Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31true2falsetrue2023-01-01Property investment2truefalse SC137323 2023-01-01 2023-12-31 SC137323 2022-01-01 2022-12-31 SC137323 2023-12-31 SC137323 2022-12-31 SC137323 c:CompanySecretary1 2023-01-01 2023-12-31 SC137323 c:Director1 2023-01-01 2023-12-31 SC137323 c:Director2 2023-01-01 2023-12-31 SC137323 c:RegisteredOffice 2023-01-01 2023-12-31 SC137323 d:FurnitureFittings 2023-01-01 2023-12-31 SC137323 d:FurnitureFittings 2023-12-31 SC137323 d:FurnitureFittings 2022-12-31 SC137323 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 SC137323 d:OfficeEquipment 2023-01-01 2023-12-31 SC137323 d:OfficeEquipment 2023-12-31 SC137323 d:OfficeEquipment 2022-12-31 SC137323 d:OfficeEquipment d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 SC137323 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 SC137323 d:FreeholdInvestmentProperty 2023-12-31 SC137323 d:FreeholdInvestmentProperty 2022-12-31 SC137323 d:CurrentFinancialInstruments 2023-12-31 SC137323 d:CurrentFinancialInstruments 2022-12-31 SC137323 d:Non-currentFinancialInstruments 2023-12-31 SC137323 d:Non-currentFinancialInstruments 2022-12-31 SC137323 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 SC137323 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 SC137323 d:Non-currentFinancialInstruments d:AfterOneYear 2023-12-31 SC137323 d:Non-currentFinancialInstruments d:AfterOneYear 2022-12-31 SC137323 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2023-12-31 SC137323 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2022-12-31 SC137323 d:ShareCapital 2023-12-31 SC137323 d:ShareCapital 2022-12-31 SC137323 d:RevaluationReserve 2023-12-31 SC137323 d:RevaluationReserve 2022-12-31 SC137323 d:RetainedEarningsAccumulatedLosses 2023-12-31 SC137323 d:RetainedEarningsAccumulatedLosses 2022-12-31 SC137323 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-12-31 SC137323 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-12-31 SC137323 c:OrdinaryShareClass1 2023-01-01 2023-12-31 SC137323 c:OrdinaryShareClass1 2023-12-31 SC137323 c:OrdinaryShareClass1 2022-12-31 SC137323 c:FRS102 2023-01-01 2023-12-31 SC137323 c:Audited 2023-01-01 2023-12-31 SC137323 c:FullAccounts 2023-01-01 2023-12-31 SC137323 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 SC137323 c:SmallCompaniesRegimeForAccounts 2023-01-01 2023-12-31 SC137323 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 SC137323 d:AcceleratedTaxDepreciationDeferredTax 2022-12-31 SC137323 d:OtherDeferredTax 2023-12-31 SC137323 d:OtherDeferredTax 2022-12-31 SC137323 e:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure
Registered number:SC137323













DRUM INVESTMENTS LIMITED






INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2023

 
DRUM INVESTMENTS LIMITED
 

COMPANY INFORMATION


Directors
G M Bone 
S C Oag 




Company secretary
Brodies Secretarial Services Limited



Registered number
SC137323



Registered office
12 Rubislaw Terrace Lane

Aberdeen

AB10 1XF




Independent auditors
Anderson Anderson & Brown Audit LLP

Kingshill View

Prime Four Business Park

Kingswells

Aberdeen

AB15 8PU





 
DRUM INVESTMENTS LIMITED
 

CONTENTS



Page
Directors' responsibilities statement
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 12

 
DRUM INVESTMENTS LIMITED
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the Directors' report and the 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 of the profit or loss of the company for that period.

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

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

make judgments and accounting estimates that are reasonable and prudent;


prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 1

 
DRUM INVESTMENTS LIMITED
REGISTERED NUMBER:SC137323

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2023
2022
2022
Note
£
£
£
£

Fixed assets
  

Tangible assets
 4 
73,739
42,935

Investment property
 5 
12,151,000
12,151,000

  
12,224,739
12,193,935

Current assets
  

Debtors: amounts falling due within one year
 6 
67,086
950,737

Cash at bank and in hand
 7 
45,387
17,524

  
112,473
968,261

Creditors: amounts falling due within one year
 8 
(5,803,442)
(55,158)

Net current (liabilities)/assets
  
 
 
(5,690,969)
 
 
913,103

Total assets less current liabilities
  
6,533,770
13,107,038

Creditors: amounts falling due after more than one year
 9 
(492,763)
(7,111,683)

Provisions for liabilities
  

Deferred tax
 12 
(1,229,154)
(1,216,723)

  
 
 
(1,229,154)
 
 
(1,216,723)

Net assets
  
4,811,853
4,778,632


Capital and reserves
  

Called up share capital 
 14 
8,000
8,000

Revaluation reserve
  
3,758,684
3,758,684

Profit and loss account
  
1,045,169
1,011,948

  
4,811,853
4,778,632


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

Page 2

 
DRUM INVESTMENTS LIMITED
REGISTERED NUMBER:SC137323

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 on 23 September 2024.




S C Oag
Director

The notes on pages 4 to 12 form part of these financial statements.
Page 3

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

1.


General information

Drum Investments Limited is a limited liability company incorporated in Scotland, whose registered office is 12 Rubislaw Terrace Lane, Aberdeen, AB10 1XF. The principal activity of the company is the purchase and rental of properties. The company also owns a portfolio of investment properties.

