Company registration number SC631736 (Scotland)
Michelin Scotland Innovation Parc Limited
financial statements
for the year ended 31 March 2024
Pages for filing with registrar
Michelin Scotland Innovation Parc Limited
Contents
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
Michelin Scotland Innovation Parc Limited
Balance sheet
as at 31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
516,751
460,005
Investment property
5
16,976,614
13,650,000
17,493,365
14,110,005
Current assets
Debtors
6
723,901
557,589
Cash at bank and in hand
3,643,240
6,282,104
4,367,141
6,839,693
Creditors: amounts falling due within one year
7
(4,964,969)
(7,369,755)
Net current liabilities
(597,828)
(530,062)
Total assets less current liabilities
16,895,537
13,579,943
Provisions for liabilities
8
(4,246,370)
(3,414,665)
Net assets
12,649,167
10,165,278
Capital and reserves
Called up share capital
9
3
3
Profit and loss reserves
10
12,649,164
10,165,275
Total equity
12,649,167
10,165,278

The directors of the company have elected not to include a copy of the profit and loss account 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 7 March 2025 and are signed on its behalf by:
Hamish Rowan
Director
Company registration number SC631736 (Scotland)
Michelin Scotland Innovation Parc Limited
Statement of changes in equity
for the year ended 31 March 2024
- 2 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022
3
1,575,000
7,413,345
8,988,348
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
1,176,930
1,176,930
Transfers
-
(1,575,000)
1,575,000
-
Balance at 31 March 2023
3
-
0
10,165,275
10,165,278
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
2,483,889
2,483,889
Balance at 31 March 2024
3
-
0
12,649,164
12,649,167
Michelin Scotland Innovation Parc Limited
Notes to the financial statements
for the year ended 31 March 2024
- 3 -
1
Accounting policies
Company information

Michelin Scotland Innovation Parc Limited is a private company limited by shares incorporated in Scotland. The registered office is Baldovie Road, Dundee, DD4 8UQ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies' regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

The financial statements have been prepared on a going concern basis. The directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. The directors have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios arising from the impact of inflation and interest rates, and wider economic conditions. This analysis also considers the effectiveness of available measures to assist in mitigating the impact, including post year end funding and support. true

Based on these assessments and having regard to the resources available to the company, including the ongoing financial support of the group, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.

1.3
Turnover

Rental income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Rental income is accrued on a time basis, by reference to the lease/rental agreement.

Grants and funding are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.4
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.

Michelin Scotland Innovation Parc Limited
Notes to the financial statements (continued)
for the year ended 31 March 2024
1
Accounting policies (continued)
- 4 -

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:

Freehold land and buildings
10-25 years - Straight line
Plant and equipment
2-12 years - Straight line
Fixtures and fittings
12 years - Straight line
Computers
2-5 years - Straight line

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 profit or loss.

1.5
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.

1.6
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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.

Michelin Scotland Innovation Parc Limited
Notes to the financial statements (continued)
for the year ended 31 March 2024
1
Accounting policies (continued)
- 5 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Michelin Scotland Innovation Parc Limited
Notes to the financial statements (continued)
for the year ended 31 March 2024
1
Accounting policies (continued)
- 6 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
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.

1.11
Retirement benefits

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

2
Exceptional items
2024
2023
£
£
Income
Site clear-up recharge income
937,023
-
Expenditure
Site clear-up expenditure
937,023
-

During the year the company incurred expenditure in relation to the clear up of hazardous materials on the site. These costs were recharged to the previous occupiers of the site and fully recovered under the original site transfer agreement.

Michelin Scotland Innovation Parc Limited
Notes to the financial statements (continued)
for the year ended 31 March 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
20
19
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2023
332,941
238,753
571,694
Additions
-
0
103,049
103,049
At 31 March 2024
332,941
341,802
674,743
Depreciation and impairment
At 1 April 2023
2,208
109,481
111,689
Depreciation charged in the year
1,006
45,297
46,303
At 31 March 2024
3,214
154,778
157,992
Carrying amount
At 31 March 2024
329,727
187,024
516,751
At 31 March 2023
330,733
129,272
460,005
Michelin Scotland Innovation Parc Limited
Notes to the financial statements (continued)
for the year ended 31 March 2024
- 8 -
5
Investment property
2024
£
Fair value
At 1 April 2023
13,650,000
Additions
3,950,013
Revaluations
(623,399)
At 31 March 2024
16,976,614

Investment property comprises the former Michelin site at Baldovie Road, Dundee, DD4 8UQ. The fair value of the site when it was transferred to the company amounted to £2,100,000. This was arrived at on the basis of a valuation carried out on 30 November 2020 by CBRE Chartered Surveyors.

 

During the year to 31 March 2023, a valuation was carried out by Ryden LLP, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The fair value of the investment property was deemed to be £13,650,000.

 

During the current year, a further valuation was carried out on 31 March 2024 to reflect the value of works completed on elements of the site in the year. This gave the site a value of £15,860,000 across the two valuations. Amounts included in the investment property carrying value over and above this valuation reflect further improvement works undertaken in the year to 31 March 2024 on areas of the site not covered by the valuation in the current year.

 

In the opinion of the directors these valuations represent an accurate fair value as 31 March 2024.

6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
286,405
110,578
Other debtors
437,496
447,011
723,901
557,589
7
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
513,861
594,621
Corporation tax
11,019
5,732
Other taxation and social security
18,591
24,473
Other creditors
4,421,498
6,744,929
4,964,969
7,369,755
Michelin Scotland Innovation Parc Limited
Notes to the financial statements (continued)
for the year ended 31 March 2024
- 9 -
8
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
4,246,370
3,414,665

 

9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A share of £1 each
1
1
1
1
Ordinary B share of £1 each
1
1
1
1
Ordinary C share of £1 each
1
1
1
1
3
3
3
3

Each class of ordinary share carries one vote and is entitled to participate pari passu with each class of ordinary shares in any dividend or capital distribution.

10
Profit and loss reserves

Profit and loss reserves include all current period retained profits and losses.

11
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:
Blair Davidson
Statutory Auditor:
Henderson Loggie LLP
Date of audit report:
7 March 2025
12
Operating lease commitments
Lessor

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2024
2023
£
£
896,482
914,467
Michelin Scotland Innovation Parc Limited
Notes to the financial statements (continued)
for the year ended 31 March 2024
- 10 -
13
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
125,958
2,576,713
14
Related party transactions
Remuneration of key management personnel
2024
2023
£
£
Aggregate compensation
359,870
339,748
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Recharged costs
2024
2023
£
£
Entities with control, joint control or significant influence over the company
937,023
9,660
Grant funding
Rental and other income
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
4,724,126
6,012,208
95,440
57,341

Grant funding received in the year amounting to £4,644,999 (2023 - £6,012,208) has initially been included in deferred income. This consists of £4,269,000 (2023 - £5,231,000) from Michelin Tyre Plc, £Nil (2023 - £24,119) from Dundee City Council and £375,999 (2023 - £757,089) from Scottish Enterprise. Of the total grant funding from these entities £6,943,682 (2023 - £13,172,215) has been recognised as income in the year. A further £79,127 was recognised directly as income in the year.

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
25,258
980
Michelin Scotland Innovation Parc Limited
Notes to the financial statements (continued)
for the year ended 31 March 2024
- 11 -
15
Events after the reporting date

J&D Wilkie Limited acquired a majority shareholding in Michelin Scotland Innovation Parc Limited subsequent to the year end on 18 December 2024. This acquisition results in J&D Wilkie being the controlling interest in Michelin Scotland Innovation Parc Limited as detailed in note 16.

16
Parent company

The ultimate controlling party of Michelin Scotland Innovation Parc Limited is J&D Wilkie Limited.

2024-03-312023-04-01falsefalsefalse07 March 2025CCH SoftwareCCH Accounts Production 2024.310No description of principal activityGregory ColganDerek ShawAlexander LawJohn ReidHamish RowanSC6317362023-04-012024-03-31SC6317362024-03-31SC6317362023-03-31SC631736core:LandBuildings2024-03-31SC631736core:OtherPropertyPlantEquipment2024-03-31SC631736core:LandBuildings2023-03-31SC631736core:OtherPropertyPlantEquipment2023-03-31SC631736core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-31SC631736core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-31SC631736core:CurrentFinancialInstruments2024-03-31SC631736core:CurrentFinancialInstruments2023-03-31SC631736core:ShareCapital2024-03-31SC631736core:ShareCapital2023-03-31SC631736core:RetainedEarningsAccumulatedLosses2024-03-31SC631736core:RetainedEarningsAccumulatedLosses2023-03-31SC631736core:ShareCapital2022-03-31SC631736core:RevaluationReserve2022-03-31SC631736core:RetainedEarningsAccumulatedLosses2022-03-31SC631736core:RevaluationReserve2023-03-31SC631736core:RevaluationReserve2024-03-31SC631736core:ShareCapitalOrdinaryShares2024-03-31SC631736core:ShareCapitalOrdinaryShares2023-03-31SC631736bus:Director52023-04-012024-03-31SC631736core:RetainedEarningsAccumulatedLosses2022-04-012023-03-31SC6317362022-04-012023-03-31SC631736core:RetainedEarningsAccumulatedLosses2023-04-012024-03-31SC631736core:RevaluationReserve2022-04-012023-03-31SC631736core:LandBuildingscore:OwnedOrFreeholdAssets2023-04-012024-03-31SC631736core:PlantMachinery2023-04-012024-03-31SC631736core:FurnitureFittings2023-04-012024-03-31SC631736core:ComputerEquipment2023-04-012024-03-31SC631736core:LandBuildings2023-03-31SC631736core:OtherPropertyPlantEquipment2023-03-31SC6317362023-03-31SC631736core:LandBuildings2023-04-012024-03-31SC631736core:OtherPropertyPlantEquipment2023-04-012024-03-31SC631736core:WithinOneYear2024-03-31SC631736core:WithinOneYear2023-03-31SC631736core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntitycore:SaleOrPurchaseGoods2023-04-012024-03-31SC631736core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntitycore:SaleOrPurchaseGoods2022-04-012023-03-31SC631736bus:PrivateLimitedCompanyLtd2023-04-012024-03-31SC631736bus:SmallCompaniesRegimeForAccounts2023-04-012024-03-31SC631736bus:FRS1022023-04-012024-03-31SC631736bus:Audited2023-04-012024-03-31SC631736bus:Director12023-04-012024-03-31SC631736bus:Director22023-04-012024-03-31SC631736bus:Director32023-04-012024-03-31SC631736bus:Director42023-04-012024-03-31SC631736bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP