Southesk_Developments_Lim - Accounts


Company Registration No. SC181476 (Scotland)
Southesk Developments Limited
Unaudited financial statements
for the year ended 31 December 2016
Pages for filing with Registrar
Southesk Developments Limited
Company information
Directors
JG Mackie
KJ Mackie
JE Mackie
Secretary
KJ Mackie
Company number
SC181476
Registered office
46-48 Clerk Street
Brechin
Angus
DD9 6AY
Accountants
Henderson Loggie
The Vision Building
20 Greenmarket
Dundee
DD1 4QB
Bankers
Bank of Scotland plc
3-5 Albyn Place
Aberdeen
AB10 1PY
Solicitors
Blackadders LLP
30-34 Reform Street
Dundee
DD1 1RJ
Southesk Developments Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
Southesk Developments Limited
Balance sheet
as at 31 December 2016
- 1 -
2016
2015
Notes
£
£
£
£
Fixed assets
Tangible assets
3
-
634
Investment properties
4
100,812
100,812
Investments
5
30,402
30,402
131,214
131,848
Current assets
Debtors
6
138,437
179,560
Cash at bank and in hand
7,201
5,388
145,638
184,948
Creditors: amounts falling due within one year
7
(338,804)
(331,175)
Net current liabilities
(193,166)
(146,227)
Total assets less current liabilities
(61,952)
(14,379)
Provisions for liabilities
(8,080)
2,291
Net liabilities
(70,032)
(12,088)
Capital and reserves
Called up share capital
8
2
2
Revaluation reserve
9
49,800
60,000
Profit and loss reserves
10
(119,834)
(72,090)
Total equity
(70,032)
(12,088)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 December 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

Southesk Developments Limited
Balance sheet (continued)
as at 31 December 2016
- 2 -

These financial statements have been prepared and delivered 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 20 December 2017 and are signed on its behalf by:
KJ Mackie
Director
Company Registration No. SC181476
Southesk Developments Limited
Notes to the financial statements
for the year ended 31 December 2016
- 3 -
1
Accounting policies
Company information

Southesk Developments Limited is a private company limited by shares incorporated in Scotland. The registered office is 46-48 Clerk Street, Brechin, Angus, DD9 6AY.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies' regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover
Turnover with regards the property development and operation of jet washes represents amounts receivable for goods and services net of VAT and trade discounts.  Turnover with regards the Licenced Betting Office represents the amounts staked comprising the gross takings receivable from customers in respect of individual bets placed.  Winnings re-staked prior to being withdrawn from FOBTs are grossed up into revenue.
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery
25% straight line
Fixtures, fittings & equipment
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Southesk Developments Limited
Notes to the financial statements (continued)
for the year ended 31 December 2016
1
Accounting policies (continued)
- 4 -
1.5
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.

 

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Southesk Developments Limited
Notes to the financial statements (continued)
for the year ended 31 December 2016
1
Accounting policies (continued)
- 5 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
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.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash 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 rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Southesk Developments Limited
Notes to the financial statements (continued)
for the year ended 31 December 2016
1
Accounting policies (continued)
- 6 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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 interest method.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax
The tax expense represents the sum of the corporation tax and deferred tax charge for the year.

The tax currently payable is based on taxable profit for the year.  The company's liability for current tax is calculated using the tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is measured on differences between the carrying amounts of assets and liabilities in the accounts and the corresponding tax bases, as used in the computation of taxable profit.  Deferred tax liabilities are generally recognised for all taxable timing differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available.  Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised.  Deferred tax is charged or credited in the profit and loss accounts, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Southesk Developments Limited
Notes to the financial statements (continued)
for the year ended 31 December 2016
1
Accounting policies (continued)
- 7 -
1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was 3 (2015 - 3).

3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2016 and 31 December 2016
23,981
Depreciation and impairment
At 1 January 2016
23,347
Depreciation charged in the year
634
At 31 December 2016
23,981
Carrying amount
At 31 December 2016
-
At 31 December 2015
634
Southesk Developments Limited
Notes to the financial statements (continued)
for the year ended 31 December 2016
- 8 -
4
Investment property
2016
£
Fair value
At 1 January 2016 and 31 December 2016
100,812

The company's property portfolio was revalued by chartered surveyors Graham & Sibbald in October 2010 on a current market value basis. The directors consider that this still represents the fair value of the properties.

 

5
Fixed asset investments
2016
2015
£
£
Investments
30,402
30,402

The investment is carried at cost as the directors do not believe that this value is materially different to market value.

6
Debtors
2016
2015
Amounts falling due within one year:
£
£
Trade debtors
-
24,350
Corporation tax recoverable
-
17,469
Amounts due from group undertakings
31,535
123,668
Other debtors
106,902
14,073
138,437
179,560
7
Creditors: amounts falling due within one year
2016
2015
£
£
Trade creditors
-
7,386
Other taxation and social security
4,186
-
Other creditors
334,618
323,789
338,804
331,175
Southesk Developments Limited
Notes to the financial statements (continued)
for the year ended 31 December 2016
- 9 -
8
Called up share capital
2016
2015
£
£
Ordinary share capital
Issued and fully paid
2Ordinary shares of £1 each
2
2
2
2

The company has one class of ordinary shares which carry full ownership, voting and equity rights,

9
Revaluation reserve

This is a non-distributable reserve and represents the cumulative effect of revaluations of tangible fixed assets less deferred tax.

10
Profit and loss reserves

Profit and loss reserves include all current and prior period retained profits and losses.

Southesk Developments Limited
Notes to the financial statements (continued)
for the year ended 31 December 2016
- 10 -
11
Parent company

The parent company is Kerojo Developments Limited, a company incorporated in Great Britain and registered in Scotland which is controlled by KJ Mackie, director and shareholder.

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