Barochan Heathfield LLP - LLP accounts 20.1

REGISTERED NUMBER: SO302970 (Scotland)

REPORT OF THE MEMBERS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

FOR

BAROCHAN HEATHFIELD LLP

Page

General Information

1

Report of the Members

2

Income Statement

3

Balance Sheet

4

Notes to the Financial Statements

6

DESIGNATED MEMBERS:

R & R Investments Limited

A Russell

C Russell

Mrs M E Colvin

REGISTERED OFFICE:

22 Unit 4, Churchill Tower

South Harbour Street

Ayr

KA7 1JT

REGISTERED NUMBER:

SO302970 (Scotland)

ACCOUNTANTS:

Bannerman Johnstone Maclay

213 St Vincent Street

Glasgow

G2 5QY

BANKERS:

Bank of Scotland

235 Sauchiehall Street

Glasgow

G2 3EY

SOLICITORS:

MacRoberts

Capella

60 York Street

Glasgow

G2 8JX

The members present their report with the financial statements of the LLP for the year ended 30 April 2021.

PRINCIPAL ACTIVITY

The principal activity of the LLP in the year under review was that of operating as a property investment business.

DESIGNATED MEMBERS

The designated members during the year under review were:

R & R Investments Limited

A Russell

C Russell

Mrs M E Colvin

RESULTS FOR THE YEAR AND ALLOCATION TO MEMBERS

The loss for the year before members' remuneration and profit shares was £129,613 (2020 - £675,440 profit).

MEMBERS' INTERESTS

Members are permitted to make drawings in anticipation of profits which will be allocated to them. The amount of such drawings is set at the beginning of each financial year, taking into account the anticipated cash needs of the LLP.

New members are required to subscribe a minimum level of capital and in subsequent years members are invited to subscribe for further capital, the amounts of which are determined by the performance and seniority of those members. On retirement, capital is repaid to members.

ON BEHALF OF THE MEMBERS:

R & R Investments Limited - Designated member

4 November 2021

TURNOVER

843,478

870,684

Administrative expenses

159,716

174,776

OPERATING PROFIT

4

683,762

695,908

Loss on disposal of investment

property

5

802,289

-

(118,527

)

695,908

Interest payable and similar expenses

11,086

20,468

(LOSS)/PROFIT FOR THE FINANCIAL YEAR BEFORE MEMBERS' REMUNERATION AND PROFIT SHARES

(129,613

)

675,440

(LOSS)/PROFIT FOR THE FINANCIAL YEAR BEFORE MEMBERS' REMUNERATION AND PROFIT SHARES

(129,613

)

675,440

Members' remuneration charged as an expense

6

129,613

(675,440

)

PROFIT FOR THE FINANCIAL YEAR AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS

-

-

FIXED ASSETS

Tangible assets

7

1,375

1,875

Investment property

8

16,162,306

18,663,349

16,163,681

18,665,224

CURRENT ASSETS

Debtors

9

884,467

645,414

Cash at bank

1,209,457

102,761

2,093,924

748,175

CREDITORS

Amounts falling due within one year

10

5,077,925

328,913

NET CURRENT (LIABILITIES)/ASSETS

(2,984,001

)

419,262

TOTAL ASSETS LESS CURRENT LIABILITIES

13,179,680

19,084,486

CREDITORS

Amounts falling due after more than one year

11

362,248

6,137,439

NET ASSETS ATTRIBUTABLE TO MEMBERS

12,817,432

12,947,047

LOANS AND OTHER DEBTS DUE TO MEMBERS

3,748,985

3,442,991

MEMBERS' OTHER INTERESTS

Capital accounts

7,563,546

7,563,546

Fair value reserve

12

1,504,901

1,940,510

12,817,432

12,947,047

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

3,748,985

3,442,991

Members' other interests

9,068,447

9,504,056

Amounts due from members

9

(333,995

)

(437,409

)

12,483,437

12,509,638

The LLP is entitled to exemption from audit under Section 477 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 for the year ended 30 April 2021.

The members acknowledge their responsibilities for:

(a)	ensuring that the LLP keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the LLP 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 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 relating to financial statements, so far as applicable to the LLP.

