IRIS Accounts Production v23.3.0.418 04494633 Board of Directors 1.6.21 31.5.22 31.5.22 No description of principle activity true false true true false false false true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pure044946332021-05-31044946332022-05-31044946332021-06-012022-05-31044946332020-05-31044946332020-06-012021-05-31044946332021-05-3104494633ns16:EnglandWales2021-06-012022-05-3104494633ns15:PoundSterling2021-06-012022-05-3104494633ns11:Director12021-06-012022-05-3104494633ns11:PrivateLimitedCompanyLtd2021-06-012022-05-3104494633ns11:FRS1022021-06-012022-05-3104494633ns11:Audited2021-06-012022-05-3104494633ns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2021-06-012022-05-3104494633ns11:LargeMedium-sizedCompaniesRegimeForAccounts2021-06-012022-05-3104494633ns11:FullAccounts2021-06-012022-05-310449463312021-06-012022-05-3104494633ns11:OrdinaryShareClass12021-06-012022-05-3104494633ns11:Director22021-06-012022-05-3104494633ns11:RegisteredOffice2021-06-012022-05-3104494633ns6:CurrentFinancialInstruments2022-05-3104494633ns6:CurrentFinancialInstruments2021-05-3104494633ns6:ShareCapital2022-05-3104494633ns6:ShareCapital2021-05-3104494633ns6:RetainedEarningsAccumulatedLosses2022-05-3104494633ns6:RetainedEarningsAccumulatedLosses2021-05-3104494633ns6:ShareCapital2020-05-3104494633ns6:RetainedEarningsAccumulatedLosses2020-05-3104494633ns6:RetainedEarningsAccumulatedLosses2020-06-012021-05-3104494633ns6:RetainedEarningsAccumulatedLosses2021-06-012022-05-310449463312021-06-012022-05-3104494633ns6:NetGoodwill2021-06-012022-05-3104494633ns6:IntangibleAssetsOtherThanGoodwill2021-06-012022-05-3104494633ns6:ComputerSoftware2021-06-012022-05-3104494633ns6:ComputerEquipment2021-06-012022-05-3104494633ns11:HighestPaidDirector2021-06-012022-05-3104494633ns6:OwnedAssets2021-06-012022-05-3104494633ns6:OwnedAssets2020-06-012021-05-3104494633ns6:NetGoodwill2020-06-012021-05-3104494633ns6:ComputerSoftware2020-06-012021-05-3104494633ns11:OrdinaryShareClass12020-06-012021-05-3104494633ns6:NetGoodwill2021-05-3104494633ns6:ComputerSoftware2021-05-3104494633ns6:NetGoodwill2022-05-3104494633ns6:ComputerSoftware2022-05-3104494633ns6:NetGoodwill2021-05-3104494633ns6:ComputerSoftware2021-05-3104494633ns6:FurnitureFittings2021-05-3104494633ns6:MotorVehicles2021-05-3104494633ns6:ComputerEquipment2021-05-3104494633ns6:FurnitureFittings2021-06-012022-05-3104494633ns6:MotorVehicles2021-06-012022-05-3104494633ns6:FurnitureFittings2022-05-3104494633ns6:MotorVehicles2022-05-3104494633ns6:ComputerEquipment2022-05-3104494633ns6:FurnitureFittings2021-05-3104494633ns6:MotorVehicles2021-05-3104494633ns6:ComputerEquipment2021-05-3104494633ns6:WithinOneYearns6:CurrentFinancialInstruments2022-05-3104494633ns6:WithinOneYearns6:CurrentFinancialInstruments2021-05-3104494633ns6:WithinOneYear2022-05-3104494633ns6:WithinOneYear2021-05-3104494633ns6:BetweenOneFiveYears2022-05-3104494633ns6:BetweenOneFiveYears2021-05-3104494633ns6:AllPeriods2022-05-3104494633ns6:AllPeriods2021-05-3104494633ns6:DeferredTaxation2021-05-3104494633ns6:DeferredTaxation2021-06-012022-05-3104494633ns6:DeferredTaxation2022-05-3104494633ns11:OrdinaryShareClass12022-05-3104494633ns6:RetainedEarningsAccumulatedLosses2021-05-31044946332ns11:Director22021-05-31044946332ns11:Director22020-05-31044946332ns11:Director22021-06-012022-05-31044946332ns11:Director22020-06-012021-05-31044946332ns11:Director22022-05-31044946332ns11:Director22021-05-31
REGISTERED NUMBER: 04494633 (England and Wales)


















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2022

FOR

SSGC LIMITED

SSGC LIMITED (REGISTERED NUMBER: 04494633)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2022




