Company registration number 09236979 (England and Wales)
DARLASTON BUILDERS MERCHANTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
DARLASTON BUILDERS MERCHANTS LIMITED
COMPANY INFORMATION
Directors
Mr Amandeep Jutla
Mr Rajpal Singh Jutla
Mr Stephen Lally
Company number
09236979
Registered office
Ace House
22 Chester Rd
Sutton Coldfield
West Midlands
England
B73 5DA
Auditor
Patara is a trading style of TS Patara & Co Ltd
Enterprise House
352 Bearwood Rd
Bearwood
Birmingham
B66 4ET
Business address
Pinfold Street
Darlaston
Wednesbury
West Midlands
United Kingdom
WS10 7RD
DARLASTON BUILDERS MERCHANTS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
DARLASTON BUILDERS MERCHANTS 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

The financial year ending 31st December 2023 has seen a drop in turnover by 20% due to economic climate although the profit margin has been sustained.

 

The Directors look to the future with cautious optimism.

Principal risks and uncertainties

The company faces competition from other operators and in general the uncertainty in the economy due to international factors.

Development and performance

The company is benefiting from the investment in IT systems and computer software to have better controls and efficiency in the business operations.

Key performance indicators

The company monitors financial performance by using key performance indicators:

 

Turnover £13,866,960(2022: £17,369,000) and Gross profit margin 27.93% (2022: 25.99% ).

 

The drop in turnover is due to the general economic climate and Cost of Living Crisis although company managed to retain the gross profit margins

Other performance indicators

Company reviews customer satisfaction by reviewing any loss of customer.

On behalf of the board

Mr Rajpal Singh Jutla
Director
20 March 2025
DARLASTON BUILDERS MERCHANTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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 builders merchants.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final 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 Amandeep Jutla
Mr Rajpal Singh Jutla
Mr Stephen Lally
Financial instruments

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Post reporting date events

There are no material post reporting date events which require disclosure.

Future developments

The company is investing in opening a new depot in Birmingham to expand the business and operating profit. The investment in IT systems to improve business efficiency and increase the company's presence online. The Online shop will diversify and expand the Company's sales outlets and prepare the company for the future.

Auditor

The auditor, Patara is a trading style of TS Patara & Co Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

On behalf of the board
Mr Rajpal Singh Jutla
Director
20 March 2025
DARLASTON BUILDERS MERCHANTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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.

DARLASTON BUILDERS MERCHANTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DARLASTON BUILDERS MERCHANTS LIMITED
- 4 -
Opinion

We have audited the financial statements of DARLASTON BUILDERS MERCHANTS 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, 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 FRS 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:

DARLASTON BUILDERS MERCHANTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DARLASTON BUILDERS MERCHANTS LIMITED (CONTINUED)
- 5 -
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.

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

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:

 

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

 

DARLASTON BUILDERS MERCHANTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DARLASTON BUILDERS MERCHANTS LIMITED (CONTINUED)
- 6 -

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

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.

Talwinder Patara BSc(Hons) BFP FCA FRSA
Senior Statutory Auditor
For and on behalf of Patara is a trading style of TS Patara & Co Ltd
20 March 2025
ICAEW - Chartered
Statutory Auditor
Enterprise House
352 Bearwood Rd
Bearwood
Birmingham
B66 4ET
DARLASTON BUILDERS MERCHANTS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
13,866,960
17,369,000
Cost of sales
(9,993,607)
(12,854,005)
Gross profit
3,873,353
4,514,995
Administrative expenses
(3,789,728)
(4,143,937)
Operating profit
5
83,625
371,058
Interest payable and similar expenses
8
(74,586)
(42,331)
Profit before taxation
9,039
328,727
Tax on profit
9
19,550
(64,156)
Profit for the financial year
28,589
264,571

