Company registration number 09265971 (England and Wales)
JAMES TAYLOR HOMES (LINCOLNS INN) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
PAGES FOR FILING WITH REGISTRAR
JAMES TAYLOR HOMES (LINCOLNS INN) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
JAMES TAYLOR HOMES (LINCOLNS INN) LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
3
1
1
Current assets
Stocks
4
7,200,000
10,250,000
Debtors
5
426,091
460,397
Cash at bank and in hand
3,946
17,024
7,630,037
10,727,421
Creditors: amounts falling due within one year
6
(5,391,130)
(5,229,789)
Net current assets
2,238,907
5,497,632
Total assets less current liabilities
2,238,908
5,497,633
Creditors: amounts falling due after more than one year
7
(4,461,186)
(7,442,500)
Net liabilities
(2,222,278)
(1,944,867)
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
(2,222,279)
(1,944,868)
Total equity
(2,222,278)
(1,944,867)
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 31 July 2024 and are signed on its behalf by:
M Coath
Director
Company Registration No. 09265971
JAMES TAYLOR HOMES (LINCOLNS INN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
1
Accounting policies
1.1
Company information
James Taylor Homes (Lincolns Inn) Limited is a private company limited by shares incorporated in England and Wales. The registered office is James Taylor House, St. Albans Road East, Hatfield, Hertfordshire, United Kingdom, AL10 0HE.
1.2
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. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
1.3
Going concern
The financial statements have been prepared on the going concern basis, notwithstanding net liabilities of £2,223,278 (2022: £1,944,867 ), which the directors believe to be appropriate for the following reasons.
The directors believe that the company has adequate resources to continue in operational existence for the foreseeable future including support from the group that the company is a part of.
The company therefore continues to adopt the going concern basis in preparing its financial statements. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern.
1.4
Turnover
Turnover is measured at the fair value of the consideration received or receivable from the sale of developed property and other related income. Turnover from property sales is recognised at the date of exchange.
Rental income is recognised on a straight-line basis over the rental term.
1.5
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
JAMES TAYLOR HOMES (LINCOLNS INN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 3 -
1.6
Stocks
Stocks represents property acquired for development together with work in progress on those properties. The resultant stock and work in progress is valued at the lower of cost or net realisable value. Cost comprises the acquisition cost of the land and buildings, together with related legal and professional costs, development and borrowing costs.
In considering net realisable value, it is assumed that developments will be completed and sold in the ordinary course of business and not placed on the market for immediate sale in their current state of development.
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.
1.7
Cash and cash equivalents
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.
1.8
Trade and other debtors
Trade and other debtors are measured at transaction price less any impairment unless the arrangement constitutes a financing transaction in which case the transaction is measured at the present value of the future receipts discounted at the prevailing market rate of interest. Loans are initially measured at fair value and are subsequently measured at amortised cost using the effective interest method less any impairment.
1.9
Trade and other creditors
Trade and other creditors are measured at their transaction price unless the arrangement constitutes a financing transaction in which case the transaction is measured at present value of future payments discounted at prevailing market rate of interest. Other financial liabilities are initially measured at fair value net of their transaction costs. They are subsequently measured at amortised cost using the effective interest method.
1.10
Taxation
Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using tax rates that have been enacted or substantively enacted by the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against future taxable profits or against the reversal of deferred tax liabilities.
Deferred tax is calculated using tax rates that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
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 leases asset are consumed.
JAMES TAYLOR HOMES (LINCOLNS INN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -
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.
The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.
Profit recognition
Stock consists of the acquisition cost of the land and buildings, together with related legal and professional costs, development and borrowing costs which is recorded as incurred during a project. An apportionment of stock is transferred to the profit and loss account when properties are sold on a project. The proportion of stock transferred is calculated so as to achieve a consistent margin across each individual project and is reliant on management's estimation of the total selling price. Estimation of the selling price is subject to significant inherent uncertainties, in particular the prediction of future trends in the value of property.
Whilst the Directors exercise due care and attention to make reasonable estimates, taking into account all available information in estimating the future selling price, the estimates may differ from the actual selling prices achieved in future periods.
With the exception of the estimate described above, the directors consider that there are no other significant judgements or estimates in preparation of these financial statements.
3
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
1
1
4
Stocks
2023
2022
£
£
Stocks
7,200,000
10,250,000
During the year finance costs released to cost of sales £907,561 (2022: £nil). At the year end the remaining capitalised finance costs included within stock totalled £2,538,128 (2022: £3,445,689).
JAMES TAYLOR HOMES (LINCOLNS INN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 5 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
28,265
58,340
Amounts owed by group undertakings
136,000
136,000
Other debtors
261,826
266,057
426,091
460,397
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
3,960
30,773
Amounts owed to group undertakings
5,369,835
5,180,926
Taxation and social security
12,693
12,244
Other creditors
4,642
5,846
5,391,130
5,229,789
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
4,461,186
7,442,500
8
Loans and overdrafts
2023
2022
£
£
Bank loans
4,461,186
7,442,500
Payable after one year
4,461,186
7,442,500
The bank loan of £4,461,186 is secured by a first legal mortgage over property owned by the company, an assignment of rental income paid in respect of the property, a guarantee from James Taylor Construction Limited (a company in which under common control) to the sum of £3,721,250 plus interest and costs, and a security deposit held by the bank in the sum of £231,706. There is also a negative pledge.
9
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.
JAMES TAYLOR HOMES (LINCOLNS INN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
9
Audit report information
(Continued)
- 6 -
Senior Statutory Auditor:
Gary Tamkin
Statutory Auditor:
Azets Audit Services
10
Related party disclosures
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
11
Ultimate parent company
The directors regard James Taylor Homes Group Limited as the ultimate parent company. The registered office of the ultimate parent company is James Taylor House, St Albans Road East, Hatfield, Hertfordshire, AL10 0HE . The largest group of undertakings for which group financial statements have been drawn up is that headed by James Taylor Homes Group Limited. Copies of the group financial statements may be obtained from Companies House.