P.J. Livesey Holdings Limited - Limited company accounts 18.2

REGISTERED NUMBER: 03195231 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH JUNE 2018

FOR

P.J. LIVESEY HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

Mr P J Livesey

Mrs D A Livesey

Mr R Brocklehurst

Mrs G A Livesey

Mr J N D Woodmansee

Mr C D Lynch

Mr M Duckett

SECRETARY:

Mrs D A Livesey

REGISTERED OFFICE:

Ashburton Park

Ashburton Road West

Trafford Park

Manchester

M17 1AF

REGISTERED NUMBER:

03195231 (England and Wales)

AUDITORS:

Ainsworths Limited

Chartered Accountants

and Statutory Auditors

Charter House

Stansfield Street

Nelson

Lancashire

BB9 9XY

The directors present their strategic report of the company and the group for the year ended 30th June 2018.

REVIEW OF BUSINESS

The group's key financial indicators during the year were as follows:

2018

2017

Change

£

£

%

Income Statement

Turnover

65,988,468

76,369,871

- 13.6%

Profit before taxation

4,671,787

7,100,867

- 34.2%

Balance sheet

Cash at bank and in hand

13,151,399

12,289,392

+ 7.0%

Shareholders' funds

45,016,437

41,453,009

+ 8.6%

The group turnover has decreased by 13.6% from the previous year. In the prior year the group significantly

overperformed on two sites, St James Place, the former Manchester Metropolitan Campus and The Residence, the

conversion of the former Chocolate Factory into 180 luxury apartments. Turnover is 29.9% higher than two years ago

so despite a fall from last year, turnover is still on a medium term general upward trend.

The directors are pleased that gross profit margin showed a small improvement from the prior year from 14.5% to

14.9%.

Despite the increase in margin, the profit before taxation has reduced from the prior year due to the fall in turnover.

Cash at bank and in hand remains comparable to the prior year having increased by 7.0%. Loan funding has increased

from the prior year to facilitate more investment in work in progress which will deliver future turnover and profits.

The directors are satisfied with an increase in the shareholders' funds of 8.6% from the prior year and believe this

represents an attractive return on the capital employed in the group.

PRINCIPAL RISKS AND UNCERTAINTIES

The majority risks and uncertainties facing the Group are related to the future of the property market, availability of the

suitable sites and the availability of finance. The directors believe that as a result of the timely action they have taken,

the group is in a strong position.

FINANCIAL INSTRUMENTS RISKS

The directors meet regularly to discuss financial instrument risks. In particular, the directors aim to limit undue

counterparty exposure, ensure sufficient working capital exists and monitor the management of risk at a business unit

level.

ON BEHALF OF THE BOARD:

Mrs G A Livesey - Director

27th March 2019

The directors present their report with the financial statements of the company and the group for the year ended

30th June 2018.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the construction of residential properties.

DIVIDENDS

An interim dividend of £3,750 per share was paid on 8th June 2018. The directors recommend that no final dividend be

paid.

The total distribution of dividends for the year ended 30th June 2018 will be £ 375,000 .

FUTURE DEVELOPMENTS

No changes to the group's business are anticipated.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st July 2017 to the date of this report.

Mr P J Livesey

Mrs D A Livesey

Mr R Brocklehurst

Mrs G A Livesey

Mr J N D Woodmansee

Other changes in directors holding office are as follows:

Mr C D Lynch - appointed 28th July 2017

Mr M Duckett - appointed 28th July 2017

Mr G W Graves - appointed 28th July 2017

Mr J W Allcock , Mr P G Richardson and Mr G W Graves ceased to be directors after 30th June 2018 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial

statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the

directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the

company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable

steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have

taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the

group's auditors are aware of that information.

