ABERCASTLE_NV_LIMITED - Accounts

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

For the financial period ended 31 August 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 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 period in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Abercastle NV Limited is a private company limited by shares incorporated in Scotland. The registered office is 6 St Colme Street, Edinburgh, EH3 6AD.

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 investment properties at fair value. The principal accounting policies adopted are set out below.

Abercastle NV Limited is a wholly owned subsidiary of Abercastle Investments Limited, a company registered in Scotland, with their registered office being Quartermile Two, 2 Lister Square, Edinburgh, EH3 9GL.

The company is funded by way oftrue borrowings from the ultimate parent company, Applied Capital Property Holdings Limited. As a result, the company is dependent on the ongoing support of Applied Capital Property Holdings Limited to enable it to meet its debts and other financial obligations as they fall due. Applied Capital Property Holdings Limited has pledged not to seek repayment of all borrowings until the company has sufficient funds to meet all of its liabilities as they fall due. Further, the director has carefully considered the current trading position of the business, including any potential impact as a result of covid-19 and all the financial and other resources available to the company and considers it appropriate to prepare the accounts on a going concern basis.

The profit and loss account presented reflects a 17 month period following a change in the accounting period to be consistent with the other companies in the group. The comparative profit and loss account reflects a 12 month period and as such the two periods are not entirely comparable.

Turnover represents rental income and is recognised at the fair value of the consideration receivable over the term of the lease and is shown net of VAT.

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

Cash and cash equivalents 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.

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.

Debtors with no stated interest rate or receivable within one year are recorded at transaction price. Any losses arising on impairment are recognised in the profit and loss account.

Creditors with no stated interest rate and payable within one year are recorded at transaction price.

All interest bearing loans and borrowings which are basic financial instruments are initially recorded at the present value of cash payable. After initial recognition they are measured at amortised cost.

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

The tax expense represents the sum of the tax currently payable and deferred 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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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 account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The average monthly number of persons (including directors) employed by the company during the period was 0 (2018: 0).

Investment properties comprise three commercial properties. The fair value of one investment property has been arrived at on the basis of a valuation carried out in February 2017 by Colliers International Valuation UK LLP, an independent third party with a recognised and relevant professional qualification. The valuation was made on an open market value basis by reference to market evidence of transaction prices and with reference to rental yields.

The other two investment properties were acquired in February 2018 for a total consideration of £355,000. The director is of the opinion that the property market has not materially fluctuated since this date and therefore the fair value of these properrties are accurately represented by the value for which they were acquired.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

During the period post year end as a result from the outbreak of covid-19 there is an unprecedented level of uncertainty about the economy, and it is anticipated that global markets will reduce in value in the short to medium term. Any impact on the financial statements as at 31 August 2019, and in particular on the valuation of investment properties, would be a non-adjusting event and will be reflected in the financial statements to 31 August 2020. The director has also considered the potential implications on going concern and, despite any potential covid-19 implications arising, believes the financial statements should continue to be prepared on a going concern basis.

The company has taken advantage of the disclosure exemption available in FRS 102 section 1A appendix C whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.

The directors are of the opinion that all related party transactions are conducted under normal market conditions and on an arm's length basis and therefore do not need to be disclosed under FRS 102 section 1A appendix C.