We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| St Mark Homes PLC | AQSE:SMAP | Aquis Stock Exchange | Ordinary Share | GB0033501445 | Ordinary Share |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 52.50 | 20.00 | 60.00 | 52.50 | 37.50 | 52.50 | 0.00 | 16:29:58 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
Premium
TIDMSMAP
23 May 2022
St Mark Homes Plc
("SMH" or "the Company")
Final results
St Mark Homes Plc (AQSE: SMAP), the housebuilder operating mainly in London and
the South of England, today announces its Final Results for the year ended 31
December 2021.
Strategic report
The directors present their strategic report for the year ended 31 December
2021.
Review of the business
The Group continues to develop residential led projects located in London and
the Southern regions of the United Kingdom. The Group typically undertakes its
business within special purpose vehicles and on a joint venture/profit sharing
basis with other house builders.
2021 has again been a difficult year with the continued impact of Brexit and
Covid delaying both sales and production. The Group made a loss before tax of £
105,529 (2020 loss: £170,101). While historically the business has largely
developed apartments we anticipate increasing our exposure to family housing in
the next development cycle. Our two new projects at Muswell Hill and Finchley
are initial steps in this direction. We are also pleased to report that our
Sutton joint venture was granted planning in late 2021. The Group made a
dividend distribution to shareholders of £132,390 being 3 pence per share
(2020: nil per share).
Our strategic priorities
The Board remain keen to grow the Group into a significant regional house
builder. We have an established and profitable method of operation and intend
to participate in additional projects in the coming years.
We believe the key Group assets are its people, capital base and market
listing. Our primary aim is to maximise shareholder value by utilising each of
these assets to best effect. We also are committed to the highest standards of
sustainability.
People and partnering
We have an intentionally small but experienced team with demonstrable
competency in the areas of finance, property development, project appraisal and
project delivery. Our strategy is to match those core skills and our capital
with partners who can assist with project design, construction and sales. Our
people are motivated through a management incentive scheme which aligns their
interests with that of the shareholders and only rewards performance after
attainment of profit targets linked to the return on shareholders funds.
Capital
The Group commenced 2021 with a capital base just over £5.49m (2020: £5.59m).
We have previously set a performance target to grow that base by a minimum of
5% on opening shareholders funds per annum through organic growth. In 2021 we
had a pre-tax loss of 2% (2020: loss 3%) on opening shareholders funds during
particularly testing market conditions.
AQSE Growth Market Listing
The market mid-price on 20 May 2022 of £0.875 represents a discount of 25% to
the net asset value of £1.17 per share reported at 31 December 2021.
We will continue to monitor the effectiveness of the market The Board believe
the expansion of the capital base and the continuation of profit and dividend
growth are steps that can broaden investor appeal.
Sustainability
We recognise that there are financial and operational benefits of working
sustainably and we are committed to the highest standards of sustainability.
While many environmental requirements are embedded within the planning process,
sustainability is a broader issue than that and encompasses both Health &
Safety and the supply chain.
Health & Safety continues to remain the Group's first priority and we work with
our joint venture partners to attain best practice standards. We are happy to
report that there were no reportable incidents on any of our projects during
2021 and since the period end and we remain committed to the highest standards
of Health & Safety.
Having the right supply chain is also crucial to sustainability. We do have
long term working relationships with our main suppliers but continue to
carefully monitor the financial health of our design teams and main
contractors. We aim to pay suppliers to agreed timescales and to work
collaboratively with them for the benefit of all.
Project Portfolio
At present we have live joint venture projects on sites in Sutton, Battersea,
Hanwell, Muswell Hill and Finchley which we anticipate will deliver profits in
2022 through to 2023. As these projects are completed we will seek replacement
schemes.
Continuing Developments
Sutton High Street, Sutton:
The Group retains a 40% interest in a development site at Sutton High Street.
The Group, in association with its joint venture partner, successfully secured
planning consent from the London Borough of Sutton in November 2020 for the
extension of the ground floor retail space at its previous developed scheme
at 324 - 340 High Street, Sutton, together with approval for a new six-storey
building comprising 30 residential apartments over ground floor retail space
and basement car park on the adjacent land at 342 - 346 High Street.
