REGISTERED NUMBER: 09147870 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 September 2023 |
for |
Sleaford Building Holdings Limited |
REGISTERED NUMBER: 09147870 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 September 2023 |
for |
Sleaford Building Holdings Limited |
Sleaford Building Holdings Limited (Registered number: 09147870) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 September 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 17 |
Sleaford Building Holdings Limited |
Company Information |
for the Year Ended 30 September 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
12 Conqueror Court |
Sittingbourne |
Kent |
ME10 5BH |
Sleaford Building Holdings Limited (Registered number: 09147870) |
Group Strategic Report |
for the Year Ended 30 September 2023 |
The directors present their strategic report of the company and the group for the year ended 30 September 2023. |
REVIEW OF BUSINESS |
The Group's principle activity during the period was Mechanical and Electrical Engineering installations on both design and build contracts and pre designed installations. The Group 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 Group, 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 Group 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 Group 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 Group manages its clients and their expectations to the best of our ability. |
3. People: The Group 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 Group 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 Group are set out below: |
1. Gross profit margin - The Group gross profit margin in the period under review was 26.1%. |
2. Net current assets - Net current assets represent the liquidity of the Group and amounted to £773,120. |
3. Financing - The Group continues to operate with minimal bank debt and aims to retain cash resources to provide for short term funding if required. |
Sleaford Building Holdings Limited (Registered number: 09147870) |
Group Strategic Report |
for the Year Ended 30 September 2023 |
FUTURE DEVELOPMENTS |
The Group 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: |
Sleaford Building Holdings Limited (Registered number: 09147870) |
Report of the Directors |
for the Year Ended 30 September 2023 |
The directors present their report with the financial statements of the company and the group 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. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
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: |
Report of the Independent Auditors to the Members of |
Sleaford Building Holdings Limited |
Opinion |
We have audited the financial statements of Sleaford Building Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 30 September 2023 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 Holdings Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 group's and the parent 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 group or the parent 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 Holdings 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 Group 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. |
for and on behalf of |
12 Conqueror Court |
Sittingbourne |
Kent |
ME10 5BH |
Sleaford Building Holdings Limited (Registered number: 09147870) |
Consolidated 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 |
Profit attributable to: |
Owners of the parent | 872,519 | 453,687 |
Sleaford Building Holdings Limited (Registered number: 09147870) |
Consolidated 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 |
Total comprehensive income attributable to: |
Owners of the parent | 872,519 | 2,573,116 |
Sleaford Building Holdings Limited (Registered number: 09147870) |
Consolidated Balance Sheet |
30 September 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 610,307 | 759,150 |
Investments | 11 | - | - |
610,307 | 759,150 |
CURRENT ASSETS |
Debtors | 12 | 3,971,629 | 4,856,713 |
Cash at bank and in hand | 639,260 | 544,328 |
4,610,889 | 5,401,041 |
CREDITORS |
Amounts falling due within one year | 13 | 3,837,769 | 2,744,896 |
NET CURRENT ASSETS | 773,120 | 2,656,145 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
1,383,427 |
3,415,295 |
CREDITORS |
Amounts falling due after more than one year | 14 | - | (219,562 | ) |
PROVISIONS FOR LIABILITIES | 18 | (303,596 | ) | (668,357 | ) |
NET ASSETS | 1,079,831 | 2,527,376 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 200 | 264 |
Retained earnings | 20 | 1,079,631 | 2,527,112 |
SHAREHOLDERS' FUNDS | 1,079,831 | 2,527,376 |
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 Holdings Limited (Registered number: 09147870) |
Company Balance Sheet |
30 September 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 12 |
Cash in hand |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | - | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
Sleaford Building Holdings Limited (Registered number: 09147870) |
Consolidated 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 | 264 | (46,004 | ) | (45,740 | ) |
Prior year adjustment | - | 2,119,429 | 2,119,429 |
As restated | 264 | 2,073,425 | 2,073,689 |
Changes in equity |
Total comprehensive income | - | 453,687 | 453,687 |
Balance at 30 September 2022 | 264 | 2,527,112 | 2,527,376 |
Changes in equity |
Issue of share capital | (64 | ) | - | (64 | ) |
Total comprehensive income | - | 872,519 | 872,519 |
Distributions to Employee |
Ownership Trust | - | (2,320,000 | ) | (2,320,000 | ) |
Balance at 30 September 2023 | 200 | 1,079,631 | 1,079,831 |
Sleaford Building Holdings Limited (Registered number: 09147870) |
Company 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 |
Changes in equity |
Balance at 30 September 2022 |
Changes in equity |
Issue of share capital | ( |
) | - | ( |
) |
Distributions to Employee |
Ownership Trust | - | (2,320,000 | ) | (2,320,000 | ) |
Capital contributions received | - | 2,320,000 | 2,320,000 |
Balance at 30 September 2023 |
Sleaford Building Holdings Limited (Registered number: 09147870) |
Consolidated Cash Flow Statement |
for the Year Ended 30 September 2023 |
Period |
1.4.21 |
Year Ended | to |
30.9.23 | 30.9.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,265,414 | 2,641,350 |
Interest paid | (18,915 | ) | (35,337 | ) |
Interest element of hire purchase payments paid | (5,201 | ) | (15,395 | ) |
Taxation paid | (357,426 | ) | - |
Taxation refunds | 229,611 | - |
Net cash from operating activities | 1,113,483 | 2,590,618 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (408,632 | ) | (179,676 | ) |
Sale of tangible fixed assets | 26,668 | 61,863 |
Cash paid for the EOT distribution | (75,000 | ) | - |
Interest received | 3,507 | 1,056 |
Net cash from investing activities | (453,457 | ) | (116,757 | ) |
Cash flows from financing activities |
Loan repayments in year | (255,197 | ) | (374,409 | ) |
Capital repayments in year | (37,966 | ) | (135,317 | ) |
Amount withdrawn by directors | (271,867 | ) | (1,465,261 | ) |
Share buyback | (64 | ) | - |
Net cash from financing activities | (565,094 | ) | (1,974,987 | ) |
Increase in cash and cash equivalents | 94,932 | 498,874 |
Cash and cash equivalents at beginning of year |
2 |
544,328 |
45,454 |
Cash and cash equivalents at end of year | 2 | 639,260 | 544,328 |
Sleaford Building Holdings Limited (Registered number: 09147870) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 September 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.4.21 |
Year Ended | to |
30.9.23 | 30.9.22 |
£ | £ |
Profit before taxation | 1,036,980 | 670,058 |
Depreciation charges | 154,513 | 192,499 |
Profit on disposal of fixed assets | (138,706 | ) | (15,284 | ) |
Movement in onerous contract provision | 103,375 | (389,158 | ) |
Movement in subcontractor cost provision | (500,000 | ) | 580,000 |
Finance costs | 24,116 | 50,732 |
Finance income | (3,507 | ) | (1,056 | ) |
676,771 | 1,087,791 |
(Increase)/decrease in trade and other debtors | (714,851 | ) | 2,627,727 |
Increase/(decrease) in trade and other creditors | 1,303,494 | (1,074,168 | ) |
Cash generated from operations | 1,265,414 | 2,641,350 |
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 30 September 2023 |
30.9.23 | 1.10.22 |
£ | £ |
Cash and cash equivalents | 639,260 | 544,328 |
Period ended 30 September 2022 |
30.9.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 544,328 | 45,454 |
Sleaford Building Holdings Limited (Registered number: 09147870) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 September 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.10.22 | Cash flow | At 30.9.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 544,328 | 94,932 | 639,260 |
544,328 | 94,932 | 639,260 |
Debt |
Finance leases | (37,966 | ) | 37,966 | - |
Debts falling due within 1 year | (36,357 | ) | 36,357 | - |
Debts falling due after 1 year | (218,840 | ) | 218,840 | - |
(293,163 | ) | 293,163 | - |
Total | 251,165 | 388,095 | 639,260 |
Sleaford Building Holdings Limited (Registered number: 09147870) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 September 2023 |
1. | STATUTORY INFORMATION |
Sleaford Building Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings made up to the year end. |
Subsidiaries are included within the consolidation where the Company has control over such entities, thereby having the power to govern the financial and operating policies of the entity. |
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 |
Freehold property | - |
Plant and machinery | - |
Motor vehicles | - |
Computer equipment | - |
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 Holdings Limited (Registered number: 09147870) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial assets and liabilities are recognised when the Group becomes party to the contractual provisions of the financial instrument. The Group holds only basic financial instruments, which comprise cash and cash equivalents, debtors, creditors and loans and borrowings. The Group 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 Consolidated 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 Holdings Limited (Registered number: 09147870) |
Notes to the Consolidated 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 group operates a defined contribution pension scheme. Contributions payable to the group'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 group. |
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 Holdings Limited (Registered number: 09147870) |
Notes to the Consolidated 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 |
