Company registration number SC072200 (Scotland)
ALLAN WATER DEVELOPMENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
ALLAN WATER DEVELOPMENTS LIMITED
COMPANY INFORMATION
Directors
Mr D C Stirling
Mr J Baxter
Mr B Robertson
Secretary
J Baxter
Company number
SC072200
Registered office
24b Kenilworth Road
Bridge of Allan
Stirling
Stirlingshire
United Kingdom
FK9 4DU
Auditor
Azets Audit Services
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
ALLAN WATER DEVELOPMENTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Income statement
8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 32
ALLAN WATER DEVELOPMENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -
The directors present the strategic report for the year ended 31 July 2024.
Fair review of the business
Despite a modest decline in individual house sales; largely attributable to several developments reaching the end of their build cycle; the group achieved a year-on-year increase in turnover, driven principally by the sale of land parcels. Looking forward, land sales are expected to play an increasingly significant role in the group’s growth strategy.
From an operational perspective, EBITDA for the year decreased to £2.18m and net profit before taxation decreased to £791k. These figures reflect the resilience of the group’s diversified business model and its ability to respond to evolving market dynamics.
Future developments
As the financial year closed, the group successfully concluded negotiations with multiple landowners. This has enabled us to commence work on two new development sites, with a further two projects in the advanced planning stages.
We remain actively engaged in discussions with landowners and brokers across Scotland. This ongoing engagement is a key part of our strategy to replenish the development pipeline, diversify geographical exposure, manage cost and risk, and enhance brand visibility.
Principal risks and uncertainties
Although interest rate reductions have yet to significantly stimulate the housing market, early indicators of recovery are evident at our new sites. Our sales team continues to collaborate with mortgage providers, with a strong focus on supporting first-time buyers.
Strong cash flow from land sales, coupled with a robust banking relationship, ensures sufficient funding to meet long-term budgetary requirements. Liquidity is managed through a prudent mix of cash reserves and related party financing.
The company is exposed to a variety of business risks including competition, both local and national; the Scottish and UK economy; liquidity risk and supply chain.
Economic Risk
Market conditions at both the local and national level are carefully monitored. The impact of interest rate fluctuations on buyer affordability is of particular concern. Continued engagement with policy developments, especially around planning reform, remains a priority.
While macroeconomic conditions continue to present challenges; particularly with interest rate volatility; there is cautious optimism within the sector. The newly elected Westminster Government’s early signals of planning reform and housebuilding support are encouraging, though material policy impact remains to be seen.
Encouragingly, the group has not encountered the skilled labour shortages widely reported across the construction industry, providing a competitive advantage in the timely delivery of new developments.
Liquidity Risk
The group maintains a balanced funding structure, combining retained cash with bank and related-party funding. This flexible approach enables effective working capital management and the ability to capitalise on new opportunities. Our joint venture partners continue to support our objectives, fully recognising the broader market environment.
Supply Chain
Our strong supplier network, developed over many years, remains a cornerstone of our operational success. Increased competition and improving supply conditions; particularly in imported goods; have resulted in modest cost reductions, aiding project margins.
ALLAN WATER DEVELOPMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 2 -
Key performance indicators
The group regularly monitors key performance indicators including turnover, gross profit, gross margin per development and EBITDA, and monitors competitors’ pricing strategies and market positioning on a monthly basis.
Mr J Baxter
Director
19 May 2025
ALLAN WATER DEVELOPMENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 July 2024.
Principal activities
The principal activity of the company and group continued to be that of construction of domestic properties.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D C Stirling
Mr J Baxter
Mr B Robertson
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Strategic report
The directors have truechosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group'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 exposure to risks and uncertainties.
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 auditor of the company 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 auditor of the company is aware of that information.
