ELLON DEVELOPMENT COMPANY LIMITED
(A COMPANY LIMITED BY GUARANTEE)
SC170930
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
MHA
12 CARDEN PLACE
ABERDEEN
AB10 1UR
ELLON DEVELOPMENT COMPANY LIMITED
(A COMPANY LIMITED BY GUARANTEE)
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 9
ELLON DEVELOPMENT COMPANY LIMITED
(A COMPANY LIMITED BY GUARANTEE)
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
6
435,000
845,000
Current assets
Debtors
7
6,199
2,017
Cash at bank and in hand
3,105
11,804
9,304
13,821
Creditors: amounts falling due within one year
8
(49,805)
(87,312)
Net current liabilities
(40,501)
(73,491)
Total assets less current liabilities
394,499
771,509
Creditors: amounts falling due after more than one year
9
(1,336,584)
(1,280,523)
Net liabilities
(942,085)
(509,014)
Reserves
Revaluation reserve
10
-
0
86,102
Income and expenditure account
(942,085)
(595,116)
Members' funds
(942,085)
(509,014)

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

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

The financial statements were approved by the board of directors and authorised for issue on 25 June 2025 and are signed on its behalf by:
Susan Dowds
Rachel Ross
Director
Director
Company registration number SC170930 (Scotland)
ELLON DEVELOPMENT COMPANY LIMITED
(A COMPANY LIMITED BY GUARANTEE)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Revaluation reserve
Income and expenditure
Total
£
£
£
Balance at 1 April 2022
294,131
(554,783)
(260,652)
Year ended 31 March 2023:
Deficit
-
(41,928)
(41,928)
Other comprehensive income:
Revaluation of tangible fixed assets
(208,029)
-
(208,029)
Total comprehensive income
(208,029)
(41,928)
(249,957)
Transfers
-
0
1,595
1,595
Balance at 31 March 2023
86,102
(595,116)
(509,014)
Year ended 31 March 2024:
Deficit
-
(317,598)
(317,598)
Other comprehensive income:
Revaluation of tangible fixed assets
(86,102)
-
(86,102)
Total comprehensive income
(86,102)
(317,598)
(403,700)
Transfers
-
0
(29,371)
(29,371)
Balance at 31 March 2024
-
0
(942,085)
(942,085)
ELLON DEVELOPMENT COMPANY LIMITED
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
1
Accounting policies
Company information

Ellon Development Company Limited is a private company limited by guarantee incorporated in Scotland. The registered office is 1st Floor, Blenheim House, Fountainhall Road, Aberdeen, AB15 4DT.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The directors have prepared the financial statements on a going concern basis. In forming this view, the directors have considered the support of the parent company, Enterprise North East Trust Limited T/A Elevator, which continues to fund the company’s trading activities. Further information on this support is provided in Note 13 to the financial statements.true

 

The directors have also evaluated the implications of the planned sale of the leasehold property at Crichiebank Business Centre, Inverurie including the impact on the company’s income and reserves. This evaluation, together with the anticipated continued support from Elevator, forms the basis of the directors’ conclusion that the company has adequate resources to continue in operational existence for at least 12 months from the date of approval of these financial statements.

 

However, Elevator’s future programme delivery and access to grant and loan funding remain subject to uncertainty, with certain funding not yet committed at the date of approval. As a result, there is a material uncertainty related to events or conditions that may cast significant doubt on Elevator’s ability to continue as a going concern.

1.3
Income and expenditure

Income, all of which arises in the UK, represents rental income and service charges. Rental income is charged one month in advance and is recognised when the company is entitled to receipt, as detailed in the tenancy agreements. Service income is recognised as services are rendered.

 

Expenditure is included within the financial statements as it becomes due.

 

The company is partially exempt for VAT purposes therefore VAT is calculated based on the appropriate proportions of income and expenditure.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold property
2.5% straight line
Fixtures, fittings & equipment
10/20% straight line
Computer equipment
20% straight line
ELLON DEVELOPMENT COMPANY LIMITED
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -

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 surplus or deficit.

1.5
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 surplus or deficit, 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 surplus or deficit, 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.

1.6
Cash at bank and in hand

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.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

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.

ELLON DEVELOPMENT COMPANY LIMITED
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities

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

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.8
Taxation

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.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense when recharged from Enterprise North East Trust Limited, the parent company of Ellon Development Company Limited.

1.10
Retirement benefits
Enterprise North East Trust Limited, the parent company of Ellon Development Company Limited, operates a defined contribution scheme for the benefit of the employees. Contributions paid by Enterprise North East Trust Limited are recharged to the company. Contributions payable are charged to the income and expenditure account in the year they are payable.
1.11
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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.

