Ashleybank Investments Limited - Limited company accounts 20.1

ASHLEYBANK INVESTMENTS LIMITED

REPORT OF THE DIRECTORS AND

UNAUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2019

Page

Company Information

1

Report of the Directors

2

Consolidated Income Statement

3

Consolidated Balance Sheet

4

Company Balance Sheet

6

Notes to the Consolidated Financial Statements

8

DIRECTORS:

A A Stevenson

D D Stevenson

SECRETARY:

J Hilditch

REGISTERED OFFICE:

Ashley Bank House

Langholm

Dumfriesshire

DG13 0AN

REGISTERED NUMBER:

SC047360 (Scotland)

ACCOUNTANTS:

JRW

Chartered Accountants

19 Buccleuch Street

Hawick

Roxburghshire

TD9 0HL

The directors present their report with the financial statements of the company and the group for the year

ended 31st December 2019.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st January 2019 to the date

of this report.

A A Stevenson

D D Stevenson

INVESTMENT PROPERTY

FRS102 requires Investment Property to be stated at fair value. As a result of the severe impact of Covid-19

and the exceptional circumstances of the UK commercial property market, there continues to be material

uncertainty relating to valuations of UK commercial property. As a result the directors have not had the

company's properties revalued in these accounts and so the valuation requirements of section 16 of FRS102

have not been met.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006

relating to small companies.

ON BEHALF OF THE BOARD:

J Hilditch - Secretary

22nd September 2020

TURNOVER

787,316

771,146

Cost of sales

14,322

21,228

GROSS PROFIT

772,994

749,918

Administrative expenses

537,483

471,868

OPERATING PROFIT

4

235,511

278,050

Profit/(loss) on sale of Properties

5

321,204

(26,847

)

556,715

251,203

Income from fixed asset investments

569,620

526,420

Interest receivable and similar income

(241,729

)

518,218

327,891

1,044,638

884,606

1,295,841

Realised and unrealised gain/

(loss) on revaluation of

investments

3,340,026

(735,514

)

4,224,632

560,327

Interest payable and similar expenses

215

664

PROFIT BEFORE TAXATION

4,224,417

559,663

Tax on profit

6

684,935

(154,854

)

PROFIT FOR THE FINANCIAL YEAR

3,539,482

714,517

Profit attributable to:

Owners of the parent

3,539,482

714,517

FIXED ASSETS

Tangible assets

8

3,346,647

3,407,892

Investments

9

33,053,628

30,720,188

36,400,275

34,128,080

CURRENT ASSETS

Debtors

10

63,369

123,085

Cash at bank and in hand

25,215,718

23,677,576

25,279,087

23,800,661

CREDITORS

Amounts falling due within one year

11

318,574

459,935

NET CURRENT ASSETS

24,960,513

23,340,726

TOTAL ASSETS LESS CURRENT LIABILITIES

61,360,788

57,468,806

PROVISIONS FOR LIABILITIES

1,500,000

900,000

NET ASSETS

59,860,788

56,568,806

CAPITAL AND RESERVES

Called up share capital

16,500

16,500

Capital redemption reserve

7,523

7,523

Retained earnings

59,836,765

56,544,783

SHAREHOLDERS' FUNDS

59,860,788

56,568,806

The company and the group are entitled to exemption from audit under Section 477 of the Companies Act

2006 for the year ended 31st December 2019.

The members have not required the company and the group to obtain an audit of its financial statements for

the year ended 31st December 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the group 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 and the group as at the end of each financial year and of the group's 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 and the group.

The financial statements have been prepared 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

22nd September 2020 and were signed on its behalf by:

D D Stevenson - Director

FIXED ASSETS

Tangible assets

8

436,804

468,317

Investments

9

33,839,285

31,505,845

34,276,089

31,974,162

CURRENT ASSETS

Debtors

10

567,062

345,986

Cash at bank

24,203,021

23,552,113

24,770,083

23,898,099

CREDITORS

Amounts falling due within one year

11

613,965

787,012

NET CURRENT ASSETS

24,156,118

23,111,087

TOTAL ASSETS LESS CURRENT LIABILITIES

58,432,207

55,085,249

PROVISIONS FOR LIABILITIES

1,500,000

900,000

NET ASSETS

56,932,207

54,185,249

CAPITAL AND RESERVES

Called up share capital

16,500

16,500

Capital redemption reserve

7,523

7,523

Retained earnings

56,908,184

54,161,226

SHAREHOLDERS' FUNDS

56,932,207

54,185,249

Company's profit for the financial year

2,994,458

615,587

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 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 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 22nd September 2020 and were signed on its behalf by:

D D Stevenson - Director

1.	STATUTORY INFORMATION

Ashleybank Investments 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 General 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 as modified by the revaluation of certain assets.

