St Mark Homes Plc - Half-year Report PR Newswire

6 September 2017

St Mark Homes Plc

(''SMH'' or “the Company'')

Unaudited Interim Report for the six month period ended 30 June 2017

Review of operations for the six month period ended 30 June 2017

The Directors are pleased to announce the interim results for six months ended 30 June 2017. The company continues to trade profitably as a residential and mixed use property developer.  

The Directors are pleased to report a pre-tax profit of £210,976 (2016 - £315,493) for the period.

The Company paid an interim Ordinary share dividend of 5.5p per share on 14 July 2017 (2016 – 5.0p). This dividend was not accrued in the accounts at 30 June 2017. This represents a 10% growth in dividend over the corresponding period last year. The net assets per share stands at 136 pence (2016 – 137p) at the end of this interim reporting period.

The Company is also pleased to announce plans to initially raise up to £2m through the issue of 2 1?2 year corporate bonds through the Crowdstacker platform in the coming months. The bonds will carry an annual coupon of 6% and will be ISA eligible. The Directors believe that this additional capital will enable the Company to make a number of new project investments and should lead to a stronger and more profitable business going forward.

A summary of the progress on our current projects is set out below: 

Sutton High Street, Sutton

The Company has invested in a regeneration property development venture at Sutton High Street.   Phase I of the development project (consisting of 41 residential units over ground floor retail space) was completed in October 2016).   All residential units have been sold on this first phase.   The Company retains an interest in the commercial space and is in advanced negotiations with a high street retailer on the letting of this space.   The Company also retains an interest in the commercial space and the neighbouring derelict old Prince Regent public house site.   Following an extensive consultation with the local authority our development partner   intends to make a detailed planning application to redevelop the derelict public house site to provide a new build development of 35 residential units over ground floor commercial / retail space in late September 2017.

Gwynne Road, London, SW11

St Mark has taken a 40% joint venture interest in the redevelopment of the site at 55- 66 Gwynne Road.   Construction of this mixed-use scheme (33 residential flats over ground and first floor commercial/retail space) is now well underway and is forecast to be completed toward the end 2018.  The Company is delighted to report that contracts have been exchanged 11 of the 33 residential units (representing the affordable / social housing element of the scheme). Given the relatively early stage of construction we have not recognised our profit share on this exchanged element at this time.

London Road, Hounslow, TW3

St Mark has taken a joint venture interest of up to 40% in this development of 34 all private flats in Hounslow, West London. Construction is well underway and is forecast to be completed in May / June 2018. Marketing of the scheme is scheduled to start in earnest in Autumn 2017.

Signed on behalf of the board

S Ryan


Unaudited Consolidated Profit and loss account and statement of comprehensive income for the six months ended 30 June 2017

                                                        2017       2016

                                                          £          £

Group turnover                                         71,325    1,423,749

Cost of sales                                         (10,806)  (1,153,400)

Gross Profit                                           60,519     270,349

Administrative expenses                               (117,847)  (181,110)

Operating Profit/(Loss)                               (57,328)    89,239

Negative Goodwill Released                             104,789

Joint developers share of profit                          -      (100,062)

Share of operating profit in joint venture             30,220     223,387

Profit before interest and taxation                    77,681     212,564

Interest receivable and similar income                 133,409    103,020

Interest payable and similar charges                    (114)      (91)

Profit/(Loss) on ordinary activities before taxation   210,976    315,493

Taxation on ordinary activities                       (20,441)   (63,099)

                                                      _________ __________

Profit /(Loss) on ordinary activities after taxation   190,535    252,394

                                                      _________ __________

Profit/ (Loss) per share – basic and diluted

Ordinary shares                                         4.3p       8.6p

All amounts relate to continuing activities.

All recognised gains and losses in the current and prior period are included in the profit and loss account.

Unaudited Consolidated Balance sheet
at 30 June 2017

                            Jun-17    Jun-17    Jun-16    Jun-16

                               £         £         £         £

Non Current assets

Tangible assets                          1,227               1,636

Current assets

Debtors                    5,219,842           4,739,511

Cash at bank and in hand     955,349              31,662

                            ________            ________

                           6,171,191           4,771,173

Creditors: amounts falling

due within one year        (186,492)           (721,448)

                           _________            ________

Net current assets                   5,988,699           4,049,725

                                     _________            ________

Net Assets                           5,989,926           4,051,361

                                     _________            ________

Capital and reserves

Called up share capital              2,206,501           1,478,478

Capital redemption reserve           1,009,560           1,009,560

Other reserve                          211,822             211,822

Share Premium                          375,246                   -

Merger Reserve                         327,060                   -

Profit and loss account              1,859,737           1,351,501

                                     _________            ________

Shareholders’ funds                  5,989,926           4,051,361

                                     _________            ________

Notes forming part of the unaudited interim report
for the six months ended 30 June 2017

1.         Accounting Policies

The financial information contained in this unaudited interim report has been prepared on the basis of the accounting policies set out in the St Mark Homes PLC audited financial statements for the year ended 31 December 2016, which have been applied consistently. The financial statements for the year ended 31 December 2016 have been filed at Companies House. The company’s auditors Kingston Smith LLP have not reviewed these interim accounts.

2.         Taxation on Profit on ordinary activities

For the purpose of this unaudited interim report, the tax charge is calculated at 19.25% of the taxable (loss)/profit for the period.

3.          Earnings per share

Earnings per share has been calculated by dividing the profit after tax for the period of £190,535 by the weighted average number of ordinary shares in issue of 4,413,003 .

4.           Non Statutory Financial Statements

The financial information contained in this unaudited interim report does not constitute full statutory financial statements as defined by section 240 of the Companies Act 1985.