On behalf of the board
Mr J Baxter
Director
19 May 2025
ALLAN WATER DEVELOPMENTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 2024
- 4 -
The directors are responsible for preparing the Annual 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
ALLAN WATER DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALLAN WATER DEVELOPMENTS LIMITED
- 5 -
Opinion
We have audited the financial statements of Allan Water Developments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2024 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 July 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
ALLAN WATER DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALLAN WATER DEVELOPMENTS LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or 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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
ALLAN WATER DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALLAN WATER DEVELOPMENTS LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
This report is made solely to the company’s members, as a body, 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 members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
David Samborek (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
20 May 2025
Chartered Accountants
Statutory Auditor
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
ALLAN WATER DEVELOPMENTS LIMITED
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 JULY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
23,337,599
18,703,260
Cost of sales
(20,122,716)
(16,025,562)
Gross profit
3,214,883
2,677,698
Administrative expenses
(1,348,536)
(1,038,167)
Other operating income
270,279
717,702
Operating profit
4
2,136,626
2,357,233
Interest payable and similar expenses
8
(1,345,808)
(1,354,564)
Fair value gains and losses on investment properties
11
9,000,000
Profit before taxation
790,818
10,002,669
Tax on profit
9
(226,477)
(2,399,612)
Profit for the financial year
564,341
7,603,057
Profit for the financial year is attributable to:
- Owners of the parent company
388,133
7,440,574
- Non-controlling interests
176,208
162,483
564,341
7,603,057
ALLAN WATER DEVELOPMENTS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 9 -
2024
2023
£
£
Profit for the year
564,341
7,603,057
Other comprehensive income
-
-
Total comprehensive income for the year
564,341
7,603,057
Total comprehensive income for the year is attributable to:
- Owners of the parent company
388,133
7,440,574
- Non-controlling interests
176,208
162,483
564,341
7,603,057
ALLAN WATER DEVELOPMENTS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
163,012
104,801
Investment property
11
2,856,170
16,760,000
3,019,182
16,864,801
Current assets
Stocks
13
39,741,469
26,858,499
Debtors
14
8,350,408
4,816,747
Cash at bank and in hand
835,301
2,303,499
48,927,178
33,978,745
Creditors: amounts falling due within one year
15
(21,846,417)
(13,140,813)
Net current assets
27,080,761
20,837,932
Total assets less current liabilities
30,099,943
37,702,733
Creditors: amounts falling due after more than one year
16
(3,563,151)
(11,749,471)
Provisions for liabilities
Deferred tax liability
19
2,287,211
2,268,022
(2,287,211)
(2,268,022)
Net assets
24,249,581
23,685,240
Capital and reserves
Called up share capital
21
1,675,001
1,675,001
Profit and loss reserves
21,964,425
21,576,292
Equity attributable to owners of the parent company
23,639,426
23,251,293
Non-controlling interests
610,155
433,947
24,249,581
23,685,240
The financial statements were approved by the board of directors and authorised for issue on 19 May 2025 and are signed on its behalf by:
19 May 2025
Mr J Baxter
Director
Company registration number SC072200 (Scotland)
ALLAN WATER DEVELOPMENTS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2024
31 July 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
163,012
104,801
Current assets
Stocks
13
10,181,984
12,460,912
Debtors
14
5,757,576
7,010,440
Cash at bank and in hand
264,522
1,378,231
16,204,082
20,849,583
Creditors: amounts falling due within one year
15
(14,357,032)
(16,480,563)
Net current assets
1,847,050
4,369,020
Total assets less current liabilities
2,010,062
4,473,821
Creditors: amounts falling due after more than one year
16
(36,381)
(6,171)
Provisions for liabilities
Deferred tax liability
19
37,211
18,022
(37,211)
(18,022)
Net assets
1,936,470
4,449,628
Capital and reserves
Called up share capital
21
1,675,001
1,675,001
Profit and loss reserves
261,469
2,774,627
Total equity
1,936,470
4,449,628
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £2,513,158 (2023 - £2,139,297 loss).
