ACCOUNTS - Final Accounts preparation

If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

Registered number: SC360912

A & C KENNEDY PROPERTIES LIMITED

UNAUDITED

FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE PERIOD ENDED 31 MARCH 2018

A & C KENNEDY PROPERTIES LIMITED

COMPANY INFORMATION

Directors	Allan Kennedy
	Colin Kennedy


Registered number	SC360912


Registered office	1 Heron Place
	Kingennie
	By Broughty Ferry
	Dundee
	DD5 3PR


Accountants	Findlays
	Chartered Accountants
	11 Dudhope Terrace
	Dundee
	DD3 6TS


Bankers	Royal Bank of Scotland
	Brothock Bridge
	Arbroath
	DD11 1NP

A & C KENNEDY PROPERTIES LIMITED

CONTENTS

	Page
Accountants' Report	1
Balance Sheet	2 - 3
Statement of Changes in Equity	4
Notes to the Financial Statements	5 - 12

A & C KENNEDY PROPERTIES LIMITED

REPORT TO THE DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF A & C KENNEDY PROPERTIES LIMITED
FOR THE PERIOD ENDED 31 MARCH 2018

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of A & C Kennedy Properties Limited for the period ended 31 March 2018 which comprise the Balance Sheet, the Statement of Changes in Equity and the related notes from the Company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants of Scotland, we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/technical-resources/framework-for-the-preparation-of-accounts-revised-january-2017.

This report is made solely to the Board of Directors of A & C Kennedy Properties Limited, as a body, in accordance with the terms of our engagement letter dated 10 December 2018. Our work has been undertaken solely to prepare for your approval the financial statements of A & C Kennedy Properties Limited and state those matters that we have agreed to state to the Board of Directors of A & C Kennedy Properties Limited, as a body, in this report in accordance with the requirements of the Institute of Chartered Accountants of Scotland as detailed at http://www.icas.com/technical-resources/framework-for-the-preparation-of-accounts-revised-january-2017. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than A & C Kennedy Properties Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that A & C Kennedy Properties Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit or loss of A & C Kennedy Properties Limited. You consider that A & C Kennedy Properties Limited is exempt from the statutory audit requirement for the period.

We have not been instructed to carry out an audit or review of the financial statements of A & C Kennedy Properties Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Findlays

Chartered Accountants

11 Dudhope Terrace

Dundee

DD3 6TS

19 December 2018

Page 1

A & C KENNEDY PROPERTIES LIMITED

REGISTERED NUMBER: SC360912

BALANCE SHEET

AS AT 31 MARCH 2018

	31 March	30 June
	2018	2017
Note	£	£

Fixed assets
Tangible assets	4		34,214		183,229
Investment property	5		834,128		623,476
			868,342		806,705
Current assets
Debtors: amounts falling due within one year	6	9,100		2,600
Cash at bank and in hand	7	-		5,212
		9,100		7,812
Creditors: amounts falling due within one year	8	(550,481)		(443,573)
Net current liabilities			(541,381)		(435,761)
Total assets less current liabilities			326,961		370,944
Creditors: amounts falling due after more than one year	9		(185,770)		(227,352)
Provisions for liabilities
Deferred tax	10	(16,507)		(13,020)
			(16,507)		(13,020)
Net assets			124,684		130,572

Capital and reserves
Called up share capital	11	2	2
Revaluation reserve		-	18,351
Undistributable reserve		70,372	55,508
Profit and loss account		54,310	56,711
		124,684	130,572

Page 2

A & C KENNEDY PROPERTIES LIMITED

REGISTERED NUMBER: SC360912

BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2018

The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the period in question in accordance with section 476 of Companies Act 2006.

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.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 December 2018.

Colin Kennedy

Director

The notes on pages 5 to 12 form part of these financial statements.

Page 3

A & C KENNEDY PROPERTIES LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 31 MARCH 2018

	Called up share capital	Revaluation reserve	Undistributable reserve	Profit and loss account	Total equity
	£	£	£	£	£
At 1 July 2016	2	18,351	54,822	53,351	126,526
Comprehensive income for the year
Profit for the year	-	-	-	4,046	4,046
Transfer to/from profit and loss account	-	-	-	(686)	(686)
Transfer between other reserves	-	-	686	-	686

At 1 July 2017	2	18,351	55,508	56,711	130,572

Loss for the period	-	-	-	(5,888)	(5,888)
Transfer to/from profit and loss account	-	-	-	3,487	3,487
Transfer between other reserves	-	(18,351)	14,864	-	(3,487)
At 31 March 2018	2	-	70,372	54,310	124,684

The notes on pages 5 to 12 form part of these financial statements.

Page 4

A & C KENNEDY PROPERTIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2018

1.	General information

A & C Kennedy Properties Limited Limited is a private company limited by shares incorporated in Scotland within the United Kingdom (company number SC360912). The address of the registered office is given in the company information page of these financial statements.
The financial statements are presented in sterling which is the functional currency of the company.
The accounting period has been shortened to 31 March 2018 to align the company year end with the tax year end. These accounts cover the period from 1 July 2017 to 31 March 2018 and therefore are not entirely comparable with the 2017 figures which are for a full year.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.3

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.4

Borrowing costs

All borrowing costs are recognised in the Statement of Comprehensive Income in the period in which they are incurred.

Page 5

A & C KENNEDY PROPERTIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2018

2.Accounting policies (continued)

2.5

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.6

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.7

Tangible fixed assets

Tangible fixed assets under the cost model, other than investment properties, are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 6

A & C KENNEDY PROPERTIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2018

2.Accounting policies (continued)

2.7

Tangible fixed assets (continued)

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property	-	Not depreciated
Plant and machinery	-	20% straight line
Motor vehicles	-	25% straight line
Fixtures and fittings	-	33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

2.8

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Balance Sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in the Statement of Comprehensive Income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

2.9

Investment property

Investment property is carried at fair value determined annually by the directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Income and Retained Earnings.

2.10

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 7

A & C KENNEDY PROPERTIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2018

2.Accounting policies (continued)

2.12

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.13

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

2.14

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Employees

The average monthly number of employees, including directors, during the period was 3 (2017 - 3).

Page 8

A & C KENNEDY PROPERTIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2018

4.	Tangible fixed assets

	Freehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£	£
Cost or valuation
At 1 July 2017	121,930	175,781	4,310	5,607	307,628
Transfers between classes	(121,930)	-	-	-	(121,930)
At 31 March 2018	-	175,781	4,310	5,607	185,698
Depreciation
At 1 July 2017	-	115,200	3,592	5,607	124,399
Charge for the period on owned assets	-	26,367	718	-	27,085
At 31 March 2018	-	141,567	4,310	5,607	151,484
Net book value
At 31 March 2018	-	34,214	-	-	34,214
At 30 June 2017	121,930	60,581	718	-	183,229

Page 9

A & C KENNEDY PROPERTIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2018

5.	Investment property

		Freehold investment property
		£
	Valuation
	At 1 July 2017	623,476
	Additions at cost	88,722
	Transfers between classes	121,930
	At 31 March 2018	834,128

The 2018 valuations were made by the directors, on an open market value for existing use basis. This is based upon a professional valuation by chartered surveyors Graham & Sibbald in June 2015 and current market rents and investment property yields for comparable real estate.

	Historic cost	747,249	554,948
		747,249	554,948

Debtors

					31 March	30 June
					2018	2017
					£	£


Trade debtors	3,600	600
Other debtors	5,500	2,000
	9,100	2,600

Page 10

A & C KENNEDY PROPERTIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2018

Cash at bank and in hand	-	5,212
Less: bank overdrafts	(8,543)	-
	(8,543)	5,212

Bank overdrafts	8,543	-
Bank loans	23,895	23,437
Trade creditors	5,420	2,042
Corporation tax	3,550	4,123
Other taxation and social security	7,346	5,517
Obligations under finance lease and hire purchase contracts	11,237	16,482
Other creditors	487,490	389,472
Accruals and deferred income	3,000	2,500
	550,481	443,573

Bank loans	162,959	181,137
Net obligations under finance leases and hire purchase contracts	22,811	46,215
	185,770	227,352

The Royal Bank of Scotland holds standard securities and a bond and floating charge over the company's assets for £186,854 (2017 - £204,574).
Bank loans payable after 5 years amounted to £57,964 (2017 - £78,425).

Page 11

A & C KENNEDY PROPERTIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2018

10.	Deferred taxation

		2018
		£

	At beginning of year	(13,020)
	Charged to profit or loss	(3,487)
	At end of year	(16,507)

	Deferred taxation on investment property revaluation.	(16,507)	(13,020)
		(16,507)	(13,020)

Allotted, called up and fully paid

1 (2017 - 1) Ordinary A Shares share of £1.00	1	1
1 (2017 - 1) Ordinary B Shares share of £1.00	1	1

	2	2

12.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £1,981 (2017 - £2,504).

Page 12