Enquiries of management about litigation and claims and inspection of relevant correspondence
Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non-compliance with laws and regulations
Reviewing minutes of meetings of those charged with governance to identify any matters indicating actual or potential fraud

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of 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.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Page 8
 

 
DRUM DEVELOPMENT GROUP LIMITED

 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DRUM DEVELOPMENT GROUP LIMITED (CONTINUED)

Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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 members, as a body, for our audit work, for this report, or for the opinions we have formed.





Christopher Masson (Senior statutory auditor)
  
for and on behalf of
Anderson Anderson and Brown Audit LLP
 
Statutory Auditor
  
Kingshill View
Prime Four Business Park
Kingswells
Aberdeen
AB15 8PU

23 September 2024
Page 9
 

 
DRUM DEVELOPMENT GROUP LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022
Note
£
£

  

Turnover
 4 
42,448,628
50,027,020

Cost of sales
  
(38,263,074)
(44,420,017)

Gross profit
  
4,185,554
5,607,003

Administrative expenses
  
(1,721,757)
(3,444,251)

Gain on sale of investments
 13 
-
1,052,588

Gain on sale of investment property
 5 
175,000
-

Fair value movements
 14 
-
3,495,846

Operating profit
  
2,638,797
6,711,186

Interest receivable and similar income
 8 
862,502
-

Interest payable and similar expenses
 9 
(254,377)
(41,644)

Profit before taxation
  
3,246,922
6,669,542

Tax on profit
 10 
(955,895)
(1,571,544)

Profit for the financial year
  
2,291,027
5,097,998

Profit for the year attributable to:
  

Owners of the parent Company
  
2,291,027
5,097,998

  
2,291,027
5,097,998

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 19 to 35 form part of these financial statements.

Page 10
 

 
DRUM DEVELOPMENT GROUP LIMITED

REGISTERED NUMBER:SC150314

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 12 
213,234
1,310,290

Investments
 13 
300
300

Investment property
 14 
3,065,000
8,765,000

  
3,278,534
10,075,590

Current assets
  

Stocks
 15 
4,366,606
11,812,844

Debtors: amounts falling due within one year
 16 
9,415,419
17,096,733

Cash at bank and in hand
 17 
26,459,202
37,094,378

  
40,241,227
66,003,955

Creditors: amounts falling due within one year
 18 
(6,022,808)
(21,848,315)

Net current assets
  
 
 
34,218,419
 
 
44,155,640

Total assets less current liabilities
  
37,496,953
54,231,230

Creditors: amounts falling due after more than one year
 19 
-
(19,025,447)

Provisions for liabilities
  

Deferred taxation
 22 
(260,117)
(259,974)

  
 
 
(260,117)
 
 
(259,974)

Net assets
  
37,236,836
34,945,809


Capital and reserves
  

Called up share capital 
 23 
21,430
21,430

Share premium account
 24 
6,189
6,189

Revaluation reserve
 24 
787,091
4,282,937

Capital redemption reserve
 24 
136,857
136,857

Profit and loss account
 24 
36,285,269
30,498,396

Equity attributable to owners of the parent Company
  
37,236,836
34,945,809

  
37,236,836
34,945,809


Page 11
 

 
DRUM DEVELOPMENT GROUP LIMITED

REGISTERED NUMBER:SC150314

CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




S C Oag
Director

Date: 23 September 2024

Page 12
 

 
DRUM DEVELOPMENT GROUP LIMITED

REGISTERED NUMBER:SC150314

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Fixed asset investments
 13 
1,977,124
10,688,209

  
1,977,124
10,688,209

Current assets
  

Debtors: amounts falling due within one year
 16 
10,863,819
10,768,471

Cash at bank and in hand
 17 
26,004,906
32,901,025

  
36,868,725
43,669,496

Creditors: amounts falling due within one year
 18 
(1,523,510)
(2,440,960)

Net current assets
  
 
 
35,345,215
 
 
41,228,536

Total assets less current liabilities
  
37,322,339
51,916,745

  

Creditors: amounts falling due after more than one year
 19 
-
(16,885,447)

  

