Sir Joseph Isherwood Limited - Period Ending 2021-12-31

SIR JOSEPH ISHERWOOD LIMITED - Company Information

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Registration number: 02789588

Sir Joseph Isherwood Limited

Filleted Annual Report and Financial Statements

for the Year Ended 31 December 2021

Sir Joseph Isherwood Limited

Contents

Company Information	1
Statement of Financial Position	2
Notes to the Financial Statements	3 to 12

Sir Joseph Isherwood Limited

Company Information

Directors

P Balmer

P Rossiter

S C Thompson

Company secretary

S C Thompson

Registered office

5th Floor
Centre For Advanced Industry
Coble Dene
North Shields
NE29 6DE

Auditor

MHA Tait Walker
Chartered Accountants & Statutory Auditor
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS

Sir Joseph Isherwood Limited

(Registration number: 02789588)
Statement of Financial Position as at 31 December 2021

	Note	2021 £	2020 £
Fixed assets
Tangible assets	6	116,437	127,922
Investments	7	1	1
		116,438	127,923
Current assets
Stocks	8	381,350	182,115
Debtors	9	6,004,747	6,335,498
Cash at bank and in hand	10	3,908,155	3,157,850
		10,294,252	9,675,463
Creditors: Amounts falling due within one year	11	(711,514)	(1,074,591)
Net current assets		9,582,738	8,600,872
Total assets less current liabilities		9,699,176	8,728,795
Creditors: Amounts falling due after more than one year	11	-	(6,671)
Provisions for liabilities		(16,442)	(15,952)
Net assets		9,682,734	8,706,172
Capital and reserves
Called up share capital		13,000	13,000
Profit and loss account		9,669,734	8,693,172
Total equity		9,682,734	8,706,172

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies' regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies' regime and the option not to file the Income Statement has been taken.

Approved and authorised by the Board on 28 March 2022 and signed on its behalf by:

.........................................
P Rossiter
Director

Sir Joseph Isherwood Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is 5th Floor, Centre For Advanced Industry, Coble Dene, North Shields, NE29 6DE.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

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

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are prepared in sterling which is the functional currency of the entity.

Group accounts not prepared

The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its subsidiary comprise a small group.

Going concern

The company meets its day to day working capital requirements through cash generated from operations and its existing significant cash resources. The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonably possible changes in trading performance.

In the directors assessment of reasonably possible changes they have considered the impact of the COVID-19 virus on the business and have a business continuity plan in place. The directors have also received confirmation of support from the ultimate parent undertaking.

Having considered the current cash forecasts of the Company the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least 12 months from the date of signing these financial statements. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Sir Joseph Isherwood Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2	Accounting policies (continued)

Revenue recognition

Turnover represents the value of goods invoiced and the value of the work performed on contracts during the year which includes attributable profits when the outcome of the contracts can be assessed with reasonable certainty.
Profits are not recognised on contracts until work performed exceeds 50% of the expected total contract costs.

Foreign currency transactions and balances

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Sir Joseph Isherwood Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2	Accounting policies (continued)

	Asset class	Depreciation method and rate
	Plant and machinery	10 years straight line
	Motor vehicles	5 years straight line
	Office equipment	5 - 10 years straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Intangible assets

Intangible assets are stated at historic purchase cost less accumulated amortisation. Expenditure on software development of major new products is capitalised and amortised over a period of not more than five years. Five years is the maximum period over which economic benefits could reasonably be expected to arise from such assets. Such costs are only capitalised where the outcome of these projects is assessed as being reasonably certain as regards viability and technical feasibility. All other expenditure is expensed as incurred.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Development expenditure	5 years straight line

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment. Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Stocks

Work in progress on long term contracts is stated at cost of raw materials, labour and attributable overheads. Long term contracts are assessed on a contract by contract basis and where the outcome can be assessed with reasonable certainty before its conclusion, the attributable profit is recognised in profit and loss as the difference between the reported turnover and related costs for that contract. The excess of amounts received or invoiced over amounts recorded as turnover is classified under creditors due within one year as payments invoiced on account.

Sir Joseph Isherwood Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2	Accounting policies (continued)

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Income Statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Statement of Financial Position as a finance lease obligation.

Lease payments are apportioned between finance costs in the Income Statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 24 (2020 - 23).

Sir Joseph Isherwood Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

4	Auditors' remuneration

	2021 £	2020 £
Audit of the financial statements	6,695	6,375

The above fee includes a charge in relation to the audit of the parent company. This has not been separately identified.

