Company Registration No. SC031286 (Scotland)
Company
year
£
SPRINGFIELD PROPERTIES PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2017
SPRINGFIELD PROPERTIES PLC
CONTENTS
Page
Company Information ...................................................................................................................................... 2
Chairman’s Statement ..................................................................................................................................... 3
Strategic Report .............................................................................................................................................. 5
Directors’ Report ............................................................................................................................................. 8
Statement of Directors’ Responsibilities ........................................................................................................ 11
Independent Auditor’s Report ....................................................................................................................... 12
Consolidated Profit and Loss Account .......................................................................................................... 14
Consolidated Balance Sheet ......................................................................................................................... 15
Company Balance Sheet .............................................................................................................................. 16
Consolidated Statement of Changes in Equity .............................................................................................. 17
Company Statement of Changes in Equity ................................................................................................... 18
Consolidated Statement of Cash Flows ........................................................................................................ 19
Company Statement of Cash Flows .............................................................................................................. 20
Notes to the Financial Statements ................................................................................................................ 21
1
SPRINGFIELD PROPERTIES PLC
COMPANY INFORMATION
DIRECTORS:
Mr A W Adam
Mrs A F Adam
Mr J G Adam
Mr I Smith
Mr R MacLeod
Mr R Eddie (non-executive)
Ms M H Motion
Mr M Benson (non-executive)
Mr E MacLeod
Mr T Leggeat
SECRETARY:
Ms M H Motion
REGISTERED OFFICE:
Alexander Fleming House
8 Southfield Drive
ELGIN
IV30 6GR
COMPANY REGISTRATION NUMBER:
SC031286 (Scotland)
SOLICITORS:
INDEPENDENT AUDITOR:
Kerr Stirling LLP
10 Albert Place
STIRLING
FK8 2QL
Burness Paull
50 Lothian Road
Festival Square
EDINBURGH
EH3 9WJ
Johnston Carmichael LLP
Commerce House
South Street
ELGIN
IV30 1JE
2
SPRINGFIELD PROPERTIES PLC
CHAIRMAN’S STATEMENT
FOR THE YEAR ENDED 31 MAY 2017
I am pleased to report another year of strong growth with turnover increasing 22% to £111 million and profit
before tax by 31% to £6.7 million. Reaching the milestone of £100 million revenue for the first time in our
history has largely been due to the tremendous work carried out by each and every one of our 500 staff.
Springfield Properties is a leading housebuilder focused on Scotland offering high-quality private and
affordable housing. In the year ended 31 May 2017, Springfield saw growth in all parts of its business as
completions increased with 620 new homes and the group adding significantly to the strong land bank that
secures our future growth. At year end, our strong land bank (including secured sites subject to planning)
stood at 9,195 plots.
Private Housing
Springfield’s private housing business has achieved a strong reputation in Scotland of delivering high-quality,
high-specification housing with the widest range of choice offered to homeowners. We have also developed
a core competency in developing difficult sites. Our advantage lies in the fact that our decision making
process is flexible and quick as everything is done locally in Scotland.
During the year, we built 437 private homes, representing a year-on-year growth of 10%. In the private
housing business, our main focus for this year has been to progress the Springfield Villages. We have a
current pipeline of five villages secured in strong locations near fast-growing cities and well connected to
transport infrastructure. These five villages will deliver 10,000 homes and provide us with a firm base for the
future. Our ‘Village’ concept involves developing larger sites of 800 to 3,000 homes and includes amenities
such as schools, high street, medical centres etc. By building full villages we benefit from planning efficiencies
as we control the full masterplan, from rising land values and from securing approximately 20 years of
development with known land costs.
The Dykes of Gray village near Dundee, which will have potentially 1,500 new homes, is already up and
running and provided us with 48 sales this year, bringing the total number of completions to 56. The finished
product – both the homes and the community areas – look superb and set the standard for our other villages.
We have also made a start at the Wisp village near Edinburgh, where the first of potentially 800 homes are
under construction and sales are strong. At Bertha Park village in Perth, which will be around 3,000 homes,
the access road is under construction, and will see the start of construction and sales on site from autumn
2017. At Elgin village, we are still obtaining the necessary contracts and construction of the 2,500 homes is
expected to start in 2018. Post-period, plans for the first 870 new homes, two new schools and the state-of-
the-art Moray Sports Centre were approved by Moray Council Planning Committee.
A fifth village has been added to our portfolio in the past year. Durieshill near Stirling will provide us with
2,500-3,000 homes. We have secured the land and are working on the planning application.
Affordable Housing
Springfield has achieved a solid track record since we entered the affordable housing market in 2002. This
part of the group’s business has contracted revenues and low capital exposure.
Over the years we have increasingly become a trusted partner of local authorities as we steadily increase
the number of affordable homes built and handed over. One of our main aims over the past two years has
been to increase the size of our affordable housing business. This year we have built 183 affordable homes,
up 91% from 2015/2016. This brings the number of affordable homes built to date to over 1,500 homes, and
gives us approximately 4% share of the affordable housing market in Scotland.
The Scottish Government has allocated £3.2 billion to build 50,000 affordable homes over the course of this
parliament. This is a massive increase from the 30,000 target of the last five years. Our land buying and
planning team have been busy securing land to help meet this target and we expect to see positive results
from this activity start to feed through into our accounts next year. We have strong relationships with 12 local
authorities and housing associations and are negotiating with seven more. These relationships will be
instrumental in reaching our target to double turnover in affordable housing over the next two years.
3
SPRINGFIELD PROPERTIES PLC
CHAIRMAN’S STATEMENT
FOR THE YEAR ENDED 31 MAY 2017 (CONTINUED)
Outlook
As we look to the future, I would like to express gratitude to those who have enabled us to reach this point.
In particular, on behalf of the management team, I would like to thank all of our 500 staff for their on-going
support. With the strengthening of Springfield’s foundations and the long-term growth drivers showing no
sign of abating, we look forward to delivering further growth in 2017/18.
In the 2017/2018 year, our focus will continue to be to progress our five villages and bring those most
advanced towards completion. To be given the privilege to design and build a complete village is an awesome
responsibility, one that everyone in Springfield relishes, particularly in the knowledge that our work will be a
feature of the Scottish built environment for hundreds of years to come.
In our affordable housing business, we expect to double our efforts and continue to grow.
There is no doubt that there will be many changes to come and we will approach them with our usual
enthusiasm. The things that make Springfield successful - our focus on customers and quality - will not
change. They will go on making Springfield successful whatever the challenges.
It’s an exciting future for Springfield!
Mr A W Adam
Chairman
21 August 2017
4
SPRINGFIELD PROPERTIES PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2017
REVIEW OF THE BUSINESS
The principal business of the group continued to be that of property development. The Chairman’s Statement
on page 3 details activities and development of the business over the year.
FINANCIAL AND BUSINESS HIGHLIGHTS
Highlights include:
Revenue increased by 22% to £111m
Profit before tax increased by 31% to £6.7m
The group built its 4,000th home
Completions increased by 25% with 620 new homes handed over
91% increase in affordable housing handovers
4 new villages are at various stages in planning and build for 800 to 3,000 homes
Land for a 5th new village secured near Stirling with potential for 3,000 homes. Land for new villages
already secured in Dundee – potentially 1,500 homes, Edinburgh – potentially 800 homes, Perth –
potentially 3,000 homes, and Elgin – potentially 2,500 homes.
KEY PERFORMANCE INDICATORS
2017 vs 2016
Financial
Revenue
Gross Profit
Operating Profit
Profit before Tax
Work in Progress
Working Capital
Net Assets
Completions
Private
Affordable
Total
Average Selling Price
Private
Affordable
May-17
£000
110,589
16,684
7,832
6,691
81,800
70,158
32,387
May-16
£000
90,779
13,790
6,109
5,101
73,837
55,095
29,245
Homes
Homes
437
183
620
£000
197.6
127.0
399
96
495
£000
195.7
125.6
5
SPRINGFIELD PROPERTIES PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2017 (CONTINUED)
Personnel
Number of employees up to 491 in May 2017 from 456 in May 2016
104 employees, 21.2% of the workforce in training / apprenticeships in May 2017, up from 19.3% of
the workforce in May 2016
Environmental
All homes are designed to the latest environmental standards. Within the regulatory requirements when
designing homes we work to optimise the following: improving profitability, reducing environmental impact
and minimising energy bills for customers.