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

DARLASTON BUILDERS MERCHANTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
28,589
264,571
Other comprehensive income
-
-
Total comprehensive income for the year
28,589
264,571
DARLASTON BUILDERS MERCHANTS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
8
8
Tangible assets
12
1,201,059
1,457,040
1,201,067
1,457,048
Current assets
Stocks
13
3,628,599
3,656,720
Debtors
14
2,103,715
1,830,935
Cash at bank and in hand
12,607
26,449
5,744,921
5,514,104
Creditors: amounts falling due within one year
15
(3,286,860)
(3,166,239)
Net current assets
2,458,061
2,347,865
Total assets less current liabilities
3,659,128
3,804,913
Creditors: amounts falling due after more than one year
16
(439,317)
(608,260)
Provisions for liabilities
Deferred tax liability
19
138,907
144,338
(138,907)
(144,338)
Net assets
3,080,904
3,052,315
Capital and reserves
Called up share capital
21
100
100
Profit and loss reserves
3,080,804
3,052,215
Total equity
3,080,904
3,052,315

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 20 March 2025 and are signed on its behalf by:
Mr Amandeep Jutla
Director
Company registration number 09236979 (England and Wales)
DARLASTON BUILDERS MERCHANTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
2,847,644
2,847,744
Year ended 31 December 2022:
Profit and total comprehensive income
-
264,571
264,571
Dividends
10
-
(60,000)
(60,000)
Balance at 31 December 2022
100
3,052,215
3,052,315
Year ended 31 December 2023:
Profit and total comprehensive income
-
28,589
28,589
Balance at 31 December 2023
100
3,080,804
3,080,904
DARLASTON BUILDERS MERCHANTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
254,835
291,728
Interest paid
(74,586)
(42,331)
Income taxes refunded
3,357
300
Net cash inflow from operating activities
183,606
249,697
Investing activities
Purchase of tangible fixed assets
(31,181)
(135,439)
Proceeds from disposal of tangible fixed assets
25,334
-
0
Repayment of loans
(65,909)
340
Net cash used in investing activities
(71,756)
(135,099)
Financing activities
Repayment of bank loans
(149,563)
(152,085)
Payment of finance leases obligations
(26,231)
15,042
Dividends paid
-
0
(60,000)
Net cash used in financing activities
(175,794)
(197,043)
Net decrease in cash and cash equivalents
(63,944)
(82,445)
Cash and cash equivalents at beginning of year
(365,392)
(282,947)
Cash and cash equivalents at end of year
(429,336)
(365,392)
Relating to:
Cash at bank and in hand
12,607
26,449
Bank overdrafts included in creditors payable within one year
(441,943)
(391,841)
DARLASTON BUILDERS MERCHANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

DARLASTON BUILDERS MERCHANTS LIMITED is a private company limited by shares incorporated in England and Wales. The registered office is Ace House, 22 Chester Rd, Sutton Coldfield, West Midlands, England, B73 5DA.

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.

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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

1.5
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 buildings
Nil
Leasehold buildings
2% Straight line
Leasehold land and buildings
Over the term
Plant and equipment
20% Straight line
Fixtures and fittings
20% Straight line
Motor vehicles
20% Straight line

Freehold land is not depreciated.

DARLASTON BUILDERS MERCHANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

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.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
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.

1.9
Financial instruments
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.

DARLASTON BUILDERS MERCHANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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.

DARLASTON BUILDERS MERCHANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.10
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.

1.11
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.

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.

1.12
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.

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.

DARLASTON BUILDERS MERCHANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
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.

3
Turnover

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

2023
2022
£
£
Turnover analysed by class of business
Sales of goods
13,866,960
17,369,000
4
Exceptional item
2023
2022
£
£
Expenditure
Exceptional item - Fraudulent payment from bank account
142,669
-
5
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
12,500
9,500
Depreciation of owned tangible fixed assets
277,588
322,429
Profit on disposal of tangible fixed assets
(15,760)
-
6
Employees

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

2023
2022
Number
Number
Administration and sales
103
103
DARLASTON BUILDERS MERCHANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,631,479
1,715,514
Social security costs
139,098
153,238
Pension costs
33,153
33,747
1,803,730
1,902,499
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
89,646
57,013

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
52,711
36,754
Other finance costs:
Interest on finance leases and hire purchase contracts
724
1,073
Other interest
21,151
4,504
74,586
42,331
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
52,150
104,125
Adjustments in respect of prior periods
(66,269)
-
0
Total current tax
(14,119)
104,125
Deferred tax
Origination and reversal of timing differences
(5,431)
(39,969)
Total tax (credit)/charge
(19,550)
64,156
DARLASTON BUILDERS MERCHANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 18 -

