Company Registration No. 6378284 (England and Wales)
S1 DEVELOPMENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
S1 DEVELOPMENTS LIMITED
COMPANY INFORMATION
Directors
Shane David Teague
Daniel John Teague
Secretary
Daniel John Teague
Company number
6378284
Registered office
1 Queens Parade
Brownlow Road
London
N11 2DN
Auditor
P Spyrou & Co
Chartered Certified Accountants
1 Queens Parade
Brownlow Road
London
N11 2DN
Business address
52-54 Dundas Street
Edinburgh
EH3 6QZ
Bankers
Barclays Bank Plc
1 St Andrew Square
Edinburgh
EH2 2BD
Solicitors
Anderson Strathern LLP
1 Rutland Court
Edinburgh
EH3 8EY
S1 DEVELOPMENTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 19
S1 DEVELOPMENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 1 -
The directors present the strategic report for the year ended 30 September 2021.
Fair review of the business
The results for the financial year were considered satisfactory. Following our performance in recent years we are in a very good position with capital to invest in future development opportunities.
Our strategy remains to identify suitable site acquisitions 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 continued to project manage the development named 'The Ropeworks' on behalf of Teague Homes (UK) Limited for which our client company was nominated for the following awards: Affordable Housing Development of the Year (private sale), Apartment Development of the Year (private sale), House of the Year, Housebuilder of the Year, Housing Regeneration Project of the Year and Large Housing Development of the Year (private sale).
Principal risks and uncertainties
The principal risks and uncertainties facing the company continue 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
and materials
(vii) prices inflation
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 Brexit is ongoing and it has positive and negative effects.
The construction industry over the last year has, in general, been very active. Despite the coronavirus outbreak we have managed to continue our positive performance by acquiring quality personnel in key areas of the business trying to maintain our positive outlook for the next twenty four months Provided that there will be no significant backlash in the mortgage and unemployment market due to the current pandemic we feel that opportunities for the company to continue developing still exist.
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 fact
that
over the years almost all of our developments have been either nominated or won
Scottish Home Awards w
hich shows that we recognise the needs of the property market in Edinburgh.
Development and performance
In the current year, S1 Developments Limited was responsible for the design and build of Gilmore Place, an old convent, which will be completed by September 2022 and will deliver 230 student beds.
We were also responsible for the design & build for the development at York Place where all six available units were sold by February 2022.
Finally, on the 30th September 2021 we also acquired phase eight at 'The Ropeworks' in Leith, Edinburgh which will comprise of 22 townhouses and 16 colony flats with expected completion March 2023.
S1 DEVELOPMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 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
12 April 2022
S1 DEVELOPMENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2021.
Principal activities
The principal activity of the company continued to be that of building, contracting and property development.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Shane David Teague
Daniel John Teague
Results and dividends
The results for the year are set out on Page 8.
During the current and previous year the company did not pay a dividend.
Post reporting date events
On 8 February 2022 the company disposed the land for a site located at the East Ocean Terminal in Leith with planning permission granted on 5 December 2018 to Ocean Drive unit trust for the amount of £12 million.
The company will also be responsible for the design and build of 46 units at the site in Temple Park Crescent, owned by Oilmews Limited, with works commencing in April 2022.
Future developments
The fundamentals for the market have been positive with continued demand for new housing in the Edinburgh area. The directors keep under consideration the breadth of activities undertaken by the company, quality of the builds and market forces when determining their pricing strategy. This leaves them well placed to deal with any stuctural changes that may occur in the market.
Auditor
A resolution proposing that P Spyrou & Co be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Daniel John Teague
Director
12 April 2022
S1 DEVELOPMENTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
S1 DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF S1 DEVELOPMENTS LIMITED
- 5 -
Opinion
We have audited the financial statements of S1 DEVELOPMENTS LIMITED
(the 'company')
for the year ended 30 September 2021 which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and
notes to the financial statements, including a summary of significant accounting policies
. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice)
Section 1A
.
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 30 September 2021 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
S1 DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF S1 DEVELOPMENTS LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors
either
intend
to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
-
T
he engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
-
W
e identified the laws and regulations applicable to the company through discussions with
the
directors and from our commercial knowledge and experience of the
construction industry
;
-
W
e focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection, anti-bribery, environmental and health and safety legislation;
-
W
e assessed the extent of compliance with the laws and regulations identified above through making enquiries
to
management and inspecting legal correspondence; and
-
Identified
laws and regulations were communicated within the audit team regularly and the team remained alert to
any
instances of non-compliance throughout the audit.