ELLON DEVELOPMENT COMPANY LIMITED
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
3
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
(2,990)
4,000
4
Employees

There are no employees directly employed by the company.

 

All employees of the group are employed by the parent company, Enterprise North East Trust Limited T/A Elevator. Recharges for the use of employees are made by the parent to the subsidiary where appropriate and at arms length.

5
Taxation

There is no tax charge in the current year.

 

Losses have been incurred by the company and these are available for carry forward against future trading profits.

6
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 April 2023
845,000
144,072
989,072
Revaluation
(157,973)
-
0
(157,973)
At 31 March 2024
687,027
144,072
831,099
Depreciation and impairment
At 1 April 2023
-
0
144,072
144,072
Depreciation charged in the year
42,500
-
0
42,500
Impairment losses
252,027
-
0
252,027
Revaluation
(42,500)
-
0
(42,500)
At 31 March 2024
252,027
144,072
396,099
Carrying amount
At 31 March 2024
435,000
-
0
435,000
At 31 March 2023
845,000
-
0
845,000

The value of the property has been revalued to depreciated historical cost and then subsequently impaired to the anticipated value likely to realised on on disposal.

Movements in the revaluation reserve are disclosed in note 10.

If land and buildings were measured using the cost model, the carrying amounts would have been approximately £687,027 (2023 - £750,730), being cost £1,273,808 (2023 - £1,273,808) and depreciation £586,781 (2023 - £523,078).

ELLON DEVELOPMENT COMPANY LIMITED
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Service charges due
4,340
1,846
Other debtors
15
171
4,355
2,017
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
1,844
-
0
Total debtors
6,199
2,017
8
Creditors: amounts falling due within one year
2024
2023
£
£
Loans and overdrafts
26,345
61,376
Trade creditors
1,887
39
Other taxation and social security
5,469
5,181
Other creditors
7,894
8,066
Accruals and deferred income
8,210
12,650
49,805
87,312
9
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
113,140
117,975
Amounts due to group undertakings
1,123,444
1,062,548
Other creditors
100,000
100,000
1,336,584
1,280,523

The bank term loan is repayable by monthly instalments and accrues interest at 2.5% above Bank of Scotland base rate. The loan is secured by a standard security over the freehold property at Crichiebank Business Centre. A bond and floating charge, over the whole assets of the company, is in place and, in addition, a cross corporate guarantee has been provided by Enterprise North East Trust Limited.

 

Other creditors represents an interest free loan received from Aberdeenshire Council in respect of the development of the leasehold property at Crichiebank and is repayable at the earliest of: the expiry of 20 years from 10 April 2005; the date of entry under the disposal by the company in its interest in the centre; default by the company. This loan is secured by a standard security on the leasehold property at Crichiebank Business Centre in favour of the council.

ELLON DEVELOPMENT COMPANY LIMITED
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Creditors: amounts falling due after more than one year
(Continued)
- 8 -
Amounts included above which fall due after five years are as follows:
Payable by instalments
37,856
26,940
10
Revaluation reserve
2024
2023
£
£
At the beginning of the year
86,102
294,131
Revaluation surplus arising in the year
(86,102)
(208,029)
At the end of the year
-
0
86,102
11
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
William Anderson BA CA
Statutory Auditor:
MHA
Date of audit report:
25 June 2025
12
Operating lease commitments
Lessee

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

2024
2023
£
£
38,250
65,250
13
Related party transactions

During the year, Enterprise North East Trust Limited charged the company £27,000 (2023 - £27,000) in respect of the sub-lease of Ellon Business Centre and recharged specific identifiable costs of £109,549 (2023 - £203,409).

 

During the year, the company charged Enterprise North East Trust Limited £18,227 (2023 - £18,227) for the sub-lease of Crichiebank Business Centre.

 

No interest was charged throughout the year on the loan due to Enterprise North East Trust Limited.

 

At the year end the amount owed to Enterprise North East Trust Limited by the company was £1,123,444 (2023 - £1,062,548).

ELLON DEVELOPMENT COMPANY LIMITED
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
14
Parent company

Ellon Development Company Limited is a company limited by guarantee and has no share capital. Enterprise North East Trust Limited is the sole member of the company.

 

Enterprise North East Trust Limited is a company incorporated in Scotland. Its registered address is 1st Floor, Blenheim House, Fountainhall Road, Aberdeen, AB15 4DT.

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