Net assets
  
37,322,339
35,031,298


Capital and reserves
  

Called up share capital 
 23 
21,430
21,430

Share premium account
 24 
6,189
6,189

Capital redemption reserve
 24 
136,857
136,857

Profit and loss account
 24 
37,157,863
34,866,822

  
37,322,339
35,031,298


The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £2,291,041 (2022 - £5,183,487).
The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




S C Oag
Director

Date: 23 September 2024

Page 13
 

 

DRUM DEVELOPMENT GROUP LIMITED
 
 
 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023



Called up share capital
Share premium account
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity


£
£
£
£
£
£


At 1 January 2023
21,430
6,189
136,857
4,282,937
30,498,396
34,945,809



Comprehensive income for the year


Profit for the year
-
-
-
-
2,291,027
2,291,027


Transfer to/from profit and loss account
-
-
-
(3,495,846)
3,495,846
-



At 31 December 2023
21,430
6,189
136,857
787,091
36,285,269
37,236,836



The notes on pages 19 to 35 form part of these financial statements.

Page 14 
 

 

DRUM DEVELOPMENT GROUP LIMITED
 
 
 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022



Called up share capital
Share premium account
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity


£
£
£
£
£
£


At 1 January 2022
21,430
6,189
136,857
850,058
28,833,277
29,847,811



Comprehensive income for the year


Profit for the year
-
-
-
-
5,097,998
5,097,998


Transfer to/from profit and loss account
-
-
-
3,432,879
(3,432,879)
-



At 31 December 2022
21,430
6,189
136,857
4,282,937
30,498,396
34,945,809



The notes on pages 19 to 35 form part of these financial statements.

Page 15 
 

 

DRUM DEVELOPMENT GROUP LIMITED
 
 
 


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023



Called up share capital
Share premium account
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity


£
£
£
£
£
£



At 1 January 2022
21,430
6,189
136,857
808,441
28,874,894
29,847,811





Profit for the year
-
-
-
-
5,183,487
5,183,487


Transfer to/from Profit and Loss account
-
-
-
(808,441)
808,441
-





At 1 January 2023
21,430
6,189
136,857
-
34,866,822
35,031,298





Profit for the year
-
-
-
-
2,291,041
2,291,041



At 31 December 2023
21,430
6,189
136,857
-
37,157,863
37,322,339



Page 16 
 

 
DRUM DEVELOPMENT GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
2,291,027
5,097,998

Adjustments for:

Amortisation of intangible assets
872,556
2,148,416

Interest paid
254,377
41,644

Interest received
(862,502)
-

Taxation charge
955,895
1,571,544

Decrease in stocks
7,446,238
1,722,933

Decrease in debtors
7,681,313
12,895,606

(Decrease)/increase in creditors
(24,655,457)
730,370

Net fair value losses/(gains) recognised in P&L
-
(3,495,846)

Corporation tax paid
(1,500,238)
(2,641,902)

Gain on sale of investments
(175,000)
(1,052,588)

Net cash generated from operating activities

(7,691,791)
17,018,175


Cash flows from investing activities

Purchase of investment properties
-
(275,000)

Sale of investment properties
5,875,000
-

Purchase of unlisted and other investments
-
(1,137,447)

Interest received
862,502
-

Proceeds from sale of subsidiary
-
120,000

Net cash from investing activities

6,737,502
(1,292,447)

Cash flows from financing activities

Repayment of bank loans
(2,300,000)
(160,000)

Other new loans
-
4,126,888

Repayment of other loans
(7,126,510)
-

Interest paid
(254,377)
(41,644)

Cash on disposal of subsidiary
-
(23,560)

Net cash used in financing activities
(9,680,887)
3,901,684

Net (decrease)/increase in cash and cash equivalents
(10,635,176)
19,627,412

Cash and cash equivalents at beginning of year
37,094,378
17,466,966

Cash and cash equivalents at the end of year
26,459,202
37,094,378


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
26,459,202
37,094,378

26,459,202
37,094,378


The notes on pages 19 to 35 form part of these financial statements.

