CADDER_HOLDINGS_LIMITED - Accounts

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

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

The directors acknowledge their 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 year 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.

Cadder Holdings Limited is a private company limited by shares incorporated in Scotland. The registered office is 221 West George Street, Glasgow, G2 2ND.

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.

At 31 December 2019 the company had net current liabilities of £true8,201,018 (2018: £8,839,086). The company pays special attention to the recent COVID-19 outbreak and the associated impact on the business. This includes:

• •    The impact on current tenants, their businesses and ability to pay rent;

• •    The consequential impact on the commercial property market and on property values;

• •    A fall in revenue and decreased cash flow due to lower general economic activity;

• •    The impact of the above on the company's ability to satisfy its liabilities as they fall due.

The directors acknowledge that the value of their investment could be adversely affected by the COVID-19 pandemic depending on how the situation evolves and how this impacts on the commercial property market.

The current and future financial position of the company, the cash flows and liquidity position have been reviewed considering COVID-19 and appropriate actions have been taken by the directors to strengthen these. Additional actions have been identified and implemented by the directors to mitigate the impacts.

Although it is not possible to reliably estimate the length or severity of the outbreak, at the time of approving the financial statements, the directors consider that, with the continued support of the directors and shareholders, the business will have adequate resources to navigate all foreseeable circumstances.

As such, the directors consider that it is appropriate to prepare the financial statements on the going concern basis.

Turnover represents gross rents received and receivable and fees received during the period.

Gross rents received and receivable from properties are included in the Profit and Loss Account on the basis that credit is taken when these rents fall due for payment. Provision is made against any rents due but not considered to be recoverable.

Property, plant and equipment 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:

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.

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. Changes in fair value are recognised in profit or loss.

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.

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 statement of financial position 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, which include trade and other receivables 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.

Basic financial liabilities, including trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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 income statement 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 income statement, 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.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Fair value of investment property

The valuation of the company's investment property is inherently subjective due to, among other factors, the nature of the property, its location and the expected future rental revenues from that particular property. As a result, the valuations the company places on its investment property are subject to a degree of uncertainty and are made on the basis of assumptions which may not prove to be accurate, particularly in periods of volatility or low transaction flow in the property market.

The fair value of investment property is appraised each year either by independent external valuers or on the basis of internal valuations. The best evidence of fair value are current prices in an active market for similar investment property. In the absence of such information, the directors determine the amount within a range of reasonable fair value estimate taking into account such assumptions as the tenure and tenancy details, ground conditions, the structural condition, prevailing market yields and comparable market transactions.

The average monthly number of persons (including directors) employed by the company during the year was 3 (2018 - 3).

Investment property was valued on a fair value basis on 14 November 2019. The directors view this valuation to be an appropriate estimate of the value of investment property at 31 December 2019. If investment property had not been fair valued it would have been included at cost of £16,215,183.

The long-term loans are secured by fixed charges over the properties they were used to acquire.

Included within reserves is £nil (2018: £286,350) of non-distributable reserves arising on the valuation of investment property. This amount is held net of deferred taxation.

Disclosures with regards to the COVID-19 pandemic can be seen in the Directors report and note 1.2 to the financial statements.

During the year the company entered into the following transactions with related parties:

Included within other payables is an amount of £4,126,717 (2018: £4,446,717) due to the director J S Pirrie and an amount of £4,126,717 (2018: £4,426,717) due to the director J M Pirrie. The loans are interest free and have no fixed repayment terms.

During the period, the company purchased £15,613 (2018: £15,103) of services in arms length transactions from Nevis Capital LLP, an organisation in which directors of the company, J M Pirrie and J S Pirrie, are designated members. At 31 December 2019, £3,120 (2018: £1560) was outstanding.

During the period, the company made sales of £nil (2018: £1,011) of services in arms length transactions to Nevis Capital LLP, an organisation in which directors of the company, J M Pirrie and J S Pirrie, are designated members.

During the period, the company made sales of £nil (2018: £190) to LCH Holdings Limited, a company in which directors of the company, J M Pirrie and J S Pirrie, are directors.

During the period, the company made purchases of £nil (2018: £15,769) from Cadder Investments. There was no balance outstanding at year end.

During the period, the company paid dividends of £37,500 (2018: £nil) to J S. Pirrie and Family Holdings Ltd and dividends of £37,500 (2018: £nil) to ROCC Holdings Ltd, organisations in which J M Pirrie and J S Pirrie are directors.

The company is jointly controlled by John S. Pirrie & Family Holdings Limited and ROCC Holdings Limited.