Notes to the Financial Statements
’000 Group Cost or Valuation
At 1st August 2014 Repayment of Capital Share of profit
16,066 (10,660)
3,575
At 31st July 2015 8,981
Net Book Value
At 31st July 2015 8,981
At 31st July 2014 16,066
During the period the initial equity invested in Myatts Field Developments LLP was repaid to the Company.
The Company retains 50% control in the LLP.
Investment in subsidiary companies
£’000
Company Cost or Valuation
At 1st August 2014 and 31st July 2015 1,505
Net Book Value
At 31st July 2015 1,505
At 31st July 2014 1,505
11. Fixed Asset Investments (continued)
Subsidiary Undertakings Principal Activity
Higgins Homes PLC Higgins Construction PLC Higgins Investments PLC Bassett Business Units Limited Higgins City Limited
D J Higgins Investments Limited Higgins Group Services Limited D J Higgins Construction Limited D J Higgins Building Works Limited Higgins Homes Estate Limited Station Garage (Loughton) Limited
House building Contracting
Property investments Managing business units # Dormant
*All these companies are 100% subsidiary undertakings of Higgins Construction PLC.
# This Company is a 100% subsidiary of Higgins Investments PLC.
**This Company is a 100% subsidiary of Higgins Homes PLC.
All other companies are 100% subsidiary undertakings of the Company.
12. Stocks
£’0002015 2014
£’000 Residential development and buildings
Contracting stock and Work In Progress 49,808
5,592 63,656
371
55,400 64,027
13. Debtors
Group Company
£’0002015 2014
£’000 2015
£’000 2014
£’000 Trade debtors
Amounts owed by group undertakings Other debtors
Prepayments and accrued income
Amounts Recoverable on long term contracts Deferred tax asset (see note 16)
26,275 -40,346 32,438 16,785 54,509 Included in trade debtors are amounts falling due after more than one year of £4,450,000 (2014: £3,240,000).
Other debtors includes: £3,483,000 (2014: £4,080,000) shared equity values. These are granted as part of sales transactions where the Group retains an equity interest and are secured by way of a legal charge on
Notes to the Financial Statements
31st July 2015
14. Creditors: Amounts Falling Due Within One Year
Group Company
£’0002015 2014
£’000 2015
£’000 2014
£’000 Bank loans and overdrafts
Payments received on account Trade creditors
Amounts owed to group undertakings Other taxation and social security Other creditors
Accruals and deferred income
24,429 103,953 97,736 10,348 48,032 The bank loans and overdrafts are secured on:
(i) certain freehold and leasehold properties retained as tangible fixed assets and (ii) certain properties within the stock of development land.
15. Creditors: Amounts Falling Due After More Than One Year
Group Company
£’0002015 2014
£’000 2015
£’000 2014
£’000 Bank loan
Share capital treated as debt (note 17) 3,179
1,000 8,199
1,000
-1,000
-1,000
1,000 1,000 1,000 1,000
Disclosure of the terms and conditions attached to the non-equity shares is made in note 17.
Creditors include amounts not wholly repayable within 5 years as follows:
Group Company
£’0002015 2014
£’000 2015
£’000 2014
£’000
Repayable other than by instalments 1,000 1,000 1,000 1,000
The bank loan is secured on certain properties within the stock of development land. The bank loan is repayable upon the sale of the completed housing unit.
The preference shares carry an entitlement to a fixed cumulative dividend at a rate of 1.5% above the bank base lending rate. The preference shares can be redeemed by the Company at any point between 5 and 35 years after issue.
Notes to the Financial Statements
31st July 2015
Notes to the Financial Statements
31st July 2015
16. Deferred Taxation
Group
£’0002015 2014
£’000 At beginning of year
(Charge for)/released during the year (P&L) 195
(151) (54)
249
At end of year 44 195
The deferred taxation balance is made up as follows:
Group
£’0002015 2014
£’000 Accelerated capital allowances
Short-term timing differences 359
(403) 359
(554)
(44) (195)
17. Share Capital
£’0002015 2014
£’000 Shares classified as capital
Allotted, called up and fully paid 6,321,402 (2014 - 6,571,402)
Share Capital allotted, and fully paid shares of £0.10 each 632 657
Shares classified as debt
Allotted, called up and fully paid
1,000,000 Preference shares shares of £1 each 1,000 1,000
On 8th October 2015 the Company repurchased and cancelled 250,000 ordinary 10 pence shares for a total consideration of £1,650,000 under an authority granted on 29th September 2015.
