REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
Unaudited Financial Statements |
|
for the Year Ended 31 March 2022 |
|
for |
|
Orkney Islands Property Developments Ltd |
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
Unaudited Financial Statements |
|
for the Year Ended 31 March 2022 |
|
for |
|
Orkney Islands Property Developments Ltd |
Orkney Islands Property Developments Ltd (Registered number: SC132049) |
|
|
|
|
|
|
Contents of the Financial Statements |
for the Year Ended 31 March 2022 |
|
|
|
|
Page |
|
Company Information | 1 |
|
Statement of Financial Position | 2 |
|
Notes to the Financial Statements | 4 |
|
Orkney Islands Property Developments Ltd |
|
Company Information |
for the Year Ended 31 March 2022 |
|
|
|
|
|
|
|
DIRECTORS: |
|
|
|
|
|
|
|
|
SECRETARY: |
|
|
|
|
REGISTERED OFFICE: |
|
|
|
|
|
|
|
REGISTERED NUMBER: |
|
|
|
|
ACCOUNTANTS: |
|
Chartered Accountants |
3 East Road |
Kirkwall |
Orkney |
KW15 1HZ |
|
|
|
BANKERS: |
|
1 Victoria Street |
Kirkwall |
Orkney |
KW15 1DP |
Orkney Islands Property Developments Ltd (Registered number: SC132049) |
|
Statement of Financial Position |
31 March 2022 |
|
2021 | 2022 |
£ | £ | Notes | £ | £ |
FIXED ASSETS |
|
Tangible assets | 4 |
|
|
Investment property | 5 |
|
|
|
|
CURRENT ASSETS |
|
Debtors | 6 |
|
|
Cash at bank and in hand |
|
|
|
CREDITORS |
|
Amounts falling due within one year | 7 |
|
|
NET CURRENT ASSETS |
|
|
TOTAL ASSETS LESS CURRENT
LIABILITIES |
|
|
CREDITORS |
( |
) |
Amounts falling due after more than one
year |
8 |
( |
) |
|
( |
) | PROVISIONS FOR LIABILITIES | ( |
) |
|
( |
) | ACCRUALS AND DEFERRED INCOME | ( |
) |
|
|
PENSION ASSET | 12 |
|
|
NET ASSETS |
|
Orkney Islands Property Developments Ltd (Registered number: SC132049) |
|
Statement of Financial Position - continued |
31 March 2022 |
|
2021 | 2022 |
£ | £ | Notes | £ | £ |
RESERVES |
|
Sinking fund reserve | 11 |
|
|
Pension reserve | 11 |
|
|
Income and expenditure account | 11 |
|
|
|
|
|
|
|
|
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 surplus or deficit 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. |
|
|
|
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
|
The financial statements were approved by the Board of Directors and authorised for issue on
|
|
|
|
|
|
|
|
Orkney Islands Property Developments Ltd (Registered number: SC132049) |
|
Notes to the Financial Statements |
for the Year Ended 31 March 2022 |
|
1. | STATUTORY INFORMATION |
|
Orkney Islands Property Developments Ltd is a
|
|
The presentation currency of the financial statements is the Pound Sterling (£). |
|
|
2. | ACCOUNTING POLICIES |
|
Basis of preparing the financial statements |
|
|
Turnover |
Turnover consists of rental income, exclusive of Value Added Tax, arising in the United Kingdom. |
|
Tangible fixed assets |
|
Plant and machinery etc | - |
|
|
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in surplus or deficit. |
|
Investment properties are included in the balance sheet at their fair value. |
|
Full valuations are made by independent professional qualified valuers every five years and in the intervening years, these valuations are updated by directors with the assistance of independent professional advice as required. |
Orkney Islands Property Developments Ltd (Registered number: SC132049) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
|
2. | ACCOUNTING POLICIES - continued |
|
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' 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 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 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 re 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. |
|
Pension costs and other post-retirement benefits |
The pension scheme liabilities are measured using a projected unit method. The pension scheme assets are valued at market rate. The pension scheme surplus (to the extent that it can be recovered)/deficit is recognised in full on the balance sheet. |
