Angraflat Development Company Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC550891 (Scotland)

Angraflat Development Company Limited

Audited Financial Statements

for the Year Ended 31st December 2018

Page

Company information

1

Statement of financial position

2

to

3

Notes to the financial statements

4

to

7

Directors:

G W Hobkirk

R J Jones

Dr G Mooney

Secretary:

G H Young BA CA

Registered office:

Academy House

Shedden Park Road

Kelso

Roxburghshire

TD5 7AL

Business address:

Angraflat Road

Kelso

Roxburghshire

TD5 7NS

Registered number:

SC550891 (Scotland)

Auditors:

Douglas Home & Co (Audit) Limited

47-49 The Square

Kelso

Roxburghshire

TD5 7HW

Fixed assets

Tangible assets

4

5,127,101

791,780

Current assets

Debtors

5

116,315

43,014

Cash at bank

65,081

3,372

181,396

46,386

Creditors

Amounts falling due within one year

6

3,640,309

863,514

Net current liabilities

(3,458,913

)

(817,128

)

Total assets less current liabilities

1,668,188

(25,348

)

Creditors

Amounts falling due after more than one year

7

1,714,081

-

Net liabilities

(45,893

)

(25,348

)

Capital and reserves

Called up share capital

1

1

Retained earnings

(45,894

)

(25,349

)

(45,893

)

(25,348

)

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Statement of income and retained earnings has not been delivered.

The financial statements were approved by the Board of Directors on 13th June 2019 and were signed on its behalf by:

R J Jones - Director

G W Hobkirk - Director

1.	Statutory information

Angraflat Development Company Limited is a private company, limited by shares , registered in

Scotland. The company's registered number and registered office address can be found on the

Company Information page.

2.	Accounting policies

Basis of preparing the financial statements

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

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Equipment, furniture and fittings

-

10% on cost

Depreciation has not been provided on freehold property as Murray House only opened at the year end

and Evanthea House had not been completed by the year end. Depreciation will be provided for in the

year ended 31st December 2019.

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment

losses.

Financial instruments

The following liabilities are classified as financial instruments - trade creditors, accruals, bank loans

and other loans.

Bank loans are initially measured at the present value of future payments, discounted at a market rate

of interest, and subsequently at amortised cost using the effective interest method.

Trade creditors, accruals and other loans are measured at the undiscounted amount of the cash or

other consideration expected to be paid or received.

Financial assets that are measured at amortised cost 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 Income and Retained Earnings.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of

Income and Retained Earnings, except to the extent that it relates to items recognised in other

comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured

using tax rates and laws that have been enacted or substantively enacted by the year end and that are

expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable

that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Provisions

Provisions are set up only where it is probable that a present obligation exists as a result of an event

prior to the balance sheet date and that a payment will be required in settlement that can be estimated

reliably. Where material, provisions are calculated on a discounted basis.

Employee benefits

Short term employee benefits, including holiday pay, are recognised as an expense in the Statement of

Income and Retained Earnings in the period in which they are incurred.

Going concern

The directors acknowledge the negative reserves at the year end. Since the company's incorporation

they have been constructing the new care units with no trading income. From 1st January 2019 the

company has started receiving rental income and it is expected that the profit to 31st December 2019

will create positive reserves at that time. Accordingly, they continue to adopt the going concern basis in

preparing these financial statements.

3.	Employees and directors

The average number of employees during the year was NIL (2017 - NIL).

4.	Tangible fixed assets

Equipment,

furniture

Freehold

and

property

fittings

Totals

£

£

£

Cost

At 1st January 2018

791,065

794

791,859

Additions

4,210,695

124,706

4,335,401

At 31st December 2018

5,001,760

125,500

5,127,260

Depreciation

At 1st January 2018

-

79

79

Charge for year

-

80

80

At 31st December 2018

-

159

159

Net book value

At 31st December 2018

5,001,760

125,341

5,127,101

At 31st December 2017

791,065

715

791,780

Included in freehold property is freehold land of £285,993 (2017 - £200,000) which is not depreciated.

The aggregate amount of finance costs capitalised in land and buildings is £33,351 (2017 - £3,740).

5.

Debtors: amounts falling due within one year

2018

2017

£

£

Other debtors

116,315

43,014

6.

Creditors: amounts falling due within one year

2018

2017

£

£

Trade creditors

332,708

53,845

Amounts owed to group undertakings

3,302,340

807,369

Other creditors

5,261

2,300

3,640,309

863,514

7.

Creditors: amounts falling due after more than one year

2018

2017

£

£

Bank loans

1,714,081

-

8.	Secured debts

The following secured debts are included within creditors:

2018

2017

£

£

Bank loans

1,714,081

-

The Royal Bank of Scotland Plc holds security over an area of land owned by the company and by way

of a floating charge over the property.

9.	Disclosure under Section 444(5B) of the Companies Act 2006

The Report of the auditors was unqualified.

Alan Drummond BA CA FMAAT (Senior Statutory Auditor)

for and on behalf of Douglas Home & Co (Audit) Limited

10.	Capital commitments

2018

2017

£

£

Contracted but not provided for in the

financial statements

871,856

3,302,372

11.	Related party disclosures

Angraflat Development Company Limited is a fully owned subsidiary of Queen's House (Kelso)

Limited. Queen's House (Kelso) Limited is a private company, limited by guarantee, registered in

Scotland.

During the year Queen's House (Kelso) Limited paid for goods and services totalling £18,970 (2017 -

£344,970) on behalf of Angraflat Development Company Limited.

During the year the company purchased land from Queen's House (Kelso) Limited for £50,000 (2017 -

£nil).

At 2018 Angraflat Development Company Limited were due Queen's House (Kelso) Limited

£3,302,340 (2017 - £807,369). This loan is unsecured, interest free and is repayable on demand.

All transactions were done at market value.