Page

Company Information 1

Strategic Report 2

Report of the Directors 9

Report of the Independent Auditors 10

Income Statement 14

Other Comprehensive Income 15

Statement of Financial Position 16

Statement of Changes in Equity 17

Statement of Cash Flows 18

Notes to the Statement of Cash Flows 19

Notes to the Financial Statements 20


SSGC LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MAY 2022







DIRECTORS: Mr G K Dungworth
Mr D R Stubbs





REGISTERED OFFICE: Unit 19 Ergo Business Park
Kelvin Road
Swindon
Wiltshire
SN3 3JW





REGISTERED NUMBER: 04494633 (England and Wales)





AUDITORS: Haines Watts
Chartered Accountants & Statutory Auditors
Old Station House
Station Approach
Swindon
Wiltshire
SN1 3DU

SSGC LIMITED (REGISTERED NUMBER: 04494633)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2022

The board present their Strategic Report for SSGC Ltd the year ended 31 May 2022. SSGC Ltd is a wholly owned subsidiary of SGTS Holdings Ltd.

PRINCIPAL ACTIVITY

SSGC provides ACS accredited security services to public and private security users across the UK. SSGC has a place on the Crown Commercial Services RM6257 Framework for direct tier 1 government work.

The board remains focused on a core vision - to be recognised as the best in class tier 1 security provider in the UK through the investment in and deployment of new to industry technology.

We have developed over many years bespoke end-end application software to allow us to manage the entire security delivery process from order management through account mobilisation, product configuration, staff recruitment, staff vetting, attendance monitoring, supply chain management and ultimately through to integrated payment and billing solutions.

This technology and staff focus sits at the core of all we do and enables us to configure and deliver upon our client service level agreements.

GROWTH STRATEGY

The strategy of the business remains to achieve sustainable and profitable growth through continuing to develop our technology, products and people through focusing on innovation and opening up new distribution channels and market sectors.

During 2022 the business focused considerable efforts on delivering for tier 1 government suppliers operating on the RM3830 CCS Framework and also for tendering a place on the governments strategic procurement initiative RM6257. SSGC was successful in that tender and now holds a coveted place on RM6257 placing it in an exceptional position for growth forward.

RM6257 is a government initiative to move away from government procuring security services using generalist outsources as tier 1 suppliers with security specialists as tier 2 suppliers and so creating a margin- on-margin position on what is a core government product. The SSGC investment in tendering for RM6257 was successful with SSGC being award a coveted place on the framework. The framework is now active, and first tenders are progressing.

The growth rate sustained this period has acted as a practical demonstration of the power of our technology and staff sourcing capability in being robust under stress whilst maintaining quality standards. Our ability to secure and mobilise at pace large government contract requirements is now proven and will be built upon for the strategy forward.

Strategic initiatives have been started in this reporting period to develop our bid management capability; to secure direct access to government procurement frameworks and to broaden our product and client reach through an acquisition project.


SSGC LIMITED (REGISTERED NUMBER: 04494633)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2022

REVIEW OF BUSINESS
The business secured three significant contract wins reported upon in these results under the government Covid-19 programme procured through RM3830 from Mitie, Sodexo and Serco. These contracts performed to terms for Mitie and Sodexo.

In September 2022 SSGC met with Serco and established that Serco sought to withhold around £4.1m. This has reduced to £3.6m at the time of this report and mediation is under discussion. The accounts are reflected appropriately. The board is disappointed in having to present this set of results containing a provision for a substantial withholding on payment by Serco.

The board wishes to bring user particular attention and emphasis to this matter which is explained in detail in the risk and board decision sections of this report and clearly represent a material uncertainly of recovery. The boards view was that the appropriate way to deal with that uncertainty was to provide for the underpayment in this years report. The comparative KPI position is shown for better user understanding.

SSGC is proud to have been raising standards for this and many prior years across the industry and constantly innovating our service offering to meet the increasing joint demands around commercial terms, compliance and service quality.


SSGC LIMITED (REGISTERED NUMBER: 04494633)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2022

PRINCIPAL RISKS AND UNCERTAINTIES
The Directors remain alert to the risks prevalent in a commercial environment and continue to take steps to minimise or mitigate these risks. A process of risk identification is undertaken at Board level.

The identified risks, are regularly reviewed at Board level to ensure adequate risk mitigation pertinent to each risk is introduced and maintained. Identified risks are highlighted below along with the associated mitigation plan.