Page 17
 

 
DRUM DEVELOPMENT GROUP LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

37,094,378

(10,635,176)

26,459,202

Debt due after 1 year

(2,140,000)

2,140,000

-

Debt due within 1 year

(7,286,510)

7,286,510

-


27,667,868
(1,208,666)
26,459,202

The notes on pages 19 to 35 form part of these financial statements.

Page 18
 

 
DRUM DEVELOPMENT GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Drum Development Group Limited is a limited liability company incorporated in Scotland whose registered office is 12 Rubislaw Terrace Lane, Aberdeen, AB10 1XF. The principal activities of the Group is that of property development.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The directors, having made due and careful enquiry, are of the opinion that the Group and Company has adequate working capital to execute its operations over the next 12 months. The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the Group and Company has adequate resources to continue in operational existence for the foreseeable future. 
 
As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.

Page 19
 

 
DRUM DEVELOPMENT GROUP LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

Turnover represents the gross income of the Group for the year from construction contracts and developments, sale of land and properties, rental income and project management services. The amount excludes any value added tax which may be applicable to these transactions.
Revenue and profit is recognised on any upfront sale of land.  Revenue arising on long term contracts are recognised over time.  Revenue and costs are recognised over time with reference to the stage of completion of the contract activity at the balance sheet date where the outcome of a long term contract can be estimated reliably.  This is normally measured by surveys of work performed to date.
Where the long term contracts are at an early stage of completion or cannot be estimated reliably, contract revenue where recoverable is recognised to the extent of the contract costs incurred.  The costs associated with fulfilling a contract are recognised as expenses in the period in which they are incurred.  When it is probable that total contract costs will exceed total contract revenue, the loss is recognised as an expense immediately.
Revenue and profit is recognised on residential developments at legal completion.  

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 20
 

 
DRUM DEVELOPMENT GROUP LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.8

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 21
 

 
DRUM DEVELOPMENT GROUP LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.9
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings
-
25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Valuation of investments

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at net asset value.

 
2.11

Associates and joint ventures

An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the group to undertake an economic activity that is subject to joint control.
An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated statement of comprehensive income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated balance sheet, the interests in associated undertakings are shown as the group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
Any premium on acquisition is dealt with in accordance with the goodwill policy.

Page 22
 

 
DRUM DEVELOPMENT GROUP LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.13

Investment property

Investment property is carried at fair value determined annually by external valuers and derived 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 profit or loss.

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.15

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.

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 23
 

 
DRUM DEVELOPMENT GROUP LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.18

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.

 
2.19

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.20

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

Page 24
 

 
DRUM DEVELOPMENT GROUP LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.21

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements, requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Statement of financial position date and the amounts reported during the year for revenue and costs. However, the nature of estimation means that actual outcomes could differ from those estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The following judgements and estimates have had the most significant impact on amounts recognised in the financial statements:
Taxation
The group establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience with previous tax authorities and differing interpretations of tax regulations by the group and the tax authority.
Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. 
Revenue recognition
Where management are able to reliably measure the outcome of long term contracts, revenue and costs  are recognised over time with reference to the stage of completion of the contract activity at the balance sheet date.
Where the long term contracts are at an early stage of completion or cannot be estimated reliably by management, revenue where recoverable is recognised to the extent of the contract costs incurred.  The costs associated with fulfilling a contract are recognised as expenses in the period in which they are incurred.  Where management identify it is probable that total contract costs will exceed total contract revenue, the loss is recognised as an expense immediately.


4.


Turnover

All turnover has arisen from the rendering of services relating to property rental and development.

All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Profit on disposal of investment property
175,000
-

175,000
-


Page 25
 

 
DRUM DEVELOPMENT GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors and their associates:


2023
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the consolidated and parent Company's financial statements
4,050
3,780

Fees payable to the Company's auditors and their associates in connection with the Group's subsidiaries in respect of:

Audit-related assurance services
35,850
32,940

All other services
23,270
21,555


7.


Employees

The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Directors
6
5


8.


