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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Trafalgar Property Group Plc | LSE:TRAF | London | Ordinary Share | GB00BMGS6031 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.0425 | 0.04 | 0.045 | 0.0425 | 0.0425 | 0.0425 | 1,500 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Real Estate Agents & Mgrs | 18k | -844k | -0.0021 | -0.19 | 160.34k |
From Apr 2019 to Apr 2024
TIDMTRAF
RNS Number : 0210Q
Trafalgar New Homes PLC
06 September 2017
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.
6 September 2017
TRAFALGAR NEW HOMES PLC
("Trafalgar", the "Company" or "Group")
Final Results for the year ended 31 March 2017 and notice of Annual General Meeting
Trafalgar (AIM: TRAF), the AIM quoted residential property developer operating in southeast England, announces its final results for the twelve months ended 31 March 2017.
The Company's Annual Report is being posted to shareholders today and contains notice of the Annual General Meeting of the Company to be held at the Company's offices at Chequers Barn, Bough Beech, Edenbridge, Kent TN8 7PD at 11.00 a.m. on 29 September 2017.
Chairman's Statement
On behalf of the Board, I present herewith Trafalgar New Homes' results for the year ended 31 March 2017 which show that no house sales were recorded in the year. In previous years we have sold properties off plan or recorded sales prior to legal completion but for the last three years we only record sales on legal completion rather than on exchange. We have therefore concentrated on constructing the properties with a view to marketing them in the following trading year. The Board remains confident that with our current level of construction activity that the Company is well placed to deliver significantly improved results for future trading years.
We will continue to explore the potential for acquiring new sites that should produce increased turnover and a significant improvement in the future profit levels.
Financials
The year under review saw Group turnover at GBP30,000 (2016: GBP2,235,000), with a loss after tax of GBP298,397 (2016: Profit GBP204,877). The cash on the balance sheet at the end of the year was GBP100,808 (2016: GBP278,406) and the Group continues to have sufficient capital for all planned activities.
Business Environment and Outlook
Following the Brexit vote, the housing sector has seen patchy changes in demand depending on geographical area and price levels. However, the property price levels at which the Company operates have been largely unaffected so the Board does not consider this to be a major risk. We are currently marketing our completed units and continue with our construction programme.
While accepting that results to date have been disappointing, we feel that we are now in a strong position to deliver on sales and profits. In the meantime, we have been continuing to investigate new opportunities for developments and our site at Staplehurst in Kent is a prime example of this.
The Group remains confident about its prospects. Trafalgar New Homes is in a stronger position now than ever, and has secured several banking facilities to fund its development pipeline. The Executive Directors collectively have many years of residential development experience, which enables the Group to negotiate land and property purchases and construction contracts efficiently and quickly. This, in turn, enables the Group to adapt to changing market conditions and exploit opportunities.
As can be seen in Chris Johnson's Strategic Report, we believe the outlook for the Company is promising.
James Dubois
Chairman
6 September 2017
Operations review
A summary of the results for the year is as follows:-
Hot Features
Premium
2017 2016
GBP GBP
Revenue for the year 30,000 2,235,000
Gross (loss)/profit (17,269) 484,127
(Loss)/profit after taxation (298,397) 204,877
Group turnover for the year amounted to only GBP30,000, representing the sale of three parking spaces at the Borough Green site which were pending at the last year end and which were finalised during the year under review.
There were no house sales recorded during the year and, after taking into account the overheads of the Group, there was a loss recorded for the year of GBP298,397.
There will be no tax charge and the Company now has tax losses being carried forward of GBP 2,223,878
(2016: losses GBP 1,926,708).
The loss per share is (0.12p) compared to the earnings per share of 0.09p recorded for the year ended 31(st) March 2016.
Key performance indicators (KPIs)
Management are closely involved in the day to day operations of the Group and are very aware of cashflows and expenditure. However, Management believe that the key indicators of performance for the group are the revenue and profitability achieved during the period. These measures are disclosed above in the operations review.
Development Pipeline
At the end of the year ended 31(st) March 2016, the Group had contractors on sites at Burnside, Tunbridge Wells, Kent (6 luxury apartments); High Street, Edenbridge, Kent (terrace of three houses); and Vines Lane, Hildenborough, Kent (two executive detached houses).