Affordable housing is built to an environmental standard higher than regulatory requirement reducing the
environmental impact of our homes overall.
Quality Management
The company is accredited to ISO 19011-2011 standard. During 2017 there was a rise of 32% in the number
of improvements actioned as a result of quality management compared to 2016.
KEY RISKS AND UNCERTAINTIES
Area of risks identified and mitigated against include: market, credit, liquidity, price / sales, cash flow,
resources, legal and regulatory, health and safety, land supply, planning and funding. Market, credit and
liquidity risk are dealt with at note 26 of the financial statements.
Price / Sales Risk
The risk of facing reduced demand in an area is mitigated by
Regular reviews of market conditions, product range, pricing and geographic spread to make sure
the right homes are delivered in the right places at a profitable price.
Customer service, quality of build and customer satisfaction are monitored to maintain reputation.
Monitoring of changes in government housing policy highlights opportunities and allows forward
planning to mitigate risks identified as result of changes in policy.
Mortgage availability remained strong. Any reduction in mortgage availability in the private market is
mitigated by growth of the affordable housing side of the business.
Cash Flow Risk
Detailed budgeting and regular forecasting allows efficient management of future cash flows.
Resources Risk
The labour market is competitive and there is some upward pressure on building materials.
Strategies in place to maintain Springfield’s reputation as a good employer and ensure the appropriate supply
of skills includes:
remuneration and reward review
annual training review for every employee
a board led culture of empowerment
Upward pressure on materials prices is being mitigated by:
actively seeking alternative suppliers and materials
standardising materials and products across construction to add to buying power
negotiating deals at a national level directly with manufacturers
Legal and Regulatory Risk
The group has an in house legal department which advises and supports the group with legal compliance.
6
SPRINGFIELD PROPERTIES PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2017 (CONTINUED)
Health and Safety Risk
There are health and safety risks inherent to construction. Health and safety is an agenda item at every board
meeting. The group has an in house health and safety department which ensures overall compliance by
monitoring health and safety standards across sites with regular visits
taking action where required
initiating training
introducing or updating applicable policies or procedures
Land Supply Risk
The risk of securing sufficient land is mitigated by a healthy and growing supply of land secured by contract
(17 years plus) in a spread of geographic locations which will appeal to our range of customers. Land is
brought forward, through the planning system, in tranches considered by the board to be sufficient to allow
the company to achieve its plans for growth.
Planning Risk
Delays in receiving planning consents could interrupt business. Planning is dealt with internally by expert
planners who have good relationships with local authorities. And who are supported by a full architectural
and design team. The board reviews the balance of land held at the various stages of planning to ensure the
appropriate flow of consented land.
Funding Risk
The group has bank facilities which have appropriate covenants and sufficient headroom in place. The group
and funders communicate regularly.
FINANCIAL RISK MANAGEMENT OBJECTIVES
Details of the group’s financial risk management objectives and policies are set out in Note 26 to these
financial statements.
FUTURE DEVELOPMENTS
Future development of the group is dealt with in the Chairman’s Statement.
Mr A W Adam
Chairman
21 August 2017
7
SPRINGFIELD PROPERTIES PLC
DIRECTORS’ REPORT
FOR THE YEAR ENDED 31 MAY 2017
The directors present their annual report and the audited financial statements of the group for the year ended
31 May 2017.
PRINCIPAL ACTIVITY AND BUSINESS REVIEW
The group is no longer required to include the Principal Activity and Review of the Business within the
Directors’ Report. This information is now included within the Strategic Report above, as part of the ‘Review
of the Business’ under the Amendment to the Companies Act 2006 of s.414c(2a).
DIRECTORS
The Board comprised the following directors who served throughout the year and up to the date of this report:
Name
Position
Mr A W Adam
Mrs A F Adam
Mr J G Adam
Mr I Smith
Mr R MacLeod
Mr R Eddie
Ms M H Motion
Mr M Benson
Mr E MacLeod
Mr T Leggeat
Chairman
Director
Director
Managing Director
Civils Director
Non-Executive Director
Financial Director
Non-Executive Director
Commercial Director
Partnerships Director
DIRECTORS’ INTERESTS
The directors’ interests in the share capital of the company at 31 May 2017, held either directly or through
related parties, were as follows:
Name of director
Mr A W Adam
- Direct
-
Indirect
Mrs A F Adam
Mr J G Adam
Mr I Smith
- Direct
-
Indirect
Mr R MacLeod
Mr R Eddie
Ms M H Motion
Mr M Benson
Mr E MacLeod
Mr T Leggeat
Number of
ordinary
shares
% of ordinary share
capital and voting
rights
3,112,500
1,464,746
926,200
1,274,000
32,400
77,092
51,900
-
1,000
-
414
1,230
6,941,482
42.6%
20.1%
12.7%
17.4%
0.4%
1.1%
0.7%
0.0%
0.0%
0.0%
0.0%
0.0%
95.0%
8
SPRINGFIELD PROPERTIES PLC
DIRECTORS’ REPORT
FOR THE YEAR ENDED 31 MAY 2017 (CONTINUED)
RESULTS AND DIVIDENDS
The results for the year are set out on page 14.
Ordinary dividends were paid amounting to £2,336,930 (2016 - £2,132,910), equating to 32p (2016 – 30p)
per share. There is no final dividend proposed.
EMPLOYEE CONSULTATION
The group’s policy is to consult and discuss with employees’ representatives matters likely to affect their
interests.
Once a year employees are given the opportunity to purchase shares in the company.
DISABLED PERSONS
The group’s policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary
assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure
suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining
employees who become disabled, to enable them to perform work identified as appropriate to their aptitude
and abilities.
EQUAL OPPORTUNITIES
The group places considerable value on the involvement of its employees and has continued to keep them
informed on matters affecting them as employees and on various factors affecting the performance of the
group. This is achieved through formal and informal meetings. Equal opportunity is given to all employees
regardless of their sex, age, colour, race, religion or ethnic origin.
POST YEAR END EVENTS
Details of post year end events are included in note 31 to the financial statements.
GOING CONCERN
The directors have a reasonable expectation that the group has adequate resources to continue in
operational existence for the foreseeable future and thus they continue to adopt the going concern basis in
preparing the financial statements. Further details regarding the adoption of the going concern basis can be
found in note 2.4 of the financial statements.
DISCLOSURE OF INFORMATION TO THE AUDITOR
In the case of each of the persons who are directors of the company and group at the date when this report
is approved:
•
•
So far as each director is aware, there is no relevant audit information of which the company and group’s
auditor is unaware; and
Each of the directors has taken all steps that they ought to have taken as a director to make themselves
aware of any relevant audit information and to establish that the auditor is aware of the information.
This information is given and should be interpreted in accordance with the provisions of Section 418 of the
Companies Act 2006.
9
SPRINGFIELD PROPERTIES PLC
DIRECTORS’ REPORT
FOR THE YEAR ENDED 31 MAY 2017 (CONTINUED)
BOARD OF DIRECTORS
The group supports the concept of an effective Board leading and controlling the group. The Board of
Directors is responsible for approving company and group policy and strategy. It meets regularly and has a
schedule of matters specifically reserved to it for decision. All directors have access to advice from
independent professionals at the group's expense. Training is available for new and existing directors as
necessary.
COMMUNICATION WITH SHAREHOLDERS
Communications with shareholders are given a high priority by the management. In addition to the
publication of an annual report and an interim report, there is regular dialogue with shareholders and analysts.
INTERNAL CONTROL
The directors acknowledge they are responsible for the company and group’s system of internal control and
for reviewing the effectiveness of these systems. The risk management process and systems of internal
control are designed to manage rather than eliminate the risk of the group failing to achieve its strategic
objectives. It should be recognised that such systems can only provide reasonable and not absolute
assurance against material misstatement or loss. The group has well established procedures which are
considered adequate given the size of the business.
AUDITOR
The Board as a whole considers the appointment of the external auditor, including their independence,
specifically including the nature and scope of non-audit services provided.
The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies
Act 2006.
REMUNERATION
The remuneration of the directors has been fixed by the Board as a whole. The Board seeks to provide
appropriate reward for the skill and time commitment required so as to retain the right calibre of director at a
cost to the group which reflects current market rates.
Details of directors’ fees and of payments made for professional services rendered are set out in Note 7 to
the financial statements.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Details of the financial risk management objectives and policies are set out in Note 26 to these financial
statements.
