Gauld Properties Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC074925 (Scotland)

GAULD PROPERTIES LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

Page

Company Information

1

Balance Sheet

2

to

3

Notes to the Financial Statements

4

to

11

Chartered Accountants' Report

12

DIRECTORS:

Stanley Thomson Gauld

Sheila Gauld

SECRETARY:

Sharon Stewart

REGISTERED OFFICE:

22 Milnpark Street

Glasgow

G41 1BB

REGISTERED NUMBER:

SC074925 (Scotland)

ACCOUNTANTS:

Milne Craig

Chartered Accountants

Abercorn House

79 Renfrew Road

Paisley

Renfrewshire

PA3 4DA

FIXED ASSETS

Tangible assets

5

14,786

5,542

Investments

6

73

73

Investment property

7

15,162,219

15,162,219

15,177,078

15,167,834

CURRENT ASSETS

Debtors

8

3,732,221

4,519,753

Investments

9

332,199

199,193

Cash at bank

793,083

603,635

4,857,503

5,322,581

CREDITORS

Amounts falling due within one year

10

1,443,596

2,464,423

NET CURRENT ASSETS

3,413,907

2,858,158

TOTAL ASSETS LESS CURRENT LIABILITIES

18,590,985

18,025,992

CREDITORS

Amounts falling due after more than one year

11

(4,549,062

)

(4,950,883

)

PROVISIONS FOR LIABILITIES

13

(1,496,003

)

(1,336,958

)

NET ASSETS

12,545,920

11,738,151

CAPITAL AND RESERVES

Called up share capital

100

100

Fair value reserve

14

7,206,068

6,904,866

Retained earnings

5,339,752

4,833,185

SHAREHOLDERS' FUNDS

12,545,920

11,738,151

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Profit and loss has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 24 June 2020 and were signed on its behalf by:

Stanley Thomson Gauld - Director

1.	STATUTORY INFORMATION

Gauld Properties Limited is a private company, limited by shares, registered in Scotland. The Company's registration number is SC074925 and registered office address is 22 Milnpark Street, Glasgow, G41 1BB.

The nature of the Company's operations and its principal activities are the development, sale and letting of property.

2.	STATEMENT OF COMPLIANCE

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

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

Functional currency

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 £.

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.

Critical accounting judgements and key sources of estimation uncertainty

In preparing these financial statements, the directors have made the following judgements:

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Assets are considered for indications of impairment. If required an impairment review will be carried out and a decision made on possible impairment. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Bad debts are provided for where objective evidence of the need for a provision exists.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Consolidation is given to the point at which the Company is entitled to receive the income, excluding discount, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue from the provision of services is recognised in the period in which the services are provided when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due;

- the costs incurred can be measured reliably.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

33% on cost

Motor vehicles

-

33% on cost

Computer equipment

-

33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Investment property

Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment properties are recognised initially at cost.

I. Investment properties whose fair value can be measured reliably without due cost or effort are held at fair value. Any gains or losses arising from changes in the fair value are recognised in profit or loss in the period they arise, and

II. no depreciation is provided in respect of investment properties applying the fair value model.

if a reliable measure is not available without undue cost or effort for an item of investment property, this item is therefore accounted for as tangible fixed assets in accordance with section 17 until a reliable measure of fair value becomes available.

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 transactions 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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

Basic financial liabilities

Basic financial liabilities, including creditors, 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.

Taxation

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only 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.

If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

With the exception of changes arising on the initial recognition of a business combination, the tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income).

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

Deferred tax assets and deferred tax liabilities are offset only if the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short term liquid investments with original maturities of three months or less.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

Non-financial assets

An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Financial assets

For financial assets carried at amortised cost, the amount of impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal.

An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Other financial assets

Other financial assets include investments which are not investments in subsidiaries, associates or joint ventures. Investments are initially measured at fair value which usually equates to the transaction price and subsequently at fair value where investments are listed on an active market or where non listed investments can be reliably measured. Movements in fair value are measured in the profit and loss. When fair value cannot be measured reliably or can no longer be measured reliably, investments are measured at cost less impairment.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 7 (2018 - 7 ) .

