Pentland Edge Limited - Period Ending 2023-06-30

Pentland Edge Limited

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3
Notes to the Unaudited Financial Statements	4 to 8

Pentland Edge Limited

Company Information

Director

Mr R Forbes

Registered office

4th Floor 115 George Street Edinburgh EH2 4JN

Accountants Registered Number

Brown, Scott & Main Chartered Accountants 91 West Savile Terrace Edinburgh EH93DP SC344590

Chartered Accountants' Report to the Director on the Preparation of the Unaudited Statutory Accounts of
Pentland Edge Limited
for the Year Ended 30 June 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Pentland Edge Limited for the year ended 30 June 2023 as set out on pages 3 to 8 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants of Scotland, we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/accountspreparationguidance.

This report is made solely to you, in accordance with the terms of our engagement. Our work has been undertaken solely to prepare for your approval the financial information of Pentland Edge Limited and state those matters that we have agreed to state to you in this report in accordance with the requirements of the Institute of Chartered Accountants of Scotland as detailed at http://www.icas.com/accountspreparationguidance. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the director for our work or for this report.

It is your duty to ensure that Pentland Edge Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Pentland Edge Limited. You consider that Pentland Edge Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Pentland Edge Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Brown, Scott & Main
91 West Savile Terrace
Edinburgh
Lothian
EH9 3DP

18 March 2024

Pentland Edge Limited

(Registration number: SC344590)
Balance Sheet as at 30 June 2023

	Note	2023 £	2022 £
Fixed assets
Intangible assets	5	34,145	41,082
Tangible assets	6	1,070	2,334
Other financial assets	7	92,837	69,364
		128,052	112,780
Current assets
Debtors	8	452	26,086
Cash at bank and in hand		49,502	37,313
		49,954	63,399
Creditors: Amounts falling due within one year	9	(7,079)	(12,730)
Net current assets		42,875	50,669
Total assets less current liabilities		170,927	163,449
Provisions for liabilities		(5,407)	(2,139)
Net assets		165,520	161,310
Capital and reserves
Called up share capital	11	1,000	1,000
Revaluation reserve		23,514	8,557
Retained earnings		141,006	151,753
Shareholders' funds		165,520	161,310

For the financial year ending 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the director on 17 March 2024
 

......................................... Mr R Forbes Director

Pentland Edge Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

1	General information

The company is a private company limited by share capital, incorporated in Scotland.

The address of its registered office is:
4th Floor
115 George Street
Edinburgh
EH2 4JN

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of preparation

These Financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006 using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The presentation currency is sterling.

Revenue recognition

Turnover represents the total value, excluding value added tax, of the revenue earned during the year on software development and consultancy contracts. Turnover recognised in advance of the client being billed is included in debtors.

Tangible assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

Computer equipment - 20% straight line
 

Intangible assets

Development costs represent capitalised expenditure on products considered technically, commercially and financially viable. The expenditure is capitalised, and amortisation will be applied over five years, the period over which the company expects to benefit from the sale of the products. Development expenditure which does not satisfy these criteria and any research expenditure is written off to the profit and loss account in the year in which it is incurred.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost over their useful life as follows:

Asset class	Amortisation method and rate
Development costs	20% Straight line

Impairment of assets

 

At each reporting date fixed asset investments are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
 

Pentland Edge Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

Financial instruments

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.

Basic Financial Assets
Basic financial assets, including 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 unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market value rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic Financial Liabilities
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective rate of interest.
 

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Going concern

The financial statements have been prepared on the going concern basis. The director considers this basis is appropriate as the company continues to trade profitably and to meet its day to day commitments from working capital as they fall due. The director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

Pension costs and other post-retirement benefits

The company contributes to defined contribution pension schemes for its employees. A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Investments

Non-current financial assets comprise non-puttable ordinary shares in publicly traded companies which are recognised at fair value with changes in fair value recognised in profit and loss. This is transferred, for ease of identification, to the fair value reserve which displays the cumulative unrealised surplus or deficit on revaluation. This transfer and the resultant balances are shown in the notes to the financial statements.

Pentland Edge Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date.

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 2 (2022 - 2).

4

Taxation

The tax charge on the profit for the year was as follows:

	2023  £	2022  £
UK corporation tax	(4,870)	(2,750)
Deferred tax	(3,268)	915
	(8,138)	(1,835)

5	Intangible assets

	Other intangible assets £	Total £
Cost or valuation
At 1 July 2022	54,956	54,956
At 30 June 2023	54,956	54,956
Amortisation
At 1 July 2022	13,874	13,874
Amortisation charge	6,937	6,937
At 30 June 2023	20,811	20,811
Carrying amount
At 30 June 2023	34,145	34,145
At 30 June 2022	41,082	41,082

Pentland Edge Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

6	Tangible assets

	Plant and machinery £	Total £
Cost or valuation
At 1 July 2022	10,172	10,172
At 30 June 2023	10,172	10,172
Depreciation
At 1 July 2022	7,838	7,838
Charge for the year	1,264	1,264
At 30 June 2023	9,102	9,102
Carrying amount
At 30 June 2023	1,070	1,070
At 30 June 2022	2,334	2,334

7	Other financial assets (current and non-current)

	Financial assets at fair value through profit and loss £	Total £
Non-current financial assets
Cost or valuation
At 1 July 2022	69,364	69,364
Fair value adjustments	13,312	13,312
Additions	27,095	27,095
Disposals	(16,934)	(16,934)
At 30 June 2023	92,837	92,837
Impairment
Carrying amount
At 30 June 2023	92,837	92,837

8

Debtors

Current	2023 £	2022 £
Trade debtors	-	25,906
Prepayments	180	180
Other debtors	272	-
	452	26,086

Pentland Edge Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

9

Creditors

Creditors: amounts falling due within one year

	2023 £	2022 £
Due within one year
Taxation and social security	4,870	10,402
Accruals and deferred income	2,209	2,328
	7,079	12,730

10	Provision for liabilities

	2023  £	2022  £
Deferred tax	5,407	2,139

	Deferred tax
At 1 July 2022	2,139
(Release) / Charge	3,268
At 30 June 2023	5,407

11	Share capital

Allotted, called up and fully paid shares

	2023		2022
	No.	£	No.	£
Ordinary share capital of £1 each	1,000	1,000	1,000	1,000

12

Dividends

		2023		2022
		£		£
Interim dividend of £20.00 (2022 - £20.00) per ordinary share		20,000		20,000