AUDITORS

The auditors, Ainsworths Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs G A Livesey - Director

27th March 2019

Opinion

We have audited the financial statements of P.J. Livesey Holdings Limited (the 'parent company') and its subsidiaries

(the 'group') for the year ended 30th June 2018 which comprise the Consolidated Income Statement, Consolidated Other

Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in

Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated

Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The

financial reporting framework that has been applied in their preparation is applicable law and United Kingdom

Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the

UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30th June 2018 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the group in accordance with the ethical requirements

that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have

fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we

have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group

Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the

Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise

explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether there is a material misstatement in the financial

statements or a material misstatement of the other information. If, based on the work we have performed, we conclude

that there is a material misstatement of this other information, we are required to report that fact. We have nothing to

report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in

the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the

Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you

if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and

for such internal control as the directors determine necessary to enable the preparation of financial statements that are

free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's

ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease

operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with

ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's

members as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Heys (Senior Statutory Auditor)

for and on behalf of Ainsworths Limited

Chartered Accountants

and Statutory Auditors

Charter House

Stansfield Street

Nelson

Lancashire

BB9 9XY

27th March 2019

TURNOVER

3

65,988,468

76,369,871

Cost of sales

56,180,534

65,318,665

GROSS PROFIT

9,807,934

11,051,206

Distribution costs

951,339

923,473

Administrative expenses

4,312,482

3,585,498

5,263,821

4,508,971

4,544,113

6,542,235

Other operating income

71,799

65,883

OPERATING PROFIT

5

4,615,912

6,608,118

Profit on sale of investment property

6

212,241

630,852

4,828,153

7,238,970

Interest receivable and similar income

9,032

5,400

4,837,185

7,244,370

Interest payable and similar expenses

7

165,398

143,503

PROFIT BEFORE TAXATION

4,671,787

7,100,867

Tax on profit

8

733,359

1,147,185

PROFIT FOR THE FINANCIAL YEAR

3,938,428

5,953,682

Profit attributable to:

Owners of the parent

3,938,428

5,953,682

PROFIT FOR THE YEAR

3,938,428

5,953,682

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,938,428

5,953,682

Total comprehensive income attributable to:

Owners of the parent

3,938,428

5,953,682

FIXED ASSETS

Tangible assets

11

9,072,594

8,742,701

Investments

12

-

-

Investment property

13

476,260

2,653,660

9,548,854

11,396,361

CURRENT ASSETS

Stocks

14

65,551,131

47,494,236

Debtors

15

1,821,073

3,528,685

Cash at bank and in hand

13,151,399

12,289,392

80,523,603

63,312,313

CREDITORS

Amounts falling due within one year

16

42,490,962

29,987,002

NET CURRENT ASSETS

38,032,641

33,325,311

TOTAL ASSETS LESS CURRENT LIABILITIES

47,581,495

44,721,672

CREDITORS

Amounts falling due after more than one year

17

2,565,058

3,268,663

NET ASSETS

45,016,437

41,453,009

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

21

45,016,337

41,452,909

SHAREHOLDERS' FUNDS

45,016,437

41,453,009

The financial statements were approved by the Board of Directors on 27th March 2019 and were signed on its behalf by:

Mr P J Livesey - Director

FIXED ASSETS

Tangible assets

11

2,409,552

2,359,965

Investments

12

3,787,714

2,808,180

Investment property

13

-

-

6,197,266

5,168,145

CURRENT ASSETS

Stocks

14

38,424

30,150

Debtors

15

34,469,455

31,164,487

Cash at bank and in hand

8,852,642

9,058,547

43,360,521

40,253,184

CREDITORS

Amounts falling due within one year

16

9,851,344

7,378,327

NET CURRENT ASSETS

33,509,177

32,874,857

TOTAL ASSETS LESS CURRENT LIABILITIES

39,706,443

38,043,002

CREDITORS

Amounts falling due after more than one year

17

121,308

249,914

NET ASSETS

39,585,135

37,793,088

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

21

39,585,035

37,792,988

SHAREHOLDERS' FUNDS

39,585,135

37,793,088

Company's profit for the financial year

2,167,047

4,354,326

The financial statements were approved by the Board of Directors on 27th March 2019 and were signed on its behalf by:

Mr P J Livesey - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st July 2016

100

36,249,227

36,249,327

Changes in equity

Dividends

-

(750,000

)

(750,000

)

Total comprehensive income

-

5,953,682

5,953,682

Balance at 30th June 2017

100

41,452,909

41,453,009

Changes in equity

Dividends

-

(375,000

)

(375,000

)

Total comprehensive income

-

3,938,428

3,938,428

Balance at 30th June 2018

100

45,016,337

45,016,437

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st July 2016

100

34,188,662

34,188,762

Changes in equity

Dividends

-

(750,000

)

