Company registration number 01621424 (England and Wales)
SEH FRENCH LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SEH FRENCH LIMITED
COMPANY INFORMATION
Directors
Mr R W Neall
Mr S Girling
Mr P Rodwell
Secretary
Mr T Dixon
Company number
01621424
Registered office
30 White House Road
Ipswich
IP1 5LT
Auditor
Ensors Accountants LLP
Connexions
159 Princes Street
Ipswich
IP1 1QJ
SEH FRENCH LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Income statement
9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 25
SEH FRENCH LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

The SEH French directors would firstly like to acknowledge the hard work and commitment from our most important asset, our people. The board would like to thank them for their continued professionalism, hard work, and loyalty throughout the recent challenging economic times.

 

The attached accounts highlight turnover decreased 35.16% from £12.94 million in 2022 to £8.39 million in 2023. This decrease is due to reduced workload being secured in the period. A strategic decision was made in mid-2022 to the first quarter of 2023 to manage the risk levels associated with unprecedented price increases and extremely volatile market to protect the company from having to absorb such increases and having no recourse with fixed price contracts.

 

The business reported an operating loss of £280k in 2023 (2022 - profit of £204k). It is a disappointing result but expected due to the low turnover and the fact we maintained staff levels, to plan for the future re-growth in more suitable economic times from the second quarter of 2023.

 

The company continues to maintain a strong cash position with the year-end cash at £1.1m (2022 - £1.8m). The year on year decrease however, reflects the revenue expended by the self-funded residential scheme at The drift, Ipswich. The directors are pleased to once again report no particular issues have arisen in the year with regards collection of debtor balances.

 

SEH French Limited has continued to invest in the business, with the vital retention and development of key staff.

Principal risks and uncertainties

As a construction company the business is naturally subject to a number of commercial and non-commercial risks. The directors are acutely aware of these risks and therefore proactively manages performance on a daily basis.

 

Any changes in risk levels are identified early and actions taken to mitigate the company’s exposure.

 

Ongoing reviews identify the following key areas of potential risk and the company strategy to mitigate these risks:

 

The safety of our stakeholders, employees and supply chain is paramount. All sites are managed by suitably qualified staff and have regular detailed and robust safety inspections.

 

The ever changing availability of some products and materials, coupled with price volatility, provides an operational and financial risk to the business as well as the immediate supply chain, the wider market and industries beyond.

 

The directors are confident that the organisation is able to efficiently manage the supply chain issues. The availability and cost of materials and resources are continually monitored, and the procurement programmed accordingly, to meet our contractual obligations.

 

All contracts are monitored on a monthly basis to review financial performance and contractual positions, with more in-depth reviews undertaken quarterly.

To provide knowledge of the market, the pipeline of work and potential work in all sectors and for all clients is established and monitored on a regular basis.

 

SEH FRENCH LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

 

 

 

 

Key performance indicators

Turnover decreased to £8.39m (2022 - £12.9m) and with an operating loss of £280k (2022-Profit of £204k) which indicates the turnover was too low in relation to the fixed costs, which remained at similar levels to 2022, to plan for future growth.

Other information and explanations

 

Key performance indicators

At the forefront of this is a healthy and safe working environment, which remains of paramount importance to the directors. The company reported one RIDDOR in the year, which was a minor injury, caused by dust in an eye. The organisation’s structured and robust Quality, Safety and Environmental team, continues to manage all health and safety matters extremely well. There were no environmental incidents in 2023, which follows on from no reportable incidents in 2022.

Customer evaluation feedback for satisfaction averaged 4.32 out of 5, for all project returns in 2023.

Future developments

The outlook for 2024 is extremely positive with over £25m value of work secured for 2024 and beyond.

The strategic decision to be cautious and risk averse in securing new work in the volatile and difficult marketplace in mid-2022 and early 2023, has protected the company from long term significant financial risk. It has also maneuvered the company, with our retained staff, to be in a strong position to secure larger scale projects in a better performing marketplace, with supply chain volatility reducing and margins increasing.

 

On behalf of the board

Mr R W Neall
Director
23 September 2024
SEH FRENCH LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The company's principal activities during the year were that of a regional main contractor / principal contractor, competing predominately within the private and public commercial building sectors.

Results and dividends

The loss for the year, after taxation, amounted to £207,665 (2022 - profit of £171,025).

 

The directors have declared a dividend of £nil (2022 - £250,000).

