Company Registration No. SC101842 (Scotland)
DJ Laing Homes Limited
financial statements
for the year ended 31 May 2023
Pages for filing with Registrar
DJ Laing Homes Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 10
DJ Laing Homes Limited
Balance sheet
as at 31 May 2023
31 May 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
417,323
484,509
Investment properties
4
805,000
795,000
1,222,323
1,279,509
Current assets
Stocks
4,878,019
4,733,800
Debtors
5
64,580
234,042
Cash at bank and in hand
3,213,933
2,910,681
8,156,532
7,878,523
Creditors: amounts falling due within one year
6
(2,356,322)
(2,230,453)
Net current assets
5,800,210
5,648,070
Total assets less current liabilities
7,022,533
6,927,579
Creditors: amounts falling due after more than one year
7
(8,617)
Provisions for liabilities
(31,352)
(40,188)
Net assets
6,991,181
6,878,774
Capital and reserves
Called up share capital
8
20,000
20,000
Revaluation reserve
9
20,000
Profit and loss reserves
6,951,181
6,858,774
Total equity
6,991,181
6,878,774
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 12 February 2024 and are signed on its behalf by:
KA Nicoll
Director
Company Registration No. SC101842
DJ Laing Homes Limited
Notes to the financial statements
for the year ended 31 May 2023
- 2 -
1
Accounting policies
Company information
DJ Laing Homes Limited is a private company limited by shares incorporated in Scotland. The registered office is Laing House, Panmure Industrial Estate, Carnoustie, Angus, DD7 7NP.
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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
The financial statements of the company are consolidated in the financial statements of DJ Laing Group Limited. These consolidated financial statements are available from its registered office, Laing House, Panmure Industrial Estate, Carnoustie, DD7 7NP.
1.2
Going concern
The financial statements have been prepared on a going concern basis. The directors have considered relevant information, including the financial projections, forecast future cash flows and the impact of subsequent events in making their assessment. The directors have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios. This analysis also considers the effectiveness of available measures to assist in mitigating the impact. true
Based on these assessments and having regard to the resources available to the company, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from house sales is recognised by reference to the date of sale which is taken as the date a house is substantially complete following signing of missives. Further details on the accounting for these house sales is contained in note 1.8 below.
DJ Laing Homes Limited
Notes to the financial statements (continued)
for the year ended 31 May 2023
1
Accounting policies (continued)
- 3 -
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Freehold buildings
2.5% straight line (0% on land)
Plant and machinery
12.5% - 25% straight line
Fixtures, fittings & equipment
12.5% - 20% straight line
Computer equipment
25% straight line
Motor vehicles
25% straight line and 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
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
DJ Laing Homes Limited
Notes to the financial statements (continued)
for the year ended 31 May 2023
1
Accounting policies (continued)
- 4 -
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.
1.8
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.9
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
DJ Laing Homes Limited
Notes to the financial statements (continued)
for the year ended 31 May 2023
1
Accounting policies (continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.11
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.
1.12
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 tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
DJ Laing Homes Limited
Notes to the financial statements (continued)
for the year ended 31 May 2023
1
Accounting policies (continued)
- 6 -
1.13
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
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.
1.14
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.15
Government grants
Grants in respect of capital expenditure are credited to the profit and loss account over the estimated useful life of the assets to which they relate. Grants received in respect of revenue expenditure are matched against related costs in the period in which these costs occur.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
DJ Laing Homes Limited
Notes to the financial statements (continued)
for the year ended 31 May 2023
- 7 -
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 June 2022
1,298,508
400,554
1,699,062
Additions
2,500
2,500
Disposals
(9,853)
(9,853)
At 31 May 2023
1,298,508
393,201
1,691,709
Depreciation and impairment
At 1 June 2022
930,057
284,496
1,214,553
Depreciation charged in the year
42,887
26,799
69,686
Eliminated in respect of disposals
(9,853)
(9,853)
At 31 May 2023
972,944
301,442
1,274,386
Carrying amount
At 31 May 2023
325,564
91,759
417,323
At 31 May 2022
368,451
116,058
484,509
Land and buildings includes non-depreciable land amounting to £50,000 (2022 - £50,000).
4
Investment property
2023
£
Fair value
At 1 June 2022
795,000
Revaluations
10,000
At 31 May 2023
805,000
Investment property comprises a range of commercial and residential properties which are available to rent. Investment properties were initially recorded at cost and are subsequently reviewed at each financial year end to ensure the carrying value is appropriate. Based on their experience, rental yields and prevailing market conditions, it is the view of the directors that the carrying value above, following the revaluation adjustment, represents the open market value at 31 May 2023.
DJ Laing Homes Limited
Notes to the financial statements (continued)
for the year ended 31 May 2023
- 8 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
37,663
44,378
Corporation tax recoverable
5,707
Amounts owed by group undertakings
164,458
Other debtors
21,210
9,564
64,580
218,400
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset
15,642
Total debtors
64,580
234,042
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
294,516
168,984
Amounts owed to group undertakings
194,050
Corporation tax
63,875
Other creditors
1,867,756
1,997,594
2,356,322
2,230,453
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
8,617
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
20,000
20,000
20,000
20,000
Each ordinary share carries one vote and is entitled to participate pari passu with other ordinary shares in any dividend or capital distribution.
DJ Laing Homes Limited
Notes to the financial statements (continued)
for the year ended 31 May 2023
- 9 -
9
Revaluation reserve
The revaluation reserve represents the revaluation of investment properties less any associated deferred tax charge and are not distributable to shareholders.
10
Profit and loss reserve
Profit and loss reserves include all current and prior period retained profits and losses.
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 Blair Davidson and the auditor was Henderson Loggie LLP.
12
Financial commitments, guarantees and contingent liabilities
The company has given an unlimited inter-company cross guarantee to The Royal Bank of Scotland plc which incorporates a right of set-off between DJ Laing Group Limited, DJ Laing (Contracts) Limited, DJ Laing Homes Limited and DJ Laing Recycling Solutions Limited.
At 31 May 2023 the guarantee amounts to £Nil (2021 - £Nil).
The company has securities over development land at Pitskelly Farm and Aberlady Crescent, Dundee. Both of these securities remain outstanding at the year end.
13
Operating lease commitments
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2023
2022
£
£
48,292
40,826
DJ Laing Homes Limited
Notes to the financial statements (continued)
for the year ended 31 May 2023
- 10 -
14
Directors' transactions
Interest free loans have been granted by the directors to the company as follows:
Description
%
Opening
Amounts repaid
Closing
Rate
balance
balance
£
£
£
Director 1 Loan Account
-
190,613
(31,363)
159,250
Director 2 Loan Account
-
254,006
(29,840)
224,166
444,619
(61,203)
383,416
15
Parent company
The ultimate holding company is DJ Laing Group Limited, a company incorporated in Great Britain and registered in Scotland. The company is owned and controlled by DJ Laing and DSW Laing.