REGISTERED NUMBER: 11655346 (England and Wales) |
David Salisbury Group Holdings Limited |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
REGISTERED NUMBER: 11655346 (England and Wales) |
David Salisbury Group Holdings Limited |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Contents of the Consolidated Financial Statements |
for the year ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 4 |
Consolidated Profit and Loss Account | 7 |
Consolidated Balance Sheet | 8 |
Company Balance Sheet | 9 |
Consolidated Statement of Changes in Equity | 10 |
Company Statement of Changes in Equity | 11 |
Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Financial Statements | 13 |
David Salisbury Group Holdings Limited |
Company Information |
for the year ended 31 December 2023 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Accountants and Business Advisers |
& Statutory Auditor |
One New Street |
Wells |
Somerset |
BA5 2LA |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Group Strategic Report |
for the year ended 31 December 2023 |
The director presents his strategic report of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group is the manufacture, sale and installation of bespoke orangeries, conservatories, garden rooms and kitchens. |
2023 TRADING SUMMARY |
.After the mid pandemic boom in the home improvement market, 2023 was more challenging. High interest rates and political uncertainty have depressed the market and lead to a drop in orders. During the year the company completed its planned investment program in new generation CNC machinery. Investment in manufacturing software and automation is substantial and ongoing. We plan to invest in new PV to double our solar panel electricity generation during 2024. |
During 2023 The company invested heavily in launching a new upmarket kitchen product. Three show kitchens have been built, and three were installed for paying clients. Four more orders are on the books, and we expect kitchen sales to add significantly to turnover in 2024. |
Other financial key performance indicators are as follows; |
2023 | 2022 | 2021 | 2020 |
Gross Profit (000's) | 4,048 | 5,078 | 4,154 | 3,746 |
Gross Profit % | 28 | 30 | 29 | 30 |
Net Assets (000's) | 3,351 | 3,244 | 2,548 | 2,056 |
PRINCIPAL RISKS AND UNCERTAINTIES |
National and international political uncertainties, coupled with continued high interest rates are likely to make for a slow economic recovery from the 2023 'shallow' recession. A general election in the Autumn may depress order intake over that period. Falling inflation and expected interest rate cuts may help mitigate other factors. |
OUTLOOK |
The results for 2024 are expected to be similar to 2023. The upmarket kitchen sector is considerably larger than the market for our glazed house extensions and only a relatively small market share can produce significant growth for this business. The expectation is that kitchen turnover will grow substantially over the next two years. |
The Board would like to take this opportunity to thank all employees for their continued support and commitment through the year. |
ON BEHALF OF THE BOARD: |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Report of the Director |
for the year ended 31 December 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of manufacture, sale and installation of bespoke orangeries, conservatories and garden rooms. |
DIVIDENDS |
Interim dividends per share were paid during the year as follows: |
Ordinary £1 | - | £1.05263 | - 17 July 2023 |
A Ordinary £1 | - | £1460 | - 17 July 2023 |
The total distribution of dividends for the year ended 31 December 2023 will be £ 74,000 . |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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, Webb & Co Ltd, 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 |
David Salisbury Group Holdings Limited |
Opinion |
We have audited the financial statements of David Salisbury Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Profit and Loss Account, 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 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 31 December 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 director's 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
David Salisbury Group 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 Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined in the Auditors' responsibilities for the audit of the financial statements section, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. |
Based on our understanding of the company and industry we identified that the principal risks of non-compliance and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the 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 determined that the principal risks were related to manipulation of financial results and potential management bias in accounting estimates. Audit procedures performed by the engagement team included: |
- Discussions with the Directors and Financial Controller including consideration of known or suspected |