In addition, the Group reported that we had commenced work at the site at Sheerness, Kent for six houses which had been owned by the Group for some time and that we had acquired a further site for development, being the site in Speldhurst, Tunbridge Wells, Kent with the benefit of planning permission for the demolition of the existing property and the erection of a substantial new build detached house on the site.
I can confirm that, as at the date of this report, we have completed the construction work of the terrace of three houses at Edenbridge, Kent and they are being marketed for sale.
Work on the six apartments at Burnside, Tunbridge Wells, Kent are substantially complete, with us dealing only with snagging items at the present time, to achieve Building Control sign-off before fully marketing the site for sale (it is pleasing to note that we already have a reservation on the penthouse at a figure very close to the asking price of GBP600,000 which, in turn, is greater than we anticipated at the outset).
The detached house at Speldhurst, Tunbridge Wells is 70% complete and our contractor has confirmed to us that the house will be finished and ready for occupation by the end of September 2017.
I am able, therefore, to confirm that twelve units, involving a mix of detached houses/apartments/terraced houses, for which we are aiming to achieve a gross development value on sale of circa GBP7 million, will all be complete and ready for marketing for sale during September. Hence, I anticipate a sale of most of these units prior to the 31(st) March 2018 year end.
In addition, the development of the site at Sheerness, Kent continues and we anticipate completion of the construction work on the site before the end of the current financial year and it is hoped sales of some of the units would have been achieved by 31(st) March 2018.
The Directors are confident that the current financial period will show an upturn in the fortunes of the Group.
The site at Staplehurst, Kent
Last year I reported on the refusal of the Planning Application we submitted for residential development on this site. Having taken advice and considered the position, we propose to continue seeking planning permission for development of this site. We are fortified by the advice received that this site should be able to accommodate an Assisted Living (Extra Care) Scheme which could provide up to 30 units on the front half of the site (for which we have been seeking planning permission for residential development) together with ancillary support buildings, to provide an Extra Care Assisted Living facility which is so sorely needed at the present time, not only in the area in which we operate, but in the country as a whole.
Your Group is taking advantage of the fact that the 'Extra Care' and 'Very Sheltered/Assisted Living' sectors are expected to grow significantly as the population of older people in the UK is expected to increase from 10.3 million in 2010 to 28 million by 2035. The proposed development at Staplehurst will come with communal areas and a range of social and recreational activities to promote health and happiness. These are key attributes compared to non-specialised homes.
It is believed that our application, when submitted, will find favour with the Planners and that Planning Permission will be granted accordingly.
Future Development
The Company is not short of opportunities to acquire sites for residential development in its chosen area of operation. However, it is not prepared to pay prices for land which are unrealistic and which would severely erode margins. Hence, the Group will be selective in its choice of offers to be made on sites that present themselves.
Currently it has an offer accepted for a nine unit site in the South of England, comprising two/three and four bedroom houses and is investigating various sites in Kent and East Sussex, to purchase during the current financial year, which should contribute to revenue for the year ended 31(st) March 2019.
Outlook
The Company is confident that the development programme, referred to above, will deliver improved results for the Group for the year ended 31(st) March 2018.
Looking ahead and during the current year, the Company will continue its negotiations for the purchase of other sites in the South of England, its chosen area of operation, which will contribute to turnover for the Group for the year ended 31(st) March 2019 and beyond.
As has been mentioned before, Trafalgar New Homes, remains focused on growing the Group, both through site acquisition and development and corporate acquisitions, to enable value to be created for the shareholders and for a dividend to be paid by the Group when appropriate.
Banking
The Group continues to utilise banking sources for the financing of its developments, together with loans from third party investors, to ensure that there is sufficient money available for the Group to undertake and complete its various developments.
We do not operate an overdraft facility but borrow on a site specific basis from our various bankers, with a mix of loans from outside investors geared to some of the development properties and otherwise loaned on a general basis to the Group.
The Board is comfortable with the structure of its bank finance, which usually involves the bank lending a modest sum towards the land purchase, with the Group putting the rest of the funds required to acquire the site and the costs associated with the acquisition and then for the Bank to provide 100% of the build finance. These are the arrangements that have been entered into with Coutts and Lloyds who lend to the Group at very competitive rates.