On behalf of the board
Mr A W Adam
Chairman
21 August 2017
10
SPRINGFIELD PROPERTIES PLC
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, Directors’ Report and the financial
statements in accordance with applicable law and regulations.
Company law requires the directors to prepare group and company financial statements for each financial
year. Under that law the directors have elected to prepare group financial statements in accordance with
International Financial Reporting Standards (“IFRS” as adopted by the European Union (“EU”)) and have
also elected to prepare the parent company financial statements in accordance with IFRS as adopted by the
EU. 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 group and the parent company and 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 judgments and accounting estimates that are reasonable and prudent
•
•
state whether applicable IFRSs 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 group and parent company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain
the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the
financial position of the group and parent company 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 group
and parent company and hence for taking reasonable steps for the prevention and detection of fraud and
other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information
included on the company's website. Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation in other jurisdictions.
On behalf of the board
Mr A W Adam
Chairman
21 August 2017
11
SPRINGFIELD PROPERTIES PLC
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF SPRINGFIELD PROPERTIES PLC
We have audited the financial statements of Springfield Properties Plc for the year ended 31 May 2017, which
comprise the Consolidated Profit and Loss Account, the Consolidated and Company Balance Sheets, the
Consolidated and Company Statements of Cash Flows, the Consolidated and Company Statements of
Changes in Equity and the related notes numbered 1 to 31. The financial reporting framework that has been
applied in their preparation is the applicable law and International Financial Reporting Standards (IFRSs) as
adopted by the European Union and, as regards the parent company financial statements, as applied in
accordance with the provisions of the Companies Act 2006.
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 group's members
those matters we are required to state to them in an Auditor’s Report 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.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITOR
As explained more fully in the Statement of Directors’ Responsibilities set out on page 11, the directors are
responsible for the preparation of the financial statements and for being satisfied that they give a true and
fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with
applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to
comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient
to give reasonable assurance that the financial statements are free from material misstatement, whether
caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to
the group's and the parent company’s circumstances and have been consistently applied and adequately
disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall
presentation of the financial statements. In addition, we read all the financial and non-financial information
in the Annual Report to identify material inconsistencies with the audited financial statements and to identify
any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge
acquired by us in the course of performing the audit. If we become aware of any apparent material
misstatements or inconsistencies we consider the implications for our report.
OPINION ON FINANCIAL STATEMENTS
In our opinion:
•
•
•
•
the financial statements give a true and fair view of the state of the group’s and the parent
company's affairs as at 31 May 2017 and of the group’s profit for the year then ended;
the financial statements have been properly prepared in accordance with IFRS as adopted by
the European Union; and
the parent company financial statements have been properly prepared in accordance with
IFRSs as adopted by the European Union and as applied in accordance with the provisions of
the Companies Act 2006; and
the financial statements have been prepared in accordance with the requirements of the
Companies Act 2006.
12
SPRINGFIELD PROPERTIES PLC
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF SPRINGFIELD PROPERTIES PLC (CONTINUED)
OPINION ON OTHER MATTER 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 Strategic Report and the Directors’ Report for the financial year for which
the financial statements are prepared is consistent with the financial statements;
the Strategic Report and the Directors’ Report have been prepared in accordance with applicable
legal requirements.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
In 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 any material misstatements in the Strategic Report
and the Directors’ Report.
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.
David McBain (Senior Statutory Auditor)
for and on behalf Johnston Carmichael LLP
Chartered Accountants
Statutory Auditor
21 August 2017
Commerce House
South Street
Elgin
IV30 1JE
13
SPRINGFIELD PROPERTIES PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2017
Revenue
Cost of sales
Gross profit
Administrative expenses
Other operating income
Notes
2017
£000
4
110,589
(93,905)
16,684
(8,945)
93
2016
£000
90,779
(76,989)
13,790
(7,811)
130
Operating profit
5
7,832
6,109
Interest receivable and similar income
Finance costs
Profit before tax
Tax
Profit for the year and total comprehensive income
Profit for the year and total comprehensive income is
attributable to:
-Owners of the parent company
-Non-controlling interests
4
8
(1,145)
9
6,691
(1,278)
5,413
5,359
54
5,413
1
(1,009)
5,101
(1,036)
4,065
4,065
-
4,065
Earnings per share
Basic earnings, on profit for the year (pence per share)
10
73.42p
57.08p
The group has no items of other comprehensive income.
The accompanying notes on pages 21 to 47 form an integral part of these financial statements.
14
SPRINGFIELD PROPERTIES PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 MAY 2017
Note
12
17
15
16
18
20
21
20
21
22
23
23
Non-current assets
Property, plant and equipment
Accounts receivable
Current assets
Inventories and work in progress
Accounts receivable
Cash and cash equivalents
Total assets
Current liabilities
Accounts payable
Short-term borrowings
Short-term obligations under finance lease
Corporation tax
Non-current liabilities
Long-term borrowings
Long-term obligations under finance lease
Deferred tax
Total liabilities
Net assets
Equity
Share capital
Share premium
Retained earnings
Equity attributable to owners of the parent
company
Non-controlling interests
2017
£000
2,803
488
3,291
81,800
6,447
8,335
96,582
2016
£000
2,214
485
2,699
73,837
4,105
2
77,944
As at
1 June 2015
£000
2,120
467
2,587
60,611
5,134
12
65,757
99,873
80,643
68,344
25,050
-
500
874
20,049
1,750
341
709
20,498
1,475
349
176
26,424
22,849
22,498
40,429
28,182
19,327
588
45
41,062
67,486
309
58
28,549
51,398
247
58
19,632
42,130
32,387
29,245
26,214
73
10,285
22,017
32,375
12
32,387
73
10,177
18,995
71
9,080
17,063
29,245
26,214
-
-
29,245
26,214
These financial statements were approved by the Board of Directors on 21 August 2017
Signed on behalf of the Board by:
Mr A W Adam
Chairman
Company number: SC031286
The accompanying notes on pages 21 to 47 form an integral part of these financial statements.
15
SPRINGFIELD PROPERTIES PLC
COMPANY BALANCE SHEET
AS AT 31 MAY 2017
Non-current assets
Property, plant and equipment
Investments
Accounts receivable
Current assets
Inventories and work in progress
Accounts receivable
Cash and cash equivalents
Total assets
Current liabilities
Accounts payable
Short-term borrowings
Short-term obligations under finance lease
Corporation tax
Non-current liabilities
Long-term borrowings
Long-term obligations under finance lease
Deferred tax
Total liabilities
Net assets
Equity
Share capital
Share premium
Retained earnings
Total equity
Note
12
14
17
15
16
18
20
21
20
21
22
23
23
2017
£000
1,717
42
488
2,247
81,800
6,585
8,324
96,709
2016
£000
2,214
-
485
2,699
73,837
4,105
2
77,944
As at
1 June 2015
£000
2,120
-
467
2,587
60,611
5,134
12
65,757
98,956
80,643
68,344
25,040
-
222
767
20,049
1,750
341
709
20,498
1,475
349
176
26,029
22,849
22,498
40,429
28,182
19,327
336
38
40,803
66,832
309
58
28,549
51,398
247
58
19,632
42,130
32,124
29,245
26,214
73
10,285
21,766
73
10,177
18,995
71
9,080
17,063
32,124
29,245
26,214
As permitted s408 Companies Act 2006, the company has not presented its own profit and loss account and
related notes. The company’s profit for the year was £5,108,803 (2016 - £4,064,549).
These financial statements were approved by the Board of Directors on 21 August 2017
Signed on behalf of the Board by:
Mr A W Adam
Chairman
Company number: SC031286
The accompanying notes on pages 21 to 47 form an integral part of these financial statements.
16
SPRINGFIELD PROPERTIES PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2017
Notes
Share
capital
£000
Share
premium
£000
Retained
earnings
£000
Non-
controlling
interest
£000
1 June 2015
Issue of share capital
23
Total comprehensive income
for the year
Dividends
31 May 2016
Issue of share capital
23
Total comprehensive income
for the year
Acquisition of minority
interest
Dividends
31 May 2017
71
2
-
-
73
-
-
-
73
Total
£000
26,214
1,099
4,065
(2,133)
29,245
108
9,080
17,063
1,097
-
-
-
10,177
4,065
(2,133)
18,995
108
-
-
-
-
-
-
-
-
-
-
10,285
5,359
54
5,413
-
(42)
(42)
(2,337)
22,017
-
12
(2,337)
32,387
The share capital account records the nominal value of shares issued.