Construction works commenced in February 2021, with completion of the scheme
expected in early 2023.
The Group is in advanced negotiations with a FTSE 100 retailer for the letting
of the ground floor retail space and is hopeful that this will lead to the
securing of a long lease for this element of the scheme.
The Group plans to commence marketing of the residential element of this scheme
in the summer of 2022.
Gwynne Road, London SW11:
The Group has a 40% interest in the redevelopment of this site with its joint
venture partner. The initial phase of the project was completed in 2021
providing a mixed use development of commercial/retail at ground and mezzanine
levels and 33 residential flats above. The apartments have all been sold but
the commercial remains available. We obtained a D1 planning consent on the
ground floor in 2021 and now intend to seek consent for an additional penthouse
on the top of the building.
In accordance with our revenue recognition policy we have recognised a loss of
£37,239 (2020: £14,833) during 2021.
Uxbridge Road, Hanwell, London W7:
The Group has a 50% interest in the redevelopment of this site with full
planning permission in place to provide 43 residential units (7 houses and 36
apartments) and ground floor retail fronting Uxbridge Road, Hanwell, West
London. The development is located just 200m from the new Crossrail station at
Hanwell. Construction of the project is expected in June 2022.The business has
already secured a FTSE 100 tenant for 80% of the retail space. The marketing
of the residential element commenced in May 2022.
In accordance with our revenue recognition policy we have recognised project
management fees of £216,000 (2020: £216,000) during 2021.
New Developments
Twyford Avenue, Muswell Hill, London, N2:
The Group has taken a 50% joint venture stake in a new build housing scheme in
Muswell Hill, North London. This development will see the construction of seven
new houses with off street parking.
Construction is underway and is scheduled to be completed in June 2022.
Marketing of the scheme commenced in April 2022 and five of the seven houses
are now either sale agreed or exchanged.
553 - 563 High Road, Finchley, N12:
The Company has taken a 50% joint venture stake in a new build housing scheme
in Finchley, North London. This development will see the construction of five
houses. Construction work is underway with completion forecast for autumn 2022.
Future Developments
As capital and profits are released from the current project portfolio the
Board will seek out further opportunities with similar risk profiles. The
Group's schemes have largely been in the outer London Boroughs and it is
intended that the Group will continue to focus on this geographic area.
Board Decision Making: Section 172 Statement
The Board regularly considers the impact of their decision making on the key
stakeholders of the business. For this purpose the Board have identified the
following groups of stakeholders with details of how they have engaged with
those stakeholders and the effect this has had on St Mark's decisions and
strategies during the year.
Stakeholder Their interests How management and/or Directors engage
group
Investors · Comprehensive · Annual and interim
review of financial reports
performance of the business · Company website
· Business · Shareholder circulations
sustainability · Company announcements
· High standard of · AGM
governance · AQSE growth exchange
· Awareness of announcements
long-term strategy and
direction
Employees · Job satisfaction · Formal policies and
and fulfilment procedures
· Health and · Regular dialogue with
safety on site key management
· Training and · Company culture which
development promotes inclusion and sharing of
· Career ideas
progression · Management Incentive
· Inclusion Scheme
Joint Venture · Mutually · Formal development
Partners rewarding outcomes agreements
· Learning from joint
experiences to seek continual
improvement
· Pre commitment project
due diligence
· Project Monitoring
Community and · Sustainability · Products promote energy
the · Energy usage reduction
environment · Recycling and · Corporate and social
waste management responsibility policy
· Environmental policy
Principal risks and uncertainties
The Group is exposed to the usual risks of companies constructing and
developing residential property, including construction budget overruns, delays
in programme, insolvency of clients, general economic conditions, project
availability, uninsured calamities and other factors.
Investments are made in sterling and therefore the Group is not subject to
foreign exchange risks. The Group's credit risk is primarily attributable to
its trade debtors. Credit risk is managed by monitoring payments against
contractual agreements. The Group also reviews the financial standings of its
debtors prior to entering into significant contracts.
