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REGISTERED NUMBER: 04900491 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 September 2023

for

Sleaford Building Services Limited

Sleaford Building Services Limited (Registered number: 04900491)






Contents of the Financial Statements
for the Year Ended 30 September 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


Sleaford Building Services Limited

Company Information
for the Year Ended 30 September 2023







DIRECTORS: B M Exton
R A White
R Holdford
M J Salton
J P Webster





SECRETARY: R A White





REGISTERED OFFICE: Amon House, Heckington Business Park
Station Road
Heckington
Sleaford
Lincolnshire
NG34 9JH





REGISTERED NUMBER: 04900491 (England and Wales)





AUDITORS: Xeinadin Audit Limited t/a Xeinadin Auditing
12 Conqueror Court
Sittingbourne
Kent
ME10 5BH

Sleaford Building Services Limited (Registered number: 04900491)

Strategic Report
for the Year Ended 30 September 2023

The directors present their strategic report for the year ended 30 September 2023.

REVIEW OF BUSINESS
The company's principle activity during the period was Mechanical and Electrical Engineering installations on both design and build contracts and pre designed installations. The company continued to deliver a service and maintenance division of the business.

The primary focus of the management team is to deliver a high quality service to our customers.

Trading conditions remained challenging given the continued impact of the COVID pandemic along with Brexit, the Ukraine crisis and ongoing inflation concerns having all had an impact on material availability and prices, as well as general labour shortages and post COVID attitudes towards working routines. The Directors have focused on securing contracts that provided a baseline workload for the staff of the business, whilst limiting exposure to risks of these issues as far as possible.

Turnover over the 12 months period has increased on a pro-rated basis to £15,512,262 (2022 - 18 months £19,566,580), with a gross margin achieved of 26.1% (2022 - 21.0%).

The profit before taxation for the period was £1,036,980 (2022 - £670,058) which in the opinion of the Directors is a satisfactory performance given the trading conditions.

PRINCIPAL RISKS AND UNCERTAINTIES
Management continually monitors the key risks facing the company, together with assessing the controls used for managing these risks. The board of Directors formally review the principle risks facing the business at least annually.
The principle risks and uncertainties facing the company are as follows:

1. Contract risk: Significant time is invested in the tendering process to try and ensure that achievable margins and realistic programming of potential works reduce the risks throughout the contract works. Projects are closely monitored for performance and any indicators of issues are swiftly reviewed and monitored by a pro-active management team.

2. Competitor risk: Trading conditions remain competitive, and therefore competitor pressure can result in loss of sales to key competitors. The company manages this risk by carrying out high quality work and maintaining strong relationships with its key customers. In the period an increased focus on repeat work for valued clients in specific sectors has been seen as a key factor in ensuring the company manages its clients and their expectations to the best of our ability.

3. People: The company depends upon its management team and highly skilled workforce but acknowledges the increasingly competitive market for people. Management seek to ensure that all personnel are appropriately remunerated and ensure that good performance is rewarded through flexible incentives and bonus scheme.

4. Health and Safety issues: The company operates to a high standard of health and safety with regular training for all employees and subcontractors.

KEY PERFORMANCE INDICATORS
Management use a range of performance measures to monitor and manage the business. The KPIs used to determine the progress and performance of the company are set out below:

1. Gross profit margin - The company gross profit margin in the period under review was 26.1%.

2. Net current assets - Net current assets represent the liquidity of the company and amounted to £773,120.

3. Financing - The company continues to operate with minimal bank debt and aims to retain cash resources to provide for short term funding if required.


Sleaford Building Services Limited (Registered number: 04900491)

Strategic Report
for the Year Ended 30 September 2023

FUTURE DEVELOPMENTS
The company has secured contracts continuing into 2024 since the year end and the Directors are confident of increasing trading activity in the forthcoming years.

ON BEHALF OF THE BOARD:





R A White - Director


11 March 2024

Sleaford Building Services Limited (Registered number: 04900491)

Report of the Directors
for the Year Ended 30 September 2023

The directors present their report with the financial statements of the company for the year ended 30 September 2023.

DIVIDENDS
No dividends will be distributed for the year ended 30 September 2023.

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

B M Exton
R A White
R Holdford
M J Salton

Other changes in directors holding office are as follows:

J P Webster - appointed 3 July 2023

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.

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Sleaford Building Services Limited (Registered number: 04900491)

Report of the Directors
for the Year Ended 30 September 2023


AUDITORS
The auditors, Xeinadin Audit Limited t/a Xeinadin Auditing, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



R A White - Director


11 March 2024

Report of the Independent Auditors to the Members of
Sleaford Building Services Limited

Opinion
We have audited the financial statements of Sleaford Building Services Limited (the 'company') for the year ended 30 September 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 30 September 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
Sleaford Building Services 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 four, 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.

