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REGISTERED NUMBER: 05640361 (England and Wales)















DANIEL CHARLES CONSTRUCTION LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2023






DANIEL CHARLES CONSTRUCTION LIMITED (REGISTERED NUMBER: 05640361)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023




Page

Company Information 1

Strategic Report 2 to 3

Report of the Directors 4

Report of the Independent Auditors 5 to 7

Income Statement 8

Other Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Statement of Cash Flows 12

Notes to the Statement of Cash Flows 13

Notes to the Financial Statements 14 to 20


DANIEL CHARLES CONSTRUCTION LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 30 NOVEMBER 2023







DIRECTORS: D Ingall
Mrs J S Skelton
P J Sidebottom



SECRETARY: D Ingall



REGISTERED OFFICE: Honeywood Barn
Honeyholes Lane
Dunholme
Lincoln
Lincolnshire
LN2 3SU



REGISTERED NUMBER: 05640361 (England and Wales)



SENIOR STATUTORY AUDITOR: Timothy Godson FCA



AUDITORS: Duncan & Toplis Audit Limited, Statutory Auditor
4 Henley Way
Doddington Road
Lincoln
Lincolnshire
LN6 3QR

DANIEL CHARLES CONSTRUCTION LIMITED (REGISTERED NUMBER: 05640361)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023

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

REVIEW OF BUSINESS
The results for the year and financial position of the company are as shown in the annexed financial statements.

2023 2022 2021 2020 2019
£ £ £ £ £

Turnover 27,200,920 26,618,224 19,435,235 16,715,622 13,746,404
Cost of sales 23,780,332 22,620,000 16,651,778 14,339,950 11,986,861
Gross Profit 3,420,588 3,998,224 2,783,457 2,375,672 1,759,543

Gross profit margin % 12.58 15.02 14.32 14.21 12.80

Profit on ordinary activities before taxation 779,258 1,867,459 1,201,816 1,166,054 456,241

% of profit on ordinary activities before taxation 2.86 7.02 6.18 6.98 3.32

The company traded well during the year with highest turnover to date. Business levels have increased due to the company's good reputation however, the gross profit margin did fall in comparison to prior years. The profit on ordinary activities before taxation has also decreased due to the economic climate. As we look forward to 2024 and beyond, we are positive that margin's will return to prior levels. The Directors are happy with the overall results of the company and its future prospects.

The company's operations and assets are well diversified and as such the levels of operational and other risks are considered by the Directors to be acceptable. The company does not have any material exposure to any high risk market or geographical areas.

Position at the balance sheet date

The Directors consider the company to be in a solid financial position at the financial position date, with accumulated reserves of approximately £3.3 million.

Management remains mindful of the competitive environment in which the company operates and the need to maintain close control over the company's working capital and financial position.

Borrowings and Risk Management

The company's principal financial instruments comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the company operations and capital investment in plant and machinery. The company's approach to managing other risks applicable to the financial instruments minimised the risk to a level that the Directors consider acceptable.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.


DANIEL CHARLES CONSTRUCTION LIMITED (REGISTERED NUMBER: 05640361)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The company is affected by a number of factors, the principal ones of which are:

- The company is exposed to the risk of negative developments in financial markets and the sectors in which it operates, either directly or through the impact on the company's bankers, suppliers or customers. These developments can result in recession, inflation, deflation, restrictions in the availability of credit, impact on demand from customers, problems in the supplier base, increases in financing costs or in the cost of utilities and raw materials. Such developments might increase operating costs, reduce revenues, lower asset values or result in the businesses being unable to meet in full its strategic objectives.

- The company operates in a competitive market, and failure to compete effectively in terms of price, product specification and quality can have an adverse effect on demand and / or margins.

The company mitigates risk in several ways:

- The company has in place an organisational structure with clearly defined lines of responsibility and delegation of authority. There are established policies and procedures for the setting of corporate strategies; financial planning and budgeting; for information and reporting systems; for systems of operational and financial internal control; for assessment of risk; and for monitoring operations and performance.

- Management and staff at all levels work closely with customers and suppliers to operate as effectively and efficiently as possible, whilst maintaining long term working relationships, innovation and good lines of communication.

- The company operates a recruitment and selection process to ensure employees are experienced and competent in their work. The workforce is trained to be alert, responsive to customer needs, and to operate in line with the company's corporate objectives.

FUTURE DEVELOPMENTS
The company's strategy is to continue organic growth using the existing business model.

ON BEHALF OF THE BOARD:





D Ingall - Director


22 August 2024

DANIEL CHARLES CONSTRUCTION LIMITED (REGISTERED NUMBER: 05640361)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 NOVEMBER 2023

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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of civil engineering and construction.

