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COMPANY REGISTRATION NUMBER: SC260511
HSB Holdings Limited
Financial Statements
30 November 2023
HSB Holdings Limited
Financial Statements
Year ended 30 November 2023
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
3
Directors' responsibilities statement
5
Independent auditor's report to the members
6
Statement of comprehensive income
11
Statement of financial position
12
Statement of changes in equity
13
Notes to the financial statements
14
HSB Holdings Limited
Officers and Professional Advisers
The board of directors
Gregor A Robb
Graeme P Farquhar
Garry Shand
Donald H Galloway
Gary D Campbell
Martin Leiper
Company secretary
Stronachs Secretaries Limited
Registered office
28 Albyn Place
Aberdeen
AB10 1YL
Auditor
FourM Limited
Chartered Accountants & Statutory Auditor
Stannergate House
41 Dundee Road West
Broughty Ferry
Dundee
DD5 1NB
Bankers
The Royal Bank of Scotland plc
78 Union Street
Aberdeen
AB10 1HH
Solicitors
Stronachs
28 Albyn Place
Aberdeen
AB10 1YL
HSB Holdings Limited
Strategic Report
Year ended 30 November 2023
Principal activities and review of the business Following the group re-organisation in May 2022, Hutcheon Investments Limited now provides management services to Hutcheon Services Limited (HSL) and so now the principal activity of HSB Holdings Limited is that of property rental to HSL The principal activities of HSL are that of general electrical, mechanical and plumbing contractors and sheet metal fabricators. As a consequence of the group re-organisation in May 2022 the normal items included in the directors' strategic report such as Details of the group's Principal risks and uncertainties, Results for the year, Development and performance of the business, Position at the year-end, key performance indicators and Future developments etc. are all now provided in the Directors' Strategic Report in the group accounts of Hutcheon Investments Limited.
This report was approved by the board of directors on 30 September 2024 and signed on behalf of the board by:
Gregor A Robb
Director
Trading address:
Bourtree House
Minto Drive
Altens Industrial Estate
Aberdeen
AB12 3LW
HSB Holdings Limited
Directors' Report
Year ended 30 November 2023
The directors present their report and the financial statements of the company for the year ended 30 November 2023 .
Directors
The directors who served the company during the year were as follows:
Gregor A Robb
Graeme P Farquhar
Garry Shand
Donald H Galloway
Gary D Campbell
Martin Leiper
Dividends
Particulars of recommended dividends are detailed in note 13 to the financial statements.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 30 September 2024 and signed on behalf of the board by:
Gregor A Robb
Director
Trading address:
Bourtree House
Minto Drive
Altens Industrial Estate
Aberdeen
AB12 3LW
HSB Holdings Limited
Directors' Responsibilities Statement
Year ended 30 November 2023
The directors are responsible for preparing the strategic report, 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.
HSB Holdings Limited
Independent Auditor's Report to the Members of HSB Holdings Limited
Year ended 30 November 2023
Opinion
We have audited the financial statements of HSB Holdings Limited (the 'company') for the year ended 30 November 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 company's affairs as at 30 November 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 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.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinions 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or - the 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, 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 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 auditor’s 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 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: In identifying and assessing the risk of material misstatement due to non-compliance with laws and regulations we have carried out the following: - Ensured that the engagement team have the appropriate competence, capabilities and skills to identify or recognise non-compliance with laws and regulations; - Identified at planning the specific laws and regulations applicable to the entity through discussions with directors and management and through our own knowledge of the sector; - Focused on the laws and regulations we consider may have a direct effect on the financial statements, including FRS 102, the Companies Act 2006, employment regulation and tax compliance legislation; - Reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations; - Made enquiries of management; and - Ensured the engagement team remained alert to instances of non-compliance throughout the audit. In identifying and assessing the risk of material misstatement due to irregularities including fraud, the potential for management bias and the override of controls we have: - Obtained an understanding at planning of the entity's operations, including the nature of its sources of revenue to understand the types of transactions, account balances, financial disclosures and business risks that may result in risk of material misstatement; - Made enquiries of management at planning as to where they consider there was a susceptibility to fraud in the business, and their knowledge of any actual, suspected or alleged fraud; - Vouched balances and reconciling items in key control account reconciliations to supporting documentation; - Carried out detailed testing, on a sample basis, to verify the completeness, existence and accuracy of transactions and balances, in particular completeness of revenue; - Challenged assumptions and judgements made by management in their significant accounting estimates; - Performed analytical procedures to identify any significant or unusual transactions; and - Investigated the business rationale behind any significant or unusual transactions, in particular journal entries. We did not identify any matters relating to non-compliance with laws and regulations, or relating to 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. The risk of not detecting a material misstatement due to fraud is inherently more difficult than detecting those that result from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. In addition, the further removed any non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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 2006. Our 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 auditor's 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.
