Company No: SC400709 (Scotland)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	30.09.2022		30.09.2021
		£		£
Fixed assets
Tangible assets	3	4,405,116		1,531,976
Investments	4	100		100
		4,405,216		1,532,076
Current assets
Debtors	5	8,016		8,016
Cash at bank and in hand	6	362,703		12,477
		370,719		20,493
Creditors: amounts falling due within one year	7	( 483,915)		( 770,966)
Net current liabilities		(113,196)		(750,473)
Total assets less current liabilities		4,292,020		781,603
Creditors: amounts falling due after more than one year	8	( 1,892,716)		( 960,300)
Provision for liabilities	9, 10	( 590,000)		0
Net assets/(liabilities)		1,809,304		( 178,697)
Capital and reserves
Called-up share capital	11	1		1
Revaluation reserve		1,800,633		0
Profit and loss account		8,670		( 178,698 )
Total shareholder's funds/(deficit)		1,809,304		( 178,697)

For the financial year ending 30 September 2022 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

• The member has not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The director acknowledges 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 Errol Ground Ltd (registered number: SC400709) were approved and authorised for issue by the Director on 29 June 2023. They were signed on its behalf by:

Roderick Michael Sim 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 period, unless otherwise stated.

General information and basis of accounting

Errol Ground 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 Silverwood, Inchcoonans, Errol, PH2 7RB, United Kingdom.

The financial statements have been prepared under the historical cost convention, 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

The director has assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. In coming to this conclusion the director has considered the cashflow of the group for twelve months after the date of approval of the financial statements and confirms that, together with his continued support of the company, applying the going concern basis is appropriate. The director has also confirmed that loan facilities from himself and connected companies under his control will continue to be available for at lease twelve months from the date of approval of the financial statements.

Group accounts exemption

Group accounts exemption s399
The Company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the Company as an individual entity and not about its group.

Reporting period length

The financial statements cover the year to 30 September 2022. The comparative financial statements cover the 13 month period to 30 September 2021. As such the two periods are not entirely comparable.

Change in accounting policies

In the current reporting period the accounting policy relating to recognition of land and buildings held under property plant and equipment has been changed. In the previous period land and buildings were measured under the cost model, a revaluation has been undertaken by a third party on 24 July 2022 and an adjustment applied in the current year to measure under the revaluation model.

Turnover

Income represents amounts receivable for the letting and operating of real estate net of VAT and trade discounts.

Revenue is recognised on an accruals basis.

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings	0 - 25 years straight line
Plant and machinery	20 % reducing balance
Vehicles	25 % reducing balance
Fixtures and fittings	10 years straight line
Computer equipment	3 years straight line
Other property, plant and equipment	10 - 20 years straight line

Assets in the course of construction are not depreciated.

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Leases

The Company as lessee
Assets held under hire purchase contracts, 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.

The Company as lessor
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.

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 the Profit and Loss Account as described below.

Non-financial assets
At each balance sheet date, the company reviews its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include deposits held at call with banks.

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.

Basic financial assets
Basic financial assets, which include debtors and bank balances, are measured at transaction price including transaction costs.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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.

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.

Government grants

Government grants are recognised based on the performance model and are measured at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received.

A grant that specifies performance conditions is recognised in income only when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the grant proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

2. Employees

	Year ended 30.09.2022		Period from 01.09.2020 to 30.09.2021
	Number		Number
Monthly average number of persons employed by the Company during the year, including the director	1		1

3. Tangible assets

	Land and buildings		Plant and machinery		Vehicles		Fixtures and fittings		Computer equipment		Other property, plant and equipment		Total
	£		£		£		£		£		£		£
Cost
At 01 October 2021	360,360		24,972		0		104,577		1,704		1,255,143		1,746,756
Additions	278,694		20,461		3,700		33,303		299		225,322		561,779
Revaluations	2,362,087		0		0		0		0		0		2,362,087
Transfers	212,158		0		0		0		0		( 212,158)		0
At 30 September 2022	3,213,299		45,433		3,700		137,880		2,003		1,268,307		4,670,622
Accumulated depreciation
At 01 October 2021	0		11,605		0		27,582		1,163		174,430		214,780
Charge for the financial year	11,444		4,142		0		11,192		344		52,150		79,272
Adjustments on revaluations	( 28,546)		0		0		0		0		0		( 28,546)
Transfers	17,102		0		0		0		0		( 17,102)		0
At 30 September 2022	0		15,747		0		38,774		1,507		209,478		265,506
Net book value
At 30 September 2022	3,213,299		29,686		3,700		99,106		496		1,058,829		4,405,116
At 30 September 2021	360,360		13,367		0		76,995		541		1,080,713		1,531,976

