STIRLING ENTERPRISE PARK LIMITED - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC085314 (Scotland)

Financial Statements for the Year Ended 31 March 2020

for

STIRLING ENTERPRISE PARK LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

B H Azam

Ms F E MacDiarmid

S A Burgess

D W Beggs

Mrs M A Brisley

R G Houston

REGISTERED OFFICE:

John Player Building

Stirling

FK8 7RP

REGISTERED NUMBER:

SC085314 (Scotland)

AUDITORS:

Rennie Smith & Co

Statutory Auditors

Chartered Accountants

64 Murray Place

Stirling

FK8 2BX

FIXED ASSETS

Tangible assets

4

2,929,899

2,867,684

Investments

5

5,001

5,001

2,934,900

2,872,685

CURRENT ASSETS

Debtors

6

144,128

166,322

Cash at bank and in hand

950,456

816,003

1,094,584

982,325

CREDITORS

Amounts falling due within one year

7

639,665

435,129

NET CURRENT ASSETS

454,919

547,196

TOTAL ASSETS LESS CURRENT LIABILITIES

3,389,819

3,419,881

CREDITORS

Amounts falling due after more than one year

8

(111,429

)

(109,520

)

PROVISIONS FOR LIABILITIES

(27,187

)

(23,629

)

PENSION LIABILITY

(18,301

)

(19,000

)

NET ASSETS

3,232,902

3,267,732

CAPITAL AND RESERVES

Called up share capital

101,310

101,310

Non-distributable reserve

9

1,114,172

1,114,172

Retained earnings

9

2,017,420

2,052,250

3,232,902

3,267,732

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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 6 October 2020 and were signed on its behalf by:

D W Beggs - Director

Mrs M A Brisley - Director

1.	STATUTORY INFORMATION

STIRLING ENTERPRISE PARK LIMITED is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The company's functional and presentational currency is GBP.

The presentation of financial statements in compliance with FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied

Investment in subsidiary undertakings and associates

Investment in subsidiary undertakings and associates are held at cost less impairment.

Revenue

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from investment properties comprise rental income and service charges. This income is recognized in the Statement of comprehensive income on a straight line basis over the term of the lease.

Tangible fixed assets

Tangible fixed assets,other than investment properties are stated at historical cost less accumulated depreciation.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when the cost is incurred. If the replacement part is expected to provide incremental future benefit to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Statement of comprehensive income during the period in which they are incurred.

Depreciation is provided on the following basis

Motor vehicles -20% on reducing balance

Fixtures and fittings - 20% on reducing balance

Computer equipment -25% on reducing balance

The assets' residual values, useful lives and depreciation method are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in the Statement of comprehensive income.

Government grants

Grants are accounted for under the accruals model as permitted by FRS102. Grants relating to expenditure on tangible assets are credited to the Statement of Comprehensive Income at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Financial instruments

The company only enters into basic financial transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

Current tax

The tax expense for the year comprises current and deferred tax. Tax is recognized in the Statement of comprehensive income, except that a charge attributable to an item of income and expense recognized as other comprehensive income or to an item recognized directly in equity is also recognized in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or subsequently enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax

Deferred tax is recognized in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognized in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognized only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Debtors

Short term debtors are measured at transaction price. Loans receivable are measured initially at fair value, net of transaction cost, and are measured subsequently at amortized cost using the effective interest method , less any impairment.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortized cost using the effective interest rate method.

Pension costs and other post-retirement benefits

During the year under review the company operated a defined contributions pension scheme, to provide employee retirement benefits. However, in the previous year two types of benefit plans were in operation to provide for employee retirement benefits.

Defined Contributions pension scheme

Contributions payable to the company's defined contributions pension scheme are charged to the profit and loss account in the period to which they relate.

Defined benefit pension plan

In the previous year a defined benefits plan was operated for certain employees but the company ceased participation in the fund on 31 December 2018. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan..

The liability recognized in the balance sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the balance sheet date less the fair value of the plan assets at the balance sheet date out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments(discount Rate).

The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the company's policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on the plan assets, less amounts included in net interest, are disclosed as ''Remeasurement of net defined benefit liability''.

