Company registration number 02048625 (England and Wales)
DALE BUILDING MAINTENANCE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
DALE BUILDING MAINTENANCE LIMITED
COMPANY INFORMATION
DIRECTORS
James Porch
Kevin Preston
Iwan Davies
Jonathan Davies
COMPANY NUMBER
02048625
REGISTERED OFFICE
Halden House
Cardiff Road , Glan Y Llyn
Taffs Well
Cardiff
CF15 7QD
AUDITOR
Kilsby & Williams LLP
Cedar House
Hazell Drive
Newport
Gwent
NP10 8FY
DALE BUILDING MAINTENANCE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12 - 13
Statement of changes in equity
14
Notes to the financial statements
15 - 29
DALE BUILDING MAINTENANCE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

PRINCIPAL ACTIVITIES

The principal activity of the company continued to be that of:

 

- Reactive Facilities Maintenance

- Minor work & Refurbishment

- Insurance Restoration Services

REVIEW OF THE BUSINESS

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

RESULTS, PERFORMANCE AND BUSINESS ENVIRONMENT
The trading results for the period are summarised as follows:
£
£
Year Ended
Year Ended
31 December
31 December
2023
2022
Turnover
15,295,740
12,854,131
Gross margin
4,429,181
28.96%
3,400,761
26.50%
Operating profit
1,501,682
9.82%
854,861
6.70%
Key Performance Indicators (KPI's)
The Company's key financial performance indicators are -
Turnover per employee
136,569
122,420
Net profit per employee
10,085
8,084
Strategy
Dale Building Maintenance Ltd are committed to delivering exceptional property maintenance services across South Wales and the South West of England. With over 38 years of experience as a family-run business, we pride ourselves on our deep-rooted values of trust, reliability, quality and openness to enhance shareholder value.
Our strategy is to continue building long-term relationships with our clients by providing tailored solutions that meet their unique needs, ensuring high standards of safety and compliance in every project we undertake. We aim to expand our service offerings while maintaining the personalized touch that has been the cornerstone of our business for decades.
The expertise, commitment and support of the company employees is central to our success. We would like to thank all of our colleagues for their hard work to help deliver these results.
Our Mission
Our vision is to be the preferred maintenance partner for both residential and commercial properties in our region, known for our unwavering commitment to quality, integrity, and customer satisfaction.
DALE BUILDING MAINTENANCE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
We are dedicated to investing in our skilled workforce, embracing sustainable practices, and leveraging the latest technologies to enhance our efficiency and responsiveness. As we grow, our focus remains on preserving our reputation for excellence, fostering a positive work environment, and contributing to the communities we serve.
Objectives
-  To  add  value  to  our  customers  and  exceed  their  expectations  through  the  excellent  delivery  of  our service.
- To help create an integrated team that is customer focused and works proactively together.
- To ensure that Dale Building Maintenance is our customers first choice when considering the development of a long term relationship.
- To work in partnership with our clients in pursuit of excellence.
- To ensure we comply with all statutory requirements.
- To achieve the highest standards in service delivery, with a responsibility of ownership.
- To continually train our workforce at all levels to the highest possible standard.
- To ensure our customer charter is adhered to at all times.
PRINCIPAL RISKS & UNCERTAINTIES

The company has maintained its position as one of the leading property maintenance companies operating in South Wales and the West of England. It has been a challenge to maintain gross margins during the year especially with labour and fuel costs increasing substantially.

 

Recruiting management staff and skilled labour continues to be a major issue for the business. This has affected the growth of the company during the year but the senior management team are confident that skilled labour will become more readily available in the coming year.

 

Credit risk - The company has well established policies and procedures that require appropriate credit checks on potential customers before contracts and services are provided. The amount of exposure to any individual customer is subject to a limit that is reassessed by the company on a regular basis.

FUTURE DEVELOPMENTS
The two new Directors, who were long term employees of the company, have settled into their new roles and it is anticipated that further senior appointments will be made in the near future.
The development of a new Fire Safety department is underway which will open a new avenue of work in new sectors for the business.

