28 June 2024
St
Mark Homes Plc
(''SMH''
or “the Company'')
Final
results
St Mark Homes Plc (AQSE: SMAP), the housebuilder operating mainly
in London and the South of
England, today announces its Final
Results for the year ended 31 December
2023.
Review of the business
The Group
continues to develop residential led projects located in
London and the Southern regions of
the United Kingdom. The Group
typically undertakes its business within special purpose vehicles
and on a joint venture/profit sharing basis with other house
builders.
2023 has
been our most difficult year in business. Sales stagnated and were
impacted by rising interest rates and yield compression. Production
on unfinished sites was hampered by inflation and contractor
failure. The loss by project is detailed within our Project
Portfolio update on pages 2-3. The Group made a loss before tax of
£2,926,563
(2022
loss: £1,472,180).
Given the extent of these losses the Board have evaluated the
applicability of the going concern basis for the
business. The Board has conducted an assessment to ensure the
company can continue its operations. This evaluation included a
detailed analysis of the company’s current financial health,
encompassing liquidity levels, cash flow projections, and access to
financing. Finance has been provided via a combination of Director
Loans and salary deferral. Directors
have agreed to reduce remuneration by 50% with effect from
1 July 2024.
The board affirmed that the use of the going concern basis is
appropriate despite the financial challenges faced.
The board will also consult with the shareholders on the future of
the business in 2024.
Our
strategic priorities
The
current priority is to complete the development of the projects on
site at Sutton and Finchley. While
there is limited prospect of repayment of our capital invested in
these two particular projects we do need to chart an exit that
doesn’t expose the group to additional capital calls. Our joint
venture at Uxbridge Road Hanwell is complete and we also need to
exit from this as soon as practicable. Sales were slow there in
2023 but there has been more interest this Spring and we are
working to have our remaining capital there repaid before the end
of 2024.
Capital
and AQSE Listing
The losses
in our joint ventures have eroded our capital base and the board
will bring forward a proposal to the 2024 AGM to delist from AQSE
in the second half of the year.
Project Portfolio
Sutton High Street, Sutton:
The Group
retains a 40% interest in a development site at Sutton High Street.
We have made a provision against our entire investment in the
project which has suffered from contractor insolvency, build price
inflation, program delays, interest rate rises and yield
compression. The return here has been particularly adversely
affected by the sale of the commercial unit in December 2023 at approximately £1.5m (c.40%)
lower than our appraisal forecast.
In
accordance with our revenue recognition policy we have recognised a
loss of £1,094,771 (2022: £126,624) during 2023.
Gwynne Road, London
SW11:
The Group
retains a
40% interest in the development at Gwynne Road,
Battersea
with its
joint venture partner. The initial phase of the project was
completed in 2019
providing
a mixed use development of commercial/retail at ground and
mezzanine levels and 33 residential flats above. In 2023 planning
permission was
secured to
provide an additional two flats at mezzanine
level.
We expect
the commercial space to be sold in 2024. Our partner had hoped to
obtain permission for a penthouse unit on the site but this has not
been supported by planners.
In
accordance with our revenue recognition policy we have recognised a
loss of £361,885
(2022:
£35,634) during 2023.
Uxbridge Road, Hanwell, London
W7:
The Group
has a 50% interest in the redevelopment of this site with full
planning permission in place to provide 43 residential units (7
houses and 36 apartments) and ground floor retail fronting Uxbridge
Road, Hanwell, West London. The
development is located just 200m from
the new Crossrail station at Hanwell. Construction of the project
was delayed until December 2023 as
our main contractor entered a CVA.
This
rising interest rate environment has increased pressure on sales
prices and has also impacted our sales program.
In
accordance with our revenue recognition policy we have recognised a
loss of £835,428 (2022: £585,000) during 2023.
Twyford Avenue, Muswell Hill, London, N2:
The Group
invested
in a 50%
joint venture stake in a new build housing scheme in Muswell Hill,
North London in 2020. This
development involved
the
construction of seven new houses with off street parking which was
completed in June
2023.
Six of the
seven houses sold during the 2022 with the sale of final unit
completing during the year. We have recognised a profit of £ 71,176
(2022 £434,757) from this project during the year.
