Company No: SC480051 (Scotland)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2021		2020
		£		£
Current assets
Stocks	3	1,187,854		1,126,322
Debtors	4	28,067		175,701
Cash at bank and in hand		248		6,647
		1,216,169		1,308,670
Creditors
Amounts falling due within one year	5	( 943,916)		( 934,045)
Net current assets		272,253		374,625
Total assets less current liabilities		272,253		374,625
Creditors
Amounts falling due after more than one year	6	( 2,333,293)		( 1,922,342)
Net liabilities		( 2,061,040)		( 1,547,717)
Capital and reserves
Called-up share capital	7	1		1
Profit and loss account		( 2,061,041 )		( 1,547,718 )
Total shareholder's deficit		( 2,061,040)		( 1,547,717)

For the financial year ending 30 June 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 financial statements for the financial year in accordance with section 476;
• 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; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of SL Scotland Ltd (registered number: SC480051) were approved and authorised for issue by the Director on 28 June 2022. They were signed on its behalf by:

Mr P McGinlay Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

SL Scotland Ltd (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in Scotland. The address of the Company's registered office is 58 Waterloo Street, Glasgow, G2 7DA, Scotland, United Kingdom.

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 items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.

Going concern

As at the balance sheet date, the company had net liabilities of £1,551,267 (2020: £1,547,717). Included in other creditors are balances owed to related parties. These related parties will not seek repayment of these balances until the company has sufficient resources to do so. The directors therefore have prepared the financial statements on the going concern basis.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either 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 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
Basic financial liabilities, including creditors, 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

2. Employees

	2021		2020
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	1		1

3. Stocks

	2021		2020
	£		£
Work in progress	1,187,854		1,126,322

Work in progress comprises site development costs for Exchequer House, Aberdeen. These assets are pledged as security for a bank loan held by related party Swan Real Estate PLC totalling £835,684. (2020: £826,000)

4. Debtors

	2021		2020
	£		£
Other debtors	28,067		175,701

5. Creditors: amounts falling due within one year

	2021		2020
	£		£
Amounts owed to related parties (note 8)	940,366		934,045
Other creditors	3,550		0
	943,916		934,045

6. Creditors: amounts falling due after more than one year

	2021		2020
	£		£
Amounts owed to related parties (note 8)	1,450,209		1,397,926
Other creditors	883,084		524,416
	2,333,293		1,922,342

Included in other creditors at 30 June 2021 are bank loans of £883,084 (2020: £524,416). The assets pledged as security for this liability are work in progress costs for Exchequer House, Aberdeen site totalling £1,187,534 (2020: £1,126,322).

7. Called-up share capital

	2021		2020
	£		£
Allotted, called-up and fully-paid
1 Ordinary Shares share of £ 1.00	1		1

8. Related party transactions

Transactions with related parties or connected persons

Amounts owed to related parties

	2021		2020
	£		£
Amounts owed to related parties	2,390,575		2,331,971