Iain McBride MA CA
(Senior Statutory Auditor)
For and on behalf of
FourM Limited
Chartered Accountants & Statutory Auditor
Stannergate House
41 Dundee Road West
Broughty Ferry
Dundee
DD5 1NB
30 September 2024
HSB Holdings Limited
Statement of Comprehensive Income
Year ended 30 November 2023
2023
2022
Note
£
£
Turnover
4
196,563
380,161
---------
---------
Gross profit
196,563
380,161
Administrative expenses
( 32,491)
( 908,262)
---------
---------
Operating profit/(loss)
5
164,072
( 528,101)
Income from shares in group undertakings
9
2,025,000
135,270
Other interest receivable and similar income
10
22
39
Interest payable and similar expenses
11
( 74,238)
( 19,596)
------------
---------
Profit/(loss) before taxation
2,114,856
( 412,388)
Tax on profit/(loss)
12
( 20,899)
( 31,693)
------------
---------
Profit/(loss) for the financial year
2,093,957
( 444,081)
------------
---------
Revaluation of tangible assets
( 13,468)
Reclassification from revaluation reserve to profit and loss account
13,468
----
--------
Other comprehensive income for the year
------------
---------
Total comprehensive income for the year
2,093,957
( 444,081)
------------
---------
All the activities of the company are from continuing operations.
HSB Holdings Limited
Statement of Financial Position
30 November 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible assets
14
1,300,945
1,314,494
Investments
15
2,103,820
2,103,820
------------
------------
3,404,765
3,418,314
Current assets
Debtors
16
329,982
1,900,479
Cash at bank and in hand
122,184
51,718
---------
------------
452,166
1,952,197
Creditors: amounts falling due within one year
17
2,652,820
3,159,519
------------
------------
Net current liabilities
2,200,654
1,207,322
------------
------------
Total assets less current liabilities
1,204,111
2,210,992
Creditors: amounts falling due after more than one year
18
628,349
701,693
Provisions
Deferred taxation
19
( 1,956)
( 4,450)
------------
------------
Net assets
573,806
1,504,849
------------
------------
Capital and reserves
Called up share capital
21
15,375
15,375
Share premium account
22
380,255
380,255
Capital redemption reserve
22
4,625
4,625
Profit and loss account
22
173,551
1,104,594
---------
------------
Shareholders funds
573,806
1,504,849
---------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 30 September 2024 , and are signed on behalf of the board by:
Graeme P Farquhar
Director
Company registration number: SC260511
HSB Holdings Limited
Statement of Changes in Equity
Year ended 30 November 2023
Called up share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss account
Total
Note
£
£
£
£
£
£
At 1 December 2021
15,375
380,255
13,468
4,625
1,670,477
2,084,200
Loss for the year
( 444,081)
( 444,081)
Other comprehensive income for the year:
Revaluation of tangible assets
14
( 13,468)
( 13,468)
Reclassification from revaluation reserve to profit and loss account
13,468
13,468
--------
---------
--------
-------
------------
------------
Total comprehensive income for the year
( 13,468)
( 430,613)
( 444,081)
Dividends paid and payable
13
( 135,270)
( 135,270)
--------
---------
--------
-------
------------
------------
Total investments by and distributions to owners
( 135,270)
( 135,270)
At 30 November 2022
15,375
380,255
4,625
1,104,594
1,504,849
Profit for the year
2,093,957
2,093,957
--------
---------
--------
-------
------------
------------
Total comprehensive income for the year
2,093,957
2,093,957
Dividends paid and payable
13
( 3,025,000)
( 3,025,000)
----
----
----
----
------------
------------
Total investments by and distributions to owners
( 3,025,000)
( 3,025,000)
--------
---------
----
-------
------------
------------
At 30 November 2023
15,375
380,255
4,625
173,551
573,806
--------
---------
----
-------
------------
------------
HSB Holdings Limited
Notes to the Financial Statements
Year ended 30 November 2023
1. General information
The company is a private company limited by shares, registered in Scotland. The address of the registered office is 28 Albyn Place, Aberdeen, AB10 1YL.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Fixed asset investments
The fixed asset investments are recorded at cost less any provision for the reduction in the value of the stated investment.
Going concern
The directors confirm that, after making appropriate enquiries, they have reasonable expectation that the company, with the support of their subsidiary has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing these Financial Statements.
Investment property
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure.
Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.
If a reliable measure of fair value is no longer available without undue cost or effort for an item of investment property, it shall be transferred to tangible assets and treated as such until it is expected that fair value will be reliably measurable on an on-going basis.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Hutcheon Investments Limited which can be obtained from the Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) No disclosure has been given for the aggregate remuneration of key management personnel.
HSB Holdings Limited
Notes to the Financial Statements (continued)
Year ended 30 November 2023
3.Accounting policies (continued)
Consolidation
The entity has taken advantage of the exemption from preparing consolidated financial statements contained in Section 400 of the Companies Act 2006 on the basis that it is a subsidiary undertaking and its immediate parent undertaking is established under the law of the UK and their results are consolidated in the ultimate parent company.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for rent and management charges to subsidiary, net of discounts and of Value Added Tax. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Corporation tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold Property
-
2% straight line
Motor Vehicles
-
25% reducing balance
Investment property
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss. If a reliable measure of fair value is no longer available without undue cost or effort for an item of investment property, it shall be transferred to tangible assets and treated as such until it is expected that fair value will be reliably measurable on an on-going basis.