The Group have also used RateSetter as a funder who, again, provided 100% of the build finance on the Burnside, Tunbridge Wells site, the Group having paid off the borrowing on the land prior to entering into the arrangement with RateSetter for the development of that site.
Investor loans that are not related to specific sites are long term loans with repayment dates extending beyond the year end and have, in the past, been renewed when they come up for repayment.
Hence, in general terms, the Group is happy with its financial support afforded to it by its banks and investors, enabling it to trade without a general overdraft facility.
I will continue to support the Group, leaving my own loan to the Group outstanding and taking no interest on it for the year to 31 March 2017.
Financial Instruments
The Group's principal financial instruments comprise cash at bank, bank loans, other loans and various items within current assets and current liabilities that arise directly from its operations. The Directors consider that the key financial risk is liquidity. This risk is explained in the Section headed 'Principal risks and uncertainties in the Annual Report and Accounts'.
Christopher Johnson
Director
6 September 2017
Enquiries:
Trafalgar New Homes plc Christopher Johnson +44 (0)1732 700 000 Allenby Capital Ltd - Nominated Adviser and Broker Jeremy Porter/James Reeve +44 (0)20 3328 5656 Yellow Jersey PR Limited Felicity Winkles/Henry Wilkinson +44 (0)7748 843 871
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2017
Year Year
ended ended
31 March 31 March
Note 2017 2016
GBP GBP
Revenue 30,000 2,235,000
Cost of sales (48,070) (1,758,393)
--------- -----------
Gross (loss)/profit (18,070) 476,607
Administrative expenses (270,263) (279,250)
Operating (loss)/profit (288,333) 197,357
(Loss)/profit before interest (288,333) 197,357
Other interest receivable and similar income 2 801 7,520
Interest payable and similar charges 5 - -
(Loss)/profit before taxation (287,532) 204,877
Tax payable on (loss)/profit on ordinary activities 6 (10,865) -
(Loss)/profit after taxation for the year
attributable to equity
holders of the parent (298,397) 204,877
========= ===========
Other comprehensive income attributable to
equity
holders of the parent - -
Total comprehensive (loss)/income for the
year (298,397) 204,877
(Loss)/profit attributable to:
Equity holders of the Parent (298,397) 204,877
========= ===========
Total comprehensive (loss)/income for the
year attributable to:
Equity holders of the Parent (298,397) 204,877
(LOSS)/PROFIT PER ORDINARY SHARE:
Basic/diluted 7 (0.12)p 0.09p
========= ===========
All results in the current and preceding financial year derive from continuing operations.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the year ended 31 March 2017
31 March 31 March
Note 2017 2016
TOTAL ASSETS GBP GBP
Non-current assets
Property, plant and equipment 8 1,788 2,384
----------- -----------
1,788 2,384
Current assets
Inventory 11 5,399,198 2,275,546
Trade and other receivables 9 96,985 436,604
Cash at bank and in hand 10 100,808 278,406
----------- -----------
5,596,991 2,990,556
Total assets 5,598,779 2,992,940
=========== ===========
EQUITIES & LIABILITIES
Current liabilities
Trade and other payables 12 178,675 152,149
Borrowings 13 2,150,643 741,266
2,,329,318 893,415
Non-current liabilities
Borrowings 13 4,690,257 3,221,924
Total liabilities 7,019,575 4,115,339
Equity attributable to equity holders of
the Company
Called up share capital 14 2,383,752 2,383,752
Share premium account 15 1,165,463 1,165,463
Reverse acquisition reserve (2,817,633) (2,817,633)
Profit & loss account (2,152,378) (1,853,981)
Total Equity (1,420,796) (1,122,399)
Total Equity & Liabilities 5,598,779 2,992,940
=========== ===========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2017
Share capital Share premium Reverse Retained Total equity
acquisition profits
reserve /(losses)
GBP GBP GBP GBP GBP
At 1 April 2015 2,383,752 1,165,463 (2,817,633) (2,058,858) (1,327,276)
Profit for the year - - - 204,877 204,877
Total comprehensive
income for the year - - - 204,877 204,877
------------- ------------- ------------ ----------- ------------
Issue of shares - - - - -
Share issue costs - - - - -
At 31 March 2016 2,383,752 1,165,463 (2,817,633) (1,853,981) (1,122,399)
------------- ------------- ------------ ----------- ------------
At 31 March 2016 2,383,752 1,165,463 (2,817,633) (1,853,981) (1,122,399)
(Loss) for year - - - (298,397) (298,397)
Total comprehensive
(loss) for the year - - - (298,397) (298,397)
