Included in Directors’ loans is the sum of £ 150,000 (2020: £300,000) advanced by the DFM Pension Scheme of which Mr J Dubois is the principal beneficiary. This loan bears interest at 12% per annum (2020: 12% per annum).

Within Directors’ loans is the sum of £ 240,000 (2020: £ 240,000) provided by Mr C C Johnson for a deposit on an option which was not taken up, together with the sum of £ 528,925 in relation to convertible loan notes issued to Mr C C Johnson on 14 July 2020. These have a nominal value of £ 600,000 and are repayable on 31 July 2022. As a financial instrument with both debt and equity components, an amount was recognised directly into a Loan Note Equity Reserve on issue, as explained further in Note 15, with the debt element being unwound at an implied interest rate of 10% and the interest recognized through profit and loss.

The remaining balance is disclosed in note 16.

Included in other loans is £ 600,000 (2020: £ 650,000) advanced by Mr G Howard (son-in-law to Mr C C Johnson to the company at rates of 10% & 5% per annum (2020: 10% pa). £ 90,000 (2020: £530,000) has been advanced by C Rowe, a former employee of the Group, at a rate of 10% per annum.

During the year the loan with Lloyds Bank who held a legal charge over land at Wellesley Road, Sheerness, Kent, was cleared following the successful sale of all units.

Mrs S Johnson, wife of Mr C C Johnson has a legal charge on flats 3 & 5 Burnside Court Sandhurst Road, Tunbridge Wells Kent of £ 380,000 (2020: £380,000) in connection with her loan to Selmat.

Selmat has also granted to Paragon Mortgages, legal charges over the freehold property at Hildenborough and leasehold properties of one of the three flats at Burnside. These mortgages are interest only, for a term of 7 years with a fixed interest rate for the first 5 years. These properties are rented out.

The bank borrowings are repayable as follows:

The weighted average interest rates paid on the bank loans were as follows: Bank loans: 3.4 % (2020: 2.03%)

All of the Directors’ loans are repayable after more than 1 year. All loans are interest bearing and charged accordingly. However Mr C C Johnson has waived his right to interest in the year with the exception of the first £ 500,000. Interest of £ 25,000 (2020: nil) was paid to him during the year. Interest of £32,761 (2020: £36,000) was paid to Mr J Dubois at the rate of 12% pa (2020: 12% pa).

7. (LOSS) PER ORDINARY SHARE

The calculation of (loss)/profit per ordinary share is based on the following profits/(losses) and number of shares used should be that retrospectively adjusted for the effect of consolidation:

8. PROPERTY PLANT AND EQUIPMENT

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9. INVESTMENT PROPERTY

10. TRADE AND OTHER RECEIVABLES

The Directors consider there has been no change in the valuation since purchase of the properties in August 2019 and therefore the property remains in the accounts as at 31 March 2021 at £1,975,000.00

There are no receivables that are past due but not impaired at the year-end. There are no provisions for irrecoverable debt included in the balances above.

11. CASH AND CASH EQUIVALENTS

All of the group’s cash and cash equivalents at 31 March 2021 are in sterling and held at floating interest rates.

The Directors consider that the carrying amount of cash and cash equivalents approximates to their fair value.

12. INVENTORY

See note 5 for details of interest capitalised as part of the value of inventory.

13. TRADE AND OTHER PAYABLES

14. BORROWINGS