Contagion Investments Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC598121

CONTAGION INVESTMENTS LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD 24 MAY 2018 TO 31 MAY 2019

Page

Balance Sheet

1

Notes to the Financial Statements

3

FIXED ASSETS

Investments

4

24,407,831

CURRENT ASSETS

Debtors

5

240

Cash at bank

1,776,526

1,776,766

CREDITORS

Amounts falling due within one year

6

22,950,508

NET CURRENT LIABILITIES

(21,173,742

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,234,089

CREDITORS

Amounts falling due after more than one year

7

3,092,505

NET ASSETS

141,584

CAPITAL AND RESERVES

Called up share capital

240

Retained earnings

141,344

141,584

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 31 May 2019.

The members have not required the company to obtain an audit of its financial statements for the period ended 31 May 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors on 24 February 2020 and were signed on its behalf by:

W F Carman - Director

1.	STATUTORY INFORMATION

Contagion Investments Limited is a private company, limited by shares, registered in Scotland. The company's

registered office is C/O Brodies LLP, 110 Queen Street, Glasgow, Scotland, G1 3BX.

The presentation currency of the financial statements is Sterling (£).

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 as modified by the revaluation of certain assets.

There were no material departures from this standard.

Judgements

The company considers on an annual basis the judgements that are made by management when applying its

significant accounting policies that would have the most significant effect on amounts that are recognised in

the financial statements. The directors consider there are no such significant judgements.

Turnover

Turnover represents investment income from dividends and interest.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial

assets and liabilities like other accounts receivable and payable, loans to and from related parties and

investments in shares.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value

of the future payments and subsequently at amortised cost using the effective interest method. Debt

instruments that are payable or receivable within one year, typically trade debtors and trade creditors, are

measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be

paid or received.

Investments in non-convertible preference shares and in non-puttable ordinary and preference shares are

measured: at fair value with changes recognised in profit and loss if the shares are publicly traded or their fair

value can be measured reliably.

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for

evidence of impairment and if found, an impairment loss is recognised in profit or loss.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation

is discharged, cancelled or expires.

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly

liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when

applicable, are shown within borrowings in current liabilities.

Fixed asset investments

Equity investments are recognised initially at fair value which is normally the transaction price (but excludes

any transaction costs, where the investment is subsequently measured at fair value through profit and loss

account). Subsequently, they are measured at fair value through profit and loss.

Derivatives

The company uses derivative financial instruments to manage its exposure to fluctuations in foreign exchange

rates. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are

re-measured at their fair value at each subsequent reporting date.

Currently the company only has cash flow hedge relationships. Cash flow hedges are hedges of particular risks

that might change the amount or timing of future cash flows.

For qualifying cash flow hedges, the hedging instrument is recorded at fair value. The portion of any change in

fair value that is an effective hedge is included in equity and any remaining ineffective portion is reported in

the profit and loss account. Hedge accounting is discontinued when the hedging instrument expires or is sold,

terminated or exercised without replacement or rollover, no longer qualifies for hedge accounting or the

company revokes the designation.

The fair value of the forward currency contract is calculated by reference to the current forward exchange

contracts with similar maturity profiles.

Provisions

Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a

result of a past event, it is probable that the company will be required to settle the obligation and the amount of

the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required

to settle the obligation at the reporting date.

Taxation

Taxation represents the sum of tax currently payable and deferred tax. 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.

The charge for taxation takes into account taxation deferred as a result of timing differences between the

treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in

respect of all timing differences that have originated but not reversed at the balance sheet date. However,

deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not

that there will be suitable taxable profits from which the future reversal of the underlying timing differences

can be deducted. Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to

apply in the periods in which the timing differences reverse, based on tax rates and laws enacted or

substantively enacted at the balance sheet date.

With the exception of changes arising on the initial recognition of a business combination, the tax expense is

presented either in profit or loss, other comprehensive income or statement of changes in equity depending on

the transaction that resulted in the tax expense.

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange

ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating

result.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was NIL.

4.	FIXED ASSET INVESTMENTS

Other

investments

£

COST OR VALUATION

Additions

43,353,883

Disposals

(19,156,534

)

Revaluations

210,482

At 31 May 2019

24,407,831

NET BOOK VALUE

At 31 May 2019

24,407,831

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

£

Other debtors

240

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

£

Taxation and social security

20,405

Other creditors

22,930,103

22,950,508

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

£

Other creditors

3,092,505

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Other loans more than 5 years

3,092,505

8.	SECURED DEBTS

The following secured debts are included within creditors:

£

Other loans

3,092,505

The above loan is secured over the investments made within the BIL investment portfolio.

9.	FORWARD CURRENCY CONTRACTS

At 31 May 2019, the company had entered into a number of forward currency contracts with execution due in

June 2019. The fair value of these forward currency contracts at 31 May 2019 was a liability of £161,403.

10.	RELATED PARTY DISCLOSURES