REGISTERED NUMBER: 11655346 (England and Wales)

David Salisbury Group Holdings Limited

Group Strategic Report, Report of the Director and

Consolidated Financial Statements for the Year Ended 31 December 2024

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Consolidated Profit and Loss Account

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTOR:

D Salisbury

SECRETARY:

C A Salisbury

REGISTERED OFFICE:

Bennett Road

Isleport Business Park

Highbridge

Somerset

TA9 4PW

REGISTERED NUMBER:

11655346 (England and Wales)

AUDITORS:

Webb & Co Ltd

Accountants and Business Advisers

& Statutory Auditor

One New Street

Wells

Somerset

BA5 2LA

The director presents his strategic report of the company and the group for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the group is the manufacture, sale and installation of bespoke orangeries, conservatories, garden rooms and kitchens.

2024 TRADING SUMMARY

Despite a drop in turnover, gross margin rose during the year, ending higher than it has ever been. The result was another breakeven year, with a good springboard to growth in 2025.

Kitchen production was consolidated in 2024 and new kitchen orders are coming into the business on a rapidly rising curve, validating the decision to diversify our product offering.

2024 was difficult to forecast given the major political uncertainties, but hindsight tells us we took the right decisions. We expected that a new government with a large majority would have a positive impact on market sentiment, but the downbeat messaging that started from day one served to further depress consumer confidence. Despite this, as a result of renewed focus on digital marketing, order intake recovered strongly in Q4.

Continuous development of automated systems from order through to the shopfloor helped lift productivity. We are in a strong position to take advantage of the growth in orders that we are now seeing.

Other financial key performance indicators are as follows;

2024

2023

2022

2021

Gross Profit (000's)

4,179

4,048

5,078

4,154

Gross Profit %

33

28

30

29

Net Assets (000's)

3,460

3,351

3,244

2,548

PRINCIPAL RISKS AND UNCERTAINTIES

National and international political uncertainties, coupled with continued high interest rates are likely to make for very slow if any economic growth. The fallout from President Trump's trade policies is likely to be negative at least in the short term.

OUTLOOK

We confidently expect 2025 to deliver increased turnover and a substantial uplift to profit. New Orders in 2024 Q4 & 2025 Q1 are well up on a like for like comparison to 12 months previously and are higher than we have seen since the Covid boom of 2021.

Coupled with productivity improvements, automation and overhead reduction, these orders will lead to a growth in profit, especially in the second half of the year.

The Board would like to take this opportunity to thank all employees for their continued support and commitment throughout the year.

ON BEHALF OF THE BOARD:

D Salisbury - Director

24 April 2025

The director presents his report with the financial statements of the company and the group for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of manufacture, sale and installation of bespoke orangeries, conservatories and garden rooms.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTOR

D Salisbury held office during the whole of the period from 1 January 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Webb & Co Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D Salisbury - Director

24 April 2025

Opinion

We have audited the financial statements of David Salisbury Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Profit and Loss Account, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of 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:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's 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 group's and the parent 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

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

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

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

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

Based on our understanding of the company and industry we identified that the principal risks of non-compliance and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to manipulation of financial results and potential management bias in accounting estimates. Audit procedures performed by the engagement team included:

- Discussions with the director and Financial Controller including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

- Identifying and testing the validity of journal entries;

- Challenging assumptions made by management in its significant accounting estimates;

- Reviewing disclosures for accounting estimates

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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 of intentional misrepresentations, or through collusion

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Barry Davidson FCA FCCA (Senior Statutory Auditor)

for and on behalf of Webb & Co Ltd

Accountants and Business Advisers

& Statutory Auditor

One New Street

Wells

Somerset

BA5 2LA

29 April 2025

TURNOVER

3

12,510,287

14,399,185

Cost of sales

(8,330,734

)

(10,350,969

)

GROSS PROFIT

4,179,553

4,048,216

Distribution costs

(1,710,151

)

(1,903,805

)

Administrative expenses

(2,467,420

)

(2,109,101

)

1,982

35,310

Other operating income

11,767

-

OPERATING PROFIT

5

13,749

35,310

Interest receivable and similar income

9,394

48,678

23,143

83,988

Interest payable and similar expenses

7

(38,250

)

(25,164

)

(LOSS)/PROFIT BEFORE TAXATION

(15,107

)

58,824

Tax on (loss)/profit

8

124,127

122,610

PROFIT FOR THE FINANCIAL YEAR

109,020

181,434

Profit attributable to:

