Grange (Edinburgh) Heritable Investment Company Limited - Period Ending 2018-11-28

Registration number: SC024186

Grange (Edinburgh) Heritable Investment Company Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 28 November 2018

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

Grange (Edinburgh) Heritable Investment Company Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 8

Grange (Edinburgh) Heritable Investment Company Limited

Company Information

Directors

Mrs A Miller Mr D O Douglas Mr J S Miller

Company secretary

Mr J S Miller

Registered office Registered number

2 Renaissance View Dirleton North Berwick East Lothian EH39 5HL SC024186

Accountants

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

Page 1

Grange (Edinburgh) Heritable Investment Company Limited

(Registration number: SC024186)
Balance Sheet as at 28 November 2018

	Note	2018 £	2017 £
Fixed assets
Tangible assets	4	1	1
Investment property	5	3,490,000	3,360,000
Investments	6	850	850
Other financial assets	7	10,000	10,000
		3,500,851	3,370,851
Current assets
Debtors	8	187,426	191,025
Cash at bank and in hand		107,426	20,853
		294,852	211,878
Creditors: Amounts falling due within one year	9	(978,069)	(760,686)
Net current liabilities		(683,217)	(548,808)
Total assets less current liabilities		2,817,634	2,822,043
Creditors: Amounts falling due after more than one year	9	(690,670)	(860,275)
Provisions for liabilities	10	(256,230)	(237,841)
Net assets		1,870,734	1,723,927
Capital and reserves
Called up share capital	11	2,000	2,000
Capital reserve		229,367	229,367
Fair value reserve		1,926,722	1,815,111
Profit and loss account		(287,355)	(322,551)
Total equity		1,870,734	1,723,927

For the financial year ended 28 November 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' 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 directors acknowledge their 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.

The notes on pages 4 to 8 form an integral part of these financial statements.

Page 2

Grange (Edinburgh) Heritable Investment Company Limited

(Registration number: SC024186)
Balance Sheet as at 28 November 2018

Approved and authorised by the Board on 13 August 2019 and signed on its behalf by:
 

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

Mr J S Miller
Company secretary and director

The notes on pages 4 to 8 form an integral part of these financial statements.

Page 3

Grange (Edinburgh) Heritable Investment Company Limited

Notes to the Financial Statements for the Year Ended 28 November 2018

1	General information

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

The address of its registered office is:
2 Renaissance View
Dirleton
North Berwick
East Lothian
EH39 5HL
Scotland

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.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared 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.

Going concern

The financial statements have been prepared on a going concern basis. The directors have concluded the going concern basis is appropriate as they expect the company will meet its working capital commitments as they fall due out of normal cashflow and expect it to be able to continue to do so. The company's creditors include £184,165 (2017 £187,764) due to its parent company, Stewart's (Edinburgh) Holdings Limited, and £169,605 (2017 nil) due to its managing director.

Revenue recognition

Turnover represents the amount of rental income receivable for the year.

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 income 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.

Page 4

Grange (Edinburgh) Heritable Investment Company Limited

Notes to the Financial Statements for the Year Ended 28 November 2018

Tangible assets

Tangible assets are stated in the balance sheet at cost, less accumulated depreciation and accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, less residual value, over their esimated useful lives, as follows:

Asset class	Depreciation method and rate
Fixtures and fittings	10% per annum straight line
Office equipment	20% per annum straight line

Investment property

Investment properties are carried at fair value. Changes in fair value are recognised in profit or loss. This is transferred, for ease of identification, to the fair value reserve which displays the cumulative unrealised surplus or deficit on revaluation.

Investments

Fixed asset investments, other than investment properties which are disclosed separately, comprise equity shares in subsidiary undertakings and other unlisted equity investments.

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.

3

Taxation

	2018		2017
	£		£
Current tax:
UK Corporation tax	8,256		(5,465)
Deferred tax	18,389		6,147
	26,645		682

Page 5

Grange (Edinburgh) Heritable Investment Company Limited

Notes to the Financial Statements for the Year Ended 28 November 2018

4	Tangible assets

	Furniture, fittings and equipment  £	Total £
Cost
At 29 November 2017	118,804	118,804
At 28 November 2018	118,804	118,804
Depreciation
At 29 November 2017	118,803	118,803
At 28 November 2018	118,803	118,803
Carrying amount
At 28 November 2018	1	1
At 28 November 2017	1	1

5	Investment properties

At fair value	2018 £
At 29 November	3,360,000
Fair value adjustments	130,000
At 28 November	3,490,000

Investment properties have been revalued at fair value by the directors at 28 November 2018.

6	Investments

	2018 £	2017 £
Investments in subsidiaries	850	850

Subsidiaries	£
Cost or valuation
At 29 November 2017	850
Provision
Carrying amount
At 28 November 2018	850
At 28 November 2017	850

Page 6

Grange (Edinburgh) Heritable Investment Company Limited

Notes to the Financial Statements for the Year Ended 28 November 2018

7	Other financial assets (current and non-current)

	Financial assets at cost less impairment £	Total £
Non-current financial assets
Cost or valuation
At 29 November 2017	100,000	100,000
At 28 November 2018	100,000	100,000
Impairment
At 29 November 2017	90,000	90,000
At 28 November 2018	90,000	90,000
Carrying amount
At 28 November 2018	10,000	10,000

8

Debtors

	Note	2018 £	2017 £
Trade debtors		83	83
Amounts owed by group undertakings and undertakings in which the company has a participating interest		184,165	187,764
Prepayments		3,178	3,178
		187,426	191,025

9

Creditors

Creditors: amounts falling due within one year

	Note	2018 £	2017 £
Due within one year
Amounts owed to group undertakings and undertakings in which the company has a participating interest		797,207	757,601
Accruals and deferred income		3,000	3,000
Other creditors		177,862	85
		978,069	760,686

Creditors: amounts falling due after more than one year

Page 7

Grange (Edinburgh) Heritable Investment Company Limited

Notes to the Financial Statements for the Year Ended 28 November 2018

	Note	2018 £	2017 £
Due after one year
Loans and borrowings	12	690,670	860,275

10	Provision for liabilities

		2018		2017
		£		£
Deferred tax		256,230		237,841
				Deferred tax
Balance at	29 November 2017			237,841
Charge / (credit) to P & L account during the year				18,389
Balance at	28 November 2018			256,230

11	Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
Ordinary of £1 each	2,000	2,000	2,000	2,000

12	Loans and borrowings

	2018 £	2017 £
Non-current loans and borrowings
Other borrowings	690,670	860,275

	2018		2017
	£		£
Loans repayable in one to two years	-		169,605
Loans repayable in more than five years	690,670		690,670
	690,670		860,275

Each loan is secured in favour of the Mortgage Trust Limited by a standard security over one of the company's investment properties.

Page 8