Company Registration No. 6378284 (England and Wales)
S1 DEVELOPMENTS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2018
PAGES FOR FILING WITH REGISTRAR
S1 DEVELOPMENTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Balance sheet
3 - 4
Statement of cash flows
5
Notes to the financial statements
6 - 12
S1 DEVELOPMENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2018
- 1 -
The directors present the strategic report for the year ended 30 September 2018.
Fair review of the business
The results for the year and the financial position at the year end were considered satisfactory and we expect continued growth in the foreseeable future.
Our strategy remains to identify suitable site acqusitions for development, obtain effective planning (working closely with local authorities) and design/build quality homes that appeal to our client base. On occasion, we continue to undertake joint ventures to deliver our strategy, with parties that have a similar approach in achieving this as we do, providing the design/build phase of such operations.
In this financial year we were nominated for three Scottish Home Awards: House Builder of the Year (less than 100 units); Apartment Development of the Year (for Westerlea Gardens) and another for Customer Excellence Award.
Principal risks and uncertainties
The principal risks and uncertainties facing the company continued to be the same as the previous year and are summarised as follows:-
(i) availability of suitable land
(ii) planning delays
(iii) property market fluctuations
(iv) buyer uncertainties and their funding issues
(v) potential political upheaval
(vi) availability of skilled labour
The directors regularly review the aforementioned risks and uncertainties and they feel that the company is well placed to mitigate their impact.
The company's activities remain Scotland based and therefore susceptible to the UK construction sector market conditions. The impact of the Brexit vote is ongoing and it has positive and negative effects. We are aware that one of the negative effects is the possible shortage of skilled labour and imported materials, the impact of which is currently uncertain.
On the other hand, we are also aware that the weakened sterling might attract foreign investors.
The directors maintain regular contact with customers and market specialists and review wider UK indicators adjusting the company's market approach accordingly. This is well supported by the above mentioned fact that we were one of the nominated parties for the Customer Excellence Award at this year's Scottish Home Awards.
Development and performance
We were responsible for the design and build of a site at Murrayfield Road named Westerlea. It was purchased in June 2016 by Oilmews Limited (a company owned by the two directors) with planning permission to build 31 newbuild apartments, seven of which were completed and sold during the previous year and the remaining 24 apartments were sold during the current year.
On 18 October 2017 we acquired Skyliner, a site located at the East Ocean Terminal in Leith Edinburgh for which planning permission was granted on 5 December 2018. We also acquired a site at Gullane, East Lothian which comprised of a commercial building and is currently being converted into eight residential units. The expected completion date is March 2019. During the year TAW Developments Limited (a company in which Shane David Teague and Daniel John Teague are also directors and shareholders) acquired another site at York Place which will be converted from a listed building into 6 residential units with expected completion late 2019.
S1 DEVELOPMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2018
- 2 -
The position of the Company at the year end
The end of the financial year finds the company in a leading position in the small house builder's market in the area of Edinburgh. We will maintain our efforts to provide high end quality products and at the same time use materials that are more environmentally friendly. Additionally, we will continue to improve our workers' health and safety conditions by working closely with The City of Edinburgh Council's health and safety department.
Daniel John Teague
Director
10 January 2019
S1 DEVELOPMENTS LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2018
30 September 2018
- 3 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
3
141,551
186,673
Current assets
Stocks
4
4,935,127
-
Debtors falling due after more than one year
5
1,889,127
3,070,000
Debtors falling due within one year
5
5,289,231
941,627
Cash at bank and in hand
980,571
6,183,943
13,094,056
10,195,570
Creditors: amounts falling due within one year
6
(6,943,855)
(4,397,039)
Net current assets
6,150,201
5,798,531
Total assets less current liabilities
6,291,752
5,985,204
Creditors: amounts falling due after more than one year
7
(15,786)
(45,148)
Provisions for liabilities
Deferred tax liability
8
14,865
15,480
(14,865)
(15,480)
Net assets
6,261,101
5,924,576
Capital and reserves
Called up share capital
9
100
100
Profit and loss reserves
6,261,001
5,924,476
Total equity
6,261,101
5,924,576
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
S1 DEVELOPMENTS LIMITED
BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2018
30 September 2018
- 4 -
The financial statements were approved by the board of directors and authorised for issue on 10 January 2019 and are signed on its behalf by:
Shane David Teague
Director
Company Registration No. 6378284
S1 DEVELOPMENTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2018
- 5 -
2018
2017
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
12
(5,669,346)
3,339,363
Interest paid
(12,834)
(30,321)
Income taxes paid
(171,829)
(28,164)
Net cash (outflow)/inflow from operating activities
(5,854,009)
3,280,878
Investing activities
Purchase of tangible fixed assets
(46,841)
(7,791)
Proceeds on disposal of tangible fixed assets
36,301
20,900
Interest received
2,804
3,058
Net cash (used in)/generated from investing activities
(7,736)
16,167
Financing activities
Increase of borrowings
1,250,000
-
Repayment of bank loans
(562,265)
26,255
Payment of finance leases obligations
(29,362)
(30,151)
Net cash generated from/(used in) financing activities
658,373
(3,896)
Net (decrease)/increase in cash and cash equivalents
(5,203,372)
3,293,149
Cash and cash equivalents at beginning of year
6,183,943
2,890,794
Cash and cash equivalents at end of year
980,571
6,183,943
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2018
- 6 -
1
Accounting policies
Company information
S1 DEVELOPMENTS LIMITED is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is 1 Queens Parade, Brownlow Road, London, N11 2DN and t
he
principal place of business
is
52-54 Dundas Street, Edinburgh, EH3 6QZ.