The share premium account records the amount above the nominal value received for shares sold, less
transaction costs.
Retained earnings represents accumulated profits less losses and distributions.
The accompanying notes on pages 21 to 47 form an integral part of these financial statements.
17
SPRINGFIELD PROPERTIES PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2017
Notes
Share capital
£000
Share
premium
£000
Retained
earnings
£000
Total
£000
1 June 2015
Issue of share capital
23
Total comprehensive income
for the year
Dividends
31 May 2016
Issue of share capital
23
Total comprehensive income
for the year
Dividends
31 May 2017
71
2
-
-
73
-
-
-
9,080
17,063
26,214
1,097
-
1,099
-
-
10,177
108
-
-
4,065
(2,133)
18,995
4,065
(2,133)
29,245
-
108
5,108
(2,337)
21,766
5,108
(2,337)
32,124
73
10,285
The share capital account records the nominal value of shares issued.
The share premium account records the amount above the nominal value received for shares sold, less
transaction costs.
Retained earnings represents accumulated profits less losses and distributions.
The accompanying notes on pages 21 to 47 form an integral part of these financial statements.
18
SPRINGFIELD PROPERTIES PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR TO 31 MAY 2017
Operating activities
Profit for the year after taxation
Adjusted for:
Taxation charged
Finance costs
Interest receivable and similar income
Gain on disposal of tangible fixed assets
Depreciation and impairment of tangible fixed assets
Operating cash flows before movements in working
capital
Increase in inventory
(Increase)/decrease in trade and other receivables
Increase/(decrease) in trade and other payables
Net cash generated from/(used in) operations
Income taxes paid
Net cash inflow/(outflow) from operating activities
Investing activities
Purchase of property, plant and equipment
Proceeds on disposal of property, plant and equipment
Purchase of subsidiary company
Interest received and similar income
Net cash used in investing activities
Financing activities
Proceeds from issue of shares
Proceeds from bank loans
Proceeds from other borrowings
Repayment of other borrowings
Payment of finance leases obligations
Dividends paid
Interest paid
Net cash inflow from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Note
2017
£000
2016
£000
5,413
4,065
1,278
1,145
(4)
(146)
772
8,458
(7,963)
(2,345)
5,000
3,150
(1,126)
2,024
(843)
526
(42)
4
(355)
108
10,000
1,375
(453)
(460)
(2,337)
(1,145)
7,088
8,757
(422)
1,036
1,009
(1)
(10)
674
6,773
(13,226)
1,011
(454)
(5,896)
(502)
(6,398)
(293)
10
-
1
(282)
1,099
10,000
400
(365)
(421)
(2,133)
(1,004)
7,576
896
(1,318)
Cash and cash equivalents at end of year
24
8,335
(422)
The accompanying notes on pages 21 to 47 form an integral part of these financial statements.
19
SPRINGFIELD PROPERTIES PLC
COMPANY STATEMENT OF CASH FLOWS
YEAR TO 31 MAY 2017
Operating activities
Profit for the year after taxation
Adjusted for:
Taxation charged
Finance costs
Interest receivable and similar income
Gain on disposal of tangible fixed assets
Depreciation and impairment of tangible fixed assets
Operating cash flows before movements in working
capital
Increase in inventory
(Decrease)/increase in trade and other receivables
Increase/(decrease) in trade and other payables
Net cash generated from/(used in) operations
Income taxes paid
Net cash inflow/(outflow) from operating activities
Investing activities
Purchase of property, plant and equipment
Proceeds on disposal of property, plant and equipment
Purchase of subsidiary company
Interest received and similar income
Net cash used in investing activities
Financing activities
Proceeds from issue of shares
Proceeds from bank loans
Proceeds from other borrowings
Repayment of other borrowings
Payment of finance leases obligations
Dividends paid
Interest paid
Net cash inflow from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
2017
£000
2016
£000
5,108
4,065
1,164
1,101
(4)
(20)
296
7,645
(7,963)
(2,483)
5,546
2,745
(1,126)
1,619
(625)
323
(42)
4
(340)
108
10,000
1,375
(453)
(106)
(2,337)
(1,120)
7,467
8,746
(422)
1,036
1,009
(1)
(10)
674
6,773
(13,226)
1,011
(454)
(5,896)
(502)
(6,398)
(293)
10
-
1
(282)
1,099
10,000
400
(365)
(421)
(2,133)
(1,004)
7,576
896
(1,318)
Cash and cash equivalents at end of year
8,324
(422)
The accompanying notes on pages 21 to 47 form an integral part of these financial statements.
20
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2017
1. Organisation and trading activities
Springfield Properties PLC (“the company”) is incorporated and domiciled in Scotland as a public limited
company and operates from its registered office in Alexander Fleming House, 8 Southfield Drive, Elgin,
IV30 6GR.
The group consists of Springfield Properties PLC and its subsidiary, Glassgreen Hire Limited.
2. Summary of significant accounting policies
The principal accounting policies adopted and applied in the preparation of the financial statements are set
out below.
These have been consistently applied to all the years presented unless otherwise stated.
2.1. Basis of accounting
The financial statements of Springfield Properties Plc have been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted for use in the European Union (“EU”) applied in
accordance with the provisions of the Companies Act 2006. These are the first financial statements
prepared under IFRS, see note 30 for the explanation of transition to IFRS.
The group has adopted all the standards and amendments to existing standards which are mandatory for
accounting periods beginning on 1 June 2015. The group has not early adopted any other standard,
interpretation or amendment that has been issued but is not yet effective.
At 31 May 2017 the following new and revised IFRSs relevant to the group are issued but are not yet
effective:
IFRS 9 Financial Instruments
IFRS 15 Revenue from Contracts with Customers
IFRS 16 Leases
IAS 7 (amendments) Disclosure of changes in liabilities arising from financing
activities
IAS 12 (amendments) Recognition of Deferred Tax Assets for Unrealised Losses
Annual Improvements to IFRSs: 2014-2016 cycle
Effective date
1 January 2018
1 January 2018
1 January 2019*
1 January 2017*
1 January 2017*
1 January 2017*
*Not yet endorsed for use in the EU
IFRS 9 will impact both the measurement and disclosures of financial instruments. The group is
currently assessing the impact of the revisions on the group’s and company’s results and financial
position, a process we expect to be finalised during the year ending 31 May 2018. Until such
assessment is completed it is not practical to provide an estimate of the full effect of IFRS 9. The
group has not yet completed the assessment of the full effect of this standard.
IFRS 15 ‘Revenue from Contracts with Customers’. It is expected that this standard will result in
some changes for construction companies, however the group has not yet completed the
assessment of the full effect of this standard.
IFRS 16 'Leases'. IFRS 16 requires lessees to recognise a lease liability reflecting future lease
payments and a 'right of use asset' for virtually all lease contracts. This is effective for the period
beginning on 1 August 2019, with earlier adoption permitted if IFRS 15 'Revenue from contracts
with customers' is also applied. The group has not yet assessed the full effect of this standard.
Of the other IFRSs and IFRICs, none are expected to have a material effect on the financial statements.
The financial statements have been prepared under the historical cost convention.
21
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
2. Summary of significant accounting policies (continued)
2.2. Basis of consolidation
The consolidated financial statements incorporate those of Springfield Properties PLC and its subsidiary
(ie entities that the group controls through its power to govern the financial and operating policies so as to
obtain economic benefits).
All financial statements are made up to 31 May 2017.
All intra-group transactions, balances and unrealised gains on transactions between group companies are
eliminated on consolidation.
2.3. Functional and presentation currencies
The financial statements are presented in Pound Sterling (£), rounded to the nearest £000, which is also
the currency of the primary economic environment in which the group operates (its functional currency).
2.4. Going concern
Any consideration of the foreseeable future involves making a judgement, at a particular point in time,
about future events which are inherently uncertain.
At the time of approving the financial statements, the directors have a reasonable expectation that the
group has adequate resources to continue in operational existence for the foreseeable future. Thus the
directors continue to adopt the going concern basis of accounting in preparing the financial statements.
2.5. Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable net of VAT and trade
discounts.
