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COMPANY REGISTRATION NUMBER: 02678169
S S Builders Merchants Limited
Filleted Unaudited Financial Statements
30 June 2023
S S Builders Merchants Limited
Statement of Financial Position
30 June 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible assets
7
1,240,642
1,210,015
Current assets
Stocks
464,621
421,789
Debtors
8
1,477,410
1,577,822
Cash at bank and in hand
611,325
1,114,189
------------
------------
2,553,356
3,113,800
Creditors: amounts falling due within one year
9
603,087
735,999
------------
------------
Net current assets
1,950,269
2,377,801
------------
------------
Total assets less current liabilities
3,190,911
3,587,816
Creditors: amounts falling due after more than one year
10
29,861
Provisions
Taxation including deferred tax
89,556
46,365
------------
------------
Net assets
3,101,355
3,511,590
------------
------------
S S Builders Merchants Limited
Statement of Financial Position (continued)
30 June 2023
2023
2022
Note
£
£
£
Capital and reserves
Called up share capital
2,000
2,000
Profit and loss account
13
3,099,355
3,509,590
------------
------------
Shareholders funds
3,101,355
3,511,590
------------
------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
For the year ending 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
These financial statements were approved by the board of directors and authorised for issue on 16 November 2023 , and are signed on behalf of the board by:
Mr A S Phull
Mr P S Phull
Director
Director
Mr S S Phull
Director
Company registration number: 02678169
S S Builders Merchants Limited
Notes to the Financial Statements
Year ended 30 June 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 40 Bickley Road, Leyton, London, E10 7AQ.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Revenue recognition
Turnover represents the invoiced value of goods and services supplied by the company, net of value added tax and trade discounts.
Taxation
The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the directors consider it is more likely than not that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred taxation is measured on a non-discounted basis at the average tax rates that would apply when the timing differences are expected to reverse, based on the tax rate and laws that have been enacted by the balance sheet date.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
All fixed assets are initially recorded at cost except for the revaluation of the freehold property to its existing uset value. .
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property
-
2% straight line
Plant and machinery
-
15% reducing balance
Motor vehicles
-
15% reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
Debtors
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Cash and cash equivalents
Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Creditors
Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment
4. Employee numbers
The average number of persons employed by the company during the year amounted to 18 (2022: 19 ).
5. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
136,498
179,814
Deferred tax:
Origination and reversal of timing differences
43,191
( 1,883)
---------
---------
Tax on profit
179,689
177,931
---------
---------
6. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2023
2022
£
£
Equity dividends on ordinary shares
927,000
863,100
---------
---------
7. Tangible assets
Freehold property
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2022
1,215,000
114,626
416,401
1,746,027
Additions
3,168
116,448
119,616
------------
---------
---------
------------
At 30 June 2023
1,215,000
117,794
532,849
1,865,643
------------
---------
---------
------------
Depreciation
At 1 July 2022
315,600
81,492
138,920
536,012
Charge for the year
24,300
5,600
59,089
88,989
------------
---------
---------
------------
At 30 June 2023
339,900
87,092
198,009
625,001
------------
---------
---------
------------
Carrying amount
At 30 June 2023
875,100
30,702
334,840
1,240,642
------------
---------
---------
------------
At 30 June 2022
899,400
33,134
277,481
1,210,015
------------
---------
---------
------------
Tangible assets held at valuation
In the opinion of the directors the existing use value of the freehold property is at least equal to the book value. The historical cost of the property was £839,312.
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery
£
At 30 June 2023
226,783
---------
At 30 June 2022
266,804
---------
8. Debtors
2023
2022
£
£
Trade debtors
649,286
748,985
Other debtors
828,124
828,837
------------
------------
1,477,410
1,577,822
------------
------------
9. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
352,095
384,442
Corporation tax
136,498
179,814
Social security and other taxes
71,676
98,676
Other creditors
42,818
73,067
---------
---------
603,087
735,999
---------
---------
10. Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
29,861
----
--------
11. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
£
£
Not later than 1 year
29,861
55,556
Later than 1 year and not later than 5 years
29,861
--------
--------
29,861
85,417
--------
--------
12. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions
89,556
46,365
--------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
69,453
26,262
Revaluation of tangible assets
20,103
20,103
--------
--------
89,556
46,365
--------
--------
13. Reserves
Profit and loss account - Included in this reserve are distributable profits made up of retained earnings and accumulated losses of £2,645,353 and undistributable profits arising on net asset revaluations of £454,002.
14. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Later than 1 year and not later than 5 years
51,000
51,000
--------
--------
15. Related party transactions
The directors, Mr A S Phull , Mr P S Phull and Mr S S Phull are also the partners in S S Phull and Sons. The following transactions arose during the year: 1) Rent of £51,000 was paid during the year (2022 - £51,000). 2) The balance owed by S S Phull and Sons as at 30 June 2023 was £648,384(2022 - £648,384). 3) Dividends of £927,000 (2022 - £863,100) were paid to the directors during the year.