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

The financial statements were approved by the members of the LLP and authorised for issue on 4 November 2021 and were signed by:

R & R Investments Limited - Designated member

1.	STATUTORY INFORMATION

Barochan Heathfield LLP is registered in Scotland. The LLP'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 requirements of the Statement of Recommended Practice, Accounting by Limited Liability Partnerships. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

The turnover shown in the profit and loss account represents rental income earned during the year, exclusive of Value Added Tax.

Tangible fixed assets

All fixed assets are initially recorded at cost, with the exception of the assets introduced as capital by members which were recorded at valuation at the date of transfer.

Investment property

Investment properties are shown at their open market value. The surplus or deficit arising from the annual revaluation is transferred to the investment fair value reserve unless a deficit, or its reversal, on an individual investment property is expected to be permanent, in which case it is recognised in the profit and loss account for the period.

This is in accordance with the FRS 102 Section 1A (effective January 2016) which, unlike the Companies Act 2006, does not require depreciation of investment properties. Investment properties are held for their investment potential and not by the LLP and so their current value is of prime importance. The departure from the provisions of the Act is required in order to give a true and fair view. The members are unable to quantify the effect of this departure.

Financial instruments

The LLP 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 certain 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.

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 certain creditors and loans from related undertakings, 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.

3.	EMPLOYEE INFORMATION

The average number of employees during the year was NIL (2020 - NIL).

4.	OPERATING PROFIT

The operating profit is stated after charging:

2021

2020

£

£

Depreciation - owned assets

500

125

5.	EXCEPTIONAL ITEMS

2021

2020

£

£

Loss on disposal of investment

property

(802,289

)

-

6.	INFORMATION IN RELATION TO MEMBERS

2021

2020

£

£

Members' remuneration charged as an expense

Partners' salaries

(129,613

)

675,440

7.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1 May 2020

and 30 April 2021

2,000

DEPRECIATION

At 1 May 2020

125

Charge for year

500

At 30 April 2021

625

NET BOOK VALUE

At 30 April 2021

1,375

At 30 April 2020

1,875

8.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 May 2020

18,663,349

Disposals

(2,501,043

)

At 30 April 2021

16,162,306

NET BOOK VALUE

At 30 April 2021

16,162,306

At 30 April 2020

18,663,349

If the investment properties had not been revalued, they would have been included at their historical costs of £14,657,405 (2020: £16,438,028). Note this excludes property under construction which is valued at cost.

The properties were last valued on 30 April 2015 by Shepherd Chartered Surveyors under the standards dictated by The Royal Institution of Chartered Surveyors. The basis of valuation used for all valuations is open market value.

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

58,472

68,537

Amounts due from related undertakings

492,000

135,700

Amounts due from members

333,995

441,177

884,467

645,414

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

114,972

99,631

Trade creditors

5,136

6,361

Other creditors

4,957,817

222,921

5,077,925

328,913

Included within bank loans falling due within one year is a bank loan facility for £105,805 (2020: £99,631). The bank loan is secured by a floating charge over all assets of Barochan Heathfield LLP plus a first standard security over subjects 5 Wallacetown Drive, Ayr.

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans

318,848

487,480

Amounts owed to group undertakings

-

5,606,559

Other creditors

43,400

43,400

362,248

6,137,439

Amounts falling due in more than five years:

Repayable by instalments

Bank loans

834

57,718

Included within bank loans falling due after more than one year is a bank loan facility for £278,015 (2020: £487,480). The bank loan is secured by a floating charge over all assets of Barochan Heathfield LLP plus a first standard security over subjects 5 Wallacetown Drive, Ayr.

12.

RESERVES

Fair

value

reserve

£

At 1 May 2020

1,940,510

Movement in reserves

(435,609

)

At 30 April 2021

1,504,901

13.	RELATED PARTY DISCLOSURES

Heathfield Care and Residential Homes Limited is a related party of Barochan Heathfield LLP. A property is leased by Barochan Heathfield LLP to Heathfield Care and Residential Homes Limited. This is provided on a rent free basis.