SJS (4) Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 02232689 (England and Wales)

SJS (4) Limited

Financial Statements

for the Year Ended 30 September 2023

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

951,385

1,000,893

Debtors

4

1,567,307

522,278

Cash at bank

2,043,488

429,314

4,562,180

1,952,485

CREDITORS

Amounts falling due within one year

5

4,564,327

1,937,078

NET CURRENT (LIABILITIES)/ASSETS

(2,147

)

15,407

TOTAL ASSETS LESS CURRENT LIABILITIES

(2,147

)

15,407

CAPITAL AND RESERVES

Called up share capital

6

10,100

10,100

Retained earnings

(12,247

)

5,307

SHAREHOLDERS' FUNDS

(2,147

)

15,407

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 26 March 2024 and were signed on its behalf by:

O A Quarmby - Director

1.	STATUTORY INFORMATION

SJS (4) 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

The Company's business activities, together with the factors likely to affect its future development, performance and position are set out in the Group Strategic Report, prepared by the company's holding company, St James Securities Group Limited. The Group Strategic Report further describes the financial position of the Group, risks and uncertainties.

During the financial year and up to the date of signing these accounts, St James Securities Group Limited and its subsidiary companies, including SJS (4) Limited, has continued to spend the majority of its time and financial resources working on its £230m regeneration of the Becketwell area of Derby City Centre.

In another Group member, SJS (Derby) Limited, the £37.375m 259 unit Build to Rent (BTR) apartment building for Grainger Land & Regeneration Limited completed in July 2023.

In SJS (4) Limited, the £1.8m Public Square at Becketwell, which was built for Derby City Council completed in July 2023.

Both developments were brought 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 is ensuring that the development is brought within the fixed price contract agreed with Derby City Council in the sum of £45.8m.

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 complete, and on the back of the ongoing construction of the Arena, we are seeing the consequential benefits of the regeneration of a major UK city. The letting up of the 259 unit BTR apartment building is on target in terms of timings and rent levels. This provides evidence to assist Funds in securing future BTR development on some of the remaining phases. Discussions are progressing to provide further BTR accommodation.

Going concern - continued

Although demand for a MSCP and hotel is high, cost viability is a major issue without significant intervention. While discussions are continuing, our attention is focused on other development sectors, which are more deliverable.

With news of the completion of the Arena next year, there are enquiries from Food & Beverage (F & B) providers. The Group will seek to explore those opportunities over the coming months.

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. A further addition to the Becketwell property assets was acquired by SJS (2) Ltd when a strategic option to purchase was exercised just prior to the year end. The income generated from this asset, until it is redeveloped, has ensured that 91.8% of the Group's work in progress property assets are income producing until they are developed.

We remain confident that the regeneration of the Becketwell area of Derby will be delivered within the next 4-5 years.

The Funding and Development Partnership with Peveril Securities Limited and its Building Contractor owner, Bowmer & Kirkland Limited continues to thrive. Upon receipt of its profit on the BTR, St James (Becketwell) Limited was able to repay an element of its debt with Peveril Securities Limited. Since the year end date, the loans that St James Securities Group Limited has advanced to its subsidiaries are at parity with the remaining loans that Peveril Securities Limited has outstanding with St James (Becketwell) Limited. While ever the loan parity continues, interest is not charged by Peveril Securities Limited on the remaining loan balances.

The Funding and Development Partnership, together with the associated benefits of working with Bowmer & Kirkland Limited as building contractor, continues to 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, as reported in the Group's Strategic Report. 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 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 (2022 - NIL).

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

5,450

262,329

Amounts recoverable on contract

1,507,864

236,286

VAT

-

23,663

Prepayments and accrued income

53,993

-

1,567,307

522,278

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade creditors

2,658,108

453,149

Amounts owed to group undertakings

1,340,058

1,257,464

VAT

198,645

-

Other creditors

264,324

215,000

Accruals and deferred income

103,192

11,465

4,564,327

1,937,078

6.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2023

2022

value:

£

£

10,100

Ordinary

£1

10,100

10,100

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 £786,373 (2022: £2,028,223). The amount of the loan from St James Securities Group Limited to St James (Becketwell) Limited was £786,373 (2022: £363,496).

9.	RELATED PARTY DISCLOSURES

10.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is O A Quarmby.