Company registration number 6378284 (England and Wales)
S1 DEVELOPMENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
S1 DEVELOPMENTS LIMITED
COMPANY INFORMATION
Directors
Shane David Teague
Daniel John Teague
Secretary
Daniel John Teague
Company number
6378284
Registered office
1 Queens Parade
Brownlow Road
London
N11 2DN
Auditor
P Spyrou & Co
Chartered Certified Accountants
1 Queens Parade
Brownlow Road
London
N11 2DN
Business address
52-54 Dundas Street
Edinburgh
EH3 6QZ
Bankers
Barclays Bank Plc
1 St Andrew Square
Edinburgh
EH2 2BD
Solicitors
Anderson Strathern LLP
1 Rutland Court
Edinburgh
EH3 8EY
S1 DEVELOPMENTS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
S1 DEVELOPMENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Review of the business
The results for the financial year were considered satisfactory. Following our performance in recent years we are in a very good position with capital to invest in future development opportunities.
Our strategy remains to identify suitable site acquisitions for development, obtain effective planning (working closely with local authorities) and design/build quality homes that appeal to our client base. On occasion, we continue to undertake joint ventures to deliver our strategy, with parties that have a similar approach in achieving this as we do, providing the design/build phase of such operations.
The company is responsible for the design and build of a site at St Andrews West for which, in the previous year's Scottish Home awards, the developer won the Housing Development of the Year (Small, Private Sale). In the current year's Scottish Home Awards, the company was nominated for Apartment Development of the Year (Private Sale) for the development at Temple Park.
Principal risks and uncertainties
The principal risks and uncertainties facing the company are summarised as follows:-
(i) availability of suitable land
(ii) planning delays
(iii) war in Ukraine
(iv) buyer uncertainties and their funding issues
(v) Brexit in relation to availability of skilled labour and materials
(vi) global supply chain
(vii) price inflation
(viii) interest rates
The directors regularly review the aforementioned risks and uncertainties and they feel that the company is looking into different strategies to mitigate their impact.
The company's activities remain Scotland based and therefore susceptible to the UK construction sector market conditions. The war in Ukraine has triggered a surge in energy prices across Europe and the European Union in particular, which remains the UK's biggest trading partner. The latter and the extra checks at the border because of Brexit have led to a sharp increase in building materials. Brexit restrictions have affected the labour supply as the recruitment pool has shrunk. We are hopeful that the new trade agreement between the UK and the EU will lay the foundation for further opportunities to benefit the construction industry as well.
Despite the above factors we have managed to continue our positive performance by acquiring quality personnel and by improving our information technology functions in key areas of the business in order to sustain our positive outlook for the next twenty four months. We are also hopeful that further drops in the interest rates will revive the housing market. This is supported by the fact that from a traditional housebuilder we now have a proven record in the building of student accommodations and in the most sustainable and efficient way.
We maintain regular contact with customers and market specialists and review wider UK indicators adjusting the company's market approach accordingly. This is well supported by the fact that over the years almost all of our developments have been either nominated or won Scottish Home Awards, which shows that we recognise the needs of the property market in Edinburgh.
We are well aware that from 2025, the Future Homes Standard will require new homes to produce less carbon emissions than the earlier standards applicable through to June 2022. We are also well aware that because of the above, our homes must produce 75-80% less carbon emissions than the houses built under the 2013 building regulations.
S1 DEVELOPMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Development and performance
Environment, Health & Safety and Compliance with building regulations
As mentioned above, our company continuously strives for better performance on all aspects of construction and in particular:
-On a monthly basis our waste removal contractor produces reports which show that none of our waste goes to landfills.
-Our newer developments are fully electric and using either a combination of Photovoltaic (PV) panels and Air Source Heat Pumps (ASHPs) or Air Source Heat Pumps (ASHPs) only.
-We have a cycle to work scheme
-We have implemented a trial of the first underground waste system in one of our developments, St Andrews, which separates the waste and also reduces emissions from lorries as the sensors ensure are emptied when full.
-All of our on-site staff have access to health & safety training courses, as and when each project requires.
-All site management have Site Management Safety Training Scheme (SMSTS) and first aid qualifications.
-We have regular audit checks by an independent health & safety organisation across all sites.
-Finally, we maintain fire alarm and detection systems on all of our sites.
-All of our sites have building warrants
-Building control officers from local councils or end users regularly visit our developments to monitor compliance with building regulations.