These financial statements have been prepared 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 19 May 2025 and are signed on its behalf by:
19 May 2025
Mr J Baxter
Director
Company registration number SC072200 (Scotland)
ALLAN WATER DEVELOPMENTS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 12 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
Balance at 1 August 2022
1,675,001
14,135,718
15,810,719
271,464
16,082,183
Year ended 31 July 2023:
Profit and total comprehensive income
-
7,440,574
7,440,574
162,483
7,603,057
Balance at 31 July 2023
1,675,001
21,576,292
23,251,293
433,947
23,685,240
Year ended 31 July 2024:
Profit and total comprehensive income
-
388,133
388,133
176,208
564,341
Balance at 31 July 2024
1,675,001
21,964,425
23,639,426
610,155
24,249,581
ALLAN WATER DEVELOPMENTS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 August 2022
1,675,001
4,913,924
6,588,925
Year ended 31 July 2023:
Loss and total comprehensive income for the year
-
(2,139,297)
(2,139,297)
Balance at 31 July 2023
1,675,001
2,774,627
4,449,628
Year ended 31 July 2024:
Profit and total comprehensive income
-
(2,513,158)
(2,513,158)
Balance at 31 July 2024
1,675,001
261,469
1,936,470
ALLAN WATER DEVELOPMENTS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
26
(562,923)
8,572,605
Interest paid
(1,345,808)
(1,354,564)
Income taxes paid
(332,181)
(358,134)
Net cash (outflow)/inflow from operating activities
(2,240,912)
6,859,907
Investing activities
Purchase of tangible fixed assets
(102,190)
(3,195)
Proceeds on disposal of tangible fixed assets
13,710
112,028
Purchase of investment property
(856,170)
(5,760,000)
Amounts paid/(drawn) from directors loans
1,038,666
(611,694)
Net cash generated from/(used in) investing activities
94,016
(6,262,861)
Financing activities
Repayment of other loans
(986,149)
328,447
Proceeds of new bank loans
-
9,942,568
Repayment of bank loans
1,677,503
(11,391,607)
Payment of finance leases obligations
(21,871)
(142,379)
Net cash generated from/(used in) financing activities
669,483
(1,262,971)
Net decrease in cash and cash equivalents
(1,477,413)
(665,925)
Cash and cash equivalents at beginning of year
2,303,499
2,969,424
Cash and cash equivalents at end of year
826,086
2,303,499
Relating to:
Cash at bank and in hand
835,301
2,303,499
Bank overdrafts included in creditors payable within one year
(9,215)
-
ALLAN WATER DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 15 -
1
Accounting policies
Company information
Allan Water Developments Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 24b Kenilworth Road, Bridge of Allan, Stirling, Stirlingshire, United Kingdom, FK9 4DU.
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 £.
The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the intermediary parent company Allan Water Developments Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 July 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
ALLAN WATER DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Going concern
The directors are required to prepare the statutory financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business. In satisfaction of this responsibility the directors have considered the group's ability to meet its liabilities as they fall due.
The group meets its day to day working capital requirements through a revolving credit facility, related party funding and finance leases. The group closely monitors and manages its funding position and liquidity risk throughout the year to ensure that it has access to sufficient funds to meet forecast cash requirements.
The group's going concern assessment considers its principal risks, and is dependant on a number of factors including financial performance and access to funding facilities.
The group’s Revolving credit funding facility is subject to a financial covenant, which requires the group to meet a certain interest cover ratio, assessed at the year end date. At 31 July 2024, the group did not meet the financial covenant as required in the funding agreement, despite having met all debt servicing obligations throughout the year.
Due to the breach of covenant, the bank is contractually entitled to request immediate repayment of the outstanding funding facility amount. As such, the outstanding balance is presented as a current liability at 31 July 2024. The facility in place at the year end was already due to mature within 12 months of the reporting date.
Subsequent to the year end the group agreed a renewed £15m revolving credit facility with the bank, which runs to December 2027.
At the date of approval of the financial statements, the directors have communicated the covenant breach to the bank, which has not requested early repayment of the facility and has indicated its willingness to continue to support the group. The group continues to trade steadily subsequent to the year end; with discussions to sell further plots of land at advanced stages; and continues to meet all obligations as they fall due.
The current and future financial position of the group, its cash flows and liquidity position have been reviewed by the directors. The directors have prepared detailed financial projections for a period extending at least 12 months from the date of approval of these financial statements. Based on these projections, the directors confirm that the group require continued availability of a debt facility to ensure that the group has adequate resources with which to continue in operational existence for the foreseeable future and to meet its obligations as they fall due.
Taking all of the above into consideration, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover represents net invoiced sales of development properties and development projects, excluding value added tax.
Turnover on sales of development properties are recognised on conclusion of a sale except for projects that are subject to a pre-determined legally binding development contract. Such projects are accounted for as long term contracts.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
ALLAN WATER DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 17 -
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% on reducing balance
Fixtures and fittings
33% on reducing balance and 20% on reducing balance
Motor vehicles
25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
1.6
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
Property rented to a group entity is accounted for as tangible fixed assets.
1.7
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.8
Impairment of fixed assets
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
ALLAN WATER DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 18 -
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.
1.9
Stocks
Work in progress is shown at the lower of cost and net realisable value, after deducting amounts transferred to cost of sales and foreseeable losses.
Profit is taken on long term contracts when their outcome has been foreseen with reasonable certainty. In determining the amount of profit taken at the year end, the main facts considered are the experience of similar contracts and the estimated stage of completion. Anticipated losses are provided in full.
Cost includes all direct expenditure and, where appropriate, a proportion of fixed and variable overheads.
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.
1.10
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.