RISK DETAILS MITIGATING ACTIONS/FACTORS

CCS Tier 1 Serco
Payment
SSGC worked for three of the four
UKHSA allocated suppliers.
SSGC was fully paid up on its
contracts to Mitie and
Sodexo.++The largest contract
with Serco remains materially
unpaid. Serco claim attendance
gaps as measured by their
electronic site attendance system
('Shopworks'). We await further
Serco details of their claim from
site paper timesheets Serco
collected.++Serco assessed
SSGC attendance compliance as
0.1% (2020) and 0.12% (Q1,21).
Post Sercos introduction of
Shopworks (Q2, 21 - Q2 22)
Serco assess SSGC attendance
compliance as 6.5%.++SSGC
understand that Serco may have
held a fixed price government
agreement for these works.
SSGC has requested government
oversight.++SSGC has proposed
mediation.++SSGC are owed at
least £870k that Serco have
included in their high level claim
despite these being delivered to
Serco by a third party.
CCS contracts require a flow through
provision for all compliance matters. As
such all downstream sub-suppliers from
SSGC that are subject to the Serco claims
are unpaid, this essentially being a dispute
between Serco and those suppliers
(including SSGC) and the circa 2,500 staff
that Serco claim do not appear fully in their
records.++SSGC allowed Serco unfettered
audit access to SSGC service and billing
systems. That Serco audit completed May
22. Serco have not reported any adverse
finding under that audit.++SSGC contracted
PwC to review its 'Shopworks' data and
provided that result to Serco in July
22.++Given the potential conflict of interest
in Serco being awarded a fixed price
agreement and benefiting from supplier
non-payment SSGC have requested the
CCS, UKHSA and Cabinet office provide
oversight under the government's 'Supplier
Code of Conduct' . The multiple affected
sub-suppliers are currently raising fresh
complaints requesting oversight.++Parties
are discussing mediation.++We await
Serco's clarification as to why these are
monies are withheld and included in their
attendance claim. We include the provision
in our fiscal report and reclaim has not
been assumed in our going concern
assessment.

Covid-19 Scaling /
Descaling
Covid-19 has resulted in strong
growth over the period.
Demobilisation of cost centres
and account functions will
represent a dynamic and ongoing
challenge.
A fully integrated three way cost modelling
solution has been implemented. This
models each functional cost and allows for
each cost centre to have and be measured
against target budget relative to revenue.

Account Over
Concentration (Scale,
Sector, Product)
An over concentration has
occurred through the Covid
mobilisation programme on the
Facilities Management manpower
sector and specific government
tier 1 suppliers.
The growth strategy targeted RM6257 and
SSGC was successful. Multiple new
contract wins and strategic acquisitions in
new sectors have rebalanced the client,
sector and product mix.


SSGC LIMITED (REGISTERED NUMBER: 04494633)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2022

DoS / Extortion
Cyber-attack
We reply heavily on technology,
an unmitigated attack could
hamper payroll processes and
other critical financial processes if
at critical process points in
monthly cycles.
All our application software and data are
held off site under the care of best in class
service providers with full recovery
protocols from such attacks thus
minimising downtime. A short gap month
end to payroll ensures prior month staff pay
data is still available under attack
conditions. Cyber insurance in place.

Loss or theft of, or
prevention of access
to, data which contains
intellectual property or
privacy of Data
Subjects causes a
breach of the DPA
2019.
Multiple unmanaged requests for
data from the tier 1 corporate
client environment without lawful
use, scope, delivery and
management protocols being
followed. Refusals for non
compliment delivery causing
contract risk.
Strict adherence to GDPR / DPA 2019
protocols. No delivery without a full DSA in
place and agreed with parties. DSA
creation by external GDPR expert law firm.

SECTION 172(1) STATEMENT
S172(1) of the Companies Act requires Directors of a Company to act in the way they consider, in good faith, would be the most likely to promote the success of the Company for the benefit of its members as a whole, taking into account:
- The likely consequences of any decision in the long term
- The interests of the Company's employees
- The need to foster the Company's business relationships with suppliers, customers and others
- The impact of the Company's operations on the community and environment
- The desirability of the Company maintaining a reputation for high standards of business conduct; and

The nature of the business means we have a continuous dialogue with a wide group of stakeholders and the views of our stakeholders are taken into account before decisions are put to Board for a decision.

The disclosures set out below are some examples of how the Directors have had regard to the matters set out in s172 (1) (a) to (f) when discharging their duties.

Please also refer to information on pages 6 - 8 in the Strategic Report and page 9 in the Directors' Report regarding information about the environment, sustainability, the community and employees, including matters in relation to anti-corruption, bribery and modern-day slavery. All being matters where the Board of Directors have had regard to when performing their duties.

Board Decision Application of s172
To work with Serco as strategic security partner and
mobilise the government RM3830 'rebid' tender
starting on orders for Covid 19 test sites despite
Serco walking back their agreements reached
under Heads of Term with SSGC for rebid.
The Board considered the social need to deliver test
sites and the medium and long-term benefits that
would be derived for employees, suppliers and the
public in mobilising despite no contract availability.
Being satisfied with the perceived benefits to all
stakeholders the Board approved the order
processing.




To continue to work with Serco despite SSGC
concerns around the capability of Serco to
accurately implement a large scale electronic billing
system for the Covid-19 project. This risk was
highlighted in last years report.
While the company extended considerable effort
outlining concerns around data efficacy and likely
service impact the board ultimately took the view
that given the social need to fulfil government
orders the impact to staff and suppliers could be
managed and that the medium-term benefits to staff
and suppliers of ongoing service delivery
outweighed the alternative managed exit.


SSGC LIMITED (REGISTERED NUMBER: 04494633)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2022

KEY PERFORMANCE INDICATORS
The board continue to use both financial and non-financial key performance indicators to manage the business. The business maintains a strong management information function which is focused on real time and accurate reporting. Such reporting sees particular focus on client and staff satisfaction levels, contract delivery metrics, account profitability and cash flow.

The key financial performance indicators used to review and monitor the Company are shown below:

Metric 2022 [2022]* 2021
Revenue (£) 80.18m 80.18m 104.30m
Gross Profit (£) 6.58m 6.58m 13.47m
Gross Profit % 8.2 8.2 12.9
Net Assets (£) 1.66m 3.86m 5.58m

The 2022 figures are prepared on the basis that the third party shifts listed by Serco and not being under contract dispute will be resolved and are therefore included in results. Some partial allowance for Serco collection on the remainder is also included based on Serco's agreement to mediate but in the main the remaining debt due is provided for as it remains uncertain and only appears in the 2022* table results for clarity and not in the reported 2022 financial results.

*These figures represent the same KPI set without the outstanding Serco compliance matter for comparison purposes only.

The key non-financial performance indicators used to review and monitor the Company are shown below:
Unable to Cover (UTC) % - The highest level SLA aligned customer delivery KPI result. Used in our bids and performance data available for existing clients only
Staff Survey Scores - tracking scores across multiple performance categories

GOING CONCERN AND DEVELOPMENT
Note 2 to the accounts gives a full explanation of the board's assessment of going concern and the post year end net current liabilities position which is significantly linked to the Serco issues set out above.

The board remain optimistic in the continued underlying growth of the business. The going concern forecast and review work for this years report is based on current Order Book forecasts alone and the associated profitability and cashflow forecasts. No collection of the outstanding debt associated with the Serco matter are assumed.

Post year end, the trading structure of the business has evolved and the company has rationalised its workforce and assets as a result of the end of the COVID contracts, which accounted for approximately 90% of the company's revenue. This has enabled the company to synchronize its workforce and costs in line with the new contracts and tenders that it has won and submitted.

At the date of this report, the business development pipeline is currently over £50m and growing each quarter.

In addition, the acquisition within the group has performed exceptionally. This is however reported elsewhere.

ENVIRONMENTAL ACTIONS STATEMENT AND SECR
The Board believes good environmental practices, such as recycling, minimising waste and energy conservation, support strategy by our enhancing reputation. However, due to the nature of our activities generally, we do not have a significant environmental impact.

Efficiency Actions Taken
The following actions have been taken by the Company in the year:
- Increased use of electric vehicles
- Widespread use of a paperless approach wherever possible
- Mothballing of the unutilised head office areas


SSGC LIMITED (REGISTERED NUMBER: 04494633)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2022

SOCIAL MATTERS, CHARITIES AND COMMUNITY
The Board believes running a profitable and growing business, which creates jobs and contributes to the economic success of the areas in which it operates, is a platform for good corporate social responsibility. We have a long-standing commitment to support our staff in developing themselves through providing free security academy training available to all and working with and providing donations to charities aligned to our staff centric mission.

Over then Covid 19 test programme mobilisation we benefited from our strong relationships with veterans networks. Our primary charitable donation for the year was a charity focused on giving veterans a helping hand back into long term work. An example of the work undertaken by the charity being work placements the annual Race of Remembrance.

SUSTAINABILITY
To deliver strong, sustainable results over the long term we recognise we need to operate in a sustainable manner and have therefore adopted core principles to business operations which provide a framework for both managing risk and maintaining its position as a good corporate citizen.

DEVELOPING OUR PEOPLE
The Company continues to grow and create opportunities for staff at all levels. Our success in developing people is based on finding the right blend of learning on the job, through engaging and challenging tasks, learning from colleagues through collaboration, coaching and mentoring, and formal learning through structured training, education and development programmes.

The Company will continue to provide opportunities through growth to those that want to advance whilst also respecting that for many a fulfilling role is doing their current work to the best of their abilities in a supportive environment.

DIVERSITY AND INCLUSION
SSGC practice equal opportunities and welcome diversity in all its forms, recognising the value of diversity in the workplace and its rewards of encouraging creativity, broader cultural understanding and access to a wider pool of talent.

DISABLED EMPLOYEES
The Company gives full consideration to applications for employment from disabled persons where the requirements for the job can be adequately fulfilled by a disabled person. Where existing employees become disabled, it is the Company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.

EMPLOYEE CONSULTATION
The Company places considerable value on the involvement of its employees and making sure that employees feel involved in the Company and are committed to its goals. If we are to keep them engaged, communication must be a two-way culture that encourages employee feedback. To that end we formalise the staff feedback process through regular surveys and publish transparently the results, using these are sources for our development planning.

