Limited Liability Partnership registration number SO302054 (Scotland)
JAMES WATT DOCK LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
JAMES WATT DOCK LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
Riverside Inverclyde (Property Holdings) Ltd
Peel Land & Property (James Watt Dock) Ltd
LLP registration number
SO302054
Registered office
16 Robertson Street
Glasgow
Lanarkshire
G2 8DS
Auditor
Azets Audit Services
Titanium 1
King's Inch Place
Renfrew
Refrewshire
United Kingdom
PA4 8WF
Bankers
Royal Bank of Scotland Plc
38 Mosley Street
Manchester
M60 2BE
Solicitors
Dentons
1 George Square
Glasgow
United Kingdom
G2 1AL
LLP Secretary
John Schofield A.C.A
Board Members
James Whittaker
Brian Lavalette
Stephen Frew
Stuart Jamieson
JAMES WATT DOCK LLP
CONTENTS
Page
Members' report
1 - 2
Members' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8
Reconciliation of members' interests
9 - 10
Notes to the financial statements
11 - 17
JAMES WATT DOCK LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The members present their annual report and financial statements for the year ended 31 March 2024.

Principle activity and review of the business

James Watt Dock Limited Liability Partnership (LLP) was established by Peel Land and Property (James Watt Dock) Limited and Riverside Inverclyde (Property Holdings) Limited to advance the redevelopment of a 107 acre site to the east of Greenock town centre. Its principal objectives are to:

 

1. accelerate the comprehensive redevelopment of a key waterfront regeneration site through the remediation of brownfield land and the redevelopment of an “A” listed building; and

 

2. the remediation of the land in such a way as to create profit for Peel Land and Property (James Watt Dock) Limited and Riverside Inverclyde (Property Holdings) Limited and to create a sustainable work/live community at James Watt Dock.

 

Activities

 

1. Since the establishment of the LLP in November 2008, the Board and Project Management Team have met regularly and work has been completed on the first phase development of the wider site;

 

2. The wind and watertight works to the Sugar Warehouse completed in November 2009 and since September 2010 Riverside Inverclyde has been able to open the building to the public for tours and stage events within the sheds. The successful Tall Ships 2011 event was based in the James Watt Dock area with the Sugar Sheds being used as a base for entertainment events;

 

3. A new road access has been completed and the bridge over the A8 to the south side of the site has been removed;

 

4. Installation of the first phase of the marina has been completed and the management company appointed to operate the facility started trading in August 2011. A full range of berthing and land based storage and ancillary marina services is offered. A management contract to operate the marina was granted in 2011; further additional pontoons have been installed and activity has increased year on year in line with the 5 year plan. Public realm works around the entrance to the marina have been completed. Installation of a further 60.4 metres of pontoons was completed in June 2015. Engineering work on the design of the replacement of Garvel Bridge is complete and the replacement project along with new road is now under construction;

 

5. The LLP has continually been reviewing the master plan for the area; and

 

6. In January 2017, following a full tender process, the marina was leased to a new tenant on a 60 year ground lease which requires the tenant to undertake the expansion of the marina and provision of a marina services building (incorporating offices, showers, café bar etc) within agreed timescales.

Results for the year and allocation to members

The loss for the year amounted to £2,348,426 (2023: £829,944 profit).

 

The profit is allocated equally between the Members based on Clause 15.1.1 of the LLP Agreement.

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

As far as each of the members at the time the report is approved are aware:

 

a) there is no relevant information of which the LLP’s auditor is unaware; and

b) the members have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of the information.

JAMES WATT DOCK LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Members

The members who served during the year and up to the date of approval were:

 

Peel Land and Property (James Watt Dock) Limited

Riverside Inverclyde (Property Holdings) Limited

 

The board members of the partnership during the year and up to the date of approval were James Whittaker, Stuart Jamieson, Stephen Frew and Brian Lavalette.

Members' capital policy

Members’ capital requirements are determined from time to time by the members. Unanimous agreement is required if additional capital is required, and the required capital shall be contributed by the members in equal proportions, or in such other proportions as the members may otherwise unanimously agree. No capital shall be withdrawn by any member without the unanimous consent of all other members.