|
Grants |
Grants from The Scottish Government which relate to specific capital expenditure, are deducted from the cost of fixed assets in a manner similar to the accounting treatment adopted by Housing Associations. |
|
Grants of a Revenue nature are credited to the profit and loss account when received. |
|
Government grants received are treated as deferred credits until the expiry of the obligation period. |
Orkney Islands Property Developments Ltd (Registered number: SC132049) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
|
2. | ACCOUNTING POLICIES - continued |
|
Sinking fund reserve |
This provision within Reserves has been established for future major repairs to the Glaitness Scheme. Transfers to this reserve are based on 2% per annum of the original project cost. |
|
Maintenance fund reserve |
This provision within Reserves has been established for the ongoing maintenance requirements of Glaitness. Transfers to this reserve are based on £344 per property per annum at Glaitness. |
|
3. | EMPLOYEES AND DIRECTORS |
|
The average number of employees during the year was
|
|
4. | TANGIBLE FIXED ASSETS |
F&F and |
Equipment |
£ |
COST |
At 1 April 2021 |
and 31 March 2022 |
|
DEPRECIATION |
At 1 April 2021 |
|
Charge for year |
|
At 31 March 2022 |
|
NET BOOK VALUE |
At 31 March 2022 |
|
At 31 March 2021 |
|
|
5. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 April 2021 |
and 31 March 2022 |
|
NET BOOK VALUE |
At 31 March 2022 |
|
At 31 March 2021 |
|
Orkney Islands Property Developments Ltd (Registered number: SC132049) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
|
5. | INVESTMENT PROPERTY - continued |
|
Fair value at 31 March 2022 is represented by: |
£ |
Valuation in 1995 | 4,810 |
Valuation in 1996 | 1,442 |
Valuation in 1997 | 2,683 |
Valuation in 2002 | 229,846 |
Valuation in 2007 | 1,041,562 |
Valuation in 2011 | 790,000 |
Valuation in 2016 | 395,359 |
Valuation in 2020 | 255,000 |
Cost | 1,629,298 |
4,350,000 |
|
The Investment Properties were valued by Billy Groundwater AssocRICS of Orkney Surveying Services on 5 November 2020 at fair value. |
|
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Other debtors |
|
|
|
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Other loans (see note 9) |
|
|
Tax |
|
|
Other creditors |
|
|
Lettings Control Accounts | 7,606 | 135 |
Accruals and deferred income |
|
|
|
|
|
8. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR |
2022 | 2021 |
£ | £ |
Other loans (see note 9) |
|
|
|
Amounts falling due in more than five years: |
|
Repayable by instalments |
Other loans | 234,560 | 238,880 |
Orkney Islands Property Developments Ltd (Registered number: SC132049) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
|
9. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2022 | 2021 |
£ | £ |
Amounts falling due within one year or on demand: |
Other loans |
|
|
|
Amounts falling due between two and five years: |
Other loans |
|
|
|
Amounts falling due in more than five years: |
|
Repayable by instalments |
Other loans | 234,560 | 238,880 |
|
10. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2022 | 2021 |
£ | £ |
Other loans |
|
|
|
Scottish Homes, The Scottish Ministers and Orkney Islands Council hold standard securities over the properties. |
|
11. | RESERVES |
Income |
and | Sinking | Maintenance |
expenditure | fund | Pension | Fund |
Totals | account | reserve | reserve | Reserve |
£ | £ | £ | £ | £ |
|
At 1 April 2021 | 3,190,943 |
|
|
|
|
Surplus for the year |
|
|
Movements | (5,000 | ) | (23,536 | ) | 15,280 | (5,000 | ) | 8,256 |
Expenditure in Year | (8,256 | ) | - | - | - | (8,256 | ) |
At 31 March 2022 | 3,196,882 |
|
|
|
|
Orkney Islands Property Developments Ltd (Registered number: SC132049) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
|
12. | EMPLOYEE BENEFIT OBLIGATIONS |
|
