Grange (Edinburgh) Heritable Investment Company Limited - Period Ending 2019-11-28

Grange (Edinburgh) Heritable Investment Company Limited

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3
Notes to the Unaudited Financial Statements	4 to 9

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

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Grange (Edinburgh) Heritable Investment Company Limited
for the Year Ended 28 November 2019

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Grange (Edinburgh) Heritable Investment Company Limited for the year ended 28 November 2019 as set out on pages 3 to 9 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.org.uk/accountspreparationguidance.

This report is made solely to the Board of Directors, as a body, in accordance with the terms of our engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Grange (Edinburgh) Heritable Investment Company Limited and state those matters that we have agreed to The Board of Directors, as a body, in this report in accordance with the requirements of the Institute of Chartered Accountants of Scotland as detailed at http://www.icas.org.uk/accountspreparationguidance. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Grange (Edinburgh) Heritable Investment Company 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 Grange (Edinburgh) Heritable Investment Company Limited. You consider that Grange (Edinburgh) Heritable Investment Company 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 Grange (Edinburgh) Heritable Investment Company 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
Chartered Accountants
91 West Savile Terrace
Edinburgh
Lothian
EH9 3DP

21 October 2020

Grange (Edinburgh) Heritable Investment Company Limited

(Registration number: SC024186)
Balance Sheet as at 28 November 2019

	Note	2019 £	2018 £
Fixed assets
Tangible assets	6	1	1
Investment property	7	3,490,000	3,490,000
Investments	8	-	850
Other financial assets	9	10,000	10,000
		3,500,001	3,500,851
Current assets
Debtors	10	139,219	187,426
Cash at bank and in hand		20,204	107,426
		159,423	294,852
Creditors: Amounts falling due within one year	11	(698,741)	(978,069)
Net current liabilities		(539,318)	(683,217)
Total assets less current liabilities		2,960,683	2,817,634
Creditors: Amounts falling due after more than one year	11	(690,670)	(690,670)
Provisions for liabilities	12	(260,318)	(256,230)
Net assets		2,009,695	1,870,734
Capital and reserves
Called up share capital	13	2,000	2,000
Capital reserve		229,367	229,367
Non distributable reserve		1,926,722	1,926,722
Other reserves		(29,244)	-
Profit and loss account		(119,150)	(287,355)
Total equity		2,009,695	1,870,734

For the financial year ended 28 November 2019 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.

Approved and authorised by the Board on 21 October 2020 and signed on its behalf by:
 

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

Mr J S Miller
Company secretary and director

Grange (Edinburgh) Heritable Investment Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 November 2019

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 £518,460 (2018 £797,207) due to its parent company, Stewart's (Edinburgh) Holdings Limited, and £169,605 (2018 £169,605) 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.

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.

Grange (Edinburgh) Heritable Investment Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 November 2019

Depreciation

Depreciation is charged so as to write off the cost of assets, less residual value, over their estimated 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 a non-distributable reserve which displays the cumulative unrealised surplus or deficit on revaluation net of deferred tax.

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.

Financial instruments

Classification
A loan balance due from a former subsidiary is classified as an other debtor.
 Recognition and measurement
The balance due from the former subsidiary was recognised initially at the transaction price and is subsequently measured at amortised cost using the effective interest method, less provision for impairment.
 Impairment
A provision for the impairment is established when there is objective evidence that the company will not be able to collect all amounts due according to the terms of the receivable.
 

Current versus non-current classification

The non-current portion of the balance due from the former subsidiary is due after one year and is disclosed in the debtors note.

3	Staff numbers

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

Grange (Edinburgh) Heritable Investment Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 November 2019

4	Profit before tax

Arrived at after charging/(crediting)

	2019 £	2018 £
Loan written off	11,464	-

5

Taxation

	2019		2018
	£		£
Current tax:
UK Corporation tax	5,588		8,256
Deferred tax	4,088		18,389
	9,676		26,645

6	Tangible assets

	Furniture, fittings and equipment  £	Total £
Cost
At 29 November 2018	118,804	118,804
At 28 November 2019	118,804	118,804
Depreciation
At 29 November 2018	118,803	118,803
At 28 November 2019	118,803	118,803
Carrying amount
At 28 November 2019	1	1
At 28 November 2018	1	1

7	Investment properties

At fair value	2019 £
At 29 November	3,490,000

The investment properties which have capitalised costs totalling £1,319,907 (2018 £1,319,907) were valued by the directors on 28 November 2019 at £3,490,000 (2018 £3,490,000) at their fair value.

8	Investments

	2019 £	2018 £
Investments in subsidiaries	-	850

Grange (Edinburgh) Heritable Investment Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 November 2019

Subsidiaries	£
Cost or valuation
At 29 November 2018	850
Disposals	(850)
At 28 November 2019	-
Provision
Carrying amount
At 28 November 2019	-
At 28 November 2018	850

9	Other financial assets (current and non-current)

	Financial assets at cost less impairment £	Total £
Non-current financial assets
Cost or valuation
At 29 November 2018	100,000	100,000
At 28 November 2019	100,000	100,000
Impairment
At 29 November 2018	90,000	90,000
At 28 November 2019	90,000	90,000
Carrying amount
At 28 November 2019	10,000	10,000

10

Debtors

	Note	2019 £	2018 £
Trade debtors		-	83
Amounts owed by group undertakings and undertakings in which the company has a participating interest		-	184,165
Prepayments		2,005	3,178
Other debtors		137,214	-
		139,219	187,426
Less non-current portion		(122,654)	-
		16,565	187,426

Details of non-current trade and other debtors

£122,654 (2018 -£Nil) of total balance £137,214 (2018 -£Nil) due from a former subsidiary is classified as non current.

Grange (Edinburgh) Heritable Investment Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 November 2019

11

Creditors

Creditors: amounts falling due within one year

	Note	2019 £	2018 £
Due within one year
Amounts owed to group undertakings and undertakings in which the company has a participating interest		518,460	797,207
Taxation and social security		5,588	8,256
Accruals and deferred income		5,088	3,000
Loan from director		169,605	169,606
		698,741	978,069

Creditors: amounts falling due after more than one year

	Note	2019 £	2018 £
Due after one year
Loans and borrowings	14	690,670	690,670

12	Provision for liabilities

		2019		2018
		£		£
Deferred tax		260,318		256,230
				Deferred tax
Balance at	29 November 2018			256,230
Charge / (credit) to P & L account during the year				4,088
Balance at	28 November 2019			260,318

13	Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	£	No.	£
Ordinary of £1 each	2,000	2,000	2,000	2,000

Grange (Edinburgh) Heritable Investment Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 November 2019

14	Loans and borrowings

	2019 £	2018 £
Non-current loans and borrowings
Other borrowings	690,670	690,670

	2019		2018
	£		£
Loans repayable in one to two years	-		-
Loans repayable in more than five years	690,670		690,670
	690,670		690,670

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