 

Further funding requirements of the LLP will be determined by the members as and when required.

 

Following settlement of unsecured creditor balances, the Riverside Priority Distribution amount, and accrued loan interest remaining unpaid, any remaining assets will be used towards settlement of the loans due to members on an equal basis.

Small LLPs exemption

This report has been prepared in accordance with the special provisions relating to small LLPs within Part 15 of the Companies Act 2006.

Approved by the members on 24 December 2024 and signed on behalf by:
24 December 2024
Riverside Inverclyde (Property Holdings) Ltd
Peel Land & Property (James Watt Dock) Ltd
Designated Member
Designated Member

 

JAMES WATT DOCK LLP
MEMBERS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members 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 limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:

 

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

JAMES WATT DOCK LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JAMES WATT DOCK LLP
- 4 -
Opinion

We have audited the financial statements of James Watt Dock LLP (the 'limited liability partnership') for the year ended 31 March 2024 which comprise the profit and loss account, the balance sheet, the reconciliation of members' interests and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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:

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 limited liability partnership 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 members' 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 limited liability partnership’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 members 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 members 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.

JAMES WATT DOCK LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JAMES WATT DOCK LLP
- 5 -
Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 as applied to limited liability partnerships requires us to report to you if, in our opinion:

Responsibilities of members

As explained more fully in the members' responsibilities statement, the members 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 members 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 members are responsible for assessing the limited liability partnership'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 members either intend to liquidate the limited liability partnership 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

JAMES WATT DOCK LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JAMES WATT DOCK LLP
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we 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.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  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.

Use of our report

This report is made solely to the limited liability partnership's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership'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 limited liability partnership and the limited liability partnership's members as a body, for our audit work, for this report, or for the opinions we have formed.

David MacCallum
Senior Statutory Auditor
For and on behalf of Azets Audit Services
24 December 2024
Chartered Accountants
Statutory Auditor
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
JAMES WATT DOCK LLP
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Turnover
280,592
273,502
Cost of sales
(85,044)
(103,356)
Gross profit
195,548
170,146
Administrative expenses
(51,069)
(24,368)
Other operating income
-
1,200,000
Impairment of investment property
3
(2,153,546)
(205,764)
Operating (loss)/profit
(2,009,067)
1,140,014
Interest payable and similar expenses
(339,359)
(310,070)
(Loss)/profit for the financial year before members' remuneration and profit shares available for discretionary division among members
(2,348,426)
829,944

The profit and loss account has been prepared on the basis that all operations are continuing operations.

JAMES WATT DOCK LLP
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
6
1,600,000
1,550,000
Investment property
7
3,015,000
2,750,000
4,615,000
4,300,000
Current assets
Debtors
8
100,882
184,489
Cash at bank and in hand
787,796
1,634,815
888,678
1,819,304
Creditors: amounts falling due within one year
9
(494,373)
(411,746)
Net current assets
394,305
1,407,558
Total assets less current liabilities and net assets attributable to members
5,009,305
5,707,558
Represented by:
Loans and other debts due to members within one year
Members' capital classified as a liability
10,625,146
8,974,973
Members' other interests
Members' capital classified as equity
10,000,000
10,000,000
Other reserves classified as equity
(15,615,841)
(13,267,415)
5,009,305
5,707,558

The notes on pages 11 to 17 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions applicable to limited liability partnerships subject to the small limited liability partnerships regime.