The company's employees are eligible to join a Local Government pension scheme, which is a defined benefit statutory scheme. The most recent full actuarial valuation was on 31 March 2020 and was carried out by a qualified independent actuary. An updated valuation has been prepared at 31 March 2022 for the purposes of FRS102 disclosure. Contributions to the scheme are determined by the actuary on the basis of triennial valuations. The estimated Employer's contributions for the year to 31 March 2023 will be approximately £10,000. |
|
The assumptions that have the most significant effect on the results of the valuation are those relating to the rate of return on investments and the rate of increase in salaries and pensions. It was assumed that salary increases would average 3.7% per year and that present and future pensions would increase at the rate of 3.2% per year. |
|
The pension charge for the year was £10,385. The contributions of the company will be 17% and employees will contribute between 5.7% and 6% depending on salary. |
|
The amounts recognised in the balance sheet are as follows: |
|
Defined benefit |
pension plans |
2022 | 2021 |
£ | £ |
Present value of funded obligations | ( |
) | ( |
) |
Fair value of plan assets |
|
|
216,000 | 221,000 |
Present value of unfunded obligations |
|
|
Surplus |
|
|
Net asset |
|
|
|
The amounts recognised in surplus or deficit are as follows: |
|
Defined benefit |
pension plans |
2022 | 2021 |
£ | £ |
Current service cost |
|
|
Net interest from net defined benefit
asset/liability |
(4,000 |
) |
(3,000 |
) |
Past service cost |
|
|
27,000 | 18,000 |
|
Actual return on plan assets |
|
|
Orkney Islands Property Developments Ltd (Registered number: SC132049) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
|
12. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
|
Changes in the present value of the defined benefit obligation are as follows: |
|
Defined benefit |
pension plans |
2022 | 2021 |
£ | £ |
Opening defined benefit obligation | 1,553,000 | 1,207,000 |
Current service cost |
|
|
Contributions by scheme participants |
|
|
Interest cost |
|
|
Benefits paid | ( |
) | ( |
) |
Remeasurements: |
Actuarial (gains)/losses from changes in
demographic assumptions |
(8,000 |
) |
11,000 |
Actuarial (gains)/losses from changes in
financial assumptions |
(92,000 |
) |
293,000 |
Oblig other remeasurement | 3,000 | 80,000 |
|
|
|
Changes in the fair value of scheme assets are as follows: |
|
Defined benefit |
pension plans |
2022 | 2021 |
£ | £ |
Opening fair value of scheme assets | 1,774,000 | 1,341,000 |
Contributions by employer |
|
|
Contributions by scheme participants |
|
|
Expected return | 35,000 | 31,000 |
Benefits paid | (34,000 | ) | (25,000 | ) |
Return on plan assets (excluding interest
income) |
(85,000 |
) |
480,000 |
|
|
Orkney Islands Property Developments Ltd (Registered number: SC132049) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
|
12. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
|
The amounts recognised in other comprehensive income are as follows: |
|
Defined benefit |
pension plans |
2022 | 2021 |
£ | £ |
Actuarial (gains)/losses from changes in
demographic assumptions |
8,000 |
(11,000 |
) |
Actuarial (gains)/losses from changes in
financial assumptions |
92,000 |
(293,000 |
) |
Oblig other remeasurement | (3,000 | ) | (80,000 | ) |
Return on plan assets (excluding interest
income) |
(85,000 |
) |
480,000 |
12,000 | 96,000 |
|
The major categories of scheme assets as a percentage of total scheme assets are as follows: |
|
Defined benefit |
pension plans |
2022 | 2021 |
Equities | 86% | 91% |
Bonds | 9% | 8% |
Property | 4% | - |
Cash | 1% | 1% |
100% | 100% |
|
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
|
2022 | 2021 |
Discount rate |
|
|
Future salary increases |
|
|
Future pension increases |
|
|
|
|
Mortality Assumptions | 2022 | 2021 |
Assumed life expectations on retirement at age 65: | Years | Years |
Retiring today |
- Males | 21.3 | 21.4 |
- Females | 23.7 | 23.9 |
Retiring in 20 years |
- Males | 22.9 | 23.1 |
- Females | 25.9 | 26.1 |