instances of non-compliance with laws and regulations and fraud; |
- Identifying and testing the validity of journal entries |
- Challenging assumptions made by management in its significant accounting estimates |
- Reviewing disclosures for accounting estimates |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery of intentional misrepresentations, or through collusion. |
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 |
David Salisbury Group Holdings 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. |
for and on behalf of |
Accountants and Business Advisers |
& Statutory Auditor |
One New Street |
Wells |
Somerset |
BA5 2LA |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Consolidated |
Profit and Loss Account |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 14,399,185 | 16,665,106 |
Cost of sales | (10,350,969 | ) | (11,586,718 | ) |
GROSS PROFIT | 4,048,216 | 5,078,388 |
Distribution costs | (1,903,805 | ) | (1,801,063 | ) |
Administrative expenses | (2,109,101 | ) | (2,209,738 | ) |
OPERATING PROFIT | 5 | 35,310 | 1,067,587 |
Interest receivable and similar income | 48,678 | 2,178 |
83,988 | 1,069,765 |
Gain/loss on revaluation of investment property |
- |
140,000 |
83,988 | 1,209,765 |
Interest payable and similar expenses | 7 | (25,164 | ) | (38,274 | ) |
PROFIT BEFORE TAXATION | 58,824 | 1,171,491 |
Tax on profit | 8 | 122,610 | (189,058 | ) |
PROFIT FOR THE FINANCIAL YEAR |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Consolidated Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | 26,933 | 36,093 |
Tangible assets | 12 | 4,324,073 | 4,108,301 |
Investments | 13 | - | - |
4,351,006 | 4,144,394 |
CURRENT ASSETS |
Stocks | 14 | 783,157 | 861,353 |
Debtors | 15 | 1,345,763 | 1,341,898 |
Cash at bank and in hand | 1,560,645 | 3,602,961 |
3,689,565 | 5,806,212 |
CREDITORS |
Amounts falling due within one year | 16 | 3,638,879 | 5,750,061 |
NET CURRENT ASSETS | 50,686 | 56,151 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,401,692 |
4,200,545 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(592,574 |
) |
(448,819 |
) |
PROVISIONS FOR LIABILITIES | 20 | (457,537 | ) | (507,579 | ) |
NET ASSETS | 3,351,581 | 3,244,147 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 1,000 | 1,000 |
Other reserves | 214,847 | 214,847 |
Fair value reserve | 287,812 | 287,812 |
Retained earnings | 2,847,922 | 2,740,488 |
SHAREHOLDERS' FUNDS | 3,351,581 | 3,244,147 |
The financial statements were approved by the director and authorised for issue on 3 June 2024 and were signed by: |
D Salisbury - Director |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Company Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 20 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Fair value reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 703,702 | 693,836 |
The financial statements were approved by the director and authorised for issue on |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Consolidated Statement of Changes in Equity |
for the year ended 31 December 2023 |
Called up | Fair |
share | Retained | Other | value | Total |
capital | earnings | reserves | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 | 1,000 | 2,142,328 | 214,847 | 190,087 | 2,548,262 |
Changes in equity |
FV movement of properties | - | (140,000 | ) | - | 140,000 | - |
Deferred tax on FV adjustment | - | 42,275 | - | (42,275 | ) | - |
Dividends | - | (286,548 | ) | - | - | (286,548 | ) |
Total comprehensive income | - | 982,433 | - | - | 982,433 |
Balance at 31 December 2022 | 1,000 | 2,740,488 | 214,847 | 287,812 | 3,244,147 |
Changes in equity |
Dividends | - | (74,000 | ) | - | - | (74,000 | ) |
Total comprehensive income | - | 181,434 | - | - | 181,434 |
Balance at 31 December 2023 | 1,000 | 2,847,922 | 214,847 | 287,812 | 3,351,581 |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Company Statement of Changes in Equity |
for the year ended 31 December 2023 |
Called up | Fair |
share | Retained | value | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
FV movement of properties | - | (140,000 | ) | 140,000 | - |
Deferred tax on FV adjustment | - | 42,275 | (42,275 | ) | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Consolidated Cash Flow Statement |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 23 | (1,494,132 | ) | 747,175 |
Interest element of hire purchase payments paid |
(25,164 |
) |
(38,274 |
) |
Tax paid | (44,237 | ) | 216,936 |
Net cash from operating activities | (1,563,533 | ) | 925,837 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (1,635 | ) | (15,325 | ) |
Purchase of tangible fixed assets | (575,609 | ) | (296,703 | ) |
Sale of tangible fixed assets | 19,916 | 4,387 |
Interest received | 48,678 | 2,178 |
Net cash from investing activities | (508,650 | ) | (305,463 | ) |
Cash flows from financing activities |
Capital repayments in year | 157,345 | (167,098 | ) |
Amount introduced by directors | (74,000 | ) | 60,064 |
Amount withdrawn by directors | (10,478 | ) | - |
Warranty provision | 31,000 | - |
Equity dividends paid | (74,000 | ) | (286,548 | ) |
Net cash from financing activities | 29,867 | (393,582 | ) |
(Decrease)/increase in cash and cash equivalents | (2,042,316 | ) | 226,792 |
Cash and cash equivalents at beginning of year |
24 |
3,602,961 |
3,376,169 |
Cash and cash equivalents at end of year |
24 |
1,560,645 |
3,602,961 |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Notes to the Consolidated Financial Statements |
for the year ended 31 December 2023 |
1. | ACCOUNTING POLICIES |
General information and basis of preparing the financial statements |
The company is a private company, limited by shares, registered in England and Wales. The address of the registered office is Bennett Road, Isleport Business Park, Highbridge, Somerset, TA9 4PW. |
The financial statements are prepared in sterling, which is the functional currency of the entity, rounded to the nearest £. |
The nature of the group's operations and principal activities are the design, manufacture and installation of bespoke wooden orangeries, conservatories and extensions. |
Basis of consolidation |
The financial statements consolidate the financial statements of David Salisbury Group Holdings Ltd and its subsidiary undertaking David Salisbury Joinery Ltd. The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. Recognition occurs when there is an arrangement, primarily in the form of contract or purchase order, with the customer, a determining sales price is established with the customer, performance requirements are achieved and it is probable that economic benefits associated with the transaction will flow to the company. The policies adopted for the recognition of turnover are as follows: |
Contract costs |
In respect of long term contracts, turnover represents the value of work done in the period, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to stage of completion. |
Interest receivable |
Interest income is recognised using the effective interest method. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Freehold property is carried at valuation and other tangible fixed assets are measured at cost less accumulated depreciation and accumulated impairment losses. |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
1. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Stocks are measured at the lower of cost and estimated selling price. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. The cost formula used to value stock is first-in-first-out. |
Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. |
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability |
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. |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
1. | ACCOUNTING POLICIES - continued |
Construction contracts |
Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end. |
Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred. |
The entity uses the percentage of completion method to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments. |
Provisions |
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. |
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises. |
Financial instruments |
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. |
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Debt instruments are subsequently measured at amortised cost. |
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. |
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. |
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised |
Foreign currencies |
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account. |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
2. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future period where the revision affects both current and future periods. |
Critical Judgements |
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. |
Impairment of assets |
The tangible fixed assets are periodically reviewed for impairment by the directors based on their knowledge and judgements. |
Key sources of estimation uncertainty |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows; |
Revenue recognition - construction contracts |
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the statement of financial position date, measured primarily based on the proportion of contract costs incurred for work performed to date relative to the estimated total contract costs. Variations in contract work, claims and incentive payments are included to the extent that they have been agreed with the customer. |
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that is probable will be recovered. Contract costs are recognised as expenses in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately. |
Depreciation and amortisation |
The directors use their knowledge of the business and the industry to estimate the useful life and residual value of tangible assets in order to arrive at applicable deprecation and amortisation rates. In accordance with section 17 of FRS 102, the directors review and update these estimates if there are indicators that current estimates should change. |
