Orkney Islands Property Developments Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—11

1. General Information

Orkney Islands Property Developments Limited is a private company, limited by guarantee, incorporated in Scotland, registered number SC132049 . The registered office is 4 Gunn's Close, Kirkwall, Orkney, KW15 1DU.

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 consists of rental income, agency fees and factoring fees, exclusive of Value Added Tax arising in the United Kingdom.

2.3. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Fixtures & Fittings

25% on cost

2.4. Investment Properties

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in surplus or deficit.

Investment properties are included in the balance sheet at their fair value.

Full valuations are made by independent professional qualified valuers every five years and in the intervening years, these valuations are updated by directors with the assistance of independent professional advice as required.

2.5. 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 future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

...CONTINUED

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Orkney Islands Property Developments Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

2.5. Financial Instruments - continued

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

Basic financial liabilities, including creditors re 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.

2.6. Taxation

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

The tax currently payable is based on taxable surplus for the year. Taxable surplus differs from surplus 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 surplus. 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 surplus 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 surplus 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 surplus or deficit 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.

2.7. Pensions

The pension scheme liabilities are measured using a projected unit method. The pension scheme assets are valued at market rate. The pension scheme surplus (to the extent that it can be recovered/deficit is recognised in full on the balance sheet.

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Orkney Islands Property Developments Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

2.8. Government Grant

Grants from The Scottish Government which relate to specific capital expenditure are deducted from the cost of fixed assets in a manner similar to the accounting treatment adopted by Housing Associations.

Grants of a revenue nature are credited to the profit and loss account when received.

Government grants received are treated as deferred credits until the expiry of the obligation period.

2.9. Sinking Fund Reserve

This provision within reserves has been established for future major repairs to the Glaitness Scheme. Transfers to this reserve are based on 2% per annum of the original project cost.

2.10. Maintenance Fund Reserve

This provision within reserves has been established for the ongoing maintenance requirements of Glaitness. Transfers to this reserve are based on £344 per property per annum at Glaitness.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 3 (2025: 3)

4. Tangible Assets

	Plant & Machinery etc.
	£
Cost or Valuation
As at 1 April 2025	67,035

As at 31 March 2026	67,035

Depreciation
As at 1 April 2025	67,035

As at 31 March 2026	67,035

Net Book Value
As at 31 March 2026	-

As at 1 April 2025	-

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Orkney Islands Property Developments Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

5. Investment Property

	2026
	£
Fair Value
As at 1 April 2025 and 31 March 2026	5,305,000

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

	2026	2025
	£	£
Cost	1,629,298	1,629,298

Fair value at 31 March 2026 is represented by:

	£
Valuation in 1995	4,810
Valuation in 1996	1,442
Valuation in 1997	2,683
Valuation in 2002	229,846
Valuation in 2007	1,041,562
Valuation in 2011	790,000
Valuation in 2016	395,359
Valuation in 2020	255,000
Valuation in 2025	955,000
Cost	1,629,298
	5,305,000

The investment properties were valued by Billy Groundwater AssocRICS of Orkney Surveying Services on 23 June 2025 at fair value.

6. Debtors

	2026	2025
	£	£
Due within one year
Other debtors	10,631	8,587
Due after more than one year
Pension Asset	691,000	618,000

	701,631	626,587

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Orkney Islands Property Developments Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

7. Creditors: Amounts Falling Due Within One Year

	2026	2025
	£	£
Other loans	55,839	44,217
Corporation tax	15,988	19,214
Other creditors	16,129	19,111

	87,956	82,542

8. Creditors: Amounts Falling Due After More Than One Year

	2026	2025
	£	£
Other loans	782,211	835,890
Deferred Government grants	143,212	143,212

	925,423	979,102

Of the creditors falling due after more than one year the following amounts are due after more than five years.

	2026		2025
	£		£
Other Creditors	521,115		582,438

9. Secured Creditors

Scottish Homes, The Scottish Ministers and Orkney Islands Council hold standard securities over the properties

	2026		2025
	£		£
Other Creditors	838,050		880,107

10. Pension Commitments

The company's employees are eligible to join a Local Government pension scheme, which is a defined benefit statutory scheme. The most recent full actuarial valuation was on 31 March 2023 and was carried out by a qualified independent actuary. An updated valuation has been prepared at 31 March 2026 for the purposes of FRS102 disclosure. Contributions to the scheme are determined by the actuary on the basis of triennial valuations. The estimated Employer's contributions for the year to 31 March 2027 will be approximately £12,000.

The assumptions that have the most significant effect on the results of the valuation are those relating to the rate of return on investments and the rate of increase in salaries and pensions. It was assumed that salary increases would average 3.5% per year and that present and future pensions would increase at the rate of 3.0% per year.

