Company Registration No. SC091421 (Scotland)
OGILVIE HOMES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
OGILVIE HOMES LIMITED
COMPANY INFORMATION
Directors
J McDade
D H Ogilvie
J F Watson
R W Johnston
I Welsh
(Appointed 1 January 2024)
J Leece                                                 (Appointed 1 January 2024)
Secretary
J F Watson
Company number
SC091421
Registered office
Ogilvie House
200 Glasgow Road
Stirling
FK7 8ES
Auditor
Johnston Carmichael LLP
227 West George Street
Glasgow
G2 2ND
OGILVIE HOMES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of income and retained earnings
10
Balance sheet
11
Notes to the financial statements
12 - 24
OGILVIE HOMES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report for the year ended 30 June 2024.

Review of the Business

The principal activities of the company are private and affordable residential property development.

The company has enjoyed further success in the year to 30 June 2024 and has continued to perform strongly even with a subdued marketplace. Actual sales were below forecast at 150 plots (22/23: 205).

The results for the company record a turnover slightly below business expectations at £43.3m (22/23: £50.2m) and profit before taxation for the year was in line with expectation at £4.09m (22/23: £4m). The average private home value in the year was £293,000, an increase of 13% on the previous year. The increase is attributable to location and scale of properties constructed with actual house values remaining static. The company's net assets increased to £12.7m (2023: £10.2m) representing profit for the year and total comprehensive income net of dividends declared.

In July 2024 the company was awarded our sixth consecutive ROSPA Gold Award in recognition of our health and safety performance. We are proud of our continued strong health and safety statistics but remain focused on health and safety as a daily priority in our workplaces

The company continues to focus on land investment with a clear strategy in place to ensure that we secure the right opportunities at the right value for the business to progress. The company holds the rights to 600 units with planning and option sites for 1,630 units in addition to other land owned.

Principal Risks and Uncertainties

The following are considered to be the principal risks and uncertainties affecting the company:

 

The directors are confident that, despite the planning, economic, inflationary and funding pressures the housing industry has continued to face, the company is strongly positioned and well placed for the future.

Financial Risk Management

The company’s interest, income and expenses are affected by any movement in interest rates. The directors do not consider it necessary to undertake any active hedging of this risk. The company's financial risk management objectives, policies and exposure to financial risks are not considered material for the assessment of the groups assets, liabilities, financial position or result for the year and as such, no further disclosure is considered necessary.

Key Performance Indicators

The company has continuing interest in the acquisition of a number of sites and has a house building land bank/options of 2,614 units (2023: 2,045 units) considered to be reasonable at the year end and, therefore, the directors are confident the company will trade profitability going forward.

Going Concern

The Directors have undertaken an exercise to review the appropriateness of the continued use of the going concern basis. Details of this can be found at note 1 to the financial statements.

After making suitable enquiries, the Directors have a reasonable expectation that the company has adequate resources to meet its liabilities as they fall due for at least the next twelve months. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

OGILVIE HOMES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Section 172 (1) Statement

Ogilvie Homes is part of the Ogilvie Group of companies and as a family owned and managed business aims for long term success of the company for the benefit of all its stakeholders. This is not simply limited to its shareholders but includes its employees, customers and supply chain and encompasses its responsibility to the environment and the local communities in which it operates.

 

There is regular communication with all our employees via our quarterly in-house newsletter Ogilvie Outlook and active promotion of regular meetings with local management and employees to allow a free flow of information and ideas. We fully support Graduate and Apprentice recruitment and recently launched a 'Mental Health Awareness' initiative to all employees which included the launch of an Employee Assistance Program “Be Supported” through AXA which is a free confidential helpline available to all employees and their families.

We have a substantial and valued supply chain with whom we engage. The Directors of all Group companies promote mutually beneficial reciprocal business throughout all our operating divisions thereby optimising performance of all contributors. At all times we consider first class customer service to be integral to our operations thereby fostering good working relationships and trust with all our clients.

 

The health & safety of our employees, contractors and the general public is of prime importance to the Group and is essential to the efficient operation of the business. The responsibility for safety at work rests upon all sectors of management and the Group will ensure that its policies and procedures are adhered to. The Group expects that all employees always exercise reasonable care for their own and others’ health & safety.

 

We are very aware of the potential impact of our operations may have on the environment and are committed to sustainable working practices to minimise the impact and enhance the environment for the future.

On behalf of the board

J F Watson
Director
19 December 2024
OGILVIE HOMES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company continues to be that of housing development.

