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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: D Salisbury





SECRETARY: C A Salisbury





REGISTERED OFFICE: Bennett Road
Isleport Business Park
Highbridge
Somerset
TA9 4PW





REGISTERED NUMBER: 11655346 (England and Wales)





AUDITORS: Webb & Co Ltd
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:





D Salisbury - Director


3 June 2024

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
D Salisbury held office during the whole of the period from 1 January 2023 to the date of this report.

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:





D Salisbury - Director


3 June 2024

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.




Barry Davidson FCA FCCA (Senior Statutory Auditor)
for and on behalf of Webb & Co Ltd
Accountants and Business Advisers
& Statutory Auditor
One New Street
Wells
Somerset
BA5 2LA

3 June 2024

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 181,434 982,433

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 2,360,000 2,375,000
Investments 13 1,000 1,000
2,361,000 2,376,000

CURRENT ASSETS
Cash at bank 289,799 159,991

CREDITORS
Amounts falling due within one year 16 102,253 613,397
NET CURRENT ASSETS/(LIABILITIES) 187,546 (453,406 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,548,546

1,922,594

PROVISIONS FOR LIABILITIES 20 73,438 77,188
NET ASSETS 2,475,108 1,845,406

CAPITAL AND RESERVES
Called up share capital 21 1,000 1,000
Fair value reserve 287,812 287,812
Retained earnings 2,186,296 1,556,594
SHAREHOLDERS' FUNDS 2,475,108 1,845,406

Company's profit for the financial year 703,702 693,836

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)

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 1,000 1,247,031 190,087 1,438,118

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 - 693,836 - 693,836
Balance at 31 December 2022 1,000 1,556,594 287,812 1,845,406

Changes in equity
Dividends - (74,000 ) - (74,000 )
Total comprehensive income - 703,702 - 703,702
Balance at 31 December 2023 1,000 2,186,296 287,812 2,475,108

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
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 as modified by the revaluation of certain assets.

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.

Website costs are being amortised evenly over their estimated useful life of three years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Freehold property - Land 0%, Buildings over 50 years
Plant and machinery - 25% on reducing balance and 3 - 10 years straight line
Fixtures and fittings - 1 - 10 years straight line
Motor vehicles - 25% on reducing balance

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
117 123

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 2,431,250
DEPRECIATION
At 1 January 2023 56,250
Charge for year 15,000
At 31 December 2023 71,250
NET BOOK VALUE
At 31 December 2023 2,360,000
At 31 December 2022 2,375,000

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 1,000
NET BOOK VALUE
At 31 December 2023 1,000
At 31 December 2022 1,000

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 - 1,500
Amounts owed to group undertakings - - 96,300 548,727
Taxation - 44,179 - 2,606
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 5,750,061 102,253 613,397

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 77,188
Provided during year (3,750 )
Balance at 31 December 2023 73,438

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
950 Ordinary £1 950 950
50 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