Key Performance Indicators
The Group's long term performance target has been to generate a minimum average
annual return on shareholders funds of 5%. Given the difficult environment we
dropped this to 2% for 2021. During 2021 the annual pre-tax return on
shareholders' funds was - 2% (2020: -3%). The production was challenging in
2021 and has impacted profit recognition in 2021 and our ability to reutilise
capital.
The Group also seeks protection from market downturns by committing no more
than 50% of its capital to any one project and by requiring projects in which
it is a stakeholder to show a minimum return on cost of 15%. During 2021 the
maximum exposure of capital to any one project was less than 40% of Group
capital.
Treasury policy
Operations have been financed by the issue of shares in the past and retained
profits, the cash from which has been invested in short term cash deposits. In
addition, various financial instruments such as trade debtors and trade
creditors arise directly from the Group's operations. Loans have been funded by
the cash income from previous development projects.
On behalf of the Board
Bernard Tansey
Chairman
20 May 2022
The Directors of St Mark Homes PLC accept responsibility for this announcement.
For further information, please contact:
St Mark Homes Plc
Sean Ryan, Finance Director Tel: +44 (0) 20 8903 2442
seanryan@stmarkhomes.com
Alfred Henry Corporate Finance Ltd, AQSE
Growth Market Corporate Adviser
Jon Isaacs / Nick Michaels Tel: +44 (0) 20 3772 0021
www.alfredhenry.com
Consolidated statement of comprehensive income
for the year ended 31 December 2021
2021 2020
£ £
Turnover 259,200 216,000
Cost of sales (28,800) (29,361)
________ ________
Gross profit 230,400 186,639
Administrative expenses (368,637) (411,773)
________ ________
Operating loss (138,237) (225,134)
Share of operating (loss)/profit of joint ventures (37,238) 8,916
Interest receivable and similar income 70,447 121,043
Interest payable and similar charges (501) (74,926)
________ ________
(Loss) on ordinary activities before taxation (105,529) (170,101)
Taxation on ordinary activities 20,045 32,255
________ ________
(Loss) on ordinary activities after taxation (85,484) (137,846)
Other comprehensive income - -
________ ________
Total comprehensive income (85,484) (137,846)
________ ________
Earnings per share - basic and diluted
Ordinary shares (1.93)p (3.12)p
Consolidated Balance sheet
at 31 December 2021
2021 2021 2020 2020
£ £ £ £
Non Current assets
Tangible fixed assets 871 1,194
Investments in joint ventures 60,273 141,571
________ ________
61,144 142,765
Current assets
Debtors 5,121,624 4,798,266
Cash at bank and in hand 131,142 709,065
________ ________
5,252,766 5,507,331
Creditors: amounts falling
due within one year (50,478) (151,930)
________ ________
Net current assets 5,202,288 5,355,401
________ ________
Total assets less current 5,263,432 5,498,166
liabilities
Creditors: amounts falling
(33,140) (50,000)
due in more than one year
________ ________
Net assets 5,230,292 5,448,166
________ ________
Capital and reserves
Called up share capital 2,206,501 2,206,501
Capital redemption reserve 1,009,560 1,009,560
Other reserve 211,822 211,822
Merger reserve 327,060 327,060
Share premium account 375,246 375,246
Profit and loss account 1,100,103 1,317,977
________ ________
Shareholders' funds 5,230,292 5,448,166
________ ________
Consolidated Statement of Changes in Equity
For the year ended 31 December 2021
Share Capital Other Merger Share Profit Total
Capital Redemption Reserve Reserve Premium and loss
Reserve reserves
£ £ £ £ £ £ £
Balance at 2,206,501 1,009,560 211,822 327,060 375,246 1,455,823 5,586,012
31 December
2019
Loss for the - - - - - (137,846) (137,846)
year
________ ________ _______ _______ ________ ________
________
Total - - - - - (137,846) (137,846)
comprehensive
income for the
year
________ ________ _______ _______ ________ ________ ________
Balance at 2,206,501 1,009,560 211,822 327,060 375,246 1,317,977 5,448,16631 December
2020
Loss for the - - - - - (85,484) (85,484)
year
________ ________ _______ _______ ________ ________ ________
Total - - - - - (85,484) (85,484)
comprehensive
income for the
year
Dividend - - - - - (132,390) (132,390)
________ ________ _______ _______ ________ ________ _________
Balance at 2,206,501 1,009,560 211,822 327,060 375,246 1,100,103 5,230,292
31 December
2021
________ ________ _______ ______ ________ ________ ________
Consolidated statement of cashflows
for the year ended 31 December 2021
2021 2021 2020 2020
£ £ £ £
Cash flows from
operating activities
Cash (used in)/ operations (529,311) (702,840)