Results and dividends

The results for the year are set out on page 10. The directors approved payment of dividends during the year of £500k (2023: £1,000k).

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

J McDade
D H Ogilvie
J F Watson
R W Johnston
E Ross
(Resigned 29 November 2024)
I Welsh
(Appointed 1 January 2024)
J Leece
(Appointed 1 January 2024)
Disabled persons

Disabled persons are employed by the company where a suitable vacancy occurs. The aptitudes and abilities of disabled persons are not easily met in those aspects of the company's business involving site work, however, they are given full and fair consideration where vacancies arise in more suitable areas such as joinery. Every effort is made to ensure that employees who become injured or disabled in the course of their employment are given training so that they can continue employment with the company.

Employee involvement

During the year the policy of providing employees with information about the company has been continued through the newsletter 'Ogilvie Outlook' in which employees have also been encouraged to present their suggestions and views on the company's performance. Regular meetings are held between local management and employees to allow a free flow of information and ideas. Employees participate directly in the success of the business through the company's profit-sharing schemes.

Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

Streamlined energy and carbon reporting requirements have been disclosed on a group basis within the financial statements of the company's ultimate parent, Ogilvie Group Limited, which includes the relevant energy and carbon reporting information for the company. As such, the company is not obliged and has not reported their energy and carbon reporting information here. The financial statements of Ogilvie Group Limited are accessible via UK Companies House.

Information contained within the Strategic Report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management and future developments to the extent this is considered applicable.

OGILVIE HOMES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
J F Watson
Director
19 December 2024
OGILVIE HOMES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

OGILVIE HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF OGILVIE HOMES LIMITED
- 6 -
Opinion

We have audited the financial statements of Ogilvie Homes Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of income and retained earnings, the balance sheet 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 responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

OGILVIE HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF OGILVIE HOMES LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

 

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

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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 for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance or support available.

 

All engagement team members were briefed on relevant laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

OGILVIE HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF OGILVIE HOMES LIMITED
- 8 -

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

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

 

 

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of submitted returns, relevant correspondence with regulatory bodies and board meeting minutes.

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each risk We identified a heightened fraud risk in relation to revenue recognition and management override of controls.

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

 

 

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

OGILVIE HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF OGILVIE HOMES LIMITED
- 9 -

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member for our audit work, for this report, or for the opinions we have formed.

Allison Dalton (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
19 December 2024
Statutory Auditor
227 West George Street
Glasgow
G2 2ND
OGILVIE HOMES LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£'000
£'000
Turnover
3
43,311
50,193
Cost of sales
(34,826)
(41,797)
Gross profit
8,485
8,396
Administrative expenses
(3,539)
(3,656)
Operating profit
4
4,946
4,740
Interest payable and similar expenses
8
(937)
(731)
Profit before taxation
4,009
4,009
Tax on profit
9
(1,004)
(1,043)
Profit for the financial year and total comprehensive income
3,005
2,966
Retained earnings brought forward
10,197
8,231
Dividends
10
(500)
(1,000)
Retained earnings carried forward
12,702
10,197

The statement of income and retained earnings has been prepared on the basis that all operations are continuing operations.

OGILVIE HOMES LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 11 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
11
232
225
Investments
12
507
507
739
732
Current assets
Stocks
14
37,447
34,070
Debtors
15
17,609
8,213
55,056
42,283
Creditors: amounts falling due within one year
16
(43,059)
(32,784)
Net current assets
11,997
9,499
Total assets less current liabilities
12,736
10,231
Provisions for liabilities
Deferred tax liability
17
34
34
(34)
(34)
Net assets
12,702
10,197
Capital and reserves
Profit and loss reserves
20
12,702
10,197
The financial statements were approved by the board of directors and authorised for issue on 19 December 2024 and are signed on its behalf by:
J F Watson
Director
Company Registration No. SC091421
OGILVIE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information

Ogilvie Homes Limited is a private company limited by shares incorporated and domiciled in Scotland. The registered office and principal location is Ogilvie House, 200 Glasgow Road, Stirling, FK7 8ES.

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.

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 £'000.

The financial statements have been prepared under the historical cost convention.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

The company does not disclose transactions with members of the same group that are wholly owned and has taken the exemption provided by paragraph 33.1A of FRS 102.

 

Ogilvie Homes Limited is a wholly owned subsidiary of Ogilvie Group Limited and the results of Ogilvie Homes Limited are included in the consolidated financial statements of Ogilvie Group Limited which are available from the Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ.