S1 DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF S1 DEVELOPMENTS LIMITED
- 7 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-
M
aking enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
-
C
onsidering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
To address the risk of fraud through management bias and override of controls, we:
-
P
erformed analytical procedures to identify any unusual or unexpected relationships;
-
T
ested journal entries to identify unusual transactions;
-
I
nvestigated the rationale behind
any
significant or unusual transactions; and
-
A
ssessed whether judgements
and assumptions made in determining the accounting estimates
made
in n
otes 8,9 and 10
were indicative of potential bias
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-
A
greeing financial statement disclosures to underlying supporting documentation;
-
R
eading the minutes of meetings of those charged with governance;
-
E
nquiring of management as to actual and potential litigation and claims;
-
R
eviewing correspondence with HMRC, relevant regulators and the company’s legal advisors;
There are inherent limitations in our audit procedures described above. The more removed laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Polycarpos Spyrou (Senior Statutory Auditor)
For and on behalf of P Spyrou & Co
12 April 2022
Chartered Certified Accountants
Statutory Auditor
1 Queens Parade
Brownlow Road
London
N11 2DN
S1 DEVELOPMENTS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 8 -
2021
2020
Notes
£
£
Turnover
11,378,176
10,172,526
Cost of sales
(8,931,600)
(8,904,502)
Gross profit
2,446,576
1,268,024
Administrative expenses
(1,071,722)
(999,613)
Other operating income
5,988
50,641
Operating profit
1,380,842
319,052
Interest receivable and similar income
16,582
1,720
Interest payable and similar expenses
(4,581)
(10,985)
Profit before taxation
1,392,843
309,787
Tax on profit
6
(245,671)
(61,072)
Profit for the financial year
1,147,172
248,715
Retained earnings brought forward
7,802,774
7,554,059
Retained earnings carried forward
8,949,946
7,802,774
S1 DEVELOPMENTS LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2021
30 September 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
7
190,180
67,451
Current assets
Stocks
8
13,677,085
6,954,427
Debtors
9
12,353,168
10,541,320
Cash at bank and in hand
1,976,097
6,567,115
28,006,350
24,062,862
Creditors: amounts falling due within one year
10
(19,166,166)
(16,318,818)
Net current assets
8,840,184
7,744,044
Total assets less current liabilities
9,030,364
7,811,495
Creditors: amounts falling due after more than one year
11
(50,536)
(1,500)
Provisions for liabilities
Deferred tax liability
12
(29,782)
(7,121)
Net assets
8,950,046
7,802,874
Capital and reserves
Called up share capital
14
100
100
Profit and loss reserves
8,949,946
7,802,774
Total equity
8,950,046
7,802,874
These financial statements have been prepared 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 12 April 2022 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 2021
- 10 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
16
(4,388,456)
5,815,196
Interest paid
(4,581)
(10,985)
Income taxes paid
(9,068)
(364,157)
Net cash (outflow)/inflow from operating activities
(4,402,105)
5,440,054
Investing activities
Purchase of tangible fixed assets
(184,991)
(20,823)
Proceeds on disposal of tangible fixed assets
75,250
47,620
Interest received
16,582
1,720
Net cash (used in)/generated from investing activities
(93,159)
28,517
Financing activities
Repayment of bank loans
(208,295)
204,916
Payment of finance leases obligations
64,099
(21,786)
Net cash (used in)/generated from financing activities
(144,196)
183,130
Net (decrease)/increase in cash and cash equivalents
(4,639,460)
5,651,701
Cash and cash equivalents at beginning of year
6,567,115
915,414
Cash and cash equivalents at end of year
1,927,655
6,567,115
Relating to:
Cash at bank and in hand
1,976,097
6,567,115
Bank overdrafts included in creditors payable within one year
(48,442)
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 11 -
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 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
Going concern
Management
true
has determined
that there is no material uncertainty that casts doubt on the entity’s ability to continue as a going
concern
due to Covid-19
. It expects that C
ovid
-19
will
have significant
impact
,
mainly
, in
relation to
material costs and as a result the invoiced work done.
1.3
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.
1.4
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
.
1.5
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 2021
1
Accounting policies
(Continued)
- 12 -
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.
