For the financial year ended 31 March 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

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

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, Scotland, AB15 4DT.

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.

These financial statements are prepared on the going concern basis. At the balance sheet date, the company had net liabilities of £953,944. After the year end the company sold the Crichiebank Business Centre and in turn resulted in their associated loans and overdraft being paid up in full. The company will continue to generate income via the Ellon Business Centre which has long standing tenants. The intercompany loan between Ellon Development Company Limited and Enterprise North East Trust Limited will be repaid over a 10 year period, with the company repaying £10,000 a month.true

The financial statements are therefore prepared on a going concern basis which assumes that the company will continue to meet its liabilities as they fall due. As a result, the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.

Income and expenses are included in the financial statements as they become receivable or due.

Expenses include VAT where applicable as the company cannot reclaim it.

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:

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.

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.

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.

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade debtors and creditors. These are measured at amortised cost and are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

The company is not carrying on a business for the purposes of making a profit and is therefore exempt from corporation tax.

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 company operates a defined contribution plan for it's employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.

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.

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.

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.

If land and buildings were measured using the cost model, the carrying amounts would have been approximately £687,027 (2024 - £687,027), being cost £1,273,808 (2024 - £1,273,808) and depreciation £586,781 (2024 - £586,781).

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. This loan has since met its termination date in June 2025 and repayment terms are being negotiated.

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.

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

During the year, Enterprise North East Trust Limited charged the company £27,000 (2024 - £27,000) in respect of the sub-lease of Ellon Business Centre and recharged specific identifiable costs of £99,731 (2024 - £203,409).

During the year, the company did not charge Enterprise North East Trust Limited for the office space occupied at Crichiebank Business Centre as they moved premises in April 2024. (2024 - £18,227)

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 £1,184,618 (2024 - £1,123,444).

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.