Private house sales
Revenue on private house sales is recognised when the significant risks and rewards of ownership have
been transferred to the purchaser which will normally occur at handover / legal completion.
Revenue is recognised at the fair value of the consideration received or receivable on legal completion.
Construction contracts
Revenue from construction contracts is recognised based on the measured value of work completed as
construction progresses. The measured value of work is based on certified valuations which consider the
stage of completion of contracts.
Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised
as expenses in the period in which they are incurred and contract revenue is recognised to the extent of
contract costs incurred where it is probable that they will be recoverable.
Contract expenses are recognised as incurred unless they create an asset related to future contract activity.
An expected loss on a contract is recognised immediately in the profit and loss account.
Revenues derived from variations on contracts are recognised only when they have been accepted by the
customer.
22
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
2. Summary of significant accounting policies (continued)
2.6. Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense in the period in
which the services are received, unless those costs are required to be recognised as part of the cost of
stock.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services
are received.
Termination benefits are recognised immediately as an expense when the group is demonstrably
committed to terminate the employment of an employee or to provide termination benefits.
2.7. Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2.8. Borrowing costs
Borrowing costs relating to qualifying assets are capitalised. All other borrowing costs are recognised as
an expense in the income statement as they are incurred.
2.9. 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 income statement 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 group’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 is provided using the liability method on temporary differences between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax is not recognised on temporary differences arising from the initial recognition of goodwill or
other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Deferred tax is measured on a non-discounted basis using the tax rates and laws that have then been
enacted or substantively enacted by the balance sheet date.
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 period
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.
23
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
2. Summary of significant accounting policies (continued)
2.10. Property, plant and equipment
Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation
and any impairment losses. Depreciation is recognised so as to write off the cost of assets less their
residual values over their useful lives on the following bases:
Buildings
- 2% straight line
Plant and machinery
- 25% straight line
Fixtures, fittings & equipment
- 25% straight line
Motor vehicles
- 25% straight line
Land is not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale
proceeds and the carrying value of the asset, and is credited or charged to the profit and loss account.
2.11. Fixed asset investments
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 or impairment losses are recognised immediately in the profit and 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.
2.12. Impairment of fixed assets
At each reporting end date, the group reviews the carrying amounts of its tangible fixed assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment
loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the group
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value-in-use. Any impairment loss and
reversal of losses are recognised in the profit and loss account.
2.13. Inventory
Property, including land held under development, acquired or being constructed for sale in the ordinary
course of business, rather than to be held for rental or capital appreciation, is held as stock and is measured
at the lower of cost and net realisable value.
Cost comprises of the invoiced value of the goods purchased and includes attributable direct costs, labour
and production overheads.
Net realisable value is the estimated selling price in the ordinary course of the business, based on market
prices at the reporting date and discounted for the time value of money if material, less estimated costs of
completion and the estimated costs necessary to make the sale. Any excess of the carrying amount of
stocks over its net realisable value is recognised as an impairment loss in the profit and loss account.
24
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
2. Summary of significant accounting policies (continued)
2.13. Inventory (continued)
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of
stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss
in the income profit and loss account.
Where sites are ‘secured’ via option agreements, these sites are only included as inventory when the
agreement becomes unconditional.
Options included as part of inventory are stated at the lower of cost and net realisable value.
2.14. Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised
by reference to the measured valuation of work of the contract activity at the reporting end date. Variations
in contract work, claims and incentive payments are included to the extent that the amount can be
measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed contract turnover, the expected loss is recognised
as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised
as expenses in the period in which they are incurred and contract revenue is recognised to the extent of
the contract costs incurred where it is probable that they will be recovered.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a
given period. The stage of completion is measured by the proportion of contract costs incurred for work
performed to date compared to the estimated total contract costs.
2.15. Financial instruments
Financial instruments are recognised in balance sheet when the group becomes party to the contractual
provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when
there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on
a net basis or to realise the asset and settle the liability simultaneously.
Loans and receivables
All of the group’s financial assets fall into loans and receivables category.
Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an
active market. Financial assets included in loans and receivables are recognised initially at cost.
Subsequent to initial recognition they are measured at amortised cost using the effective interest rate
method, less any impairment losses.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
A provision for impairment is made when there is objective evidence that, as a result of one or more events
that occurred after the initial recognition of the financial asset, the estimated future cash flows have been
affected.
Impaired debts are derecognised when they are assessed as uncollectible.
25
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
2. Summary of significant accounting policies (continued)
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire
or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of
ownership to another entity, or if some significant risks and rewards of ownership are retained but control
of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third
party.
Financial liabilities
All of the group’s financial liabilities fall into other financial liabilities category.
Other financial liabilities
Other non-derivative financial liabilities are initially measured at fair value less any directly attributable
transaction costs. Subsequent to initial recognition, these liabilities are measured at amortised cost using
the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of
allocating interest expense over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash payments through the expected life of the financial liability to the net
carrying amount on initial recognition.
Derecognition of other financial liabilities
Financial liabilities are derecognised when the group’s contractual obligations expire or are discharged or
cancelled.
2.16. Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts.
Bank overdrafts are shown within borrowings in current liabilities.
2.17. Leases
A lease is classified at the inception date as a finance lease or an operating lease.
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.
Finance leases are capitalised at the commencement of the lease at the inception date fair value of the
leased property or, if lower, at the present value of the minimum lease payments.
Lease payments are apportioned between the finance charges and the reduction of the lease liability so
as to achieve a constant rate of interest on the remaining balance of the liability.
Finance charges are charged to the profit and loss account.
Operating lease payments, including any lease incentives received, are recognised in the profit and loss
account on a straight-line basis over the term of the lease except where another more systematic basis is
more representative of the time pattern in which economic benefits from the lease asset are consumed.
2.18. Dividends
Dividends are recognised as liabilities in the period in which the dividends are approved and once they are
no longer at the discretion of the company.
26
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
2. Summary of significant accounting policies (continued)
2.19. Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of a company after
deducting all of its liabilities. Equity instruments issued by the group are recorded at the proceeds received
net of direct issue costs.
Share capital represents the amount subscribed for shares at nominal value.
The share premium account represents premiums received on the initial issuing of the share capital. Any
transaction costs associated with the issuing of shares are deducted from share premium, net of any related
income tax benefits. Any bonus issues are also deducted from share premium.
Retained earnings include all current and prior period results as disclosed in the statement of
comprehensive income.
3. Critical accounting estimates and judgements in applying accounting policies
In the application of the group’s accounting policies the directors are required to make judgements,
estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of
contingent assets and liabilities. The estimates and associated assumptions are based on historical
experience, expectations of future events and other factors that are believed to be reasonable under the
circumstances. Actual results in the future could differ from such estimates. The estimates and underlying
assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the
period.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next year are:
3.1. Work in progress measurement on construction contracts
The group undertakes construction contracts which takes place over a period of time and revenues and
profits are recognised as the group performs under these contracts. The total work in progress value of
£81,799,683 (2016 - £73,836,693) is impacted by the estimates involved in the construction contracts in
relation to costs to complete and therefore expected profit margin.
3.2. Work in progress measurement on private house sales
The recognition of costs expensed against properties sold at sites remaining under construction requires
estimation of costs to complete at these sites. These estimates impact the total work in progress value
recognised of £81,799,683 (2016 - £73,836,693). The group regularly reviews these estimates to ensure
they reflect the latest known position.
4. Revenue
Revenue analysed by class of business
Private residential properties
Affordable housing
Other
Total
2017
£000
86,367
23,250
972
110,589
2016
£000
78,079
12,053
647
90,779
27
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
5. Operating profit
Operating profit is stated after charging / (crediting):
Depreciation of owned tangible fixed assets
Depreciation of tangible fixed assets held under finance leases
Gain on disposal of tangible fixed assets
Cost of inventories recognised as an expense
Operating lease charges
6. Auditor’s remuneration
2017
£000
300
472
(146)
93,905
274
2016
£000
429
245
(10)
76,989
270
2017
£000
2016
£000
Fees payable to the group’s auditor for the audit of the group and
company annual accounts
36
Fees payable to the group’s auditor for the audit of the company’s
subsidiaries
6
Fees payable to the group auditor and their associates for other
services to the group and company:
- Other non-audit services
4
46
28
-
1
29
7. Staff costs
The average monthly number of employees (including executive directors) for the continuing operations
was:
Building staff
Administrative staff
Wages and salaries
Social security costs
Pension costs
2017
2016
336
327
143
479
2017
£000
15,887
1,496
417
17,800
122
449
2016
£000
13,980
1,355
323
15,658
28
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
7. Staff cost (continued)
Directors’ emoluments were as follows:
Remuneration for qualifying services
Company pension contributions to defined contribution schemes
2017
£000
633
33
666
2016
£000
579
22
601
The number of directors for whom retirement benefits are accruing under defined contribution schemes
amounted to 7 (2016 - 6).
Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
Company pension contributions to defined contribution schemes
2017
£000
137
9
146
2016
£000
127
6
133
The group operates a defined contribution pension scheme for all qualifying employees. The assets of the
scheme are held separately from those of the group in an independently administered fund.
The charge to the income statement in respect of defined contribution schemes was £417k (2016 - £323k).
Contributions totalling £74k (2016 - £58k) were payable to the fund at the year-end and are included in
creditors.
8. Finance costs
Interest on bank overdrafts and loans
Interest on hire purchase contracts
Other interest
9. Taxation
Current tax
UK corporation tax on profits for the current period
Adjustments in respect of prior periods
Deferred tax
Origination and reversal of timing differences
Adjustments in respect of prior periods
Effect of changes in tax rates
2017
£000
915
53
177
1,145
2017
£000
1,337
(46)
2016
£000
799
39
171
1,009
2016
£000
1,039
(4)
1,291
1,035
(4)
-
(9)
(13)
1,278
2
(1)
-
1
1,036
29
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
9. Taxation (continued)
The charge for the year can be reconciled to the profit per the income statement as follows:
Profit before tax
Tax at the UK corporation tax rate of 19,83% (2016: 20%)
Effects of:
Tax effect of expenses that are not deductible in determining
taxable profit
Adjustments in respect of prior years
Depreciation on assets not qualifying for tax allowances
Deferred tax adjustments in respect of prior years
Land remediation relief
Adjust deferred tax to closing average rate
Tax charge for period
2017
£000
6,691
1,327
19
(46)
(2)
(12)
(8)
1,278
2016
£000
5,101
1,020
18
(4)
3
(1)
-
-
1,036
10. Earnings per share
The basic earnings per share is based on the profit for the year divided by the weighted average number
of shares in issue during the year. The weighted average number of ordinary shares for the year ended 31
May 2017 assumes that all shares have been included in the computation based on the weighted average
number of days since issue.
As there are no dilutive instruments outstanding, basic and diluted earnings per share are identical.
Profit for the year attributable to owners of the group
5,359
2017
£000
2016
£000
4,065
Weighted average number of ordinary shares in issue for basic
earnings
Basic earnings per share (pence per share)
7,298,908
7,121,808
73.42p
57.08p
11. Dividends
Total dividend payment
2017
£000
2,337
2016
£000
2,133
Weighted average number of ordinary shares in issue
7,298,908
7,121,808
Dividend per share (pence per share)
32.02
29.95
30
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
12. Property, plant and equipment
Group
Cost
At 1 June 2015
Additions
Disposals
At 31 May 2016
Additions
Disposals
Land and
buildings
£000
Plant and
machinery
£000
Fixtures,
fittings &
equipment
£000
Motor
vehicle
£000
658
-
-
658
342
(325)
2,818
675
(250)
3,243
1,350
(340)
600
2
-
602
10
(19)
804
91
(103)
792
39
(81)
Total
£000
4,880
768
(353)
5,295
1,741
(765)
At 31 May 2017
675
4,253
593
750
6,271
Accumulated depreciation
At 1 June 2015
Depreciation charge
Disposals
At 31 May 2016
Depreciation charge
Disposals
At 31 May 2017
Net book value
At 31 May 2017
At 31 May 2016
At 1 June 2015
34
13
-
47
12
(26)
33
1,759
507
(250)
2,016
601
(290)
2,327
583
7
-
590
6
(19)
577
642
1,926
16
611
624
1,227
1,059
12
17
384
2,760
147
(103)
428
674
(353)
3,081
153
772
(50)
531
219
364
(385)
3,468
2,803
2,214
420
2,120
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance
leases or hire purchase contracts:
Net book value:
Plant and machinery
Motor vehicles
2017
£000
1,133
104
2016
£000
503
333
2015
£000
462
416
1,237
836
878
Total depreciation charge
472
245
297
Fixed assets with the carrying value of £1,237k (2016 - £836k; 2015 - £878k) are pledged as security.
31
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
12. Property, plant and equipment (continued)
Company
Land and
buildings
£000
Plant and
machinery
£000
Fixtures,
fittings &
equipment
£000
Motor
vehicles
£000
658
-
-
658
342
(325)
675
34
13
-
47
12
(26)
33
642
611
624
2,818
675
(250)
3,243
739
(2,030)
1,952
1,759
507
(250)
2,016
277
(1,400)
893
1,059
1,227
1,059
600
2
-
602
10
(19)
593
583
7
-
590
6
(19)
577
16
12
17
804
91
(103)
792
-
(792)
-
384
147
(103)
428
-
(428)
-
-
364
420
Total
£000
4,880
768
(353)
5,295
1,091
(3,166)
3,220
2,760
674
(353)
3,081
295
(1,873)
1,503
1,717
2,214
2,120
Cost
At 1 June 2015
Additions
Disposals
At 31 May 2016
Additions
Disposals
At 31 May 2017
Accumulated depreciation
At 1 June 2015
Depreciation charge
Disposals
At 31 May 2016
Depreciation charge
Disposals
At 31 May 2017
Net book value
At 31 May 2017
At 31 May 2016
At 1 June 2015
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance
leases or hire purchase contracts:
Net book value:
Plant and machinery
Motor vehicles
Total depreciation charge
2017
£000
639
-
639
85
2016
£000
503
333
836
245
2015
£000
462
416
878
297
32
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
13. Subsidiaries
Details of the company’s subsidiaries at 31 May 2017 are as follows:
Name of Undertaking
Nature of Business
Class of Shares Held
% Held
Glassgreen Hire Limited
Hire of plant and
machinery
Ordinary
96%
During the prior year, the company acquired 80% of the share capital for Glassgreen Hire Limited at
nominal value of £80. Glassgreen Hire Limited was incorporated on 21 January 2016 and commenced
trading on 1 June 2016. On these grounds and under section 402 of the Companies Act 2006, the company
did not prepare group accounts for the year to 31 May 2016 as the subsidiary was dormant and thus
immaterial for the purpose of giving a true and fair view.
During the year, the company acquired a further 16% of the share capital of Glassgreen Hire Limited for
consideration of £42,141.
14. Investments
Cost
At 1 June 2015
Additions
At 1 June 2016
Additions
At 31 May 2017
Company
Shares in group
undertakings
£000
-
-
-
42
42
Total
£000
-
-
-
42
42
15. Inventories and work in progress
Group
Work in progress
Land under development is included in work in progress.
2017
£000
81,800
81,800
2016
£000
73,837
73,837
2015
£000
60,611
60,611
33
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
15. Inventories and work in progress (continued)
Accounts receivable in relation to construction
contracts
Accounts payable in relation to construction
contracts
Retentions held by customers for contract work
Advances received from customers for contract
work
Included within inventories is £23,950k pledged as security.
Company
2017
£000
4,665
4,665
2017
£000
352
352
2017
£000
790
(352)
438
Work in progress
Land under development is included in work in progress.
Accounts receivable in relation to construction
contracts
2017
£000
81,800
81,800
2017
£000
4,665
4,665
2016
£000
1,855
1,855
2016
£000
401
401
2016
£000
667
(401)
266
2016
£000
73,837
73,837
2016
£000
1,855
1,855
2015
£000
2,692
2,692
2015
£000
387
387
2015
£000
720
(387)
333
2015
£000
60,611
60,611
2015
£000
2,692
2,692
34
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
15. Inventories and work in progress (continued)
Accounts payable in relation to construction
contracts
Retentions held by customers for contract work
Advances received from customers for contract
work
Included within inventories is £23,950k pledged as security.