1.11
Financial instruments
The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
ALLAN WATER DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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 group 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 group 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.
On initial recognition, loans provided on an interest free basis are required to be booked at fair value. As there is no active market for the loans, the fair value is estimated by discounting the amount repayable to the present value using a market rate for a similar instrument. The difference arising between fair value and the nominal value on initial recognition is deemed as a capital contribution and taken directly to equity.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the group 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 group.
ALLAN WATER DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 20 -
1.13
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 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 group’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 income statement, 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 if, and only if, there is 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.
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
ALLAN WATER DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 21 -
1.17
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
Judgements and key sources of estimation uncertainty
In the application of the group’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.
Recognition of land sale
The Directors have exercised significant judgement in determining the timing of recognition of revenue in relation to the sale of land during the year ended 31 July 2024. Although legal title to the land did not pass to the purchaser until after the year end, the directors considered whether the significant risks and rewards of ownership had substantially transferred prior to year end in accordance with the requirements of FRS 102.
In making this judgement, the directors assessed the substance of the transaction, including the terms of the binding sale agreement, the company's completion of substantive performance obligations prior to year end which restricted the option for the buyer to rescind the contract, lack of effective control and continuing managerial involvement in the asset, and the buyers acceptance and therefore assumption of certain risks and rewards of ownership of the asset. The consideration was contractually agreed and no significant uncertainties remained regarding performance or the probability of return.
Based on this assessment, the directors concluded that it was appropriate to recognise revenue from the sale of the land in the year ended 31 July 2024, notwithstanding that legal title formally transferred post year end. The revenue and costs associated with the sale were £4.54m and £1.39m respectively.
Key sources of estimation uncertainty
Accounting for work in progress
Work in progress is carried at the lower of cost and net realisable value. Calculation of the net realisable value requires management to use estimates regarding future selling prices and other cost projections which include a degree of uncertainty, particularly in relation to projects in the early stages of development.
Management estimation is also required in the allocation of land and construction costs of a development to each individual plot sold, which is calculated based on forecast profit margins on each development and estimates on future costs and selling prices.
ALLAN WATER DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 22 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
23,337,599
18,703,260
All revenues were generated from the sale of completed residential properties and land sales.
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
22,734
47,134
Depreciation of tangible fixed assets held under finance leases
19,760
76,387
Profit on disposal of tangible fixed assets
(12,225)
(33,830)
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
38,000
35,923
Audit of the financial statements of the company's subsidiaries
15,500
15,852
53,500
51,775
For other services
Taxation compliance services
9,550
8,000
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
466,158
487,939
Company pension contributions to defined contribution schemes
23,587
18,500
489,745
506,439
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 2).
ALLAN WATER DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
6
Directors' remuneration
(Continued)
- 23 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
267,996
254,998
Company pension contributions to defined contribution schemes
1,321
-
7
Employees
The average monthly number of persons employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Employees
30
38
30
38
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,628,177
2,177,651
1,628,177
2,177,651
Social security costs
289,757
405,909
289,757
405,909
Pension costs
93,757
118,923
93,757
118,923
2,011,691
2,702,483
2,011,691
2,702,483
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,179,005
1,014,122
Other interest on financial liabilities
154,871
328,448
1,333,876
1,342,570
Other finance costs:
Interest on finance leases and hire purchase contracts
11,932
11,994
Total finance costs
1,345,808
1,354,564
ALLAN WATER DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 24 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
207,378
174,407
Adjustments in respect of prior periods
(90)
Total current tax
207,288
174,407
Deferred tax
Origination and reversal of timing differences
15,238
2,225,205
Adjustment in respect of prior periods
3,951
Total deferred tax
19,189
2,225,205
Total tax charge
226,477
2,399,612
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
£
£
Profit before taxation
790,818
10,002,669
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.01%)
197,705
2,101,561
Tax effect of expenses that are not deductible in determining taxable profit
3,820
4,285
Tax effect of income not taxable in determining taxable profit