The actual (credit)/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
9,039
328,727
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 019%)
2,260
62,458
Tax effect of expenses that are not deductible in determining taxable profit
-
0
57
Effect of change in corporation tax rate
(3,280)
-
0
Depreciation charge
69,397
61,262
Loss on disposal
(3,940)
-
0
Capital allowances
(12,287)
(19,652)
Deferred Tax
(5,431)
(39,969)
Other
(66,269)
-
0
Taxation (credit)/charge for the year
(19,550)
64,156
10
Dividends
2023
2022
£
£
Interim paid
-
0
60,000
11
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
8
Amortisation and impairment
At 1 January 2023 and 31 December 2023
-
0
Carrying amount
At 31 December 2023
8
At 31 December 2022
8

The directors consider goodwill to be immaterial hence it has not been amortised.

DARLASTON BUILDERS MERCHANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
12
Tangible fixed assets
Freehold buildings
Leasehold buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
595,000
1
1,296,918
47,096
347,052
2,286,067
Additions
-
0
-
0
31,181
-
0
-
0
31,181
Disposals
-
0
-
0
-
0
-
0
(26,500)
(26,500)
At 31 December 2023
595,000
1
1,328,099
47,096
320,552
2,290,748
Depreciation and impairment
At 1 January 2023
60,474
-
0
502,666
31,220
234,667
829,027
Depreciation charged in the year
8,638
-
0
238,017
5,605
25,328
277,588
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(16,926)
(16,926)
At 31 December 2023
69,112
-
0
740,683
36,825
243,069
1,089,689
Carrying amount
At 31 December 2023
525,888
1
587,416
10,271
77,483
1,201,059
At 31 December 2022
534,526
1
794,252
15,876
112,385
1,457,040

The directors consider the leasehold to be immaterial hence it has not been depreciation.

13
Stocks
2023
2022
£
£
Finished goods and goods for resale
3,628,599
3,656,720
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
998,423
941,030
Other debtors
1,091,108
868,753
Prepayments and accrued income
14,184
21,152
2,103,715
1,830,935
DARLASTON BUILDERS MERCHANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
621,683
552,201
Obligations under finance leases
18
-
0
26,231
Trade creditors
1,907,542
1,983,794
Corporation tax
95,260
106,022
Other taxation and social security
551,540
339,451
Director's Loan Account
-
16,541
Other creditors
90,300
90,300
Accruals and deferred income
20,535
51,699
3,286,860
3,166,239
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
439,317
608,260
17
Loans and overdrafts
2023
2022
£
£
Bank loans
619,057
768,620
Bank overdrafts
441,943
391,841
1,061,000
1,160,461
Payable within one year
621,683
552,201
Payable after one year
439,317
608,260

The long-term loans are secured by fixed and floating charges over the assets of the company.

18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
-
0
26,231

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

DARLASTON BUILDERS MERCHANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
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
138,907
144,338
2023
Movements in the year:
£
Liability at 1 January 2023
144,338
Credit to profit or loss
(5,431)
Liability at 31 December 2023
138,907

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
33,153
33,747

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
100
100
100
100
22
Related party transactions
Transactions with related parties

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

Other information
DARLASTON BUILDERS MERCHANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Related party transactions
(Continued)
- 22 -

Other debtors at 31st December 2023 includes amount due of £21,959 (2022: £21,959) from Greyshire Homes Ltd , £632,061(2022: £475,615) from Warwick Property Company Ltd, amount £238,752 (2022: £238,752) from DBM HR Ltd and amount £29,700 (2022:£29,700) Brookhouse Barns Ltd.

 

Other creditors at 31st December 2023 includes amount due of £90,300 (2022: £90,300) to Darlaston Civills LLP.

 

The nature of the transactions is short term borrowing between connected companies and arm's length transactions.

 

The loans are unsecured and repayable on demand.

 

The directors have an interest in Greyshire Homes Ltd, Warwick Property Company Ltd, Darlaston Civills LLP, DBM HR Ltd and Brookhouse Barns Ltd.

23
Directors' transactions

Advances or credits have been granted by the company to its directors as follows:

 

As at 31st December 2023 the Directors loan account was overdrawn by £166,568 (2022: £99,660 in credit). The loan was unsecured, interest free and repayable on demand.

