Company registration number 02580238 (England and Wales)
SOUTH EASTERN CARPENTRY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SOUTH EASTERN CARPENTRY LIMITED
COMPANY INFORMATION
Directors
Mr Gary Dines
Miss Grace Dines
Mrs Petrina Hines
Mr Richard Shroll
(Appointed 1 November 2023)
Secretary
Mrs Petrina Hines
Company number
02580238
Registered office
Heritage House
Yalding Hill
Yalding
Kent
ME18 6AL
Auditor
Nash Harvey Audit Limited
The Granary
Hermitage Court
Hermitage Lane
Maidstone
Kent
ME16 9NT
Business address
Heritage House
Yalding Hill
Yalding
Kent
ME18 6AL
SOUTH EASTERN CARPENTRY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
10
Statement of cash flows
12
Notes to the financial statements
13 - 23
SOUTH EASTERN CARPENTRY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Fair Review of the Business

Established in 1985, South Eastern Carpentry is a specialist carpentry and joinery contractor and has grown through its reputation to provide a professional service, deliver a quality product and build strong client relationships. The company's growth is easily measured by the number of leading Main Contractors that we regularly work with today.

 

We undertake works on major construction projects across all sectors, our portfolio including government contracts, residential developments, hotels, leisure facilities, commercial, office fit outs, retail spaces, hospitals, schools and universities. We also specialise in heritage and conservation joinery works with project experience on a plethora of UK’s most historic buildings.

 

We provide a 360 service from preconstruction, design, manufacture, project delivery and a full post completion maintenance service.

Principal risks and uncertainties

Risks are regularly reviewed by management with actions implemented to minimise any adverse effects.

 

Principal risks currently faced are detailed below:

 

There has been a notable slowdown in the housing sector and private residential sector which has increased competition within the supply chain across all other sectors.

 

Materials prices have slowly decreased from the Pandemic period, and we have found that a competitive market for the orders is more evident. The benefit of this reduction is nt necessarily realised because of the inflation in fuel prices and general transport cost, i.e ulez

 

Project delays were also impacting the ability to predict a consistent Turnover for this year although this gave us a stronger starting position for 2024.

 

The Labour market is still affected by the war in Ukraine with a shortage of skilled workforce, we are monitoring and reviewing the requirements for the next coming year and feel confident that we are still in a strong labour position with limited impact on the current contracts, to counteract this and the emerging skill shortage in the industry SEC have increased our intake of apprentices and trainees

Liquidity risk is monitored daily with cashflow management which is further enhanced by a system of financial reporting and forecasting.

 

Credit risk is limited, Credit control works in partnership with our Commercial department to adhere to strict application and payment deadlines. Clients are carefully vetted and monitored with the use of Credit facilities to protect our trade suppliers and client base.

Development and performance

Turnover was again stable with some lost opportunity, with the reduction of some timber prices through the year we were able to achieve some betterment in other contracts.

The Directors were satisfied with the profitability for the year.

The Group strategy is to continue to increase the number of leading Main Contractors (Clients) that we contract with to widen our portfolio and manage our risk exposure. Our ability to work across multiple sectors enables us to secure our turnover in several different markets where spend is predominant focused in that period of time.

 

We already have a solid pre order book with Contacts secured into 2026 and a pipeline of opportunities which are all central to our strategy. We are continuing to provide planned and responsive maintenance as well as introducing maintenance contracts to our expanding Client database.

SOUTH EASTERN CARPENTRY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

General key performance indicators in the year were as follows:

 

 

 

 

 

Dec-23

Dec-22

Turnover

 

£24,218,562

£22,454,570

Operating Profit

 

£947,550

£1,440,290

Ave No of Employees

 

43

46

 

On behalf of the board

..............................
Mr Gary Dines
Director
Date: .............................................
SOUTH EASTERN CARPENTRY 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 principle activities of the company during the year were those of subcontract carpenters to the building trade.
Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £300,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr Gary Dines
Mr William Dines
(Resigned 30 July 2024)
Miss Grace Dines
Mrs Petrina Hines
Mr Richard Shroll
(Appointed 1 November 2023)
Auditor

Nash Harvey Audit Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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.

Strategic Report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of a fair review of the business, principle risks and uncertainties, future development and performance, stakeholder relationships and going concern.

Medium-sized companies exemption

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

On behalf of the board
Mr Gary Dines
Director
25 September 2024
SOUTH EASTERN CARPENTRY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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.