On behalf of the board

Iwan Davies
Director
25 September 2024
DALE BUILDING MAINTENANCE 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 principal activity of the company continued to be that of:

 

- Reactive Facilities Maintenance

- Minor work & Refurbishment

- Insurance Restoration Services

RESULTS AND DIVIDENDS

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £790,600. 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:

James Porch
Kevin Preston
Iwan Davies
Jonathan Davies
Jeff Price
(Resigned 31 January 2023)
STATEMENT OF DIRECTORS' RESPONSIBILITIES

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.

DALE BUILDING MAINTENANCE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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.

On behalf of the board
Iwan Davies
DIRECTOR
25 September 2024
DALE BUILDING MAINTENANCE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DALE BUILDING MAINTENANCE LIMITED
- 5 -
Opinion

We have audited the financial statements of Dale Building Maintenance Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, 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.

DALE BUILDING MAINTENANCE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DALE BUILDING MAINTENANCE LIMITED (CONTINUED)
- 6 -

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:

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:

DALE BUILDING MAINTENANCE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DALE BUILDING MAINTENANCE LIMITED (CONTINUED)
- 7 -
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.

DALE BUILDING MAINTENANCE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DALE BUILDING MAINTENANCE LIMITED (CONTINUED)
- 8 -

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

 

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

 

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

 

DALE BUILDING MAINTENANCE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DALE BUILDING MAINTENANCE LIMITED (CONTINUED)
- 9 -

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

Jonathan Harrhy
Senior Statutory Auditor
For and on behalf of
Kilsby & Williams LLP
Chartered accountants & statutory auditor
Cedar House
Hazell Drive
Newport
Gwent
NP10 8FY
25 September 2024
DALE BUILDING MAINTENANCE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
TURNOVER
3
15,295,740
12,854,131
Cost of sales
(10,871,959)
(9,453,370)
GROSS PROFIT
4,423,781
3,400,761
Administrative expenses
(2,935,870)
(2,545,900)
Other operating income
8,771
-
0
OPERATING PROFIT
4
1,496,682
854,861
Interest receivable and similar income
7
7,106
4,324
Interest payable and similar expenses
8
(20,337)
(15,373)
PROFIT BEFORE TAXATION
1,483,451
843,812
Tax on profit
9
(359,112)
(147,525)
PROFIT FOR THE FINANCIAL YEAR
1,124,339
696,287

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

DALE BUILDING MAINTENANCE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
£
£
PROFIT FOR THE YEAR
1,124,339
696,287
OTHER COMPREHENSIVE INCOME
-
-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
1,124,339
696,287
DALE BUILDING MAINTENANCE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
FIXED ASSETS
Tangible assets
11
883,405
863,976
Investments
12
2
2
883,407
863,978
CURRENT ASSETS
Debtors
14
4,289,377
3,396,884
Cash at bank and in hand
1,640,775
1,532,503
5,930,152
4,929,387
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
15
(2,539,120)
(1,860,058)
NET CURRENT ASSETS
3,391,032
3,069,329
TOTAL ASSETS LESS CURRENT LIABILITIES
4,274,439
3,933,307
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
16
(339,126)
(348,181)
PROVISIONS FOR LIABILITIES
Provisions
18
(96,000)
(86,000)
Deferred tax liability
19
(103,289)
(96,841)
NET ASSETS
3,736,024
3,402,285
CAPITAL AND RESERVES
Called up share capital
21
10,000
10,000
Profit and loss reserves
3,726,024
3,392,285
TOTAL EQUITY
3,736,024
3,402,285

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

DALE BUILDING MAINTENANCE LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 13 -
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:
Iwan Davies
Director
Company registration number 02048625 (England and Wales)
DALE BUILDING MAINTENANCE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
BALANCE AT 1 JANUARY 2022
10,000
2,943,198
2,953,198
YEAR ENDED 31 DECEMBER 2022:
Profit and total comprehensive income
-
696,287
696,287
Dividends
10
-
(247,200)
(247,200)
BALANCE AT 31 DECEMBER 2022
10,000
3,392,285
3,402,285
YEAR ENDED 31 DECEMBER 2023:
Profit and total comprehensive income
-
1,124,339
1,124,339
Dividends
10
-
(790,600)
(790,600)
BALANCE AT 31 DECEMBER 2023
10,000
3,726,024
3,736,024
DALE BUILDING MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
ACCOUNTING POLICIES
Company information

Dale Building Maintenance Limited is a private company limited by shares incorporated in England and Wales. The registered office is Halden House, Cardiff Road , Glan Y Llyn, Taffs Well, Cardiff, CF15 7QD.

