Panacea (Scotland) Limited - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: SC393404 (Scotland)

PANACEA (SCOTLAND) LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

Page

Company Information

1

Balance Sheet

2

to

3

Notes to the Financial Statements

4

to

10

DIRECTORS:

Kenneth Robert Sunter

Paul James Traynor

REGISTERED OFFICE:

1 Royal Crescent

Glasgow

G3 7SL

REGISTERED NUMBER:

SC393404 (Scotland)

FIXED ASSETS

Tangible assets

4

85

2,136

Investments

5

1

-

Investment property

6

4,335,727

3,930,380

4,335,813

3,932,516

CURRENT ASSETS

Stocks

7

3,945,666

5,491,524

Debtors

8

5,364,855

302,310

Cash at bank and in hand

185,911

494,257

9,496,432

6,288,091

CREDITORS

Amounts falling due within one year

9

2,317,692

586,909

NET CURRENT ASSETS

7,178,740

5,701,182

TOTAL ASSETS LESS CURRENT LIABILITIES

11,514,553

9,633,698

CREDITORS

Amounts falling due after more than one year

10

12,436,845

11,283,877

NET LIABILITIES

(922,292

)

(1,650,179

)

CAPITAL AND RESERVES

Called up share capital

100

100

Revaluation reserve

11

1,441,855

1,004,239

Retained earnings

(2,364,247

)

(2,654,518

)

SHAREHOLDERS' FUNDS

(922,292

)

(1,650,179

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2022 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 2 December 2022 and were signed on its behalf by:

Paul James Traynor - Director

Kenneth Robert Sunter - Director

1.	STATUTORY INFORMATION

Panacea (Scotland) Limited is a private company, limited by shares, registered in Scotland. The company’s registered number is SC393404 and registered office address is 1 Royal Crescent, Glasgow, Scotland, G3 7SL.

The nature of the company's operations and its principal activities are that of buying and selling of own real estate and other letting and operating of own or leased real estate.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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.

Inventories are assessed for evidence of obsolescence and a provision is made against any inventory unlikely to be sold, or where stock is sold post year end at a loss.

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. Consideration is given to the point at which the Company is entitled to receive the income, excluding discounts, 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

-

25% on cost

Motor vehicles

-

25% 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.

Subsequent to initial recognition

i. investment properties whose fair value can be measured reliably without undue 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 that 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 thereafter 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 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.

Leases

Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the profit and loss account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 (2021 - 2 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1 August 2021

779

7,995

4,457

13,231

Disposals

-

(7,995

)

-

(7,995

)

At 31 July 2022

779

-

4,457

5,236

DEPRECIATION

At 1 August 2021

504

6,392

4,199

11,095

Charge for year

195

1,602

253

2,050

Eliminated on disposal

-

(7,994

)

-

(7,994

)

At 31 July 2022

699

-

4,452

5,151

NET BOOK VALUE

At 31 July 2022

80

-

5

85

At 31 July 2021

275

1,603

258

2,136

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

Additions

1

At 31 July 2022

1

NET BOOK VALUE

At 31 July 2022

1

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 August 2021

3,930,380

Additions

167,102

Disposals

(153,353

)

Revaluations

391,598

At 31 July 2022

4,335,727

NET BOOK VALUE

At 31 July 2022

4,335,727

At 31 July 2021

3,930,380

Fair value at 31 July 2022 is represented by:

£

Valuation in 2018

259,030

Valuation in 2019

374,471

Valuation in 2020

416,756

Valuation in 2022

391,598

Cost

2,893,872

4,335,727

The directors have revalued the properties based on current market conditions.

7.

STOCKS

31/7/22

31/7/21

£

£

Work-in-progress

3,945,666

5,491,524

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/7/22

31/7/21

£

£

Amounts owed by group undertakings

1,101,337

-

Other debtors

56,000

56,000

Sundry debtors

-

217,740

Corporation tax

3,163

3,163

VAT

4,355

25,407

Accrued income

4,195,000

-

Prepayments

5,000

-

5,364,855

302,310

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/7/22

31/7/21

£

£

Bank loans and overdrafts

766,259

-

Trade creditors

360,763

241,126

Other creditors

99,500

-

Inter company loan account

752,158

-

Sundry creditors

7,515

7,515

Directors' current accounts

325,998

333,269

Accruals and deferred income

5,499

4,999

2,317,692

586,909

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31/7/22

31/7/21

£

£

Bank loans - 1-2 years

280,622

1,222,814

Debentures

5,207,839

4,186,509

Mortgages

6,948,384

5,874,554

12,436,845

11,283,877

11.

RESERVES

Revaluation

reserve

£

At 1 August 2021

1,004,239

Property revaluation reserve

437,616

At 31 July 2022

1,441,855

12.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

During the year the company benefitted from an interest free loan from the directors. The balance at 31st July 2022 was £325,998 (2021 - £333,269).

13.	RELATED PARTY DISCLOSURES

Included within creditors is a balance due to Sunter Investments Limited amounting to £752,158 (2021 - £217,740 debtor).

Included within debtors is a balance due from Panacea (Cairndhu) Limited amounting to £1,101,337 (2021 £0).

14.	ULTIMATE CONTROLLING PARTY

No director in isolation has overall control of the company as the two directors hold an equal shareholding.