Dividends totalling £0 (2022 - £60,000) were paid in the year in respect of shares held by the company's directors.

24
Ultimate controlling party

The ultimate controlling party is Gurmit Singh Jutla - shareholder.

25
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
28,589
264,571
Adjustments for:
Taxation (credited)/charged
(19,550)
64,156
Finance costs
74,586
42,331
Gain on disposal of tangible fixed assets
(15,760)
-
Depreciation and impairment of tangible fixed assets
277,588
322,429
Movements in working capital:
Decrease/(increase) in stocks
28,121
(464,982)
(Increase)/decrease in debtors
(206,871)
350,346
Increase/(decrease) in creditors
88,132
(287,123)
Cash generated from operations
254,835
291,728
DARLASTON BUILDERS MERCHANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
26
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
26,449
(13,842)
12,607
Bank overdrafts
(391,841)
(50,102)
(441,943)
(365,392)
(63,944)
(429,336)
Borrowings excluding overdrafts
(768,620)
149,563
(619,057)
Obligations under finance leases
(26,231)
26,231
-
(1,160,243)
111,850
(1,048,393)
27
Prior period adjustment
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2022
£
Total adjustments
-
Profit as previously reported
264,571
Profit as adjusted
264,571
DARLASTON BUILDERS MERCHANTS LIMITED
MANAGEMENT INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100Mr Amandeep JutlaMr Rajpal Singh JutlaMr Stephen Lallyfalsetrue092369792023-01-012023-12-3109236979bus:Director12023-01-012023-12-3109236979bus:Director22023-01-012023-12-3109236979bus:Director32023-01-012023-12-3109236979bus:RegisteredOffice2023-01-012023-12-31092369792023-12-31092369792022-01-012022-12-3109236979core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3109236979core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3109236979core:Goodwill2023-12-3109236979core:Goodwill2022-12-31092369792022-12-3109236979core:LandBuildingscore:OwnedOrFreeholdAssets2023-12-3109236979core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3109236979core:PlantMachinery2023-12-3109236979core:FurnitureFittings2023-12-3109236979core:MotorVehicles2023-12-3109236979core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3109236979core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3109236979core:PlantMachinery2022-12-3109236979core:FurnitureFittings2022-12-3109236979core:MotorVehicles2022-12-3109236979core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3109236979core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3109236979core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3109236979core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3109236979core:ShareCapital2023-12-3109236979core:ShareCapital2022-12-3109236979core:RetainedEarningsAccumulatedLosses2023-12-3109236979core:RetainedEarningsAccumulatedLosses2022-12-3109236979core:ShareCapital2021-12-3109236979core:RetainedEarningsAccumulatedLosses2021-12-310923697912023-01-012023-12-310923697912022-01-012022-12-31092369792022-12-31092369792021-12-3109236979core:WithinOneYear2023-12-3109236979core:WithinOneYear2022-12-3109236979core:Goodwill2023-01-012023-12-3109236979core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-012023-12-3109236979core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-3109236979core:LeaseholdImprovements2023-01-012023-12-3109236979core:PlantMachinery2023-01-012023-12-3109236979core:FurnitureFittings2023-01-012023-12-3109236979core:MotorVehicles2023-01-012023-12-3109236979core:UKTax2023-01-012023-12-3109236979core:UKTax2022-01-012022-12-310923697922023-01-012023-12-310923697922022-01-012022-12-310923697932023-01-012023-12-310923697932022-01-012022-12-310923697942023-01-012023-12-310923697942022-01-012022-12-310923697952023-01-012023-12-310923697952022-01-012022-12-3109236979core:Goodwill2022-12-3109236979core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3109236979core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3109236979core:PlantMachinery2022-12-3109236979core:FurnitureFittings2022-12-3109236979core:MotorVehicles2022-12-3109236979core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3109236979core:CurrentFinancialInstruments2023-12-3109236979core:CurrentFinancialInstruments2022-12-3109236979core:Non-currentFinancialInstruments2023-12-3109236979core:Non-currentFinancialInstruments2022-12-3109236979bus:PrivateLimitedCompanyLtd2023-01-012023-12-3109236979bus:FRS1022023-01-012023-12-3109236979bus:Audited2023-01-012023-12-3109236979bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP