JNF Developments Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC232602 (Scotland)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

JNF DEVELOPMENTS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

to

9

DIRECTORS:

Mrs C M Smith

Mr J B Smith Jnr

SECRETARY:

Mrs C M Smith

REGISTERED OFFICE:

Little Mains

Crichie Woods

Stuartfield

PETERHEAD

Aberdeenshire

AB42 5DY

REGISTERED NUMBER:

SC232602 (Scotland)

AUDITORS:

Bain Henry Reid

Statutory Auditors

Chartered Accountants

4 West Craibstone Street

Bon-Accord Square

ABERDEEN

AB11 6YL

FIXED ASSETS

Tangible assets

4

5,858

15,347

Investments

5

2

2

Investment property

6

1,510,713

1,510,713

1,516,573

1,526,062

CURRENT ASSETS

Stocks

7

2,864,934

2,843,697

Debtors

8

1,226,692

1,744,760

Cash at bank

38,938

67,662

4,130,564

4,656,119

CREDITORS

Amounts falling due within one year

9

3,152,190

3,855,334

NET CURRENT ASSETS

978,374

800,785

TOTAL ASSETS LESS CURRENT LIABILITIES

2,494,947

2,326,847

CREDITORS

Amounts falling due after more than one year

10

(2,167,787

)

(1,980,003

)

PROVISIONS FOR LIABILITIES

12

(445

)

(406

)

NET ASSETS

326,715

346,438

CAPITAL AND RESERVES

Called up share capital

200

200

Share premium

658,396

658,396

Retained earnings

(331,881

)

(312,158

)

SHAREHOLDERS' FUNDS

326,715

346,438

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 28 September 2022 and were signed on its behalf by:

Mr J B Smith Jnr - Director

1.	STATUTORY INFORMATION

JNF Developments Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Preparation of consolidated financial statements

The financial statements contain information about JNF Developments Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Related party exemption

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.

Significant judgements and estimates

Management have considered the consequences of Covid-19 and other events and conditions and has determined that they do not create a material uncertainty that casts significant doubt upon the entity's ability to continue as a going concern. It expects that Covid-19 might have some impact, though not significant, for example in relation to expected future performance, or the effects on some future asset valuations.

Going concern

The directors, having made due and careful enquiry, are of the opinion that the company has adequate working capital to execute its operations over the next 12 months. The directors, therefore, have made an informed judgement, at the time of approving the financial statement, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for at least 12 months. As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

-

the amount of revenue can be measured reliably;

-

it is probable that the company will receive consideration due under the contract;

-

the stage of completion of the contract at the end of the reporting period can be measured reliably; and

-

the costs incurred and the costs to complete can be measured reliably.

Tangible fixed assets

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

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Computer equipment

-

25% on reducing balance

Cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposal are determined by comparing proceeds with the carrying amount and are recognised in the Income Statement.

Investments in subsidiaries

Investments in subsidiaries are measured at cost less accumulated impairment.

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Income Statement.

Work in progress

Profit is recognised on house sales on legal completion and when construction is complete. Profit on long term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.

Work in progress includes interest payable on borrowings during the development period up to the completion date of the relevant job

Debtors

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

Taxation

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more that three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans from related parties and group undertakings. These are measured at amortised cost and are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

Creditors

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

Interest income

Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Borrowing costs

All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they were incurred.

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the company but are presented separately due to their size or incidence.

Shared equity

The company offers shared equity home ownership schemes under which qualifying home buyers can defer payment as part of an agreed sales price up to a maximum of 20% until the earlier of 10 years, remortgage or resale of property. On the occurrence of one of these events, the company will receive a repayment based on its contributed equity percentage and the applicable market value of the property as determined by a member of the Royal Institute fo Chartered Surveyors. Early or part repayment is allowable under the scheme and amounts are secured by way of a second charge over the property.

Employer Financed Retirement Benefit Schemes (EFRBS)

In a previous accounting period, the company established EFRBS for the benefit of its officers, employees and their wider families, The JNF Developments Limited 2013 EFRBS ('the Scheme').

