Company registration number SC021861 (Scotland)
GLENDEVON ESTATE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022
PAGES FOR FILING WITH REGISTRAR
GLENDEVON ESTATE LIMITED
Contents
Page
Accountants' report
1
Statement of financial position
2 - 3
Notes to the financial statements
4 - 10
GLENDEVON ESTATE LIMITED
Report To The Directors On The Preparation Of The Unaudited Statutory Accounts Of Glendevon Estate Limited
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Glendevon Estate Limited for the year ended 30 November 2022 which comprise, the statement of financial position and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the ICAS we are subject to its ethical and other professional requirements which are detailed at https://icas.com/icas-framework-preparation-of-accounts
This report is made solely to the Board of Directors of Glendevon Estate Limited, as a body, in accordance with the terms of our engagement letter dated 26 May 2021. Our work has been undertaken solely to prepare for your approval the financial statements of Glendevon Estate Limited and state those matters that we have agreed to state to the Board of Directors of Glendevon Estate Limited, as a body, in this report in accordance with the requirements of the ICAS as detailed at https://icas.com/icas-framework-preparation-of-accounts. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Glendevon Estate Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that Glendevon Estate Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Glendevon Estate Limited. You consider that Glendevon Estate Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Glendevon Estate Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Condie & Co Limited
2 August 2023
Chartered Accountants
10 Abbey Park Place
Dunfermline
Fife
KY12 7NZ
GLENDEVON ESTATE LIMITED
Statement Of Financial Position
As At 30 November 2022
- 2 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
727,744
728,920
Investments
5
119,968
20,000
847,712
748,920
Current assets
Debtors
6
1,116
1,181
Cash at bank and in hand
19,671
127,849
20,787
129,030
Creditors: amounts falling due within one year
7
(15,839)
(6,220)
Net current assets
4,948
122,810
Total assets less current liabilities
852,660
871,730
Provisions for liabilities
(82,348)
(82,523)
Net assets
770,312
789,207
Capital and reserves
Called up share capital
9
8,577
8,577
Revaluation reserve
10
575,882
575,882
Profit and loss reserves
185,853
204,748
Total equity
770,312
789,207
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 30 November 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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.
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.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
GLENDEVON ESTATE LIMITED
Statement Of Financial Position (Continued)
As At 30 November 2022
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 2 August 2023 and are signed on its behalf by:
Mr D.C. McNee
Director
Company Registration No. SC021861
GLENDEVON ESTATE LIMITED
Notes To The Financial Statements
For The Year Ended 30 November 2022
- 4 -
1
Accounting policies
Company information
Glendevon Estate Limited is a private company limited by shares incorporated in Scotland. The registered office is Glendevon Castle, Glendevon, by Dollar, Clacks, FK14 7JY.
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, modified to include the revaluation of heritable properties at fair value. The principal accounting policies adopted are set out below.
1.2
Sundry income
Income is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business.
1.3
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:
Heritable property
N/A
Fixtures, fittings & equipment
10% straight line p.a.
Motor vehicles
25% reducing balance p.a.
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.
1.4
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.
GLENDEVON ESTATE LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 November 2022
1
Accounting policies
(Continued)
- 5 -
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.
1.5
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.
1.6
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 statement of financial position 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.
Basic financial liabilities
Basic financial 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 liabilities classified as payable within one year are not amortised.
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.
1.7
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.
GLENDEVON ESTATE LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 November 2022
1
Accounting policies
(Continued)
- 6 -
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 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 income statement 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 income statement, 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.
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
GLENDEVON ESTATE LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 November 2022
- 7 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
3
2
4
Tangible fixed assets
Heritable property
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 December 2021 and 30 November 2022
726,069
61,709
8,877
796,655
Depreciation and impairment
At 1 December 2021
59,125
8,610
67,735
Depreciation charged in the year
1,046
130
1,176
At 30 November 2022
60,171
8,740
68,911
Carrying amount
At 30 November 2022
726,069
1,538
137
727,744
At 30 November 2021
726,069
2,584
267
728,920
The property has been included in the financial statements at directors' valuation. The directors are of the opinion that the value at 30 November 2022 is a fair reflection of the market value.
Tangible fixed assets with a net book value of £727,744 (2021: £728,920) have been pledged as security in favour of Scottish Power Renewables (UK) Limited.
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts
included would have been as follows:
2022
2021
£
£
Cost
83,739
83,739
GLENDEVON ESTATE LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 November 2022
- 8 -
5
Fixed asset investments
2022
2021
£
£
Other investments other than loans
119,968
20,000
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 December 2021
20,000
Additions
99,968
At 30 November 2022
119,968
Carrying amount
At 30 November 2022
119,968
At 30 November 2021
20,000
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Other debtors
1,116
1,181
7
Creditors: amounts falling due within one year
2022
2021
£
£
Taxation and social security
232
Other creditors
9,546
354
Accruals and deferred income
6,061
5,866
15,839
6,220
Scottish Power Renewables (UK) Limited hold a standard security and a charge dated 8 March 2017 over all assets of the company as security.
8
Provisions for liabilities
2022
2021
£
£
Deferred tax liabilities
82,348
82,523
GLENDEVON ESTATE LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 November 2022
- 9 -
9
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
6,805
6,805
6,805
6,805
2022
2021
2022
2021
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
1,772
1,772
1,772
1,772
Preference shares classified as equity
1,772
1,772
Total equity share capital
8,577
8,577
The issued Ordinary shares have equal voting rights and equal rights to dividends.
The issued Preference shares have rights to dividends.
10
Revaluation reserve
2022
2021
£
£
At the beginning and end of the year
575,882
575,882
11
Operating lease commitments
Lessor
The company owns Glendevon Estate which is used for a variety of purposes to generate income. The company has granted leases to Scottish Power to allow it to locate wind turbines on part of the estate. The company receives a share of the tenant's revenue from the generation of electricity from these turbines.
12
Director's transactions
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Mr D.C. McNee
-
225
6,125
(287)
6,063
225
6,125
(287)
6,063
The balance due to the director is interest free and repayable on demand.
GLENDEVON ESTATE LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 November 2022
- 10 -
13
Related party transactions
The company has taken advantage of Section 1 AC35 of FRS 102 whereby only material transactions which are not under normal market conditions need to be disclosed.