Joseph Homes Ltd - Limited company accounts 17.3

REGISTERED NUMBER: 06601040 (England and Wales)

REPORT OF THE DIRECTORS AND

UNAUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD 1 APRIL 2016 TO 31 MAY 2017

FOR

JOSEPH HOMES LTD

Page

Company Information

1

Report of the Directors

2

Consolidated Statement of Income and Retained Earnings

4

Consolidated Balance Sheet

5

Company Balance Sheet

7

Notes to the Consolidated Financial Statements

8

DIRECTORS:

Mr J V T Rajah

Mr P Dipino

Mr S Chowdhury

REGISTERED OFFICE:

8 Waterloo Court

10 Theed Street

London

SE1 8ST

REGISTERED NUMBER:

06601040 (England and Wales)

ACCOUNTANTS:

Raffingers LLP

Chartered Certified Accountants

19-20 Bourne Court

Southend Road

Woodford Green

Essex

IG8 8HD

The directors present their report with the financial statements of the company and the group for the period 1 April 2016

to 31 May 2017.

PRINCIPAL ACTIVITY

the management and development of exceptional London property for sale.

REVIEW OF BUSINESS

Why

To create and innovate in everything we do, the right way every time.

How

By creating great products, we can be proud of using the principles of trust, transparency, balance and an exacting

attention to detail. Our success is measured by the benefit we bring to to those we affect.

I am lucky to be surrounded by an exceptional team that continue to help us deliver on our Why and How and deliver

exceptional product that our customers love.

I am very pleased to announce that we have delivered an excellent set of results in 2017, with revenues of £11,318

million (2016 - £288k). Profit was £1.327m (2016 - £163k) with net assets of £1.207m (2016 - £86k).

These results have principally been driven by the number of sites completing during the financial period; homes in South

Kensington, Wimbledon and Norwood Junction.

The Company has secured two further prime projects. They are a single block development of 69 apartments on Balham

High Road, SW17 with a potential GDV £45 million, and a 3.1-acre plot at Millbrook Park, NW7 with planning to

deliver 144 units, and a GDV of £75 million both of which now have planning and will start on site during the next

financial year.

We have grown the company infrastructure during the year to deliver the current business pipeline for the year ahead

and continue to cautiously source new sites to allow us meet our business plan targets and to grow in a controlled and

profitable way.

Principal Risks & Opportunities

The key business risks affecting the Company relate to its operation within a highly competitive market place, influenced

by wider economic conditions. There is however intense pressure on the Government to promote housing delivery and

policy seems to be moving towards the support of smaller developers.

Our size and commitment to our values gives us the opportunity to be creative and innovative and gives us an advantage

over our larger competitors.

I am looking forward to another exciting year of growth in 2018.

DIRECTORS

Mr J V T Rajah has held office during the whole of the period from 1 April 2016 to the date of this report.

Other changes in directors holding office are as follows:

Mr P Dipino - appointed 22 May 2017

Mr S Chowdhury - appointed 22 May 2017

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

Mr J V T Rajah - Director

6 December 2017

TURNOVER

11,317,500

287,660

Cost of sales

10,550,427

65,437

GROSS PROFIT

767,073

222,223

Administrative expenses

205,363

57,247

561,710

164,976

Other operating income

845,561

-

OPERATING PROFIT

5

1,407,271

164,976

Amounts written off investments

79,165

-

1,328,106

164,976

Interest payable and similar expenses

794

2,177

PROFIT BEFORE TAXATION

1,327,312

162,799

Tax on profit

276,904

33,878

PROFIT FOR THE FINANCIAL PERIOD

1,050,408

128,921

Retained earnings at beginning of period

85,787

(46,467

)

RETAINED EARNINGS FOR THE GROUP AT END OF PERIOD

1,136,195

82,454

Profit attributable to:

Owners of the parent

1,121,544

132,254

Non-controlling interests

(71,136

)

(3,333

)

1,050,408

128,921

FIXED ASSETS

Tangible assets

7

5,575

-

Investments

8

-

-

5,575

-

CURRENT ASSETS

Stocks

9

4,604,000

10,561,807

Debtors

10

4,039,204

5,406,616

Cash at bank and in hand

249,383

272,245

8,892,587

16,240,668

CREDITORS

Amounts falling due within one year

11

7,765,299

16,158,213

NET CURRENT ASSETS

1,127,288

82,455

TOTAL ASSETS LESS CURRENT LIABILITIES

1,132,863

82,455

NET ASSETS

1,132,863

82,455

CAPITAL AND RESERVES

Called up share capital

12

1

1

Retained earnings

13

1,207,331

85,787

SHAREHOLDERS' FUNDS

1,207,332

85,788

NON-CONTROLLING INTERESTS

14

(74,469

)

(3,333

)

TOTAL EQUITY

1,132,863

82,455

The company and the group are entitled to exemption from audit under Section 477 of the Companies Act 2006 for the

period ended 31 May 2017.

