Company registration number SC412906 (Scotland)
Low Holdings (Scotland) Limited
Annual report and financial statements
for the year ended 30 September 2024
Low Holdings (Scotland) Limited
Company information
Directors
GE Low
GDA Low
F Low
S Leng
Company number
SC412906
Registered office
10 Euclid Crescent
Dundee
DD1 1AG
Auditor
Henderson Loggie LLP
The Vision Building
20 Greenmarket
Dundee
DD1 4QB
Bankers
Virgin Money
7/8 High Street
Dundee
DD1 1SS
Solicitors
Blackadders LLP
10 Euclid Crescent
Dundee
DD1 1AG
Low Holdings (Scotland) Limited
Contents
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 22
Low Holdings (Scotland) Limited
Strategic report
for the year ended 30 September 2024
- 1 -

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

Fair review of the business

The directors are pleased with the business performance of the company for the year under review, and consider the results to be in line with expectations based on the lease agreements in place for the company’s portfolio of investment properties.

Occupancy levels remain high and demand has been strong for the property types held in the portfolio.

The company made a pre-tax profit of £833k (2023 - £346k) from a turnover of £1.40m (2023 - £1.27m).

The business expects similar results to be maintained going forward.

Principal risks and uncertainties

The principal risk facing the business in the medium term is the health of the commercial property market, which may be impacted should the economy enter more challenging times. This sector has been extremely strong over the last few years, and there is currently a high demand for the type of properties held by the company. Property vacancy periods are short, and rental growth is achievable, however the business is mindful of credit risk, particularly given the challenging economic environment. In the opinion of the directors, the geographical diversification of the property portfolio, as well as the type of property and tenant mix leads to a relatively lower risk profile.

Development and performance

The business has generated strong cashflows during the year and ends the year with a strong balance sheet with no borrowings. Therefore, in the opinion of the directors the business is well placed to weather any volatility within the investment property market. The directors will continue to monitor ongoing opportunities for investment to further enhance the company’s performance.

On behalf of the board

GE Low
Director
7 February 2025
Low Holdings (Scotland) Limited
Directors' report
for the year ended 30 September 2024
- 2 -

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

Principal activities

The principal activity of the company is to hold and let investment property.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £50,000. 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:

GE Low
GDA Low
F Low
S Leng
Statement of disclosure to auditor

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

Strategic report

Included within the strategic report is an indication of the principal risks and uncertainties including the risks associated with the market conditions, competition, credit risk, and legislative and compliance risks.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
GE Low
Director
7 February 2025
Low Holdings (Scotland) Limited
Directors' responsibilities statement
for the year ended 30 September 2024
- 3 -

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 company and of the profit or loss of the company 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; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

Low Holdings (Scotland) Limited
Independent auditor's report
to the members of Low Holdings (Scotland) Limited
- 4 -
Opinion

We have audited the financial statements of Low Holdings (Scotland) Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 company's affairs as at 30 September 2024 and of its 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Low Holdings (Scotland) Limited
Independent auditor's report
to the members of Low Holdings (Scotland) Limited (continued)
- 5 -

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' r eport 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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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, or returns adequate for our audit have not been received from branches not visited by us; or

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

Auditor'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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below.

As part of our planning process:

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. Management informed us that there were no instances of known, suspected or alleged fraud;

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: operating lease terms and conditions, Data Protection Act 2018, employment law regulations, and compliance with the UK Companies Act;

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetrated, and tailored our risk assessment accordingly; and

Low Holdings (Scotland) Limited
Independent auditor's report
to the members of Low Holdings (Scotland) Limited (continued)
- 6 -

- Using our knowledge of the company, together with the discussions held with management at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Enquiries with management about any known or suspected instances of non-compliance with laws and regulations and fraud;

- Confirming no breaches in relation to the terms & conditions of operating lease agreements;

- Reviewing the nature of legal and professional fees incurred;

- Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to the carrying value of investment properties, the recoverability of debtors, and the valuation of accruals and deferred income; and

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

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.

Use of our report

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.

Blair Davidson
Senior Statutory Auditor
For and on behalf of Henderson Loggie LLP
7 February 2025
Chartered Accountants
Statutory Auditor
The Vision Building
20 Greenmarket
Dundee
DD1 4QB
Low Holdings (Scotland) Limited
Statement of comprehensive income
for the year ended 30 September 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
1,400,928
1,267,143
Administrative expenses
(762,458)
(1,062,177)
Operating profit
4
638,470
204,966
Interest receivable and similar income
7
194,440
140,548
Profit before taxation
832,910
345,514
Tax on profit
8
(174,932)
(44,848)
Profit for the financial year
657,978
300,666