DIVIDENDS
£606,170 worth of dividends were paid during the year ended 30 November 2023.

DIRECTORS
D Ingall has held office during the whole of the period from 1 December 2022 to the date of this report.

Other changes in directors holding office are as follows:

Mrs J S Skelton - appointed 7 July 2023
P J Sidebottom - appointed 7 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





D Ingall - Director


22 August 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DANIEL CHARLES CONSTRUCTION LIMITED

Opinion
We have audited the financial statements of Daniel Charles Construction Limited (the 'company') for the year ended 30 November 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 November 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.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DANIEL CHARLES CONSTRUCTION LIMITED


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.

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

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

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statement audit. This included the identification and testing of unusual material journal entries and challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. These areas of uncertainty are disclosed in the accounting policies.

Secondly the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations and Employment laws.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of the health and safety audits conducted within the year for any evidence of non-compliance, in addition to an assessment of the company's employment and health and safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions or the override of internal controls.

We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DANIEL CHARLES CONSTRUCTION LIMITED


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




Timothy Godson FCA (Senior Statutory Auditor)
for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor
4 Henley Way
Doddington Road
Lincoln
Lincolnshire
LN6 3QR

22 August 2024

DANIEL CHARLES CONSTRUCTION LIMITED (REGISTERED NUMBER: 05640361)

INCOME STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023

2023 2022
Notes £    £   

TURNOVER 27,200,920 26,618,224

Cost of sales 23,780,332 22,620,000
GROSS PROFIT 3,420,588 3,998,224

Administrative expenses 2,508,210 2,080,933
912,378 1,917,291

Other operating income 33,602 27,751
OPERATING PROFIT 5 945,980 1,945,042

Interest receivable and similar income 13,931 1,093
959,911 1,946,135

Interest payable and similar expenses 6 160,653 78,676
PROFIT BEFORE TAXATION 799,258 1,867,459

Tax on profit 7 185,160 288,501
PROFIT FOR THE FINANCIAL YEAR 614,098 1,578,958

DANIEL CHARLES CONSTRUCTION LIMITED (REGISTERED NUMBER: 05640361)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 614,098 1,578,958


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 614,098 1,578,958

DANIEL CHARLES CONSTRUCTION LIMITED (REGISTERED NUMBER: 05640361)

STATEMENT OF FINANCIAL POSITION
30 NOVEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 3,994,159 3,841,825

CURRENT ASSETS
Debtors 10 6,024,670 6,139,859
Cash at bank and in hand 1,640,735 1,302,781
7,665,405 7,442,640
CREDITORS
Amounts falling due within one year 11 6,011,327 5,683,853
NET CURRENT ASSETS 1,654,078 1,758,787
TOTAL ASSETS LESS CURRENT LIABILITIES 5,648,237 5,600,612

CREDITORS
Amounts falling due after more than one year 12 (1,516,689 ) (1,588,590 )

PROVISIONS FOR LIABILITIES 15 (907,358 ) (795,760 )
NET ASSETS 3,224,190 3,216,262

CAPITAL AND RESERVES
Called up share capital 16 2 2
Retained earnings 17 3,224,188 3,216,260
SHAREHOLDERS' FUNDS 3,224,190 3,216,262

The financial statements were approved by the Board of Directors and authorised for issue on 22 August 2024 and were signed on its behalf by:





D Ingall - Director


DANIEL CHARLES CONSTRUCTION LIMITED (REGISTERED NUMBER: 05640361)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 December 2021 2 2,427,322 2,427,324

Changes in equity
Dividends - (790,020 ) (790,020 )
Total comprehensive income - 1,578,958 1,578,958
Balance at 30 November 2022 2 3,216,260 3,216,262

Changes in equity
Dividends - (606,170 ) (606,170 )
Total comprehensive income - 614,098 614,098
Balance at 30 November 2023 2 3,224,188 3,224,190

DANIEL CHARLES CONSTRUCTION LIMITED (REGISTERED NUMBER: 05640361)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,577,069 2,175,083
Interest element of hire purchase payments paid (160,653 ) (78,676 )
Government grants - 617
Tax paid - (108,070 )
Net cash from operating activities 2,416,416 1,988,954

Cash flows from investing activities
Purchase of tangible fixed assets (94,424 ) (297,562 )
Sale of tangible fixed assets 369,249 381,613
Interest received 9,816 1,093
Net cash from investing activities 284,641 85,144

Cash flows from financing activities
Capital repayments in year (1,756,933 ) (1,203,726 )
Amount introduced by directors - 99
Equity dividends paid (606,170 ) (790,020 )
Net cash from financing activities (2,363,103 ) (1,993,647 )