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. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Dale Services Group Limited. These consolidated financial statements are available from its registered office, Halden House Cardiff Road, Glan-Y-Llyn, Cardiff, United Kingdom, CF15 7QD.

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
DALE BUILDING MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
ACCOUNTING POLICIES
(Continued)
- 16 -

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:

Freehold land and buildings
2% straight line
Plant and equipment
25% & 33% straight line
Motor vehicles
25% straight line

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.

DALE BUILDING MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
ACCOUNTING POLICIES
(Continued)
- 17 -

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 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.

DALE BUILDING MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
ACCOUNTING POLICIES
(Continued)
- 18 -
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.

DALE BUILDING MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
ACCOUNTING POLICIES
(Continued)
- 19 -
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.

DALE BUILDING MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
ACCOUNTING POLICIES
(Continued)
- 20 -
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
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.12
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.

1.13
Retirement benefits

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

DALE BUILDING MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
ACCOUNTING POLICIES
(Continued)
- 21 -
1.14
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.

 

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.

 

Amounts recoverable on contract

Amounts recoverable on contact are measured by reference to stage of completion which is calculated

by carrying out valuations of works completed as a point in time and, where applicable estimating the value of works carried out after this point in time up to the balance sheet date. This requires management to estimate the value of work done on a job by job basis. The carrying value of amounts recoverable on contract at the year end was £1,745,291. Provisions against amounts recoverable on contracts are made against the value of works completed and also for future costs. Provisions are calculated and agreed following internal discussions with relevant personnel and represent management's best estimate based on a review of expected contract profitability. The carrying value of contract provisions at the balance sheet date was £156,453.

 

DALE BUILDING MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
3
TURNOVER AND OTHER REVENUE
2023
2022
£
£
Turnover analysed by class of business
Rendering of services
15,295,740
12,854,131
2023
2022
£
£
Other revenue
Interest income
7,106
4,324
4
OPERATING PROFIT
2023
2022
Operating 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
13,125
11,000
Depreciation of owned tangible fixed assets
16,606
23,523
Depreciation of tangible fixed assets held under finance leases
300,781
235,904
Profit on disposal of tangible fixed assets
(57,691)
(63,885)
Operating lease charges
96,930
81,017
5
EMPLOYEES

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

2023
2022
Number
Number
Administrative staff
45
46
Tradesman
67
59
Total
112
105
DALE BUILDING MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
EMPLOYEES
(Continued)
- 23 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
4,162,422
3,621,774
Social security costs
167,942
172,541
Pension costs
41,227
40,738
4,371,591
3,835,053
6
DIRECTORS' REMUNERATION
2023
2022
£
£
Remuneration for qualifying services
187,208
178,416
Company pension contributions to defined contribution schemes
9,363
14,748
196,571
193,164

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 5).

7
INTEREST RECEIVABLE AND SIMILAR INCOME
2023
2022
£
£
Interest income
Other interest income
7,106
4,324
8
INTEREST PAYABLE AND SIMILAR EXPENSES
2023
2022
£
£
Interest on finance leases and hire purchase contracts
20,337
15,373
DALE BUILDING MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
9
TAXATION
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
352,664
105,532
Adjustments in respect of prior periods
-
0
(18,197)
Total current tax
352,664
87,335
Deferred tax
Origination and reversal of timing differences
6,448
60,190
Total tax charge
359,112
147,525