Revaluation of tangible assets

Freehold land and buildings were professionally valued by Avison Young, an independent valuer, to fair value at 24 July 2022, with subsequent additions at cost. Freehold land and buildings have been pledged to secure borrowings of the Company. The Company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

	30.09.2022		30.09.2021
	£		£
Historical cost	778,271		360,360
Accumulated depreciation	(28,546)		0
Carrying value	749,725		360,360

4. Fixed asset investments

	30.09.2022		30.09.2021
	£		£
Subsidiary undertakings	100		100

Investments in subsidiaries

	30.09.2022
	£
Cost
At 01 October 2021	100
At 30 September 2022	100
Carrying value at 30 September 2022	100
Carrying value at 30 September 2021	100

5. Debtors

	30.09.2022		30.09.2021
	£		£
Trade debtors	8,016		8,016

6. Cash and cash equivalents

	30.09.2022		30.09.2021
	£		£
Cash at bank and in hand	362,703		12,477

7. Creditors: amounts falling due within one year

	30.09.2022		30.09.2021
	£		£
Bank loans (secured £ 29,310)	84,332		202,167
Trade creditors	102,407		14,224
Amounts owed to own subsidiaries (note 12)	68,907		302,529
Amounts owed to related parties (note 12)	15,451		34,087
Other taxation and social security	11,360		37,067
Obligations under finance leases and hire purchase contracts (secured)	85,788		78,772
Other creditors	115,670		102,120
	483,915		770,966

Bank loans totalling £29,310 (2021 - £76,553) are secured under fixed charges over Errol Brick Works, Errol and the subjects lying on 3.4 hectare area to the North of the Inchcoonans to Errol road, along with a floating charge over the assets and undertakings of the company.

Obligations under hire purchase contracts are secured over the related assets and include amounts totalling £44,192 (2021 - £38,785) which are covered by a government backed guarantee under the Coronavirus Business Interruption Loan Scheme.

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

	30.09.2022		30.09.2021
	£		£
Bank loans (secured)	1,805,931		788,142
Obligations under finance leases and hire purchase contracts (secured)	86,785		172,158
	1,892,716		960,300

Bank loans are secured under a fixed charges over Errol Brick Works, Errol and the subjects lying on 3.4 hectare area to the North of the Inchcoonans to Errol road, along with a floating charge over the assets and undertakings of the company.

Obligations under hire purchase contracts are secured over the related assets and include amounts totalling £64,360 (2021 - £100,008) which are covered by a government backed guarantee under the Coronavirus Business Interruption Loan Scheme.

Amounts repayable after more than 5 years are included in creditors falling due over one year:

	30.09.2022		30.09.2021
	£		£
Bank loans	1,665,410		0

9. Provision for liabilities

	30.09.2022		30.09.2021
	£		£
Deferred tax	590,000		0

10. Deferred tax

	30.09.2022		30.09.2021
	£		£
At the beginning of financial year/period	0		0
Charged to the Statement of Comprehensive Income	( 590,000)		0
At the end of financial year/period	( 590,000)		0

11. Called-up share capital

	30.09.2022		30.09.2021
	£		£
Allotted, called-up and fully-paid
100 Ordinary shares of £ 0.01 each	1		1

12. Related party transactions

Transactions with group companies

Amounts owed to own subsidiaries

	30.09.2022		30.09.2021
	£		£
Loan	68,907		302,529

Group company loans are unsecured, interest free and have no fixed terms of repayment.

Transactions with related parties or connected persons

Amounts owed to related parties

	30.09.2022		30.09.2021
	£		£
Loan	15,451		34,087

Connected company loans are unsecured, interest free and have no fixed terms of repayment.

Transactions with the entity’s director (or members of its governing body)

Amounts owed to director

	30.09.2022		30.09.2021
	£		£
Loan	83		1,920

The loan is unsecured, interest free and has no fixed terms of repayment.