In accordance with FRS 102 ' Employee Benefit Trusts and other intermediate payment arrangements', the Company does not include the assets and liabilities of the Scheme on its balance sheet to the extent that it considers that it will not retain any future economic benefit from the assets of the Scheme and will not have control of the rights or other access to those future economic benefits.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 (2020 - 2 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Computer

machinery

fittings

equipment

Totals

£

£

£

£

COST

At 1 January 2021

33,781

10,550

6,795

51,126

Additions

-

-

1,665

1,665

Disposals

(19,094

)

(10,550

)

(3,458

)

(33,102

)

At 31 December 2021

14,687

-

5,002

19,689

DEPRECIATION

At 1 January 2021

25,806

4,993

4,980

35,779

Charge for year

1,773

746

359

2,878

Eliminated on disposal

(16,012

)

(5,739

)

(3,075

)

(24,826

)

At 31 December 2021

11,567

-

2,264

13,831

NET BOOK VALUE

At 31 December 2021

3,120

-

2,738

5,858

At 31 December 2020

7,975

5,557

1,815

15,347

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2021

and 31 December 2021

2

NET BOOK VALUE

At 31 December 2021

2

At 31 December 2020

2

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Alert Investments Limited

Registered office: Scotland

Nature of business: Non-trading company

%

Class of shares:

holding

Ordinary

100.00

2021

2020

£

£

Aggregate capital and reserves

4,435

4,435

Profit for the year

-

6

Dan Mor Developments Limited

Registered office: Scotland

Nature of business: Property development and commercial property rent

%

Class of shares:

holding

Ordinary

50.00

2021

2020

£

£

Aggregate capital and reserves

106,524

69,560

Profit/(loss) for the year

36,964

(11,403

)

Blue Ocean Holdings Ltd

Registered office: Scotland

Nature of business: Property development

%

Class of shares:

holding

Ordinary

50.00

2021

2020

£

£

Aggregate capital and reserves

86,007

87,125

Loss for the year

(1,118

)

(891

)

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2021

and 31 December 2021

1,510,713

NET BOOK VALUE

At 31 December 2021

1,510,713

At 31 December 2020

1,510,713

On 27 April 2018 the trade and assets of Alert Investments Limited were hived up into JNF Developments Limited, which included investment property which was valued in 2018.

The 2018 valuations were made by independent external valuers, on an open market value for existing use basis.

The directors consider the 2018 valuations to still be an appropriate valuation of the properties.

7.

STOCKS

2021

2020

£

£

Work in progress

764,934

743,697

Held for resale

2,100,000

2,100,000

2,864,934

2,843,697

8.

DEBTORS

2021

2020

£

£

Amounts falling due within one year:

Trade debtors

364

440

Amounts owed by group undertakings

-

523,219

Amounts owed by associates

1,125,000

1,125,000

Other debtors

101,328

9,101

1,226,692

1,657,760

Amounts falling due after more than one year:

Other debtors

-

87,000

Aggregate amounts

1,226,692

1,744,760

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

69,146

57,309

Trade creditors

27,482

9,482

Amounts owed to group undertakings

2,374,167

104,435

Taxation and social security

-

839

Other creditors

681,395

3,683,269

3,152,190

3,855,334

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans

1,380,402

1,400,619

Other creditors

787,385

579,384

2,167,787

1,980,003

11.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Bank loans

1,449,548

1,457,928

Bank loans are secured by standard securities over development sites and by a bond and floating charge over the assets of the company. The main bank loan is due for repayment in a single instalment due April 2023 and interest is charged at base rate plus 2.6%.

12.	PROVISIONS FOR LIABILITIES

2021

2020

£

£

Deferred tax

Accelerated capital allowances

445

406

Deferred

tax

£

Balance at 1 January 2021

406

Provided during year

39

Balance at 31 December 2021

445

13.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Karen E Gardiner BA CA CTA (Senior Statutory Auditor)

for and on behalf of Bain Henry Reid

14.	RELATED PARTY DISCLOSURES

15.	ULTIMATE CONTROLLING PARTY