SJS (2) Limited - Accounts to registrar (filleted) - small 23.1.5

REGISTERED NUMBER: 05635922 (England and Wales)

SJS (2) Limited

Financial Statements

for the Year Ended 30 September 2022

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

O A Quarmby

D N Murray

P R P Morris

REGISTERED OFFICE:

33 George Street

Wakefield

West Yorkshire

WF1 1LX

REGISTERED NUMBER:

05635922 (England and Wales)

AUDITORS:

SMH Jolliffe Cork Audit Ltd

Chartered Accountants & Statutory Auditor

33 George Street

Wakefield

West Yorkshire

WF1 1LX

CURRENT ASSETS

Stocks

482,069

214,005

Debtors

4

275

16,787

Cash at bank

7,364

50

489,708

230,842

CREDITORS

Amounts falling due within one year

5

497,135

230,841

NET CURRENT (LIABILITIES)/ASSETS

(7,427

)

1

TOTAL ASSETS LESS CURRENT LIABILITIES

(7,427

)

1

CAPITAL AND RESERVES

Called up share capital

6

1

1

Retained earnings

(7,428

)

-

SHAREHOLDERS' FUNDS

(7,427

)

1

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 23 June 2023 and were signed on its behalf by:

O A Quarmby - Director

1.	STATUTORY INFORMATION

SJS (2) Limited is a private limited 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 company's principal place of business is 36 Park Cross Street, Leeds, LS1 2QH.

The functional and presentation currency for the company is 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 (2) Limited, have continued to spend the majority of their time and financial resources working on its £200m regeneration of the Becketwell area of Derby City Centre.

Another Group member, SJS (Derby) Limited, is due to complete in July 2023, a £37.375m 259 unit Build to Rent (BTR) apartment building for Grainger Land & Regeneration Limited.

In SJS (4) Limited, the £1.8m Public Square at Becketwell, which is being built for Derby City Council is due to complete in July 2023.

GMI Construction Group plc is the building contractor for both developments and has managed to bring in the completed developments within budget, despite the cost pressures from inflation and the impact of the war in Ukraine.

In SJS (4) Limited the Building Contract was signed with Bowmer & Kirkland Limited to build the 3,500 capacity Arena for Derby City Council. Work commenced on 5th June 2023 and is scheduled to complete in January 2025. SJS (4) Limited has worked hard with the Contractor and the professional team through the design development and tendering stage to ensure that the development is brought within the fixed price contract agreed with Derby City Council in the sum of £45.8m.

The SJS Group is proud to have engaged one of the UK's largest and most successively privately owned construction companies in delivering the Arena. It is anticipated that this partnership will continue and deliver the remaining phases at Becketwell.

When completed for Derby City Council, the Arena will be leased to and operated by ASM Global. ASM Global is the world's leading venue management company, operating the likes of the OVO Arena Wembley, AO Arena Manchester, First Direct Arena Leeds amongst many others.

With the first phases consisting of the Public Square and BTR almost complete, and on the back of the start of construction of the Arena, we are seeing the catalytic benefits of the regeneration of a major UK city. We have already received keen interest from hotel and MSCP operators, with discussions progressing to provide further BTR and Student Accommodation. Therefore, we are confident that the regeneration of the Becketwell area of Derby will be delivered within the next 4-5 years.

Going concern - continued

Other property assets and land options have previously been acquired by SJS (4) Limited and SJS (2) Limited, to ensure the development and completion of the Becketwell regeneration. These other property assets and land will be utilised in the future. SJS (Derby) Ltd obtained the mixed-use Outline Planning Permission for the 6-acre development site in September 2020.

As reported previously, St James (Becketwell) Limited, a subsidiary of St James Securities Group Limited and the intermediate owner of SJS (Derby) Limited, SJS (2) Limited and SJS (4) Limited, entered into a Funding and Development Partnership with Peveril Securities Limited, a prominent and well-established, privately owned property developer located in Derbyshire. Peveril Securities Limited is the development subsidiary of Bowmer & Kirkland Limited. This Funding and Development Partnership, together with the associated benefits of working with Bowmer & Kirkland Limited as building contractor, will ensure the successful delivery of future phases of the Becketwell development.

When making their assessment of the company's ability to continue as a going concern, the directors acknowledge that uncertainties do exist, particularly regarding to the increased costs attributable to inflationary pressures. The company uses a range of tools to manage the risk, which include providing generous contingencies in its appraisals, constant monitoring of costs against cash flows and budgets and risk assessing future expenditure. In this way any problems can be identified early and managed accordingly. After considering the above, the directors of St James Securities Group 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.

Stocks

Stocks relate to the land and work in progress associated with the regeneration development in Derby City Centre. 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.

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 (2021 - NIL).

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

VAT

60

16,787

Prepayments and accrued income

215

-

275

16,787

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade creditors

220

3,000

Amounts owed to group undertakings

495,039

176,841

Other creditors

-

50,000

Accruals and deferred income

1,876

1,000

497,135

230,841

6.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

1

Ordinary

£1

1

1

7.	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

8.	CONTINGENT LIABILITIES

Peveril Securities Limited has a Debenture including a Fixed and Floating Charge over all of the assets of the company, subject to a Facilities Agreement dated 5th October 2021 between Peveril Securities Limited and St James (Becketwell) Limited.

St James Securities Group Limited has a Debenture including a Fixed and Floating Charge over all of the assets of the company, subject to a Facilities Agreement dated 5th October 2021 between St James Securities Group Limited and St James (Becketwell) Limited.

At the balance sheet date, the amount of the loan from Peveril Securities Limited to St James (Becketwell) Limited was £2,028,223 (2021: NIL). The amount of the loan from St James Securities Group Limited to St James (Becketwell) Limited was £363,496 (2021: £1,220,750).

9.	RELATED PARTY DISCLOSURES

10.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is O A Quarmby.