------------- ------------- ------------ ----------- ------------
At 31 March 2017 2,383,752 1,165,463 (2,817,633) (2,152,378) (1,420,796)
------------- ------------- ------------ ----------- ------------
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 March 2017
2017 2016
GBP GBP
Cash flow from operating activities
Operating (loss)/profit (288,333) 197,357
Depreciation 596 795
Increase in stocks (3,123,652) (391,296)
Decrease/(increase) in debtors 339,619 (355,360)
Increase in creditors 5,026 81,372
Interest received 1 60
Interest paid 296,126 166,869
Rental income received 800 7,460
Net cash outflow from operating activities (2,769,817) (292,743)
----------- ---------
Investing activities
Purchase of tangible fixed assets - (2,531)
Net cash used in investing activities - (2,531)
----------- ---------
Taxation 10,635 -
----------- ---------
Financing activities
New loans in year 2,309,377 694,816
Director loan cash injected/(repaid) 568,333 (445,037)
Interest paid (296,126) (166,869)
----------- ---------
Net cash inflow from financing 2,581,584 82,910
----------- ---------
Decrease in cash and cash equivalents in the
year (177,598) (212,364)
----------- ---------
Cash and cash equivalents at the beginning
of the year 278,406 490,770
Cash and cash equivalents at the end of the
year 100,808 278,406
=========== =========
GOING CONCERN
The Directors have reviewed forecasts and budgets for the coming year, which have been drawn up with appropriate regard for the current economic environment and the particular circumstances in which the Group operates. These were prepared with reference to historical and current industry knowledge, taking into account future strategy of the Group.
The Group continues to utilise banking sources for the financing of its developments, together with loans from third party investors, to ensure that there is sufficient money available for the Group to undertake and complete its various developments.
The Group do not operate an overdraft facility but borrow on a site specific basis from various bankers, with a mix of loans from outside investors geared to some of the development properties and otherwise loaned on a general basis to the Group.
The Board is comfortable with the structure of its bank finance, which usually involves the bank lending a modest sum towards the land purchase, with the Group putting the rest of the funds required to acquire the site and the costs associated with the acquisition and then for the bank to provide 100% of the build finance.
Investor loans that are not related to specific sites are long term loans with repayment dates extending beyond the year end and have, in the past, been renewed when they come up for repayment.
The existing operations have been generating funds to meet short-term operating cash requirements and management are confident that the expected sales will allow the Group to meet loan repayments due within the next twelve months. As a result of these considerations, at the time of approving the financial statements, the Directors consider that the Company and the Group have sufficient resources to continue in operational existence for the foreseeable future. It is appropriate to adopt the going concern basis in the preparation of the financial statements.
Mr C Johnson confirms that if necessary he will continue to support the Group for its anticipated needs and will not recall the balances owed to him, for at least twelve months from the date of signing. As with all business forecasts, the Directors' statement cannot guarantee that the going concern basis will remain appropriate given the inherent uncertainty about future events.
NOTES
1. SEGMENTAL REPORTING
For the purpose of IFRS 8, the chief operating decision maker ("CODM") takes the form of the Board of Directors. The Directors' opinion of the business of the Group is as follows.
The principal activity of the Group was property development. All the Group's non-current assets are located in the UK.
Based on the above considerations, there is considered to be one reportable segment. The internal and external reporting is on a consolidated basis with transactions between Group companies eliminated on consolidation. Therefore the financial information of the single segment is the same as that set out in the consolidated statement of comprehensive income, the consolidated statement of changes in equity, the consolidated statement of financial position and cashflows.
Geographical segments
The following tables present revenue regarding the Group's geographical segments for the year ended 31 March 2017.