1.2
Going concern

The company manages its day-to-day and medium-term funding requirements through a revolving credit facility (RCF), which is available to entities across the Ogilvie Group. This revolving credit facility is forecast to provide sufficient liquidity to finance monthly cash flows in the ordinary course of business for at least 12 months from the approval of these financial statements. true

 

Consequently, the directors are confident that the company will have sufficient funds to continue to meets its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

OGILVIE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
1.3
Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured.

Turnover from house sales is recognised by reference to the date of sale which is taken as the date a house is considered substantially complete following signing of the missives.

The sale proceeds of part-exchange properties are included as an adjustment within cost of sales for any margin realised, as the directors view these transactions as a means of conducting the original new build house sale.

Profit on construction contracts is taken as the work is carried out if the outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to the reflect the proportion of work carried out, by recording turnover and related costs of labour and materials as contract activity progresses. Revenues from variation on contracts are recognised only when they are considered to be reasonably certain. Full provision is made for losses on all contracts in the year in which they are first foreseen and are recognised in the profit and loss account.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

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

Fixtures and fittings
Straight line over 5 years

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 the profit and loss account.

1.5
Fixed asset investments

Interests in subsidiaries 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 the profit and loss account.

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.

1.6
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).

OGILVIE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.7
Stocks

Stocks and work in progress, including land, is stated at the lower of cost and net realisable value. Cost comprises raw materials and direct labour based on a normal level of activity. Net realisable value is based on estimated selling price less anticipated costs to completion. Provision is made for all foreseeable losses. 

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 the statement of income and retained earnings. Reversals of impairment losses are also recognised in the statement of income and retained earnings.

Development land and land options are included at cost. If, or when, it becomes apparent that an option on land relating to a potential development site will not receive the necessary approvals, the options will be charged in full to the statement of income and retained earnings or written down to its estimated recoverable value.

Part exchange properties are initially recognised at cost, and subsequently held at the lower of cost and net realisable value. Net realisable value is based on estimated selling price less costs of disposal.

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 and 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 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.

Impairment of financial assets

Financial assets 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 the statement of income and retained earnings.

 

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 the statement of income and retained earnings.

OGILVIE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
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 company 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, and amounts owed to group undertakings, 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 company’s contractual obligations expire or are discharged or cancelled.

1.10
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.

1.11
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 statement of income and retained earnings 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.

OGILVIE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
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 statement of income and retained earnings, 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.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

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.

OGILVIE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
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.

Cost allocaton and assessment of costs to come

In order to allocate an appropriate level of costs to plots sold, management must estimate the total expected costs for each development site. The nature of these estimates are inherently uncertain and rely on regular review and updates by individuals within the company who have the relevant qualifications and experience to do so.

Profit recognition on constructon contracts

The values recognised in relation to construction contracts that are in progress at the balance sheet date involve estimates on the proportion of work carried out on a contract by contract basis. Profits on these contracts are calculated on a prudent basis to reflect turnover and related costs as the the contract progresses along with estimates around expected costs to complete. Profit is only recognised when the final outcome of each project is considered to be assessed with reasonable certainty. The company regularly reviews these estimates to ensure they reflect the latest known position.

Carrying value of work-in-progress

Inventories of land and development work in progress are stated at the lower of cost and net realisable value. In assessing the carrying value, the company is required to estimate future selling price and costs to complete. These assessments, by their nature, include an element of uncertainty and the company undertakes regular reviews factoring in considerations of general economic conditions and anticipated completion dates alongside latest prices and market information.

3
Turnover and other revenue
2024
2023
£'000
£'000
Turnover analysed by class of business
Revenue from sale of private properties
38,400
44,988
Revenue from construction contracts
4,911
5,205
43,311
50,193

All revenue is generated within the United Kingdom.

4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£'000
£'000
Depreciation of owned tangible fixed assets
84
48
Operating lease charges
115
115
OGILVIE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the company
26
20
For other services
Taxation compliance services
3
3
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Administration and construction
64
68

Their aggregate remuneration comprised:

2024
2023
£'000
£'000
Wages and salaries
3,433
3,506
Social security costs
365
382
Pension costs
310
324
4,108
4,212
7
Directors' remuneration
2024
2023
£'000
£'000
Remuneration for qualifying services
725
563
Company pension contributions to defined contribution schemes
104
107
829
670

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2023 - 3).