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
1,483,451
843,812
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
348,916
160,324
Tax effect of expenses that are not deductible in determining taxable profit
8,240
3,680
Adjustments in respect of prior years
-
0
(18,196)
Effect of change in corporation tax rate
382
23,242
Depreciation on assets not qualifying for tax allowances
2,049
1,655
Research and development tax credit
-
0
(4,672)
Super-deduction
(475)
(18,508)
Taxation charge for the year
359,112
147,525
10
DIVIDENDS
2023
2022
£
£
Final paid
790,600
247,200
DALE BUILDING MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
11
TANGIBLE FIXED ASSETS
Freehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
435,324
206,118
1,658,075
2,299,517
Additions
-
0
5,429
331,387
336,816
Disposals
-
0
-
0
(199,781)
(199,781)
At 31 December 2023
435,324
211,547
1,789,681
2,436,552
Depreciation and impairment
At 1 January 2023
175,176
190,873
1,069,492
1,435,541
Depreciation charged in the year
8,712
8,894
299,781
317,387
Eliminated in respect of disposals
-
0
-
0
(199,781)
(199,781)
At 31 December 2023
183,888
199,767
1,169,492
1,553,147
Carrying amount
At 31 December 2023
251,436
11,780
620,189
883,405
At 31 December 2022
260,148
15,245
588,583
863,976

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Motor vehicles
615,582
575,306
12
FIXED ASSET INVESTMENTS
2023
2022
Notes
£
£
Investments in subsidiaries
13
2
2
13
SUBSIDIARIES

Details of the company's subsidiaries at 31 December 2023 are as follows:

DALE BUILDING MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
SUBSIDIARIES
(Continued)
- 26 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
School Maintenance Services Limited
United Kingdom
Ordinary
100.00
14
DEBTORS
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,653,559
2,013,925
Gross amounts owed by contract customers
1,588,838
1,117,651
Other debtors
30,102
255,784
Prepayments and accrued income
16,878
9,524
4,289,377
3,396,884
15
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023
2022
Notes
£
£
Obligations under finance leases
17
245,715
198,913
Trade creditors
911,946
840,335
Corporation tax
352,664
87,404
Other taxation and social security
647,551
436,385
Other creditors
47,442
50,827
Accruals and deferred income
333,802
246,194
2,539,120
1,860,058
16
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023
2022
Notes
£
£
Obligations under finance leases
17
339,126
348,181

The hire purchase liabilities are secured on the assets to which they relate.

DALE BUILDING MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
17
FINANCE LEASE OBLIGATIONS
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
270,661
215,393
In two to five years
377,947
380,355
648,608
595,748
Less: future finance charges
(63,767)
(48,654)
584,841
547,094

Finance lease payments represent rentals payable by the company for certain items of motor vehicles.

18
PROVISIONS FOR LIABILITIES
2023
2022
£
£
Dilapidations provision
96,000
86,000
Movements on provisions:
Dilapidations provision
£
At 1 January 2023
86,000
Additional provisions in the year
10,000
At 31 December 2023
96,000
DALE BUILDING MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
19
DEFERRED TAXATION

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
103,823
98,061
Tax losses
-
(1,220)
Retirement benefit obligations
(534)
-
103,289
96,841
2023
Movements in the year:
£
Liability at 1 January 2023
96,841
Charge to profit or loss
6,448
Liability at 31 December 2023
103,289

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

20
RETIREMENT BENEFIT SCHEMES
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
41,227
40,738

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.

21
SHARE CAPITAL
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000
DALE BUILDING MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
22
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
19,581
19,581
Between two and five years
15,998
35,579
35,579
55,160
23
RELATED PARTY TRANSACTIONS

Included within other debtors is a balance owed of £12,298.49 (2022 - £12,298) from Payroll Resources Limited, this is part owned by one of the directors. At year-end there was a balance owed to this company of £1,935 (2022 - £1,767), during the year there were transactions totaling £17,453.75 (2022 - £13,872).

24
DIRECTORS' TRANSACTIONS

Dividends totalling £39,180 (2022 - £247,200) were paid in the year in respect of shares held by the company's directors.

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director 1 -
-
19,448
160,424
(179,872)
-
Director 3 -
-
219,521
58,326
(277,847)
-
238,969
218,750
(457,719)
-
25
ULTIMATE CONTROLLING PARTY

The immediate and ultimate parent is Dale Services Group Limited. Dale Services Group Limited is the largest and only group in which these financial statements are consolidated. The consolidated financial statements are available at Companies House, Crown Way, Maindy, Cardiff, CF4 3UZ.

Mr I Davies is considered to be the ultimate controlling party by virtue of his controlling interest in the ultimate parent company.

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