-All of our developments have the Premier Guarantee warranty, which means that all developments will be inspected for defects, which in turn will need to be addressed.
Key performance indicators
We are measuring our performance by using financial and quality indicators.
Financial performance indicators:
Turnover: Our turnover increased significantly and it was mainly supported by the contractor's work done at Temple Park Crescent on behalf of Oilmews Limited, Tynecastle School on behalf of Tynecastle Teague Limited/University of Edinburgh and St Andrews West on behalf of Headon S1 St Andrews West Limited. Turnover increased by approximately 33%.
Profit before tax: Decreased from 4% in 2023 to 3% in 2024, from approximately £0.96 million to £1.19 million mainly because of the inability of the market to absorb the increased costs in the construction industry.
Non - Financial performance indicators:
No. of Complaints: During the financial year our company received eight complaints in total, two for the development at St Andrews West and six for the development at Temple Park Crescent. The non-financial indicator is not the number of complaints but the treatment and resolution of those complaints, which resulted in a 100% customer satisfaction on all of them.
S1 DEVELOPMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
The position of the Company at the year end
The end of the financial year finds the company in a leading position in the small house builder's market in the area of Edinburgh. We will continue to strive for excellence and work closely with The City of Edinburgh Council to create more sustainable and environmentally friendly buildings and at the same time be as cost effective and efficient as possible.
23 June 2025
Daniel John Teague
Director
S1 DEVELOPMENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company continued to be that of building, contracting and property development.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Shane David Teague
Daniel John Teague
Results and dividends
The results for the year are set out on Page 9.
During the current and previous years the company did not pay a dividend to the directors.
Post reporting date events
We are responsible for the design and build of two separate sites in Edinburgh Park, one which will provide 397 units in a development called 'The New Village' and another one to provide commercial units, the latter at a later stage. The project commenced in 2025 and we are hopeful that this will be completed in late 2026/early 2027.
Future developments
The fundamentals for the market have been positive with continued demand for new housing in the Edinburgh area. The directors keep under consideration the breadth of activities undertaken by the company, quality of the builds and market forces when determining their pricing strategy. This leaves us well placed to deal with any changes that may occur in the housing market. Based on that, the company feels comfortable to take on various projects, which will establish us as a contractor known for its variety other than a mainstream housebuilder.
Auditor
A resolution proposing that P Spyrou & Co be reappointed as auditor of the company will be put at a General Meeting.
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 company’s auditor 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 company’s auditor is aware of that information.
On behalf of the board
Daniel John Teague
Director
23 June 2025
S1 DEVELOPMENTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
The directors are responsible for preparing the annual 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 profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
S1 DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF S1 DEVELOPMENTS LIMITED
- 6 -
Opinion
We have audited the financial statements of S1 DEVELOPMENTS LIMITED (the 'company') for the year ended 30 September 2024, which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 are independent of the 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
S1 DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF S1 DEVELOPMENTS LIMITED (CONTINUED)
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 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 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.
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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
We identified the laws and regulations applicable to the company through discussions with the directors and from our commercial knowledge and experience of the construction industry;
We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection, anti-bribery, environmental and health and safety legislation;
We assessed the extent of compliance with the laws and regulations identified above through making enquiries to management and inspecting legal correspondence; and
Identified laws and regulations were communicated within the audit team regularly and the team remained alert to any instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
S1 DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF S1 DEVELOPMENTS LIMITED (CONTINUED)
- 8 -
To address the risk of fraud through management bias and override of controls, we:
Performed analytical procedures to identify any unusual or unexpected relationships;
Tested journal entries to identify unusual transactions;
Investigated the rationale behind any significant or unusual transactions; and
Assessed whether judgements and assumptions made in determining the accounting estimates made in notes 13,14,15 and 16 were indicative of potential bias
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
Agreeing financial statement disclosures to underlying supporting documentation;
Reading the minutes of meetings of those charged with governance;
Enquiring of management as to actual and potential litigation and claims;
Reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors;
There are inherent limitations in our audit procedures described above. The more removed laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
Polycarpos Spyrou (Senior Statutory Auditor)
23 June 2025
For and on behalf of P Spyrou & Co, Statutory Auditor
Chartered Certified Accountants
1 Queens Parade
Brownlow Road
London
N11 2DN
S1 DEVELOPMENTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
37,695,993
25,181,517
Cost of sales
(35,811,876)
(23,297,423)
Gross profit
1,884,117
1,884,094
Administrative expenses
(1,025,858)
(928,889)
Other operating income
16,690
3,660
Operating profit
4
874,949
958,865
Interest receivable and similar income
8
321,708
146,679
Interest payable and similar expenses
9
(19,693)
(132,320)
Fair value gains/(losses) on financial instruments
10
12,519
(14,640)
Profit before taxation
1,189,483
958,584
Tax on profit
11
(298,532)
(223,458)
Profit for the financial year
890,951
735,126
The profit and loss account has been prepared on the basis that all operations are continuing operations.
