Company Registration No. SC679467 (Scotland)
Whiteburn Viewforth Development Limited
Financial statements
for the year ended 31 May 2024
Pages for filing with the registrar
Whiteburn Viewforth Development Limited
Contents
Page
Statement of financial position
2
Statement of changes in equity
3
Notes to the financial statements
4 - 9
Whiteburn Viewforth Development Limited
Directors' report
For the year ended 31 May 2024
1
The directors present their annual report and financial statements for the year ended 31 May 2024.
Principal activities
The principal activity of the company was that of property development.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
John Shepherd
Eve McCurrich
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.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
John Shepherd
Director
27 February 2025
Whiteburn Viewforth Development Limited
Statement of financial position
As at 31 May 2024
2
2024
2023
Notes
£
£
£
£
Current assets
Stocks
3,868,574
5,771,733
Debtors
4
10,015
162,470
Cash at bank and in hand
10,280
76,526
3,888,869
6,010,729
Creditors: amounts falling due within one year
5
(1,023,057)
(3,484,240)
Net current assets
2,865,812
2,526,489
Creditors: amounts falling due after more than one year
6
(2,173,361)
(2,040,543)
Net assets
692,451
485,946
Capital and reserves
Called up share capital
7
20
20
Equity reserve
66,484
199,302
Profit and loss reserves
625,947
286,624
Total equity
692,451
485,946
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 27 February 2025 and are signed on its behalf by:
John Shepherd
Director
Company Registration No. SC679467
Whiteburn Viewforth Development Limited
Statement of changes in equity
For the year ended 31 May 2024
3
Share capital
Equity reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 June 2022
20
385,591
385,611
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
-
100,335
100,335
Transfer on repayment of interest-free loans
-
(186,289)
186,289
-
Balance at 31 May 2023
20
199,302
286,624
485,946
Year ended 31 May 2024:
Profit and total comprehensive income for the year
-
-
206,505
206,505
Transfer on repayment of interest-free loans
-
(132,818)
132,818
-
Balance at 31 May 2024
20
66,484
625,947
692,451
The equity reserve relates to the deemed capital element of the loans advanced to the company by the shareholder, those loans being interest-free and repayable after more than one year.
Whiteburn Viewforth Development Limited
Notes to the financial statements
For the year ended 31 May 2024
4
1
Accounting policies
Company information
Whiteburn Viewforth Development Limited is a private company limited by shares incorporated in Scotland. The registered office is Clock Tower, 1 Jackson's Entry, Edinburgh, EH8 8PJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The company is reliant on the continued support of its shareholders, Whiteburn Viewforth LLP and Housing Growth Partnership III GP LP, who have provided the £2,173,361 (2023: £2,040,543) loans from related parties which are detailed within Note 9 to the financial statements. These loans are interest-free and are repayable for a period outwith one year. The lenders have confirmed that repayment of these loans shall not be sought whilst this may damage the interests of any other creditor. The company has also prepared future financial projections which demonstrate the intention to repay these loans in full following the conclusion of the property development activities and subsequent property sales forecast. On this basis, the directors of the company have prepared the financial statements having adopted the going concern basis of accounting.
1.3
Turnover
Turnover includes the amounts received for the sale of homes in the grounds of the former Viewforth High School, Kirkcaldy.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of residential properties is recognised on completion.
1.4
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Whiteburn Viewforth Development Limited
Notes to the financial statements (continued)
For the year ended 31 May 2024
1
Accounting policies (continued)
5
1.5
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.
1.6
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 statement of financial position 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, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.7
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.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Whiteburn Viewforth Development Limited
Notes to the financial statements (continued)
For the year ended 31 May 2024
1
Accounting policies (continued)
6
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
1.9
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.
1.10
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Critical accounting 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.
Whiteburn Viewforth Development Limited
Notes to the financial statements (continued)
For the year ended 31 May 2024
7
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
162,470
Other debtors
10,015
10,015
162,470
5
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
593,094
3,115,598
Trade creditors
283,971
274,106
Corporation tax
68,835
24,699
Other taxation and social security
20,851
Other creditors
77,157
48,986
1,023,057
3,484,240
6
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
2,173,361
2,040,543
The company has granted Aldermore Bank plc a Scottish floating charge, and a standard security secured over the property assets of the former Viewforth High School, Loughborough Road, Kirkcaldy.
Whiteburn Viewforth Development Limited
Notes to the financial statements (continued)
For the year ended 31 May 2024
8
7
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
'A' Ordinary shares of 1p each
1,000
1,000
10
10
'B' Ordinary shares of 1p each
1,000
1,000
10
10
2,000
2,000
20
20
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Kenneth McDowell
Statutory Auditors:
Saffery LLP
Date of audit report:
27 February 2025
9
Contingent liability
Cross company guarantee:
On 10 January 2022, the group companies Whiteburn Developments Limited and Whiteburn Viewforth Development Limited mutually entered into an agreement of indemnity to act as a guarantor of the road bond to be issued in favour of ION Surety Company, S.A.. This guarantee pertains to the development of the Viewforth site being undertaken by Whiteburn Viewforth Development Limited. At the date of approval of the financial statements, the remaining potential obligation under this guarantee was £168,000 (2023: £317,000) in accordance with works certified at the development site.
Whiteburn Viewforth Development Limited
Notes to the financial statements (continued)
For the year ended 31 May 2024
9
10
Related party transactions
Included in Note 6 are amounts, after discount, due to Whiteburn Viewforth LLP, a partner who has joint-venture control of the company, of £686,524 (2023: £644,569). These loans are interest-free and are repayable for a period outwith one year.
Included in Note 6 are amounts, after discount, due to Housing Growth Partnership III GP LP, a partner who has joint-venture control of the company, of £1,486,837 (2023: £1,395,974). These loans are interest-free and are repayable for a period outwith one year.
During the period, the company has incurred a development management fee of £137,340 (2023: £137,340) and a finders fee of Nil (2023: Nil). Overall build costs have been recharged from Whiteburn Projects Limited in the year, totalling £3,347,938 (2023: £4,086,849), gross of recharges to Whiteburn Projects Limited of Nil (2023: £640,000). These sums were payable to Whiteburn Projects Limited, a company controlled by the company directors of Whiteburn Viewforth Development Limited. As at 31 May 2024, a total of £281,587 (2023: £273,026) was payable to Whiteburn Projects Limited.
The total sum contractually committed between Whiteburn Projects Limited and Whiteburn Viewforth Development Limited in respect of the transactions detailed above was £4,909,444, as at 31 May 2024.
11
Parent company
The company is a jointly controlled undertaking of Whiteburn Viewforth LLP, a limited liability partnership registered in Scotland. The registered office address is Clock Tower, 1 Jackson's Entry, Edinburgh, EH8 8PJ.
The company is a jointly controlled undertaking of Housing Growth Partnership III GP LP, a limited liability partnership registered in England & Wales. The registered office address is 25 Gresham Street, London, EC2V 7HN.
The directors of the company do not regard there to be a single party who can exercise ultimate control over the operations and activities of the company.