Year ended 31 March 2017 United Kingdom Total
GBP GBP
Property development - sales 30,000 30,000
30,000 30,000
============== ======
Year ended 31 March 2016 United Kingdom Total
GBP GBP
Property development - sales 2,235,000 2,235,000
2,235,000 2,235,000
============== =========
2. OTHER INTEREST RECEIVABLE AND SIMILAR INCOME
2017 2016
GBP GBP
Bank interest received 1 60
Rental income & ground rent 800 7,460
801 7,520
==== =====
3. LOSS FOR THE YEAR
The Group's loss for the year is stated after charging the following:
2017 2016
GBP GBP
Depreciation of tangible fixed assets 596 795
Auditor's remuneration:
Audit of these financial statements 10,000 10,000
Amounts receivable by the auditor in respect
of the audit of the financial
statements of subsidiary undertakings pursuant
to legislation 7,000 6,000
Amounts payable to Crowe Clark Whitehill LLP and its related entities in respect of audit and non-audit services are disclosed in the table above.
4. EMPLOYEES AND DIRECTORS' REMUNERATION
Staff costs during the year were as follows:
2017 2016
GBP GBP
Directors' remuneration 50,000 15,000
Wages and salaries 38,000 43,500
Social security costs 5,336 4,061
Other pension costs 18,100 18,000
111,436 80,561
======= ======
The average number of employees of the company during the year was:
2017 2016
Number Number
Directors and management 4 4
====== ======
Key management are the Group's Directors. Remuneration in respect of key management was as follows:
2017 2016
GBP GBP
Short-term employee benefits:
- Emoluments for qualifying services C C Johnson - -
- Emoluments for qualifying services A Johnson 35,000 -
- Emoluments for qualifying services J Dubois 15,000 15,000
50,000 15,000
====== ======
There are retirement benefits accruing to Mr C C Johnson for whom a company contribution was paid during the year of GBP18,000 (2016: GBP18,000) and Mr A Johnson GBP100 (2016: nil).
Consultancy fees of GBP4,994 (2016: GBP4,994) were paid to Mr N Lott during the year.
5. INTEREST PAYABLE AND SIMILAR CHARGES
During the year all interest paid on borrowings was capitalised as part of inventory GBP 296,126 (2016: GBP166,869) with the interest capitalised on properties sold in the period forming part of cost of sales. All interest was capitalised.
6. TAXATION
2017 2016
GBP GBP
Current tax 10,635 -
Tax charge 10,635 -
====== ====
2017 2016
GBP GBP
(Loss)/profit on ordinary activities before
tax (287,532) 204,877
Based on (loss)/profit for the year:
Tax at 20% (2016: 20%) (57,506) 40,975
Unrelieved tax losses 57,506 -
Prior year tax adjustment 17,555 -
Tax refund - carry back losses to prior year (6,920) -
Effect of:
Losses utilised/group relief claimed - (40,975)
Tax charge for the year 10,635 -
========= ========
No deferred tax asset has been recognised in respect of historical losses due to the uncertainty in future profits against which to offset these losses. As at the 31 March 2017 the group had cumulative tax losses of GBP2,223,878 (2016: GBP1,837,724) that are available to offset against future taxable profits.
7. (LOSS)/PROFIT PER ORDINARY SHARE
The calculation of (loss)/profit per ordinary share is based on the following profits/(losses) and number of shares:
2017 2016
GBP GBP
(Loss)/profit for the year (298,397) 204,877
========= =======
Weighted average number of shares for basic
profit /(loss) per share 238,735,200 238,735,200
=========== ===========
Weighted average number of shares for diluted
profit /(loss) per share 238,735,200 238,735,200
=========== ===========
(LOSS)/PROFIT PER ORDINARY SHARE:
Basic (0.12)p 0.09p
=========== ===========
Diluted (0.12)p 0.09p
=========== ===========
8. PROPERTY, PLANT AND EQUIPMENT
Fixtures and fittings 2017 2016
GBP GBP
Cost
At 1 April 5,467 2,936
Additions - 2,531
At 31 March 5,467 5,467
===== =====
Depreciation
At 1 April 3,083 2,288
Charge for the year 596 795
At 31 March 3,679 3,083
===== =====
Net book value at 31 March 1,788 2,384
----- -----
9. TRADE AND OTHER RECEIVABLES
2017 2016
GBP GBP
Other receivables 75,322 425,515
Other taxes 11,005 4,786
Prepayment 10,658 6,303
96,985 436,604
====== =======
There are no receivables that are past due but not impaired at the year-end. There are no provisions for irrecoverable debt included in the balances above.