(1,893,267)
Adjustments in respect of prior years
(90)
Permanent capital allowances in excess of depreciation
(20,750)
Depreciation on assets not qualifying for tax allowances
(214)
Other permanent differences
(528)
Deferred tax adjustments in respect of prior years
3,951
Deferred tax not recognised
379
355,982
Remeasurement of deferred tax for change in tax rates
20,712
35,416
Additional deduction for land remediation expenditure
1,817,127
Taxation charge
226,477
2,399,612
ALLAN WATER DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 25 -
10
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 August 2023
822,741
184,564
154,219
1,161,524
Additions
102,190
102,190
Disposals
(7,550)
(106,025)
(113,575)
At 31 July 2024
815,191
184,564
150,384
1,150,139
Depreciation and impairment
At 1 August 2023
743,118
160,826
152,779
1,056,723
Depreciation charged in the year
20,375
8,338
13,781
42,494
Eliminated in respect of disposals
(6,067)
(106,023)
(112,090)
At 31 July 2024
757,426
169,164
60,537
987,127
Carrying amount
At 31 July 2024
57,765
15,400
89,847
163,012
At 31 July 2023
79,623
23,738
1,440
104,801
Company
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 August 2023
822,741
184,564
154,219
1,161,524
Additions
102,190
102,190
Disposals
(7,550)
(106,025)
(113,575)
At 31 July 2024
815,191
184,564
150,384
1,150,139
Depreciation and impairment
At 1 August 2023
743,118
160,826
152,779
1,056,723
Depreciation charged in the year
20,375
8,338
13,781
42,494
Eliminated in respect of disposals
(6,067)
(106,023)
(112,090)
At 31 July 2024
757,426
169,164
60,537
987,127
Carrying amount
At 31 July 2024
57,765
15,400
89,847
163,012
At 31 July 2023
79,623
23,738
1,440
104,801
ALLAN WATER DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
10
Tangible fixed assets
(Continued)
- 26 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
32,730
42,694
32,730
42,694
Motor vehicles
55,658
55,658
88,388
42,694
88,388
42,694
11
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 August 2022
16,760,000
-
Additions through external acquisition
856,170
-
Transfers to held for sale
(14,760,000)
-
At 31 July 2024
2,856,170
-
One of the brought forward investment properties ceased to meet the definition of an investment property in the year and was transferred to stock accordingly. The fair value of the investment property was arrived at on the basis of a valuation carried out at 24 April 2023 by Savills Chartered Surveyors, who are not connected with the company. In line with FRS 102 this fair value at the date of the change in use has become the deemed cost for stock.
The fair value of the remaining investment property brought forward has been arrived at by directors on the basis of the most recent valuation carried out by Colliers Chartered Surveyors, 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 directors are satisfied that current market conditions have not materially impacted the value of the investment property.
The fair value of the investment property addition in the year has been arrived at on the basis of the amount paid for the property in the year, which was made on an open market value basis.
Subsequent to the year end, the group sold one of its investment properties for a consideration of £1.9m.
12
Subsidiaries
Details of the company's subsidiaries at 31 July 2024 are as follows:
ALLAN WATER DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
12
Subsidiaries
(Continued)
- 27 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Allan Water Construction Limited
(1)
Ordinary
100.00
-
Allan Water Homes Limited
(1)
Ordinary
100.00
-
Allan Water Limited
(1)
Ordinary
100.00
-
Silver Machines Limited
(1)
Ordinary
99.00
-
Allan Water Homes (Chryston) Limited
(1)
Ordinary
0
59.00
Allan Water Homes (Cambusbarron) Limited
(1)
Ordinary
0
62.00
(1) 24b Kenilworth Road, Bridge of Allan, Stirling, FK9 4DU.
13
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
39,741,469
26,858,499
10,181,984
12,460,912
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
131,808
135,579
89,878
114,555
Corporation tax recoverable
461,088
341,750
338,835
338,767
Amounts owed by group undertakings
-
-
2,115,696
2,368,480
Other debtors
3,143,587
3,980,319
3,123,084
3,936,383
Prepayments and accrued income
4,613,925
328,599
90,083
221,755
8,350,408
4,786,247
5,757,576
6,979,940
Amounts falling due after more than one year:
Other debtors
30,500
30,500
Total debtors
8,350,408
4,816,747
5,757,576
7,010,440
ALLAN WATER DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 28 -
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
17
14,002,982
7,085,883
9,525,000
5,925,000
Obligations under finance leases
18
25,297
77,378
25,297
77,378
Trade creditors
2,437,957
2,114,819
2,400,236
2,042,452
Amounts owed to group undertakings
1,082,433
7,059,131
Corporation tax payable
168,854
174,409
Other taxation and social security
60,199
40,249
50,512
31,023
Other creditors
3,911,543
2,029,392
62,324
68,640
Accruals and deferred income
1,239,585
1,618,683
1,211,230
1,276,939
21,846,417
13,140,813
14,357,032
16,480,563
16
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
17
5,230,380
Obligations under finance leases
18
36,381
6,171
36,381
6,171
Other borrowings
17
1,526,770
2,512,920
Other creditors
2,000,000
4,000,000
3,563,151
11,749,471
36,381
6,171
17
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
13,993,767
12,316,263
9,525,000
5,925,000
Other loans
1,526,770
2,512,920
15,529,752
14,825,033
9,525,000
5,925,000
Payable within one year
14,002,982
7,081,733
9,525,000
5,925,000
Payable after one year
1,526,770
7,743,300
ALLAN WATER DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
17
Loans and overdrafts
(Continued)
- 29 -
£13.9m of the bank loans due within one year represent the amount drawn down on three revolving credit facilities with the bank, which fell due for repayment in December 2024 and accordingly has been disclosed as due for repayment within one year. Subsequent to the year end the group agreed an extension to the revolving credit facilities, with a final repayment date in December 2027.