S1 DEVELOPMENTS LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
505,089
454,913
Investments
13
184,749
131,672
689,838
586,585
Current assets
Stocks
14
310,881
8,131,133
Debtors
15
22,559,578
15,153,877
Cash at bank and in hand
6,909,422
6,535,866
29,779,881
29,820,876
Creditors: amounts falling due within one year
16
(15,631,887)
(16,424,617)
Net current assets
14,147,994
13,396,259
Total assets less current liabilities
14,837,832
13,982,844
Creditors: amounts falling due after more than one year
17
-
(16,011)
Provisions for liabilities
Deferred tax liability
20
83,817
103,769
(83,817)
(103,769)
Net assets
14,754,015
13,863,064
Capital and reserves
Called up share capital
22
100
100
Profit and loss reserves
14,753,915
13,862,964
Total equity
14,754,015
13,863,064
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 23 June 2025 and are signed on its behalf by:
Shane David Teague
Director
Company registration number 6378284 (England and Wales)
S1 DEVELOPMENTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2022
100
13,127,838
13,127,938
Year ended 30 September 2023:
Profit and total comprehensive income
-
735,126
735,126
Balance at 30 September 2023
100
13,862,964
13,863,064
Year ended 30 September 2024:
Profit and total comprehensive income
-
890,951
890,951
Balance at 30 September 2024
100
14,753,915
14,754,015
S1 DEVELOPMENTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
26
386,585
(265,908)
Interest paid
(19,693)
(26,847)
Income taxes paid
(53,856)
(830,180)
Net cash inflow/(outflow) from operating activities
313,036
(1,122,935)
Investing activities
Purchase of tangible fixed assets
(199,779)
(486,452)
Proceeds from disposal of tangible fixed assets
36,130
138,500
Purchase of investments
(40,558)
(46,573)
Interest received
321,708
146,679
Net cash generated from/(used in) investing activities
117,501
(247,846)
Financing activities
Repayment of borrowings
(105,473)
Repayment of bank loans
(3,742,579)
Payment of finance leases obligations
(44,774)
(33,363)
Net cash used in financing activities
(44,774)
(3,881,415)
Net increase/(decrease) in cash and cash equivalents
385,763
(5,252,196)
Cash and cash equivalents at beginning of year
6,487,616
11,739,812
Cash and cash equivalents at end of year
6,873,379
6,487,616
Relating to:
Cash at bank and in hand
6,909,422
6,535,866
Bank overdrafts included in creditors payable within one year
(36,043)
(48,250)
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
1
Accounting policies
Company information
S1 DEVELOPMENTS LIMITED is a private company limited by shares incorporated in England and Wales. The registered office is 1 Queens Parade, Brownlow Road, London, N11 2DN and the principal place of business is 52-54 Dundas Street, Edinburgh, EH3 6QZ.
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
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.3
Turnover
Turnover represents amounts receivable for contracting work done and it represents the value of work invoiced and accrued during the year. Any work done not invoiced is included in accrued income. Work done and accrued income are recognised by reference to the stage of completion.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation.
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:
Plant and machinery
10% Straight line
Fixtures, fittings & equipment
20% Staight line
Motor vehicles
25% 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
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities 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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
Stocks
Stock and work in progress is valued at the lower of cost and net realisable value. The cost of work in progress comprises materials, direct labour, other direct costs and related overheads (based on normal operating capacity). Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock and work in progress 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.
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 at bank and in hand
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
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 9 ‘Consolidated and Separate Financial Statements’ 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.
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.
1.9
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.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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 taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted. A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.
1.11
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.
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The company operates two defined contribution pension schemes for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered funds.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
1.14
Grants
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Revenue Recognition
To assess revenue,accrued expenses and profit recognition in relation to work done, the Company needs to make reasonable estimates in connection to construction costs (mainly building and professional costs) and other finance costs. The directors review the outcome of the projects regularly by way of cashflows, work programmes and cost plans. Revenue recognition is recognised only when a valuation is provided, outgoings are susceptible to significant fluctuations given the current economic climate. Therefore, the Directors appraise whether there have been significant changes to market conditions and the general economic environment as a whole at the balance sheet date.
