Ashleybank Investments Limited - Limited company accounts 20.1

ASHLEYBANK INVESTMENTS LIMITED

REPORT OF THE DIRECTORS AND

UNAUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2020

Page

Company Information

1

Report of the Directors

2

Consolidated Income Statement

3

Consolidated Balance Sheet

4

Company Balance Sheet

6

Notes to the Consolidated Financial Statements

8

DIRECTORS:

A A Stevenson

D D Stevenson

SECRETARY:

J Hilditch

REGISTERED OFFICE:

Ashley Bank House

Langholm

Dumfriesshire

DG13 0AN

REGISTERED NUMBER:

SC047360 (Scotland)

ACCOUNTANTS:

JRW

Chartered Accountants

19 Buccleuch Street

Hawick

Roxburghshire

TD9 0HL

The directors present their report with the financial statements of the company and the group for the year ended 31st December 2020.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st January 2020 to the date of this report.

A A Stevenson

D D Stevenson

INVESTMENT PROPERTY

FRS102 requires Investment Property to be stated at fair value. As a result of the severe impact of Covid-19 and the exceptional circumstances of the UK commercial property market, there continues to be material uncertainty relating to valuations of UK commercial property. As a result the directors have not had the company's properties revalued in these accounts and so the valuation requirements of section 16 of FRS102 have not been met.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

J Hilditch - Secretary

21st September 2021

TURNOVER

763,380

787,316

Cost of sales

20,252

14,322

GROSS PROFIT

743,128

772,994

Administrative expenses

959,695

537,483

(216,567

)

235,511

Other operating income

40,152

-

OPERATING (LOSS)/PROFIT

4

(176,415

)

235,511

Profit/(loss) on sale of Properties

5

-

321,204

(176,415

)

556,715

Income from fixed asset investments

538,315

569,620

Interest receivable and similar income

(130,765

)

(241,729

)

407,550

327,891

231,135

884,606

Realised and unrealised gain/

(loss) on revaluation of

investments

1,495,116

3,340,026

1,726,251

4,224,632

Interest payable and similar expenses

124

215

PROFIT BEFORE TAXATION

1,726,127

4,224,417

Tax on profit

6

110,425

684,935

PROFIT FOR THE FINANCIAL YEAR

1,615,702

3,539,482

Profit attributable to:

Owners of the parent

1,615,702

3,539,482

FIXED ASSETS

Tangible assets

8

3,326,348

3,346,647

Investments

9

33,571,142

33,053,628

36,897,490

36,400,275

CURRENT ASSETS

Debtors

10

506,042

63,369

Cash at bank and in hand

25,434,119

25,215,718

25,940,161

25,279,087

CREDITORS

Amounts falling due within one year

11

190,161

318,574

NET CURRENT ASSETS

25,750,000

24,960,513

TOTAL ASSETS LESS CURRENT LIABILITIES

62,647,490

61,360,788

PROVISIONS FOR LIABILITIES

1,600,000

1,500,000

NET ASSETS

61,047,490

59,860,788

CAPITAL AND RESERVES

Called up share capital

16,500

16,500

Capital redemption reserve

7,523

7,523

Retained earnings

61,023,467

59,836,765

SHAREHOLDERS' FUNDS

61,047,490

59,860,788

The company and the group are entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2020.

The members have not required the company and the group to obtain an audit of its financial statements for the year ended 31st December 2020 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the group 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 and the group as at the end of each financial year and of the group's 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 and the group.

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

The financial statements were approved by the Board of Directors and authorised for issue on 21st September 2021 and were signed on its behalf by:

D D Stevenson - Director

FIXED ASSETS

Tangible assets

8

430,725

436,804

Investments

9

34,356,799

33,839,285

34,787,524

34,276,089

CURRENT ASSETS

Debtors

10

312,949

567,062

Cash at bank

25,111,269

24,203,021

25,424,218

24,770,083

CREDITORS

Amounts falling due within one year

11

602,940

613,965

NET CURRENT ASSETS

24,821,278

24,156,118

TOTAL ASSETS LESS CURRENT LIABILITIES

59,608,802

58,432,207

PROVISIONS FOR LIABILITIES

1,600,000

1,500,000

NET ASSETS

58,008,802

56,932,207

CAPITAL AND RESERVES

Called up share capital

16,500

16,500

Capital redemption reserve

7,523

7,523

Retained earnings

57,984,779

56,908,184

SHAREHOLDERS' FUNDS

58,008,802

56,932,207

Company's profit for the financial year

1,505,595

2,994,458

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 2020 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 in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 21st September 2021 and were signed on its behalf by:

D D Stevenson - Director

1.	STATUTORY INFORMATION

Ashleybank Investments 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 General Information page.