At the year end all bank debt is secured by bond and floating charge and a standard security over various property developments. This is further secured by cross guarantees and bond and floating charges from the subsidiary companies.
Other loans represent development funding loans received from an investment partner in group developments.
Hire purchase contracts are secured over the assets to which they relate.
18
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
25,297
77,378
25,297
77,378
In two to five years
36,381
6,171
36,381
6,171
61,678
83,549
61,678
83,549
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
37,243
18,022
Capital gains
2,249,968
2,250,000
2,287,211
2,268,022
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
37,243
18,022
Capital gains
(32)
-
37,211
18,022
ALLAN WATER DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
19
Deferred taxation
(Continued)
- 30 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 August 2023
2,268,022
18,022
Charge to profit or loss
19,189
19,189
Liability at 31 July 2024
2,287,211
37,211
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
70,523
73,000
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
1,055,250
1,055,250
1,055,250
1,055,250
Ordinary B of £1 each
502,500
502,500
502,500
502,500
Ordinary C of £1 each
117,251
117,251
117,251
117,251
1,675,001
1,675,001
1,675,001
1,675,001
A - C Ordinary Shares have full rights in the company with respect to voting, dividends and distribution. The shares are redeemable.
22
Financial commitments, guarantees and contingent liabilities
Allan Water Developments Limited has cross guarantees in place with its subsidiary companies in respect of the facilities available to the group. At the year end the facilities were utilised to the extent of £10,290,000.
23
Related party transactions
Transactions with related parties
Amounts due are to entities in which a director and shareholder has an interest are interest free and repayable on demand.
Included within Other loans is an amount of £1,526,770 due to a development partner that is a shareholder in Allan Water Homes (Chryston) Limited and Allan Water Homes (Cambusbarron) Limited.
ALLAN WATER DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
23
Related party transactions
(Continued)
- 31 -
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
1,906,712
1,614,378
Company
Entities over which the company has control, joint control or significant influence
1,906,712
1,614,302
These related parties are entities over which D Stirling has control.
Key management personnel are considered to be the directors of the company. Remuneration in respect of the directors can be seen in note 7 to these financial statements,
24
Directors' transactions
Advances or credits have been granted by the group to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
-
1,688,844
236,463
(1,275,129)
650,178
1,688,844
236,463
(1,275,129)
650,178
25
Controlling party
The company is under the control of The Stirling Family Investment Co Ltd, a company incorporated in Scotland.
The Stirling Family Investment Co Ltd is a company controlled by Mr D C Stirling.
ALLAN WATER DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 32 -
26
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit for the year after tax
564,341
7,603,057
Adjustments for:
Taxation charged
226,477
2,399,612
Finance costs
1,345,808
1,354,564
Gain on disposal of tangible fixed assets
(12,225)
(33,830)
Fair value gain on investment properties
(9,000,000)
Depreciation and impairment of tangible fixed assets
42,494
123,521
Transfer of investment property to stock non cash movement
14,760,000
-
Movements in working capital:
Increase in stocks
(12,882,970)
(1,741,220)
(Increase)/decrease in debtors
(4,452,989)
2,291,724
(Decrease)/increase in creditors
(153,859)
5,575,177
Cash (absorbed by)/generated from operations
(562,923)
8,572,605
27
Analysis of changes in net debt - group
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
2,303,499
(1,468,198)
835,301
Bank overdrafts
(9,215)
(9,215)
2,303,499
(1,477,413)
826,086
Borrowings excluding overdrafts
(14,829,183)
(691,354)
(15,520,537)
Obligations under finance leases
(83,549)
21,871
(61,678)
(12,609,233)
(2,146,896)
(14,756,129)
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