 

Going concern

The company is part of the group headed by One Group Construction Limited. The going concern assessment of the company has been evaluated on the group as a whole, rather than on an individual company basis, refer to note 1.2.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr R W Neall
Mr S Girling
Mr P Rodwell

Financial instruments

 

The company does not actively use financial instruments as part of its financial risk management. It is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through credit control procedures.

The company's policy is to finance working capital through retained earnings.

The directors do not consider any other risks attaching to the use of financial instruments to be material to an assessment of the company's financial position or profit.

 

Strategic report

 

The directors have included a business review within the strategic report. Also included in the strategic report are details of the future developments of the company, the principal risks and uncertainties and a review of the key performance indicators as assessed by the directors.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

SEH FRENCH LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
Mr R W Neall
Director
23 September 2024
SEH FRENCH LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SEH FRENCH LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SEH FRENCH LIMITED
- 6 -
Opinion

We have audited the financial statements of SEH French Limited (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

SEH FRENCH LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SEH FRENCH LIMITED (CONTINUED)
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

 

 

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

SEH FRENCH LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SEH FRENCH LIMITED (CONTINUED)
- 8 -

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 an auditor's report 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.

Malcolm McGready
Senior Statutory Auditor
For and on behalf of Ensors Accountants LLP
24 September 2024
Chartered Accountants
Statutory Auditor
Connexions
159 Princes Street
Ipswich
IP1 1QJ
SEH FRENCH LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
8,390,519
12,941,286
Cost of sales
(7,086,144)
(11,307,193)
Gross profit
1,304,375
1,634,093
Administrative expenses
(1,605,843)
(1,451,718)
Other operating income
21,648
21,648
Operating (loss)/profit
4
(279,820)
204,023
Interest receivable and similar income
7
2,933
7,801
(Loss)/profit before taxation
(276,887)
211,824
Tax on (loss)/profit
8
67,244
(40,799)
(Loss)/profit for the financial year
(209,643)
171,025

The income statement has been prepared on the basis that all operations are continuing operations.

SEH FRENCH LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
£
£
(Loss)/profit for the year
(209,643)
171,025
Other comprehensive income
-
-
Total comprehensive income for the year
(209,643)
171,025
SEH FRENCH LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
99,753
125,207
Investments
11
1
1
99,754
125,208
Current assets
Debtors falling due after more than one year
13
194,108
169,235
Debtors falling due within one year
13
1,714,998
2,087,659
Cash at bank and in hand
1,099,775
1,813,036
3,008,881
4,069,930
Creditors: amounts falling due within one year
14
(2,528,016)
(3,391,067)
Net current assets
480,865
678,863
Total assets less current liabilities
580,619
804,071
Creditors: amounts falling due after more than one year
15
(75,189)
(78,948)
Provisions for liabilities
Deferred tax liability
16
-
0
10,050
-
(10,050)
Net assets
505,430
715,073
Capital and reserves
Called up share capital
18
1,100
1,100
Share premium account
66,849
66,849
Profit and loss reserves
437,481
647,124
Total equity
505,430
715,073

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 23 September 2024 and are signed on its behalf by:
Mr R W Neall
Director
Company registration number 01621424 (England and Wales)
SEH FRENCH LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
1,100
66,849
726,099
794,048
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
171,025
171,025
Dividends
9
-
-
(250,000)
(250,000)
Balance at 31 December 2022
1,100
66,849
647,124
715,073
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
(209,643)
(209,643)
Balance at 31 December 2023
1,100
66,849
437,481
505,430
SEH FRENCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

SEH French Limited is a private company limited by shares incorporated in England and Wales. The registered office is 30 White House Road, Ipswich, IP1 5LT.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

he following principal accounting policies have been applied:

 

Exemption from preparing consolidated financial statements

 

The company is itself a subsidiary company and is exempt from the requirement to prepare group accounts by virtue of section 400 of the Companies Act 2006. These financial statements therefore present information about the company as an individual undertaking and not about its group.

Financial Reporting Standard 102 - reduced disclosure exemptions

 

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

 

 

This information is included in the consolidated financial statements of One Group Construction Limited as at 31 December 2022 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ

1.2
Going concern

The Company is part of the group headed by One Group Construction Limited. Detailed forecasts of the Company and Group for a period of at least 12 months from the approval of these financial statements have been considered. Taking into account the current economic climate and reasonably possible downsides, the directors have a reasonable expectation that the Company and the Group has sufficient resources to meet their obligations as they fall due and continue in operational existence for the foreseeable future.true

 

Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

SEH FRENCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.3
Turnover

Turnover consists of income derived from long term contracts on housing and commercial developments.

