Company registration number 10156226 (England and Wales)
YPP HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
YPP HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr A M Al-Nejaifi Al-Khaldi
Mr O Al-Najafi
Mr Z Al-Najafi
Secretary
Mr Z Al-Najafi
Company number
10156226
Registered office
6 Blenheim Terrace
Leeds
West Yorkshire
LS2 9HZ
Auditor
BDO LLP
Eden Building
Irwell Street
Salford
Manchester
M3 5EN
Business address
6 Blenheim Terrace
Leeds
West Yorkshire
LS2 9HZ
YPP HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Group profit and loss account
10
Group statement of financial position
11
Company statement of financial position
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 32
YPP HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Fair Review of the Business

The principal activity of the group is to provide consultancy, advisory services, finder and insurance arrangement fees in relation to residential properties management as well as property refurbishment.

 

Century Construction Limited/Infinity Construction Enterprise Limited

Infinity Construction Enterprise Ltd has successfully completed almost all outstanding projects during the year. Both Companies have achieved significant milestones and are currently focused on the opportunities that lie ahead. The management team remains committed and enthusiastic, ensuring that we maintain our financial strength. As we review the business, we are confident in our ability to secure further success in the coming years.

 

As many of our suppliers are long-term partners, we place a strong emphasis on maintaining effective communication. This commitment is essential to ensure the sustained growth of our business. Despite the current upward trend in supplier expenses and the costs associated with materials in the construction industry, we are diligently addressing these challenges.

 

Currently, our latest schemes involve the revitalization of town centres by creating luxury apartment accommodations. We are also focusing on converting redundant offices into residential buildings, contributing to urban development, and addressing the demand for housing.

 

Despite the absence of operations, Century Construction Limited has built the foundations for future operations should the need arise. Similarly, in the face of challenges, Infinity Construction Enterprise Limited remains resilient and well-positioned for success. Our dedication to robust financial and risk management strategies ensures that we continue to thrive in the ever-evolving construction industry. As we move forward, we remain optimistic about the future and look forward to seizing new opportunities for growth and innovation

 

YPP Lettings & Management Company Limited

The start of 2023 letting year was a successful one as the market demand was greater than the supply. During this period, the company successfully hit targets and broke new records. Three new and luxury accommodation buildings opened in Leeds city centre which were the pillars for a new era at YPP guided by its residents and new services provided. At the same time, we underwent an IT overhaul of all our systems in order to provide a better experience for our residents. As the year progressed, we achieved remarkable milestones, a testament to our continued growth and success. The dedication and diligence of our team have contributed to a successful year, demonstrating our commitment to excellence in the lettings industry.

 

Yorkshire Prosperity Limited

There have been multiple new income streams introduced such as consultancy and offshore advisory services as well as revenue generated from insurance arrangement, finder and planning on identified projects. The additional income streams have ensured we provide high-quality, client-centric services which remain at the core of the company’s strategy, ensuring sustainable revenue growth and long-term success.

 

Estates Management Services Limited

We currently manage a total of 48 commercial tenants/units, all of which are let at the date of this report and subject to legal completions to new tenants. The management of each property largely includes rent collection, service charge collection and tenant/property management. The number of properties under our management continues to grow year on year, with new locations constantly being sourced. This has allowed the management team of Estates Management Services Limited to remain enthused about the years ahead. The company currently finds itself in a very good position, having navigated itself and importantly, its tenants, through very challenging periods for the commercial sector.

Principal risks and uncertainties

The Group continues to face significant risks and uncertainties arising from various factors. Throughout the financial year, interest rate uncertainties by the Bank of England have intensified the cost of living, elevating the risk of a recession and affecting tenant rent payments. Concurrently, increased competition from new projects targeting returning students adds another layer of uncertainty. Management remains vigilant in monitoring these challenges, assessing their potential impact on the business, and has extensively reviewed the situation.

YPP HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Future developments

The directors expect to see continued growth in the foreseeable future, with particular emphasis on the increase in the number of rooms under management.

Key performance indicators

The review of turnover and profit margins are the group's key performance indicators. The turnover for the year ended 31st December 2023 was £66,159,987 (2022: £45,359,818). The operating profit margin for the year ended 31st December 2023 was 2.1% (2022: 6.3%).

 

Despite an increase in revenue, our operating profit margin has declined. This decline is primarily due to a combination of increased cost of sales in Yorkshire Prosperity Limited for new revenue streams introduced this year, which incurred higher costs compared to the previous year’s revenue streams that had minimal associated costs, and a significant rise in overhead costs across all group companies, particularly in wages and salaries, as the business expanded considerably in 2023.

Other performance indicators

In future periods the property refurbishment arm of the business will continue to operate fully from the subsidiaries Century Construction Limited and Infinity Construction Enterprise Limited. The other subsidiaries will focus on residential property management.

The report was approved by the board and signed on its behalf.

Mr Z Al-Najafi
Director
19 September 2024
YPP HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and the audited financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the group is to provide consultancy, advisory services, finder and insurance arrangement fees in relation to residential properties management as well as property refurbishment.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £591,849 (2022: £6,168,330). The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr A M Al-Nejaifi Al-Khaldi
Mr O Al-Najafi
Mr Z Al-Najafi
Charitable donations

The group made charitable donations of £nil (2022: £4,750) in the year.

Financial instruments
Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Financial risk management

The group's current policy concerning the payment of trade creditors is to:

 

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

General risks

The events after the year end have encompassed the effects of escalating inflation followed by interest rate hikes by the Bank of England. This scenario has given rise to a tightening of the cost of living and an elevated risk of recession. The surge in inflation has exerted pressure on customers and suppliers, who are already grappling with budget constraints due to cost inflation. Additionally, the construction industry has directly encountered disruptions in the availability and pricing of raw materials and finished goods, potentially causing disturbances throughout 2024. The heightened inflation has also translated into financial strains for tenants, compounding their challenges amidst increased costs. Moreover, the student housing sector has directly felt the impact on the availability and pricing of housing supplies and related services leading to possible disruptions in 2024.

YPP HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
General risks (continued)
Management maintains a vigilant stance in monitoring these challenges and their repercussions on the business and the Directors have extensively examined these impacts on the business considering the financial market's instability and have concluded that the associated risks are likely to have minimal influence on the company's operations.
Review of going concern

The company made a profit after tax for the year of £2,489,244 (2022: £4,489,614) and has net assets of £3,514,072 (2022: £1,616,677). The group made a profit after tax for the year of £3,950,885 (2022: £2,425,366) and has net assets of £6,850,817 (2022: £3,853,125). The directors therefore have no doubt over the company's ability to continue as a going concern for the foreseeable future. In coming to their conclusion, the Directors have considered the group's profit for the year and cash flow plans for the coming period.

The company has undertaken a going concern assessment considering the principal risks and current and projected financial position over the going concern period of 12 months from the date of sign-off. The Directors are therefore able to conclude that they have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the next 12 months and have accordingly prepared the financial statements on the going concern basis.
Auditor

The auditor, BDO LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the Group is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the Group is aware of that information.

On behalf of the board
Mr Z Al-Najafi
Director
19 September 2024
YPP HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible for preparing 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law. 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 or of the company for that period.

 

In preparing these financial statements, the directors are required to:

 

 

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 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.

YPP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF YPP HOLDINGS LIMITED
- 6 -
Opinion

In our opinion the financial statements:

 

 

We have audited the financial statements of YPP Holdings Limited (“the Parent Company”) and its subsidiaries (“the Group”) for the year ended 31 December 2023 which comprise Group statement of comprehensive income, Group statement of financial position, Company statement of financial position, Group statement of changes in equity, Company statement of changes in equity, Group statement of cash flows and notes to the financial statements, including material accounting policy information. 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).

Basis for opinion

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 Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

 

Independence

 

We are independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

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.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group or Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.