POLITICAL DONATIONS
The Company made no political donations in the year (2021: nil)


SSGC LIMITED (REGISTERED NUMBER: 04494633)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2022

MODERN SLAVERY
SSGC is committed to preventing acts of modern slavery and human trafficking from occurring within its business and supply chain and expects its suppliers to adopt the same high standards. As part of our commitment to combating modern slavery, we have adopted a policy which covers our appointment of suppliers. We expect all of our suppliers to adhere to our Anti-Slavery Policy and will not tolerate slavery and human trafficking within our supply chains.

ANTI-BRIBERY POLICY
We value our reputation for ethical behaviours and upholding the utmost integrity in our business. SSGC does not tolerate bribery and corruption and we ensure all our employees and suppliers are aware of our approach. We have clear and unambiguous policies, provide training to staff and encourage the reporting of suspicious matters.

ON BEHALF OF THE BOARD:





Mr G K Dungworth - Director


13 November 2023

SSGC LIMITED (REGISTERED NUMBER: 04494633)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MAY 2022

The directors present their report with the financial statements of the company for the year ended 31 May 2022.

DIVIDENDS
No interim dividend was paid during the year. The directors recommend a final dividend of £41000 per share.

The total distribution of dividends for the year ended 31 May 2022 will be £ 4,100,000 .

DIRECTORS
Mr D R Stubbs has held office during the whole of the period from 1 June 2021 to the date of this report.

Other changes in directors holding office are as follows:

Mr G K Dungworth - appointed 31 May 2022

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director 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 company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





Mr G K Dungworth - Director


13 November 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SSGC LIMITED

Opinion
We have audited the financial statements of SSGC Limited (the 'company') for the year ended 31 May 2022 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 company's affairs as at 31 May 2022 and of its 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 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.

Material uncertainty related to going concern
We draw attention to Note 2 in the financial statements, which indicates that the company's post balance sheet date results reflect that its current liabilities exceeded its total assets.

As stated in Note 2, these events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.

Our opinion is not modified in respect of this matter.

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.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Emphasis of matter
We draw attention to Note 12 to the financial statements which details the value of the bad debt provision included within the financial statements.

The matter is detailed fully within the principal risks and uncertainties section of the Strategic Report.

The matter is ongoing however the latest information at the date of this report has been included by the Directors.

Our opinion is not modified in respect of this matter.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SSGC LIMITED


Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page nine, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SSGC LIMITED


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:

We obtained an understanding of the legal and regulatory framework applicable to both the company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Companies Act 2006, UK GAAP (FRS102) and relevant tax legislation.

We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included:

- making enquires of directors and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud;

- obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

- assessing the design effectiveness of the controls in place to prevent and detect fraud;

- assessing the risk of management override including identifying and testing journal entries;

- challenging the assumptions and judgements made by management in its significant accounting estimates.

Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SSGC LIMITED


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.




M W Lloyd (Senior Statutory Auditor)
for and on behalf of Haines Watts
Chartered Accountants & Statutory Auditors
Old Station House
Station Approach
Swindon
Wiltshire
SN1 3DU

13 November 2023

SSGC LIMITED (REGISTERED NUMBER: 04494633)

INCOME STATEMENT
FOR THE YEAR ENDED 31 MAY 2022

31/5/22 31/5/21
Notes £    £   

TURNOVER 80,181,609 104,299,455

Cost of sales 73,598,088 90,824,256
GROSS PROFIT 6,583,521 13,475,199

Administrative expenses 6,246,443 4,560,144
337,078 8,915,055

Other operating income - 17,009
OPERATING PROFIT 4 337,078 8,932,064

Interest receivable and similar income 6,463 4,469
343,541 8,936,533

Interest payable and similar expenses 6 130,943 75,469
PROFIT BEFORE TAXATION 212,598 8,861,064

Tax on profit 7 38,865 1,570,082
PROFIT FOR THE FINANCIAL YEAR 173,733 7,290,982

SSGC LIMITED (REGISTERED NUMBER: 04494633)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2022

31/5/22 31/5/21
Notes £    £   

PROFIT FOR THE YEAR 173,733 7,290,982


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

173,733

7,290,982

SSGC LIMITED (REGISTERED NUMBER: 04494633)

STATEMENT OF FINANCIAL POSITION
31 MAY 2022

31/5/22 31/5/21
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 190,034 309,741
Tangible assets 10 132,394 168,061
322,428 477,802

CURRENT ASSETS
Stocks 11 974,282 1,911,566
Debtors 12 10,294,968 16,285,850
Cash at bank and in hand 1,313,697 8,092,196
12,582,947 26,289,612
CREDITORS
Amounts falling due within one year 13 11,246,474 21,182,246
NET CURRENT ASSETS 1,336,473 5,107,366
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,658,901

