Joseph Homes Ltd - Limited company accounts 18.2

REGISTERED NUMBER: 06601040 (England and Wales)

REPORT OF THE DIRECTORS AND

UNAUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2018

FOR

JOSEPH HOMES LTD

Page

Company Information

1

Report of the Directors

2

Consolidated Income Statement

4

Consolidated Balance Sheet

5

Company Balance Sheet

7

Consolidated Statement of Changes in Equity

9

Company Statement of Changes in Equity

10

Notes to the Consolidated Financial Statements

11

DIRECTORS:

Mr J V T Rajah

Mr P Dipino

REGISTERED OFFICE:

8 Waterloo Court

10 Theed Street

London

SE1 8ST

REGISTERED NUMBER:

06601040 (England and Wales)

ACCOUNTANTS:

Raffingers LLP

Chartered Certified Accountants

19-20 Bourne Court

Southend Road

Woodford Green

Essex

IG8 8HD

The directors present their report with the financial statements of the company and the group for the year ended

31 May 2018.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the developer of real estate in the UK.

REVIEW OF BUSINESS

Why

To create and innovate in everything we do, the right way every time.

How

By creating great products, we can be proud of using the principles of trust, transparency, balance and an exacting

attention to detail. Our success is measured by the benefit we bring to those we affect.

Off the back of great sales in 2016-2017 we have invested heavily in the infrastructure of the business including

bolstering the senior management team and the appointment of a Non-Executive Director and a highly experienced CFO.

Together with further cautious investment in support staff across the group to gear up resources to accommodate a

growing pipeline, we expect profitability to improve significantly over the coming years.

I am proud to be in construction on two major sites. The Tramyard in Balham on Balham High Road, is well under way

and is set to deliver 70 well-designed apartments that will offer something unique to the local market. No 1. Millbrook,

in Mill Hill that we acquired last year now has planning and construction is well under way. We will be delivering 33

houses and 111 apartments to the local market and aim to start sales in the next financial year.

Our planning team is very busy this year with Sylvan Grove, in Peckham. We aim to deliver a mixed-use scheme over

two towers of 30 and 10 storeys. Also, our acquisition of our site in Rockingham Street, Elephant and Castle will bring a

new era to Joseph Homes development profile. Here we aim to have our first alternative use scheme of either an office

or hotel over 20 storeys. Planning is due in 2019.

The results this year illustrate the significant investment made into the company that will prove fruitful in the financial

year ending May 2020.

Principal Risks & Opportunities

The key business risks affecting the Company relate to its operation within a highly competitive market place, influenced

by wider economic and political conditions. There is however intense pressure on the Government to promote housing

delivery and policy seems to be moving towards the support of smaller developers.

Our size and commitment to our values gives us the opportunity to be creative and innovative and gives us an advantage

over our larger competitors.

I am looking forward to another exciting year of growth in 2019-2020.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 June 2017 to the date of this report.

Mr J V T Rajah

Mr P Dipino

Other changes in directors holding office are as follows:

Mr S Chowdhury ceased to be a director after 31 May 2018 but prior to the date of this report.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

Mr J V T Rajah - Director

29 March 2019

TURNOVER

6,416,641

11,317,500

Cost of sales

6,327,536

10,550,427

GROSS PROFIT

89,105

767,073

Administrative expenses

1,528,728

216,363

(1,439,623

)

550,710

Other operating income

1,453,349

845,561

OPERATING PROFIT

5

13,726

1,396,271

Loan written off

6

1,736,414

-

(1,722,688

)

1,396,271

Amounts written off investments

-

79,165

(1,722,688

)

1,317,106

Interest payable and similar expenses

790,627

794

(LOSS)/PROFIT BEFORE TAXATION

(2,513,315

)

1,316,312

Tax on (loss)/profit

-

274,720

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(2,513,315

)

1,041,592

(Loss)/profit attributable to:

Owners of the parent

(2,502,511

)

1,112,728

Non-controlling interests

(10,804

)

(71,136

)

(2,513,315

)

1,041,592

FIXED ASSETS

Tangible assets

9

10,137

5,575

Investments

10

Interest in associate

1,300,000

-

1,310,137

5,575

CURRENT ASSETS

Stocks

860,744

4,604,000

Debtors

11

2,155,641

4,039,204

Cash at bank and in hand

255,200

249,383

3,271,585

8,892,587

CREDITORS

Amounts falling due within one year

12

6,002,990

7,806,115

NET CURRENT (LIABILITIES)/ASSETS

(2,731,405

)

1,086,472

TOTAL ASSETS LESS CURRENT LIABILITIES

(1,421,268

)

1,092,047

NET (LIABILITIES)/ASSETS

(1,421,268

)

1,092,047

CAPITAL AND RESERVES

Called up share capital

1

1

Retained earnings

(1,410,465

)

1,166,515

SHAREHOLDERS' FUNDS

(1,410,464

)

1,166,516

NON-CONTROLLING INTERESTS

13

(10,804

)

(74,469

)

TOTAL EQUITY

(1,421,268

)

1,092,047

The company and the group are entitled to exemption from audit under Section 477 of the Companies Act 2006 for the

year ended 31 May 2018.

The members have not required the company and the group to obtain an audit of its financial statements for the year

ended 31 May 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the group keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company and the group as at the end of each financial year and of the group's profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company and the group.

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006

relating to small companies.