 

All housing and commercial developments are treated as long term due to the length of the contracts and the level of income they derive. Turnover for such contracts is stated at cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous periods. Provision is made for any losses which are foreseen. Turnover is recognised when applications for payment are raised following the completion of stages of the contract. Applications for stage payments are issued on a monthly basis and are net of value added tax, where appropriate, and trade discounts. Where profit shares are linked to the sale of new build properties, profits above the normal level of contracting margin are recognised on receipt of the profit share element.

 

Interest income is recognised in the statement of comprehensive income using the effective interest method.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Plant and machinery
20 to 50% straight line
Fixtures and fittings
20 to 50% straight line
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

SEH FRENCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

SEH FRENCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

SEH FRENCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

SEH FRENCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.14

Long-term contracts

Amounts recoverable on contracts are included in debtors and represent turnover recognised in excess of payments received from clients. Payments received from clients in excess of the turnover recognised are included within payments on account in creditors. Amounts included within work in progress represent costs incurred on contracts in their initial stages as at the year end for which no application for payment has been made.

 

Debtors

Short term debtors are measured at transaction price, less any impairment.

1.15

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2
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 periods where the revision affects both current and future periods.

 

Contract accounting (see note 13)

The company applies its policies on turnover and contracts when recognising revenue and profit on partially completed contract. The application of this policy requires judgements to be in respect of the total expected costs to complete and the profit margin achievable on each contract. The company has in place established internal control processes to ensure that the evaluation of costs and revenues is based upon appropriate estimates.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Turnover from contracts work
8,390,519
12,941,286
2023
2022
£
£
Other revenue
Interest income
2,933
7,801
SEH FRENCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
34,770
28,900
Depreciation of owned tangible fixed assets
43,357
40,536
Profit on disposal of tangible fixed assets
(8,166)
(680)
Operating lease charges
55,672
38,170
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Directors
2
2
Indirect
12
15
Direct
20
19
Total
34
36

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,402,432
1,513,515
Social security costs
153,090
196,100
Pension costs
168,856
151,504
1,724,378
1,861,119
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
159,069
177,550
Company pension contributions to defined contribution schemes
47,553
22,339
206,622
199,889

During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.

SEH FRENCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest receivable from group companies
2,933
7,801
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
19,000
Other tax reliefs
-
0
11,371
Total current tax
-
0
30,371
Deferred tax
Origination and reversal of timing differences
(67,244)
10,428
Total tax (credit)/charge
(67,244)
40,799

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(276,887)
211,824
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(65,124)
40,247
Tax effect of expenses that are not deductible in determining taxable profit
870
-
0
Change in unrecognised deferred tax assets
(3,980)
2,503
Group relief
-
0
(11,371)
Permanent capital allowances in excess of depreciation
-
0
1,311
Depreciation on assets not qualifying for tax allowances
-
0
(3,262)
Other permanent differences
990
11,371
Taxation (credit)/charge for the year
(67,244)
40,799
9
Dividends
2023
2022
£
£
Final paid
-
0
250,000
SEH FRENCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
10
Tangible fixed assets
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
6,278
30,454
255,715
292,447
Additions
3,568
-
0
21,469
25,037
Disposals
-
0
-
0
(36,869)
(36,869)
At 31 December 2023
9,846
30,454
240,315
280,615
Depreciation and impairment
At 1 January 2023
2,523
25,991
138,726
167,240
Depreciation charged in the year
1,297
3,106
38,954
43,357
Eliminated in respect of disposals
-
0
-
0
(29,735)
(29,735)
At 31 December 2023
3,820
29,097
147,945
180,862
Carrying amount
At 31 December 2023
6,026
1,357
92,370
99,753
At 31 December 2022
3,755
4,463
116,989
125,207
11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
1
1
12
Subsidiaries
Name of undertaking
Address
Class of
% Held
shares held
Direct
Anglia Joinery Limited
30 White House Road Ipswich, Suffolk IP1 5LT
Ordinary
100.00

Anglia Joinery Limited was dormant during the period ended 31 December 2023

SEH FRENCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
165,999
292,729
Gross amounts owed by contract customers
915,561
1,453,047
Amounts owed by group undertakings
600,710
290,271
Other debtors
32,728
51,612
1,714,998
2,087,659
2023
2022
Amounts falling due after more than one year:
£
£
Gross amounts owed by contract customers
136,914
169,235
Deferred tax asset (note 16)
57,194
-
0
194,108
169,235
Total debtors
1,909,106
2,256,894

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

Amounts recoverable on long term contracts consists of balances outstanding for periods up to two years. Swift resolution of amounts recoverable on contracts occurs when contractual issues are simple and agreed by all parties. Long protracted resolutions occur when contractual disagreement arises on complex interpretation to additional works carried out, or additional costs incurred, and the relevant liability of all the various parties to the contract for these additional costs. Resolution occurs through a combination of negotiation, adjudication and legal action.