1.6
Cash at bank and in hand
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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section
9
‘Consolidated and
Separate Financial Statements’ 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.
1.8
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.9
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.
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
1
Accounting policies
(Continued)
- 13 -
1.10
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.
1.11
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.
1.12
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 profit or loss 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
profit or loss
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
s
asset are consumed.
1.13
Grants
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
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
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
17,250
13,750
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 14 -
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
29
25
5
Directors' remuneration
2021
2020
£
£
Remuneration paid to directors
862,578
879,761
Company pension contributions to defined contribution scheme
120,000
862,578
999,761
6
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
223,010
69,908
Deferred tax
Origination and reversal of timing differences
22,661
(8,836)
Total tax charge
245,671
61,072
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
6
Taxation
(Continued)
- 15 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit before taxation
1,392,843
309,787
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
264,640
58,860
Tax effect of expenses that are not deductible in determining taxable profit
3,410
2,212
Group relief
(11,159)
Depreciation add back
11,830
11,744
Capital allowances
(31,413)
(402)
Chargeable disposals
(14,298)
(2,506)
Deferred tax for the year
22,661
(8,836)
Taxation charge for the year
245,671
61,072
7
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 October 2020
435,595
Additions
184,991
Disposals
(142,700)
At 30 September 2021
477,886
Depreciation and impairment
At 1 October 2020
368,144
Depreciation charged in the year
62,262
Eliminated in respect of disposals
(142,700)
At 30 September 2021
287,706
Carrying amount
At 30 September 2021
190,180
At 30 September 2020
67,451
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 16 -
8
Stocks
2021
2020
£
£
Site costs
6,204,950
3,204,950
Work in progress
7,472,135
3,749,477
13,677,085
6,954,427
9
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
983,155
346,245
Amount due from parent undertaking
2,888,746
3,190,931
Connected parties (note 20)
7,349,526
6,679,435
Other debtors
1,120,250
320,764
Prepayments and accrued income
11,491
3,945
12,353,168
10,541,320
10
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans and overdrafts
48,442
208,295
Obligations under finance leases
21,063
6,000
Trade creditors
4,472,245
242,610
Amounts owed to group undertakings (note 20)
11,067,368
10,560,518
Corporation tax
223,010
9,068
Other taxation and social security
61,727
74,024
Connected parties (note 20)
3,221,059
5,124,306
Other creditors
91
369
Accruals and deferred income
51,161
93,628
19,166,166
16,318,818
11
Creditors: amounts falling due after more than one year
2021
2020
£
£
Obligations under finance leases
50,536
1,500
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 2021
- 17 -
12
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
2021
2020
Balances:
£
£
Accelerated capital allowances
29,782
7,121
2021
Movements in the year:
£
Liability at 1 October 2020
7,121
Charge to profit or loss
22,661
Liability at 30 September 2021
29,782
13
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
20,569
137,294
The company operates
two
defined contribution pension scheme
s. The assets of the schemes are held separately from those of the company in independently administered funds.
14
Called up share capital
2021
2020
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
15
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:
2021
2020
£
£
196,027
226,027
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 18 -
16
Cash generated from operations
2021
2020
£
£
Profit for the year after tax
1,147,172
248,715
Adjustments for:
Taxation charged
245,671
61,072
Finance costs
4,581
10,985
Investment income
(16,582)
(1,720)
Gain on disposal of tangible fixed assets
(75,250)
(13,188)
Depreciation and impairment of tangible fixed assets
62,262
61,808
Movements in working capital:
(Increase)/decrease in stocks
(6,722,658)
437,443
(Increase) in debtors
(1,036,622)
(426,776)
Increase in creditors
2,002,970
5,436,857
Cash (absorbed by)/generated from operations
(4,388,456)
5,815,196
17
Analysis of changes in net funds
1 October 2020
Cash flows
30 September 2021
£
£
£
Cash at bank and in hand
6,567,115
(4,591,018)
1,976,097
Bank overdrafts
(48,442)
(48,442)
6,567,115
(4,639,460)
1,927,655
Borrowings excluding overdrafts
(208,295)
208,295
-
Obligations under finance leases
(7,500)
(64,099)
(71,599)
6,351,320
(4,495,264)
1,856,056
18
Events after the reporting date
See 'Post reporting date events' section included in the Directors' Report.