Turnover

The company provides management services as well as renting out commercial properties.

For management services, revenue is recognised in the accounting period in which the services are

rendered when the outcome of the contract can be measured reliably. Rental income is recognised in

the accounting period to which the rent relates.

For investment income, dividends from equities are accounted for on the ex-dividend date and all

other investment income is credited in the period in which it is receivable.

Revenue is measured at the fair value of the transaction excluding discounts, rebates, value added tax

and other sales taxes.

Tangible fixed assets

FRS requires Investment Property to be stated at fair value. As explained in the report of the directors,

due to Covid-19 this has not been possible therefore the Investment Property is stated at cost less

depreciation.

Depreciation is provided at the annual rates below to write off the cost of each asset evenly over its

estimated useful life. Depreciation is only provided on freehold buildings where the Directors

consider that the remaining useful life is less than fifty years. Provision for depreciation on long

leasehold properties with over fifty years to run and freehold buildings where the estimated life

exceeds fifty years is not considered necessary as it is the Group's policy to maintain its properties in

good condition which prolongs their useful life and any depreciation involved would not be material.

Depreciation is however provided on modernisation costs which enhance their value for a finite

period and the costs of repairs and maintenance are charged to profit and loss account in the year in

which they are incurred.

Freehold Land and Buildings

- Nil

Leasehold Land and Buildings over 50 years

- 2% over last 50 years of lease

Modernisation Costs of Buildings

- 5% ot 12.5%

Equipment and Vehicles

- 25%, 20% or 12.5%

Financial assets

Basic financial assets, including trade and other debtors and bank balances, are initially recognised at

transaction price.

At the end of each reporting period financial assets measured at cost are assessed for evidence of

impairment. Any impairment loss is recognised in the Consolidated Income Statement.

Financial assets are derecognised when the contractual rights to the cash flows from the asset expire

or are settled.

Financial liabilities

Basic financial liabilities, including trade and other creditors, are initially recognised at transaction

price.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary

course of business from suppliers. These are classed as current liabilities if payment is due within one

year or less. If not they are presented as non-current liabilities.

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

obligation is discharged, cancelled or expires.

Taxation

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

Income Statement, 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 balance sheet date.

Deferred tax

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

the balance sheet 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.

Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of

exchange ruling at the balance sheet date or if appropriate at the forward contract date. All

differences are taken to the consolidated income statement.

Pension costs

The group operates defined contribution pension schemes. The costs of the defined contribution

schemes are charged to the consolidated income statement in the period in which incurred.

Investments

Investments are shown at fair value. Any aggregate surplus or deficit arising from changes in fair

value is transferred to the consolidated income statement.

Investments in subsidiary undertakings are recognised at cost.

Operating leases

Ground rents payable are charged to the consolidated income statement in the period to which they

are attributable.

Going concern

The directors have considered the potential impact of the current Covid-19 pandemic on the business

and are satisfied that the company has sufficient cash reserves to meet all financial obligations for the

foreseeable future. The Accounts have therefore been prepared on the going concern basis.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 9 (2018 - 9 ) .

The average number of employees by undertakings that were proportionately consolidated during the

year was 9 (2018 - 9 ) .

4.	OPERATING PROFIT/(LOSS)

The operating profit (2018 - operating loss) is stated after charging:

2019

2018

£

£

Depreciation - owned assets

12,102

7,084

5.	EXCEPTIONAL ITEMS

2019

2018

£

£

Profit/(loss) on sale of Properties

321,204

(26,847

)

6.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2019

2018

£

£

Current tax:

UK corporation tax

146,000

365,000

Under/(over) provision in prior year

(61,065

)

(189,854

)

Total current tax

84,935

175,146

Deferred tax

600,000

(330,000

)

Tax on profit

684,935

(154,854

)

7.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent

company is not presented as part of these financial statements.