5.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1 January 2019

5,000

14,800

9,755

29,555

Additions

-

13,710

-

13,710

At 31 December 2019

5,000

28,510

9,755

43,265

DEPRECIATION

At 1 January 2019

2,996

11,955

9,062

24,013

Charge for year

1,667

2,327

472

4,466

At 31 December 2019

4,663

14,282

9,534

28,479

NET BOOK VALUE

At 31 December 2019

337

14,228

221

14,786

At 31 December 2018

2,004

2,845

693

5,542

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2019

and 31 December 2019

73

NET BOOK VALUE

At 31 December 2019

73

At 31 December 2018

73

7.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2019

and 31 December 2019

15,162,219

NET BOOK VALUE

At 31 December 2019

15,162,219

At 31 December 2018

15,162,219

Investment properties are represented by properties situated in the United Kingdom and Germany.

The valuation of investment properties made as at 31 December 2019 by the director on an open market basis.

No depreciation is provided in respect of these properties.

The historic cost of investment properties at the balance sheet date was £6,460,178 (2018 - £6,460,178).

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

34,342

15,638

Other debtors

3,648,763

4,488,568

Directors' current accounts

15,269

478

Corporation Tax

20,471

-

Prepayments and accrued income

13,376

15,069

3,732,221

4,519,753

9.	CURRENT ASSET INVESTMENTS

2019

2018

£

£

Listed investments

332,199

199,193

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts

454,089

566,088

Trade creditors

15,924

4,718

Amounts owed to group undertakings

769,564

1,634,594

Corporation tax

-

69,464

Social security and other taxes

4,307

4,332

Value added tax

2,745

2,889

Other creditors

34,693

39,897

Tenants' deposits

57,099

49,568

Accrued expenses

105,175

92,873

1,443,596

2,464,423

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Bank loans - 2-5 years

3,698,222

1,698,263

Bank loan more than 5 years

850,840

3,252,620

4,549,062

4,950,883

Amounts falling due in more than five years:

Repayable by instalments

Bank loan more than 5 years

850,840

3,252,620

Bank loans are secured by standard security over the investment properties to which the loans relate.

12.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Bank loans

5,003,151

-

Bank loans are secured by a fixed and floating charge over the assets of the company.

13.	PROVISIONS FOR LIABILITIES

2019

2018

£

£

Deferred tax

1,496,003

1,336,958

Deferred

Deferred

tax

Tax

£

£

Balance at 1 January 2019

1,336,958

1,491,781

Charge/(credit) to Profit and loss during year

159,045

(154,823

)

Balance at 31 December 2019

1,496,003

1,336,958

14.

RESERVES

Fair Value Reserve

£

At 1 January 2019

6,904,866

Transfer of unrealised gains in year

-

Correct prior years deferred tax transfer between reserves

460,217

Transfer of movement of deferred tax on unrealised gains

(159,045

)

At 31 December 2019

7,206,038

The fair value reserve represents unrealised gains net of deferred tax.

15.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

At the year end a loan of £250,000 was written off from Gaulds Limited.

Included in other debtors at 31 December 2019 are amounts owed from related companies Gaulds Ltd of £1,566,902 and Gaulds of Glasgow SSAS of £23,317.

The companies are related through common control.

S T Gauld (Director)

At the balance sheet date the balance owed by the director was £15,269 (2018 - £478)

16.	ULTIMATE CONTROLLING PARTY

The controlling party is Gauld Group Limited.

The ultimate controlling party is Stanley Thomson Gauld.

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Gauld Properties Limited for the year ended 31 December 2019 on pages to from the company's accounting records and from information and explanations you have given us.

As a practising member firm of ICAS, we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/accountspreparationguidance.

This report is made solely to the Board of Directors of Gauld Properties Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Gauld Properties Limited and state those matters that we have agreed to state to the Board of Directors of Gauld Properties Limited, as a body, in this report in accordance with the requirements of ICAS as detailed at http://www.icas.com/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 Gauld Properties Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Gauld Properties Limited. You consider that Gauld Properties 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 financial statements of Gauld Properties 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 financial statements.

Milne Craig

Chartered Accountants

Abercorn House

79 Renfrew Road

Paisley

Renfrewshire

PA3 4DA

24 June 2020