Registered number:
FOR THE YEAR ENDED 31 MARCH 2022
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STEF & PHILIPS (LONDON) LIMITED
COMPANY INFORMATION
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STEF & PHILIPS (LONDON) LIMITED
CONTENTS
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STEF & PHILIPS (LONDON) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2022
The directors present their strategic report for the year ended 31 March 2022.
The year proved to be more challenging than was originally expected. We were confronted with serious disruption from COVID-19. In itself, this was difficult, as we had over 250 properties under construction and felt the full force of the construction guide lines, coupled with the shortage of materials caused us to deliver some of these properties after the scheduled delivery date. Stef & Philips Limited, a connected company, to whom this company provides completed refurbished rental properties, was obliged to pay the rent during these periods of late delivery, as they were contracted by leases in place. There was an agreement with one major client to reschedule delivery dates to bring the construction phase back in line with the new reality. Due to the delays in being able to deliver the completed properties to that company, we had to compensate them for the rent and the associated cost for this restructuring is reflected in the accounts.
The Company managed the purchases and distribution of materials for the houses being refurbished and built; we were faced with increase in most material costs. During this period we also faced the construction social distancing guidelines that meant we could not have the required trades on site at any one time. All transactions are in sterling, so the Company is not exposed to any currency risks. Our client profile is spread across a broad number of investors who are investing in the rental market. Building contracts are entered into on the basis of current pricing, and the Company is not exposed to any realistic risk on fluctuation of costs, as the contracts are only agreed in the week prior to construction commencing, so mitigating any pre-commencement fluctuations. We can report that all projects that were previously subject to delays are now complete and the Company is meeting all its development commitments. We have signed significant contracts with new clients. The timely delivery of these properties clearly supports the difficult decisions the company needed to make and will lead to a robust performance based on sound decisions taken in this year, in so much that we expect to break even in 2023 and make significant profits in 2024.
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STEF & PHILIPS (LONDON) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
The company's principal financial instruments comprise cash, short term deposits and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to fund the company's operations as well as to manage working capital, liquidity and invest surplus cash.
The directors continue to assess the risks facing the company. Both the securing of new business and maintain existing relationships are key to the company's success. Other ongoing challenges are overhead cost control which are kept under regular review by the directors. The most significant risks identified are as followed: Housing market - The demand for UK housing market opportunities continues to grow and the directors continue to assess the current and future conditions. Economic uncertainties - UK economic conditions may adversely impact on our financial performance. Financial risks are addressed in the directors' report. COVID-19: The Covid-19 pandemic created significant uncertainty for the UK and the international economy. The directors are constantly the ongoing situation and the impact on the business. Whilst the eventual impact of the disruption is uncertain at this stage, the company is providing a vital service during the period, and the company has the continued financial and other support from the directors and shareholders so as to ensure that the company has the resources to ensure its commitments are met.
During the year, the Company has continued to perform well and the trading of the company has increased significantly due to continued high demand for rental properties. The Directors expect the position of the company to be maintained for the foreseeable future.
The company's key financial and other performance indicators during the year were as follows: 2022 2021 £ £ Turnover 43,600,546 19,979,583 Gross (loss)/profit 732,252 858,625 Operating (loss)/profit (5,642,442) 648,902 Net (liabilities)/assets (4,536,682) 921,840
This report was approved by the board on 17 August 2023 and signed on its behalf.
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STEF & PHILIPS (LONDON) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
The directors present their report and the financial statements for the year ended 31 March 2022.
The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;
∙make judgments 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 to 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.
The loss for the year, after taxation, amounted to £5,458,522 (2021 - profit £510,407).
The directors who served during the year were:
The company has a number of significant projects underway. We are providing portfolios of properties to new investors. The first of 35 houses are in construction for a new client. In addition, we are in discussions to deliver at least 5 properties per month to another client, with the first five underway. We continue to add to existing client’s portfolios as they come back into the market and enjoy the benefits of a growing need for social housing of the type we provide.
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STEF & PHILIPS (LONDON) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
There have been no significant events affecting the Company since the year end.
Following a rebranding exercise on 15 May 2023, the trading name of the Company's independent auditor
changed from MHA MacIntyre Hudson to MHA. A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting.