Interest paid (501) (74,926)
Corporation tax 20,044 32,255
________ ________
Net cash (outflow)/inflow from
operating activities (509,768) (745,511)
Investing activities
Fixed asset additions - (1,000)
Interest received 70,447 121,043
________ ________
Net cash generated from
investing
activities 70,447 120,043
Financing activities
Repayment of Bank Loan (6,212) -
Repayment of 6% Bond - (3,465,157)
Dividend paid (132,390) -
________ ________
Net cash used in
financing activities (138,602) (3,465,157)
________ ________
Net (decrease) in cash and (577,923) (4,090,625)
cash equivalents
Cash and cash equivalents at
beginning of year 709,065 4,799,690
________ ________
Cash and cash equivalents at
end of year 131,142 709,065
________ ________
Relating to:
Cash at bank and in hand 131,142 709,065
________
________
Notes to Preliminary Results for the Period Ended 31 December 2021
1. The financial information set out above does not constitute statutory
accounts for the purpose of Section 434 of the Companies Act 2006. The
financial information has been extracted from the statutory accounts of St Mark
Homes plc and is presented using the same accounting policies, which have not
yet been filed with the Registrar of companies, but on which the auditors gave
an unqualified report on 20 May 2022.
The preliminary announcement of the results for the year ended 31
December 2021 was approved by the board of directors on 20 May 2022.
2. Accounting policies
Company information
St Mark Homes Plc is a public limited company domiciled and incorporated in
England and Wales. The registered office is No 1 Railshead Road, St Margarets,
Old Isleworth, Middlesex TW7 7EP.
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 pound.
Going concern
These financial statements are prepared on the going concern basis.
In April and May 2022 the Company issued loan notes of £80,000 to several
directors and related parties to provide additional funding to the Company and
Group to alleviate a short term funding gap arising from a delay in forecast
project receipts. The loan notes are due to be repaid in September 2022. In
addition the Company has secured additional working capital funding of £150,000
as part of a loan to a joint venture company.
The directors have also prepared profit and loss and cash flow forecasts for
the five year period to 31 December 2026 which show that the Group and Company
will be able to meet their ongoing liabilities as they fall due. Sensitivity
analysis prepared on the forecasts show that further three or six month delays
in project receipts will not result in a requirement for further external debt
or equity funding. The directors have a reasonable expectation that the Group
and Company will continue in operational existence for the foreseeable future.
The directors have considered the continued impact of the COVID-19 pandemic,
and the measures taken to contain it, on the Group and because of the nature of
the Group's activities they do not consider that there will be any significant
effect on the ability of the Group to continue in business and meet its
liabilities as they fall due. Thus they continue to adopt the going concern
basis of accounting in preparing these financial statements.
The financial statements have been prepared on the historical cost convention.
The principal accounting policies adopted are set out below.
Basis of consolidation
The consolidated financial statements incorporate the results of St Mark Homes
Plc and its subsidiary undertaking, St Mark Contracts Limited as at 31 December
2021 using the acquisition method of accounting. Under this method the results
of subsidiary undertakings are included from the date of acquisition.
Jointly controlled operations and interests in joint ventures are accounted for
using the equity method of accounting. A jointly controlled operation is an
entity that is a joint venture that involves the establishment of a
corporation, partnership or other entity in which each venture has an interest.
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 benefit from
its activities.
Turnover
Turnover represents the amounts recoverable on contracts with developers.
Turnover arising from developments is recognised on exchanged sale contracts:
· when costs and revenues associated with the transaction can be reliably
measured; and
· where the probability of non-performance is considered negligible such
that the risks and rewards of ownership have passed to the buyer.
The return on loans provided for the development of residential property is
shown under interest receivable and similar income.