Interest receivable

2023
2022
£
£


Bank interest receivable
862,502
-

862,502
-


9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
117,995
93,863

Other loan interest payable
88,424
-

Other interest payable
47,958
(52,219)

254,377
41,644

Page 26
 

 
DRUM DEVELOPMENT GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
963,882
1,508,424

Adjustments in respect of previous periods
(8,130)
-


955,752
1,508,424


Total current tax
955,752
1,508,424

Deferred tax


Origination and reversal of timing differences
143
153

Changes to tax rates
-
62,967

Total deferred tax
143
63,120


Taxation on profit on ordinary activities
955,895
1,571,544

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
3,246,922
6,669,542


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
769,898
1,267,213

Effects of:


Expenses not deductible for tax purposes
12,686
(3,035)

Fixed asset differences
-
(181,211)

Effect of different tax rates - deferred taxation
431
64,717

Deferred taxation not recognised
(7,139)
(7,139)

Non-taxable amortisation of goodwill
205,222
408,199

Non-taxable income
(41,241)
-

Capital gains
24,168
22,800

Adjustments in respect of prior years
(8,130)
-

Total tax charge for the year
955,895
1,571,544


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 27
 

 
DRUM DEVELOPMENT GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £2,291,041 (2022 - £5,183,487).


12.


Intangible assets

Group 





Goodwill

£



Cost


At 1 January 2023
11,073,208



At 31 December 2023

11,073,208



Amortisation


At 1 January 2023
9,762,918


Charge for the year on owned assets
872,556


On revalued assets
224,500



At 31 December 2023

10,859,974



Net book value



At 31 December 2023
213,234



At 31 December 2022
1,310,290

Goodwill amortisation is included within administrative expenses in the Statement of Comprehensive Income.




13.


Fixed asset investments

Group





Investment in associates

£



Cost or valuation


At 1 January 2023
300



At 31 December 2023
300




Page 28
 

 
DRUM DEVELOPMENT GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
10,688,209


Disposals
(236,101)


Revaluations
(8,474,984)



At 31 December 2023
1,977,124





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Drum Capital Projects Limited
Ordinary
100%
Drum Kingswells 6 Limited
Ordinary
100%
Thistlestone Limited
Ordinary
100%
Drum (G3 Square) Limited
Ordinary
100%
Drum Buchanan Wharf 1 Limited
Ordinary
100%
Drum Buchanan Wharf 2 Limited
Ordinary
100%
Drum Buchanan Wharf 4 Limited
Ordinary
100%
Drum Buchanan Wharf 5 Limited
Ordinary
100%
GM Mackenzie Limited
Ordinary
100%
CAMVO 123 Limited
Ordinary
100%
Drum Candleriggs Limited
Ordinary
100%
Drum (Minerva Way) Limited (formerly CAMVO140 Limited)
Ordinary
100%
Drum (Leeds) Ltd
Ordinary
100%

The registered office of all the subsidiaries is 12 Rubislaw Terrace Lane, Aberdeen, AB10 1XF with the exception of CAMVO 123 Limited, Drum (Minerva Way) Limited and GM Mackenzie Limited whose registered office is C/O Brodies LLP, 110 Queen Street, Glasgow, Scotland, G1 3BX and Drum (Leeds) Limited whose registered office C/O Brodies LLP, 90 Bartholomew Close, London EC1A 7BN.
During the year the group and company disposed of its shareholding in Drum Kingswells 8 Limited, Rose Paul Limited and Collab Construction Limited (formerly Drum Buchanan Wharf 3 Limited).

Page 29
 

 
DRUM DEVELOPMENT GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Investment property

Group


Freehold investment property

£



Valuation


At 1 January 2023
8,765,000


Disposals
(5,700,000)



At 31 December 2023
3,065,000

The properties held at the end of the year were either revalued during 2021 by external qualified chartered surveyors or valued based on the purchase price.  The directors believe these valuations reflect the current market value and climate as at 31 December 2023.





If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2023
2022
£
£


Historic cost
2,015,546
4,219,700

2,015,546
4,219,700




15.


