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REGISTERED NUMBER: 03534324 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2023

for

D J Swallow Construction Limited

D J Swallow Construction Limited (Registered number: 03534324)






Contents of the Financial Statements
for the Year Ended 31 March 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


D J Swallow Construction Limited

Company Information
for the Year Ended 31 March 2023







DIRECTORS: Mr N G Hewerdine
Mrs S A Swallow
Mr D J Swallow





SECRETARY: Mrs D A Swallow





REGISTERED OFFICE: Unit 1, Halifax Court Fernwood Business
Cross Lane, Fernwood
Newark
Nottinghamshire
NG24 3JP





REGISTERED NUMBER: 03534324 (England and Wales)





AUDITORS: Franklins Accountancy Audit & Tax Limited
1 Pinnacle Way
Pride Park
Derby
Derbyshire
DE24 8ZS

D J Swallow Construction Limited (Registered number: 03534324)

Strategic Report
for the Year Ended 31 March 2023

The directors present their strategic report for the year ended 31 March 2023.

The company's directors are pleased with the financial results for the year especially given the current uncertainty in the economic landscape due to the ongoing Covid-19 pandemic, war in Ukraine and the general energy and cost of living crisis.

REVIEW OF BUSINESS
Turnover has increased by 19.95% to £23.383m, with the gross profit margin increasing by 49.27% to 16.81%.

Administration expenses have increased by £99.8k between 2022 and 2023.

Overall, the company profit before tax has increased from £1.299m in 2022 to £2.537m in 2023.

At the end of the year the company had net assets of £2.188m (2022: £2.058m).

The company has considerable financial resources and contracts with a number of customers across different geographic areas. Accordingly, we believe that the company is well placed to manage its business risks successfully and look forward to continued growth in 2023 and beyond.

PRINCIPAL RISKS AND UNCERTAINTIES
The directors ability to identify and manage risk is an important element of our continued success. The directors have identified the following key business risks that could have a material impact on future performance of the company and the controls in place to manage this risk:

Market & Contract Risk

To remain competitive in the market we continually focus on completing our contractual obligations to quality, time and budget with the company being involved in large scale construction contracts. Poor communication or performance can lead to contract delays and cost overruns. We seek to minimise this risk by maintaining close dialogue with all parties and by regular review of all contracts in progress by our in house professional management team.

Credit Risk

Credit risk arises on both our trade debtors and creditors. The credit worthiness is regularly reviewed and actions taken to mitigate our financial exposure.

Health & Safety Risk

The directors fully recognise that a breach in Health & Safety compliance could pose a risk to the going concern of the company and that the company's activities are inherently complex and potentially hazardous. The result of a breach could result in injury to employees, subcontractors, or members of the public or damage to the environment. This in turn could expose the company to significant potential liability, reputational damage and loss of key accreditation. Detailed policies and procedures exist to minimise such risks and are subject to regular review by the company's directors and the company's HSE Officer.

ON BEHALF OF THE BOARD:





Mr D J Swallow - Director


21 November 2023

D J Swallow Construction Limited (Registered number: 03534324)

Report of the Directors
for the Year Ended 31 March 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of groundwork services.

DIVIDENDS
Interim dividends per share were paid during the year as follows:
Ordinary £1 - £18000
Non voting shares £1 - £11670

The total distribution of dividends for the year ended 31 March 2023 will be £ 1,916,700 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

Mr N G Hewerdine
Mrs S A Swallow
Mr D J Swallow

POLITICAL DONATIONS AND EXPENDITURE
During the year, the company made charitable donations totalling £8,560 (2022: £615).

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

D J Swallow Construction Limited (Registered number: 03534324)

Report of the Directors
for the Year Ended 31 March 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





Mr D J Swallow - Director


21 November 2023

Report of the Independent Auditors to the Members of
D J Swallow Construction Limited

Opinion
We have audited the financial statements of D J Swallow Construction Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
D J Swallow Construction Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the construction industry.
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Health and Safety Executive (HSE), the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting appropriate correspondence.

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

Where we identified legislation or regulation of particular relevance to the entity, in conjunction with other audit testing, we considered the sufficiency and appropriateness of audit evidence obtained regarding the compliance with that legislation, or regulation, and any consequential risk of material misstatements in the financial statements.