19
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 2021
- 19 -
20
Related party transactions
Debtors - amounts due from connected parties
(note9)
Gilmore Teague Limited: £1,189,521 (2020:£6,679,435) both Shane David Teague and Daniel John Teague are the only directors and shareholders.
Mining Teague Limited: £250,343 (2020:£Nil) both Shane David Teague and Daniel John Teague are the only directors and shareholders.
S1West Ltd: £531,649 (2020:£Nil) both Shane David Teague and Daniel John Teague are the only directors and shareholders.
Tynecastle Teague Limited: £5,378,013 (2020:£Nil) both Shane David Teague and Daniel John Teague are the only directors and shareholders.
Creditors - amounts due to group undertakings & connected parties
(note10)
Lincam Pentland Limited: £11,067,368 (2020:
£
10,560,518).
Lincam Pentland Limited is a fellow subsidiary
and
is controlled by both Shane David Teague and Daniel John Teague.
Olimews Limited:
£3,2
21
,
059
(20
20
: £3,
259
,
655
)
both Shane David Teague and Daniel John Teague are the only directors and shareholders.
Carlindean Developments Limited:
£
Nil
(20
20
: £1,864,651)
both Shane David Teague and Daniel John Teague are the only directors and shareholders of this company, which is currently in Members Voluntary Liquidation.
2021-09-30
2020-10-01
false
CCH Software
CCH Accounts Production 2022.100
Shane David Teague
Daniel John Teague
Daniel John Teague
6378284
2020-10-01
2021-09-30
6378284
bus:Director1
2020-10-01
2021-09-30
6378284
bus:CompanySecretaryDirector1
2020-10-01
2021-09-30
6378284
bus:CompanySecretary1
2020-10-01
2021-09-30
6378284
bus:Director2
2020-10-01
2021-09-30
6378284
bus:RegisteredOffice
2020-10-01
2021-09-30
6378284
bus:Agent1
2020-10-01
2021-09-30
6378284
2021-09-30
6378284
2019-10-01
2020-09-30
6378284
core:RetainedEarningsAccumulatedLosses
2020-09-30
6378284
core:RetainedEarningsAccumulatedLosses
2019-09-30
6378284
core:RetainedEarningsAccumulatedLosses
2021-09-30
6378284
core:RetainedEarningsAccumulatedLosses
2020-09-30
6378284
core:ShareCapital
2021-09-30
6378284
core:ShareCapital
2020-09-30
6378284
2020-09-30
6378284
core:OtherPropertyPlantEquipment
2021-09-30
6378284
core:OtherPropertyPlantEquipment
2020-09-30
6378284
core:CurrentFinancialInstruments
2021-09-30
6378284
core:CurrentFinancialInstruments
2020-09-30
6378284
core:Non-currentFinancialInstruments
2021-09-30
6378284
core:Non-currentFinancialInstruments
2020-09-30
6378284
1
2020-10-01
2021-09-30
6378284
1
2019-10-01
2020-09-30
6378284
2020-09-30
6378284
2019-09-30
6378284
core:WithinOneYear
2021-09-30
6378284
core:WithinOneYear
2020-09-30
6378284
core:PlantMachinery
2020-10-01
2021-09-30
6378284
core:FurnitureFittings
2020-10-01
2021-09-30
6378284
core:MotorVehicles
2020-10-01
2021-09-30
6378284
core:UKTax
2020-10-01
2021-09-30
6378284
core:UKTax
2019-10-01
2020-09-30
6378284
2
2020-10-01
2021-09-30
6378284
2
2019-10-01
2020-09-30
6378284
3
2020-10-01
2021-09-30
6378284
3
2019-10-01
2020-09-30
6378284
4
2020-10-01
2021-09-30
6378284
4
2019-10-01
2020-09-30
6378284
core:OtherPropertyPlantEquipment
2020-09-30
6378284
core:OtherPropertyPlantEquipment
2020-10-01
2021-09-30
6378284
bus:OrdinaryShareClass1
2020-10-01
2021-09-30
6378284
bus:OrdinaryShareClass1
2021-09-30
6378284
bus:PrivateLimitedCompanyLtd
2020-10-01
2021-09-30
6378284
bus:FRS102
2020-10-01
2021-09-30
6378284
bus:Audited
2020-10-01
2021-09-30
6378284
bus:FullAccounts
2020-10-01
2021-09-30
xbrli:pure
xbrli:shares
iso4217:GBP