5,585,168

CAPITAL AND RESERVES
Called up share capital 18 300 300
Retained earnings 19 1,658,601 5,584,868
SHAREHOLDERS' FUNDS 1,658,901 5,585,168

The financial statements were approved by the Board of Directors and authorised for issue on 13 November 2023 and were signed on its behalf by:





Mr G K Dungworth - Director


SSGC LIMITED (REGISTERED NUMBER: 04494633)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2022

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 June 2020 300 309,886 310,186

Changes in equity
Dividends - (2,016,000 ) (2,016,000 )
Total comprehensive income - 7,290,982 7,290,982
Balance at 31 May 2021 300 5,584,868 5,585,168

Changes in equity
Dividends - (4,100,000 ) (4,100,000 )
Total comprehensive income - 173,733 173,733
Balance at 31 May 2022 300 1,658,601 1,658,901

SSGC LIMITED (REGISTERED NUMBER: 04494633)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2022

31/5/22 31/5/21
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (3,224,385 ) 11,959,257
Interest paid (130,943 ) (75,469 )
Tax paid (1,156,071 ) (1,820,653 )
Net cash from operating activities (4,511,399 ) 10,063,135

Cash flows from investing activities
Purchase of tangible fixed assets (2,500 ) (186,193 )
Interest received 6,463 4,469
Net cash from investing activities 3,963 (181,724 )

Cash flows from financing activities
Amount introduced by directors 17,999 206,000
Amount withdrawn by directors (2,000 ) (205,628 )
Equity dividends paid (4,100,000 ) (2,016,000 )
Net cash from financing activities (4,084,001 ) (2,015,628 )

(Decrease)/increase in cash and cash equivalents (8,591,437 ) 7,865,783
Cash and cash equivalents at
beginning of year

2

8,092,196

226,413

Cash and cash equivalents at end of
year

2

(499,241

)

8,092,196

SSGC LIMITED (REGISTERED NUMBER: 04494633)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2022

1. RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM
OPERATIONS
31/5/22 31/5/21
£    £   
Profit for the financial year 173,733 7,290,982
Depreciation charges 157,874 143,593
Finance costs 130,943 75,469
Finance income (6,463 ) (4,469 )
Taxation 38,865 1,570,082
494,952 9,075,657
Decrease/(increase) in stocks 937,284 (1,694,613 )
Decrease/(increase) in trade and other debtors 5,952,018 (12,223,307 )
(Decrease)/increase in trade and other creditors (10,608,639 ) 16,801,520
Cash generated from operations (3,224,385 ) 11,959,257

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 May 2022
31/5/22 1/6/21
£    £   
Cash and cash equivalents 1,313,697 8,092,196
Bank overdrafts (1,812,938 ) -
(499,241 ) 8,092,196
Year ended 31 May 2021
31/5/21 1/6/20
£    £   
Cash and cash equivalents 8,092,196 226,413


3. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1/6/21 Cash flow At 31/5/22
£    £    £   
Net cash
Cash at bank and in hand 8,092,196 (6,778,499 ) 1,313,697
Bank overdrafts - (1,812,938 ) (1,812,938 )
8,092,196 (8,591,437 ) (499,241 )
Total 8,092,196 (8,591,437 ) (499,241 )

SSGC LIMITED (REGISTERED NUMBER: 04494633)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2022

1. STATUTORY INFORMATION

SSGC Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

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.

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.

Critical accounting judgements and key sources of estimation uncertainty
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Bad debt provision

At the date of this report Serco are withholding in the region of £3.6m of unpaid invoices. In these accounts, management have provided for £2.2m of bad debts in respect of this matter.

Management anticipate resolution on two material matters in relation to the current Serco withholding of £3.6m.

Firstly, management have not provided for £870k of the unpaid Serco debt as this sits entirely outside of the Serco disputed contract and it is unclear why Serco continue to hold these 'off contract' monies.

In relation to the remaining £2.7m which does sit inside the Serco disputed contract, management have not provided for £500k and have provided for the remaining £2.2m. The amount not provided for reflects current discussions on settlement. While £500k is not acceptable to SSGC, it represents managements current knowledge. Mediation is currently being discussed and management anticipate either a successful outcome or a move to litigation.

Related liabilities

The £2.7m 'in contract' Serco dispute affects around twenty sub-suppliers for whom SSGC was simply the contracting intermediary, some being at Serco's direct request.

Serco dispute in the region of 2,500 specific staff did not attend shifts, the bulk being with these sub-suppliers. These sub-suppliers are owed £1.9m of the £2.7m Serco dispute, and this dispute is flowed through to the affected sub-suppliers. Management have retained the full £1.9m liability in accounts.

If a mediated settlement is pursued it is anticipated that the carried liability would materially change. Conversely, for this reason a mediated settlement may be complex to secure, involving practically these sub-suppliers.