10. CASH AND CASH EQUIVALENTS
All of the Group's cash and cash equivalents at 31 March 2017 are in sterling and held at floating interest rates.
2017 2016
GBP GBP
Cash and cash equivalents 100,808 278,406
======= =======
The Directors consider that the carrying amount of cash and cash equivalents approximates to their fair value.
11. INVENTORY
2017 2016
GBP GBP
Work in progress 5,399,198 2,275,546
========= =========
See note 5 for details of interest capitalised as part of the value of inventory.
12. TRADE AND OTHER PAYABLES
2017 2016
GBP GBP
Trade payables 10,400 93,328
Accruals 151,722 54,513
PAYE & Corporation Tax 14,091 2,050
Other payables 2,462 2,258
178,675 152,149
======= =======
13. BORROWINGS
2017 2016
GBP GBP
Directors' loans 2,990,257 2,121,924
Other loans 1,700,000 1,100,000
Bank and other loans (less
than 1 year) 2,150,643 741,266
6,840,900 3,963,190
========= =========
Included in Directors' loans is the sum of GBP300,000 (2016: GBP300,000) advanced by the DFM Pension Scheme of which Mr J Dubois is the principal beneficiary. This loan bears interest at 12% per annum (2016: 12% per annum).
Included in Directors' loans is the sum of GBP521,455 drawn down from a GBP835,000 loan facility advanced by Lloyds Bank and which is linked to the Speldhurst development. The loan was made in the name of A Johnson as the Speldhurst property is held in his name, and bears interest at 5.2% above base rate per annum.
The remaining balance of Directors' loans is due to C Johnson (see note 16).
Included in other loans is GBP1,100,000 (2016: GBP800,000) advanced by Mr. G Howard (son-in-law of Mr. C C Johnson) to the company at a rate of 10% per annum (2016: 10% pa). The remaining balance of GBP600,000 (GBP2016: GBPnil) has been advanced by Christine Rowe, an employee of the group, at a rate of 10% per annum.
C C Johnson is a named guarantor on the loan included within bank loans.
The bank borrowings are repayable as follows:
2017 2016
GBP GBP
On demand or within one year 2,150,643 741,266
In the second year - -
In the third to fifth years
inclusive - -
After five years - -
2,150,643 741,266
========= =======
Less amount due for settlement
within 12 months (included
in current liabilities) 2,150,643 741,266
Amount due for settlement after
12 months - -
========= =======
The weighted average interest rates paid on the bank loans were as follows:
Bank loans: - 4.39% (2016: 5.33%)
All of the directors' loans are repayable after more than 1 year. All loans are interest bearing and charged accordingly. However Mr C C Johnson has waived his right to interest in the year and as a result interest of GBPnil (2016: GBP nil) was paid to Mr C C Johnson. The rate of interest on the loan is 5% pa (2016: 5% pa). Interest of GBP36,000 (2016: GBP36,000) was paid to Mr J Dubois at the rate of 12 % pa (2016: 12% pa).
14. Share capital
Authorised Share Capital
2017 2016
Number Number
Ordinary shares of 1p each
- 1April 2016 238,375,200 238,375,200
Additional shares issued for - -
cash in year
238,375,200 238,375,200
=========== ===========
Issued, allotted and fully paid
2017 2016
GBP GBP
Ordinary shares of 1p each 2,383,752 2,383,752
========= =========
15. Share PREMIUM ACCOUNT
2017 2016
GBP GBP
Balance brought forward 1,165,463 1,165,463
Premium on issue of new shares - -
Share issue costs - -
Balance carried forward 1,165,463 1,165,463
========= =========
16. RELATED PARTY TRANSACTIONS
Mr C C Johnson holds 78.4% (2016: 78.4%) of the total issued share capital of the Group.