It must be noted that there is inherent uncertainty within these estimates as factors such as unexpected wear and tear, technological advancement and changes in market prices may result in future changes to the appropriate rate of deprecation. |
Freehold property valuation |
The directors use their knowledge of the local area and the business and industry to estimate the freehold property valuation with interim professional valuations on a cyclical basis. |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Construction contracts | 14,399,185 | 16,665,106 |
14,399,185 | 16,665,106 |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 14,314,454 | 16,665,106 |
United States of America | 84,731 | - |
14,399,185 | 16,665,106 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 4,158,129 | 4,316,683 |
Social security costs | 422,636 | 431,754 |
Other pension costs | 155,453 | 137,012 |
4,736,218 | 4,885,449 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Production | 77 | 82 |
Administration | 10 | 10 |
Sales | 30 | 31 |
The average number of employees by undertakings that were proportionately consolidated during the year was 117 (2022 - 123 ) . |
2023 | 2022 |
£ | £ |
Director's remuneration | 382,301 | 524,284 |
Director's pension contributions to money purchase schemes | 11,645 | 10,810 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 64,502 | 9,031 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases | 66,804 | 33,796 |
Depreciation - owned assets | 341,988 | 312,238 |
Profit on disposal of fixed assets | (2,067 | ) | (4,109 | ) |
Website costs amortisation | 10,795 | 8,952 |
6. | AUDITORS' REMUNERATION |
2023 | 2022 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
21,222 |
19,322 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Hire purchase interest | 25,164 | 38,274 |
8. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | (41,573 | ) | 44,179 |
Taxation adjust for earlier |
years | 5 | 2,211 |
Total current tax | (41,568 | ) | 46,390 |
Deferred tax | (81,042 | ) | 142,668 |
Tax on profit | (122,610 | ) | 189,058 |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
8. | TAXATION - continued |
Reconciliation of total tax (credit)/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 | 58,824 | 1,171,491 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
14,706 |
222,583 |
Effects of: |
Expenses not deductible for tax purposes | 14,003 | 2,026 |
Capital allowances in excess of depreciation | (73,106 | ) | (20,331 | ) |
Utilisation of tax losses | 58,439 | - |
Adjustments to tax charge in respect of previous periods | 5 | - |
Deferred taxation adjustment | (81,042 | ) | 142,668 |
Effect of R & D claim | (59,353 | ) | (131,287 | ) |
Tax adjust re revaluations | - | (26,601 | ) |
Group tax adjustment | 3,738 | - |
Total tax (credit)/charge | (122,610 | ) | 189,058 |
9. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
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. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim | 1,000 | 286,548 |
A Ordinary shares of £1 each |
Interim | 73,000 | - |
74,000 | 286,548 |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Website |
costs |
£ |
COST |
At 1 January 2023 | 45,045 |
Additions | 1,635 |
At 31 December 2023 | 46,680 |
AMORTISATION |
At 1 January 2023 | 8,952 |
Amortisation for year | 10,795 |
At 31 December 2023 | 19,747 |
NET BOOK VALUE |
At 31 December 2023 | 26,933 |
At 31 December 2022 | 36,093 |
12. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2023 | 2,431,250 | 4,510,977 | 759,460 | 351,997 | 8,053,684 |
Additions | - | 442,780 | 12,918 | 119,911 | 575,609 |
Disposals | - | (3,070,169 | ) | (213,552 | ) | (52,851 | ) | (3,336,572 | ) |
At 31 December 2023 | 2,431,250 | 1,883,588 | 558,826 | 419,057 | 5,292,721 |
DEPRECIATION |
At 1 January 2023 | 56,250 | 3,030,907 | 654,544 | 203,682 | 3,945,383 |
Charge for year | 15,000 | 237,686 | 39,739 | 49,563 | 341,988 |
Eliminated on disposal | - | (3,068,308 | ) | (213,541 | ) | (36,874 | ) | (3,318,723 | ) |
At 31 December 2023 | 71,250 | 200,285 | 480,742 | 216,371 | 968,648 |
NET BOOK VALUE |
At 31 December 2023 | 2,360,000 | 1,683,303 | 78,084 | 202,686 | 4,324,073 |
At 31 December 2022 | 2,375,000 | 1,480,070 | 104,916 | 148,315 | 4,108,301 |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
12. | TANGIBLE FIXED ASSETS - continued |
Group |
Cost or valuation at 31 December 2023 is represented by: |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2019 | 195,000 | - | - | - | 195,000 |
Valuation in 2021 | 30,000 | - | - | - | 30,000 |
Valuation in 2022 | 140,000 | - | - | - | 140,000 |
Cost | 2,066,250 | 1,883,588 | 558,826 | 419,057 | 4,927,721 |
2,431,250 | 1,883,588 | 558,826 | 419,057 | 5,292,721 |
If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 2,066,250 | 2,066,250 |
Aggregate depreciation | 71,250 | 56,250 |
Finance leases and hire purchase contracts |
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements; |
Plant & Machinery |