The cost of the defined benefit plan, recognized in the Statement of comprehensive income as employee costs comprise

a) the increase in net pension benefit liability arising from employee service during the period and

b) the cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discounted rate to the net balance of the defined benefit obligation and the fair value of the plan assets. The cost is recognized in the Statement of comprehensive income as a ''finance expense''

With effect from 1st January 2019 the company operated a defined contributions pension scheme as described above.

Operating leases : the company as lessor

Rental income from operating leases is credited to the Statement of comprehensive income on a straight line basis over the term of the relevant lease.

Operating leases : the company as lessee

Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight line basis over the lease term.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that effect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from these estimates. The following judgements and estimates have had the most significant effects on the amounts recognized in the financial statements.

Investment property valuation

The company's investment property is revalued annually by the directors. The valuation is subjective to, amongst other factors, the nature of the property, its location and the expected future rentals. As a result,the valuation of the investment property incorporated into the financial statements is subject to a degree of uncertainty and is made on the basis of assumptions which may prove to be inaccurate, particularly in periods of volatility or low transaction flow in the property market. If any of the assumptions used by the directors prove to be incorrect this could result in the valuation of the company's investment property differing from the valuation incorporated into the financial statements and the difference could have a material effect on the financial statements.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 26 (2019 - 24 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

Motor

Computer

property

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 April 2019

2,741,609

269,591

15,747

30,124

3,057,071

Additions

-

84,672

-

5,588

90,260

Disposals

-

(758

)

-

-

(758

)

At 31 March 2020

2,741,609

353,505

15,747

35,712

3,146,573

DEPRECIATION

At 1 April 2019

-

162,210

10,155

17,022

189,387

Charge for year

-

22,904

1,118

3,765

27,787

Eliminated on disposal

-

(500

)

-

-

(500

)

At 31 March 2020

-

184,614

11,273

20,787

216,674

NET BOOK VALUE

At 31 March 2020

2,741,609

168,891

4,474

14,925

2,929,899

At 31 March 2019

2,741,609

107,381

5,592

13,102

2,867,684

The carrying amount of land and buildings comprises:

2020

2019

£

£

Investment properties at fair value

2,691,809

2,691,809

Fixed assets

49,800

49,800

2,741,609

2,741,609

========

========

Basis of investment property valuation

The investment property was valued by an independent valuer with a recognized and relevant professional qualification, Graham & Sibbald on the basis of open market value in accordance with RICS Valuation Professional Standards 2014 and International Valuation Standards at 17 October 2016. The directors consider that the valuation at this date closely approximates that of the value at 31 March 2020.

5.	FIXED ASSET INVESTMENTS

Shares in

Interest

group

in

undertakings

associate

Totals

£

£

£

COST

At 1 April 2019

and 31 March 2020

1

5,000

5,001

NET BOOK VALUE

At 31 March 2020

1

5,000

5,001

At 31 March 2019

1

5,000

5,001

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

Equity Support Limited

Registered office: Scotland

Nature of business: Business Support Services

%

Class of shares:

holding

Ordinary

100.00

2020

2019

£

£

Aggregate capital and reserves

1

1

Associated company

Stirling Business Centre Limited

Registered office: Scotland

Nature of business: Business Centre

%

Class of shares:

holding

Ordinary shares

50.00

2020

2019

£

£

Aggregate capital and reserves

260,089

238,742

Profit for the year

21,347

26,879

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

117,087

97,389

Amounts owed by group undertakings

3,162

285

Other debtors

23,879

68,648

144,128

166,322

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

230,950

159,283

Taxation and social security

54,539

33,138

Other creditors

354,176

242,708

639,665

435,129

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Other creditors

111,429

109,520

9.