SSGC LIMITED (REGISTERED NUMBER: 04494633)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2022

2. ACCOUNTING POLICIES - continued

Going concern
The accounts have been prepared on a going concern basis.

Post year end, the company's current liabilities exceed its current assets. The current liabilities include the full £1.9m supplier liability and all associated tax liabilities related to the carrying value of the disputed Serco contract. Current assets exclude £2.2m, being a provision against the disputed Serco debt, as detailed in the Strategic Report and the critical accounting judgements and key sources of estimation uncertainty accounting policy. Management is unable to determine, with any certainty, the timing and value of the cash outflow to the suppliers directly linked to the Serco contract dispute.

The dispute with Serco, under certain circumstances, is flowed through to suppliers who delivered directly to Serco operated sites, the company being a contracting intermediary. The company is currently intending to pursue Serco for contract resolution under mediation on behalf of all affected suppliers and itself. At the point of report, we expect resolution within twelve months through mediation, and have therefore included the full amount owed to suppliers in current liabilities while accounting for a bad debt provision on the trade debtor balance. The mediation process is currently under discussion. If mediated successfully, the supplier liabilities of £1.9m are expected to be realigned to the payment secured under mediation from Serco. If the company is not satisfied with mediation and litigation is required to progress matters by either the company and/or the suppliers, then matters are expected to take in excess of the twelve months considered under going concern.

The company expects to resolve the Serco tax related matter in 2024 as the wider Serco matter resolves. If the Serco claim is validated, a substantial overpayment of wages and associated taxes has occurred which will require correction. Conversely, if the claim is settled, funds for settlement of tax matters will have been secured.

On the back of securing the RM6257 government procurement award, the company is pursuing debt and equity fund-raising opportunities and expects substantial additional cash to be available in 2024, but has not allowed for this in its going concern assessment. Only the contractual order book has been used for forecasts and going concern assessment resulting trading income.

The company has secured substantial new orders that mobilise into April 2024, at which point they are highly cash generative. Outside of the order book, the company has a sales work in progress pipeline of £52m that we expect to secure a significant portion of during 2024 and which, if secured, will deliver substantial additional cash reserves.

As a result, the Directors resolved that the going concern basis is appropriate.

The Directors recognise that there is a material uncertainty related to the above events and conditions that may cast significant doubt on the Company's ability to continue as a going concern, and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business.

Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

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

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2015, is being amortised evenly over its estimated useful life of ten years.

SSGC LIMITED (REGISTERED NUMBER: 04494633)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2022

2. ACCOUNTING POLICIES - continued

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.

Computer software is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Computer equipment - 20% on cost

Financial instruments
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 statement of financial position date.


SSGC LIMITED (REGISTERED NUMBER: 04494633)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2022

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Related party transactions
The company discloses transactions with related parties which are not wholly owned with the same group. It does not disclose transactions with its parent or with members of the same group that are wholly owned.

3. EMPLOYEES AND DIRECTORS
31/5/22 31/5/21
£    £   
Wages and salaries 47,081,813 39,405,955
Social security costs 3,771,243 4,202,401
Other pension costs 501,436 392,326
51,354,492 44,000,682

The average number of employees during the year was as follows:
31/5/22 31/5/21

Staff 2,387 1,923

31/5/22 31/5/21
£    £   
Directors' remuneration 304,167 138,542

Information regarding the highest paid director for the year ended 31 May 2022 is as follows:
31/5/22
£   
Emoluments etc 154,167

SSGC LIMITED (REGISTERED NUMBER: 04494633)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2022

4. OPERATING PROFIT

The operating profit is stated after charging:

31/5/22 31/5/21
£    £   
Other operating leases 41,424 71,190
Depreciation - owned assets 38,167 20,553
Goodwill amortisation 48,843 48,843
Computer software amortisation 70,864 74,197
Foreign exchange differences 3,986 2,222
Formation costs - 755

5. AUDITORS' REMUNERATION
31/5/22 31/5/21
£    £   
Fees payable to the company's auditors for the audit of the
company's financial statements

88,414

47,870
Auditors' remuneration for non audit work 1,446 18,499

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31/5/22 31/5/21
£    £   
Bank interest 130,943 75,469

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31/5/22 31/5/21
£    £   
Current tax:
UK corporation tax - 1,658,998

Deferred tax 38,865 (88,916 )
Tax on profit 38,865 1,570,082

In the Budget 2020, the government announced that the corporation tax main rate (for all profits except ring fence profits) for the years starting 1 April 2020 and 2021 would remain at 19%. In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (rather than remaining at 19%, as previously enacted). This new law was substantively enacted on 24 May 2021.

In the Autumn Statement in November 2022, the government confirmed the increase in corporation tax rate to 25% from April 2023.