SOUTH EASTERN CARPENTRY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SOUTH EASTERN CARPENTRY LIMITED
- 5 -
Opinion

We have audited the financial statements of South Eastern Carpentry Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows 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:

SOUTH EASTERN CARPENTRY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SOUTH EASTERN CARPENTRY LIMITED (CONTINUED)
- 6 -
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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

SOUTH EASTERN CARPENTRY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SOUTH EASTERN CARPENTRY LIMITED (CONTINUED)
- 7 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

Audit response to risks identified

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

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.

Mrs Kate Sharp
Senior Statutory Auditor
For and on behalf of Nash Harvey Audit Limited
24 September 2024
Chartered Accountants
Statutory Auditor
The Granary
Hermitage Court
Hermitage Lane
Maidstone
Kent
ME16 9NT
SOUTH EASTERN CARPENTRY LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
24,218,563
22,154,571
Cost of sales
(20,940,014)
(18,458,539)
Gross profit
3,278,549
3,696,032
Administrative expenses
(2,379,368)
(2,289,742)
Other operating income
48,369
34,000
Operating profit
4
947,550
1,440,290
Interest receivable and similar income
8
23,002
1,295
Interest payable and similar expenses
9
(8,827)
-
0
Profit before taxation
961,725
1,441,585
Tax on profit
10
(197,021)
(216,349)
Profit for the financial year
764,704
1,225,236
Retained earnings brought forward
3,577,903
3,337,667
Dividends
11
(300,000)
(985,000)
Retained earnings carried forward
4,042,607
3,577,903

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SOUTH EASTERN CARPENTRY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
764,704
1,225,236
Other comprehensive income
-
-
Total comprehensive income for the year
764,704
1,225,236
SOUTH EASTERN CARPENTRY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
63,076
-
0
Current assets
Debtors
13
6,525,480
4,755,134
Cash at bank and in hand
1,789,330
1,471,547
8,314,810
6,226,681
Creditors: amounts falling due within one year
14
(4,295,044)
(2,648,776)
Net current assets
4,019,766
3,577,905
Total assets less current liabilities
4,082,842
3,577,905
Creditors: amounts falling due after more than one year
15
(40,233)
-
0
Net assets
4,042,609
3,577,905
Capital and reserves
Called up share capital
17
2
2
Profit and loss reserves
4,042,607
3,577,903
Total equity
4,042,609
3,577,905

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 25 September 2024 and are signed on its behalf by:
Mr Gary Dines
Director
Company registration number 02580238 (England and Wales)
SOUTH EASTERN CARPENTRY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
2
3,337,667
3,337,669
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,225,236
1,225,236
Dividends
11
-
(985,000)
(985,000)
Balance at 31 December 2022
2
3,577,903
3,577,905
Year ended 31 December 2023:
Profit and total comprehensive income
-
764,704
764,704
Dividends
11
-
(300,000)
(300,000)
Balance at 31 December 2023
2
4,042,607
4,042,609
SOUTH EASTERN CARPENTRY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
834,946
1,478,888
Interest paid
(8,827)
-
0
Income taxes paid
(192,049)
(220,168)
Net cash inflow from operating activities
634,070
1,258,720
Investing activities
Purchase of tangible fixed assets
(82,995)
-
0
Interest received
23,002
1,295
Net cash (used in)/generated from investing activities
(59,993)
1,295
Financing activities
Payment of finance leases obligations
43,706
-
0
Dividends paid
(300,000)
(985,000)
Net cash used in financing activities
(256,294)
(985,000)
Net increase in cash and cash equivalents
317,783
275,015
Cash and cash equivalents at beginning of year
1,471,547
1,196,532
Cash and cash equivalents at end of year
1,789,330
1,471,547
SOUTH EASTERN CARPENTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

South Eastern Carpentry Limited is a private company limited by shares incorporated in England and Wales. The registered office is Heritage House, Yalding Hill, Yalding, Kent, ME18 6AL.

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 £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Tangible fixed assets

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

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

Motor vehicles
20% 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.

SOUTH EASTERN CARPENTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.5
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.

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.

1.6
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 reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

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.

SOUTH EASTERN CARPENTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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 balance sheet 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.

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.

SOUTH EASTERN CARPENTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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.

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 profit and loss account 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.

