Company Registration No. SC019536 (Scotland)
Charleston Holdings Limited
unaudited financial statements
for the year ended 31 December 2021
Pages for filing with Registrar
Charleston Holdings Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
Charleston Holdings Limited
Balance sheet
as at 31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
4
154
Investment properties
5
2,655,000
2,655,000
Investments
6
7,302,918
6,375,266
9,957,918
9,030,420
Current assets
Debtors
7
65,148
58,950
Cash at bank and in hand
288,654
194,782
353,802
253,732
Creditors: amounts falling due within one year
8
(148,445)
(69,978)
Net current assets
205,357
183,754
Total assets less current liabilities
10,163,275
9,214,174
Creditors: amounts falling due after more than one year
9
(70,000)
(70,000)
Provisions for liabilities
(1,074,480)
(703,422)
Net assets
9,018,795
8,440,752
Capital and reserves
Called up share capital
30,000
30,000
Non distributable reserves
3,284,731
3,085,899
Profit and loss reserves
5,704,064
5,324,853
Total equity
9,018,795
8,440,752
Charleston Holdings Limited
Balance sheet (continued)
as at 31 December 2021
- 2 -
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered 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 28 September 2022 and are signed on its behalf by:
WA Brand
Director
Company Registration No. SC019536
Charleston Holdings Limited
Notes to the financial statements
for the year ended 31 December 2021
- 3 -
1
Accounting policies
Company information
Charleston Holdings Limited is a
private
company
limited by shares
incorporated in
Scotland
.
The registered office is
5 Viewlands Place, Perth, PH1 1BS.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies' regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared on the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.3
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
3 to 5 years
Motor vehicles
4 years
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
.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure
. Subsequently it is measured
at fair value a
t
the reporting end date.
Changes in fair value are recognised in profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities 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.
Charleston Holdings Limited
Notes to the financial statements (continued)
for the year ended 31 December 2021
1
Accounting policies (continued)
- 4 -
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of 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). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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.
Charleston Holdings Limited
Notes to the financial statements (continued)
for the year ended 31 December 2021
1
Accounting policies (continued)
- 5 -
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction 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
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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
paymen
ts 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. A
m
ounts 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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Tax expense represents the corporation tax charge for the year.
The tax currently payable is based on taxable profit for the year. The company's liability for current tax is calculated using the tax rates that have been enacted or substantively enacted by the balance sheet date
Charleston Holdings Limited
Notes to the financial statements (continued)
for the year ended 31 December 2021
1
Accounting policies (continued)
- 6 -
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
2
2
Charleston Holdings Limited
Notes to the financial statements (continued)
for the year ended 31 December 2021
- 7 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2021 and 31 December 2021
13,653
Depreciation and impairment
At 1 January 2021
13,499
Depreciation charged in the year
154
At 31 December 2021
13,653
Carrying amount
At 31 December 2021
At 31 December 2020
154
5
Investment property
2021
£
Fair value
At 1 January 2021 and 31 December 2021
2,655,000
Investment property comprises £2,655,000. The fair value of the investment property has been arrived at on the basis of a valuation carried out by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
Scottish Homes holds a standard security over 548/550 George Street, Aberdeen. This property is included within investment properties.
6
Fixed asset investments
2021
2020
£
£
Investments
7,302,918
6,375,266
The value of the investments has been determined by reference to market value. the listed investments are dealt on the UK stock exchange.
Charleston Holdings Limited
Notes to the financial statements (continued)
for the year ended 31 December 2021
6
Fixed asset investments (continued)
- 8 -
Movements in fixed asset investments
Shares
£
Cost or valuation
At 1 January 2021
6,375,266
Additions
1,220,176
Valuation changes
898,513
Disposals
(1,191,037)
At 31 December 2021
7,302,918
Carrying amount
At 31 December 2021
7,302,918
At 31 December 2020
6,375,266
7
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
36,972
30,145
Other debtors
28,176
28,805
65,148
58,950
8
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
14,892
3,909
Corporation tax
81,695
21,773
Other taxation and social security
833
1,212
Other creditors
51,025
43,084
148,445
69,978
Charleston Holdings Limited
Notes to the financial statements (continued)
for the year ended 31 December 2021
- 9 -
9
Creditors: amounts falling due after more than one year
2021
2020
£
£
Other borrowings
70,000
70,000
The other borrowings falling due after more than one year relate to redeemable preference shares. The directors consider the value in the accounts to be the fair value at the year end.
10
Non distributable reserve
Non distributable reserves represent the revaluation gain arising on previous UK GAAP treatment of investments and further revaluations on the investments. To comply with the requirements of FRS 102 deferred tax has been applied on the gain.
11
Financial commitments, guarantees and contingent liabilities
In a prior year, Scottish Homes gave to the company a capital grant of £40,184 which was deducted from the cost of investment properties.
If this property is sold before the year 2025 a proportion of the grant has to be repaid to Scottish Homes. At present the contingent liability stands at £
5,363
(
2020
- £
6,702
).
12
Directors' transactions
Dividends totalling £44,345 (2020 - £81,688) were paid in the year in respect of shares held by the company's directors.