Owners of the parent

109,020

181,434

PROFIT FOR THE YEAR

109,020

181,434

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

109,020

181,434

Total comprehensive income attributable to:

Owners of the parent

109,020

181,434

FIXED ASSETS

Intangible assets

11

16,003

26,934

Tangible assets

12

4,127,184

4,324,073

Investments

13

-

-

4,143,187

4,351,007

CURRENT ASSETS

Stocks

14

717,537

783,157

Debtors

15

1,200,107

1,345,763

Cash at bank and in hand

1,387,768

1,560,645

3,305,412

3,689,565

CREDITORS

Amounts falling due within one year

16

3,187,392

3,638,880

NET CURRENT ASSETS

118,020

50,685

TOTAL ASSETS LESS CURRENT LIABILITIES

4,261,207

4,401,692

CREDITORS

Amounts falling due after more than one year

17

(447,197

)

(592,574

)

PROVISIONS FOR LIABILITIES

20

(353,409

)

(457,537

)

NET ASSETS

3,460,601

3,351,581

CAPITAL AND RESERVES

Called up share capital

21

1,000

1,000

Other reserves

214,847

214,847

Fair value reserve

276,562

287,812

Retained earnings

2,968,192

2,847,922

SHAREHOLDERS' FUNDS

3,460,601

3,351,581

The financial statements were approved by the director and authorised for issue on 24 April 2025 and were signed by:

D Salisbury - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

2,439,982

2,360,000

Investments

13

1,000

1,000

2,440,982

2,361,000

CURRENT ASSETS

Cash at bank

118,690

289,799

CREDITORS

Amounts falling due within one year

16

86,968

102,253

NET CURRENT ASSETS

31,722

187,546

TOTAL ASSETS LESS CURRENT LIABILITIES

2,472,704

2,548,546

PROVISIONS FOR LIABILITIES

20

54,477

73,438

NET ASSETS

2,418,227

2,475,108

CAPITAL AND RESERVES

Called up share capital

21

1,000

1,000

Fair value reserve

276,562

287,812

Retained earnings

2,140,665

2,186,296

SHAREHOLDERS' FUNDS

2,418,227

2,475,108

Company's (loss)/profit for the financial year

(56,881

)

703,702

The financial statements were approved by the director and authorised for issue on 24 April 2025 and were signed by:

D Salisbury - Director

Called up

Fair

share

Retained

Other

value

Total

capital

earnings

reserves

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

1,000

2,740,488

214,847

287,812

3,244,147

Changes in equity

Dividends

-

(74,000

)

-

-

(74,000

)

Total comprehensive income

-

181,434

-

-

181,434

Balance at 31 December 2023

1,000

2,847,922

214,847

287,812

3,351,581

Changes in equity

FV movement of properties

-

15,000

-

(15,000

)

-

Deferred tax on FV adjustment

-

(3,750

)

-

3,750

-

Total comprehensive income

-

109,020

-

-

109,020

Balance at 31 December 2024

1,000

2,968,192

214,847

276,562

3,460,601

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

1,000

1,556,594

287,812

1,845,406

Changes in equity

Dividends

-

(74,000

)

-

(74,000

)

Total comprehensive income

-

703,702

-

703,702

Balance at 31 December 2023

1,000

2,186,296

287,812

2,475,108

Changes in equity

FV movement of properties

-

15,000

(15,000

)

-

Deferred tax on FV adjustment

-

(3,750

)

3,750

-

Total comprehensive income

-

(56,881

)

-

(56,881

)

Balance at 31 December 2024

1,000

2,140,665

276,562

2,418,227

Cash flows from operating activities

Cash generated from operations

23

20,715

(1,463,132

)

Interest element of hire purchase payments paid

(38,250

)

(25,164

)

Tax paid

41,573

(44,237

)

Net cash from operating activities

24,038

(1,532,533

)

Cash flows from investing activities

Purchase of intangible fixed assets

-

(1,635

)

Purchase of tangible fixed assets

(182,314

)

(575,609

)

Sale of tangible fixed assets

87,898

19,916

Interest received

9,394

48,678

Net cash from investing activities

(85,022

)

(508,650

)

Cash flows from financing activities

Capital repayments in year

(141,510

)

157,345

Amount introduced by directors

29,617

(74,000

)

Amount withdrawn by directors

-

(10,478

)

Equity dividends paid

-

(74,000

)

Net cash from financing activities

(111,893

)

(1,133

)

Decrease in cash and cash equivalents

(172,877

)

(2,042,316

)

Cash and cash equivalents at beginning of year

24

1,560,645

3,602,961

Cash and cash equivalents at end of year

24

1,387,768

1,560,645

1.	ACCOUNTING POLICIES

General information and basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The company is a private company, limited by shares, registered in England and Wales. The address of the registered office is Bennett Road, Isleport Business Park, Highbridge, Somerset, TA9 4PW.