This report was approved by the board on
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STEF & PHILIPS (LONDON) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEF & PHILIPS (LONDON) LIMITED
We have audited the financial statements of Stef & Philips (London) Limited (the 'Company') for the year ended 31 March 2022, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, 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 Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
We draw attention to note 2.2 in the financial statements, which indicates that the company incurred a net loss of £5,458,522 during the year ended 31 March 2022 and, as of that date, the company's net liabilities of £4,536,682. As stated in note 2.2, these events or conditions, along with total matters as set forth within the same note, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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STEF & PHILIPS (LONDON) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEF & PHILIPS (LONDON) LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report 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.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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STEF & PHILIPS (LONDON) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEF & PHILIPS (LONDON) LIMITED (CONTINUED)
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 Auditors' 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:
-Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; -Evaluation of the effectiveness of managements controls designed to prevent and detect irregularities; and · -Identifying and testing significant manual journal entries and reviewing assumptions and judgements made by management in making significant accounting estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
The financial statements of Stef & Phillips (London) Limited for the year ended 31 March 2021 were unaudited.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
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STEF & PHILIPS (LONDON) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEF & PHILIPS (LONDON) LIMITED (CONTINUED)
for and on behalf of MHA, Statutory Auditor
London, United Kingdom Date:
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales
(registered number OC312313).
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STEF & PHILIPS (LONDON) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
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STEF & PHILIPS (LONDON) LIMITED
REGISTERED NUMBER: 07407110
BALANCE SHEET
AS AT 31 MARCH 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 13 to 23 form part of these financial statements.
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STEF & PHILIPS (LONDON) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
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STEF & PHILIPS (LONDON) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
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STEF & PHILIPS (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
The company is a private company limited by share capital, incorporated in England and Wales. The address of its registered office is: The Grange 100 High Street, London, N14 6BN.
The Company's functional and presentational currency is British pounds rounded to the nearest pound.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The financial statements in respect of year ended 31st March 2021 were unaudited.
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis despite the company incurring losses in the year of £5,458,522 and having net liabilities as at the year-end of £4,536,682. The net liabilities arise as a result of an amount of £4,301,795 due to Stef & Philips Limited which has mainly arisen as a result of a claim made for the non-delivery of projects by the due date. Both companies have agreed a payment plan relating to the debt and which the directors are confident will be achieved.
We have reviewed the company’s forecasts, current financial information, the projects currently in progress and in the pipeline and based upon this information, have concluded that the financial statements should continue to be prepared on a going concern basis. Furthermore, the company has obtained confirmation of financial support from directors, shareholders and company under common control for at least 12 months from the signing of these accounts. Therefore, in the opinion of the Directors, the company is able to pay its debts as and when they fall due for the foreseeable future. The Covid-19 pandemic created significant uncertainty for the UK and the international economy. Given that the pandemic is officially over and the continued financial support from shareholders of the company, the Directors consider minimal impact of any covid related issues in the future.
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STEF & PHILIPS (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
taxes. The following criteria must also be met before revenue is recognised: In respect of long term contracts and contracts for on-going services, turnover represents the value of work applicable to the activity in the year, ascertained by reference to the stage of completion. This turnover is matched with the applicable costs, resulting in the reporting of attributable profit proportionate to the contract activity. Where the outcome of a contract cannot be forseen with reasonable certainty but no loss is expected, turnover and costs are recorded as the activity progresses using a zero estimate of profit. Estimates of total contract costs and revenues are reviewed periodically and the cumulative effects of the changes are recognised in the period in which they are identified. All known or anticipated losses are provided for in full as soon as they are forseseen. All costs incurred are recorded as cost of sales. Revenue recognised in excess of amounts billed are classified as amounts recoverable on contracts and included in debtors, with the converse being dealt with as payments on account inlcuded in creditors. Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
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STEF & PHILIPS (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
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 profit or loss.
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STEF & PHILIPS (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
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STEF & PHILIPS (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
Turnover represents income from refurbishment of properties and arises all in the United Kingdom.
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STEF & PHILIPS (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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STEF & PHILIPS (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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STEF & PHILIPS (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
11.Taxation (continued)
From 1 April 2023 the main rate of corporation tax will increase from 19% to 25%.
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STEF & PHILIPS (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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STEF & PHILIPS (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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STEF & PHILIPS (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
There is no controlling party.
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