Rossco Properties (Blackgrange) Limited |
Registered number: |
SC657815 |
Director's Report |
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The director presents his report and financial statements for the year ended 31 March 2024. |
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Principal activities |
The company's principal activity during the year continued to be the construction of bonded warehousing. |
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Future developments |
The directors intend to keep implementing the same policies that have provided the profitability of the business. |
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Dividends |
The directors do not recommend the payment of a dividend at this time. |
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Directors |
The following persons served as directors during the year: |
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Simon Howie |
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Karen Howie (appointed 16 October 2023) |
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Ross Howie (appointed 16 October 2023) |
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Lynne Tree (appointed 16 October 2023) |
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Director's responsibilities |
Rossco Properties (Blackgrange) Limited |
Strategic Report |
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The directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. The directors review is consistent with the size and non-complex nature of the business, and is written in the context of the risks and uncertainties faced. |
The business concentrates on commercial property development throughout mainland UK. A number of large buildings are under construction and the company is focused on buying, developing and leasing sites of varying sizes and geographic locations. |
There was a significant increase in turnover from the previous year, up £32,630,138. Just as important was increasing gross profit from 10% to 14% (£2,200,596 to £7,384,815) resulting in an increase in operating profit from £2,030,919 to £7,083,709. After taxation, £5,278,092 has been added to the reserves. Return on capital employed was 76% (2023: 94%). This is calculated as profit after tax divided by net assets. These results reflect that the company is increasingly profitable and is retaining funds to maintain cashflow. Turnover is envisaged to reduce in 2024/25 as several projects moves to completion and new projects are sought. |
The risks facing the company are those for the construction industry generally, including rises in costs of building materials, wages and fuel. |
The directors consider that the financial position of the company at the year end is healthy, the balance sheet has strengthened and short term prospects remain positive. |
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This report was approved by the board on 14 August 2024 and signed on its behalf. |
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Simon Howie |
Director |
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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. |
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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. |
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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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. |
We have nothing to report in this regard. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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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. |
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Matters on which we are required to report by exception |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. |
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the ability to operate or to avoid a material penalty. The laws and regulations we considered in this context were General Data Protection Regulation (GDPR) and taxation legislation. |
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. |
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud to be within judgements and estimates, and the override of controls by management. Our audit procedures to respond to these risks include enquiries of management about their own identification and assessment of the risks of irregularities, full testing of journals and reviewing accounting estimates for biases. |
Owing to the inherent limitations of an audit, there is the unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non detection of irregularities, as these may involve collusion, forgery, intentional ommissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
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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. |
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|
Alexander Gillespie MA ACA ATII |
(Senior Statutory Auditor) |
for and on behalf of |
33 Leslie Street |
Gillespie Inverarity & Co Limited |
Blairgowrie |
Statutory Auditor |
Perthshire |
24 October 2024 |
PH10 6AW |
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Rossco Properties (Blackgrange) Limited |
Statement of Cash Flows |
for the year ended 31 March 2024 |
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Notes |
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2024 |
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2023 |
£ |
£ |
Operating activities |
Profit for the financial year |
7,155,854 |
|
1,601,620 |
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Adjustments for: |
Interest receivable |
(24,746) |
|
- |
Interest payable |
70,999 |
|
53,610 |
Tax on profit on ordinary activities |
2,385,285 |
|
375,689 |
Increase in stocks |
(2,693,389) |
|
(25,836) |
Decrease/(increase) in debtors |
3,299,975 |
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(13,693,634) |
(Decrease)/increase in creditors |
(9,462,098) |
|
11,781,502 |
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|
|
731,880 |
|
92,951 |
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Interest received |
24,746 |
|
- |
Interest paid |
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|
(70,999) |
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(53,610) |
Corporation tax paid |
(575,689) |
|
(23,875) |
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Cash generated by operating activities |
109,938 |
|
15,466 |
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Net cash generated |
Cash generated by operating activities |
109,938 |
|
15,466 |
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Net cash generated |
109,938 |
|
15,466 |
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Cash and cash equivalents at 1 April |
20,998 |
|
5,532 |
Cash and cash equivalents at 31 March |
130,936 |
|
20,998 |
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Cash and cash equivalents comprise: |
Cash at bank |
130,936 |
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20,998 |
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Rossco Properties (Blackgrange) Limited |
Notes to the Accounts |
for the year ended 31 March 2024 |
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1 |
Summary of significant accounting policies |
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Basis of preparation |
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The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only 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 and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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2 |
Analysis of turnover |
2024 |
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2023 |
£ |
£ |
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Revenue from construction contracts |
57,304,036 |
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21,750,828 |
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By geographical market: |
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UK |
57,304,036 |
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21,750,828 |
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3 |
Operating profit |
2024 |
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2023 |
£ |
£ |
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This is stated after charging: |
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Auditors' remuneration for audit services |
4,000 |
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- |
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Carrying amount of stock sold |
- |
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2,455,896 |
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4 |
Staff costs |
2024 |
|
2023 |
£ |
£ |
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Wages and salaries |
- |
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- |
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Social security costs |
- |
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- |
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Other pension costs |
- |
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- |
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|
- |
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- |
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Average number of employees during the year |
Number |
Number |
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- |
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- |
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5 |
Interest payable |
2024 |
|
2023 |
£ |
£ |
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Other loans |
70,999 |
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53,610 |
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6 |
Taxation |
2024 |
|
2023 |
£ |
£ |
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Analysis of charge in period |
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Current tax: |
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UK corporation tax on profits of the period |
2,385,285 |
|
375,689 |
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Tax on profit on ordinary activities |
2,385,285 |
|
375,689 |
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Factors affecting tax charge for period |
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The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
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2024 |
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2023 |
£ |
£ |
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Profit on ordinary activities before tax |
9,541,139 |
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1,977,309 |
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Standard rate of corporation tax in the UK |
25% |
|
19% |
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£ |
£ |
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Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
2,385,285 |
|
375,689 |
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Effects of: |
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Current tax charge for period |
2,385,285 |
|
375,689 |
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Factors that may affect future tax charges |
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There are no particular factors expected to affect future tax charges. |
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7 |
Stocks |
2024 |
|
2023 |
£ |
£ |
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Work in progress |
2,923,070 |
|
229,681 |
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8 |
Debtors |
2024 |
|
2023 |
£ |
£ |
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Trade debtors |
6,606,764 |
|
11,844,426 |
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Other debtors |
3,937,687 |
|
2,000,000 |
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|
10,544,451 |
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13,844,426 |
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9 |
Creditors: amounts falling due within one year |
2024 |
|
2023 |
£ |
£ |
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Trade creditors |
1,961,976 |
|
4,124,461 |
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Corporation tax |
2,185,285 |
|
375,689 |
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Other taxes and social security costs |
168,546 |
|
2,359,110 |
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Other creditors |
- |
|
5,532,436 |
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Accruals and deferred income |
423,387 |
|
- |
|
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|
|
|
|
4,739,194 |
|
12,391,696 |
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10 |
Share capital |
Nominal |
|
2024 |
|
2024 |
|
2023 |
value |
Number |
£ |
£ |
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Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
- |
|
4 |
|
4 |
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11 |
Profit and loss account |
2024 |
|
2023 |
£ |
£ |
|
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At 1 April |
1,703,405 |
|
101,785 |
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Profit for the financial year |
7,155,854 |
|
1,601,620 |
|
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At 31 March |
8,859,259 |
|
1,703,405 |
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12 |
Related party transactions |
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Included within Debtors is an amount of £3,937,687 in relation to a loan given to Great Interest Limited a company of which the Director, Simon Howie is also a director and shareholder. |
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13 |
Presentation currency |
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The financial statements are presented in Sterling rounded to the nearest £. |
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14 |
Legal form of entity and country of incorporation |
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Rossco Properties (Blackgrange) Limited is a private company limited by shares and incorporated in Scotland. |
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15 |
Principal place of business |
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The address of the company's principal place of business and registered office is: |
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Findony |
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Muckhart Road |
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Dunning |
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Perthshire |
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PH1 1NQ |