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.

Turnover

The company provides management services as well as renting out commercial properties.

For management services, revenue is recognised in the accounting period in which the services are rendered when the outcome of the contract can be measured reliably. Rental income is recognised in the accounting period to which the rent relates.

For investment income, dividends from equities are accounted for on the ex-dividend date and all other investment income is credited in the period in which it is receivable.

Revenue is measured at the fair value of the transaction excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

FRS requires Investment Property to be stated at fair value. As explained in the report of the directors, due to Covid-19 this has not been possible therefore the Investment Property is stated at cost less depreciation.

Depreciation is provided at the annual rates below to write off the cost of each asset evenly over its estimated useful life. Depreciation is only provided on freehold buildings where the Directors consider that the remaining useful life is less than fifty years. Provision for depreciation on long leasehold properties with over fifty years to run and freehold buildings where the estimated life exceeds fifty years is not considered necessary as it is the Group's policy to maintain its properties in good condition which prolongs their useful life and any depreciation involved would not be material. Depreciation is however provided on modernisation costs which enhance their value for a finite period and the costs of repairs and maintenance are charged to profit and loss account in the year in which they are incurred.

Freehold Land and Buildings

- Nil

Leasehold Land and Buildings over 50 years

- 2% over last 50 years of lease

Modernisation Costs of Buildings

- 5% ot 12.5%

Equipment and Vehicles

- 25%, 20% or 12.5%

Financial assets

Basic financial assets, including trade and other debtors and bank balances, are initially recognised at transaction price.

At the end of each reporting period financial assets measured at cost are assessed for evidence of impairment. Any impairment loss is recognised in the Consolidated Income Statement.

Financial assets are derecognised when the contractual rights to the cash flows from the asset expire or are settled.

Financial liabilities

Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. These are classed as current liabilities if payment is due within one year or less. If not they are presented as non-current liabilities.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised 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 recognised 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 recognised 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.

Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date or if appropriate at the forward contract date. All differences are taken to the consolidated income statement.

Pension costs

The group operates defined contribution pension schemes. The costs of the defined contribution schemes are charged to the consolidated income statement in the period in which incurred.

Investments

Investments are shown at fair value. Any aggregate surplus or deficit arising from changes in fair value is transferred to the consolidated income statement.

Investments in subsidiary undertakings are recognised at cost.

Operating leases

Ground rents payable are charged to the consolidated income statement in the period to which they are attributable.

Going concern

The directors have considered the potential impact of the current Covid-19 pandemic on the business and are satisfied that the company has sufficient cash reserves to meet all financial obligations for the foreseeable future. The Accounts have therefore been prepared on the going concern basis.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 9 (2019 - 9 ) .

The average number of employees by undertakings that were proportionately consolidated during the year was 9 (2019 - 9 ) .

4.	OPERATING PROFIT

The operating profit is stated after charging:

2020

2019

£

£

Depreciation - owned assets

12,983

12,102

5.	EXCEPTIONAL ITEMS

2020

2019

£

£

Profit/(loss) on sale of Properties

-

321,204

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2020

2019

£

£

Current tax:

UK corporation tax

26,500

146,000

Under/(over) provision in prior year

(16,075

)

(61,065

)

Total current tax

10,425

84,935

Deferred tax

100,000

600,000

Tax on profit

110,425

684,935

7.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

8.	TANGIBLE FIXED ASSETS

Group

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1st January 2020

3,647,253

120,305

3,767,558

Additions

-

6,904

6,904

Disposals

(14,220

)

(12,094

)

(26,314

)