Increase in cash and cash equivalents 337,954 80,451
Cash and cash equivalents at beginning of year 2 1,302,781 1,222,330

Cash and cash equivalents at end of year 2 1,640,735 1,302,781

DANIEL CHARLES CONSTRUCTION LIMITED (REGISTERED NUMBER: 05640361)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 799,258 1,867,459
Depreciation charges 1,133,484 879,643
Profit on disposal of fixed assets (34,489 ) (34,488 )
Government grants - (617 )
Finance costs 160,653 78,676
Finance income (13,931 ) (1,093 )
2,044,975 2,789,580
Decrease/(increase) in trade and other debtors 119,304 (2,415,565 )
Increase in trade and other creditors 412,790 1,801,068
Cash generated from operations 2,577,069 2,175,083

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 November 2023
30.11.23 1.12.22
£    £   
Cash and cash equivalents 1,640,735 1,302,781
Year ended 30 November 2022
30.11.22 1.12.21
£    £   
Cash and cash equivalents 1,302,781 1,222,330


3. ANALYSIS OF CHANGES IN NET DEBT

Other
non-cash
At 1.12.22 Cash flow changes At 30.11.23
£    £    £    £   
Net cash
Cash at bank
and in hand 1,302,781 337,954 1,640,735
1,302,781 337,954 1,640,735
Debt
Finance leases (2,827,641 ) 1,756,933 (1,675,991 ) (2,746,699 )
(2,827,641 ) 1,756,933 (1,675,991 ) (2,746,699 )
Total (1,524,860 ) 2,094,887 (1,675,991 ) (1,105,964 )

DANIEL CHARLES CONSTRUCTION LIMITED (REGISTERED NUMBER: 05640361)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

1. STATUTORY INFORMATION

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

The presentation currency of the financial statements is the 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.

Significant judgements and estimates
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis and are covered within the accounting policies:

1) The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual value of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 9 for the carrying amount of the property, plant and equipment and note 2 (Tangible Fixed Assets) for the useful economic lives for each class of asset.

2) The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, ageing profile of debtors and historical experience. See note 10 for the net carrying amount of the debtors and associated impairment provision.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Turnover
Turnover, exclusive of value added tax, is recognised on contracts where the company has obtained a right to the consideration. Turnover recognised in this manner is based on an assessment of the fair value of the goods and services provided at the date of financial position as a proportion of the total value of the engagement. Provision is made against unbilled amounts on those engagements where the right to receive payment is contingent on factors outside the control of the company. Turnover, which at the financial reporting date have not been billed, are recognised as amounts recoverable on contracts.

In respect of long term contracts and contracts for ongoing services, turnover represents the value of work done in the year, including estimates of amounts not invoiced and is recognised by reference to the stage of completion.

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.
Land - Land - Not depreciated
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 25% on reducing balance and 15% on reducing balance
Computer equipment - 30% on reducing balance

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.


DANIEL CHARLES CONSTRUCTION LIMITED (REGISTERED NUMBER: 05640361)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2023

2. ACCOUNTING POLICIES - continued
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 statement of financial position date.

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

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

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

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the statement of financial position. 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 the income statement over the relevant period. The capital element of the future payment is treated as a liability.

Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease.

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 the income statement in the period to which they relate.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 5,107,580 4,233,116
Social security costs 555,044 480,394
Other pension costs 111,941 96,934
5,774,565 4,810,444

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

Direct 79 72
Admin 37 34
116 106

4. DIRECTORS' EMOLUMENTS
2023 2022
£    £   
Directors' remuneration 63,708 -
Directors' pension contributions to money purchase schemes 1,835 -

DANIEL CHARLES CONSTRUCTION LIMITED (REGISTERED NUMBER: 05640361)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2023

5. OPERATING PROFIT

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

2023 2022
£    £   
Depreciation - owned assets 185,429 92,794
Depreciation - assets on hire purchase contracts 948,055 786,849
Profit on disposal of fixed assets (34,489 ) (34,488 )
Auditors' remuneration 11,275 13,340
Operating lease payments to holding company 97,320 97,320

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Hire purchase interest 160,653 78,676

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
Adjustment re previous years - (7,670 )
Group relief payment 73,562 -
Total current tax 73,562 (7,670 )

Deferred tax 111,598 296,171
Tax on profit 185,160 288,501

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:

2023 2022
£    £   
Profit before tax 799,258 1,867,459
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2022 -
19%)

199,815

354,817

Effects of:
Expenses not deductible for tax purposes 6,701 4,656
Income not taxable for tax purposes (2,596 ) (8,282 )
Capital allowances in excess of depreciation (124,000 ) (314,153 )
Adjustments to tax charge in respect of previous periods - (7,670 )
Group relief (79,920 ) (37,038 )
Temporary timing differences 111,598 296,171
Group relief payment 73,562 -