OGILVIE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
7
Directors' remuneration
(Continued)
- 19 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£'000
£'000
Remuneration for qualifying services
268
262
Company pension contributions to defined contribution schemes
49
66
8
Interest payable and similar expenses
2024
2023
£'000
£'000
Interest on bank overdrafts
937
392
Interest payable to group undertakings
-
0
339
937
731
9
Taxation
2024
2023
£'000
£'000
Current tax
Adjustments in respect of prior periods
-
0
48
Group tax relief
1,004
957
Total current tax
1,004
1,005
Deferred tax
Origination and reversal of timing differences
-
0
38
Total tax charge
1,004
1,043
OGILVIE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Taxation
(Continued)
- 20 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£'000
£'000
Profit before taxation
4,009
4,009
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
1,002
822
Tax effect of expenses that are not deductible in determining taxable profit
1
1
Adjustments in respect of prior years
-
0
48
Group relief claimed net of payments made to fellow group companies
-
0
172
Fixed asset differences
1
(7)
Remeasurement of deferred tax
-
0
7
Taxation charge for the year
1,004
1,043

A change in the UK Corporation tax rate to 25% took effect from 1 April 2023.

10
Dividends
2024
2023
£'000
£'000
Dividends paid
500
1,000
OGILVIE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
11
Tangible fixed assets
Fixtures and fittings
£'000
Cost
At 1 July 2023
377
Additions
111
Disposals
(25)
At 30 June 2024
463
Depreciation and impairment
At 1 July 2023
152
Depreciation charged in the year
84
Eliminated in respect of disposals
(5)
At 30 June 2024
231
Carrying amount
At 30 June 2024
232
At 30 June 2023
225
12
Fixed asset investments
2024
2023
Notes
£'000
£'000
Investments in subsidiaries
13
507
507
13
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Freedom Homes (Stirling) Limited
200 Glasgow Road, Stirling, FK7 8ES
House Builders
Ordinary
100.00
14
Stocks
2024
2023
£'000
£'000
Land held for development
5,773
8,683
Work in progress
31,674
25,387
37,447
34,070
OGILVIE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
15
Debtors
2024
2023
Amounts falling due within one year:
£'000
£'000
Trade debtors
16,625
7,080
Amounts owed by group undertakings
-
0
243
Other debtors
357
393
Prepayments and accrued income
504
280
17,486
7,996
2024
2023
Amounts falling due after more than one year:
£'000
£'000
Trade debtors
123
217
Total debtors
17,609
8,213

In the prior year, amounts owed by group undertakings were unsecured, interest free, had no fixed date of repayment and were repayable on demand.

16
Creditors: amounts falling due within one year
2024
2023
£'000
£'000
Bank loans and overdrafts
34,385
20,518
Trade creditors
5,680
7,337
Amounts owed to group undertakings
1,945
3,681
Taxation and social security
174
161
Other creditors
64
50
Accruals and deferred income
811
1,037
43,059
32,784

The bank overdraft is secured by a floating charge granted in favour of Barclays Bank plc.

 

Amounts owed to group undertakings are unsecured, interest free, had no fixed date of repayment and are repayable on demand.

 

OGILVIE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£'000
£'000
Accelerated capital allowances
39
39
Other timing differences
(5)
(5)
34
34
There were no deferred tax movements in the year.
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
310
324

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
100
100
100
100

The numbers are stated as the full amount and not in round thousands.

 

The company has one class of ordinary shares which carry full voting rights but no right to fixed income or repayment of capital. Distributions are at the discretion of the company.

20
Profit and loss reserves

Profit and loss reserves represent accumulated comprehensive income or expenditure for the year and prior periods less dividends paid.

21
Financial commitments, guarantees and contingent liabilities

The company has a contingent liability for the overdrafts of other group undertakings which it has guaranteed without limit.

OGILVIE HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£'000
£'000
Within one year
118
115
Between two and five years
139
125
257
240
23
Directors' transactions

During the year, the company incurred sales of £nil (2023: £100k) with Mr D Ogilvie, director.

24
Ultimate controlling party

The company's immediate parent undertaking is Ogilvie Group Limited, a company registered in Scotland. This is the only parent undertaking for which group financial statements are drawn up and of which the company is a member. Copies of Ogilvie Group Limited's financial statements can be obtained from the Registrar of Companies, Companies House, Crown Way, Cardiff CF14 3UZ.

 

The directors consider that D H Ogilvie is the company's ultimate controlling party by virtue of his office and his shareholding through Ogilvie Group Limited.

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