Stocks

Group
Group
2023
2022
£
£

Work in progress
4,366,606
11,812,844

4,366,606
11,812,844


Page 30
 

 
DRUM DEVELOPMENT GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
938,864
3,598,864
-
-

Amounts owed by group undertakings
-
-
9,633,619
6,971,165

Amounts owed by related parties
4,459,700
6,998,744
1,230,000
3,796,851

Other debtors
200
455
200
455

Prepayments and accrued income
3,645,644
5,700,773
-
-

Tax recoverable
371,011
797,897
-
-

9,415,419
17,096,733
10,863,819
10,768,471



17.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
26,459,202
37,094,378
26,004,906
32,901,025

26,459,202
37,094,378
26,004,906
32,901,025



18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
-
160,000
-
-

Other loans
-
7,126,510
-
-

Trade creditors
577,162
5,062,884
1,644
6,600

Amounts owed to group undertakings
-
-
1,100,000
1,700,000

Corporation tax
963,882
1,508,368
190,680
8,645

Other taxation and social security
22,444
1,139,596
-
-

Other creditors
601,033
2,597,436
213,233
709,635

Accruals and deferred income
3,858,287
4,253,521
17,953
16,080

6,022,808
21,848,315
1,523,510
2,440,960




Page 31
 

 
DRUM DEVELOPMENT GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
-
2,140,000
-
-

Other creditors
-
16,885,447
-
16,885,447

-
19,025,447
-
16,885,447


The bank loan is secured by a standard security over the property and by a bond and floating charge over the assets of Drum Kingswells 6 Limited.  The full facility has been repaid in the year ended 31 December 2023 and the security has been discharged post year end.
The other creditor balance in the prior year relates to amounts owed to the principal shareholder Graeme Bone. The loan was unsecured and non interest bearing and was repaid in full during the year.  


20.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2023
2022
£
£

Amounts falling due within one year

Bank loans
-
160,000

Other loans
-
7,126,510


-
7,286,510

Amounts falling due 1-2 years

Bank loans
-
160,000


-
160,000

Amounts falling due 2-5 years

Bank loans
-
1,980,000


-
1,980,000


-
9,426,510


Page 32
 

 
DRUM DEVELOPMENT GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
26,459,202
37,094,378
-
32,901,025


Financial liabilities

Other financial liabilities measured at fair value through profit or loss
-
2,300,000
-
-


Financial assets measured at fair value through profit or loss comprise of bank balances.


Other financial liabilities measured at fair value through profit and loss comprise bank loans and overdraft.


22.


Deferred taxation


Group



2023


£






At beginning of year
259,974


Charged to profit or loss
143



At end of year
260,117

Page 33
 

 
DRUM DEVELOPMENT GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
22.Deferred taxation (continued)

Company


2023





At beginning of year
-


Charged to profit or loss
-



At end of year
-



The provision for deferred taxation is made up as follows:

Group
Group
2023
2022
£
£

Fixed asset differences
(2,246)
(2,389)

Potential capital gain on revaluation of investment properties
262,363
262,363

260,117
259,974


23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



21,430 (2022 - 21,430) Ordinary shares of £1.00 each
21,430
21,430



24.


Reserves

Share premium account

This reserve records the amount above the nominal value received for shares sold, less transaction costs. 

Revaluation reserve

This reserve records the revaluation above cost of the investment property.

Capital redemption reserve

This reserve records the nominal value for the redemption of the Company's shares.

Profit and loss account

The profit and loss reserve represents all current and prior period retained profits and losses less distributions.

Page 34
 

 
DRUM DEVELOPMENT GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


Related party transactions

Transactions
During the year the Group has repaid amounts of £nil (2022 -  £42,630), provided loans of £1,260,000 (2022 - £200,000) and received loan repayments of £3,796,851 (2022 - £9,804)  from companies with common directors. The Group has also incurred management charges from a company with common directors during the year amounting to £675,208 (2022 - £1,536,419). The amount due by these companies as at 31 December 2023 was £1,460,000 (2022 - £200,000).
During the year the company repaid loans from a director totalling £16,885,447.  This balance due to the director at the year end was £nil (2022: £16,885,447).  The loan was unsecured and non interest bearing.


26.


Controlling party

Throughout the year the Group was controlled by the directors.

Page 35