The following working capital loans have been provided by the Directors:
2017 2016
GBP GBP
C C Johnson
Opening balances 2,121,924 2,566,961
Loan repayments - (421,255)
Personal drawings (98,122) (23,782)
Capital injected 145,000 -
Interest payable - -
Balance carried forward 2,168,802 2,121,924
========= =========
J Dubois - GBP300,000 GBP300,000
Mr Johnson's Loan bore interest during the year at 5% (2016: 5% pa), but he has chosen to forego the interest in the year. Mr Dubois's Loan, which is from his Pension Fund of which he is the sole beneficiary, was at 12% pa interest (2016: 12% pa).
The development at Speldhurst was acquired in the name of A Johnson (Director) and is held in trust by him on behalf of the Group, together with a Lloyds Bank loan facility for up to GBP835,000 connected to this development which has been drawn down through A Johnson as to GBP521,455, the details of which are disclosed in Note 13.
17. SHARE OPTIONS AND WARRANTS
There are no share options or warrants.
18. CATEGORIES OF Financial instruments
The Group's financial assets are divided as cash and cash equivalents. The Group's financial liabilities are divided as Directors loans, bank loans and other loans.
Loans and receivables Financial liabilities
measured at
amortised cost
2017 2016 2017 2016
GBP GBP GBP GBP
Financial assets
Cash and cash equivalents 100,808 278,406 - -
Other receivables 86,327 430,301 - -
Financial liabilities
Trade payables - - 178,675 152,149
Borrowings - Directors' loans - - 2,168,802 2,121,924
Borrowings - Bank loan - - 2,672,098 741,266
Borrowings - Other loans - - 2,000,000 1,100,000
Total 187,135 708,707 7,019,575 4,115,339
=========== ========== =========== ==========
The Board has overall responsibility for the determination of the Group's risk management objectives and policies and it sets policies that seek to reduce risk as far as possible without unduly affecting the Group's competitiveness and flexibility. Further details regarding these policies are set out below:
Capital risk management
The Group considers its capital to comprise its share capital and share premium. The Group's capital management objectives are to safeguard the entity's ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders and to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.
Significant Accounting Policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed on pages 16 to 21 to these financial statements.
Foreign currency risk
The Group has minimal exposure to the differing types of foreign currency risk. It has no foreign currency denominated monetary assets or liabilities and does not make sales or purchases from overseas countries.
Interest rate risk
The Group is sensitive to changes in interest rates principally on the loans from banks. GBP 2,000,000 of the loans from Mr Johnson bears interest at 5% pa (2016: 5% pa), although Mr Johnson has waived his right to receive interest in the year. Mr Dubois' loan of GBP300,000 within other loans, from his Pension Fund attracts interest at 12% pa (2016: 12%). Additional loans of GBP1,700,000 (2016: GBP800,000) included in other loans attract interest at 10% pa (2016: 10% pa).
The impact of a 100 basis point increase in interest rates would result in additional interest cost for the year of GBP 26,721 (2016: GBP7,280).
Credit risk management
Credit risk refers to the risk that a counter-party will default on its contractual obligations resulting in financial loss to the Group.
Liquidity risk management
This is the risk of the Company not being able to continue to operate as a going concern.
The Directors have, after careful consideration of the factors set out above, concluded that it is appropriate to adopt the going concern basis for the preparation of the financial statements and the financial statements do not include any adjustments that would result if the going concern basis was not appropriate.
Mr Johnson confirms that he will continue to support the Group for its anticipated needs for the next two years. As with all business forecasts, the Directors' statement cannot guarantee that the going concern basis will remain appropriate given the inherent uncertainty about the future events.
Derivative financial instruments
The Group does not currently use derivative financial instruments as hedging is not considered necessary. Should the Group identify a requirement for the future use of such financial instruments, a comprehensive set of policies and systems as approved by the Directors will be implemented.
In accordance with IAS 39, "Financial instruments: recognition and measurement", the Group has reviewed all contracts for embedded derivatives that are required to be separately accounted for if they do not meet specific requirements set out in the standard. No material embedded derivatives have been identified.
This information is provided by RNS
The company news service from the London Stock Exchange
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September 06, 2017 10:30 ET (14:30 GMT)
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