5	Intangible assets

	Development costs £
Cost or valuation
At 1 January 2021	222,713
At 31 December 2021	222,713
Amortisation
At 1 January 2021	222,713
At 31 December 2021	222,713
Carrying amount
At 31 December 2021	-

Sir Joseph Isherwood Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

6	Tangible assets

	Plant and machinery £	Office equipment £	Motor vehicles £	Total £
Cost or valuation
At 1 January 2021	66,603	214,885	74,695	356,183
Additions	2,550	22,675	-	25,225
Disposals	-	(2,554)	-	(2,554)
At 31 December 2021	69,153	235,006	74,695	378,854
Depreciation
At 1 January 2021	60,840	158,497	8,924	228,261
Charge for the year	1,785	19,986	14,939	36,710
Eliminated on disposal	-	(2,554)	-	(2,554)
At 31 December 2021	62,625	175,929	23,863	262,417
Carrying amount
At 31 December 2021	6,528	59,077	50,832	116,437
At 31 December 2020	5,763	56,388	65,771	127,922

7	Investments

	2021 £	2020 £
Investments in subsidiaries	1	1

Subsidiaries	£
Cost or valuation
At 1 January 2021	1
Provision
At 1 January 2021 and 31 December 2021	-
Carrying amount
At 31 December 2021	1
At 31 December 2020	1

Sir Joseph Isherwood Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

7	Investments (continued)

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2021	2020
Subsidiary undertakings
Isherwoods ILS Services PTY Ltd	Level 13 664 Collins Street Docklands VIC 3008	Ordinary	100%	100%
	Australia

Stocks

	2021 £	2020 £
Work in progress	381,350	182,115

Sir Joseph Isherwood Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

Debtors

	2021 £	2020 £
Trade debtors	639,033	264,076
Amounts owed by group undertakings	1,215,938	1,959,162
Prepayments and accrued income	397,935	298,045
Other debtors	3,680,949	3,789,952
Corporation tax asset	70,892	24,263
	6,004,747	6,335,498

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

During 2017, Sir Joseph Isherwood provided a loan to Privinest Holding Investments LLC, a company with common ultimate controlling directors. The year end balance of £2,000,000 has been included within other debtors. Interest at 3% has been accrued and included within prepayments and accrued income. The loan is due for repayment on 24 April 2022.

During 2019, Sir Joseph Isherwood provided a loan to Constructions Mecaniques De Normandie S.A., a company with common ultimate controlling directors. The year end balance of €2,000,000 (£1,680,947) has been included within other debtors. Interest at 2.5% has been accrued and included within prepayments and accrued income. The loan and all accrued interest is due for repayment on 31 July 2022.

10	Cash and bank and in hand

Restricted cash

Included within cash are amounts totalling £1,962,726 (2020: £1,944,468) held within the Lebanon. At present, Sir Joseph Isherwood Limited is restricted from remitting these funds out of Lebanon due to local exchange control regulations.

Sir Joseph Isherwood Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

Creditors

Creditors: amounts falling due within one year

	2021 £	2020 £
Due within one year
Hire purchase	6,671	6,660
Trade creditors	15,750	109,970
Amounts owed to group undertakings	152,682	292,864
Taxation and social security	104,550	152,198
Accruals and deferred income	178,043	233,236
Other creditors	253,818	279,663
	711,514	1,074,591

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

Creditors: amounts falling due after more than one year

	2021 £	2020 £
Due after one year
Hire purchase	-	6,671

12	Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

	2021 £	2020 £
Land and buildings
Not later than one year	73,843	73,843
Later than one year and not later than five years	295,372	295,372
Later than five years	182,686	256,529
	551,901	625,744

Sir Joseph Isherwood Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

13	Parent and ultimate parent undertaking

The company's immediate parent is S J I Holdings Limited, incorporated in England which holds all the issued share capital of the company.

The ultimate parent is P I Dev Sal (Holding), incorporated in Lebanon of whom prepares the largest and smallest group of consolidated accounts. The consolidated financial statements of P I Dev Sal (Holding) are available from 157 Marfaa', Rue 73, Saad Zaghloul Street, 2012 7306 Solidere, Beirut, Lebanon.

Mr A Safa and Mr A I Safa are considered to be the ultimate controlling party by virtue of their effective controlling interest in the equity shares of the company via Iskandar Safa (Civil Company).

14	Audit report

The Independent Auditor's Report was unqualified.

The name of the Senior Statutory Auditor who signed the audit report on 30 March 2022 was Christopher Potter BA (Hons) ACA, who signed for and on behalf of MHA Tait Walker .

MHA Tait Walker is a trading name of Tait Walker LLP.