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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 following principal accounting policies have been applied:

 
2.2

Going concern

The directors, having made due and careful enquiry, are of the opinion that the 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 Company has adequate resources to continue in operational existence for the foreseeable future.
The balance sheet as at 31 December 2023 does reflect a net current liabilities position however this is due to the directors of Drum Investments Limited opting to voluntarily accelerate the repayment schedule on the outstanding external loan finance. The wider group had surplus cash available and thus to reduce the interest fees suffered they agreed with the bank to settle the loans earlier than required. 
As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.

 
2.3

Revenue

Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts. 

 
2.4

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the profit and loss account in the same period as the related expenditure.

 
2.5

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.

 
2.6

Borrowing costs

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

Page 4

 
DRUM INVESTMENTS 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 operates and generates 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation less depreciation.  Depreciation is not charged on freehold land.  Depreciation on other tangible fixed assets is provided at rates calculated to write off the cost or valuation of those assets, less their estimated residual value, over their expected useful lives on the following bases:


Fixtures & fittings
-
25% straight line
Office equipment
-
20 - 25% straight line

 
2.9

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.

 
2.10

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.

 
2.11

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.

Page 5

 
DRUM INVESTMENTS LIMITED
 

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

2.Accounting policies (continued)

 
2.12

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.

 
2.13

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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

 

Page 6

 
DRUM INVESTMENTS LIMITED
 

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

2.Accounting policies (continued)


2.13
Financial instruments (continued)

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.


3.
Employees

The average number of employees, including directors, in the year was 2 (2022 - 2).

Page 7

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

4.


Tangible fixed assets





Fixtures & fittings
Office equipment
Total

£
£
£



Cost or valuation


At 1 January 2023
130,887
31,011
161,898


Additions
56,815
-
56,815


Disposals
-
(31,011)
(31,011)



At 31 December 2023

187,702
-
187,702



Depreciation


At 1 January 2023
87,952
31,011
118,963


Charge for the year on owned assets
26,011
-
26,011


Disposals
-
(31,011)
(31,011)



At 31 December 2023

113,963
-
113,963



Net book value



At 31 December 2023
73,739
-
73,739



At 31 December 2022
42,935
-
42,935

Page 8

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

5.


Investment property


Freehold investment property

£



Valuation


At 1 January 2023
12,151,000



At 31 December 2023
12,151,000

The company's entire investment portfolio was revalued in 2021 by external qualified chartered surveyors. 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
7,087,966
7,087,966

7,087,966
7,087,966

A deferred tax liability has been recognised in respect of the potential tax that will arise on the revaluation gain on investment properties, refer to note 12 for details.


6.


Debtors

2023
2022
£
£


Trade debtors
9,672
7,340

Amounts owed by group undertakings
672
930,249

Amounts owed by related undertakings
-
418

Other debtors
3,200
3,550

Prepayments and accrued income
53,542
9,180

67,086
950,737



7.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
45,387
17,524

45,387
17,524


Page 9

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

8.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
5,880
10,480

Amounts owed to group undertakings
5,740,000
-

Accruals and deferred income
57,562
44,678

5,803,442
55,158



9.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans (Note 10)
-
6,600,000

Accruals and deferred income
492,763
511,683

492,763
7,111,683



10.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£



Amounts falling due 2-5 years

Bank loans
-
6,600,000


-
6,600,000


The company is part of a £10m group revolving credit facility agreed by the company and Drum Riverview Limited and Drum Commercial Asset Investments Limited. The facility is secured by a bond and floating charge over the assets of the companies, an inter-company guarantee between these companies and a first standard security over the investment properties owned by these companies.  No amounts were drawndown under the facility as the year end.


11.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
45,387
17,524




Financial assets measured at fair value through profit or loss comprise cash at hand and in bank.

Page 10

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

12.


Deferred taxation




2023


£






At beginning of year
1,216,723


Charged to profit or loss
12,431



At end of year
1,229,154

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Fixed asset differences
(108,607)
(121,038)

Potential capital gain on investment property revaluations
1,337,761
1,337,761

1,229,154
1,216,723


13.
Contingent liabilities

The capital grants are repayable according to a time based formula over 20 years on the occurrence of a qualifying event, defined as termination or lease assignation without approval of The Scottish Housing Regulator.
The amount repayable at 31 December 2023 if those circumstances arose is £nil (2022 - £nil).

14.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



8,000 (2022 - 8,000) Ordinary shares of £1.00 each
8,000
8,000



Page 11

 
DRUM INVESTMENTS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
15.
Related party transactions

The company has taken advantage of the exemption given by section 1AC.35 of Financial Reporting Standard 102 which allows exemption from disclosure of related party transactions with other group companies.
During the year management fees totalling £115,200 (2022: £115,200) have been charged by a company with common directors.  An amount of £nil (2022: £nil) is due by this company as at 31 December 2023.
During the year expenses totalling £nil (2022: £348) have been recharged to a company with common directors.  An amount of £nil (2022: £418) is due by this company as at 31 December 2023.


16.


Controlling party

The ultimate parent company of which the company is a wholly owned subsidiary is Drum Property Investment Group Limited, a company registered in Scotland.

17.


Auditors' information

The auditors' report on the financial statements for the year ended 31 December 2023 was unqualified.
The audit report was signed on 23 September 2024 by Christopher Masson (Senior statutory auditor) on behalf of Anderson Anderson & Brown Audit LLP.


Page 12