The financial statements were approved by the members and authorised for issue on 24 December 2024 and are signed on their behalf by:
24 December 2024
Riverside Inverclyde (Property Holdings) Ltd
Peel Land & Property (James Watt Dock) Ltd
Designated member
Designated Member
Limited Liability Partnership Registration No. SO302054
JAMES WATT DOCK LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
Current financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital
Other reserves
Total
Members' capital
Total
Total
2024
£
£
£
£
£
Members' interests at 1 April 2023
10,000,000
(13,267,415)
(3,267,415)
8,974,973
8,974,973
5,707,558
Loss for the financial year available for discretionary division among members
-
(2,348,426)
(2,348,426)
-
-
(2,348,426)
Members' interests after loss for the year
10,000,000
(15,615,841)
(5,615,841)
8,974,973
8,974,973
3,359,132
Introduced by members
-
-
-
1,560,814
1,560,814
1,560,814
Interest payable
-
-
-
339,359
339,359
339,359
Drawings on account
-
-
-
(250,000)
(250,000)
(250,000)
Members' interests at 31 March 2024
10,000,000
(15,615,841)
(5,615,841)
10,625,146
10,625,146
5,009,305
JAMES WATT DOCK LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Prior financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital
Other reserves
Total
Members' capital
Total
Total
2023
£
£
£
£
£
Members' interests at 1 April 2022
10,000,000
(14,097,359)
(4,097,359)
8,665,135
8,665,135
4,567,776
Profit for the financial year available for discretionary division among members
-
829,944
829,944
-
-
829,944
Members' interests after profit for the year
10,000,000
(13,267,415)
(3,267,415)
8,665,135
8,665,135
5,397,720
Interest payable
-
-
-
309,838
309,838
309,838
Members' interests at 31 March 2023
10,000,000
(13,267,415)
(3,267,415)
8,974,973
8,974,973
5,707,558
JAMES WATT DOCK LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
1
Accounting policies
Limited liability partnership information

James Watt Dock LLP is a limited liability partnership incorporated in Scotland. The registered office is 16 Robertson Street, Glasgow, Lanarkshire, G2 8DS.

 

The limited liability partnership's principal activities are disclosed in the Members' Report.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together 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 limited liability partnership. 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 assets acquired for development and to include investment properties at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

The members are required to prepare the financial statements on the going concern basis unless it is inappropriate to presume that the LLP will continue in business.

The members recognise that income from external sources may be required in the medium to long term to deliver the major elements of the project plan, though this may be achieved through the sale of development plots. The members further note that the Limited Liability Partnership Agreement is only in place until November 2025. The members have confirmed in writing that it is their present intention to extend the Agreement, as they have done previously, and to continue to provide support to the LLP beyond the expiry date of the current agreement for a period of at least 12 months from the date of approval of these financial statements. Accordingly, the members are satisfied that the LLP has adequate resources to continue in business for the foreseeable future.

Taking all of the above into consideration, the members continue to prepare the financial statements on the going concern basis.

1.3
Turnover

Turnover represents rental income receivable and operational income from the marina, excluding VAT.

 

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the LLP and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates and VAT. The following criteria must also be met before turnover is recognised:

Rental income

Rental income from operating leases is recognised in the Statement of Comprehensive Income on a straight-line basis over the term of the relevant lease.

JAMES WATT DOCK LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
1.4
Members' participating interests

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

 

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.

 

Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net.

Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member.

1.5
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 recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Motor vehicles
25% straight line depreciation charged.
Assets acquired for development
No depreciation charged

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 recognised in the profit and loss account.

1.6
Investment property

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

1.7
Impairment of fixed assets

At each reporting period end date, the limited liability partnership 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 limited liability partnership estimates the recoverable amount of the cash-generating unit to which the asset belongs.

JAMES WATT DOCK LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Cash and cash equivalents

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.

1.9
Financial instruments

The limited liability partnership 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 limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

JAMES WATT DOCK LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 limited liability partnership 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

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.

2
Judgements and key sources of estimation uncertainty

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to make estimates and assumptions which affect reported income, expenses, assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.

 

The members are satisfied that the accounting policies are appropriate and have been applied consistently. Key sources of estimation have been applied to the depreciation rates. Depreciation rates have been deemed to be appropriate for the class of asset. Judgement is also used in determining the fair value of investment properties. The members engage a professionally qualified valuer to undertake this assessment on their behalf on a regular basis, and assess the fair value themselves in the intervening periods.

JAMES WATT DOCK LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
3
Exceptional item
2024
2023
£
£
Expenditure
Impairment of investment property
2,153,546
205,764
4
Employees

The average number of persons (excluding members) employed by the partnership during the year was:

2024
2023
Number
Number
Total
2
2
5
Impairments

Reversals of previous impairment losses have been recognised in profit or loss as follows:

2024
2023
Notes
£
£
In respect of:
Property, plant and equipment
6
50,000
-
Recognised in:
Administrative expenses
50,000
-
6
Tangible fixed assets
Assets acquired for development
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2023 and 31 March 2024
11,630,949
5,500
11,636,449
Depreciation and impairment
At 1 April 2023
10,080,949
5,500
10,086,449
Reversal of past impairment
(50,000)
-
(50,000)
At 31 March 2024
10,030,949
5,500
10,036,449
Carrying amount
At 31 March 2024
1,600,000
-
1,600,000
At 31 March 2023
1,550,000
-
1,550,000

More information on impairment movements in the year is given in note 5.

JAMES WATT DOCK LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
7
Investment property
2024
£
Fair value
At 1 April 2023
2,750,000
Additions through external acquisition
2,448,546
Disposals
(30,000)
Net gains or losses through fair value adjustments
(2,153,546)
At 31 March 2024
3,015,000

The investment property were independently valued at 31 March 2024 by Jones Lang LaSalle Limited. The valuation was carried out in accordance with the Professional Standards, Valuation Technical and Performance Standards contained in the current RICS Valuation - Global Standards.

 

The members consider the fair value of the assets annually and confirm the above valuation remains a true reflection of the current market conditions.

 

8
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,370
32,391
Other debtors
96,512
152,098
100,882
184,489
9
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
12,046
275,894
Other creditors
482,327
135,852
494,373
411,746
10
Loans and other debts due to members

In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.

 

The loans due to members are secured over certain assets owned by the LLP and by bonds and floating charges over all the assets of the LLP. These are held by Riverside Inverclyde (Property Holdings) Limited and Peel Land and Property (James Watt Dock) Limited.

JAMES WATT DOCK LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
11
Capital commitments

Capital expenditure authorised by the members and contracted for is estimated to amount to £nil (2023: £1,414,236).

12
Related party transactions

Loans due to members comprise £5,601,552 (2023 - £5,532,900) due to Riverside Inverclyde (Property Holdings) Limited and £5,023,594 (2023 - £3,442,073) due to Peel Land and Property (James Watt Dock) Limited. Interest of £145,707 (2023 - £122,735) was payable by the LLP to Peel Land and Property (James Watt Dock) Limited.

 

Amounts owed to Peel Land and Property (James Watt Dock) Limited are charged interest at a rate of 3.5% per annum (2023 – 3.5%). This interest is treated as added to the loan sum outstanding with settlement due when cash resources become available.

 

Amounts owed to Riverside Inverclyde (Property Holdings) Limited are charged interest at a rate of 3.5% per annum (2023 – 3.5%). This interest is treated as added to the loan sum outstanding with settlement due when cash resources become available.

 

Interest of £193,652 (2023 - £187,103) was payable by the LLP to Riverside Inverclyde (Property Holdings) Limited.

 

Following settlement of unsecured creditor balances, the Riverside Priority Distribution amount, and accrued loan interest remaining unpaid, any remaining assets will be used towards settlement of the loans due to members on an equal basis.

 

During the year a management charge was applied by Peel Land and Property (James Watt Dock) Limited amounting to £19,786 (2023 - £7,136). At the year end, included within accruals, is the balance owed to Peel Land and Property (James Watt Dock) Limited totalling £86,694 (2023 - £67,509).

2024-03-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.210falsefalseSO3020542023-04-012024-03-31SO302054bus:PartnerLLP12023-04-012024-03-31SO302054bus:PartnerLLP22023-04-012024-03-31SO3020542024-03-31SO3020542022-04-012023-03-31SO302054bus:LimitedLiabilityPartnershipLLP2023-04-012024-03-31SO302054bus:FRS1022023-04-012024-03-31SO302054bus:Audited2023-04-012024-03-31SO302054bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP