Company registration number SC768874 (Scotland)
ADCL PROPERTIES LTD
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024
PAGES FOR FILING WITH REGISTRAR
ADCL PROPERTIES LTD
COMPANY INFORMATION
Directors
Allan Kennedy
(Appointed 10 May 2023)
Tracey Stewart
(Appointed 10 May 2023)
Secretary
Tracey Stewart
Company number
SC768874
Registered office
Kirkton Enterprise Centre
Sir William Smith Road
Arbroath
Angus
Scotland
DD11 3RD
Auditor
Findlays Audit Limited
11 Dudhope Terrace
Dundee
DD3 6TS
ADCL PROPERTIES LTD
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 10
ADCL PROPERTIES LTD
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 1 -
2024
Notes
£
£
Fixed assets
Tangible assets
4
91,660
Investment property
5
4,817,365
4,909,025
Current assets
Debtors
6
188,840
Cash at bank and in hand
2,354
191,194
Creditors: amounts falling due within one year
7
(3,773,954)
Net current liabilities
(3,582,760)
Total assets less current liabilities
1,326,265
Creditors: amounts falling due after more than one year
8
(529,824)
Provisions for liabilities
(92,370)
Net assets
704,071
Capital and reserves
Called up share capital
200
Revaluation reserve
9
539,704
Profit and loss reserves
10
164,167
Total equity
704,071

The notes on pages 3 to 10 form part of these financial statements.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

The financial statements were approved by the board of directors and authorised for issue on 7 May 2025 and are signed on its behalf by:
Tracey Stewart
Director
Company registration number SC768874 (Scotland)
ADCL PROPERTIES LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2024
- 2 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 10 May 2023
-
0
-
0
-
0
-
Period ended 31 August 2024:
Profit and total comprehensive income
-
-
164,167
164,167
Issue of share capital
200
-
-
200
Other movements
-
539,704
-
539,704
Balance at 31 August 2024
200
539,704
164,167
704,071

The notes on pages 3 to 10 form part of these financial statements.

ADCL PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024
- 3 -
1
Accounting policies
Company information

ADCL Properties Ltd is a private company limited by shares incorporated in Scotland. The registered office is Kirkton Enterprise Centre, Sir William Smith Road, Arbroath, Angus, Scotland, DD11 3RD.

1.1
Reporting period

The first accounting period for ADCL Properties Ltd, incorporated on 10th May 2023, will run from the incorporation date to 31st August 2024, covering a 15-month period, in accordance with the provisions of FRS 102. The company did not commence trading until 1st September 2023.

1.2
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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.3
Turnover

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.

Rental income is recognised on a straight-line basis over the term of the lease, unless another systematic and rational basis more accurately reflects the time pattern in which the use of the leased property is consumed. Rental income is recognised as it becomes receivable under the terms of the lease agreement. Where there are incentives or rent-free periods, these are spread over the term of the lease on a straight-line basis. Any amounts due but not yet received at the balance sheet date are recognised as receivables

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.

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:

Plant and equipment
20% Reducing Balance

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.

ADCL PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 4 -
1.5
Investment property

Investment property is property held to earn rental income and/or for capital appreciation. Investment property is initially recognised at cost, including transaction costs.

 

Subsequent to initial recognition, investment property is measured using the revaluation model. Under this model, investment property is revalued to its fair value at each reporting date. Fair value is determined by an external, independent valuer or based on market evidence. The revaluation is carried out at regular intervals to ensure that the carrying amount does not differ materially from its fair value at the balance sheet date.

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).

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset 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
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.

1.8
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.

ADCL PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 5 -
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.

1.9
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.

1.10
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.

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.

ADCL PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 6 -
1.11
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.

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Valuation of Investment Properties

Valuation of investment properties is considered a significant accounting estimate due to the number of properties held and the overall materiality to the financial statements. External revaluations were carried out for all investment properties in November 2023 - the directors believe that these values adequately reflect conditions as at 31 August 2024.

Depreciation

Tangible fixed assets are depreciated over a period to reflect their estimated useful lives. The applicability of the assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence.

Fixed assets are also assessed as to whether there are indictors of impairment. This assessment involves consideration of the economic viability of the purpose for which the asset is used.

3
Employees

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

2024
Number
Total
3
ADCL PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 7 -
4
Tangible fixed assets
Plant and equipment
£
Cost
At 10 May 2023
-
0
Additions
114,075
At 31 August 2024
114,075
Depreciation and impairment
At 10 May 2023
-
0
Depreciation charged in the Period
22,415
At 31 August 2024
22,415
Carrying amount
At 31 August 2024
91,660
5
Investment property
2024
£
Fair value
At 10 May 2023
-
0
Additions
4,817,365
At 31 August 2024
4,817,365

On 31st August 2023, investment properties with a total value of £3,977,500 were transferred to ADCL Properties Ltd from Angus Decorating Company Limited, as part of a corporate restructure. The investment properties, which consist of both residential and commercial units are now held by ADCL Properties Ltd for rental income and capital appreciation purposes.

 

Professional valuations were carried out in November 2023 on all of the company's investment properties by Graham & Sibbald, who are qualified chartered surveyors, on an open market value for existing use basis. The directors believe the valuations to be reflective of the current market value as at the year end.

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2024
£
Cost
4,208,207
Accumulated depreciation
-
Carrying amount
4,208,207
ADCL PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 8 -
6
Debtors
2024
Amounts falling due within one year:
£
Trade debtors
80,763
Amounts owed by group undertakings
200
Other debtors
94,344
175,307
2024
Amounts falling due after more than one year:
£
Other debtors
13,533
Total debtors
188,840
7
Creditors: amounts falling due within one year
2024
£
Bank loans
137,956
Trade creditors
30,358
Amounts owed to group undertakings
3,468,113
Corporation tax
44,410
Other taxation and social security
8,456
Other creditors
84,661
3,773,954
8
Creditors: amounts falling due after more than one year
2024
£
Bank loans and overdrafts
529,824

Freehold land and buildings with a carrying amount of £1,398,750 have been pledged as security for specific borrowings of the company and are subject to fixed charges. The company is not permitted to use these assets as security for other borrowings or dispose of them without lender consent. In addition, The Royal Bank of Scotland Plc holds a floating charge over all present and future assets and undertakings of the company as general security for its facilities.

ADCL PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 9 -
9
Revaluation reserve
2024
£
At the beginning of the Period
-
0
Other movements
539,704
At the end of the Period
539,704

The company holds £539,704 in a non-distributable revaluation reserve. This includes all current and prior period gains/losses on revaluation of investment properties and any deferred tax adjustment in connection therewith.

10
Profit and loss reserves
2024
£
At the beginning of the Period
-
0
Profit for the Period
164,167
At the end of the Period
164,167
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 is unqualified and includes the following:

Opinion

In our opinion the financial statements:

Senior Statutory Auditor:
Lesley Campbell, BA, C.A.
Statutory Auditor:
Findlays Audit Limited
Date of audit report:
7 May 2025
12
Operating lease commitments
Lessor
ADCL PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
12
Operating lease commitments
(Continued)
- 10 -

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

2024
£
1,446,402
13
Parent company

ADCL Properties Ltd is a wholly owned subsidiary of ADCL Holdings Ltd, a company registered in Scotland. The ultimate controlling party is ADCL Holdings Ltd, which holds 100% of the issued share capital of ADCL Properties Ltd. The registered office of ADCL Holdings Ltd is Kirkton Enterprise Centre, Sir William Smith Road, Arbroath, DD11 3RD.

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