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 have been prepared with early application of
the
FRS 102 Triennial Review 2017 amendments relating to directors' loans and gift aid.
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 under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents amounts receivable for contracting work done
and it
represents the value of work
invoiced
during
the year
. Any
amounts not invoiced
are included in the work in progress
.
Work done and work in progress
are
recognised by reference to the stage of completion.
1.3
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost net of depreciation.
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
20% Straight line
Fixtures, fittings & equipment
20% Staight line
Motor vehicles
25% Reducing balance
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
Stocks
Stock and work in progress is valued
at the lower of cost and net realisable value
, whichever is lower
. The cost of work in progress comprises
of
materials, direct labour, other direct costs and related
overheads
(based on normal operating capacity).
N
et realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of
stock and work in progress
over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2018
1
Accounting policies
(Continued)
- 7 -
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.5
Cash at bank and in hand
Cash at bank and in hand
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.
1.6
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.
1.7
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.
1.8
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
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted. A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.
1.9
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.
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.
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2018
1
Accounting policies
(Continued)
- 8 -
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The company operates
two
defined contribution pension scheme
s
for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered funds.
1.11
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 22 (2017 - 22).
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 October 2017
501,481
Additions
46,841
Disposals
(67,964)
At 30 September 2018
480,358
Depreciation and impairment
At 1 October 2017
314,808
Depreciation charged in the year
63,290
Eliminated in respect of disposals
(39,291)
At 30 September 2018
338,807
Carrying amount
At 30 September 2018
141,551
At 30 September 2017
186,673
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2018
- 9 -
4
Stocks
2018
2017
£
£
Site costs
3,923,654
-
Work in progress
1,011,473
-
4,935,127
-
5
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
171,133
716,938
Corporation tax recoverable
-
396
Amounts due from group undertakings
4,256,710
-
Other debtors (note 14)
861,388
224,293
5,289,231
941,627
Amounts falling due after more than one year:
Teague Homes (UK) Limited
1,889,127
3,070,000
Total debtors
7,178,358
4,011,627
6
Creditors: amounts falling due within one year
2018
2017
£
£
Bank loans and overdrafts
1,259
563,524
Trade creditors
218,441
451,992
Amounts due to group undertakings
-
1,159,508
Corporation tax
79,028
172,225
Other taxation and social security
25,919
27,908
Other creditors (note 14)
6,619,208
2,021,882
6,943,855
4,397,039
7
Creditors: amounts falling due after more than one year
2018
2017
£
£
Obligations under finance leases
15,786
45,148
Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2018
- 10 -
8
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2018
2017
Balances:
£
£
Accelerated capital allowances
14,865
15,480
There were no deferred tax movements in the year.
9
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Polycarpos Spyrou.
The auditor was P Spyrou & Co.
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2018
2017
£
£
286,027
-
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2018
- 11 -
12
Cash generated from operations
2018
2017
£
£
Profit for the year after tax
336,525
649,859
Adjustments for:
Taxation charged
78,413
158,527
Finance costs
12,834
30,321
Investment income
(2,804)
(3,058)
Gain on disposal of tangible fixed assets
(7,628)
(18,758)
Depreciation and impairment of tangible fixed assets
63,290
80,213
Movements in working capital:
(Increase)/decrease in stocks
(4,935,127)
2,019,946
(Increase)/decrease in debtors
(3,255,165)
1,633,561
Increase/(decrease) in creditors
2,040,316
(1,211,248)
Cash (absorbed by)/generated from operations
(5,669,346)
3,339,363
13
Parent company
The ultimate parent company is Eugate Investments Limited, a company registered in England and Wales.
Eugate Investment Limited prepares group financial statements and can be obtained from the Company's registered office, 1 Queens Parade Brownlow Road London N11 2DN.
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2018
- 12 -
14
Related party transactions
During the year, the Company carried out work for Daniel John Teague ,at arm's length, for £963,494 in connection with Inverleith Terrace.
Included in other creditors (note6) there is £3,
44
7,099 (2017: £82,851) owed from S1 Developments Limited to Oilmews Limited.
Also included in other creditors (note6) there is amount of £1,250,000. This consists of £500,000 owed to Shane David Teague, director of the Company, and £750,000 owed to James Francis Teague, father of the two directors.
In addition, in other creditors (note6) there is an amount of £1,864,651 (2017: £1,866,466) owed to Carlindean Developments (Scotland) Limited. These companies are also controlled by the directors, Shane and Daniel Teague.
On 2 December 2016 Shane David Teague and Daniel John Teague remortgaged one of their personal properties to fund the company's projects (note6). The loan
amounted to £550,000. It
was used exclusively for business purposes and it was repaid in full on 31 July 2018.
At the year end, the Company was owed £485,008 and £483,895 from Lincam Pentland Limited and Taw Developments Limited respectively (note5). Lincam Pentland Limited is a fellow subsidiary and
in
Taw Developments Limited
,
Shane David Teague and Daniel John Teague
own one hundred shares each out of the three hundred shares issued
.
2018-09-30
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false
CCH Software
CCH Accounts Production 2018.300
No description of principal activity
10 January 2019
This audit opinion is unqualified
Shane David Teague
Daniel John Teague
Daniel John Teague
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