The members have not required the company and the group to obtain an audit of its financial statements for the period

ended 31 May 2017 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the group keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company and the group as at the end of each financial year and of the group's profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company and the group.

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006

relating to small companies.

The financial statements were approved by the Board of Directors on 6 December 2017 and were signed on its behalf

by:

Mr J V T Rajah - Director

FIXED ASSETS

Tangible assets

7

5,575

-

Investments

8

648

647

6,223

647

CURRENT ASSETS

Debtors

10

11,810,935

1,300,268

Cash at bank

249,378

272,279

12,060,313

1,572,547

CREDITORS

Amounts falling due within one year

11

11,408,563

1,467,825

NET CURRENT ASSETS

651,750

104,722

TOTAL ASSETS LESS CURRENT LIABILITIES

657,973

105,369

CAPITAL AND RESERVES

Called up share capital

12

1

1

Retained earnings

13

657,972

105,368

SHAREHOLDERS' FUNDS

657,973

105,369

Company's profit for the financial year

552,604

140,292

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 31 May 2017.

The members have not required the company to obtain an audit of its financial statements for the period ended 31 May 2017 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 6 December 2017 and were signed on its behalf by:

Mr J V T Rajah - Director

1.	STATUTORY INFORMATION

Joseph Homes Ltd 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 General Information page.

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

2.	STATEMENT OF COMPLIANCE

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

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Tangible fixed assets

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

Computer equipment

-

25% on cost

Stocks

Work in progress is valued at the lower of cost and net realisable value.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in

bringing stocks to their present location and condition.

Taxation

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

4.	EMPLOYEES AND DIRECTORS

The average monthly number of employees during the period was 2 (2016 - 2 ) .

The average number of employees by undertakings that were proportionately consolidated during the period was

2 (2016 - 2 ) .

5.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.4.16

to

Year Ended

31.5.17

31.3.16

£

£

Depreciation - owned assets

2,295

-

6.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not

presented as part of these financial statements.

7.	TANGIBLE FIXED ASSETS

Group

Computer

equipment

£

COST

Additions

7,870

At 31 May 2017

7,870

DEPRECIATION

Charge for period

2,295

At 31 May 2017

2,295

NET BOOK VALUE

At 31 May 2017

5,575

Company

Computer

equipment

£

COST

Additions

7,870

At 31 May 2017

7,870

DEPRECIATION

Charge for period

2,295

At 31 May 2017

2,295

NET BOOK VALUE

At 31 May 2017

5,575

8.	FIXED ASSET INVESTMENTS

Fixed asset investments are held at cost less amounts provided for permanent diminution in value. The carrying

values of fixed asset investment are reviewed for impairment where events or changes in circumstance indicate

the carrying value may not be recoverable.

9.

STOCKS

Group

2017

2016

£

£

Work-in-progress

4,604,000

10,561,807

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2017

2016

2017

2016

£

£

£

£

Amounts owed by group undertakings

-

-

111,227

-

Amounts owed by associates

3,482,980

4,866,800

11,619,951

-

Other debtors

556,224

539,816

79,757

1,300,268

4,039,204

5,406,616

11,810,935

1,300,268

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2017

2016

2017

2016

£

£

£

£

Bank loans and overdrafts

5,368,405

8,805,185

2,436,913

-

Trade creditors

350,791

236,121

350,790

236,120

Amounts owed to group undertakings

-

-

6,983,303

-

Amounts owed to associates

1,241,254

5,877,211

1,035,066

-

Taxation and social security

314,360

33,878

122,732

33,878

Other creditors

490,489

1,205,818

479,759

1,197,827

7,765,299

16,158,213

11,408,563

1,467,825

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

£

1

Ordinary

£1

1

1

13.

RESERVES

Group

Retained

earnings

£

At 1 April 2016

85,787

Profit for the period

1,121,544

At 31 May 2017

1,207,331

Company

Retained

earnings

£

At 1 April 2016

105,368

Profit for the period

552,604

At 31 May 2017

657,972

14.	NON-CONTROLLING INTERESTS

This consists of shareholding in the subsidiary company by Sarin Developments Limited.

15.	RELATED PARTY DISCLOSURES

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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the

financial statements.