Company Registration No. SC156154 (Scotland)
PRINCIPAL DEVELOPMENT CO (INVERNESS) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018
PAGES FOR FILING WITH REGISTRAR
PRINCIPAL DEVELOPMENT CO (INVERNESS) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
PRINCIPAL DEVELOPMENT CO (INVERNESS) LIMITED
BALANCE SHEET
AS AT 31 MARCH 2018
31 March 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
3
675,275
686,414
Investment properties
4
8,272,737
8,302,042
8,948,012
8,988,456
Current assets
Stocks
8,000
-
Debtors
5
359,635
245,625
367,635
245,625
Creditors: amounts falling due within one year
6
(562,300)
(527,840)
Net current liabilities
(194,665)
(282,215)
Total assets less current liabilities
8,753,347
8,706,241
Creditors: amounts falling due after more than one year
7
(2,949,120)
(3,171,943)
Provisions for liabilities
Deferred tax liability
377,862
408,757
(377,862)
(408,757)
Net assets
5,426,365
5,125,541
Capital and reserves
Called up share capital
8
40,812
40,812
Fair value reserve
2,615,105
2,615,105
Profit and loss reserves
2,770,448
2,469,624
Total equity
5,426,365
5,125,541
PRINCIPAL DEVELOPMENT CO (INVERNESS) LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2018
31 March 2018
- 2 -
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 March 2018 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.
T
he 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.
The financial statements were approved by the board of directors and authorised for issue on 21 December 2018 and are signed on its behalf by:
B Rizza
Director
Company Registration No. SC156154
PRINCIPAL DEVELOPMENT CO (INVERNESS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018
- 3 -
1
Accounting policies
Company information
Principal Development Co (Inverness) Limited
(SC156154)
is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Clava House, Cradlehall Business Park, INVERNESS, IV2 5GH.
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 a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents rentals receivable net of VAT
and is recognised on a accruals basis
.
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:
Assets under construction
nil
Leasehold improvements
Over the term of the lease
Plant and machinery
15% straight line
Fixtures, fittings & equipment
15% straight line
Motor vehicles
25% reducing balance
Although the Companies Act 2006 would normally require the systematic annual depreciation of fixed assets, the director believes that the policy of not providing depreciation on the investment properties is necessary in order for the accounts to give a true and fair view, since the current market value of the investment properties and changes to that value, are of prime importance rather than a calculation of systematic annual depreciation. Depreciation is only one of the factors reflected in the annual valuation, and the amount which might otherwise have been included cannot be separately identified or quantified.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure
. Subsequently it is measured
at fair value a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in the profit and loss account.
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.
PRINCIPAL DEVELOPMENT CO (INVERNESS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
1
Accounting policies
(Continued)
- 4 -
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash
at bank.
Bank overdrafts are shown within borrowings in current liabilities.
1.8
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 bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method.
Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets
are assessed for indicators of impairment at each reporting end date.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled
.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans
are
initially recognised at transaction price
and are subsequently carried at amortised cost, using the effective interest method
.
Financial liabilities classified as payable within one year are not amortised.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
PRINCIPAL DEVELOPMENT CO (INVERNESS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
1
Accounting policies
(Continued)
- 5 -
1.10
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 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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences
.
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 profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 2 (2017 - 2).
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2017 and 31 March 2018
737,988
38,398
776,386
Depreciation and impairment
At 1 April 2017
67,608
27,364
94,972
Depreciation charged in the year
3,200
2,939
6,139
At 31 March 2018
70,808
30,303
101,111
Carrying amount
At 31 March 2018
667,180
8,095
675,275
At 31 March 2017
675,380
11,034
686,414
PRINCIPAL DEVELOPMENT CO (INVERNESS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 6 -
4
Investment property
2018
£
Fair value
At 1 April 2017
8,302,042
Additions
2,305
Transfers
(31,610)
At 31 March 2018
8,272,737
The investment properties are assessed on an open market value basis. The directors have taken into consideration the valuations conducted by Graham and Sibbald, Chartered Surveyors, dated 25 April 2017.
5
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
52,280
38,167
Corporation tax recoverable
68,153
37,745
Other debtors
239,202
169,713
359,635
245,625
6
Creditors: amounts falling due within one year
2018
2017
£
£
Bank loans and overdrafts
297,852
203,729
Trade creditors
(2,692)
82,551
Corporation tax
93,823
91,277
Other taxation and social security
27,188
12,531
Other creditors
146,129
137,752
562,300
527,840
The bank loans and overdraft are secured by a standard bond and floating charge, a personal guarantee of £400,000 from director B Rizza and the investment properties held by the company.
7
Creditors: amounts falling due after more than one year
2018
2017
£
£
Bank loans and overdrafts
2,949,120
3,171,943
PRINCIPAL DEVELOPMENT CO (INVERNESS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
7
Creditors: amounts falling due after more than one year
(Continued)
- 7 -
Amounts included above which fall due after five years are as follows:
Payable by instalments
2,121,516
2,361,812
The bank loans are secured by a standard bond and floating charge, a personal guarantee of £400,000 from director B Rizza and the investment properties held by the company.
8
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
40,812 Ordinary shares of £1 each
40,812
40,812
40,812
40,812
9
Operating lease commitments
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2018
2017
£
£
3,787,980
3,128,740
10
Directors' transactions
Interest free loans have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director
-
148,639
125,312
(34,749)
239,202
148,639
125,312
(34,749)
239,202
The loan is unsecured, interest free and has no fixed terms of repayment.