The preference shares are classified as liabilities and ordinary shares are classified in shareholders’ funds.
The preference shares are redeemable between 5 and 35 years after the date of issue at the option of the Company.
Notes to the Financial Statements
31st July 2015
18. Reserves
Revaluation reserve
£’000
Other reserves
£’000
Profit and loss account
£’000 Group
At 1st August 2014 Profit for the financial year Purchase of own shares Pension reserve movement
Surplus on revaluation of freehold property
6,787 - -608
-93 --
-41,600 3,320 (1,550) (1,987)
-At 31st July 2015 7,395 93 41,383
The closing balance on the Profit and loss account includes a £6,803,000 (2014 - £6,115,000) debit, stated after deferred taxation of £2,032,000 (2014 - £1,827,000), in respect of pension scheme liabilities of the Group and Company pension scheme.
Other reserves
£’000
Profit and loss account
£’000 Company
At 1st August 2014 Loss for the financial year Dividends: Equity capital Purchase of own shares
84 --
-6,247 (8,471) 10,000
(1,550)
At 31st July 2015 84 6,226
Notes to the Financial Statements
31st July 2015
19. Reconciliation of Movement in Shareholders’ Funds
£’0002015 2014
£’000 Group
Opening shareholders’ funds Profit for the financial year
Shares redeemed/cancelled during the year Other recognised gains and losses during the year
49,137
Closing shareholders’ funds 49,503 49,137
£’0002015 2014
£’000 Company
Opening shareholders’ funds Loss for the financial year Dividends
Shares redeemed/cancelled during the year
6,988
Closing shareholders’ funds 6,942 6,988
The company has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own Profit and loss account.
The loss for the year dealt with in the accounts of the company was £8,471,000 (2014 - £3,765,000).
20. Net Cash Flow From Operating Activities
£’0002015 2014
£’000 Operating profit/(loss)
Depreciation of tangible fixed assests Loss on disposal of tangible fixed assets Decrease/(increase) in stocks
Increase in debtors Increase in creditors
Decrease in net pension assets/liabilities Other Net cash inflow/(outflow) from operating activities 14,946 (8,010)
Notes to the Financial Statements
31st July 2015
21. Analysis of Cash Flows For Headings Netted in Cash Flow Statement
£’0002015 2014
£’000 Returns on investments and servicing of finance
Interest received
Interest paid 37
(1,977) 100 (1,936) Net cash outflow from returns on investments and servicing of finance (1,940) (1,836)
£’0002015 2014
£’000 Capital expenditure and financial investment
Purchase of tangible fixed assets Sale of tangible assets
Share buyback
(921) (1,550)132
(428) 76 (1,500)
Net cash outflow from capital expenditure (2,339) (1,852)
£’0002015 2014
£’000 Aquisitions and disposals
Repayment of Capital by joint ventures 10,660
-£’0002015 2014
£’000 Financing
Purchase of ordinary shares Repayment of loans Other
(10,956)(25) 25
-10,106
-Net cash (outflow)/inflow from financing (10,956) 10,106
During the period the initial equity invested in Myatts Field Developments LLP was repaid to the Company.
The Company retain 50% control in the LLP.
22.Analysis of Changes in Net Debt
Cash at bank and in hand
Bank overdraft 18,372
(1,192) 9,253
1,114
-- 27,625 (78) Debt:
Debts due within one year
Debts falling due after more than one year
17,180
Net debt (22,306) 21,323 - (983)
23.Capital Commitments
At 31st July 2015 the Group had capital commitments as follows:
Group
£’0002015 2014
£’000 Contracted for but not provided in these financial statements 80 153 24. Operating Lease Commitments
At 31st July 2015 the Group had annual commitments under non-cancellable operating leases as follows:
Land and buildings Other
£’0002015 2014
£’000 2015
£’000 2014
£’000 Group Expiry date:
Within 1 year
Between 2 and 5 years 62
-
-112 56
555 137
398 25. Related Party Transactions
During the year the Group generated turnover of £9,800,000 from construction work carried out for the joint venture partnership in Myatt’s Field Development LLP.