Work in progress
Land and work in progress are valued at the lower of cost and net realisable value. Calculation of these provisions require judgements to be made, which include forecast of costs and value of acquired land in relation to the current and future economic environment.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Work done
37,605,447
10,292,396
Management fees
-
75,000
Unit sales
-
14,814,121
Other income
90,546
-
37,695,993
25,181,517
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom and Northern Ireland
37,695,993
25,181,517
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
3
Turnover and other revenue
(Continued)
- 17 -
2024
2023
£
£
Other revenue
Interest income
321,708
146,679
Grants received
9,433
2,920
331,141
149,599
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(9,433)
(2,920)
Fees payable to the company's auditor for the audit of the company's financial statements
23,500
16,500
Depreciation of owned tangible fixed assets
110,710
78,808
Loss/(profit) on disposal of tangible fixed assets
2,763
(9,600)
Operating lease charges
69,001
65,018
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
23,500
16,500
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
48
35
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,402,457
2,051,403
Social security costs
269,198
124,475
Pension costs
105,152
87,266
2,776,807
2,263,144
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
731,942
753,238
Company pension contributions to defined contribution schemes
20,000
28,000
751,942
883,520
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
378,186
391,781
Company pension contributions to defined contribution schemes
10,000
14,000
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
309,422
130,700
Other interest income
12,286
15,979
Total income
321,708
146,679
9
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
4,154
5,027
Interest payable on bank loans and overdrafts
105,473
Other interest
15,539
21,820
19,693
132,320
10
Fair value gains/(losses) on financial instruments
2024
2023
£
£
Gain/(loss) on financial assets held at fair value through profit or loss
12,519
(14,640)
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
322,047
157,732
Adjustments in respect of prior periods
(621)
Total current tax
322,047
157,111
Deferred tax
Origination and reversal of timing differences
(19,953)
66,347
Adjustment in respect of prior periods
(3,562)
Total deferred tax
(23,515)
66,347
Total tax charge
298,532
223,458
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:
2024
2023
£
£
Profit before taxation
1,189,483
958,584
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
297,371
210,888
Tax effect of expenses that are not deductible in determining taxable profit
10,002
3,517
Tax effect of income not taxable in determining taxable profit
(1,931)
Adjustments in respect of prior years
(3,562)
Group relief
(219)
(1,244)
Adjustments in respect of financial assets
(3,130)
3,222
Under/(over) provided in prior years
(621)
Depreciation add back
27,678
17,346
Capital allowances
(8,415)
(73,884)
Chargeable disposals
691
(2,113)
Deferred tax for the year
(19,953)
66,347
Taxation charge for the year
298,532
223,458
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
12
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2023
546,732
137,337
96,519
780,588
Additions
1,500
6,892
191,387
199,779
Disposals
(38,893)
(38,893)
At 30 September 2024
548,232
144,229
249,013
941,474
Depreciation and impairment
At 1 October 2023
189,036
105,895
30,744
325,675
Depreciation charged in the year
44,290
11,853
54,567
110,710
At 30 September 2024
233,326
117,748
85,311
436,385
Carrying amount
At 30 September 2024
314,906
26,481
163,702
505,089
At 30 September 2023
357,696
31,442
65,775
454,913
Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:
2024
2023
£
£
Plant and machinery
108,950
13
Fixed asset investments
2024
2023
£
£
Unlisted investments
184,749
131,672
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
13
Fixed asset investments
(Continued)
- 21 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 October 2023
131,672
Additions
41,300
Valuation changes
11,777
At 30 September 2024
184,749
Carrying amount
At 30 September 2024
184,749
At 30 September 2023
131,672
14
Stocks
2024
2023
£
£
Site costs
251,000
-
Work in progress
59,881
8,131,133
310,881
8,131,133
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,069,471
492,521
Amount due from parent undertaking(note 25)
4,083,871
3,067,955
Amounts due from fellow group undertakings(note 28)
2,781,283
2,077,218
Connected parties (note 28)
10,640,177
9,071,041
Other debtors
3,961,147
416,906
Prepayments and accrued income
23,629
28,236
22,559,578
15,153,877
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
18
36,043
48,250
Obligations under finance leases
19
4,600
33,363
Trade creditors
1,678,269
1,638,147
Gross amounts owed to contract customers
240,405
154,644
Amounts owed to group undertakings (note 28)
11,234,068
11,234,068
Corporation tax
305,884
41,256
Other taxation and social security
156,750
118,932
Connected parties (note 28)
1,878,925
3,091,947
Accruals and deferred income
96,943
64,010
15,631,887
16,424,617
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
16,011
Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.