Investments in subsidiaries
Interests in subsidiaries are initially measured at cost and subsequently
measured at cost less any accumulated impairment losses. The investments are
assessed for impairment at each reporting date and any impairment losses or
reversals of impairment losses are recognised immediately in the profit or loss
account. 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.
Intangible fixed assets - goodwill
Negative goodwill represents the discount on the cost of acquisition over the
fair value of assets acquired. It is initially recognised as a liability and is
subsequently measured at cost less accumulated amortisation. Negative goodwill
is being amortised over the useful life of the assets acquired on a systematic
basis which is expected to be no more than two years. Negative goodwill arose
on the acquisition of St Mark Contracts Limited by the Company on 10 August
2016. The fair value of consideration paid was calculated based on the bid
price of the shares issued by the Company as consideration for the entire net
assets of St Mark Contracts Limited. The discount in the value of the assets
resulted in negative goodwill of £287,125 arising on consolidation. This
negative goodwill was fully amortised by 31 December 2019.
Property development loans
Interest receivable on property loans is recognised in the period in which it
accrues. Profit share returns are only recognised when there is sufficient
evidence and the project is sufficiently progressed to assess the likely
profitability with a reasonable level of accuracy.
Depreciation
Depreciation is provided to write off the cost, less estimated residual values,
of all tangible fixed assets on a reducing balance basis over their expected
useful lives. It is calculated at the following rates:
Office equipment - 25% per annum
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 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 tax liabilities are generally recognised for all timing differences
and deferred tax assets are recognised to the extent that it is probable that
they will be recovered against the reversal of deferred tax liabilities or
other future taxable profits. The carrying amount of deferred tax assets is
reviewed at each reporting end date and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all
or part of the asset to be recovered. Deferred tax is calculated at the tax
rates that are expected to apply in the year when the liability is settled or
the asset is realised. Deferred tax is charged or credited in the profit and
loss account, except when it relates to items charged or credited directly to
equity, in which case the deferred tax is also dealt with in equity. Deferred
tax assets and liabilities are offset when the company has a legally
enforceable right to offset current tax assets and liabilities and the deferred
tax assets and liabilities relate to taxes levied by the same tax authority.
Leased assets
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 the profit and loss account
so as to produce a constant periodic rate of interest on the remaining balance
of the liability.
Liquid resources
For the purposes of the cash flow statement, liquid resources are defined as
short term bank deposits.
Cash and cash equivalents
Cash and cash equivalents 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.
Financial assets
The Company 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 assets are recognised in the
company's balance sheet when the company becomes party to the contractual
provisions of the instrument.
Financial assets are classified into specified categories. The classification
depends on the nature and purpose of the financial assets and is determined at
the time of recognition. Basic financial assets, which include trade and other
receivables 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 liabilities and equity
Financial liabilities and equity are classified according to the substance of
the financial instrument's contractual obligations, rather than the financial
instrument's legal form. Basic financial liabilities are initially measured at
transaction price, unless the arrangement constitutes a financing transaction,
where the debt instrument is measured at the present value of the future
receipts discounted at a market rate of interest. Other financial liabilities
are initially recognised at fair value and are subsequently re-measured at
their fair value with changes recognised through the profit and loss account.
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received,
net of direct issue costs. Dividends payable on equity instruments are
recognised as liabilities once they are no longer at the discretion of the
company.
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 wholly recognised as liabilities are recognised as expenses
and classified within interest payable.
3. Earnings per share
Earnings per ordinary share has been calculated using the weighted average
number of shares in issue during the financial year. The weighted average
number of Ordinary shares in issue was 4,413,002 (2020: 4,413,002) and the loss
after tax attributable to ordinary shares was £85,484 loss (2020: £137,846
loss).
2021 2020
£ £
Numerator
Earnings used as the calculation of basic and (85,484) (137,846)
diluted EPS
________ ________
Number Number
Denominator
Weighted average number of ordinary shares used in 4,413,002 4,413,002
basic and diluted EPS
________ ________
There are no share options or other potentially dilutive equity instruments in
issue than can dilute the earnings per share.
END
(END) Dow Jones Newswires
May 23, 2022 03:17 ET (07:17 GMT)
1 Year St Mark Homes Chart |
1 Month St Mark Homes Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
