Dunadd Asset Management Ltd - Limited company accounts 20.1

REGISTERED NUMBER: SC283417 (Scotland)

Report of the Directors and

Financial Statements

for the Year Ended 31 March 2020

for

Dunadd Asset Management Ltd

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

Income Statement

5

Other Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

8

Cash Flow Statement

9

Notes to the Cash Flow Statement

10

Notes to the Financial Statements

11

DIRECTORS:

P A Wylie

A M Macdonald

SECRETARY:

A M Macdonald

REGISTERED OFFICE:

26 New Street

Paisley

PA1 1WB

REGISTERED NUMBER:

SC283417 (Scotland)

AUDITORS:

Gerber Landa & Gee

Statutory Auditor

Chartered Accountants

Pavilion 1

Finnieston Business Park

Minerva Way

GLASGOW

G3 8AU

The directors present their report with the financial statements of the company for the year ended 31 March 2020.

FUTURE DEVELOPMENTS

The company currently manages one investment fund and the directors anticipate that the company will be wound up once this fund is terminated. No reliable estimate can be made on the remaining life of the fund and there is no impact on the ability of the company to meet its liabilities as they fall due.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2019 to the date of this report.

P A Wylie

A M Macdonald

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Gerber Landa & Gee, will be proposed for re-appointment at the forthcoming Annual General Meeting.

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:

P A Wylie - Director

29 March 2021

Opinion

We have audited the financial statements of Dunadd Asset Management Ltd (the 'company') for the year ended 31 March 2020 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2020 and of its loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Darren Smith (Senior Statutory Auditor)

for and on behalf of Gerber Landa & Gee

Statutory Auditor

Chartered Accountants

Pavilion 1

Finnieston Business Park

Minerva Way

GLASGOW

G3 8AU

29 March 2021

TURNOVER

3

49,310

196,568

Administrative expenses

126,714

134,484

(77,404

)

62,084

Other operating income

3

-

OPERATING (LOSS)/PROFIT

5

(77,401

)

62,084

Amounts written off investments

6

7,242

12,069

(LOSS)/PROFIT BEFORE TAXATION

(84,643

)

50,015

Tax on (loss)/profit

7

(11,819

)

11,819

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(72,824

)

38,196

(LOSS)/PROFIT FOR THE YEAR

(72,824

)

38,196

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(72,824

)

38,196

FIXED ASSETS

Investments

8

31,984

39,226

CURRENT ASSETS

Debtors

9

296,038

304,219

Cash at bank

79,924

186,835

375,962

491,054

CREDITORS

Amounts falling due within one year

10

24,905

74,415

NET CURRENT ASSETS

351,057

416,639

TOTAL ASSETS LESS CURRENT LIABILITIES

383,041

455,865

CAPITAL AND RESERVES

Called up share capital

11

65,000

65,000

Retained earnings

12

318,041

390,865

SHAREHOLDERS' FUNDS

383,041

455,865

The financial statements were approved by the Board of Directors and authorised for issue on 29 March 2021 and were signed on its behalf by:

P A Wylie - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2018

65,000

352,669

417,669

Changes in equity

Total comprehensive income

-

38,196

38,196

Balance at 31 March 2019

65,000

390,865

455,865

Changes in equity

Total comprehensive income

-

(72,824

)

(72,824

)

Balance at 31 March 2020

65,000

318,041

383,041

Cash flows from operating activities

Cash generated from operations

1

(63,435

)

107,305

Tax paid

(43,476

)

(63,917

)

Net cash from operating activities

(106,911

)

43,388

Cash flows from financing activities

Amount withdrawn by directors

-

(97,406

)

Net cash from financing activities

-

(97,406

)

Decrease in cash and cash equivalents

(106,911

)

(54,018

)

Cash and cash equivalents at beginning of year

2

186,835

240,853

Cash and cash equivalents at end of year

2

79,924

186,835

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.20

31.3.19

£

£

(Loss)/profit before taxation

(84,643

)

50,015

Impairment of Investment

7,242

12,069

(77,401

)

62,084

Decrease in trade and other debtors

20,000

52,617

Decrease in trade and other creditors

(6,034

)

(7,396

)

Cash generated from operations

(63,435

)

107,305

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2020

31.3.20

1.4.19

£

£

Cash and cash equivalents

79,924

186,835

Year ended 31 March 2019

31.3.19

1.4.18

£

£

Cash and cash equivalents

186,835

240,853

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.19

Cash flow

At 31.3.20

£

£

£

Net cash

Cash at bank

186,835

(106,911

)

79,924

186,835

(106,911

)

79,924

Total

186,835

(106,911

)

79,924

1.	STATUTORY INFORMATION

Dunadd Asset Management Ltd 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 £.