The pension charge for the year was £11,682. The contributions of the company will be 15% and employees will contribute between 5.7% and 6% depending on salary.

The amounts recognised in the balance sheet are as follows:

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Orkney Islands Property Developments Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

	Defined Benefit Pension Plans
	2026	2025
	£	£
Present value of funded obligations	(1,022,000)	(1,005,000)
Fair Value of plan asssets	1,713,000	1,623,000
	691,000	618,000
Present value of unfunded obligations	-	-
Surplus	691,000	618,000
Net assets	691,000	618,000

Changes in the present value of the defined benefit obligation are as follows:

	Defined Benefit Pension Plans
	2026	2025
	£	£
Current service cost	17,000	19,000
Net interest from net defined benefit asset/liability	(36,000)	(26,000)
Past service costs	-	-
	(19,000)	(7,000)
Actual return on plan assets	93,000	80,000

Changes in the present value of the defined benefit obligation are as follows:
	Defined Benefit Pension Plans
	2026	2025
	£	£
Opening defined benefit obligation	1,005,000	1,132,000
Current service cost	17,000	19,000
Contributions by scheme participants	4,000	4,000
Interest cost	57,000	54,000
Benefits paid	(51,000)	(51,000)
Remeasurements:
Actuarial (gains)/losses from changes in demographic assumptions	6,000	(2,000)

...CONTINUED

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Orkney Islands Property Developments Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

Actuarial (gains)/losses from changes in financial assumptions	(25,000)	(140,000)
Other obligations	9,000	(11,000)
	1,022,000	1,005,000

Changes in fair value of scheme assets are as follows:

	Defined Benefit Pension Plans
	2026	2025
	£	£
Opening fair value of scheme assets	1,623,000	1,688,000
Contributions by employer	12,000	10,000
Contributions by scheme participants	4,000	4,000
Expected return	93,000	80,000
Benefits paid	(51,000)	(51,000)
Return on plan assets (excluding interest income)	32,000	(108,000)
	1,713,000	1,623,000

The amounts recognised in other comprehensive income are as follows:

	Defined Benefit Pension Plans
	2026	2025
	£	£
Actuarial (gains)/losses from changes in demographic assumptions	(6,000)	2,000
Actuarial (gains)/losses from changes in financial assumptions	25,000	140,000
Other obligations	(9,000)	11,000
Return on plan assets (excluding interest income)	32,000	(108,000)
	42,000	45,000

The major categories of sheme assets as a percentage of total shceme assets are as follows:

	Defined Benefit Pension Plans
	2026	2025

Equities	63%	64%
Bonds	28%	25%
Property	8%	9%
Cash	1%	2%
	100%	100%

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Orkney Islands Property Developments Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):
	2026	2025

Discount rate	6.20%	5.80%
Future salary increases	3.50%	3.30%
Future pension increases	3.00%	2.80%



Mortality Assumptions	2026	2025

Assumed life expectations on retirement at age 65:	Years	Years

Retiring today - Males	21.2	20.8
- Females	25.2	25.1

Retiring in 20 years - Males	21.9	21.6
- Females	26.2	26.1

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Orkney Islands Property Developments Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

11. Reserves

	Totals	Income & Expenditure Account	Sinking Fund Reserve	Pension Reserve	Maintenance Fund Reserve
	£	£	£	£	£
As at 1 April 2025	4,367,503	3,344,583	404,920	618,000	-
Surplus for the year	66,824	66,824	-	-	-
Movements	73,000	(23,536)	15,280	73,000	8,256
Transfer for Glaitness Property Maintenance	(8,256)	-	-	-	(8,256)
	4,499,071	3,387,871	420,200	691,000	-

12. Company limited by guarantee

The company is limited by guarantee and has no share capital.

Every member of the company undertakes to contribute to the assets of the company, in the event of a winding up, such an amount as may be required not exceeding £1.

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		2026		2025
	Notes	£	£	£	£
FIXED ASSETS
Investment Properties	5		5,305,000		5,305,000

			5,305,000		5,305,000
CURRENT ASSETS
Debtors	6	701,631		626,587
Cash at bank and in hand		179,124		170,865

		880,755		797,452
Creditors: Amounts Falling Due Within One Year	7	(87,956 )		(82,542 )

NET CURRENT ASSETS (LIABILITIES)			792,799		714,910

TOTAL ASSETS LESS CURRENT LIABILITIES			6,097,799		6,019,910

Creditors: Amounts Falling Due After More Than One Year	8		(925,423 )		(979,102 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(673,305 )		(673,305 )

NET ASSETS			4,499,071		4,367,503

RESERVES
Other reserves			1,111,200		1,022,920
Income and Expenditure Account			3,387,871		3,344,583

MEMBERS' FUNDS			4,499,071		4,367,503