Company registration number 09049538 (England and Wales)
4 SQUARE SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
4 SQUARE SERVICES LIMITED
COMPANY INFORMATION
Directors
S Diggines
M A Johnson
Company number
09049538
Registered office
Fleetwood House
480 Bath Road
Slough
Berkshire
SL1 6BB
Auditor
MGR MAP Limited
55 Loudoun Road
St John's Wood
London
NW8 0DL
4 SQUARE SERVICES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Statement of income and retained earnings
8
Statement of financial position
9
Statement of cash flows
10
Notes to the financial statements
11 - 19
4 SQUARE SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

Fair Review of the Business

The directors were disappointed with the performance of the company during 2022, with the results significantly impacted by the consequence of increased costs of steel, timber and other building materials, logistical challenges, and labour shortages.

Two of the large, fixed price contracts that spilled over to 2022 as a result of Brexit and Covid contributed to the significant loss reported for the year. The directors are currently in negotiations for a contract uplift with the respective customers and are hopeful of a successful outcome.

Principal Risks and Uncertainties

The directors having reviewed the accounts, and after making appropriate enquiries, consider that the company has adequate resources to continue in operation for the foreseeable future and have therefore continued to adopt the going concern basis in preparing the financial statements.

 

Key performance indicators

The directors consider the turnover, gross profit margin and operating profit to be the key performance indicators.

 

2022                 2021

£‘000                £‘000

Turnover                                                  22,037              21,328

Operating (loss)                            (2,040)            (386)

Gross (loss)/profit margin                          (7%)               2%

On behalf of the board

S Diggines
Director
22 February 2024
4 SQUARE SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activities of the company are those of property development and construction services.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

T S Sangha
(Resigned 24 March 2023)
S Diggines
(Appointed 14 July 2022)
M A Johnson
(Appointed 14 July 2022)
Future developments

We achieved our budgeted turnover for 2023 of £15m with a positive operating profit. Our 2024 turnover budget is £20m and the forecast for 2025 is £25m. Combined the 2023-25 period are expected to achieve earnings to recover the losses incurred in the 2021-22 period.

 

Our work stream going forward continues to be a mix of multi-storey apartment buildings and residential housing. The directors are confident of the operations for the year ahead and the future prospects of the company.

 

Auditor

MGR MAP Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
S Diggines
Director
22 February 2024
4 SQUARE SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

4 SQUARE SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF 4 SQUARE SERVICES LIMITED
- 4 -

Qualified opinion on financial statements

 

We were engaged to audit the financial statements of 4 Square Services Limited (the 'company') for the year ended 31 December 2022 which comprise the statement of income and retained earnings, the statement of financial position, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

We do not express an opinion on the accompanying financial statements. Because of the significance of the matter described in the 'Basis for Disclaimer of Opinion' section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.

Basis for disclaimer of opinion

 

During the year the company was working on two key contracts. These were tendered as fixed price contracts however once the contracts had commenced considerable difficulties were encountered with the performance of the contracts, most notably the price of materials and obtaining of suitable subcontractors at the rates that had been originally envisaged and included in the original contract budget. As the company has incurred significant additional costs in this regard a contract value uplift has been submitted to the customers. The directors are confident that the uplifts will be agreed by their customers and therefore this uplift has been included when arriving at the cost of sales for the period included in the income statement and value of long term contract work in progress in the statement of financial position.

 

Whilst undertaking our work we were unable to obtain sufficient appropriate audit evidence as to the outcome of these claims. We are therefore unable to form an opinion as to the accuracy of cost of sales as recorded in the income statement and long term contract work in progress in the statement of financial position.

 

As a result of these matters, we were unable to determine whether any adjustments might have been found necessary in respect of cost of sales and long term contract work in progress, and the elements making up the statement of comprehensive income, statement of changes in equity and statement of cash flows.

 

Further, due to the fact that we were unable to obtain evidence on these claims, we were also unable to arrive at an opinion as to whether to company is a going concern and whether the disclosures in note 1.2 on the material uncertainty regarding going concern were appropriate.

 

 

 

 

 

 

 

 

 

 

 

 

4 SQUARE SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF 4 SQUARE SERVICES LIMITED
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

Notwithstanding our disclaimer of an opinion on the financial statements, in our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

4 SQUARE SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF 4 SQUARE SERVICES LIMITED
- 6 -
Auditor's responsibilities for the audit of the financial statements

Our responsibility is to conduct an audit of the company’s financial statements in accordance with International Standards on Auditing (UK) and to issue an auditor’s report.