Other information

The Directors are responsible for the other information. The other information comprises the information included in the Report of the Board, other than the financial statements and our auditor’s report thereon. 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.

YPP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF YPP HOLDINGS LIMITED
- 7 -

Other Companies Act 2006 reporting

In our opinion, based on the work undertaken in the course of our audit:

 

 

In the light of the knowledge and understanding of the Group and Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic report or the Directors’ report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the Responsibilities of Directors, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the Directors are responsible for assessing the Group’s and the Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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 auditor’s 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.

 

Extent to which the audit was capable of detecting irregularities, including fraud

 

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:

 

Non-compliance with laws and regulations

 

Based on:

 

We considered the significant laws and regulations to be the applicable accounting framework and UK tax legislation.

YPP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF YPP HOLDINGS LIMITED
- 8 -

Auditor’s responsibilities for the audit of the financial statements (continued)

 

The Group is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be the health and safety legislation and the data protection act.

 

Our procedures in respect of the above included:

 

Fraud

 

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

 

 

Based on our risk assessment, we considered the areas most susceptible to fraud to be journals and revenue.

 

Our procedures in respect of the above included:

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

YPP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF YPP HOLDINGS LIMITED
- 9 -

Use of our report

This report is made solely to the Parent 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 Parent Company’s members those matters we are required to state to them in an auditor’s 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 Parent Company and the Parent Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Hamid Ghafoor (Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
Manchester, UK
Date:
19 September 2024
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
YPP HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
as restated - note 1.2
Notes
£
£
Turnover
3
66,159,987
45,359,818
Cost of sales
(59,568,895)
(38,287,401)
Gross profit
6,591,092
7,072,417
Administrative expenses
(5,324,280)
(4,219,245)
Other operating income
130,200
970
Operating profit
4
1,397,012
2,854,142
Interest receivable and similar income
8
378,998
44,239
Interest payable and similar expenses
9
(3,681)
(1,314)
Profit on disposal of investments
24
2,587,344
-
Profit before taxation
4,359,673
2,897,067
Tax on profit
10
(408,788)
(471,701)
Profit for the financial year
3,950,885
2,425,366
Profit for the financial year is attributable to:
- Owners of the parent company
4,015,389
2,425,366
- Non-controlling interests
(64,504)
-
3,950,885
2,425,366
Total comprehensive income for the year is attributable to:
- Owners of the parent company
4,015,389
2,425,366
- Non-controlling interests
(64,504)
-
3,950,885
2,425,366

The notes on pages 16 to 32 form part of these financial statements.

YPP HOLDINGS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Non-current assets
Tangible assets
12
23,565
9,977
Current assets
Debtors falling due after more than one year
15
5,745,413
2,531,788
Debtors falling due within one year
15
11,851,899
12,583,789
Investments
16
-
0
3,000,000
Cash at banks and in hand
17
10,748,487
15,994,975
28,345,799
34,110,552
Creditors: amounts falling due within one year
18
(21,518,547)
(30,242,161)
Net current assets
6,827,252
3,868,391
Total assets less current liabilities
6,850,817
3,878,368
Creditors: amounts falling due after more than one year
19
-
(25,243)
Net assets
6,850,817
3,853,125
Capital and reserves
Called up share capital
23
50,008
50,008
Profit and loss reserves
7,226,657
3,803,117
Equity attributable to owners of the parent company
7,276,665
3,853,125
Non-controlling interests
(425,848)
-
6,850,817
3,853,125

The notes on pages 16 to 32 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 19 September 2024 and are signed on its behalf by:
19 September 2024
Mr Z Al-Najafi
Director
Company Registration No. 10156226
YPP HOLDINGS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
32,361
53,201
Current assets
Debtors
15
3,508,471
3,509,396
Cash at banks
45,972
4,263
3,554,443
3,513,659
Creditors: amounts falling due within one year
18
(72,732)
(1,950,183)
Net current assets
3,481,711
1,563,476
Net assets
3,514,072
1,616,677
Capital and reserves
Called up share capital
23
50,008
50,008
Profit and loss reserves
3,464,064
1,566,669
Total equity
3,514,072
1,616,677

The notes on pages 16 to 32 form part of these financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,489,244 (2022: £4,489,614).

