Company Registration No. 6378284 (England and Wales)
S1 DEVELOPMENTS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
PAGES FOR FILING WITH REGISTRAR
S1 DEVELOPMENTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Balance sheet
3
Statement of cash flows
4
Notes to the financial statements
5 - 11
S1 DEVELOPMENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 1 -
The directors present the strategic report for the year ended 30 September 2020.
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 won Apartment Development of the Year. We were also finalists in the Renovation of the Year award for the development in Archer House, Gullane.
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
(vii) current economic climate
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
which shows that we recognise the needs of the property market in Edinburgh.
S1 DEVELOPMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 2 -
Development and performance
We were responsible for the design and build of a site in Gullane, East Lothian named Archer House. It was acquired in May 2018 with planning permission to convert a commercial building into eight apartments all of which were completed and sold in the previous financial 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. Due to the project's size and the ongoing pandemic we have currently decided not to develop the site and will review our position in the next few months.
During the previous financial 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 six residential units with expected completion in the next accounting year.
In the current year, Gilmore Teague Limited (a company in which Shane David Teague and Daniel John Teague are the only directors and shareholders) acquired Gilmore Place, an old convent, which will be converted into student accommodation consisting of 230 units with expected completion in September 2022.
Finally, the company is responsible for the build of phase six at 'The Ropeworks' also in Leith, Edinburgh which will comprise of 22 townhouses with expected completion date in 2021.
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
16 April 2021
S1 DEVELOPMENTS LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2020
30 September 2020
- 3 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
3
67,451
142,868
Current assets
Stocks
4
6,954,427
7,391,870
Debtors
5
10,541,320
10,109,056
Cash at bank and in hand
6,567,115
915,414
24,062,862
18,416,340
Creditors: amounts falling due within one year
6
(16,318,818)
(10,981,592)
Net current assets
7,744,044
7,434,748
Total assets less current liabilities
7,811,495
7,577,616
Creditors: amounts falling due after more than one year
7
(1,500)
(7,500)
Provisions for liabilities
Deferred tax liability
8
(7,121)
(15,957)
Net assets
7,802,874
7,554,159
Capital and reserves
Called up share capital
10
100
100
Profit and loss reserves
7,802,774
7,554,059
Total equity
7,802,874
7,554,159
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.
The financial statements were approved by the board of directors and authorised for issue on 16 April 2021 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 2020
- 4 -
2020
2019
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
13
5,815,196
1,324,836
Interest paid
(10,985)
(3,200)
Income taxes paid
(364,157)
(79,014)
Net cash inflow from operating activities
5,440,054
1,242,622
Investing activities
Purchase of tangible fixed assets
(20,823)
(90,126)
Proceeds on disposal of tangible fixed assets
47,620
41,500
Interest received
1,720
4,589
Net cash generated from/(used in) investing activities
28,517
(44,037)
Financing activities
Increase of borrowings
-
(1,250,000)
Repayment of bank loans
204,916
2,120
Payment of finance leases obligations
(21,786)
(15,862)
Net cash generated from/(used in) financing activities
183,130
(1,263,742)
Net increase/(decrease) in cash and cash equivalents
5,651,701
(65,157)
Cash and cash equivalents at beginning of year
915,414
980,571
Cash and cash equivalents at end of year
6,567,115
915,414
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 5 -
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
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.
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.
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 6 -
1.5
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.
1.6
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.
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.
1.8
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 2020
1
Accounting policies
(Continued)
- 7 -
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 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.
1.12
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
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
25
28
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 8 -
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 October 2019
506,576
Additions
20,823
Disposals
(91,804)
At 30 September 2020
435,595
Depreciation and impairment
At 1 October 2019
363,708
Depreciation charged in the year
61,808
Eliminated in respect of disposals
(57,372)
At 30 September 2020
368,144
Carrying amount
At 30 September 2020
67,451
At 30 September 2019
142,868
4
Stocks
2020
2019
£
£
Site costs
3,204,950
3,204,950
Work in progress
3,749,477
4,186,920
6,954,427
7,391,870
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
346,245
69,815
Corporation tax recoverable
-
5
Amount due from parent undertaking
3,190,931
2,550,310
Amounts due from fellow group undertakings(note 17)
-
343
Connected parties (note 17)
6,679,435
7,123,786
Other debtors
320,764
89,207
Prepayments and accrued income
3,945
275,590
10,541,320
10,109,056
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 9 -
6
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans
208,295
3,379
Obligations under finance leases
6,000
21,786
Trade creditors
242,610
394,427
Amounts owed to group undertakings
10,560,518
5,034,339
Corporation tax
9,068
303,322
Other taxation and social security
74,024
76,771
Connected parties (note 17)
5,124,306
5,124,306
Other creditors
369
-
Accruals and deferred income
93,628
23,262
16,318,818
10,981,592
7
Creditors: amounts falling due after more than one year
2020
2019
£
£
Obligations under finance leases
1,500
7,500
Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.
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
2020
2019
Balances:
£
£
Accelerated capital allowances
7,121
15,957
9
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
137,294
172,585
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.
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 10 -
10
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
11
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.
12
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:
2020
2019
£
£
226,027
256,027
13
Cash generated from operations
2020
2019
£
£
Profit for the year after tax
248,715
1,293,058
Adjustments for:
Taxation charged
61,072
304,395
Finance costs
10,985
3,200
Investment income
(1,720)
(4,589)
Gain on disposal of tangible fixed assets
(13,188)
(25,016)
Depreciation and impairment of tangible fixed assets
61,808
72,325
Movements in working capital:
Decrease/(increase) in stocks
437,443
(2,456,743)
(Increase) in debtors
(426,776)
(2,930,693)
Increase in creditors
5,436,857
5,068,899
Cash generated from operations
5,815,196
1,324,836
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 11 -
14
Events after the reporting date
See 'Post reporting date events' section included in the Directors' Report.
15
Analysis of changes in net funds
1 October 2019
Cash flows
30 September 2020
£
£
£
Cash at bank and in hand
915,414
5,651,701
6,567,115
Borrowings excluding overdrafts
(3,379)
(204,916)
(208,295)
Obligations under finance leases
(29,286)
21,786
(7,500)
882,749
5,468,571
6,351,320
16
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.
17
Related party transactions
Included in debtors-connected parties
(note5)
there is an amount of £6,679,435 (2019:£6,434,642) due from Gilmore Teague Limited, a company in which both Shane David Teague and Daniel John Teague are the only directors and shareholders.
Also included in debtors-connected parties
(note5)
there is an amount of Nil (2019:£689,144) due from Teague Homes (UK) Limited , a company in which both Shane David Teague and Daniel John Teague are directors.
In this year's accounts
,
the company owes
£10,560,518 (2019:
£5,034,339
)
to Lincam Pentland Limited
(note6)
.
Lincam Pentland Limited is a fellow subsidiary
and
is controlled by both Shane David Teague and Daniel John Teague.
Included in
creditors-connected parties
(note6) there is £3,259,655 (201
9
: £3,
259
,
655
) owed from S1 Developments Limited to Oilmews Limited.
In addition, in
creditors-connected parties
(note6) there is an amount of £1,864,651 (201
9
: £1,864,651) owed to Carlindean Developments (Scotland) Limited. These companies are also controlled by the directors, Shane and Daniel Teague.
2020-09-30
2019-10-01
false
16 April 2021
CCH Software
CCH Accounts Production 2020.310
No description of principal activity
This audit opinion is unqualified
Daniel John Teague
Shane David Teague
Daniel John Teague
Daniel John Teague
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