RESERVES

Retained

Non-distributable

earnings

reserve

Totals

£

£

£

At 1 April 2019

2,052,250

1,114,172

3,166,422

Deficit for the year

(34,830

)

(34,830

)

At 31 March 2020

2,017,420

1,114,172

3,131,592

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Derek J Smith (Senior Statutory Auditor)

for and on behalf of Rennie Smith & Co

11.	PENSION COMMITMENT

In the previous year the company participated in the Falkirk Council Pension Fund (''The Fund''), a multi-employer defined benefits pension scheme, which was funded. The Company ceased to participate in the Fund on 31 December 2018 and Falkirk Council agreed to take on the Employer's funded pension obligations within the fund from that date.l

The pension cost and provision for the year ended 31 March 2019 were based on the advice of a professionally qualified actuary. The most recent formal valuation was 31 December 2018. Details of the company's pension scheme liability are included below based on information information provided by an independent actuary.

Changes in the present value of the defined benefits obligations are analysed as follows:

2020

2019

£

£

At the beginning of the year

19,000

3,948,000

Current service cost

-

117,000

Past service cost

-

75,000

Interest cost

-

81,000

Actuarial losses/(gains)

-

(150,000

)

Contributions

-

21,000

Benefits paid

(699

)

(65,000

)

Effect of settlement

-

(4,008,000

)

-----------------

-----------------

At the end of the year

18,301

19,000

Changes in fair value of plan assets are analysed as follows

2020

2019

£

£

At the beginning of the year

-

3,552,000

Interest income

-

72,000

Return on scheme assets less interest income

-

(5,000

)

Contributions

-

95,000

Benefits paid

(699

)

(65,000

)

Effect of settlement

-

(3,649,000

)

At the end of the year

(699

)

-

========

========

12.	PENSION COMMITMENTS CONTINUED

2020

2019

£

£

The net defined pension scheme liability is as follows

Fair value of asset plan

-

-

Present value of plan liabilities

(18,301

)

(19,000

)

------------

-----------

Net pension scheme liability

(18,301

)

(19,000

)

======

======

.

The amounts recognized in Statement of comprehensive income as follows

2020

2019

£

£

Current service cost

-

(117,000

)

Net interest cost

-

(9,000

)

Past service cost

-

(75,000

)

Effect of settlement

-

359,000

------------

------------

Total

-

158,000

Taken to other comprehensive income

Actuarial (gains)/losses

-

(150,000

)

Return on scheme assets less interest income

-

5,000

Total measured gains/(losses) recognized on deferred benefit

-----------

-----------

pension scheme

-

145,000

======

======

Principal actuarial assumptions at the Balance sheet date (expressed as weights and averages

2020

2019

Discount rate

-

2.9%

Future salary increases

-

2.9%

Future pension increases

-

2.4%

The mortality rate assumptions imply the following expectation of years of life from 65

Men currently aged 65

-

21.2

Women currently aged 65

-

23.7

Men currently aged 45

-

22.7

Women currently aged 45

-

25.5

13.	COMMITMENTS UNDER OPERATING LEASES

The company as a lessee has no future operating lease commitments.

The company as a lessor is entitled to future operating lease income of £448,034 (2019 - £426,748).

14.	CONTINGENT LIABILITIES

Stirling Enterprise Park Limited and Stirling Council have entered into a subscription agreement whereby those parties would undertake to subscribe for a further 25,000 shares in Stirling Business Centre Limited if required to do so by that company.

15.	RELATED PARTY DISCLOSURES

The company has taken the exemption in section 33.1A of FRS102 not to disclose inter group transactions. Amounts owed by group undertaking is disclosed in note 7. The amount is repayable on demand and no interest is charged.

Stirling Enterprise Park Limited act as managing agents on behalf of Stirling Business Centre Limited in respect of properties sub-let to tenants by that company. The managing agents fees were £36,000 (2019 - £36,833). Contribution to staff costs were £41,205 (2019 - £40,627)

During the year the company received income of £Nil (2019 - £19,325 in respect of services provided to owners holding a participating interest in the company.

The company paid £19,731 (2019 - £42,223) to a company owned by a director for company secretarial services and other services provided during the year. The balance due by Stirling Enterprise Park Limited to the company at the year end was £Nil (2019 - £3,696).

16.	CONTROLLING PARTY

Stirling Council is the ultimate holding company. The articles of association preclude any shareholder from receiving dividends or having any rights over the assets of the company in the event of a winding up.