These financial statements have been prepared 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 19 September 2024 and are signed on its behalf by:
19 September 2024
Mr Z Al-Najafi
Director
Company Registration No. 10156226
YPP HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
50,008
7,546,081
7,596,089
-
7,596,089
Year ended 31 December 2022:
Profit and total comprehensive income
-
2,425,366
2,425,366
-
2,425,366
Dividends
11
-
(6,168,330)
(6,168,330)
-
(6,168,330)
Balance at 31 December 2022
50,008
3,803,117
3,853,125
-
0
3,853,125
Year ended 31 December 2023:
Profit and total comprehensive income
-
4,015,389
4,015,389
(64,504)
3,950,885
Dividends
11
-
(591,849)
(591,849)
-
(591,849)
Non-controlling interest arising on business combination
24
-
-
-
(361,344)
(361,344)
Balance at 31 December 2023
50,008
7,226,657
7,276,665
(425,848)
6,850,817

The notes on pages 16 to 32 form part of these financial statements.

YPP HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
50,008
3,245,385
3,295,393
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
4,489,614
4,489,614
Dividends
11
-
(6,168,330)
(6,168,330)
Balance at 31 December 2022
50,008
1,566,669
1,616,677
Year ended 31 December 2023:
Profit and total comprehensive income
-
2,489,244
2,489,244
Dividends
11
-
(591,849)
(591,849)
Balance at 31 December 2023
50,008
3,464,064
3,514,072

The notes on pages 16 to 32 form part of these financial statements.

YPP HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (used in)/generated from operations
28
(5,723,476)
4,220,745
Income taxes paid
(471,701)
(826,390)
Income taxes recovered
106,390
-
Net cash (outflow)/inflow from operating activities
(6,088,787)
3,394,355
Investing activities
Net cash inflow from sale of subsidiaries
47,861
-
Purchase of tangible fixed assets
(21,305)
-
Receipts/(Payments) arising from short-term deposits
3,000,000
(3,000,000)
Receipts arising from loans made
(1,930,656)
5,893,877
Interest received
378,998
44,239
Interest paid
(3,681)
(1,314)
Net cash generated from investing activities
1,471,217
2,936,802
Financing activities
Repayment of bank loans
(37,069)
(10,300)
Receipt in advance
-
500,000
Dividends paid to equity shareholders
(591,849)
(6,168,330)
Net cash used in financing activities
(628,918)
(5,678,630)
Net (decrease)/increase in cash and cash equivalents
(5,246,488)
652,527
Cash and cash equivalents at beginning of year
15,994,975
15,342,448
Cash and cash equivalents at end of year
10,748,487
15,994,975

The notes on pages 16 to 32 form part of these financial statements.

YPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

YPP Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 6 Blenheim Terrace, Leeds, LS2 9HZ.

 

The group consists of YPP Holdings Limited and all of its subsidiaries.

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.

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.

1.2
Prior period error

In the prior year, a balance of £351,740 in respect of recharge expenses was incorrectly included within 'Administrative expenses'.

 

Management have established that this balance should have been netted off with recharge income in 'Turnover'.

 

Accordingly, the prior year 'Turnover' and 'Administrative expenses' have both been restated and decreased by £351,740.

 

The impact of the above adjustment on the Group net assets and statement of comprehensive income is £nil.

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

1.4
Basis of consolidation

The consolidated financial statements incorporate those of YPP Holdings Limited and all of its subsidiaries (i.e. entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All financial statements are made up to 31 December 2023.

YPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.5
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

The company made a profit after tax for the year of £2,489,244 (2022: £4,489,614) and has net assets of £3,514,072 (2022: £1,616,677). The group made a profit after tax for the year of £3,950,885 (2022: £2,425,366) and has net assets of £6,850,817 (2022: £3,853,125). The directors therefore have no doubt over the company's ability to continue as a going concern for the foreseeable future. In coming to their conclusion, the Directors have considered the group's profit for the year and cash flow plans for the coming period

The company has undertaken a going concern assessment considering the principal risks and current and projected financial position over the going concern period of 12 months from the date of sign-off. The Directors are therefore able to conclude that they have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the next 12 months and have accordingly prepared the financial statements on the going concern basis.

1.6
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

 

YPP Lettings & Management

Turnover is the recognition of rental income on a lease and sub-lease agreement with landlords.

 

Yorkshire Prosperity

Revenue from consultancy and offshore advisory work are fees in relation to compliance and tax advisory services and stated after other sales taxes and net of VAT.

Revenue from insurance arrangement, finder and planning fees are fees on identified projects and stated after trade discounts, other sales taxes and net of VAT.

Century Construction/Infinity Construction Enterprise

Revenue from construction and refurbishment projects is recognised by reference to the stage of completion when the stage of completion, costs incurred and cost to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

 

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 the total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

YPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.7
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:

Fixtures and fittings
33% reducing balance
Computers
33% reducing balance
1.8
Impairment of fixed assets

At each reporting period end date, the group 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.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less. Interest income on short-term liquid investments is recognised in the profit or loss in the period in which the income is received.

1.10
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

YPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

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.

YPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group 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 group.

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 income statement 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

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 leased asset are consumed.

1.16
Profit and loss account
The profit and loss represent cumulative profits and losses, net of dividends paid and other adjustments.
1.17

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

1.18

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

YPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.19
Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.
2
Judgements and key sources of estimation uncertainty

In the application of the group’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 group's directors have decided the client money received during the year should not be included on to the balance sheet where the group and its subsidiaries do not have the ability to exchange the cash for goods or services, and do not have full control over the cash to use for their own purposes without restriction.

 

In preparing these financial statements, the Directors have had to make following judgements:

 

 

Client monies held in YPP Lettings & Management Company Limited has been included in the balance sheet, as it arises from a lease and sub-lease agreement with landlords and as a result that group has control over those client monies. See note 18 for breakdown of cash.

 

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.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Refurbishment income
43,333,915
26,710,012
Lettings management
21,655,609
17,852,345
Property commission
889,283
797,461
Consultancy income
281,180
-
66,159,987
45,359,818
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
66,159,987
45,359,818
YPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Depreciation of tangible fixed assets
7,717
4,917
Operating lease charges
50,457
42,870
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor as borne by the group:
£
£
For audit services
Audit of the financial statements of the group and company
75,000
70,000
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
81
93
-
-

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,441,144
2,064,829
-
0
-
0
Social security costs
222,911
184,607
-
-
Pension costs
45,126
38,211
-
0
-
0
2,709,181
2,287,647
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
37,710
37,710
YPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
378,998
44,239

Investment income includes the following:

 

Interest on financial assets not measured at fair value through profit or loss
34,339
51
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
3,681
365
Other interest
-
949
Total finance costs
3,681
1,314
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
408,788
471,701

