Grange (Edinburgh) Heritable Investment Company Limited - Period Ending 2021-11-28

Grange (Edinburgh) Heritable Investment Company Limited

Contents

Company Information	1
Statement of Directors' Responsibilities	2
Accountants' Report	3
Balance Sheet	4
Notes to the Unaudited Financial Statements	5 to 9

Grange (Edinburgh) Heritable Investment Company Limited

Company Information

Directors

D O Douglas J S Miller

Registered office Registered number

48 College Way Gullane East Lothian EH31 2BX SC024186

Accountants

Brown, Scott & Main Chartered Accountants 91 West Savile Terrace Edinburgh Lothian EH9 3DP

Grange (Edinburgh) Heritable Investment Company Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

•	select suitable accounting policies and apply them consistently;

•	make judgements and accounting estimates that are reasonable and prudent;

•	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 2021

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 2021 as set out on pages 4 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

5 July 2022

Grange (Edinburgh) Heritable Investment Company Limited

(Registration number: SC024186)
Balance Sheet as at 28 November 2021

	Note	2021 £	2020 £
Fixed assets
Tangible assets	6	1	1
Investment property	7	4,150,000	3,650,000
		4,150,001	3,650,001
Current assets
Debtors	8	107,985	122,992
Cash at bank and in hand		192,835	102,934
		300,820	225,926
Creditors: Amounts falling due within one year	9	(745,503)	(719,607)
Net current liabilities		(444,683)	(493,681)
Total assets less current liabilities		3,705,318	3,156,320
Creditors: Amounts falling due after more than one year	9	(690,670)	(690,670)
Provisions for liabilities	10	(359,820)	(282,870)
Net assets		2,654,828	2,182,780
Capital and reserves
Called up share capital	11	2,000	2,000
Capital reserve		229,367	229,367
Non distributable reserve		2,485,320	2,062,270
Other reserves		(16,672)	(22,554)
Profit and loss account		(45,187)	(88,303)
Total equity		2,654,828	2,182,780

For the financial year ended 28 November 2021 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 5 July 2022 and signed on its behalf by:
 

......................................... J S Miller Director

Grange (Edinburgh) Heritable Investment Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 November 2021

1	General information

The company is a private company limited by share capital, incorporated in Scotland.

The address of its registered office is:
48 College Way
Gullane
East Lothian
EH31 2BX

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 smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

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 £728,446 (2020 £532,652) due to its parent company, Stewart's (Edinburgh) Holdings Limited, and £nil (2020 £170,964) 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 corporation 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.

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

Grange (Edinburgh) Heritable Investment Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 November 2021

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.

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 2 (2020 - 3).

4	Profit before tax

Arrived at after charging/(crediting)

	2021 £	2020 £
Management fees	48,000	48,000

Grange (Edinburgh) Heritable Investment Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 November 2021

5

Taxation

	2021		2020
	£		£
Current tax:
UK Corporation tax	11,493		10,705
Deferred tax	76,950		22,552
	88,443		33,257

6	Tangible assets

	Furniture, fittings and equipment  £	Total £
Cost
At 29 November 2020	118,804	118,804
At 28 November 2021	118,804	118,804
Depreciation
At 29 November 2020	118,803	118,803
At 28 November 2021	118,803	118,803
Carrying amount
At 28 November 2021	1	1
At 28 November 2020	1	1

7	Investment properties

At fair value	2021 £
At 29 November	3,650,000
Fair value adjustments	500,000
At 28 November	4,150,000

The investment properties which have capitalised costs totalling £1,319,907 (2020 £1,319,907) were valued by the directors on 28 November 2021 at £4,150,000 (2020 £3,650,000) at their fair value.

8

Debtors

	2021 £	2020 £
Prepayments	2,470	2,109
Other debtors	105,515	120,883
	107,985	122,992

Details of non-current trade and other debtors

£89,334 (2020 -£105,515) of the Other debtor balance is classified as non current. The total balance of £105,515 (2020 £120,883 ) is due from a former subsidiary

Grange (Edinburgh) Heritable Investment Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 November 2021

9

Creditors

Creditors: amounts falling due within one year

	Note	2021 £	2020 £
Due within one year
Amounts owed to group undertakings and undertakings in which the company has a participating interest		728,446	532,652
Taxation and social security		11,493	10,705
Accruals and deferred income		5,564	5,286
Loan from director		-	170,964
		745,503	719,607

Amounts owed to group undertakings are due to Stewart's (Edinburgh) Holdings Limited, are interest free and have no set repayment date.

Creditors: amounts falling due after more than one year

	Note	2021 £	2020 £
Due after one year
Loans and borrowings	12	690,670	690,670

10	Provision for liabilities

		2021		2020
		£		£
Deferred tax		359,820		282,870
				Deferred tax
Balance at	29 November 2020			282,870
Charge / (credit) to P & L account during the year				76,950
Balance at	28 November 2021			359,820

11	Share capital

Allotted, called up and fully paid shares

	2021		2020
	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 2021

12	Loans and borrowings

	2021 £	2020 £
Non-current loans and borrowings
Other borrowings	690,670	690,670

	2021		2020
	£		£
Loans repayable in one to two years	-		-
Loans repayable in more than five years	690,670		690,670
	690,670		690,670

Loans include six loans from Mortgage Trust Limited, each secured by a standard security over one of the company's investment properties. The directors have provided personal guarantees to the Mortgage Trust Limited in respect of these secured loans.