16. Accounts receivable
Amounts falling due within one year
Group
Trade receivables
Other receivables
Prepayments and accrued income
Company
Trade receivables
Other receivables
Amounts due from group undertakings
Prepayments and accrued income
2017
£000
2016
£000
352
401
352
401
2017
£000
790
(352)
438
2017
£000
4,104
2,108
235
2016
£000
667
(401)
266
2016
£000
1,687
2,413
5
2015
£000
387
387
2015
£000
720
(387)
333
2015
£000
2,935
2,194
5
6,447
4,105
5,134
2017
£000
4,103
2,108
144
230
2016
£000
1,687
2,413
-
5
2015
£000
2,935
2,194
-
5
6,585
4,105
5,134
The directors consider the carrying amount of the receivables approximates to their fair value.
The group’s exposure to credit risk is limited by the fact that the group generally receives cash at the point
of legal completion of its sales. There are certain categories of revenue where this is not the case; for
instance housing association revenues or land sales where management considers that the ratings of these
various debtors are good and therefore credit risk is low. Any assets which expose the group to credit risk
can be spread over a considerable number of properties. As such, the group has no significant
concentration of credit risk, with exposure spread over a large number of customers. The maximum
exposure to credit risk at 31 May 2017 is represented by the carrying amount of each financial asset.
35
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
17. Accounts receivable
Amounts falling due after one year
Group
Other receivables
Company
Other receivables
18. Accounts payable
Group
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Company
Trade creditors
Other taxation and social security
Other creditors
Amounts due to group undertakings
Accruals and deferred income
2017
£000
488
2017
£000
488
2017
£000
12,879
446
111
11,614
2016
£000
485
2016
£000
485
2016
£000
10,814
548
99
8,588
25,050
20,049
2017
£000
12,276
443
110
651
11,560
2016
£000
10,814
548
99
-
8,588
25,040
20,049
2015
£000
467
2015
£000
467
2015
£000
12,083
416
185
7,814
20,498
2015
£000
12,083
416
185
-
7,814
20,498
The directors consider the carrying amount of the accounts payable approximates to their fair value.
36
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
19. Financial assets and liabilities
Group
Assets
Loans and receivables
Total
Liabilities
Measured at amortised cost
Total
Company
Assets
Loans and receivables
Total
Liabilities
Measured at amortised cost
Total
2017
£000
15,035
2016
£000
4,588
15,035
4,588
2017
£000
66,121
2016
£000
50,083
66,121
50,083
2017
£000
15,167
2016
£000
4,588
15,167
4,588
2017
£000
65,583
2016
£000
50,083
65,583
50,083
2015
£000
5,608
5,608
2015
£000
41,480
41,480
2015
£000
5,608
5,608
2015
£000
41,480
41,480
37
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
20. Borrowings
Group
Secured borrowings:
Bank loans
Bank overdrafts
Unsecured borrowings:
Directors' loans
Less: payable within one year
Payable after one year
Company
Secured borrowings:
Bank loans
Bank overdrafts
Unsecured borrowings:
Directors' loans
Less: payable within one year
Payable after one year
2017
£000
37,500
-
37,500
2,929
40,429
-
40,429
2017
£000
37,500
-
37,500
2,929
40,429
-
40,429
2016
£000
27,500
425
27,925
2,007
29,932
(1,750)
28,182
2016
£000
27,500
425
27,925
2,007
29,932
(1,750)
28,182
2015
£000
17,500
1,330
18,830
1,972
20,802
(1,475)
19,327
2015
£000
17,500
1,330
18,830
1,972
20,802
(1,475)
19,327
The bank overdraft is secured by fixed securities over certain of the group's properties, and is repayable
on demand.
The bank loan comprises of a revolving credit facility which is repayable by August 2018 and is secured
over certain of the group's properties. The facility attracts an interest rate of 2.5% per annum above the
Bank of England Base Rate.
The directors' loans are unsecured and are repayable by 2022 or any earlier period agreed and attract
interest at either 4.5% above the Bank of England base rate or a 6% fixed rate.
The Directors consider the carrying amount of short term borrowings approximates to their fair value.
38
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
21. Obligations under hire purchase contracts
Finance lease and hire purchase payments represent rentals payable by the group for certain items of
plant and machinery and are secured by the assets under lease in question.
Leases include purchase options at the end of the lease period, and no restrictions are placed on the use
of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for
contingent rental payments.
Group
Minimum lease payments
2017
£000
2016
£000
Within 1 year
Two to five years
557
606
370
335
2015
£000
375
270
Present value of minimum lease
payments
2016
£000
2017
£000
2015
£000
500
588
341
309
650
349
247
596
1,163
705
645
1,088
(75)
1,088
(55)
650
(49)
596
Less: unearned
finance income
Company
Minimum lease payments
2017
£000
2016
£000
Within 1 year
Two to five years
242
367
370
335
2015
£000
375
270
Present value of minimum lease
payments
2016
£000
2017
£000
2015
£000
222
336
341
309
650
349
247
596
609
705
645
558
(51)
558
(55)
650
(49)
596
Less: unearned
finance income
22. Deferred tax
Group
Fixed assets –
temporary differences
Company
Fixed assets –
temporary differences
2015
£000
58
58
2015
£000
58
58
Income
Statement
£000
-
-
Income
Statement
£000
-
-
2016
£000
58
58
2016
£000
58
58
Income
Statement
£000
(13)
(13)
Income
Statement
£000
(20)
(20)
2017
£000
45
45
2017
£000
38
38
39
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
23. Share capital
Group
Ordinary shares of £1 - allotted, called up and
fully paid
Number of
shares
Share capital
£000
At 1 June 2015
Issued in the year
At 31 May 2016
Share split in the year
Issued in the year
At 31 May 2017
Company
71,009
1,960
72,969
7,223,939
6,000
7,302,908
71
2
73
-
-
73
Ordinary shares of £1 - allotted, called up and
fully paid
Number of
shares
Share capital
£000
At 1 June 2015
Issued in the year
At 31 May 2016
Share split in the year
Issued in the year
At 31 May 2017
71,009
1,960
72,969
7,223,939
6,000
7,302,908
71
2
73
-
-
73
Share premium
£000
9,080
1,097
10,177
-
108
10,285
Share premium
£000
9,080
1,097
10,177
-
108
10,285
The parent company has one class of ordinary share which carry full voting rights but no right to fixed
income or repayment of capital. Distributions are at the discretion of the company.
The share capital account records the nominal value of shares issued.
The share premium account records the amount above the nominal value received for shares sold, less
transaction costs.
During the year, the nominal value of shares was split from £1 to £0.01.
Subsequently, 6,000 £0.01 ordinary shares were allotted and fully paid up for consideration of £107,756.
24. Cash and cash equivalents
For the purpose of the statement of cash flows, cash and cash equivalents comprise the following as
at 31 May:
Cash at bank and in hand
2017
£000
8,335
Bank overdrafts included in current liabilities
-
8,335
2016
£000
3
(425)
(422)
At 1 June
2015
£000
12
(1,330)
(1,318)
At 31 May 2017, the group had available £2,500k (2016: £2,075k, 1 June 2015: £1,170k) of undrawn
committed borrowing facilities.
40
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
25. Capital risk management
The group manages its capital to ensure that the group will be able to continue as a going concern while
maximising the return to stakeholders through the optimisation of the debt and equity balance.
The capital structure of the group consists of equity attributable to equity holders of the parent company
and its subsidiary, comprising issued capital, reserves and retained earnings, all as disclosed in the balance
sheet. The group is not subject to externally imposed capital requirements other than those included, from
time to time, in the financial covenants associated with bank borrowing
26. Financial risk management
The group is exposed to a variety of financial risks which result from both its operating and investing
activities. The group’s risk management is coordinated by the board of directors, and focuses on actively
securing the group’s short to medium term cash flows by minimising the exposure to financial markets.
26.1. Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will
affect the group’s income or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while
optimising the return on risk.
Interest rate risk
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The group’s exposure to the interest rate risk relates primarily to its
floating rate borrowings.
Financial liabilities at fixed rate
Financial liabilities at floating rate
Non-interest bearing financial liabilities
Interest rate sensitivity analysis
2017
£000
2,157
39,360
24,604
66,121
2016
£000
1,150
29,432
19,501
50,083
The table below details the group’s sensitivity to increase or decrease of floating interest rates by 0.5%,
which the directors consider to be a reasonable possible change. The analysis was applied to loans and
borrowings (financial liabilities) based on the assumption that the amount of liability outstanding as at the
balance sheet date was outstanding for the whole year.