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
4,359,673
2,897,067
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
1,025,395
550,443
Tax effect of expenses that are not deductible in determining taxable profit
825
1,075
Gains not taxable
(608,317)
-
0
Tax effect of utilisation of tax losses not previously recognised
-
(36,448)
Unutilised tax losses carried forward
83,211
-
Permanent capital allowances in excess of depreciation
(3,403)
-
0
Research and development tax relief
(88,923)
(43,369)
Taxation charge
408,788
471,701
YPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
591,849
6,168,330
2023
2022
£
£
50,008 Ordinary shares at £1 each
591,849
6,168,330
12
Tangible fixed assets
Group
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 January 2023
61,204
6,804
68,008
Additions
8,949
12,356
21,305
At 31 December 2023
70,153
19,160
89,313
Depreciation
At 1 January 2023
54,837
3,194
58,031
Depreciation charged in the year
3,546
4,171
7,717
At 31 December 2023
58,383
7,365
65,748
Carrying amount
At 31 December 2023
11,770
11,795
23,565
At 31 December 2022
6,367
3,610
9,977
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Investments in subsidiaries
-
0
-
0
32,361
53,201
YPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Fixed asset investments
(Continued)
- 25 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
53,201
Disposals
(20,840)
At 31 December 2023
32,361
Carrying amount
At 31 December 2023
32,361
At 31 December 2022
53,201
Please see note 14 for further detail.
14
Subsidiaries
The subsidiary undertakings in which the company's interest at the year end is 20% or more and number of shares held are as follows:
Name
Nature of business
Registered address
Class of share
2023 Holding
2022 Holding
Century Construction Limited
Non trading
*
Ordinary
100%
100%
Infinity Construction Enterprise Limited
Trading
*
Ordinary
100%
100%
Winx Investments Limited
Non trading
*
Ordinary
100%
100%
Y&D Holdco Limited
Non trading
*
Ordinary
60%
-
During the year, the entire share capital of the subsidiaries Yorkshire Prosperity Limited, YPP Lettings & Management Company Ltd, and Estates Management Services Limited, previously 100% owned by YPP Holdings Limited, were allotted to Y&D Holdco Limited. As a result, Y&D Holdco Limited now owns 100% of these entities. YPP Holdings Limited indirectly holds a 60% interest in these subsidiaries through its direct 60% ownership of Y&D Holdco Limited.
Name
2023
2022
Variance
Century Construction Limited
100
100
-
Yorkshire Prosperity Limited
-
50,100
(50,100)
YPP Lettings & Management Company Limited
-
1,000
(1,000)
Estates Management Services Limited
-
1,000
(1,000)
Infinity Construction Enterprise Limited
1,000
1,000
-
Winx Investments Limited
1
1
-
Y&D Holdco Limited
31,260
-
31,260
32,361
53,201
(20,840)
*Registered office address all UK unless otherwise indicated is 6 Blenheim Terrace, Leeds, LS2 9HZ.
YPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
6,575,954
8,990,463
-
0
-
0
Unpaid share capital
3
3
3
3
Corporation tax recoverable
-
0
106,390
-
0
-
0
Amounts owed by group undertakings
-
-
1,275,499
1,276,424
Other debtors
2,777,989
3,308,131
-
0
2,232,969
Prepayments and accrued income
2,497,953
178,802
-
0
-
0
11,851,899
12,583,789
1,275,502
3,509,396
Amounts falling due after more than one year:
Other debtors
5,745,413
2,531,788
2,232,969
-
0
Total debtors
17,597,312
15,115,577
3,508,471
3,509,396

Amounts owed by Group undertakings are unsecured, repayable on demand and interest free.

 

Included within 'Other debtors' are amounts owed by a related party. This balance has been referred to in note 26.

16
Current asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Short term deposits
-
3,000,000
-
-
17
Cash
Group
Company
2023
2022
2023
2022
£
£
£
£
Cash at banks and in hand
10,748,487
15,994,975
45,972
4,263
Included in total cash of £10,748,487 (2022: £15,994,975) is £7,144,267 (2022: 5,172,188) of restricted cash in respect of client monies held on behalf of clients.
YPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
30
11,856
-
0
-
0
Trade creditors
4,988,798
2,027,619
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
72,732
113,733
Corporation tax payable
408,788
471,701
-
0
-
0
Other taxation and social security
230,429
497,989
-
-
Other creditors
2,595,678
2,025,061
-
0
1,836,450
Accruals and deferred income
13,294,824
25,207,935
-
0
-
0
21,518,547
30,242,161
72,732
1,950,183

Amounts owed to Group undertakings are unsecured, repayable on demand and interest free.