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Investments in associates
Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Rent and management charges
196,562
380,161
---------
---------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit/(loss)
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
13,549
14,388
Impairment of tangible assets recognised in:
Administrative expenses
700,000
Gains on disposal of tangible assets
( 7,409)
--------
---------
6. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
6,114
4,680
-------
-------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Management staff
3
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
120,134
Social security costs
18,818
----
---------
138,952
----
---------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
159,312
----
---------
9. Income from shares in group undertakings
2023
2022
£
£
Dividends from group undertakings
2,025,000
135,270
------------
---------
10. Other interest receivable and similar income
2023
2022
£
£
Interest on cash and cash equivalents
22
39
----
----
11. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
74,238
19,545
Interest on obligations under finance leases and hire purchase contracts
51
--------
--------
74,238
19,596
--------
--------
12. Tax on profit/(loss)
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
23,393
22,052
Deferred tax:
Origination and reversal of timing differences
( 2,494)
9,641
--------
--------
Tax on profit/(loss)
20,899
31,693
--------
--------
Reconciliation of tax expense
The tax assessed on the profit/(loss) on ordinary activities for the year is lower than (2022: higher than) the standard rate of corporation tax in the UK of 25 % (2022: 19 %).
2023
2022
£
£
Profit/(loss) on ordinary activities before taxation
2,114,856
( 412,388)
------------
---------
Profit/(loss) on ordinary activities by rate of tax
528,714
( 78,354)
Effect of expenses not deductible for tax purposes
457
133,433
Effect of capital allowances and depreciation
( 2,494)
2,314
Effect of revenue exempt from tax
( 506,250)
( 25,700)
Other tax adjustments
472
------------
---------
Tax on profit/(loss)
20,899
31,693
------------
---------
13. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2023
2022
£
£
Equity dividends on ordinary shares
3,025,000
135,270
------------
---------
14. Tangible assets
Investment property
Motor vehicles
Total
£
£
£
Cost
At 1 December 2022 and 30 November 2023
1,291,355
80,630
1,371,985
------------
--------
------------
Depreciation
At 1 December 2022
23,751
33,740
57,491
Charge for the year
1,827
11,722
13,549
------------
--------
------------
At 30 November 2023
25,578
45,462
71,040
------------
--------
------------
Carrying amount
At 30 November 2023
1,265,777
35,168
1,300,945
------------
--------
------------
At 30 November 2022
1,267,604
46,890
1,314,494
------------
--------
------------
The company's investment property was revalued by Gordon Macdonald FRICS on behalf of Allied Surveyors Scotland on 11 January 2022. The valuation was based upon open market valuation and in accordance with the RICS appraisal and valuation standards. The write down arising on this valuation was debited to the profit and loss in the year. The Directors believe that the valuation made is a fair representation of the market value of the investment property held at the year end.
Tangible assets held at valuation
In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:
Investment property
£
At 30 November 2023
Aggregate cost
1,886,532
Aggregate depreciation
------------
Carrying value
1,886,532
------------
At 30 November 2022
Aggregate cost
1,886,532
Aggregate depreciation
------------
Carrying value
1,886,532
------------
15. Investments
Shares in group undertakings
£
Cost
At 1 December 2022 and 30 November 2023
2,103,820
------------
Impairment
At 1 December 2022 and 30 November 2023
------------
Carrying amount
At 30 November 2023
2,103,820
------------
At 30 November 2022
2,103,820
------------
16. Debtors
2023
2022
£
£
Amounts owed by group undertakings
329,982
1,900,479
---------
------------
17. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
86,232
23,295
Amounts owed to group undertakings
2,538,826
3,062,586
Accruals and deferred income
5,148
4,680
Corporation tax
22,614
68,958
------------
------------
2,652,820
3,159,519
------------
------------
18. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
628,349
701,693
---------
---------
Included within creditors: amounts falling due after more than one year is an amount of £597,615 (2022: £625,030) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
The company has a loan from bankers that is to be repaid in 300 monthly instalments with interest charged at 5.2% above the Bank of England base rate.
19. Provisions
Deferred tax (note 20)
£
At 1 December 2022
4,450
Charge against provision
( 2,494)
-------
At 30 November 2023
1,956
-------
20. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 19)
1,956
4,450
-------
-------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
1,956
4,450
-------
-------
21. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
15,375
15,375
15,375
15,375
--------
--------
--------
--------
22. Reserves
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. Profit and loss account - This reserve records retained earnings and accumulated losses.
23. Charges on assets
The company's bank borrowing is secured by a charge over its investment property as well as by a bond and floating charge over all the property and undertaking of the company.
24. Related party transactions
The company was under the control of the directors throughout the current and previous year.