However it must be noted that it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
D J Swallow Construction Limited


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Collin Franklin (Senior Statutory Auditor)
for and on behalf of Franklins Accountancy Audit & Tax Limited
1 Pinnacle Way
Pride Park
Derby
Derbyshire
DE24 8ZS

21 November 2023

D J Swallow Construction Limited (Registered number: 03534324)

Statement of Comprehensive
Income
for the Year Ended 31 March 2023

2023 2022
Notes £    £   

TURNOVER 3 23,383,759 19,494,476

Cost of sales 19,452,830 16,861,120
GROSS PROFIT 3,930,929 2,633,356

Administrative expenses 1,456,868 1,352,599
2,474,061 1,280,757

Other operating income 61,630 18,825
OPERATING PROFIT 6 2,535,691 1,299,582

Interest receivable and similar income 1,671 1,006
2,537,362 1,300,588

Interest payable and similar expenses 7 - 863
PROFIT BEFORE TAXATION 2,537,362 1,299,725

Tax on profit 8 490,719 202,059
PROFIT FOR THE FINANCIAL YEAR 2,046,643 1,097,666

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,046,643

1,097,666

D J Swallow Construction Limited (Registered number: 03534324)

Balance Sheet
31 March 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 24,100 25,466

CURRENT ASSETS
Stocks 11 3,167,410 2,310,396
Debtors 12 1,282,384 3,518,942
Cash at bank 633,941 11,455
5,083,735 5,840,793
CREDITORS
Amounts falling due within one year 13 2,706,904 3,496,266
NET CURRENT ASSETS 2,376,831 2,344,527
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,400,931

2,369,993

CREDITORS
Amounts falling due after more than one
year

14

(208,333

)

(308,333

)

PROVISIONS FOR LIABILITIES 17 (4,418 ) (3,423 )
NET ASSETS 2,188,180 2,058,237

CAPITAL AND RESERVES
Called up share capital 18 110 110
Retained earnings 19 2,188,070 2,058,127
SHAREHOLDERS' FUNDS 2,188,180 2,058,237

The financial statements were approved by the Board of Directors and authorised for issue on 21 November 2023 and were signed on its behalf by:





Mr D J Swallow - Director


D J Swallow Construction Limited (Registered number: 03534324)

Statement of Changes in Equity
for the Year Ended 31 March 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 April 2021 110 1,195,961 1,196,071

Changes in equity
Dividends - (235,500 ) (235,500 )
Total comprehensive income - 1,097,666 1,097,666
Balance at 31 March 2022 110 2,058,127 2,058,237

Changes in equity
Dividends - (1,916,700 ) (1,916,700 )
Total comprehensive income - 2,046,643 2,046,643
Balance at 31 March 2023 110 2,188,070 2,188,180

D J Swallow Construction Limited (Registered number: 03534324)

Cash Flow Statement
for the Year Ended 31 March 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,898,329 78,653
Interest paid - (863 )
Tax paid (315,507 ) (124,787 )
Net cash from operating activities 2,582,822 (46,997 )

Cash flows from investing activities
Purchase of tangible fixed assets (6,561 ) (9,133 )
Sale of tangible fixed assets - 48,380
Interest received 1,671 1,006
Net cash from investing activities (4,890 ) 40,253

Cash flows from financing activities
Loan repayments in year (100,000 ) (91,667 )
Amount introduced by directors 19 -
Amount withdrawn by directors - (65 )
Government grants 61,235 18,825
Equity dividends paid (1,916,700 ) (235,500 )
Net cash from financing activities (1,955,446 ) (308,407 )

Increase/(decrease) in cash and cash equivalents 622,486 (315,151 )
Cash and cash equivalents at beginning of
year

2

11,455

326,606

Cash and cash equivalents at end of year 2 633,941 11,455

D J Swallow Construction Limited (Registered number: 03534324)

Notes to the Cash Flow Statement
for the Year Ended 31 March 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 2,537,362 1,299,725
Depreciation charges 7,927 8,408
Loss on disposal of fixed assets - 1,557
Government grants (61,235 ) (18,825 )
Finance costs - 863
Finance income (1,671 ) (1,006 )
2,482,383 1,290,722
Increase in stocks (857,014 ) (764,780 )
Decrease/(increase) in trade and other debtors 2,236,557 (2,375,018 )
(Decrease)/increase in trade and other creditors (963,597 ) 1,927,729
Cash generated from operations 2,898,329 78,653

2. CASH AND CASH EQUIVALENTS

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

Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 633,941 11,455
Year ended 31 March 2022
31.3.22 1.4.21
£    £   
Cash and cash equivalents 11,455 326,606


3. ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.4.22 Cash flow At 31.3.23
£    £    £   
Net cash
Cash at bank 11,455 622,486 633,941
11,455 622,486 633,941
Debt
Debts falling due within 1 year (100,000 ) - (100,000 )
Debts falling due after 1 year (308,333 ) 100,000 (208,333 )
(408,333 ) 100,000 (308,333 )
Total (396,878 ) 722,486 325,608

D J Swallow Construction Limited (Registered number: 03534324)

Notes to the Financial Statements
for the Year Ended 31 March 2023

1. STATUTORY INFORMATION

D J Swallow Construction Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. These financial statements have been prepared under the historical cost convention as modified by the use of fair values for certain financial instruments in accordance with the accounting policies set out below.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised when performance obligations are satisfied which occurs when the control of either goods or services are transferred to the customer.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Plant and machinery - 15% on reducing balance
Fixtures and fittings - 20% on reducing balance
Computer equipment - 33% on reducing balance

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised to the stage of completion 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 total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

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.


D J Swallow Construction Limited (Registered number: 03534324)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Going concern
As at 31st March 2023 the company had shareholders' funds of £2,188,180 (2022: £2,058,237). The company has made a profit for the year of £2,046,643 after tax (2022: £1,097,666). Post year end the company has continued to secure a number of further key contracts within the public and private sector.

The directors have therefore considered the appropriateness of preparing the accounts on a going concern basis and have monitored performance post year end, with the company continuing to trade at a comparable level and meet all liability payments as they have fallen due. The directors do not envisage any adverse issues in respect of the future performance of the entity and have therefore prepared the financial statements on a going concern basis.

D J Swallow Construction Limited (Registered number: 03534324)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, and loans from and to related parties.

Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors
Trade debtors are amounts due for goods sold or services rendered in the ordinary course of business.

Trade debtors are recognised at the transaction price. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtor.

Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Trade creditors are recognised at the transaction price.

Trade creditors are classified as current liabilities of the company. The company does not have an unconditional right, at the end of the reporting date, to defer settlement of the creditor for at least twelve months after the reporting date, they are presented as non-current liabilities.

Judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimations and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates are underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision a future periods where the revision affects both current and future periods.

Critical Judgements

The following judgements have had the most significant effect on amounts recognised in the financial statements:

Recognition of profit on long term contracts

Profit recognition is the area requiring the greatest use of judgement and is based on an assessment of the overall profitability forecast on individual contracts. Losses are recognised as soon as they are foreseen. Profits are recognised by the directors when the outcome of the contract can be assessed with reasonable certainty. The profit recognised reflects that part of the total profit currently estimated to arise over the duration of the contract that fairly represents the profit attributable to work performed at the accounting date. Contract reviews are undertaken on a monthly basis by senior staff and the company's in house surveying team.

D J Swallow Construction Limited (Registered number: 03534324)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Construction 23,383,759 19,494,476
23,383,759 19,494,476

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 23,383,759 19,494,476
23,383,759 19,494,476

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,806,831 2,592,578
Social security costs 1,264 356
Other pension costs 147,549 146,419
2,955,644 2,739,353

The average number of employees during the year was as follows:
2023 2022

Site based staff 51 52
Office based staff 15 11
66 63

5. DIRECTORS' EMOLUMENTS
2023 2022
£    £   
Directors' remuneration 36,048 29,222

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 3

D J Swallow Construction Limited (Registered number: 03534324)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

6. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Hire of plant and machinery 1,396,800 614,940
Depreciation - owned assets 7,927 8,408
Loss on disposal of fixed assets - 1,557
Auditors' remuneration 18,750 21,775

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Other interest payable - 863

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 489,724 210,061

Deferred tax 995 (8,002 )
Tax on profit 490,719 202,059

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 2,537,362 1,299,725
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

482,099

246,948

Effects of:
Expenses not deductible for tax purposes 9,439 2,862
Capital allowances in excess of depreciation (1,814 ) (891 )
Utilisation of tax losses - (38,858 )
Deferred taxation 995 (8,002 )
Total tax charge 490,719 202,059

D J Swallow Construction Limited (Registered number: 03534324)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

9. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 1,878,500 160,000
Non voting shares shares of £1 each
Interim 38,200 75,500
1,916,700 235,500

10. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Computer
machinery fittings equipment Totals
£    £    £    £   
COST
At 1 April 2022 9,586 38,345 16,517 64,448
Additions - 2,987 3,574 6,561
At 31 March 2023 9,586 41,332 20,091 71,009
DEPRECIATION
At 1 April 2022 5,578 26,264 7,140 38,982
Charge for year 601 3,014 4,312 7,927
At 31 March 2023 6,179 29,278 11,452 46,909
NET BOOK VALUE
At 31 March 2023 3,407 12,054 8,639 24,100
At 31 March 2022 4,008 12,081 9,377 25,466

11. STOCKS
2023 2022
£    £   
Work-in-progress 3,167,410 2,310,396

Cost of stock recognised as an expense in the year amounted to £19,452,830 (2022: £16,861,120).

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 404,826 2,040,871
Amounts owed by group undertakings 155,334 670,891
Other debtors 86,559 155,509
VAT 625,387 651,671
Prepayments and accrued income 10,278 -
1,282,384 3,518,942

D J Swallow Construction Limited (Registered number: 03534324)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 15) 100,000 100,000
Trade creditors 1,972,418 2,907,385
Amounts owed to group undertakings - 105,312
Tax 384,278 210,061
Social security and other taxes 68,541 69,681
Other creditors 80,986 41,968
Directors' current accounts 128 109
Accruals and deferred income 100,553 61,750
2,706,904 3,496,266

The bank overdraft is secured by debenture dated 14th August 2009.

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 15) 208,333 308,333

15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 100,000 100,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 100,000 100,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 108,333 208,333

The above loans analysis is solely in relation to a Coronavirus Business Interruption Loan Scheme Loan (CBILS) entered into by the company on 6th April 2020. The loan terms include an initial 12 month repayment and interest holiday, with repayments commencing 17th May 2021 with an applicable interest rate of 3.06%.

16. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 308,333 408,333

In respect to the bank overdraft and loan in favour of Natwest Bank PLC, security has been provided in the form of a debenture by way of a fixed and floating charge over the undertaking and all property and assets present and future, including goodwill, book debts, uncalled capital, buildings, fixtures, fixed plant & machinery.

D J Swallow Construction Limited (Registered number: 03534324)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

17. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 4,418 3,423

Deferred
tax
£   
Balance at 1 April 2022 3,423
Charge to Statement of Comprehensive Income during year 995
Balance at 31 March 2023 4,418

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100 Ordinary £1 100 100
10 Non voting shares £1 10 10
110 110

19. RESERVES
Retained
earnings
£   

At 1 April 2022 2,058,127
Profit for the year 2,046,643
Dividends (1,916,700 )
At 31 March 2023 2,188,070

20. OTHER FINANCIAL COMMITMENTS

Guarantees

D J Swallow Construction Limited has provided a guarantee to its parent company for £200,000 in respect of a loan. The guarantee was provided on 18th December 2019.

Pension Commitments

At the year end D J Swallow Construction Limited had commitments in respect to pension liabilities of £7,513 (2022: £7,600).

D J Swallow Construction Limited (Registered number: 03534324)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 March 2023 and 31 March 2022:

2023 2022
£    £   
Mr D J Swallow
Balance outstanding at start of year - -
Amounts advanced 8,075 78,467
Amounts repaid (8,075 ) (78,467 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - -

Mr N G Hewerdine
Balance outstanding at start of year (109 ) (173 )
Amounts advanced 125,863 86,267
Amounts repaid (125,882 ) (86,203 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year (128 ) (109 )

Interest has been charged on the overdrawn directors loan accounts at 2%.

22. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
2023 2022
£    £   
Purchases 1,396,800 614,940
Disposal of fixed assets - 48,380
Amount due from related party 138,938 670,891

Other related parties
2023 2022
£    £   
Amount due from related party 100,955 155,509
Amount due to related party 32,835 105,312

During the year, a total of key management personnel compensation of £ 37,312 (2022 - £ 29,578 ) was paid.

23. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is D J Swallow Holdings Limited.

The company is controlled by its immediate and ultimate parent company D J Swallow Holdings Limited, which is controlled by its majority shareholder, Mr D J Swallow. D J Swallow Holdings Limited is a company registered in England and Wales and shares its registered office address with D J Swallow Construction Limited.

The parent company of the largest and smallest group for which consolidated accounts are prepared is D J Swallow Holdings Limited. Consolidated accounts are available from Companies House.