 

Included within 'Other creditors' are amounts owed due to a related party. This balance has been referred to in note 26.

19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
-
0
25,243
-
0
-
0
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bounce Back Loan
-
0
37,099
-
0
-
0
The maturity of the Government loan:
In one year or less, or on demand
-
11,856
-
-
In more than one year but not more than two years
-
10,000
-
-
In more than two years but not more than five years
-
15,243
-
-
Due more than five years
-
-
-
-
The Bounce back loan provided by Santander was repaid early and in full during the year.
YPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
21
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under operating leases:
Within one year
232,524
169,819
-
0
-
0
In two to five years
639,961
491,076
-
0
-
0
In over five years
252,344
318,276
-
0
-
0
1,124,829
979,171
-
-
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
45,126
38,211

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
2023
2022
Ordinary share capital
£
£
Issued and fully paid
50,000 Ordinary of £1 each
50,000
50,000
1 Ordinary A of £1 each
1
1
1 Ordinary B of £1 each
1
1
1 Ordinary C of £1 each
1
1
1 Ordinary D of £1 each
1
1
1 Ordinary E of £1 each
1
1
1 Ordinary F of £1 each
1
1
1 Ordinary G of £1 each
1
1
1 Ordinary H of £1 each
1
1
50,008
50,008
YPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
24
Business combinations
Profit of £2,587,344 arising from the sale of 40% holding of YPP Lettings & Management Company Limited, Yorkshire Prosperity Limited and Estates Management Services Limited up to the date of disposal and has been calculated as:
£
Cash proceeds
2,226,000
Total net liabilities disposed of:
Cash and cash equivalents
2,178,139
Property, plant and equipment
7,614
Trade and other receivables
1,464,866
Trade and other payables
(4,011,963)
Total net liabilities
(361,344)
Profit on disposal
2,587,344
The book value is not materially different to the fair value.
The net inflow of cash in respect of the sale is as follows:
£
Cash consideration
2,226,000
Cash transferred on disposal
(2,178,139)
Net inflow of cash
47,861
25
Financial Instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Financial Assets
Financial assets measured at amortised cost
28,266,864
34,041,282
3,554,443
3,513,659
Financial Liabilities
Financial liabilities measured at amortised cost
10,105,045
5,579,781
72,732
1,950,183
Financial assets measured at amortised cost comprise trade debtors, other debtors, accrued income, amounts owed by group undertakings (company only) and cash.
Financial liabilities measured at amortised cost comprise trade creditors, other creditors, loans, accruals and amounts owed to group undertakings (company only).
YPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
26
Related party transactions

YPP Holdings Limited, MAAN Investments Limited and MAAN Enterprises Limited are owned and controlled by the Al-Najafi family.

 

As at 31 December 2023, a balance of £6,695,413 (2022: £4,764,757) was due from MAAN Investments Limited. The Group also had sales of £88 (2022: £nil) to MAAN Enterprises Limited which remained outstanding at the year-end (2022: £nil). These balances are included in other debtors in note 15. During the year, the Group also paid £4,616,931 (2022: £3,600,644) to MAAN Enterprises Limited in introducer fees as per the agreement.. A balance of £25,000 remained outstanding to MAAN Enterprises Limited at the year-end (2022: £nil). This balances is included in other creditors in note 18.

 

A loan agreement was signed on 16 July 2020 between MAAN Investments Limited and the Group for a revolving finance facility of £50,000,000 ending at 31st December 2035. This agreement covered all previous loans outstanding.

 

Other transactions between the Group and its related parties are disclosed below. Related parties are those entities entities which are controlled or jointly controlled by MAAN including those entities where the Al- Najafi family have significant influence.