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Low Holdings (Scotland) Limited
Balance sheet
as at 30 September 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
34,203
47,323
Investment property
11
10,043,175
9,891,390
Investments
12
140,000
140,000
10,217,378
10,078,713
Current assets
Debtors
14
60,632
342,663
Cash at bank and in hand
2,436,808
1,560,496
2,497,440
1,903,159
Creditors: amounts falling due within one year
15
(623,273)
(495,699)
Net current assets
1,874,167
1,407,460
Total assets less current liabilities
12,091,545
11,486,173
Provisions for liabilities
Deferred tax liability
16
(74,840)
(77,446)
(74,840)
(77,446)
Net assets
12,016,705
11,408,727
Capital and reserves
Called up share capital
17
300
300
Revaluation reserve
18
1,710,638
1,710,638
Profit and loss reserves
19
10,305,767
9,697,789
Total equity
12,016,705
11,408,727

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 7 February 2025 and are signed on its behalf by:
GE Low
Director
Company registration number SC412906 (Scotland)
Low Holdings (Scotland) Limited
Statement of changes in equity
for the year ended 30 September 2024
- 9 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
300
1,710,638
9,397,123
11,108,061
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
300,666
300,666
Balance at 30 September 2023
300
1,710,638
9,697,789
11,408,727
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
657,978
657,978
Dividends
9
-
-
(50,000)
(50,000)
Balance at 30 September 2024
300
1,710,638
10,305,767
12,016,705
Low Holdings (Scotland) Limited
Notes to the financial statements
for the year ended 30 September 2024
- 10 -
1
Accounting policies
Company information

Low Holdings (Scotland) Limited is a private company limited by shares incorporated in Scotland. The registered office is 10 Euclid Crescent, Dundee, DD1 1AG.

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 a mounts 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.

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

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel and transactions with fellow group entities.

The financial statements of the company are consolidated in the financial statements of LHSL 1 Limited. These consolidated financial statements are available from its registered office.

1.2
Going concern

The financial statements have been prepared on a going concern basis. The directors have considered relevant information, including the financial projections, 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 rising input costs and the economic conditions in the UK. This analysis also considers the effectiveness of available measures to assist in mitigating the impact. true

Based on these assessments and having regard to the resources available to the company, 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.

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.

Low Holdings (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 30 September 2024
1
Accounting policies (continued)
- 11 -

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:

Computer equipment
33.3% straight line
Motor vehicles
25% 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 properties

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 a t the reporting end date. Changes in fair value are recognised in profit or loss.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
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.

Low Holdings (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 30 September 2024
1
Accounting policies (continued)
- 12 -
1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, and deposits held at call with banks.

1.9
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.

Basic financial assets

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

Impairment of financial assets

Financial assets, 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 company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Low Holdings (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 30 September 2024
1
Accounting policies (continued)
- 13 -
Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, 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 paymen ts 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

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

1.11
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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.

1.12
Employee benefits

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

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

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

Low Holdings (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 30 September 2024
1
Accounting policies (continued)
- 14 -
1.13
Leases

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.

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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Investment property values

As part of the year end process the directors have made an assessment as to the fair value of investment properties. Whilst no formal valuations have been carried out in the year, the directors have a good working knowledge of current market values. Although there is some degree of estimation involved in arriving at the fair values the directors are content that any potential differences are wholly immaterial.

Trade debtor recovery

Credit control is an important function which requires assessment, on an ongoing basis, of the recoverability of amounts due from debtors. Where recovery is in doubt, management will adequately provide against this specific debt and will arrive at such conclusions based on the knowledge of the debtor and their “ability to pay”. Management adopt a prudent approach to credit control.

Accruals

Management estimate requirements for accruals using post year end information and information available from detailed budgets. This identifies cost and income that are expected to be incurred. Accruals are only released where there is a reasonable expectation that these costs will not be invoiced in the future.

Deferred income

Deferred income relates to rental and recharge invoices which cover a period spanning the year end. Management estimate the deferred income in relation to invoices by pro rating the amounts over the period covered.

Low Holdings (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 30 September 2024
- 15 -
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Rental income
1,213,908
1,095,270
Property recharges
187,020
171,873
1,400,928
1,267,143
2024
2023
£
£
Other revenue
Interest income
54,440
548
Dividends received
140,000
140,000
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
7,100
6,650
Depreciation of owned tangible fixed assets
13,120
3,151
Operating lease charges
19,000
19,000
5
Employees

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

2024
2023
Number
Number
Office and management
4
4

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
398,500
452,254
Social security costs
52,609
61,181
451,109
513,435
Low Holdings (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 30 September 2024
- 16 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
417,625
466,225
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
175,238
142,780
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
54,440
548
Other income from investments
Dividends received
140,000
140,000
Total income
194,440
140,548
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
176,727
45,055
Adjustments in respect of prior periods
811
(406)
Total current tax
177,538
44,649
Deferred tax
Origination and reversal of timing differences
(2,606)
199
Total tax charge
174,932
44,848
Low Holdings (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 30 September 2024
8
Taxation (continued)
- 17 -

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
832,910
345,514
Expected tax charge based on the standard rate of corporation tax in the UK of 25% (2023: 22%)
208,228
76,041
Tax effect of expenses that are not deductible in determining taxable profit
893
-
0
Adjustments in respect of prior years
811
(406)
Dividend income
(35,000)
(30,812)
Difference between local corporation and deferred tax rates
-
0
25
Taxation charge for the year
174,932
44,848

At the Spring Budget 2021, the government announced that the corporation tax main rate for profits would increase to 25%. Following Royal Assent this was enacted from 1 April 2023 and as a result the corporation tax rate effective in the period has been set at 25% (2023 - 22%).

