The Flat Company Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: SC207631 (Scotland)

Unaudited Financial Statements

for the Year Ended 31 May 2023

for

The Flat Company Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

W J H Walters

D Zank

C Robertson

M Wilcken

C McBain

REGISTERED OFFICE:

61a Queen Street

Edinburgh

EH2 4NA

REGISTERED NUMBER:

SC207631 (Scotland)

ACCOUNTANTS:

A H & Co Ltd

Chartered Accountants

6 Logie Mill

Edinburgh

Lothian

EH7 4HG

FIXED ASSETS

Intangible assets

4

49,640

59,114

Tangible assets

5

1,068

7,426

Investments

6

87,045

87,045

137,753

153,585

CURRENT ASSETS

Debtors

7

128,083

147,892

Cash at bank

345,758

349,378

473,841

497,270

CREDITORS

Amounts falling due within one year

8

352,734

376,811

NET CURRENT ASSETS

121,107

120,459

TOTAL ASSETS LESS CURRENT LIABILITIES

258,860

274,044

CREDITORS

Amounts falling due after more than one year

9

(95,069

)

(121,082

)

PROVISIONS FOR LIABILITIES

11

-

(1,968

)

NET ASSETS

163,791

150,994

CAPITAL AND RESERVES

Called up share capital

12

1,000

1,000

Retained earnings

162,791

149,994

SHAREHOLDERS' FUNDS

163,791

150,994

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2023 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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27 September 2023 and were signed on its behalf by:

D Zank - Director

1.	STATUTORY INFORMATION

The Flat Company 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 Company 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.

Turnover

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a contract has only been partially completed at the balance sheet date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the balance sheet date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.

Intangible fixed assets

Intangible fixed assets (including purchased goodwill and patents) are amortised at rates calculated to write off the assets on a straight line basis over their estimated useful economic lives. Impairment of intangible assets is only reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable.

Tangible fixed assets

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

Improvements to property - 10% per annum

Plant and machinery - 25% per annum

Fixture and fittings - 25% per annum

Motor vehicles - 25% per annum

Computer equipment - 33% per annum

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.

Impairment of assets

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.

Hire purchase and leasing commitments

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profit on a straight line basis over the lease term.

Assets that are held under finance leases and hire purchase contracts are capitalised and depreciated over their useful lives. The corresponding lease or higher purchase obligations are treated in the balance sheet as a liability. The interest element of rental obligations is charged to the profit and loss account over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Investments

Investments in associates are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.

Exception from preparing a cash flow statement

Exemption has been taken from preparing a cash flow statement on the grounds that the company qualifies as a small company.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 14 (2022 - 14 ) .

4.	INTANGIBLE FIXED ASSETS

Patents and

Goodwill

licences

Totals

£

£

£

COST

At 1 June 2022

and 31 May 2023

296,495

11,200

307,695

AMORTISATION

At 1 June 2022

237,381

11,200

248,581

Amortisation for year

9,474

-

9,474

At 31 May 2023

246,855

11,200

258,055

NET BOOK VALUE

At 31 May 2023

49,640

-

49,640

At 31 May 2022

59,114

-

59,114

5.	TANGIBLE FIXED ASSETS

Fixtures

Imprvmts to

and

Motor

Computer

prop

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 June 2022

8,869

2,819

21,884

8,922

42,494

Disposals

-

-

(21,884

)

-

(21,884

)

At 31 May 2023

8,869

2,819

-

8,922

20,610

DEPRECIATION

At 1 June 2022

6,914

2,819

16,413

8,922

35,068

Charge for year

887

-

-

-

887

Eliminated on disposal

-

-

(16,413

)

-

(16,413

)

At 31 May 2023

7,801

2,819

-

8,922

19,542

NET BOOK VALUE

At 31 May 2023

1,068

-

-

-

1,068

At 31 May 2022

1,955

-

5,471

-

7,426

6.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1 June 2022

and 31 May 2023

87,045

NET BOOK VALUE

At 31 May 2023

87,045

At 31 May 2022

87,045

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.5.23

31.5.22

£

£

Trade debtors

1,360

54,000

Other debtors

126,723

93,892

128,083

147,892

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.5.23

31.5.22

£

£

Bank loans and overdrafts

10,648

10,648

Trade creditors

3,924

7,409

Taxation and social security

63,317

48,358

Other creditors

274,845

310,396

352,734

376,811

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.5.23

31.5.22

£

£

Bank loans

25,069

34,428

Trade creditors

-

8,154

Other creditors

70,000

78,500

95,069

121,082

10.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31.5.23

31.5.22

£

£

Within one year

29,425

22,590

Between one and five years

29,056

37,860

58,481

60,450

11.	PROVISIONS FOR LIABILITIES

31.5.23

31.5.22

£

£

Deferred tax

-

1,968

Deferred tax

£

Balance at 1 June 2022

1,968

Provided during year

(1,968

)

Balance at 31 May 2023

-

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.5.23

31.5.22

value:

£

£

1,000

Ordinary

£1

1,000

1,000

13.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

As at 31 May 2023, the directors owed the company £26,467 (2022: £15,219).

As at 31 May 2023, the company owed directors nil (2022 : £8,500).

14.	RELATED PARTY DISCLOSURES

During the year, total dividends of £80,000 were paid to the directors .

Transactions with related parties during the year and balances outstanding at the year end were as follows:

Related Party

Transaction

Amount received / (paid) in year to 31.5.23

Amount received / (paid) in year to 31.5.22

Balance (payable to) / receivable from related party as ot 31.5.23

Balance (payable to) / receivable from related party as at 31.5.22

£

£

£

£

(1) Saltouns Limited

Investment

Nil

Nil

84,545

84,545

Dividends

18,000

16,500

Nil

Nil

Loan

89

(17)

72

(17)

Administration services

18,000

24,000

Nil

Nil

(2) Haus Werk Limited

Loan

(22)

22

Nil

22

Commission

22,070

19,593

Nil

Nil

Administration services

6,000

13,000

Nil

15,600

Recharged expenses

13,635

12,010

1,360

Nil

Dividends

800

800

Nil

Nil

(3) The Flat Company (Investments) Limited

Loan

13

29,140

69,692

69,679

Commission

1,613

2,107

Nil

Nil

(4) The Flat Company (Lilla) Limited

Administration services

9,000

8,000

Nil

Nil

Investment

Nil

Nil

2,500

2,500

(5) Nonge Limited

Rent

(2,400)

(2,400)

Nil

Nil

Professional Services

(6,840)

(7,200)

Nil

Nil

(6) Director

Rent

(22,200)

(21,000)

Nil

Nil

(1) Four of the directors are directors of Saltouns Limited. The Flat Company Limited and three directors are also shareholders of Saltouns Limited.

(2) Two of the directors are directors of Haus Werk Limited. Four of the directors are shareholders of Haus Werk Limited.

(3) Two of the directors are directors of The Flat Company (Investments) Limited and four directors are also shareholders of The Flat Company (Investments) Limited.

(4) Three of the directors are directors and shareholders of The Flat Company (Lilla) Limited.

(5) One of the directors is a director and a shareholder of Nonge Limited.

(6) Director of the company.

15.	ULTIMATE CONTROLLING PARTY

There is no ultimate controlling interest.