The financial statements were approved by the Board of Directors on 29 March 2019 and were signed on its behalf by:

Mr J V T Rajah - Director

FIXED ASSETS

Tangible assets

9

10,137

5,575

Investments

10

751

648

10,888

6,223

CURRENT ASSETS

Stocks

93,712

-

Debtors

11

2,702,300

11,810,935

Cash at bank

249,575

249,378

3,045,587

12,060,313

CREDITORS

Amounts falling due within one year

12

4,859,901

11,449,379

NET CURRENT (LIABILITIES)/ASSETS

(1,814,314

)

610,934

TOTAL ASSETS LESS CURRENT LIABILITIES

(1,803,426

)

617,157

CAPITAL AND RESERVES

Called up share capital

1

1

Retained earnings

(1,803,427

)

617,156

SHAREHOLDERS' FUNDS

(1,803,426

)

617,157

Company's (loss)/profit for the financial year

(2,420,583

)

543,788

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 8 March 2019 and were signed on its behalf by:

Mr J V T Rajah - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1 April 2016

1

85,787

85,788

(3,333

)

82,455

Changes in equity

Dividends

-

(32,000

)

(32,000

)

-

(32,000

)

Total comprehensive income

-

1,153,544

1,153,544

(71,136

)

1,082,408

Balance at 31 May 2017

1

1,207,331

1,207,332

(74,469

)

1,132,863

Prior year adjustment

-

(40,816

)

(40,816

)

-

(40,816

)

As restated

1

1,166,515

1,166,516

(74,469

)

1,092,047

Changes in equity

Total comprehensive income

-

(2,576,980

)

(2,576,980

)

(10,804

)

(2,587,784

)

1

(1,410,465

)

(1,410,464

)

(85,273

)

(1,495,737

)

Acquisition of non-controlling interest

-

-

-

74,469

74,469

Balance at 31 May 2018

1

(1,410,465

)

(1,410,464

)

(10,804

)

(1,421,268

)

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2016

1

105,368

105,369

Changes in equity

Dividends

-

(32,000

)

(32,000

)

Total comprehensive income

-

584,604

584,604

Balance at 31 May 2017

1

657,972

657,973

Prior year adjustment

-

(40,816

)

(40,816

)

As restated

1

617,156

617,157

Changes in equity

Total comprehensive income

-

(2,420,583

)

(2,420,583

)

Balance at 31 May 2018

1

(1,803,427

)

(1,803,426

)

1.	STATUTORY INFORMATION

Joseph Homes Ltd is a private company, limited by shares , registered in England and Wales. The company's

registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

20% on cost

Computer equipment

-

33% on cost

Investments in associates

Investments in associate undertakings are recognised at cost.

Stocks

Work in progress is valued at the lower of cost and net realisable value.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in

bringing stocks to their present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income

Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in

equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 4 (2017 - 2 ) .

5.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.4.16

Year Ended

to

31.5.18

31.5.17

as restated

£

£

Depreciation - owned assets

3,245

2,295

6.	EXCEPTIONAL ITEMS

Period

1.4.16

Year Ended

to

31.5.18

31.5.17

as restated

£

£

Exceptional items

1,400,000

-

Loan written off

(1,736,414

)

-

(336,414

)

-

7.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not

presented as part of these financial statements.

8.	PRIOR YEAR ADJUSTMENT

The prior year adjustments relate to the costs associated with last year's financial statements.

9.	TANGIBLE FIXED ASSETS

Group

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 June 2017

-

7,870

7,870

Additions

6,187

1,620

7,807

At 31 May 2018

6,187

9,490

15,677

DEPRECIATION

At 1 June 2017

-

2,295

2,295

Charge for year

399

2,846

3,245

At 31 May 2018

399

5,141

5,540

NET BOOK VALUE

At 31 May 2018

5,788

4,349

10,137

At 31 May 2017

-

5,575

5,575

Company

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 June 2017

-

7,870

7,870

Additions

6,187

1,620

7,807

At 31 May 2018

6,187

9,490

15,677

DEPRECIATION

At 1 June 2017

-

2,295

2,295

Charge for year

399

2,846

3,245

At 31 May 2018

399

5,141

5,540

NET BOOK VALUE

At 31 May 2018

5,788

4,349

10,137

At 31 May 2017

-

5,575

5,575

10.	FIXED ASSET INVESTMENTS

Fixed asset investments are held at cost less amounts provided for permanent diminution in value. The carrying

values of fixed asset investment are reviewed for impairment where events or changes in circumstance indicate

the carrying value may not be recoverable.

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2018

2017

2018

2017

as restated

as restated

£

£

£

£

Trade debtors

28,140

240,000

28,140

-

Amounts owed by group undertakings

-

-

652,508

111,227

Amounts owed by associates

2,001,288

3,482,980

1,934,083

11,619,951

Other debtors

126,213

316,224

87,569

79,757

2,155,641

4,039,204

2,702,300

11,810,935

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2018

2017

2018

2017

as restated

as restated

£

£

£

£

Bank loans and overdrafts

250,954

5,368,405

-

2,436,913

Trade creditors

656,261

350,791

493,017

350,790

Amounts owed to group undertakings

-

-

1,165,588

6,983,303

Amounts owed to associates

1,413,015

1,241,254

772,235

1,035,066

Taxation and social security

222,013

312,176

(2,184

)

120,548

Other creditors

3,460,747

533,489

2,431,245

522,759

6,002,990

7,806,115

4,859,901

11,449,379

13.	NON-CONTROLLING INTERESTS

These consist of the shareholdings in the subsidiary undertakings by the outside investors.

14.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the

financial statements.