18
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
36,043
48,250
Payable within one year
36,043
48,250
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
4,600
33,363
In two to five years
16,011
4,600
49,374
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is three years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
20
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
83,817
103,769
2024
Movements in the year:
£
Liability at 1 October 2023
103,769
Credit to profit or loss
(19,952)
Liability at 30 September 2024
83,817
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
105,152
87,266
The company operates two defined contribution pension schemes. The assets of the schemes are held separately from those of the company in independently administered funds.
22
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
23
Operating lease commitments
As lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within 1 year
30,000
30,000
Years 2-5
76,027
106,027
106,027
136,027
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
24
Events after the reporting date
See 'Post reporting date events' section included in the Directors' Report.
25
Parent company
The ultimate parent company is Eugate Investments Limited, a company registered in England and Wales.
Eugate Investment Limited prepares group financial statements and can be obtained from the Company's registered office, 1 Queens Parade Brownlow Road London N11 2DN.
26
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit after taxation
890,951
735,126
Adjustments for:
Taxation charged
298,532
223,458
Finance costs
19,693
132,320
Investment income
(321,708)
(146,679)
Loss/(gain) on disposal of tangible fixed assets
2,763
(9,600)
Depreciation and impairment of tangible fixed assets
110,710
78,808
Other gains and losses
(12,519)
14,640
Movements in working capital:
Decrease in stocks
7,820,252
4,657,975
Increase in debtors
(7,405,701)
(4,576,498)
Decrease in creditors
(1,016,388)
(1,375,458)
Cash generated from/(absorbed by) operations
386,585
(265,908)
27
Analysis of changes in net funds
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
6,535,866
373,556
6,909,422
Bank overdrafts
(48,250)
12,207
(36,043)
6,487,616
385,763
6,873,379
Lease liabilities
(49,374)
44,774
(4,600)
6,438,242
430,537
6,868,779
S1 DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
28
Related party transactions
Debtors - amounts due from connected parties (note15)
St Andrews Teague Limited: £2,781,283 (2023:£2,073,718). St Andrews Teague Limited is a fellow subsidiary and is controlled by both Shane David Teague and Daniel John Teague.
Skyliner Teague Limited: £5,637,660 (2023: £3,500). Skyliner Teague Limited was a fellow subsidiary up until the 27 October 2023 and is still controlled by both Shane David Teague and Daniel John Teague.
Mining Teague Limited: £259,387 (2023:£254,202). Both Shane David Teague and Daniel John Teague are the only directors and shareholders.
S1West Ltd: £595,649 (2023:£573,649). Both Shane David Teague and Daniel John Teague are the only directors and shareholders.
Key Teague Investments Limited: £1,126,441(2023:£1,125,108). Both Shane David Teague and Daniel John Teague are the only directors and shareholders.
Teague Holdings Limited: £5,160 (2023:£4,144). Both Shane David Teague and Daniel John Teague are the directors and shareholders.
Oilmews Limited: £307,819 (2023-creditor: £1,504,913). Both Shane David Teague and Daniel John Teague are the only directors and shareholders.
Beat Street (Edinburgh) Limited: £1,081,283, The company was incorporated on 28th November 2023 and both Shane David Teague and Daniel John Teague are the directors and indirect shareholders of this company.
Tynecastle Teague Limited: £1,626,778 (2023:£7,113,938). Both Shane David Teague and Daniel John Teague are the only directors and shareholders.
Creditors - amounts due to group undertakings & connected parties (note16)
Lincam Pentland Limited: £11,234,068 (2023: £11,234,068). Lincam Pentland Limited is a fellow subsidiary and is controlled by both Shane David Teague and Daniel John Teague. Lincam Pentland was dissolved on 8th April 2025 after certain declarations and resolutions were passed on 19th December 2024, which can be found on the Companies House website.
Gilmore Teague Limited: £1,710,736 (2023:£1,515,736). Both Shane David Teague and Daniel John Teague are the only directors and shareholders.
G-Tech Mechanical Services Limited: £168,189 (2023:£71,298). Both Shane David Teague and Daniel John Teague are shareholders.
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