9
Dividends
2024
2023
£
£
Final paid
50,000
-
0
10
Tangible fixed assets
Computer equipment
Motor vehicles
Total
£
£
£
Cost
At 1 October 2023 and 30 September 2024
3,495
47,779
51,274
Depreciation and impairment
At 1 October 2023
1,960
1,991
3,951
Depreciation charged in the year
1,175
11,945
13,120
At 30 September 2024
3,135
13,936
17,071
Carrying amount
At 30 September 2024
360
33,843
34,203
At 30 September 2023
1,535
45,788
47,323
Low Holdings (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 30 September 2024
- 18 -
11
Investment property
2024
£
Fair value
At 1 October 2023
9,891,390
Additions through external acquisition
151,785
At 30 September 2024
10,043,175

Investment property comprises a number of commercial units which Low Holdings (Scotland) Limited let out. The fair value of the investment property has been arrived at on the basis of a valuation carried out at May 2018 by Graham & Sibbald 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. Additional purchases of investment property after May 2018 have been initially measured at cost and subsequently measured at directors valuation.

In the opinion of the directors these valuations still represent an accurate fair value as at 30 September 202 4.

The carrying value includes land comprising:

2024
2023
£
£
Freehold
266,611
266,611
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
140,000
140,000
13
Subsidiaries

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

Name of undertaking
Registered office
Class of shares held
% Held
Direct
Kingdom Timber Engineering Limited
Scotland
Ordinary
70
Low Holdings (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 30 September 2024
- 19 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
32,706
58,021
Corporation tax recoverable
-
0
258,205
Amounts owed by group undertakings
-
0
883
Other debtors
2,901
-
0
Prepayments and accrued income
25,025
25,554
60,632
342,663
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
8,574
16,584
Corporation tax
176,727
-
0
Other taxation and social security
74,779
69,214
Other creditors
3,238
132
Accruals and deferred income
359,955
409,769
623,273
495,699
16
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
(2,003)
603
Revaluations
76,843
76,843
74,840
77,446
2024
Movements in the year:
£
Liability at 1 October 2023
77,446
Credit to profit or loss
(2,606)
Liability at 30 September 2024
74,840
Low Holdings (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 30 September 2024
16
Deferred taxation (continued)
- 20 -

The deferred tax balance in relation to revaluations represents the potential taxation on the revaluation of the investment properties.

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
300
300
300
300

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

18
Revaluation reserve

Non-distributable reserves represent the revaluation of investment property less any associated deferred tax amounts and are not distributable to shareholders.

19
Profit and loss reserves

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

20
Operating lease commitments

Lessee

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

2024
2023
£
£
Within one year
19,000
19,000
Between two and five years
76,000
76,000
In over five years
1,751,167
1,770,167
1,846,167
1,865,167
Low Holdings (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 30 September 2024
20
Operating lease commitments (continued)
- 21 -
Lessor

The operating leases represent leases to third parties. The leases are negotiated over terms of 4 - 20 years. All leases include a provision for upward rent reviews on a period basis according to prevailing market conditions.

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

2024
2023
£
£
Within one year
1,087,100
1,057,100
Between two and five years
2,915,838
3,159,088
In over five years
2,103,028
2,646,878
6,105,966
6,863,066
21
Related party transactions
Transactions with related parties

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

Purchase of properties
Services received
2024
2023
2024
2023
£
£
£
£
Other related parties
150,000
-
12,860
9,860

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Other related parties
90
-

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Other related parties
-
679
Low Holdings (Scotland) Limited
Notes to the financial statements (continued)
for the year ended 30 September 2024
- 22 -
22
Directors' transactions

Interest free loans have been granted by the company to/(from) its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director 1
-
(132)
916
(4,350)
(3,566)
Director 2
-
-
328
-
328
(132)
1,244
(4,350)
(3,238)
23
Ultimate controlling party

The company is a wholly owned subsidiary of LHSL 1 Limited, a company incorporated in Great Britain and registered Scotland. LHSL 1 Limited is controlled by GE Low.

LHSL 1 Limited draws up consolidated financial statements of which the company is a member. LHSL 1 Limited has its registered office situated at 10 Euclid Crescent, Dundee, Scotland, DD1 1AG.

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