Company registration number SC350537 (Scotland)
WKL Developments Limited
Unaudited financial statements
for the year ended 31 March 2024
Pages for filing with registrar
WKL Developments Limited
Chartered Accountants' report to the board of directors on the preparation of the
unaudited statutory financial statements of WKL Developments Limited
1
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of WKL Developments Limited for the year ended 31 March 2024 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the ICAS we are subject to its ethical and other professional requirements which are detailed at https://www.icas.com/professional-resources/practice/support-and-guidance/framework-for-the-preparation-of-accounts-revised-june-2020.
This report is made solely to the board of directors of WKL Developments Limited, as a body, in accordance with the terms of our engagement letter dated 6 October 2023. Our work has been undertaken solely to prepare for your approval the financial statements of WKL Developments Limited and state those matters that we have agreed to state to the board of directors of WKL Developments Limited, as a body, in this report in accordance with the requirements of the ICAS as detailed at https://icas.com/icas-framework-preparation-of-accounts. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than WKL Developments Limited and its board of directors as a body, for our work or for this report.
It is your duty to ensure that WKL Developments Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of WKL Developments Limited. You consider that WKL Developments Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of WKL Developments Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
James Milne
Chartered Accountants
5 High Street
Inverurie
AB51 3QA
14 November 2024
WKL Developments Limited
Balance sheet
as at 31 March 2024
31 March 2024
2
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
19,174
19,631
Investment property
4
772,856
772,856
792,030
792,487
Current assets
Stocks
202,010
137,492
Debtors
121,148
153,380
Cash at bank and in hand
23,441
37,103
346,599
327,975
Creditors: amounts falling due within one year
(10,564)
(974,233)
Net current assets/(liabilities)
336,035
(646,258)
Total assets less current liabilities
1,128,065
146,229
Provisions for liabilities
(1,051)
Net assets
1,128,065
145,178
Capital and reserves
Called up share capital
1,000
1,000
Profit and loss reserves
1,127,065
144,178
Total equity
1,128,065
145,178
In accordance with section 444 of the Companies Act 2006, all of the members of the company have consented to the preparation of abridged financial statements pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (SI 2008/409)(b).
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
WKL Developments Limited
Balance sheet (continued)
as at 31 March 2024
31 March 2024
3
The financial statements were approved by the board of directors and authorised for issue on 6 November 2024 and are signed on its behalf by:
William K. Lippe
Director
Company registration number SC350537 (Scotland)
WKL Developments Limited
Notes to the financial statements
for the year ended 31 March 2024
4
1
Accounting policies
Company information
WKL Developments Limited is a private company limited by shares incorporated in Scotland. The registered office is The Stables, Keithhall Estate, Inverurie, Aberdeenshire, AB51 0LD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents amounts receivable for property development net of VAT and trade discounts. Turnover on property sales is recognised at the point of handover. Profit is recognised on construction contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for the contract.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight line or reducing balance basis over its expected useful life, as follows:
Plant and equipment
20% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Investment property
Investment property is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at each reporting date with changes in fair value recognised in profit or loss. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold..
The fair value is determined annually by the directors, on an open market value for existing use basis.
WKL Developments Limited
Notes to the financial statements (continued)
for the year ended 31 March 2024
1
Accounting policies (continued)
5
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Stocks
Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Provision is made for obsolete, slow-moving or defective items where appropriate.
Land stock is stated at the lower of cost and net realisable value. Cost comprises the purchase price of land.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
WKL Developments Limited
Notes to the financial statements (continued)
for the year ended 31 March 2024
1
Accounting policies (continued)
6
1.9
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the Balance Sheet date. This is normally measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.
The "percentage of completion method" is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
2
2
WKL Developments Limited
Notes to the financial statements (continued)
for the year ended 31 March 2024
7
3
Tangible fixed assets
Total
£
Cost
At 1 April 2023
27,674
Additions
5,500
At 31 March 2024
33,174
Depreciation and impairment
At 1 April 2023
8,043
Depreciation charged in the year
5,957
At 31 March 2024
14,000
Carrying amount
At 31 March 2024
19,174
At 31 March 2023
19,631
4
Investment property
2024
£
Fair value
At 1 April 2023 and 31 March 2024
772,856
The fair value of the investment property has been arrived at on the basis of valuations carried out at 31 March 2024 by the directors. The valuations were made on an open market value basis by reference to market evidence of transaction prices for similar properties.
5
Directors' transactions
During the year a director entered into the following advances and credits with the company:
Description
Opening balance
Amounts advanced
Amounts credited
Closing debit balance
£
£
£
£
William K. Lippe - director's loan
-
(85,300)
40,000
(45,300)
-
(85,300)
40,000
(45,300)