SJS (4) Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02232689 (England and Wales)

SJS (4) Limited

Financial Statements

for the Year Ended 30 September 2021

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

O A Quarmby

D N Murray

P R P Morris

REGISTERED OFFICE:

33 George Street

Wakefield

West Yorkshire

WF1 1LX

REGISTERED NUMBER:

02232689 (England and Wales)

AUDITORS:

SMH Jolliffe Cork Audit Ltd

Chartered Accountants & Statutory Auditor

33 George Street

Wakefield

West Yorkshire

WF1 1LX

CURRENT ASSETS

Stocks

2,269,262

1,159,272

Debtors

4

131,604

32,226

Cash at bank

13,487

76,319

2,414,353

1,267,817

CREDITORS

Amounts falling due within one year

5

2,414,352

248,051

NET CURRENT ASSETS

1

1,019,766

TOTAL ASSETS LESS CURRENT LIABILITIES

1

1,019,766

CREDITORS

Amounts falling due after more than one year

6

-

1,150,000

NET ASSETS/(LIABILITIES)

1

(130,234

)

CAPITAL AND RESERVES

Called up share capital

8

10,100

10,100

Retained earnings

(10,099

)

(140,334

)

SHAREHOLDERS' FUNDS

1

(130,234

)

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 22 March 2022 and were signed on its behalf by:

O A Quarmby - Director

1.	STATUTORY INFORMATION

SJS (4) Limited 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 Company Information page.

The functional and presentation currency for the company is the pound sterling (£). All financial information presented has been rounded to the nearest (£), unless otherwise stated.

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.

Going concern

During the financial year and up to the date of signing these accounts, St James Securities Group Limited and its subsidiary companies, which includes SJS (4) Limited, have undertaken a major transformation of the Group.

For the last four years, the Group has spent the majority of its time and financial resources working on a regeneration proposal for the Becketwell area of Derby City Centre. So far, the regeneration has involved a close collaboration with Derby City Council, who are a major landowner, together with the private sector. The Group has now either purchased or optioned the various land interests that comprise the site, which extends to 6 acres and represents almost 5% of the city centre. One of the Group's other subsidiary companies, SJS (Derby) Limited, obtained Outline Planning Permission on 4 September 2020, for mixed use, centred around a new public square. This is projected to deliver 680,000 sq.ft of development plus a 400 space MSCP, generating £200m of Gross Development Value. The development will progress in several phases, undertaken by different subsidiary companies, and is expected to be fully completed within the next 5 to 7 years.

Over the last 12 months, the development has transitioned from the land assembly and planning stage, to the completion of three development agreements and the commencement of construction on the first phase.

On 27 July 2020, SJS (4) Limited entered into a Development Agreement to build a £1.8m Public Square for Derby City Council. The Public Square is owned by Derby City Council and will be the focal point for the whole development. Work commenced on 8 February 2021 and is ongoing. It is being Forward Funded by Derby City Council and it is anticipated that it will be completed by April 2023.

On 25 May 2021, another Group Member, SJS (Derby) Limited, became unconditional on a Forward Funding Agreement with Grainger Land & Regeneration Limited. On this date, work commenced to build an 11 storey, 259 unit Build to Rent apartment building, with 6,700 sq.ft of commercial space. Grainger Land & Regeneration Limited is Forward Funding the development, during the course of construction, and it will deliver a capital value of £37.375m when completed in April 2023.

On 24 February 2022, SJS (4) Limited became unconditional on a Forward Funding Agreement with Derby City Council to build a 3,500 capacity Arena, on land which SJS (4) Limited owned at Becketwell. Demolition on the existing building commenced on 7 March 2022 and will be completed by the end of October 2022. Construction of the new Arena will commence at the beginning of 2023. Derby City Council is Forward Funding the development and it will deliver a capital value of £45.8m when completed in October 2024.

Going concern - continued

Other property assets and land options have been acquired by SJS (4) Limited and SJS (2) Limited, ensuring the development and completion of the Becketwell regeneration. These other property assets and land will be utilised in future phases and plans for a hotel, MSCP, Student Village and office accommodation are in the pipeline.

In order to accelerate the whole project within a quicker timeline, the Group sought a funding partner to assist in the financing of the development. On 5 October 2021, St James (Becketwell) Limited, a subsidiary of St James Securities Group Limited and the intermediate owner of SJS (4) Limited, SJS (Derby) Limited and SJS (2) Limited, secured a Term Loan Agreement with a third party lender. This funding partnership has enabled the Group to repay its former loan with a commercial finance provider.

When making their assessment of the company's ability to continue as a going concern, the directors acknowledge that uncertainties do exist over profitability and availability of funds. However, after considering the above, the directors of SJS (4) Limited have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover

Turnover comprises the invoiced value of goods and services supplied by the company, net of value added tax and trade discounts. In the case of long term contracts turnover is calculated as the proportion of total expected amounts recoverable for each contract.

Other operating income

Rental income is recognised on a straight line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income.

Stocks

Stocks predominantly relate to work in progress. Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

Long term contracts

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 is calculated on a prudent basis, to reflect the proportion of work carried out at the year end, by recording the turnover and related costs as contract activity progresses. Turnover is calculated as the proportion of total expected amounts recoverable for each contract. Profits derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on contracts in the year in which they are first foreseen.

Financial instruments

The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, 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.

The company has no 'Other financial assets'.

Financial assets are derecognised when (a) the contractual rights to the cashflow from the asset expire or are settled or (b) substantially all the risks and rewards of ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other creditors and hire purchase contracts, are initially recognised 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.

The company has no 'Other financial liabilities'.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

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.

3.	EMPLOYEES AND DIRECTORS

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

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

89,913

3,925

Amounts owed by group undertakings

16,274

-

Other debtors

479

-

Prepayments and accrued income

24,938

28,301

131,604

32,226

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Other loans

1,950,000

-

Trade creditors

150,713

18,342

Amounts owed to group undertakings

302,862

172,776

VAT

1,260

16,245

Other creditors

-

221

Accruals and deferred income

9,517

40,467

2,414,352

248,051

6.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Other loans

-

1,150,000

7.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Other loans

1,950,000

1,150,000

The other loans are secured by way of a fixed charge over the freehold land and buildings at Colyear Street, Derby, the leasehold land and buildings known as Mezzanine Floor, Laurie House, Colyear Street, Derby and the freehold land and buildings at 13-15 Victoria Street, Derby. Security has also been provided in the form of a negative pledge and a floating charge over all assets of the company.

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

10,100

Ordinary

£1

10,100

10,100

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

The Report of the Auditors was unqualified.

Claire Lawton FCA DChA (Senior Statutory Auditor)

for and on behalf of SMH Jolliffe Cork Audit Ltd

10.	RELATED PARTY DISCLOSURES

11.	POST BALANCE SHEET EVENTS

On 5 October 2021, SJS (4) Limited's immediate Parent Company, St James (Becketwell) Limited has drawn down a new Term Loan from a third party lender. This funding has enabled the SJS (4) Limited to repay its former loan with a commercial finance provider and provide working capital within SJS (4) Limited, SJS (2) Limited and SJS (Derby) Limited.

On 24 February 2022, SJS (4) Limited became unconditional on a Forward Funding Agreement with Derby City Council to build a 3,500 capacity Arena, on land which SJS (4) Limited owned at Becketwell. Demolition on the existing building commenced on 7 March 2022 and will be completed by the end of October 2022. Construction of the new Arena will commence at the beginning of 2023. Derby City Council is Forward Funding the development and it will deliver a capital value of £45.8m when completed in October 2024.

12.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is O A Quarmby.