James Taylor Group 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.
The company has changed its accounting reference to 30 November 2023 to be consistent with the the year ends of other companies in the group. These financial statements therefore cover the period from 1 May 2022 to 30 November 2023. The prior year figures are for 12 months and therefore will not be comparable to the current reporting period as it is over 18 months.
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 Company has entered into guarantees for loans held by related parties as the borrower which have common directors with James Taylor Group Limited. In the event of a covenant breach the lender could choose to call on the guarantor for the repayment of the loan value should the borrower not be in a position to settle any amounts due.
The value of the guarantees provided on these loans exceeds the net asset value of the company, however these loans are primarily collateralised through charges on the properties either owned or developed by the borrower. Hence in most cases it is considered unlikely that the lender would need to call on the guarantee to settle amounts owed.
At the time of approving the financial statements there is uncertainty regarding one of the loans, as disclosed by the borrower which may make it possible for James Taylor Group Limited to be called on as guarantor to settle amounts outstanding per the terms of the loan, limited to the value of the guarantee. Based on the commercial relationship with the lender and other options regarding the loan the Directors do not consider it probable at this time that this guarantee will be called upon. As a result no adjustment in the financial statements has been recorded to reflect any liabilities.
However as a result of these set of circumstances, the directors acknowledge the existence of a material uncertainty which may cast significant doubt on the Company’s ability to continue as a going concern, should the company be called upon within the foreseeable future to repay the loan as the guarantor. Considering existing relationships with lenders, potential to refinance and forecasted future cash inflows the directors believe it remains appropriate to prepare the financial statements on a going concern basis. Further detail and disclosures related to this and have been included in Note 8, Contingent Liabilities. The financial statements do not include any adjustments in respect of these liabilities or from the basis of preparation being inappropriate.
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.
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 directors have assessed the potential impact of events that may require the company to commit funds to the settlement of loan agreements that the company is a guarantor of. The directors have disclosed contingent liabilities in line with the reporting requirements of FRS102.
The directors consider that there are no other significant judgments or estimates in the preparation of these financial statements.
The average monthly number of persons (including directors) employed by the company during the period was:
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.
Guarantees
The company acts as a guarantor for loans secured against development properties owned by related parties. The combined value of the guarantees is £13,091,250 plus any related interest and costs. The guarantees contain conditions, that the borrower is responsible for ensuring they are adhered to, covering the net asset levels of the company.
Contingent liability
At the reporting date there is a possibility the company may be called upon as guarantor to settle one of the loans taken out by a related party as the borrower. The development property that the loan is secured over is substantially complete and the estimated sales value is sufficient to settle the loan in full. Hence the likelihood of the guarantor being call upon is considered to be low. Sales of the apartments at the property have begun however the timing of the rate of sales completions is uncertain due to current market conditions.
There are a number of means the Directors may pursue with the lender to enable it to meet the liability when it falls due, these actions are being considered but could include the bulk sell of apartments at a larger discount, agree a change in the loan terms, refinance the debt with another lender, request an injection of capital from shareholders or request the guarantor to step in.
The directors consider the most likely event is that the borrower will be able to negotiation revised terms regarding the loan, as has been done before and therefore they will not need to call upon the guarantee given by James Taylor Group Limited. At the reporting date no revision in the terms of the loan had been agreed. If the lender did have to call on the guarantor, it is expected that James Taylor Group Limited would be fully reimbursed later on once more apartment sales have completed.
The directors therefore only consider it possible that James Taylor Group Limited may be called up as guarantor as a last resort. The financial effect is impracticable to estimate due to the uncertainty of the timing of completion on the apartment sales and therefore the balance of the outstanding loan is also uncertain because of the timing. The directors therefore consider it appropriate to disclose these circumstances as a contingent liability
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.
During the period, website development costs of £Nil (2022: £74,160) were paid to an entity where a close relative of one of the directors in considered to have a control.
During the period, rent receivable of £6,279 (2022: £Nil) was received from an entity where a close relative of one of the directors in considered to have a control. A debtor balance was outstanding at period end of £718 (2022: £Nil).
At the period end a debtor balance of £6,486,199 was outstanding (2022: £6,259,011) from companies under the same control. During the period management charges of £358,000 (2022: £100,000) were charged to those same companies.