(750,000

)

Total comprehensive income

-

4,354,326

4,354,326

Balance at 30th June 2017

100

37,792,988

37,793,088

Changes in equity

Dividends

-

(375,000

)

(375,000

)

Total comprehensive income

-

2,167,047

2,167,047

Balance at 30th June 2018

100

39,585,035

39,585,135

Cash flows from operating activities

Cash generated from operations

1

(8,994,030

)

8,933,613

Interest paid

(165,398

)

(143,503

)

Tax paid

(953,735

)

(14,429

)

Net cash from operating activities

(10,113,163

)

8,775,681

Cash flows from investing activities

Purchase of tangible fixed assets

(857,867

)

(6,407,676

)

Sale of tangible fixed assets

11,000

-

Sale of investment property

2,389,641

1,616,102

Interest received

9,032

5,400

Net cash from investing activities

1,551,806

(4,786,174

)

Cash flows from financing activities

New loans in year

29,899,041

4,025,000

Capital repayments in year

(20,181,962

)

(3,397,750

)

Amount introduced by directors

81,285

-

Amount withdrawn by directors

-

(178,261

)

Equity dividends paid

(375,000

)

(750,000

)

Net cash from financing activities

9,423,364

(301,011

)

Increase in cash and cash equivalents

862,007

3,688,496

Cash and cash equivalents at beginning of year

2

12,289,392

8,600,896

Cash and cash equivalents at end of year

2

13,151,399

12,289,392

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30.6.18

30.6.17

£

£

Profit before taxation

4,671,787

7,100,867

Depreciation charges

527,974

183,905

Profit on disposal of fixed assets

(223,242

)

(630,852

)

Finance costs

165,398

143,503

Finance income

(9,032

)

(5,400

)

5,132,885

6,792,023

Increase in stocks

(18,056,895

)

(1,735,759

)

Decrease/(increase) in trade and other debtors

1,694,149

(581,196

)

Increase in trade and other creditors

2,235,831

4,458,545

Cash generated from operations

(8,994,030

)

8,933,613

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these

Balance Sheet amounts:

Year ended 30th June 2018

30.6.18

1.7.17

£

£

Cash and cash equivalents

13,151,399

12,289,392

Year ended 30th June 2017

30.6.17

1.7.16

£

£

Cash and cash equivalents

12,289,392

8,600,896

1.	STATUTORY INFORMATION

P.J. Livesey Holdings Limited 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.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Basis of consolidation

The consolidated financial statements include the company and its subsidiary undertakings.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions

that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for

revenues and expenses during the year. However, the nature of estimation means that actual outcomes could

differ from those estimates. The following judgements (apart from those involving estimates) have had the most

significant effect on amounts recognised in the financial statements.

Stocks

Stocks are valued in accordance with the accounting policy given. Costs incurred in pursuing the acquisition of

prospective sites are initially recognised as work in progress. Management make judgements at regular

milestones as to whether such costs should be expensed to the income statement or carried forwards as work in

progress based on the likelihood of prospective sites being acquired, planning permission being granted and

subsequently progressing into future developments.

The following are the Group's key sources of estimation uncertainty:

Revaluation of investment properties

The Group carries its investment property at fair value, with changes in fair value being recognised in the income

statement. The Group values its investment property using an estimated yield applied to the income generated by

the investment property. The estimated yield is based on anticipated market yields.

Estimation of future income and costs to complete

In order to determine the profit the Group is able to recognise on its developments in a particular period, it has to

estimate costs to complete on such developments and make estimates relating to future sales price margins on

those developments. In making these assessments there is a degree of inherent uncertainty. The Group has

developed internal controls to assess and review carrying values and the appropriateness of the estimates made.

If estimated future income less costs to complete is anticipated to be lower than costs incurred to date, then full

provision is made in the period in which such a lost is first foreseen.

Turnover

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

value added tax and other sales taxes.

Turnover from the sale of property is recognised on legal completion.

Rental income is primarily generated from short term hires of the group's fleet. The income is recognised as the

fleet is utilised by renters.

Ground rent received on investment properties is recognised on an accruals basis.