R Clouston (Subsidiary) Ltd

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—6

1. General Information

R Clouston (Subsidiary) Ltd is a private company, limited by shares, incorporated in Scotland, registered number SC512625 . The registered office is 10 Grainshore Drive, Hatston Industrial Estate, Kirkwall, Orkney, KW15 1GG.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Turnover

Turnover represents rental income arising in the period.

2.3. Investment Properties

All investment properties are carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided for. Changes in fair value are recognised in the profit and loss account.

2.4. Financial Instruments

The company has elected lo apply the provisions of Section 11 'Basic Financial lnstruments' 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 filnancial 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.

Basic financial liabilities

...CONTINUED

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R Clouston (Subsidiary) Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

2.4. Financial Instruments - continued

Basic llnancial 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 liabalities 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. lf not, they are presented as non-cunent liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

2.5. Taxation

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

3. Average Number of Employees

Average number of employees, including directors, during the year was: NIL (2025: NIL)

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R Clouston (Subsidiary) Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

4. Investment Property

	2026
	£
Fair Value
As at 1 April 2025 and 31 March 2026	750,000

If investment property had been accounted for under historical cost accounting rules, the amounts would be:

	2026	2025
	£	£
Cost	494,973	494,973

The properties were valued at an open market value of £750,000 (2025: £750,000) as at the balance sheet date by the director. The basis of valuation was an estimate of the open market value of the property taking into account a number of factors including the location and condition of the property, local market demand for properties of this type, and the sale prices achieved on any comparable properties.

The company has granted securities over property at Victoria Street, Stromness, and Bridge Street Wynd, Kirkwall, to The Trustees of the Clouston Pension Fund, Orkney lslands Council, R Clouston Ltd, and The Royal Bank of Scotland PLC, respectively.

5. Debtors

	2026	2025
	£	£
Due within one year
Trade debtors	394	-
Other debtors	729	747

	1,123	747

6. Creditors: Amounts Falling Due Within One Year

	2026	2025
	£	£
Trade creditors	13,597	21,756
Amounts owed to group undertakings	405,309	441,089
Other creditors	1,664	683
Taxation and social security	4,327	2,464

	424,897	465,992

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R Clouston (Subsidiary) Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

7. Share Capital

	2026	2025
	£	£
Allotted, Called up and fully paid	100	100

8. Reserves

	Fair value reserve	Profit and Loss Account
	£	£
As at 1 April 2025	192,569	72,308
Profit for the year and total comprehensive income	-	18,446

As at 31 March 2026	192,569	90,754

9. Ultimate Parent Undertaking and Controlling Party

The company's immediate and ultimate parent undertaking is R. Clouston Limited . R. Clouston Limited was incorporated in Scotland. Copies of the group accounts may be obtained from the secretary, 10 Grainshore Drive, Hatston Industrial Estate, Kirkwall, Orkney, KW15 1FL . The ultimate controlling party is R. Clouston Limited who controls 100% of the shares of R Clouston (Subsidiary) Ltd .

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		2026		2025
	Notes	£	£	£	£
FIXED ASSETS
Investment Properties	4		750,000		750,000

			750,000		750,000
CURRENT ASSETS
Debtors	5	1,123		747
Cash at bank and in hand		15,655		38,680

		16,778		39,427
Creditors: Amounts Falling Due Within One Year	6	(424,897 )		(465,992 )

NET CURRENT ASSETS (LIABILITIES)			(408,119 )		(426,565 )

TOTAL ASSETS LESS CURRENT LIABILITIES			341,881		323,435

PROVISIONS FOR LIABILITIES
Deferred Taxation			(58,458 )		(58,458 )

NET ASSETS			283,423		264,977

CAPITAL AND RESERVES
Called up share capital	7		100		100
Fair value reserve	8		192,569		192,569
Profit and Loss Account			90,754		72,308

SHAREHOLDERS' FUNDS			283,423		264,977