8. DIVIDENDS
31/5/22 31/5/21
£    £   
Ordinary shares of 1 each
Final 4,100,000 -
Interim - 2,016,000
4,100,000 2,016,000

SSGC LIMITED (REGISTERED NUMBER: 04494633)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2022

9. INTANGIBLE FIXED ASSETS
Computer
Goodwill software Totals
£    £    £   
COST
At 1 June 2021
and 31 May 2022 350,000 370,986 720,986
AMORTISATION
At 1 June 2021 183,119 228,126 411,245
Amortisation for year 48,843 70,864 119,707
At 31 May 2022 231,962 298,990 530,952
NET BOOK VALUE
At 31 May 2022 118,038 71,996 190,034
At 31 May 2021 166,881 142,860 309,741

10. TANGIBLE FIXED ASSETS
Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 June 2021 1,416 184,798 5,131 191,345
Additions - - 2,500 2,500
At 31 May 2022 1,416 184,798 7,631 193,845
DEPRECIATION
At 1 June 2021 352 20,020 2,912 23,284
Charge for year 283 36,960 924 38,167
At 31 May 2022 635 56,980 3,836 61,451
NET BOOK VALUE
At 31 May 2022 781 127,818 3,795 132,394
At 31 May 2021 1,064 164,778 2,219 168,061

11. STOCKS
31/5/22 31/5/21
£    £   
Work-in-progress 974,282 1,911,566

SSGC LIMITED (REGISTERED NUMBER: 04494633)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2022

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/5/22 31/5/21
£    £   
Trade debtors 9,592,774 15,809,997
Amounts owed by group undertakings 45,912 -
Other debtors 368,280 170,780
Directors' current account 105,906 123,905
Deferred tax asset 49,737 88,602
Prepayments and accrued income 132,359 92,566
10,294,968 16,285,850

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.


Trade debtors are stated after provisions for impairment of £2.2m. The Directors review of the matter is detailed in the KPI table in the Strategic Report.

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/5/22 31/5/21
£    £   
Bank loans and overdrafts (see note 14) 1,812,938 -
Trade creditors 5,526,098 6,439,835
Tax 525,541 1,681,612
Social security and other taxes 652,625 2,925,179
VAT 887,110 4,422,540
Other creditors 1,180,632 5,260,772
Directors' current account 2,000 2,000
Accruals and deferred income 659,530 450,308
11,246,474 21,182,246

14. LOANS

An analysis of the maturity of loans is given below:

31/5/22 31/5/21
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 1,812,938 -

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31/5/22 31/5/21
£    £   
Within one year 52,333 50,333
Between one and five years 111,333 214,167
163,666 264,500

SSGC LIMITED (REGISTERED NUMBER: 04494633)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2022

16. SECURED DEBTS

The following secured debts are included within creditors:

31/5/22 31/5/21
£    £   
Invoice discounting & finance 1,812,938 43,750

Invoice discounting & financing is secured by way of fixed and floating charges over the assets and undertaking of the company.

17. DEFERRED TAX
£   
Balance at 1 June 2021 (88,602 )
Provided during year 38,865
Balance at 31 May 2022 (49,737 )

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31/5/22 31/5/21
value: £    £   
300 Ordinary 1 300 300

19. RESERVES
Retained
earnings
£   

At 1 June 2021 5,584,868
Profit for the year 173,733
Dividends (4,100,000 )
At 31 May 2022 1,658,601

20. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 May 2022 and 31 May 2021:

31/5/22 31/5/21
£    £   
Mr D R Stubbs
Balance outstanding at start of year 123,905 122,277
Amounts advanced - 1,628
Amounts repaid (17,999 ) -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 105,906 123,905

SSGC LIMITED (REGISTERED NUMBER: 04494633)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2022

20. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued

31/5/2231/5/21
££
Mr G K Dungworth
Balance outstanding at start of year(2,000)-
Amounts advanced--
Amounts repaid-(2,000)
Amounts written off--
Amounts waived--
Balance outstanding at end of year(2,000)(2,000)

21. RELATED PARTY DISCLOSURES

During 2022 the company purchased £985 of services from Tutandos Limited, a company owned by Mr G Dungworth and Mr D Stubbs, directors of the company. No amounts were outstanding at the year-end.

At the year end, a loan balance of £120,209 (2021: £20,856) was owed to the company by Tutandos Limited. This loan is unsecured, interest free, has no fixed date of repayment and is repayable on demand.

At the year end, a loan balance of £144,859 (2021: £105,212) was owed to the company by Instaeng Limited, a company owned by Mr G Dungworth and Mr D Stubbs, directors of the company. This loan is unsecured, interest free, has no fixed date of repayment and is repayable on demand.

22. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is SGTS Holdings Limited.

SGTS Holdings Limited is a company registered in the UK, company number 13007666, registered address Unit 19 Ergo Business Park, Kelvin Road, Swindon, United Kingdom, SN3 3JW.