Total tax charge 185,160 288,501

DANIEL CHARLES CONSTRUCTION LIMITED (REGISTERED NUMBER: 05640361)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2023

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 606,170 790,020

9. TANGIBLE FIXED ASSETS
Fixtures
Plant and and
Land machinery fittings
£    £    £   
COST
At 1 December 2022 67,779 5,817,210 54,808
Additions - 1,080,722 -
Disposals - (749,444 ) (20,420 )
At 30 November 2023 67,779 6,148,488 34,388
DEPRECIATION
At 1 December 2022 - 2,752,095 43,199
Charge for year - 894,051 1,691
Eliminated on disposal - (477,561 ) (16,949 )
At 30 November 2023 - 3,168,585 27,941
NET BOOK VALUE
At 30 November 2023 67,779 2,979,903 6,447
At 30 November 2022 67,779 3,065,115 11,609

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 December 2022 1,255,957 124,275 7,320,029
Additions 517,928 21,928 1,620,578
Disposals (220,903 ) (59,962 ) (1,050,729 )
At 30 November 2023 1,552,982 86,241 7,889,878
DEPRECIATION
At 1 December 2022 603,126 79,784 3,478,204
Charge for year 222,325 15,417 1,133,484
Eliminated on disposal (165,568 ) (55,891 ) (715,969 )
At 30 November 2023 659,883 39,310 3,895,719
NET BOOK VALUE
At 30 November 2023 893,099 46,931 3,994,159
At 30 November 2022 652,831 44,491 3,841,825

The net book value of tangible fixed assets includes £ 3,232,253 (2022 - £ 3,064,178 ) in respect of assets held under hire purchase contracts.

DANIEL CHARLES CONSTRUCTION LIMITED (REGISTERED NUMBER: 05640361)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2023

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 4,344,569 3,294,371
Amounts owed by group undertakings 948,097 331,227
Amounts recoverable on contract 492,510 1,872,487
Other debtors 24,082 383,070
Tax 79,115 75,000
Prepayments and accrued income 136,297 183,704
6,024,670 6,139,859

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 13) 1,230,010 1,239,051
Trade creditors 3,170,016 3,732,936
Amounts owed to group undertakings 570,359 326,491
Other taxes and social security 126,650 132,430
Other creditors 31,659 24,030
Directors' loan accounts 99 99
Accruals and deferred income 882,534 228,816
6,011,327 5,683,853

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 13) 1,516,689 1,588,590

13. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 1,230,010 1,239,051
Between one and five years 1,516,689 1,588,590
2,746,699 2,827,641

Non-cancellable operating leases
2023 2022
£    £   
Within one year 125,320 125,470
Between one and five years 389,280 417,280
In more than five years 973,200 1,070,520
1,487,800 1,613,270

DANIEL CHARLES CONSTRUCTION LIMITED (REGISTERED NUMBER: 05640361)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2023

14. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Hire purchase contracts 2,746,699 2,827,641

A debenture dated 29 June 2007 is in place for the fixed and floating charges over the undertaking and all property and assets present and future including goodwill, uncalled capital, land and buildings and plant and machinery.

15. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 907,358 795,760

Deferred
tax
£   
Balance at 1 December 2022 795,760
Charge to Income Statement during year 111,598
Balance at 30 November 2023 907,358

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
2 Ordinary £1 2 2

17. RESERVES
Retained
earnings
£   

At 1 December 2022 3,216,260
Profit for the year 614,098
Dividends (606,170 )
At 30 November 2023 3,224,188

The retained earnings account represents cumulative profits and losses net of dividends and other adjustments.

18. CONTINGENT LIABILITIES

The company is a party to a cross guarantee given to National Westminster Bank plc with Daniel Charles Group Limited.

DANIEL CHARLES CONSTRUCTION LIMITED (REGISTERED NUMBER: 05640361)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2023

19. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 30 November 2023 and 30 November 2022:

2023 2022
£    £   
D Ingall
Balance outstanding at start of year (99 ) -
Amounts repaid - (99 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year (99 ) (99 )

20. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
2023 2022
£    £   
Purchases 292,837 193,851
Amount due from related party 948,096 331,227

Other related parties
2023 2022
£    £   
Sales 62,239 938,800
Purchases 305,171 2,075,387
Rent 28,000 28,000
Amount due from related party 918 918
Amount due to related party (570,359 ) (326,491 )

21. ULTIMATE CONTROLLING PARTY

The company is under the control of Daniel Charles Group Limited which owns 100% of the company's issued share capital.