Turnover

Turnover represents net invoiced sales of investment fund management services, excluding value added tax. Sales are recognised in the period to which they relate to.

Financial instruments

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term trade creditors are measured at transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held with banks, other short term liquid investments with maturities of three months or less, and bank overdrafts.

Taxation

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

Investments

Investments in shares are included at fair value.

3.

TURNOVER

The turnover and loss (2019 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.3.20

31.3.19

£

£

Investment Fund Management

49,310

196,568

49,310

196,568

4.	EMPLOYEES AND DIRECTORS

31.3.20

31.3.19

£

£

Wages and salaries

90,083

101,500

Social security costs

2,739

3,608

Other pension costs

-

250

92,822

105,358

The average number of employees during the year was as follows:

31.3.20

31.3.19

Administration

1

1

Directors

2

2

3

3

31.3.20

31.3.19

£

£

Directors' remuneration

84,000

84,000

The staff costs total include £84,000 (2019: £84,000) of remuneration, fees and pension contributions for the company directors.

5.	OPERATING (LOSS)/PROFIT

The operating loss (2019 - operating profit) is stated after charging:

31.3.20

31.3.19

£

£

Auditors' remuneration

6,900

5,750

6.

AMOUNTS WRITTEN OFF INVESTMENTS

31.3.20

31.3.19

£

£

Amounts w/o invs

7,242

12,069

7.

TAXATION

Analysis of the tax (credit)/charge

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

31.3.20

31.3.19

£

£

Current tax:

UK corporation tax

(11,819

)

11,819

Tax on (loss)/profit

(11,819

)

11,819

8.	FIXED ASSET INVESTMENTS

Listed

investments

£

COST

At 1 April 2019

39,226

Impairments

(7,242

)

At 31 March 2020

31,984

NET BOOK VALUE

At 31 March 2020

31,984

At 31 March 2019

39,226

Fair value of investments is determined by the share price listed on the NEX Growth Exchange.

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.20

31.3.19

£

£

Other debtors

26,093

26,093

Directors' current accounts

194,812

194,812

Tax

11,819

-

Section 455 taxation debtor

63,314

63,314

Accrued income

-

20,000

296,038

304,219

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.20

31.3.19

£

£

Tax

-

11,819

Section 455 taxation creditor

-

31,657

Social security and other taxes

5,500

6,661

VAT

-

6,022

Accrued expenses

19,405

18,256

24,905

74,415

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.3.20

31.3.19

value:

£

£

65,000

Ordinary

£1

65,000

65,000

12.

RESERVES

Retained

earnings

£

At 1 April 2019

390,865

Deficit for the year

(72,824

)

At 31 March 2020

318,041

13.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 March 2020 and 31 March 2019:

31.3.20

31.3.19

£

£

P A Wylie

Balance outstanding at start of year

97,406

97,406

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

97,406

97,406

A M Macdonald

Balance outstanding at start of year

97,406

-

Amounts advanced

-

97,406

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

97,406

97,406

14.	RELATED PARTY DISCLOSURES

An amount of £97,406 (2019: £97,406 due from) was due from P Wylie at the year end date. This loan carries no interest and has no fixed repayment terms.

An amount of £97,406 (2019: £97,406 due from) was due from A MacDonald at the year end date. This loan carries no interest and has no fixed repayment terms.

Included within Debtors is a total of £26,093 (2019: £26,093) which is due from New Street Trustees Limited.

New Street Trustees Limited and Dunadd Asset Management Limited are related by virtue of Peter Wylie who is a shareholder and director in New Street Trustees Limited and Dunadd Asset Management Limited.

15.	ULTIMATE CONTROLLING PARTY