However, because of the matter described in the basis for disclaimer of opinion section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.

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.

 

Auditor’s statement on detecting irregularities, including fraud

 

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

 

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

 

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of Health and Safety regulations due to the nature of industry company operates in and work company undertakes. 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 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 posting inappropriate journal entries to manipulate long term contracts work in progress balances carried forward as at financial year end and recognition of transactions in the correct period. Audit procedures performed included:

 

 

 

 

 

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.

4 SQUARE SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF 4 SQUARE SERVICES LIMITED
- 7 -

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

 

 

 

 

 

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

V Nadarajah-Pillai
Senior Statutory Auditor
For and on behalf of MGR MAP Limited
22 February 2024
Chartered Accountants
Statutory Auditor
55 Loudoun Road
St John's Wood
London
NW8 0DL
4 SQUARE SERVICES LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
Year
Period
ended
ended
31 December
31 December
2022
2021
Notes
£
£
Turnover
22,037,026
21,328,184
Cost of sales
(23,588,217)
(20,850,385)
Gross (loss)/profit
(1,551,191)
477,799
Administrative expenses
(488,698)
(864,180)
Operating loss
3
(2,039,889)
(386,381)
Interest receivable and similar income
6
11,721
7,814
Interest payable and similar expenses
7
(56,009)
(14,723)
Loss before taxation
(2,084,177)
(393,290)
Tax on loss
8
-
0
74,204
Loss for the financial year
(2,084,177)
(319,086)
Retained earnings brought forward
2,866,439
3,185,525
Retained earnings carried forward
782,262
2,866,439

The income statement has been prepared on the basis that all operations are continuing operations.

4 SQUARE SERVICES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2022
31 December 2022
- 9 -
2022
2021
Notes
£
£
£
£
Current assets
Stocks
9
3,019,415
506,187
Debtors falling due after more than one year
11
826,365
353,908
Debtors falling due within one year
11
5,439,673
7,754,872
Cash at bank and in hand
61,794
399,587
9,347,247
9,014,554
Creditors: amounts falling due within one year
12
(7,992,068)
(5,375,198)
Net current assets
1,355,179
3,639,356
Creditors: amounts falling due after more than one year
13
(322,917)
(522,917)
Net assets
1,032,262
3,116,439
Capital and reserves
Called up share capital
16
250,000
250,000
Profit and loss reserves
782,262
2,866,439
Total equity
1,032,262
3,116,439
The financial statements were approved by the board of directors and authorised for issue on 22 February 2024 and are signed on its behalf by:
M A Johnson
Director
Company Registration No. 09049538
4 SQUARE SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
21
(106,005)
(1,748,608)
Interest paid
(56,009)
(14,723)
Income taxes paid
-
0
(94,810)
Net cash outflow from operating activities
(162,014)
(1,858,141)
Investing activities
Interest received
11,721
7,814
Net cash generated from investing activities
11,721
7,814
Financing activities
Proceeds from new bank loans
-
0
750,000
Repayment of bank loans
(187,500)
(52,083)
Net cash (used in)/generated from financing activities
(187,500)
697,917
Net decrease in cash and cash equivalents
(337,793)
(1,152,410)
Cash and cash equivalents at beginning of year
399,587
1,551,997
Cash and cash equivalents at end of year
61,794
399,587
4 SQUARE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
1
Accounting policies
Company information

4 Square Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Fleetwood House, 480 Bath Road, Slough, Berkshire, SL1 6BB.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. However, the directors are aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern. Uncertainty in relation to the valuation of long term contract work in progress on two key contracts which have been included in the financial statements based on predicted income estimated on application for contract uplift made. Negotiations have been ongoing for several months and there was no third party evidence available in support of the claim to secure this additional income. Failure to obtain the uplift will severely impact the company's ability to continue to trade for foreseeable future.

1.3
Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

 

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered .

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives.