Report of the Independent Auditors to the Members of
Sleaford Building Services Limited


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.

Based on our understanding of the company and industry, we identified that Health and Safety, and construction laws and regulations are the most significant to this business and we considered other laws and regulations that have a direct impact on the financial statements such as Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and concluded that the principal risks were related to management bias in accounting for long-term contracts and revenue recognition. Audit procedures undertaken in response to these risks included:

- Enquiring of management and those charged with governance around actual and potential fraud, litigation, and claims;
- Reviewing internal health and safety records and correspondence with legal advisers for indications of any instances on non-compliance with laws and regulations;
- Reviewing non-ledger transactions for items of an unusual nature and further related party transactions;
- Testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of any significant transactions outside the normal course of business;
- Evaluating assumptions and judgements made by management in the estimates involved with accounting for long term contracts; and
- Reviewing a sample of sales around the year end and ensuring correct cut-off had been applied.

Because of the inherent limitations of an audit, there is a risk that the audit procedures described above will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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/auditors responsibilities. This description forms part of our Report of the Auditors.

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.




Janet Charlton FCA (Senior Statutory Auditor)
for and on behalf of Xeinadin Audit Limited t/a Xeinadin Auditing
12 Conqueror Court
Sittingbourne
Kent
ME10 5BH

11 March 2024

Sleaford Building Services Limited (Registered number: 04900491)

Income Statement
for the Year Ended 30 September 2023

Period
1.4.21
Year Ended to
30.9.23 30.9.22
Notes £    £   

TURNOVER 3 15,512,262 19,566,580

Cost of sales 11,467,354 15,461,368
GROSS PROFIT 4,044,908 4,105,212

Administrative expenses 3,006,255 3,487,216
1,038,653 617,996

Other operating income 4 18,936 101,738
OPERATING PROFIT 6 1,057,589 719,734

Interest receivable and similar income 3,507 1,056
1,061,096 720,790

Interest payable and similar expenses 7 24,116 50,732
PROFIT BEFORE TAXATION 1,036,980 670,058

Tax on profit 8 164,461 216,371
PROFIT FOR THE FINANCIAL YEAR 872,519 453,687

Sleaford Building Services Limited (Registered number: 04900491)

Other Comprehensive Income
for the Year Ended 30 September 2023

Period
1.4.21
Year Ended to
30.9.23 30.9.22
Notes £    £   

PROFIT FOR THE YEAR 872,519 453,687


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

872,519
Prior year adjustment 2,119,429
TOTAL COMPREHENSIVE INCOME
SINCE LAST ANNUAL REPORT

2,573,116

Sleaford Building Services Limited (Registered number: 04900491)

Balance Sheet
30 September 2023

30.9.23 30.9.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 610,307 759,150

CURRENT ASSETS
Debtors 10 3,971,629 4,856,713
Cash at bank and in hand 639,260 544,164
4,610,889 5,400,877
CREDITORS
Amounts falling due within one year 11 3,837,869 2,744,896
NET CURRENT ASSETS 773,020 2,655,981
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,383,327

3,415,131

CREDITORS
Amounts falling due after more than one year 12 - (219,562 )

PROVISIONS FOR LIABILITIES 16 (303,596 ) (668,357 )
NET ASSETS 1,079,731 2,527,212

CAPITAL AND RESERVES
Called up share capital 17 100 100
Retained earnings 18 1,079,631 2,527,112
SHAREHOLDERS' FUNDS 1,079,731 2,527,212

The financial statements were approved by the Board of Directors and authorised for issue on 11 March 2024 and were signed on its behalf by:





R A White - Director


Sleaford Building Services Limited (Registered number: 04900491)

Statement of Changes in Equity
for the Year Ended 30 September 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 April 2021 100 (46,004 ) (45,904 )
Prior year adjustment - 2,119,429 2,119,429
As restated 100 2,073,425 2,073,525

Changes in equity
Total comprehensive income - 453,687 453,687
Balance at 30 September 2022 100 2,527,112 2,527,212

Changes in equity
Total comprehensive income - 872,519 872,519
Distributions to Employee
Ownership Trust - (2,320,000 ) (2,320,000 )
Balance at 30 September 2023 100 1,079,631 1,079,731

Sleaford Building Services Limited (Registered number: 04900491)

Notes to the Financial Statements
for the Year Ended 30 September 2023

1. STATUTORY INFORMATION

Sleaford Building Services 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.

The presentation currency of the financial statements is the Pound Sterling (£).


The functional currency of the company is also Pound Sterling (£).

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. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirement of paragraph 33.7.

Turnover
Turnover, for small works and sundry sales, represents net invoiced sales of goods and services excluding value added tax. For long term contracts, income is recognised based on the level of practical completion attained, which is determined based on past experience and valuations performed by project managers. Contracts are broken down sufficiently to allow the directors, with reasonable certainty, to assess the level of profitability associated with them. Provision is made for losses on all long term contracts as soon as such losses become apparent.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2% on cost
Plant and machinery - 20% on cost
Motor vehicles - 25% on reducing balance
Computer equipment - 25% on reducing balance

Tangible fixed assets are initially recognised at cost which is the purchase price plus any directly attributable costs. Subsequently, tangible fixed assets are measured at cost less accumulated depreciation and impairment losses.

Sleaford Building Services Limited (Registered number: 04900491)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
Financial assets and liabilities are recognised when the company becomes party to the contractual provisions of the financial instrument. The company holds only basic financial instruments, which comprise cash and cash equivalents, debtors, creditors and loans and borrowings. The company has chosen to apply the provisions of Section 11 'Basic Financial Instruments' in full.

(i) Cash and cash equivalents;
Cash and cash equivalents include cash in hand, deposits held with banks, and other short term highly liquid investments with original maturities of three months or less.

(ii) Debtors;
Debtors are initially recognised at the transaction price, including any transaction costs, and are subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Amounts that are receivable within one year are measured at the undiscounted amount expected to be receivable, net of any impairment.

(iii) Creditors and loans and borrowings;
Creditors and loans and borrowings are initially measured at the transaction price, including any transaction costs, and are subsequently measured at amortised costs using the effective interest method. Amounts that are payable within one year are measured at the undiscounted amount expected to be payable.
Where a financial liability constitutes a financing transaction it is initially and subsequently measured at the present value of the future payments, discounted at the market rate of interest.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

Sleaford Building Services Limited (Registered number: 04900491)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Assets obtained under hire purchase contracts are capitalised in the balance sheet and depreciated over their estimated useful lives

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Sales retentions
Retentions outstanding on invoiced contract works are included within debtors. The ageing split of retentions is based upon contract completion dates and in accordance with contractor agreement terms and/or normal terms of contract works with the contractor for retention release.

Accounting estimates and judgements
In order to assess the appropriateness of the income and costs recognised on contracts, the group is required to make estimations of sales prices, costs and margins expected in order to determine whether any writedowns or reversals are required to ensure turnover and cost of sales are stated appropriately in the financial statements.

3. TURNOVER

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

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

Period
1.4.21
Year Ended to
30.9.23 30.9.22
£    £   
Engineering installations 12,668,476 15,495,425
Housing development 2,843,786 4,071,155
15,512,262 19,566,580

Sleaford Building Services Limited (Registered number: 04900491)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

4. OTHER OPERATING INCOME
Period
1.4.21
Year Ended to
30.9.23 30.9.22
£    £   
Sundry receipts 18,936 53,353
Government grants - 48,385
18,936 101,738

Government grants of £Nil (18 months period ended 2022 : £48,385) are comprised solely of monies received under the CJRS (Coronavirus job retention scheme).

5. EMPLOYEES AND DIRECTORS
Period
1.4.21
Year Ended to
30.9.23 30.9.22
£    £   
Wages and salaries 2,419,638 3,212,193
Social security costs 251,289 321,173
Other pension costs 43,570 138,531
2,714,497 3,671,897

The average number of employees during the year was as follows:
Period
1.4.21
Year Ended to
30.9.23 30.9.22

Office and management staff 29 29
Site staff 29 25
58 54

Period
1.4.21
Year Ended to
30.9.23 30.9.22
£    £   
Directors' remuneration 340,235 288,387
Directors' pension contributions to money purchase schemes 4,293 83,302

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

Money purchase schemes 4 4

Sleaford Building Services Limited (Registered number: 04900491)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

5. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
Period
1.4.21
Year Ended to
30.9.23 30.9.22
£    £   
Emoluments etc 91,835 122,381
Pension contributions to money purchase schemes - 1,981

Key management personnel comprise the executive directors. Their aggregate remuneration is disclosed above.