At 31st December 2020

3,633,033

115,115

3,748,148

DEPRECIATION

At 1st January 2020

343,678

77,233

420,911

Charge for year

-

12,983

12,983

Eliminated on disposal

-

(12,094

)

(12,094

)

At 31st December 2020

343,678

78,122

421,800

NET BOOK VALUE

At 31st December 2020

3,289,355

36,993

3,326,348

At 31st December 2019

3,303,575

43,072

3,346,647

Company

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1st January 2020

402,398

120,306

522,704

Additions

-

6,904

6,904

Disposals

-

(12,094

)

(12,094

)

At 31st December 2020

402,398

115,116

517,514

DEPRECIATION

At 1st January 2020

8,668

77,232

85,900

Charge for year

-

12,983

12,983

Eliminated on disposal

-

(12,094

)

(12,094

)

At 31st December 2020

8,668

78,121

86,789

NET BOOK VALUE

At 31st December 2020

393,730

36,995

430,725

At 31st December 2019

393,730

43,074

436,804

9.	FIXED ASSET INVESTMENTS

Group

Company

2020

2019

2020

2019

£

£

£

£

Other investments not loans

33,571,142

33,053,628

34,356,799

33,839,285

Additional information is as follows:

Group

Listed

Unlisted

investments

investments

Totals

£

£

£

COST OR VALUATION

At 1st January 2020

13,355,949

19,697,679

33,053,628

Additions

452,163

253,604

705,767

Disposals

(39,037

)

(1,644,332

)

(1,683,369

)

Revaluations

958,212

536,904

1,495,116

At 31st December 2020

14,727,287

18,843,855

33,571,142

NET BOOK VALUE

At 31st December 2020

14,727,287

18,843,855

33,571,142

At 31st December 2019

13,355,949

19,697,679

33,053,628

Cost or valuation at 31st December 2020 is represented by:

Listed

Unlisted

investments

investments

Totals

£

£

£

Valuation in 2020

14,727,287

18,843,855

33,571,142

Company

Listed

Unlisted

investments

investments

Totals

£

£

£

COST OR VALUATION

At 1st January 2020

13,355,949

19,697,679

33,053,628

Additions

452,163

253,604

705,767

Disposals

(39,037

)

(1,644,332

)

(1,683,369

)

Revaluations

958,212

536,904

1,495,116

At 31st December 2020

14,727,287

18,843,855

33,571,142

NET BOOK VALUE

At 31st December 2020

14,727,287

18,843,855

33,571,142

At 31st December 2019

13,355,949

19,697,679

33,053,628

Cost or valuation at 31st December 2020 is represented by:

Listed

Unlisted

investments

investments

Totals

£

£

£

Valuation in 2020

14,727,287

18,843,855

33,571,142

Investments (neither listed nor unlisted) were as follows:

2020

2019

£

£

Shares in subsidiary undertakings

785,657

785,657

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

Subsidiaries

Eskvale Properties Limited

Registered office:

Nature of business: Property rental

%

Class of shares:

holding

Ordinary

100.00

Eskland Limited

Registered office:

Nature of business: Property rental

%

Class of shares:

holding

Ordinary

100.00

ABI Ground Rents

Registered office:

Nature of business: Property rental

%

Class of shares:

holding

Ordinary

100.00

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2020

2019

2020

2019

£

£

£

£

Other debtors

506,042

63,369

312,949

567,062

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2020

2019

2020

2019

£

£

£

£

Trade creditors

2,378

6,412

-

-

Amounts owed to group undertakings

-

-

500,000

500,000

Taxation and social security

36,273

138,707

9,773

32,707

Other creditors

151,510

173,455

93,167

81,258

190,161

318,574

602,940

613,965

12.	OTHER FINANCIAL COMMITMENTS

At 31st December 2020, the company had commitments in respect of fixed asset investments amounting to £1,055,327 (2019, £1,231,226).

13.	RELATED PARTY DISCLOSURES

Acorn Consultants Limited was related to the company by virtue of a nucleus of common directors and shareholders. This company provides certain executive management services to Ashleybank Investments Limited. Amounts totalling £100,000 (2019, £100,000) was paid to the company in respect of such services.