The average number of employees by undertakings that were proportionately consolidated during the year was 58 (2022 - 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 |
Sleaford Building Holdings Limited (Registered number: 09147870) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
5. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 4 | 4 |
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 |
Bad debts | 113,694 | 306,247 |
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 Holdings Limited (Registered number: 09147870) |
Notes to the Consolidated 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 tax 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 Holdings Limited (Registered number: 09147870) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
10. | TANGIBLE FIXED ASSETS |
Group |
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 Holdings Limited (Registered number: 09147870) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 October 2022 |
and 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Sleaford Building Services Limited |
Registered office: Same as parent - see company information page |
Nature of business: Mechanical and electrical engineering |
% |
Class of shares: | holding |
Ordinary | 100.00 |
The subsidiary is incorporated in England & Wales, and is included within the consolidation. |
12. | DEBTORS |
Group | Company |
30.9.23 | 30.9.22 | 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 | - | - |
Amounts owed by group undertakings | - | - |
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 |
Sleaford Building Holdings Limited (Registered number: 09147870) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
12. | DEBTORS - continued |
Group | Company |
30.9.23 | 30.9.22 | 30.9.23 | 30.9.22 |
£ | £ | £ | £ |
Amounts falling due after more than one year: |
Sales retentions | 64,989 | 104,774 | - | - |
Aggregate amounts | 3,971,629 | 4,856,713 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
30.9.23 | 30.9.22 |
£ | £ |
Bank loans and overdrafts (see note 15) | - | 36,357 |
Hire purchase contracts (see note 16) | - | 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 | 28,075 | 23,873 |
Purchase retentions | 215,007 | 317,576 |
Accruals and deferred income | 736,795 | 937,358 |
3,837,769 | 2,744,896 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
30.9.23 | 30.9.22 |
£ | £ |
Bank loans (see note 15) | - | 218,840 |
Hire purchase contracts (see note 16) | - | 722 |
- | 219,562 |
Sleaford Building Holdings Limited (Registered number: 09147870) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
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 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
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 |
Group |
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 Holdings Limited (Registered number: 09147870) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
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. |
18. | PROVISIONS FOR LIABILITIES |
Group |
30.9.23 | 30.9.22 |
£ | £ |
Deferred tax | 120,221 | 88,357 |
Other provisions |
Onerous contract provisions | 103,375 | - |
Subcontractor provision | 80,000 | 580,000 |
183,375 | 580,000 |
Aggregate amounts | 303,596 | 668,357 |
Group |
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 Holdings Limited (Registered number: 09147870) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
18. | 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. |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.9.23 | 30.9.22 |
value: | £ | £ |
Ordinary A | £0.01 | 200 | 200 |
Ordinary B | £1 | - | 57 |
Ordinary C | £1 | - | 7 |
200 | 264 |
Ordinary A shares have full voting, dividend, and capital distribution rights. |
During the year, Ordinary A shares have been sub-division from 200 shares at £1 each to 20,000 shares at £0.01 each. |
In addition, Ordinary B and C shares have been cancelled. |
20. | RESERVES |
Group |
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 |
Sleaford Building Holdings Limited (Registered number: 09147870) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
20. | RESERVES - continued |
Company |
Retained |
earnings |
£ |
Profit for the year |
Distributions to Employee |
Ownership Trust | (2,320,000 | ) |
Capital contributions received | 2,320,000 |
At 30 September 2023 |
During the year, a sale was enacted of 69.75% of the Ordinary A shares to SBS EOT Limited, held on behalf of the newly established Employee Ownership Trust (EOT). |
21. | PENSION COMMITMENTS |
The Group 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. |
22. | 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. |
23. | 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. |
24. | 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 | - |
Sleaford Building Holdings Limited (Registered number: 09147870) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
24. | RELATED PARTY DISCLOSURES - continued |
Related Party 1 |
During the current and comparative periods the group 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 group 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 group. The balances outstanding at the period end were unsecured, interest free, and repayable on demand. |
25. | ULTIMATE CONTROLLING PARTY |
The company is controlled by SBS Employee Ownership Trust. |