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Filleted
Registration number: 03550457

Salem Construction Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 March 2024

 

Salem Construction Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 8

 

Salem Construction Limited

Company Information

Directors

Mr Stephen Clive Kirkwood

Mr Philip Bond

Registered office

Globe House
Market Street
Laugharne
Carmarthen
SA33 4SA

 

Salem Construction Limited

(Registration number: 03550457)
Balance Sheet as at 31 March 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

257,547

207,291

Current assets

 

Stocks

5

261,184

-

Debtors

6

198,045

572,759

Cash at bank and in hand

 

18,243

11,700

 

477,472

584,459

Creditors: Amounts falling due within one year

7

(205,257)

(305,252)

Net current assets

 

272,215

279,207

Total assets less current liabilities

 

529,762

486,498

Creditors: Amounts falling due after more than one year

7

(135,772)

(139,119)

Net assets

 

393,990

347,379

Capital and reserves

 

Called up share capital

8

1

1

Retained earnings

393,989

347,378

Shareholders' funds

 

393,990

347,379

For the financial year ending 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 16 April 2025 and signed on its behalf by:
 

.........................................
Mr Stephen Clive Kirkwood
Director

.........................................
Mr Philip Bond
Director

 
     
 

Salem Construction Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Globe House
Market Street
Laugharne
Carmarthen
SA33 4SA

These financial statements were authorised for issue by the Board on 16 April 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

Salem Construction Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

at variable rates on reducing balance

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Salem Construction Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 22 (2023 - 24).

 

Salem Construction Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

4

Tangible assets

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 April 2023

139,630

129,427

269,057

Additions

119,683

-

119,683

Disposals

(616)

-

(616)

At 31 March 2024

258,697

129,427

388,124

Depreciation

At 1 April 2023

37,222

24,544

61,766

Charge for the year

47,983

20,977

68,960

Eliminated on disposal

(149)

-

(149)

At 31 March 2024

85,056

45,521

130,577

Carrying amount

At 31 March 2024

173,641

83,906

257,547

At 31 March 2023

102,408

104,883

207,291

5

Stocks

2024
£

2023
£

Work in progress

261,184

-

6

Debtors

Current

Note

2024
£

2023
£

Trade debtors

 

143,788

526,345

Amounts owed by related parties

10

15,656

8,911

Prepayments

 

13,880

18,204

Other debtors

 

24,721

19,299

   

198,045

572,759

 

Salem Construction Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

7

Creditors

Creditors: amounts falling due within one year

Note

2024
£

2023
£

Due within one year

 

Trade creditors

 

92,844

186,067

Taxation and social security

 

21,600

26,484

Amounts owed to group undertakings and undertakings in which the company has a participating interest

 

2,812

4,458

Directors' loan accounts

 

73,816

76,620

Outstanding defined contribution pension costs

 

640

1,021

Other creditors

 

13,545

10,602

 

205,257

305,252

Creditors: amounts falling due after more than one year

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

9

135,772

139,119

8

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £0.00 each

1,000

1

1,000

1

       

9

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Hire purchase contracts

35,772

39,119

Other borrowings

100,000

100,000

135,772

139,119

 

Salem Construction Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

10

Related party transactions

Other transactions with directors

Directors' Loan Accounts
At the balance sheet date, the amount owed to Mr S C Kirkwood by the company was £73,816 (2023: £76,620). The loan is unsecured, interest-free and repayable on demand.

Summary of transactions with other related parties

The following entities are considered to be a related party of the entity by virtue of common control. At the balance sheet date the entity is owed £10,947 (2023: £8,084) by Sancler 3 Ltd.

At the balance sheet date the entity is owed £4,584 (2023: £825) by Island House Restoration Ltd.

As at the balance sheet date the entity owed Salem Construction £2,812 (2023: £4,458).

Mr P Bond, a director of this company, made an interest free loan to the entity of £100,000 (2023: £100,000) which was still owing at the balance sheet date.