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

Period
1.4.21
Year Ended to
30.9.23 30.9.22
£    £   
Hire of plant and machinery 292,562 329,241
Other operating leases 26,333 34,494
Depreciation - owned assets 138,446 126,107
Depreciation - assets on hire purchase contracts 16,067 66,397
Profit on disposal of fixed assets (138,706 ) (15,284 )
Auditors' remuneration 13,500 20,000

7. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
1.4.21
Year Ended to
30.9.23 30.9.22
£    £   
Bank interest - 2,188
Bank loan interest 13,388 13,658
Other loan interest 5,527 17,486
Other interest payable - 2,005
Hire purchase 5,201 15,395
24,116 50,732

Sleaford Building Services Limited (Registered number: 04900491)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
Period
1.4.21
Year Ended to
30.9.23 30.9.22
£    £   
Current tax:
UK corporation tax 220,406 -
Prior year (87,809 ) 128,014
Total current tax 132,597 128,014

Deferred tax 31,864 88,357
Tax on profit 164,461 216,371

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

Period
1.4.21
Year Ended to
30.9.23 30.9.22
£    £   
Profit before tax 1,036,980 670,058
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2022 -
19%)

259,245

127,311

Effects of:
Expenses not deductible for tax purposes 34,552 5,902
Income not taxable for tax purposes (34,677 ) -
Depreciation in excess of capital allowances - 10,784
Utilisation of tax losses - (143,997 )
Adjustments to tax charge in respect of previous periods (87,809 ) 128,014
Brought forward accelerated capital allowances - 77,492
Effect of profits taxed at old rate (29,962 ) -
Change in rate used for deferred tax - 10,865
Capital disposals taxable 23,715 -
Effect of capital allowances super-deduction (603 ) -
Total tax charge 164,461 216,371

From 1 April 2023, the prevailing rate of UK corporation tax increased from 19% to 25%. As this took effect part-way through this financial year, the effective rate for this period has been 22%.

Sleaford Building Services Limited (Registered number: 04900491)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

9. TANGIBLE FIXED ASSETS
Freehold Plant and Motor Computer
property machinery vehicles equipment Totals
£    £    £    £    £   
COST
At 1 October 2022 404,080 182,140 549,553 147,110 1,282,883
Additions - 1,414 361,372 45,846 408,632
Disposals (404,080 ) - (51,750 ) (29,711 ) (485,541 )
At 30 September 2023 - 183,554 859,175 163,245 1,205,974
DEPRECIATION
At 1 October 2022 28,285 92,501 301,147 101,800 523,733
Charge for year 7,438 31,909 101,349 13,817 154,513
Eliminated on disposal (35,723 ) - (21,856 ) (25,000 ) (82,579 )
At 30 September 2023 - 124,410 380,640 90,617 595,667
NET BOOK VALUE
At 30 September 2023 - 59,144 478,535 72,628 610,307
At 30 September 2022 375,795 89,639 248,406 45,310 759,150

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 October 2022 239,540
Transfer to ownership (239,540 )
At 30 September 2023 -
DEPRECIATION
At 1 October 2022 135,265
Charge for year 16,067
Transfer to ownership (151,332 )
At 30 September 2023 -
NET BOOK VALUE
At 30 September 2023 -
At 30 September 2022 104,275

Sleaford Building Services Limited (Registered number: 04900491)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

10. DEBTORS
30.9.23 30.9.22
£    £   
Amounts falling due within one year:
Trade debtors 2,482,525 2,031,045
Applications - 15,000
Work in progress 538,052 258,781
Sales retentions 112,624 159,247
Other debtors 58,814 57,115
Directors' current accounts 2,172 1,460,305
Tax 479,298 621,100
VAT 87,063 -
Prepayments 146,092 149,346
3,906,640 4,751,939

Amounts falling due after more than one year:
Sales retentions 64,989 104,774

Aggregate amounts 3,971,629 4,856,713

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.9.23 30.9.22
£    £   
Bank loans and overdrafts (see note 13) - 36,357
Hire purchase contracts (see note 14) - 37,244
Trade creditors 2,113,616 512,129
Tax 612,094 749,114
Social security and other taxes 132,182 62,722
VAT - 68,523
Other creditors 28,175 23,873
Purchase retentions 215,007 317,576
Accruals and deferred income 736,795 937,358
3,837,869 2,744,896

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
30.9.23 30.9.22
£    £   
Bank loans (see note 13) - 218,840
Hire purchase contracts (see note 14) - 722
- 219,562

Sleaford Building Services Limited (Registered number: 04900491)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

13. LOANS

An analysis of the maturity of loans is given below:

30.9.23 30.9.22
£    £   
Amounts falling due within one year or on demand:
Bank loans - 36,357

Amounts falling due between one and two years:
Bank loans - 1-2 years - 36,357

Amounts falling due between two and five years:
Bank loans - 2-5 years - 181,791

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal - 692

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
30.9.23 30.9.22
£    £   
Net obligations repayable:
Within one year - 37,244
Between one and five years - 722
- 37,966

Non-cancellable operating leases
30.9.23 30.9.22
£    £   
Within one year 73,069 9,069
Between one and five years 258,447 11,516
In more than five years 58,667 -
390,183 20,585

Sleaford Building Services Limited (Registered number: 04900491)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

15. SECURED DEBTS

The following secured debts are included within creditors:

30.9.23 30.9.22
£    £   
Bank loans - 255,197
Hire purchase contracts - 37,966
- 293,163

The bank loans were secured by fixed and floating charges over the assets of the company.

The other loans were secured over land owned by a company under common ownership.

The company has an existing, ongoing debenture with National Westminster Bank Plc with a fixed and floating charge over all property and assets of the company.

The obligations under hire purchase contracts were secured on the assets to which they relate.

16. PROVISIONS FOR LIABILITIES
30.9.23 30.9.22
£    £   
Deferred tax 120,221 88,357

Other provisions
Onerous contract provision 103,375 -
Subcontractor provision 80,000 580,000
183,375 580,000

Aggregate amounts 303,596 668,357

Deferred Other
tax provisions
£    £   
Balance at 1 October 2022 88,357 580,000
Provided during year - 103,375
Charge to Income Statement during year 31,864 -
Utilised during year - (395,587 )
Unused amounts reversed during year - (104,413 )
Balance at 30 September 2023 120,221 183,375

Sleaford Building Services Limited (Registered number: 04900491)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

16. PROVISIONS FOR LIABILITIES - continued

All deferred tax relates to accelerated capital allowances.

Included within other provisions are:

A subcontractor provision relating to anticipated costs payable pending the outcome of an ongoing legal dispute. They are expected to reverse within the next financial year. The amount utilised and unused amount reversing both relate to a separate subcontractor provision that was concluded in this financial year.

A provision for an onerous contract identified. The amount provided for is the remaining cost of fulfilling the contract. This is expected to reverse in full within the next financial year.

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.9.23 30.9.22
value: £    £   
100 Ordinary £1 100 100

18. RESERVES
Retained
earnings
£   

At 1 October 2022 2,527,112
Profit for the year 872,519
Distributions to Employee
Ownership Trust (2,320,000 )
At 30 September 2023 1,079,631

19. PENSION COMMITMENTS

The Company contributes to the individual personal pension plans of employees and directors. The assets of the schemes are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the personal pension plans. The company contributed £39,277 (2022: £55,229) in respect of employees and £4,293 (2022: £83,302) in respect of directors. As at the reporting date, amounts payable of £7,545 (2022: £8,817) had not been paid over to the plan.

20. CONTINGENT LIABILITIES

At 30 September 2023 there was a contingent liability in respect of a debenture to a previous owner, creating a fixed and floating charge over the assets of the company.

21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

During the period, directors were advanced £271,867 (2022: £1,460,305) and repaid £1,730,000 (2022: £Nil). The balance outstanding to the company at the period end is £2,172 (2022: £1,460,305) and is included within other debtors.

The balance is interest free, unsecured and repayable on demand.

Sleaford Building Services Limited (Registered number: 04900491)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

22. RELATED PARTY DISCLOSURES

Other related parties
30.9.23 30.9.22
£    £   
Sales (Related party 1) 2,808,919 3,803,180
Sales (Related party 3) 1,538 69
Purchases (Related party 1) 3,333 6,875
Purchases (Related party 2) 23,000 34,500
Purchases (Related party 3) 44,200 2,200
Loan repayment (Related party 2) - 330,005
Amount due from related party (Related party 1) 110,812 706,090
Amount due from related party (Related party 3) 15,958 25,096
Disposal of freehold property (Related party 1) 500,000 -

Related Party 1
During the current and comparative periods the company entered into transactions with other entities under shared control, the aggregate of which are disclosed above. The balances owed to and from were unsecured, interest free, and repayable on demand.

Related Party 2
During the current and comparative periods the company repaid a loan and made purchases from a pension scheme for which it is a sponsoring employer. No balances were owed at the period end.

Related Party 3
During the current and comparative periods transactions were entered into with close family members of a person with significant influence over the company. The balances outstanding at the period end were unsecured, interest free, and repayable on demand.

23. ULTIMATE CONTROLLING PARTY

The company is controlled by SBS Employee Ownership Trust.