14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
2,336,923
2,622,998
Amounts owed to group undertakings
67,428
575,999
Corporation tax
-
0
30,371
Other taxation and social security
77,943
68,654
Other creditors
45,722
93,045
2,528,016
3,391,067

Amounts owed to group undertakings are unsecured, interest free and repayable on demand

15
Creditors: amounts falling due after more than one year
2023
2022
£
£
Trade creditors
75,189
78,948
SEH FRENCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Accelerated capital allowances
-
10,050
57,194
-
2023
Movements in the year:
£
Liability at 1 January 2023
10,050
Credit to profit or loss
(67,244)
Asset at 31 December 2023
(57,194)

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
168,856
151,504

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Included within other creditors is £13,458 (2022 - £11,373) relating to outstanding pension contributions.

18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Shares of £1 each of £1 each
1,000
1,000
1,000
1,000
Ordinary B Shares of £1 each of £1 each
100
100
100
100
1,100
1,100
1,100
1,100

In the event of winding up of the company, the ordinary 'A' shares have first rights for repayment of up to £350,000 in proportion to the number of 'A' shares held. Thereafter, the remaining assets of the company will be distributed as follows; 90% to the holders of 'A' shares and 10% to the holders of 'B' shares.

SEH FRENCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
19
Reserves

The company's reserves are as follows:

 

Called up share capital

 

Called up share capital represents the nominal value of the shares issued.

 

Share premium account

 

The share premium account includes the premium on issue of equity shares, net of any issue costs. Profit and loss account

 

The profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.

20
Financial commitments, guarantees and contingent liabilities

There is a contingent liability in respect of guarantees given by the company, in common with fellow subsidiaries, to its bankers for a loan and overdraft facilities granted to the ultimate parent company, One Group Construction Limited and its subsidiaries. The debt is further secured by legal charge over the property owned by the group.

 

At the year end other companies had gross overdrafts amounting to £11,940,789 (2022 - £11.442.982). The group has as right of set off between overdrafts and current account balances. At the year end other group companies had current account balances totalling £31,272,704 (2022 - £29,383,602) fully offsetting the gross overdraft balances when combined with the current account balance of the individual company.

 

21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
79,993
78,575
Between two and five years
128,677
98,034
208,670
176,609
22
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
One Group Construction Limited
-
-
183,291
170,401
Fellow subsidiaries
672,038
279,680
368,763
618,213
SEH FRENCH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Related party transactions
(Continued)
- 25 -

During the year management charges of £87,053 (2022 - £84,389) were paid to SEH (Property and Administration) Limited, a fellow group subsidiary.

 

During the year management charges of £21,648 (2022 - £21,648 ) were received from Sandlings Properties Limited, a fellow group subsidiary.

 

During the year interest of £2,933 (2022 - £6,024) was received from SEH (Property and Administration) Limited, a fellow group subsidiary.

 

During the year rent and other recharged expenses of £46,872 (2022 - £46,872) were paid to Jackson Civil Engineering Group Limited.

 

During the year recharges of £3,886 (2022 - £366,691) were incurred on behalf of Sandlings Properties Limited

 

During the year the company proposed dividends amounting to £nil(2022 - £250,000). Of these dividends £nil (2022 - £200,000) is payable to SEH Group Limited, the parent company and £nil(2022 - £25,000) is payable to S D Girling and £nil(2022 - £25,000) to P Rodwell, directors of the company.

2023
2022
Amounts due to related parties
£
£
Fellow subsidiaries
67,428
575,999

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Fellow subsidiaries
600,710
290,271
23
Ultimate controlling party

The company is controlled by SEH Group Limited. The ultimate controlling party is One Group Construction Limited. The only group for which the results of the company are consolidated is that headed by One Group Construction Limited, the company's ultimate parent undertaking, which is registered in England and Wales. Copies of the consolidated financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ. The registered office of One Group Construction Limited is 30 White House Road, Ipswich, Suffolk, IP1 5LT.

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