SOUTH EASTERN CARPENTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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 profit and loss account, 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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

SOUTH EASTERN CARPENTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
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.

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.

Tangible Fixed Assets (see note 12)

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation are taken into account.

Construction Contracts

The company derives its revenue primarily from long-term construction contracts. This requires judgement to be applied and where actual results differ to the estimates made, the Company's financial results may be subject to impact.

Key judgements involve the assessment of the contract's stage of completion at the balance sheet date, a determination based on forecasted total costs. Additionally, the identification and provisioning for remedial works constitute crucial judgment points. Valuations are conducted monthly at the various project sites to monitor the progress.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Construction contracts
24,218,563
22,154,571
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
24,218,563
22,154,571
2023
2022
£
£
Other revenue
Interest income
23,002
1,295
Rental income
48,369
34,000
SOUTH EASTERN CARPENTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
5,500
5,500
Depreciation of owned tangible fixed assets
19,919
-
Operating lease charges
97,013
114,103
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
5,500
5,500
6
Employees

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

2023
2022
Number
Number
Direct
15
17
Overhead
28
29
Total
43
46

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,281,912
2,520,914
Social security costs
271,660
286,884
Pension costs
22,008
38,943
2,575,580
2,846,741
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
140,648
92,910
Company pension contributions to defined contribution schemes
1,431
1,321
142,079
94,231
SOUTH EASTERN CARPENTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Directors' remuneration
(Continued)
- 20 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 1).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
23,002
1,295
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
23,002
1,295
9
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
8,384
-
Other interest
443
-
0
8,827
-
0
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
203,146
203,930
Adjustments in respect of prior periods
(6,125)
12,419
Total current tax
197,021
216,349

Changes in tax rate

 

Changes to the UK corporation tax rates were substantively enacted as part of the Finance Act 2021.

These include an increase in the corporation tax rate from 19% to 25% with effect from 1 April 2023.

Deferred taxes at the balance sheet date have been measured using these enacted tax rates and

reflected in these financial statements.

 

For the financial year ended 31 December 2023, the current weighted average tax rate was 23.52%.

 

SOUTH EASTERN CARPENTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 21 -

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

2023
2022
£
£
Profit before taxation
961,725
1,441,585
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
226,198
273,901
Tax effect of expenses that are not deductible in determining taxable profit
20,358
5,911
Group relief
(44,581)
-
0
Permanent capital allowances in excess of depreciation
(3,514)
-
0
Depreciation on assets not qualifying for tax allowances
4,685
-
0
Research and development tax credit
-
0
(75,882)
Under/(over) provided in prior years
(6,125)
12,419
Taxation charge for the year
197,021
216,349
11
Dividends
2023
2022
£
£
Final paid
300,000
985,000
12
Tangible fixed assets
Motor vehicles
£
Cost
At 1 January 2023
-
0
Additions
82,995
At 31 December 2023
82,995
Depreciation and impairment
At 1 January 2023
-
0
Depreciation charged in the year
19,919
At 31 December 2023
19,919
Carrying amount
At 31 December 2023
63,076
At 31 December 2022
-
0
SOUTH EASTERN CARPENTRY 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
2,073,597
381,570
Gross amounts owed by contract customers
3,045,500
4,154,181
Amounts owed by group undertakings
927,714
10,067
Other debtors
428,710
178,130
Prepayments and accrued income
49,959
31,186
6,525,480
4,755,134
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
3,473
-
0
Trade creditors
2,130,295
1,996,112
Corporation tax
222,837
217,865
Other taxation and social security
163,066
132,215
Other creditors
8,438
20,283
Accruals and deferred income
1,766,935
282,301
4,295,044
2,648,776
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
40,233
-
0
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
22,008
38,943

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.

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
SOUTH EASTERN CARPENTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
18
Related party transactions

The company has taken advantage of the exemption available in accordance with FRS 102 'Related party disclosures' not to disclose transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.

19
Ultimate controlling party

The immediate parent company is Goldline Associates Limited, a company registered in the United Kingdom. The ultimate parent company is Goldline Associates Limited a company registered in the United Kingdom and controlled by Mr Gary Dines and Mrs Gaynor Dines by virtue of majority shareholding. Goldline Associates Limited prepares group financial statements and copies can be obtained from The Granary, Hermitage Court, Hermitage Lane, Maidstone, Kent, ME16 9NT.

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