Half-year Report

29 September 2023

St Mark Homes Plc

(''SMH'' or “the Company'')

Unaudited Interim Report for the six-month period ended 30 June 2023

Review of operations for the six month period ended 30 June 2023

The Directors announce the interim results for six months ended 30 June 2023. The company continues to trade as a residential and mixed-use property developer. The trading environment remains difficult and the Directors report a pre-tax loss of £1,210,965 (2022 loss - £146,510) for the period.

 

The construction industry is experiencing continuing supply chain delays and cost increases over recent times. Our projects have also been delayed as a consequence of subcontractor insolvency. This had a significant impact on progress on our Uxbridge Road and High Road Finchley projects.

 

The net assets per share currently stand at 57p (June 2022: 116p) at the end of this interim reporting period. No dividend was paid during the period.

 

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

 

Sutton High Street, Sutton

The Group retains a 40% interest in a development site at Sutton High Street.  In November 2020 the Group, in association with its joint venture partner, successfully secured planning consent from the London Borough of Sutton for the extension of the  ground  floor  retail  space  at  its  previously developed scheme at 324 – 340 High Street, Sutton, together with approval for a new six-storey building comprising 30 residential apartments over ground floor retail space with basement car park on the adjacent land at 342 – 346 High Street, Sutton.  The residential construction works are continuing subject to ongoing delays and are now scheduled to complete in the first quarter of 2024.

The developer has completed the construction and letting of the ground floor retail space with Kingfisher PLC and is currently marketing the long lease for this element of the scheme for sale. Commercial yields have moved substantially during the course of this project and the net proceeds from this sale are now projected to be circa 70% of the initial valuations. The adverse impacts of the commercial valuation fall, increased construction costs and increased finance charges have continued during the period and we have accordingly increased our provision on this project by £718,533 during the period.

The developer plans to commence marketing of the residential element of this scheme later this year.

Gwynne Road, London, SW11

The Group has a 40% interest in the redevelopment of this site with its joint venture partner. The initial phase of the project was completed in 2020 providing a mixed-use development of commercial/retail at ground and mezzanine levels and 33 residential flats above. The apartments have all been sold while the commercial sector of the scheme continues to be marketed by our appointed agents.  We are currently exploring additional / further planning options at the development.

Uxbridge Road, Hanwell, W5

The Group has a 50% interest in the redevelopment of this site with full planning permission in place to provide 43 residential units (7 houses and 36 apartments) and ground floor retail fronting Uxbridge Road, Hanwell, West London. The development is located just 200m from the new Elizabeth line station at Hanwell.

During the period we have increased our provision on this project by £351,816. This has arisen as a result of a weak sales market and increased interest cost.

Twyford Avenue, Muswell Hill, N2

The Group had taken a 50% joint venture stake in a new build housing scheme in Muswell Hill, North London. The final unit on this project was sold during the period. We recognized a profit of £67,326 on this disposal.

High Road, Finchley,N12

The Group has taken a 50% joint venture stake in a new build housing scheme in Finchley, North London. This development will see the construction of 5 houses. Construction works have been subject to ongoing delays and are now expected to be complete prior to the end of the year. A show unit will be available in October 2023. We have increased our provision for loss on this project by £6,563 during the period.

The board are focused on recovery of amounts invested into joint venture entities. In addition we will conduct a review of operations with the intention of bringing forward some shareholder exit mechanism at the 2024 AGM prior to committing funds to any new joint ventures.

Signed on behalf of the board on 28 September 2023.

S Ryan

Director

Unaudited Consolidated Profit and loss account and statement of comprehensive income for the six months ended 30 June 2023

		2023	2022
Group turnover		-	21,600
Cost of sales		(14,400)	(14,797)
Gross Profit		(14,400)	6,803
Administrative expenses		(186,893)	(188,804)
Operating (Loss)		(201,293)	(182,001)
Share of operating profit in joint venture		(1,009,586)	11,498
( Loss) before interest and taxation		(1,210,879)	(170,503)
Interest receivable and similar income		168	25,729
Interest payable and similar charges		(254)	(1,736)
(Loss) on ordinary activities before taxation		(1,210,965)	(146,510)
Taxation on ordinary activities		-	27,832
		________	________
(Loss) on ordinary activities after taxation		(1,210,965)	(118,678)
		________	________
Profit/ (Loss) per share – basic and diluted
Ordinary shares		(27.4p)	(2.7p)

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 2023

	Jun-23	Jun-23	Jun-22	Jun-22
Non Current assets
Tangible assets		572		761
Current assets
Debtors	2,587,912		5,211,802
Cash at bank and in hand	11,424		45,944
	________		________
	2,599,336		5,257,746
Creditors: amounts falling
due within one year	(52,493)		(119,079)
	________		________
Net current assets		2,547,843		5,138,667
Creditors: amounts falling
due in more than one year		(17,168)		(27,815)
		________		________
Net Assets		2,530,247		5,111,613
		________		________
Capital and reserves
Called up share capital		2,206,501		2,206,501
Capital redemption reserve		1,009,560		1,009,560
Other reserve		211,822		211,822
Share Premium		375,246		375,246
Merger Reserve		327,060		327,060
Profit and loss account		(1,599,942)		981,424
		________		________
Shareholders’ funds		2,530,247		5,111,613
		________		________

Notes forming part of the unaudited interim report

for the six months ended 30 June 2023

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 2022, which have been applied consistently. The financial statements for the year ended 31 December 2022 have been filed at Companies House. The company’s auditors Moore Kingston Smith LLP have not reviewed these interim accounts.

2. Taxation on Profit on ordinary activities

 
For the purpose of this unaudited interim report and applying a consistent policy with the 2022 audited accounts the company has not taken a tax credit on losses incurred.

3. Earnings per share

Earnings per share has been calculated by dividing the (loss) after tax for the period of (£1,210,965) (2022 – (£118,678)) by the weighted average number of ordinary shares in issue of 4,413,003 (2022 - 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.

The Directors of St Mark Homes PLC accept responsibility for this announcement.

- Ends –

 For further information, please contact:

St Mark Homes Plc
Sean Ryan, Finance Director	Tel: [phone]
	[e-mail]
Alfred Henry Corporate Finance Ltd, AQSE Growth Market Corporate Adviser
Nick Michaels/Maya Klein Wassink	Tel: [phone]
	www.alfredhenry.com

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