Company registration number SC129609 (Scotland)
Cardross Estates Limited
Annual report and unaudited financial statements
for the year ended 31 August 2024
Pages for filing with registrar
Cardross Estates Limited
Contents
Page
Directors' report
1
Profit and loss account
2
Balance sheet
3 - 4
Statement of changes in equity
5
Notes to the financial statements
6 - 10
Cardross Estates Limited
Directors' report
for the year ended 31 August 2024
- 1 -
The directors present their annual report and financial statements for the year ended 31 August 2024.
Principal activities
The principal activity of the company continued to be that of investment property letting.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A S Buchanan
G D C Buchanan
C F Turk
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
A S Buchanan
Director
12 November 2024
Cardross Estates Limited
Profit and loss account
for the year ended 31 August 2024
- 2 -
2024
2023
£
£
Turnover
149,689
156,080
Cost of sales
(35,674)
(25,786)
Gross profit
114,015
130,294
Administrative expenses
(6,374)
(19,184)
Operating profit
107,641
111,110
Interest receivable and similar income
11,557
4,968
Profit before taxation
119,198
116,078
Tax on profit
(29,777)
(32,926)
Profit for the financial year
89,421
83,152
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Cardross Estates Limited
Balance sheet
as at 31 August 2024
31 August 2024
- 3 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment properties
4
1,644,358
1,644,358
Investments
5
20,000
20,000
1,664,358
1,664,358
Current assets
Debtors
6
13,706
18,774
Cash at bank and in hand
595,693
492,698
609,399
511,472
Creditors: amounts falling due within one year
7
(96,849)
(88,343)
Net current assets
512,550
423,129
Total assets less current liabilities
2,176,908
2,087,487
Provisions for liabilities
(50,307)
(50,307)
Net assets
2,126,601
2,037,180
Capital and reserves
Called up share capital
325,619
325,619
Share premium account
25,995
25,995
Non-distributable reserve
423,396
423,396
Profit and loss reserves
1,351,591
1,262,170
Total equity
2,126,601
2,037,180
For the financial year ended 31 August 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.
Cardross Estates Limited
Balance sheet (continued)
as at 31 August 2024
31 August 2024
- 4 -
The financial statements were approved by the board of directors and authorised for issue on 12 November 2024 and are signed on its behalf by:
A S Buchanan
Director
Company Registration No. SC129609
Cardross Estates Limited
Statement of changes in equity
for the year ended 31 August 2024
- 5 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 September 2022
325,619
25,995
431,236
1,171,178
1,954,028
Year ended 31 August 2023:
Profit and total comprehensive income
-
-
-
83,152
83,152
Transfers
-
-
(7,840)
7,840
-
Balance at 31 August 2023
325,619
25,995
423,396
1,262,170
2,037,180
Year ended 31 August 2024:
Profit and total comprehensive income
-
-
-
89,421
89,421
Balance at 31 August 2024
325,619
25,995
423,396
1,351,591
2,126,601
Cardross Estates Limited
Notes to the financial statements
for the year ended 31 August 2024
- 6 -
1
Accounting policies
Company information
Cardross Estates Limited is a private company limited by shares incorporated in Scotland. The registered office is 8 Craigcrook Road, Edinburgh, EH4 3NQ.
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. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. Rental income is recognised in the period to which it relates, net of any concessions granted.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
Cardross Estates Limited
Notes to the financial statements (continued)
for the year ended 31 August 2024
1
Accounting policies (continued)
- 7 -
1.6
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
Cardross Estates Limited
Notes to the financial statements (continued)
for the year ended 31 August 2024
1
Accounting policies (continued)
- 8 -
1.9
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.
1.10
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.
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Cardross Estates Limited
Notes to the financial statements (continued)
for the year ended 31 August 2024
2
Judgements and key sources of estimation uncertainty (continued)
- 9 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Investment property valuation
Investment properties are valued annually using a yield methodology. This uses market rental values capitalised at a market capitalisation rate but there is an inevitable degree of judgement involved in that each property is unique and value can only ultimately be reliably tested in the market itself.
Provision for bad debts
The provision for bad and doubtful debts inherently involves a degree of estimation uncertainty however is based on customer knowledge and historic information.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
4
Investment property
2024
£
Fair value
At 1 September 2023 and 31 August 2024
1,644,358
Investment property comprises both residential and commercial property. These were valued at £1,613,000 as at 31 August 2021 by J&E Shepherd, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties
The historical value of the freehold investment property is £1,170,654 (2023: £1,170,654).
5
Fixed asset investments
The company has a 100% interest in the ordinary shares in Halemetts Limited, a subsidiary undertaking. The net assets of this company at 31 August 2024 was £20,000. The amount due to the subsidiary by the company is £20,000, therefore the investment is held at £20,000. Halemetts Limited has been dormant throughout the year and prior year.
Cardross Estates Limited
Notes to the financial statements (continued)
for the year ended 31 August 2024
- 10 -
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,824
5,144
Other debtors
11,882
13,630
13,706
18,774
7
Creditors: amounts falling due within one year
2024
2023
£
£
Amounts owed to group undertakings
20,000
20,000
Corporation tax
29,777
25,086
Other taxation and social security
4,599
4,569
Other creditors
42,473
38,688
96,849
88,343
8
Related party transactions
Property management services were provided to the company by Cardross Asset Management Limited, a company in which A S Buchanan is a director. Fees paid in respect of property management services amounted to £10,000 in the year (2023: £10,000), whilst reimbursement of maintenance and administration charges paid amounted to £nil (2023: £nil).
During the year, Mrs C Buchanan (a relative of the directors) was invoiced £1,475 for costs relating to a jointly owned property (2023: £4,978), none of which were outstanding at the year end (2023: £nil).
Mr AS Buchanan was reimbursed expenses of £66 during the year (2023: £385).
No dividends were paid to any directors during the year (2023: £nil).
At the year end, £20,000 is due to Halemetts Limited, a 100% dormant subsidiary of the company (2023: £20,000).