8.	TANGIBLE FIXED ASSETS

Group

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1st January 2019

3,708,631

115,907

3,824,538

Additions

-

4,398

4,398

Disposals

(61,378

)

-

(61,378

)

At 31st December 2019

3,647,253

120,305

3,767,558

DEPRECIATION

At 1st January 2019

351,515

65,131

416,646

Charge for year

-

12,102

12,102

Eliminated on disposal

(7,837

)

-

(7,837

)

At 31st December 2019

343,678

77,233

420,911

NET BOOK VALUE

At 31st December 2019

3,303,575

43,072

3,346,647

At 31st December 2018

3,357,116

50,776

3,407,892

Company

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1st January 2019

426,207

115,908

542,115

Additions

-

4,398

4,398

Disposals

(23,809

)

-

(23,809

)

At 31st December 2019

402,398

120,306

522,704

DEPRECIATION

At 1st January 2019

8,668

65,130

73,798

Charge for year

-

12,102

12,102

At 31st December 2019

8,668

77,232

85,900

NET BOOK VALUE

At 31st December 2019

393,730

43,074

436,804

At 31st December 2018

417,539

50,778

468,317

9.	FIXED ASSET INVESTMENTS

Group

Company

2019

2018

2019

2018

£

£

£

£

Other investments not loans

33,053,628

30,720,188

33,839,285

31,505,845

Additional information is as follows:

Group

Listed

Unlisted

investments

investments

Totals

£

£

£

COST OR VALUATION

At 1st January 2019

11,172,828

19,547,360

30,720,188

Additions

3,347

877,481

880,828

Disposals

(75,854

)

(1,811,556

)

(1,887,410

)

Revaluations

2,255,628

1,084,394

3,340,022

At 31st December 2019

13,355,949

19,697,679

33,053,628

NET BOOK VALUE

At 31st December 2019

13,355,949

19,697,679

33,053,628

At 31st December 2018

11,172,828

19,547,360

30,720,188

Cost or valuation at 31st December 2019 is represented by:

Listed

Unlisted

investments

investments

Totals

£

£

£

Valuation in 2019

13,355,949

19,697,679

33,053,628

Company

Listed

Unlisted

investments

investments

Totals

£

£

£

COST OR VALUATION

At 1st January 2019

11,172,828

19,547,360

30,720,188

Additions

3,347

877,481

880,828

Disposals

(75,854

)

(1,811,556

)

(1,887,410

)

Revaluations

2,255,628

1,084,394

3,340,022

At 31st December 2019

13,355,949

19,697,679

33,053,628

NET BOOK VALUE

At 31st December 2019

13,355,949

19,697,679

33,053,628

At 31st December 2018

11,172,828

19,547,360

30,720,188

Cost or valuation at 31st December 2019 is represented by:

Listed

Unlisted

investments

investments

Totals

£

£

£

Valuation in 2019

13,355,949

19,697,679

33,053,628

Investments (neither listed nor unlisted) were as follows:

2019

2018

£

£

Shares in subsidiary undertakings

785,657

785,657

The group or the company's investments at the Balance Sheet date in the share capital of companies

include the following:

Subsidiaries

Eskvale Properties Limited

Registered office:

Nature of business: Property rental

%

Class of shares:

holding

Ordinary

100.00

Eskland Limited

Registered office:

Nature of business: Property rental

%

Class of shares:

holding

Ordinary

100.00

ABI Ground Rents

Registered office:

Nature of business: Property rental

%

Class of shares:

holding

Ordinary

100.00

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2019

2018

2019

2018

£

£

£

£

Other debtors

63,369

123,085

567,062

345,986

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2019

2018

2019

2018

£

£

£

£

Trade creditors

6,412

1,890

-

-

Amounts owed to group undertakings

-

-

500,000

500,000

Taxation and social security

138,707

278,329

32,707

189,938

Other creditors

173,455

179,716

81,258

97,074

318,574

459,935

613,965

787,012

12.	OTHER FINANCIAL COMMITMENTS

At 31st December 2019, the company had commitments in respect of fixed asset investments

amounting to £1,231,226 (2018, £1,293,427).

13.	RELATED PARTY DISCLOSURES

Acorn Consultants Limited was related to the company by virtue of a nucleus of common directors

and shareholders. This company provides certain executive management services to Ashleybank

Investments Limited. Amounts totalling £100,000 (2018, £100,000) was paid to the company in

respect of such services.