Bank of England base rate
31 May 2017
Interest rate
–0.5%
£000
Interest rate
+0.5%
£000
Bank of England base rate
31 May 2016
Interest rate
–0.5%
£000
Interest rate
+0.5%
£000
(Loss) / profit
(202)
202
(150)
150
41
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
26.1 Market risk (continued)
Limitations of sensitivity analysis
The above tables demonstrate the effect of a change in a key assumption while other assumptions remain
unchanged. In reality, there is a correlation between the assumptions and other factors. It should also be
noted that these sensitivities are non-linear and larger or smaller impacts should not be interpolated or
extrapolated from these results. The sensitivity analysis does not take into consideration that the group’s
assets and liabilities are actively managed. Additionally, the financial position of the group may vary at the
time that any actual market movement occurs.
Other limitations in the above sensitivity analysis include the use of hypothetical market movements to
demonstrate potential risk that only represent the group’s view of possible near-term market changes that
cannot be predicted and the assumption that all interest rates move in an identical fashion.
This analysis is for illustrative purposes only, as in practice market rates rarely change in isolation of other
factors that also affect group’s financial position and results.
Management believe that fair value of the loans, borrowings and finance lease obligations approximates
their carrying amounts as the majority of obligations bear interest rates approximating market rates at 31
May 2017.
26.2. Liquidity risk
Liquidity risk is the risk that the group will be unable to meet its liabilities as they fall due. The group’s
objective is to maintain a balance between continuity of funding and flexibility through the use of bank
overdrafts, medium to long term borrowings and hire purchase contracts.
The maturity profile of the group and parent company’s financial liabilities based on contractual
undiscounted payments (including interest payments) is as follows:
Group
31 May 2017
Accounts
payable
Borrowings
Hire purchase
31 May 2016
Accounts
payable
Borrowings
Hire purchase
Carrying
amount
£000
24,604
40,429
1,088
66,121
Carrying
amount
£000
19,501
29,932
650
50,083
Total
minimum
future
payment Within 1 year
£000
£000
Within 1-2
years
£000
Within 2-5
years
£000
24,604
-
500
-
37,500
-
2,929
406
182
25,104
37,906
3,111
24,604
40,429
1,088
66,121
Total
minimum
future
payment Within 1 year
£000
£000
Within 1-2
years
£000
Within 2-5
years
£000
19,501
29,932
650
50,083
19,501
1,750
341
21,592
-
28,182
222
28,404
-
-
87
87
42
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
26.2 Liquidity risk (continued)
01 June 2015
Carrying
amount
£000
Total
minimum
future
payment Within 1 year
£000
£000
Within 1-2
years
£000
Within 2-5
years
£000
Accounts
payable
20,082
20,082
Borrowings
20,802
20,802
Hire purchase
596
41,480
596
41,480
20,082
1,475
349
21,906
-
19,327
182
19,509
-
-
65
65
Company
31 May 2017
Accounts
payable
Borrowings
Hire purchase
31 May 2016
Accounts
payable
Borrowings
Hire purchase
01 June 2015
Carrying
amount
£000
24,596
40,429
558
65,583
Carrying
amount
£000
19,501
29,932
650
50,083
Carrying
amount
£000
Total
minimum
future
payment Within 1 year
£000
£000
Within 1-2
years
£000
Within 2-5
years
£000
24,596
-
222
24,818
-
37,500
211
37,711
-
2,929
125
3,054
24,596
40,429
558
65,583
Total
minimum
future
payment Within 1 year
£000
£000
Within 1-2
years
£000
Within 2-5
years
£000
19,501
29,932
650
50,083
19,501
1,750
341
21,592
-
28,182
222
28,404
-
-
87
87
Total
minimum
future
payment Within 1 year
£000
£000
Within 1-2
years
£000
Within 2-5
years
£000
Accounts
payable
20,082
20,082
Borrowings
20,802
20,802
Hire purchase
596
41,480
596
41,480
20.082
1,475
349
21,906
-
19,327
182
19,509
-
-
65
65
43
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
26.3. Credit risk
Credit risk is the risk that a customer may default or not meet its obligations to the group on a timely basis,
leading to financial losses to the group.
The group’s maximum exposure to credit risk in relation to each class of recognised financial asset is the
carrying amount of those assets as indicated in the balance sheet. At the balance sheet date, there was
no significant concentration of credit risk to the group.
The group manages credit risk actively monitoring their level of trade receivables and following up when
they are overdue more than 3 months:
The ageing profile of trade receivables was:
Current
Overdue 90 days
Total book
value
£000
31 May 2017
Allowance for
impairment
£000
Total book
value
£000
31 May 2016
Allowance for
impairment
£000
3,908
196
4,104
-
-
-
1,663
24
1,687
-
-
-
During the year, the group had no allowance for impairment for trade receivables.
The ageing profile of other receivables was:
Current
Overdue 90 days
Total book
value
£000
31 May 2017
Allowance for
impairment
£000
Total book
value
£000
31 May 2016
Allowance for
impairment
£000
2,108
-
2,108
-
-
-
2,413
-
2,413
-
-
-
During the year, the group had no allowance for impairment for other receivables.
44
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
27. Transactions with related parties
Other related parties include transactions with retirement scheme in which the directors are beneficiaries,
and close family members of key management personnel.
During the year dividends totalling £2,222k (2016 - £1,964k) were paid to key management personnel.
The remuneration of Key Management Personnel was £744k (2016 - £671k).
During the year the group entered into the following transactions with related parties:
Entities which key management
personnel have control, significant
influence or hold a material interest in
Key management personnel
Other related parties
Sale of goods
2017
£000
2016
£000
Purchase of goods
2017
£000
2016
£000
6,148
352
37
6,537
2,812
420
448
3,680
312
447
-
759
317
268
100
685
Sales to related parties represent those undertaken in the ordinary course of business.
Entities which key management
personnel have control, significant
influence or hold a material interest in
Key management personnel
Other related parties
Interest Paid to
2017
£000
-
163
-
2016
£000
-
91
7
Rent paid to
2017
£000
2016
£000
162
-
161
148
-
50
163
98
323
198
The following amounts were outstanding at the reporting end date:
Amounts receivable:
Entities which key management personnel have control,
significant influence or hold a material interest in (short-term)
Key management personnel
Other related parties
Amounts payable
2017
£000
2016
£000
2,413
1,101
-
-
-
1
2,413
1,102
Entities which key management personnel have control,
significant influence or hold a material interest in (short-term)
Key management personnel
Other related parties
115
2,949
40
3,104
64
2,029
360
2,453
45
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
27. Transactions with related parties (continued)
Amounts owed to/from related parties are included within creditors and debtors respectively at the year-
end. No security has been provided on any balances.
Transactions between the company and its subsidiary, which is a related party, have been eliminated on
consolidation and are not disclosed in this note.
28. Contingencies, commitments and guarantees
In the ordinary course of the group's business the group is required to enter into performance bond
arrangements. The group's bankers have provided such guarantees in the ordinary course of business
totalling £206k (2016 - £257k).
28.1. Capital commitments
Acquisition of property, plant and equipment
Call and put options for the purchase of plots for development
28.2. Operating lease commitments
2017
£000
462
9,736
2016
£000
103
14,380
Operating lease payments represent rentals payable by the group for certain of its assets. Leases are with
an option to extend on completion. At 31 May the group had outstanding commitments for future minimum
lease payments under non-cancellable operating leases, which fall due as follows:
Within one year
Two to five years
Over five years
29. Controlling party
2017
£000
278
1,023
1,159
2,460
2016
£000
271
1,047
1,499
2,817
The company is controlled by Mr A W Adam and Mrs A F Adam, who have a beneficial interest in 75.4%
of the company's issued share capital.
46
SPRINGFIELD PROPERTIES PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
30. First-time adoption of IFRS
These financial statements are the first the parent company and group have prepared in accordance with
IFRS. These financial statements comply with IFRS applicable as at 31 May 2017, together with the
comparative period data for the year ended 31 May 2016. In preparing the financial statements, the
consolidated and company’s opening statement of financial position was prepared as at 1 June 2015, the
group and parent company’s date of transition to IFRS.
The reported financial position and the financial performance for the previous period were not affected by
the transition to IFRS.
31. Subsequent Events
Included in note 20 are directors’ loans of £2,929,265 which, as at 31 May 2017 were repayable by 2022
or any earlier period agreed. Subsequent to the year-end by agreement the loans will now all be repaid by
the end of August 2017.
47