Motor Vehicles |
Total |
As at 31 December 2023 | 1,003,744 | 56,572 | 1,060,316 |
As at 31 December 2022 | 984,653 | 35,423 | 1,020,076 |
Company |
Freehold |
property |
£ |
COST OR VALUATION |
At 1 January 2023 |
and 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
12. | TANGIBLE FIXED ASSETS - continued |
Company |
Cost or valuation at 31 December 2023 is represented by: |
Freehold |
property |
£ |
Valuation in 2019 | 195,000 |
Valuation in 2021 | 30,000 |
Valuation in 2022 | 140,000 |
Cost | 2,066,250 |
2,431,250 |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
under- |
takings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
David Salisbury Joinery Limited |
Registered office: Bennett Road, Isleport Business Park, Highbridge, Somerset, TA9 4PW |
Nature of business: Orangeries, conservatories & kitchens |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 877,475 | 1,399,744 |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
13. | FIXED ASSET INVESTMENTS - continued |
David Salisbury Kitchens Ltd |
Registered office: C/O David Salisbury Joinery, Bennett Road, Highbridge, Somerset, TA9 4PW |
Nature of business: Dormant company |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 1 | 1 |
David Salisbury Kitchens Ltd is excluded from the consolidation of group accounts on the basis that it is a dormant non-trading company and it is immaterial to the group. |
14. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Raw materials | 783,157 | 861,353 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Trade debtors | 9,044 | 6,228 |
Gross amounts due from |
customers for contract work | 704,390 | 536,294 |
Other debtors | 2,131 | 2,208 |
Directors' current accounts | 29,617 | - |
Tax | 41,626 | - |
Prepayments | 558,955 | 797,168 |
1,345,763 | 1,341,898 |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Hire purchase contracts (see note 18) | 125,549 | 111,959 |
Trade creditors | 764,537 | 1,096,658 |
Amounts owed to group undertakings | - | - |
Taxation | - | 44,179 |
Social security and other taxes | 106,015 | 117,892 |
VAT | 245,115 | 416,436 | 750 | 500 |
Other creditors | 43,892 | 57,449 |
Pension contributions | 23,762 | 23,546 | - | - |
Directors' current accounts | 5,203 | 60,064 | 5,203 | 60,064 |
Accruals and deferred income | 138,071 | 522,679 |
Gross amounts due to customers |
for contract work | 2,186,735 | 3,299,199 | - | - |
3,638,879 | 5,750,061 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 18) | 592,574 | 448,819 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase | contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 125,549 | 111,959 |
Between one and five years | 592,574 | 448,819 |
718,123 | 560,778 |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 40,699 | 66,640 |
Between one and five years | 10,208 | 35,176 |
50,907 | 101,816 |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts | 718,123 | 560,778 |
The liabilities are secured on the assets to which they relate. |
20. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 387,537 | 468,579 | 73,438 | 77,188 |
Other provisions | 70,000 | 39,000 | - | - |
Aggregate amounts | 457,537 | 507,579 | 73,438 | 77,188 |
Group |
Deferred |
tax | Warranties |
£ | £ |
Balance at 1 January 2023 | 468,579 | 39,000 |
Provided during year | (81,042 | ) | 31,000 |
Balance at 31 December 2023 | 387,537 | 70,000 |
Company |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Provided during year | ( |
) |
Balance at 31 December 2023 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 950 | 950 |
A Ordinary | £1 | 50 | 50 |
1,000 | 1,000 |
David Salisbury Group Holdings Limited (Registered number: 11655346) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
22. | RELATED PARTY TRANSACTIONS |
Dividends totalling £1,000 (2022 £148,000) were paid to key management personnel during the year and dividends totalling £73,000 (2022 £138,548) were paid to other related parties during the year. |
23. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 58,824 | 1,171,491 |
Depreciation charges | 352,783 | 321,189 |
Profit on disposal of fixed assets | (2,067 | ) | (4,109 | ) |
Gain on revaluation of fixed assets | - | (140,000 | ) |
Amounts due on construction contracts | (168,096 | ) | (164,071 | ) |
Finance costs | 25,164 | 38,274 |
Finance income | (48,678 | ) | (2,178 | ) |
217,930 | 1,220,596 |
Decrease/(increase) in stocks | 78,196 | (95,765 | ) |
Decrease in trade and other debtors | 235,474 | 334,247 |
Decrease in trade and other creditors | (2,025,732 | ) | (711,903 | ) |
Cash generated from operations | (1,494,132 | ) | 747,175 |
24. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 1,560,645 | 3,602,961 |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 3,602,961 | 3,376,169 |
25. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,602,961 | (2,042,316 | ) | 1,560,645 |
3,602,961 | (2,042,316 | ) | 1,560,645 |
Debt |
Finance leases | (560,778 | ) | (157,345 | ) | (718,123 | ) |
(560,778 | ) | (157,345 | ) | (718,123 | ) |
Total | 3,042,183 | (2,199,661 | ) | 842,522 |