The financial statements are prepared in sterling, which is the functional currency of the entity, rounded to the nearest £.

The nature of the group's operations and principal activities are the design, manufacture and installation of bespoke wooden orangeries, conservatories and extensions.

Basis of consolidation

The financial statements consolidate the financial statements of David Salisbury Group Holdings Ltd and its subsidiary undertaking David Salisbury Joinery Ltd. The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. Recognition occurs when there is an arrangement, primarily in the form of contract or purchase order, with the customer, a determining sales price is established with the customer, performance requirements are achieved and it is probable that economic benefits associated with the transaction will flow to the company. The policies adopted for the recognition of turnover are as follows:

Construction contracts

Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end.

Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred.

The entity uses the percentage of completion method to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments.

Interest receivable

Interest income is recognised using the effective interest method.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Website costs are being amortised evenly over their estimated useful life of three years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Freehold property

-

Land 0%, Buildings over 50 years

Plant and machinery

-

25% on reducing balance and 3 - 15 years straight line

Fixtures and fittings

-

10% on cost and 3 - 15 years straight line

Motor vehicles

-

25% on reducing balance

Freehold property is carried at valuation and other tangible fixed assets are measured at cost less accumulated depreciation and accumulated impairment losses.

Accounting Estimate Change - Depreciation Method

During the year, the group reviewed its depreciation policy for certain plant and equipment and fixtures and fittings. Previously, some assets were depreciated using the straight line method over ten years, but following this review, the useful life of certain assets was assessed to be a period of fifteen years, and as a result the depreciation policy was amended to straight line over fifteen years on certain assets.

The change ensures that the depreciation policy better reflects the expected pattern of economic benefits derived from the use of these assets.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stocks are measured at the lower of cost and estimated selling price. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. The cost formula used to value stock is first-in-first-out.

Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.

Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

2.	CRITICAL ACCOUNTING 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 period where the revision affects both current and future periods.

Critical Judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of assets

The tangible fixed assets are periodically reviewed for impairment by the directors based on their knowledge and judgements.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows;

Revenue recognition - construction contracts

The company recognises revenue from construction contracts using the percentage of completion method. The recognition of revenue and associated profit required the estimation of the total contract costs and the degree of completion. Due to the long term nature of construction contracts, these estimates involve a significant level of judgement and are subject to estimation uncertainty. Key factors influencing these estimates include:

- Total contract costs - which may change due to variations in material costs, labour costs and unforeseen time delays

- Progress of work - which is assessed based on project management data but may be subject to changes in project timelines or scope

- Contract variations and claims - which are often not fully known at the outset and may be subject to negotiation or dispute

The company continually review and revises these estimates based on updated information. Any changes in these estimates can impact the revenue and profit recognised, and any such changes will be disclosed in the financial statements where appropriate.

Depreciation and amortisation

The directors use their knowledge of the business and the industry to estimate the useful life and residual value of tangible assets in order to arrive at applicable deprecation and amortisation rates. In accordance with section 17 of FRS 102, the directors review and update these estimates if there are indicators that current estimates should change.

It must be noted that there is inherent uncertainty within these estimates as factors such as unexpected wear and tear, technological advancement and changes in market prices may result in future changes to the appropriate rate of deprecation.

Freehold property valuation

The directors use their knowledge of the local area and the business and industry to estimate the freehold property valuation with interim professional valuations.

3.

TURNOVER

The turnover and loss (2023 - profit) before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

2024

2023

£

£

Construction contracts

12,510,287

14,399,185

12,510,287

14,399,185

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

12,449,536

14,314,454

United States of America

60,751

84,731

12,510,287

14,399,185

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

3,804,212

4,158,129

Social security costs

387,812

422,636

Other pension costs

133,078

155,453

4,325,102

4,736,218

The average number of employees during the year was as follows:

2024

2023

Production

68

77

Administration and support

8

10

Sales, marketing and distribution

27

30

103

117

2024

2023

£

£

Director's remuneration

93,198

71,837