553 – 563 High Road, Finchley, N12:
The
Company has a 50% joint venture stake in a new build housing scheme
in Finchley, North London. This
development will see the construction of five houses. Construction
work has been extremely delayed and is now projected to complete in
July 2024.
In
accordance with our revenue recognition policy, we have provided
for a loss of £304,934 (2022 - £118,921) on this project during
2023.
Board
Decision Making: Section 172 Statement
The Board
regularly considers the impact of their decision making on the key
stakeholders of the business. For this purpose the Board have
identified the following groups of stakeholders with details of how
they have engaged with those stakeholders and the effect this has
had on St Mark Homes’ decisions and strategies during the
year.
|
|
|
Stakeholder
group
|
Their
interests
|
How
management and/or Directors engage
|
Investors
|
-
Comprehensive
review of financial performance of the business
-
Business
sustainability
-
High
standard of governance
-
Awareness
of long-term strategy and direction
|
-
Annual and
interim reports
-
Company
website
-
Shareholder
circulations
-
Company
announcements
-
AGM
-
AQSE
growth exchange announcements
|
Employees
|
-
Job
satisfaction and fulfilment
-
Health and
safety on site
-
Training
and development
-
Career
progression
-
Inclusion
|
-
Formal
policies and procedures
-
Regular
dialogue with key management
-
Company
culture which promotes inclusion and sharing of ideas
-
Management
Incentive Scheme
|
Joint
Venture Partners
|
-
Mutually
rewarding outcomes
|
-
Formal
development agreements
-
Learning
from joint experiences to seek continual improvement
-
Pre
commitment project due diligence
-
Project
Monitoring
|
|
|
|
Community
and the environment
|
-
Sustainability
-
Energy
usage
-
Recycling
and waste management
|
-
Products
promote energy reduction
-
Corporate
and social responsibility policy
-
Environmental
policy
|
Principal
risks and uncertainties
The Group
is exposed to the usual risks of companies constructing and
developing residential property, including construction budget
overruns, delays in programme, insolvency of clients, general
economic conditions, project availability, uninsured calamities and
other factors.
Investments
are made in sterling and therefore the Group is not subject to
foreign exchange risks. The Group’s credit risk is primarily
attributable to its trade debtors.
Credit
risk is managed by monitoring payments against contractual
agreements.
The Group
also reviews the financial standings of its debtors prior to
entering into significant contracts.
Key
Performance Indicators
The
Group’s long term performance target had been to generate a minimum
average annual return on shareholders’ funds of 5%. Given the
difficult environment we revised this to 2% for 2022 and 2023.
During 2023 the annual pre-tax return on shareholders’ funds was
-78%
(2022:
-28%).
Treasury
policy
Operations
have been financed by the issue of shares in the past and retained
profits, the cash from which has been invested in short term cash
deposits. In addition, various financial instruments such as trade
debtors and trade creditors arise directly from the Group's
operations. Loans have been funded by the cash income from previous
development projects.
On
behalf of the Board
Bernard Tansey
Chairman
27 June 2024
The
Directors of St Mark Homes PLC accept responsibility for this
announcement.
For
further information, please contact:
St
Mark Homes Plc
|
|
Sean Ryan,
Finance Director
|
Tel: +44
(0) 20 8903 2442
|
|
seanryan@stmarkhomes.com
|
Alfred
Henry Corporate Finance Ltd, AQSE Growth Market Corporate
Adviser
|
|
Nick
Michaels/Maya Klein Wassink
|
Tel: +44 (0) 20
7309 2203
|
|
www.alfredhenry.com
|
Consolidated
statement of comprehensive income
for
the year ended 31 December
2023
|
|
|
2023
|
|
2022
|
|
|
|
£
|
|
£
|
|
|
|
|
|
|
Turnover
|
|
|
-
|
|
559,200
|
|
|
|
|
|
|
Cost of
sales
|
|
|
(28,800)
|
|
(29,197)
|
|
|
|
________
|
|
________
|
|
|
|
|
|
|
Gross
profit
|
|
|
(28,800)
|
|
530,003
|
|
|
|
|
|
|
Administrative
expenses
|
|
|
(369,306)
|
|
(1,316,897)
|
|
|
|
________
|
|
________
|
|
|
|
|
|
|
Operating
loss
|
|
|
(398,106)
|
|
(786,894)
|
|
|
|
|
|
|
Share of
operating loss of joint ventures
|
|
|
(2,525,843)
|
|
(731,422)
|
|
|
|
|
|
|
Interest
receivable and similar income
|
|
|
193
|
|
51,349
|
|
|
|
|
|
|
Interest
payable and similar charges
|
|
|
(2,807)
|
|
(5,213)
|
|
|
|
________
|
|
________
|
|
|
|
|
|
|
Loss
on ordinary activities before taxation
|
|
|
(2,926,563)
|
|
(1,472,180)
|
|
|
|
|
|
|
Taxation
on ordinary activities
|
|
|
125
|
|
(16,900)
|
|
|
|
________
|
|
________
|
|
|
|
|
|
|
Loss
on ordinary activities after taxation
|
|
|
(2,926,438)
|
|
(1,489,080)
|
|
|
|
|
|
|
Other
comprehensive income
|
|
|
-
|
|
-
|
|
|
|
________
|
|
________
|
|
|
|
|
|
|
Total
comprehensive income
|
|
|
(2,926,438)
|
|
(1,489,080)
|
|
|
|
________
|
|
________
|
|
|
|
|
|
|
Earnings
per share – basic and diluted
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary
shares
|
|
|
(66.30)p
|
|
(33.74)p
|
Consolidated
Balance sheet
at
31 December 2023
|
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
|
|
£
|
|
£
|
|
£
|
|
£
|
Non
Current assets
|
|
|
|
|
|
|
|
|
|
Tangible
fixed assets
|
|
|
|
|
490
|
|
|
|
653
|
Investments
in joint ventures
|
|
|
|
|
-
|
|
|
|
159,396
|
|
|
|
|
|
________
|
|
|
|
________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
490
|
|
|
|
160,049
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Debtors
|
|
|
1,206,900
|
|
|
|
3,490,184
|
|
|
Cash at
bank and in hand
|
|
|
1,132
|
|
|
|
169,043
|
|
|
|
|
|
________
|
|
|
|
________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,208,032
|
|
|
|
3,659,227
|
|
|
Creditors:
amounts falling
|
|
|
|
|
|
|
|
|
|
due
within one year
|
|
|
(
381,905)
|
|
|
|
(55,573)
|
|
|
|
|
|
________
|
|
|
|
________
|
|
|
Net
current assets
|
|
|
|
|
826,127
|
|
|
|
3,603,654
|
|
|
|
|
|
________
|
|
|
|
________
|
|
|
|
|
|
|
|
|
|
|
Total
assets less current liabilities
|
|
|
|
|
826,617
|
|
|
|
3,763,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors:
amounts falling
|
due
in more than one year
|
|
|
|
|
|
(11,843)
|
|
|
|
(22,491)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________
|
|
|
|
________
|
|
|
|
|
|
|
|
|
|
|
Net
assets
|
|
|
|
|
814,774
|
|
|
|
3,741,212
|
|
|
|
|
|
________
|
|
|
|
________
|
|
|
|
|
|
|
|
|
|
|
Capital
and reserves
|
|
|
|
|
|
|
|
|
|
Called up
share capital
|
|
|
|
|
2,206,501
|
|
|
|
2,206,501
|
Capital
redemption reserve
|
|
|
|
|
1,009,560
|
|
|
|
1,009,560
|
Other
reserve
|
|
|
|
|
211,822
|
|
|
|
211,822
|
Merger
reserve
|
|
|
|
|
327,060
|
|
|
|
327,060
|
Share
premium account
|
|
|
|
|
375,246
|
|
|
|
375,246
|
Profit and
loss account
|
|
|
|
|
(3,315,415)
|
|
|
|
(388,977)
|
|
|
|
|
|
________
|
|
|
|
________
|
Shareholders’
funds
|
|
|
|
|
814,774
|
|
|
|
3,741,212
|
|
|
|
|
|
________
|
|
|
|
________
|
Consolidated
Statement of Changes in Equity
For
the year ended 31 December
2023
|
|
Share
Capital
|
|
Capital
Redemption Reserve
|
|
Other
Reserve
|
|
Merger
Reserve
|
|
Share
Premium
|
|
Profit
and loss reserves
|
|
Total
|
|
|
£
|
|
£
|
|
£
|
|
£
|
|
£
|
|
£
|
|
£
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at
31
December 2021
|
|
2,206,501
|
|
1,009,560
|
|
211,822
|
|
327,060
|
|
375,246
|
|
1,100,103
|
|
5,230,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for
the year
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,489,080)
|
|
(1,489,080)
|
|
|
________
|
|
________
|
|
_______
|
|
_______
|
|
________
|
|
________
|
|
________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the year
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,489,080)
|
|
(1,489,080)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________
|
|
________
|
|
_______
|
|
_______
|
|
________
|
|
________
|
|
________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at
31
December 2022
|
|
2,206,501
|
|
1,009,560
|
|
211,822
|
|
327,060
|
|
375,246
|
|
(388,977)
|
|
3,741,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for
the year
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,926,438)
|
|
(2,926,438)
|
|
|
________
|
|
________
|
|
_______
|
|
_______
|
|
________
|
|
________
|
|
________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the year
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,926,438)
|
|
(2,926,438)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________
|
|
________
|
|
_______
|
|
_______
|
|
________
|
|
________
|
|
_________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at
31
December 2023
|
|
2,206,501
|
|
1,009,560
|
|
211,822
|
|
327,060
|
|
375,246
|
|
(
3,315,415)
|
|
814,774
|
|
|
________
|
|
________
|
|
_______
|
|
______
|
|
________
|
|
________
|
|
________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
statement of cashflows
for
the year ended 31 December
2023
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
£
|
|
£
|
|
£
|
|
£
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flows from
|
|
|
|
|
|
|
|
|
|
|
operating
activities
|
|
|
|
|
|
|
|
|
|
|
Cash (used
in)/generated from operations
|
|
|
|
|
|
(154,774)
|
|
|
|
32,973
|
Interest
paid
|
|
|
|
|
|
(2,807)
|
|
|
|
(5,213)
|
Corporation
tax
|
|
|
|
|
|
125
|
|
|
|
(30,560)
|
|
|
|
|
|
|
________
|
|
|
|
________
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash outflow from
|
|
|
|
|
|
|
|
|
|
|
operating
activities
|
|
|
|
|
|
(157,456)
|
|
|
|
(2,800)
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
received
|
|
|
|
193
|
|
|
|
51,349
|
|
|
|
|
|
|
________
|
|
|
|
________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash generated from investing
|
|
|
|
|
|
|
|
|
|
|
activities
|
|
|
|
|
|
193
|
|
|
|
51,349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
|
Repayment
of Bank Loan
|
|
|
|
(10,648)
|
|
|
|
(10,648)
|
|
|
|
|
|
|
________
|
|
|
|
________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash used in
|
|
|
|
|
|
|
|
|
|
|
financing
activities
|
|
|
|
|
|
(10,648)
|
|
|
|
(10,648)
|
|
|
|
|
|
|
________
|
|
|
|
________
|
|
|
|
|
|
|
|
|
|
|
|
Net
(decrease)/increase in cash and cash
equivalents
|
|
|
|
|
|
(167,911)
|
|
|
|
37,901
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents at
|
|
|
|
|
|
|
|
|
|
|
beginning
of year
|
|
|
|
|
|
169,043
|
|
|
|
131,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________
|
|
|
|
________
|
Cash
and cash equivalents at
|
|
|
|
|
|
|
|
|
|
|
end
of year
|
|
|
|
|
|
1,132
|
|
|
|
169,043
|
|
|
|
|
|
|
________
|
|
|
|
________
|
|
|
|
|
|
|
|
|
|
|
|
Relating
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
at bank and in hand
|
|
|
|
|
|
1,132
|
|
|
|
169,043
|
|
|
|
|
|
|
________
|
|
|
|
________
|
Notes
to Preliminary Results for the Period Ended 31 December 2023
1.
The
financial information set out above does not constitute statutory
accounts for the purpose of Section 434 of the Companies Act
2006.
The
financial information has been extracted from the statutory
accounts of St Mark Homes plc and is presented using the same
accounting policies, which have not yet been filed with the
Registrar of companies, but on which the auditors gave an
unqualified report on
27 June 2024.
The
preliminary announcement of the results for the year ended
31 December 2023 was approved by the
board of directors on 27 June
2024.
-
Accounting
policies
Company
information
St Mark
Homes Plc is a public limited company domiciled and incorporated in
England and Wales. The registered office is No 1 Railshead
Road, St Margarets, Isleworth, Middlesex TW7 7EP.
Accounting
convention
These
financial statements have been prepared in accordance with FRS 102
“The Financial Reporting Standard applicable in the UK and Republic
of Ireland” (“FRS 102”) and the requirements of the Companies Act
2006.
The
financial statements are prepared in sterling, which is the
functional currency of the company. Monetary amounts in these
financial statements are rounded to the nearest pound.
Going
concern
These
financial statements are prepared on the going concern basis. The
directors have assessed the Group’s projected business activities
and available financial resources together with detailed forecasts
for cash flow for a projected period of at least 12 months from the
approval of the financial statements. Given the difficulties with
our joint ventures the assessment of going concern needs careful
consideration.
The
directors have considered the impact of the current economic
factors including cost inflation, longer sales cycles, residential
and commercial market trends. They believe that 2024 will continue
to be challenging for operations and cashflow but that the company
will continue in business and meet its liabilities as they fall
due. While
there
remains a
fundamental uncertainty the directors have a reasonable expectation
that the Company and the Group have adequate resources to continue
in operational existence for the foreseeable future. Accordingly
the directors continue to adopt the going concern basis in
preparing the annual report and financial statements.
The
financial statements have been prepared on the historical cost
convention. The principal accounting policies adopted are set out
below.
Basis
of consolidation
The
consolidated financial statements incorporate the results of St
Mark Homes Plc and its subsidiary undertaking, St Mark Contracts
Limited as at 31 December 2023 using
the acquisition method of accounting. Under this method the results
of subsidiary undertakings are included from the date of
acquisition.
Jointly
controlled operations and interests in joint ventures are accounted
for using the equity method of accounting. A jointly controlled
operation is an entity that is a joint venture that involves the
establishment of a corporation, partnership, or other entity in
which each venture has an interest. A subsidiary is an entity
controlled by the company. Control is the power to govern the
financial and operating policies of the entity so as to benefit
from its activities.
Turnover
Turnover
represents the amounts recoverable on contracts with developers
including project management fees arising under development
agreements.
Turnover
arising from developments is recognised on exchanged sale
contracts:
-
when costs
and revenues associated with the transaction can be reliably
measured; and
-
where the
probability of non-performance is considered negligible such that
the risks and rewards of ownership have passed to the
buyer.
The return
on loans provided for the development of residential property is
shown under interest receivable and similar income.
Investments
in subsidiaries
Interests
in subsidiaries are initially measured at cost and subsequently
measured at cost less any accumulated impairment losses. The
investments are assessed for impairment at each reporting date and
any impairment losses or reversals of impairment losses are
recognised immediately in the profit or loss account. A subsidiary
is an entity controlled by the company. Control is the power to
govern the financial and operating policies of the entity so as to
obtain benefits from its activities.
Property
development loans
Interest
receivable on property loans is recognised in the period in which
it accrues.
Profit
share returns are only recognised when there is sufficient evidence
and the project is sufficiently progressed to assess the likely
profitability with a reasonable level of accuracy.
Depreciation
Depreciation
is provided to write off the cost, less estimated residual values,
of all tangible fixed assets on a reducing balance basis over their
expected useful lives.
It is
calculated at the following rates:
Office
equipment
- 25% per
annum
Taxation
The tax
expense represents the sum of the tax currently payable and
deferred tax.
Current
tax
The tax
currently payable is based on taxable profit for the year. Taxable
profit differs from net profit as reported in the profit and loss
account because it excludes items of income or expense that are
taxable or deductible in other years and it further excludes items
that are never taxable or deductible. The company’s liability for
current tax is calculated using tax rates that have been enacted or
substantively enacted by the reporting end date.
Deferred
tax
Deferred
tax liabilities are generally recognised for all timing differences
and deferred tax assets are recognised to the extent that it is
probable that they will be recovered against the reversal of
deferred tax liabilities or other future taxable profits. The
carrying amount of deferred tax assets is reviewed at each
reporting end date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow
all or part of the asset to be recovered. Deferred tax is
calculated at the tax rates that are expected to apply in the year
when the liability is settled or the asset is realised. Deferred
tax is charged or credited in the profit and loss account, except
when it relates to items charged or credited directly to equity, in
which case the deferred tax is also dealt with in equity. Deferred
tax assets and liabilities are offset when the company has a
legally enforceable right to offset current tax assets and
liabilities and the deferred tax assets and liabilities relate to
taxes levied by the same tax authority.
Leased
assets
Leases are
classified as finance leases whenever the terms of the lease
transfer substantially all the risks and rewards of ownership to
the lessees. All other leases are classified as operating
leases.
Assets
held under finance leases are recognised as assets at the lower of
the assets fair value at the date of inception and the present
value of the minimum lease payments. The related liability is
included in the balance sheet as a finance lease obligation. Lease
payments are treated as consisting of capital and interest
elements. The interest is charged to the profit and loss account so
as to produce a constant periodic rate of interest on the remaining
balance of the liability.
Liquid
resources
For the
purposes of the cash flow statement, liquid resources are defined
as short term bank deposits.
Cash
and cash equivalents
Cash and
cash equivalents include cash in hand, deposits held at call with
banks, other short-term liquid investments with original maturities
of three months or less, and bank overdrafts. Bank overdrafts are
shown within borrowings in current liabilities.
Financial
assets
The
Company has elected to apply the provisions of Section 11 ‘Basic
Financial Instruments’ and Section 12 ‘Other Financial Instruments
Issues’ of FRS 102 to all of its financial instruments. Financial
assets are recognised in the company's balance sheet when the
company becomes party to the contractual provisions of the
instrument.
Financial
assets are classified into specified categories. The classification
depends on the nature and purpose of the financial assets and is
determined at the time of recognition. Basic financial assets,
which include trade and other receivables and cash and bank
balances, are initially measured at transaction price including
transaction costs and are subsequently carried at amortised cost
using the effective interest method, 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.
Financial
liabilities and equity
Financial
liabilities and equity are classified according to the substance of
the financial instrument’s contractual obligations, rather than the
financial instrument’s legal form.
Basic
financial liabilities are initially measured 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. Other financial
liabilities are initially recognised at fair value and are
subsequently re-measured at their fair value with changes
recognised through the profit and loss account.
Equity
instruments
Equity
instruments issued by the company are recorded at the proceeds
received, net of direct issue costs. Dividends payable on equity
instruments are recognised as liabilities once they are no longer
at the discretion of the company.
Dividends
Equity
dividends are recognised when they become legally
payable.
Interim
equity dividends are recognised when paid.
Final
equity dividends are recognised when approved by the shareholders
at an annual general meeting. Dividends on shares wholly recognised
as liabilities are recognised as expenses and classified within
interest payable.
-
Earnings per
share
Earnings
per ordinary share has been calculated using the weighted average
number of shares in issue during the financial year. The weighted
average number of Ordinary shares in issue was 4,413,002 (2022:
4,413,002) and the loss after tax attributable to ordinary shares
was £2,926,438 loss (2022: £1,489,080 loss).
|
2023
|
2022
|
|
£
|
£
|
|
|
|
Numerator
|
|
|
Earnings
used as the calculation of basic and diluted EPS
|
(2,926,438)
|
(1,489,080)
|
|
________
|
________
|
|
Number
|
Number
|
|
|
|
Denominator
|
|
|
Weighted
average number of ordinary shares used in basic and diluted
EPS
|
4,413,002
|
4,413,002
|
|
________
|
________
|
There are
no share options or other potentially dilutive equity instruments
in issue than can dilute the earnings per share.