Turnover and cost

During the year the group entered into the following transactions with related parties:

2023
2022
Turnover
Cost
Turnover
Cost
£
£
£
£
Alphabet Enterprises Limited (Jersey No. 125831)
2,906,550
606,064
753,057
597,211
Black Caviar Holdings Limited (Jersey No. 141912)
835,701
609,961
1,500
-
Black Caviar Property Limited (Jersey No. 118885)
6,549,801
38,789
9,020,437
-
Capella Enterprises Limited (Jersey No. 126304)
-
-
74
-
Crescent Enterprises Limited (Jersey No. 126057)
509,937
404,043
2,729,184
-
Crescent Holdings Limited (Jersey No. 145321)
2,350
-
140,122
110,898
Goodwood Estates Limited (Jersey No. 125297)
817,700
196,088
7,046,687
-
Jefferson Investments Limited (Jersey No. 133221)
55,631
-
71,874
-
MAAN Holdings Limited (Jersey No. 124646)
850
-
1,169
-
MAAN Investments (Jersey No. 99123)
-
-
1,500
-
Minshull Investments Holdings Limited (Jersey No.136498)
544,274
432,838
510,946
407,557
Rose Gold Estates Limited (Jersey No. 117299)
11,660
33,424
525,197
-
Signature Black Holdings Limited (Jersey No. 127077)
1,031,260
810,808
1,015,944
811,518
Signature Black Property Limited (Jersey No. 118327)
-
-
74
-
Square Seven Property Limited (Jersey No. 119048)
21,558
-
18,992
-
St Albans Estates Limited (Jersey No. 127223)
1,600,699
1,205,199
1,536,892
1,228,254
St James Estates Limited (Jersey No. 128492)
-
-
104,743
-
St James Holdings Limited (Jersey No. 132622)
903,553
719,334
846,149
640,256
X&X Estates Limited (Jersey No. 118877)
-
-
74
-
X&X Holdings Limited (Jersey No. 127069)
1,396,719
1,108,187
1,462,230
1,161,259
YPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
26
Related party transactions
(Continued)
- 31 -
Amounts due from/to related parties

Group entities had the following balances, outstanding at year end with related parties who are not members of the Group:

Amounts due from/(to)
related parties
2023
2022
£
£
Alphabet Enterprises Limited (Jersey No. 125831)
27,173
11,992
Black Caviar Holdings Limited (Jersey No. 141912)
168,473
-
Black Caviar Property Limited (Jersey No. 118885)
3,570
693,750
Crescent Enterprises Limited (Jersey No. 126057)
17,224
-
Crescent Holdings Limited (Jersey No. 145321)
-
8,358
Goodwood Estates Limited (Jersey No. 125297)
936,680
5,706,540
Minshull Investments Holdings Limited (Jersey No.136498)
19,962
8,574
Rose Gold Estates Limited (Jersey No. 117299)
(19,100)
806,801
Signature Black Holdings Limited (Jersey No. 127077)
35,401
16,470
St Albans Estates Limited (Jersey No. 127223)
117,631
25,686
St James Holdings Limited (Jersey No. 132622)
30,224
14,911
X&X Holdings Limited (Jersey No. 127069)
47,328
23,050

All sales and other transactions were conducted on normal trading terms to the related parties.

 

Key management personnel are considered to be the directors. The total compensation paid to key management personnel for services provided to the group are disclosed in note 7.

27
Controlling party
The Group is owned and controlled by the Al-Najafi family.
YPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
28
Cash (used in)/generated from group operations
2023
2022
£
£
Profit for the year after tax
3,950,885
2,425,366
Adjustments for:
Taxation charged
408,788
471,701
Finance costs
3,681
1,314
Investment income
(378,998)
(44,239)
Depreciation of tangible fixed assets
7,717
4,917
Profit on disposal of shares
(2,587,344)
-
Movements in working capital:
Increase in debtors
(2,129,950)
(4,498,884)
Increase in creditors
6,914,856
1,659,013
(Decrease)/increase in deferred income
(11,913,111)
4,201,557
Cash (used in)/generated from operations
(5,723,476)
4,220,745
29
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at banks and in hand
15,994,975
(5,246,488)
10,748,487
30
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at banks and in hand
4,263
41,709
45,972
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