 

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

 

1.5
Stocks

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

4 SQUARE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -

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

1.6
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

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

4 SQUARE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

4 SQUARE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Operating loss
2022
2021
Operating loss for the period is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
11,000
11,000
Depreciation of owned tangible fixed assets
-
0
993
Operating lease charges
17,864
9,036
4
Employees

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

2022
2021
Number
Number
Operations
17
22

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
1,039,748
1,429,937
Social security costs
123,717
165,675
Pension costs
16,127
24,487
1,179,592
1,620,099
5
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
89,385
-
0
Company pension contributions to defined contribution schemes
1,238
-
0
90,623
-
0
4 SQUARE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
6
Interest receivable and similar income
2022
2021
£
£
Interest income
Other interest income
11,721
7,814
7
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
50,760
14,723
Other finance costs:
Other interest
5,249
-
0
56,009
14,723
8
Taxation
2022
2021
£
£
Current tax
Adjustments in respect of prior periods
-
0
(74,015)
Deferred tax
Origination and reversal of timing differences
-
0
(189)
Total tax charge/(credit)
-
0
(74,204)

The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Loss before taxation
(2,084,177)
(393,290)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(395,994)
(74,725)
Tax effect of expenses that are not deductible in determining taxable profit
-
0
710
Unutilised tax losses carried forward
395,994
-
0
Reversing timing differences
-
0
(189)
Taxation charge/(credit) for the period
-
(74,204)
4 SQUARE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
9
Stocks
2022
2021
£
£
Work in progress
3,019,415
506,187
10
Construction contracts
2022
2021
£
£
Contracts in progress at the reporting date
Gross amounts owed by contract customers included in debtors
1,756,504
1,637,262
11
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
2,571,740
4,939,370
Gross amounts owed by contract customers
1,756,504
1,637,262
Corporation tax recoverable
74,015
74,015
Other debtors
988,856
1,040,084
Prepayments and accrued income
48,558
64,141
5,439,673
7,754,872
2022
2021
Amounts falling due after more than one year:
£
£
Trade debtors
826,365
353,908
Total debtors
6,266,038
8,108,780
12
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans
14
187,500
175,000
Trade creditors
6,432,920
3,884,640
Taxation and social security
746,399
485,026
Other creditors
253,300
3,711
Accruals and deferred income
371,949
826,821
7,992,068
5,375,198
4 SQUARE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
13
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
14
322,917
522,917

The bank loans are repayable over sixty equally monthly instalments. Interest is payable on these loans @ 3.39% per annum over bank's base rate.

14
Loans and overdrafts
2022
2021
£
£
Bank loans
510,417
697,917
Payable within one year
187,500
175,000
Payable after one year
322,917
522,917

Bank loans and overdrafts are secured by a fixed and floating charge over the assets of the company in favour of National Westminster Bank Plc.

 

The company, together with other connected companies, has provided a guarantee in favour of National Westminster Bank Plc to secure all current and future borrowings.

15
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
16,127
24,487

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

16
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
250,000
1,000
Ordinary A shares of £1 each
249,000
249,000
-
249,000
250,000
250,000
250,000
250,000
17
Financial commitments, guarantees and contingent liabilities

The directors were not aware of the existence of any contingent liabilities at the year end.

4 SQUARE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
18
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2022
2021
£
£
Within one year
18,103
18,103
Between two and five years
21,283
39,386
39,386
57,489
19
Events after the reporting date

The directors were not aware of any events after the reporting date which would materially affect the financial statements.

20
Related party transactions

Included under other debtors are loans to the following connected companies:

 

The loans are on normal commercial terms and are unsecured.

 

Included under trade debtors are balances due from following connected companies:

 

Included under other creditors are loans from the following connected companies:

21
Cash absorbed by operations
2022
2021
£
£
Loss for the year after tax
(2,084,177)
(319,086)
Adjustments for:
Taxation charged/(credited)
-
0
(74,204)
Finance costs
56,009
14,723
Investment income
(11,721)
(7,814)
Depreciation and impairment of tangible fixed assets
-
0
993
Movements in working capital:
Increase in stocks
(2,513,228)
(195,942)
Decrease/(increase) in debtors
1,842,742
(1,550,856)
Increase in creditors
2,604,370
383,578
Cash absorbed by operations
(106,005)
(1,748,608)
4 SQUARE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 19 -
22
Analysis of changes in net debt
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
399,587
(337,793)
61,794
Borrowings excluding overdrafts
(697,917)
187,500
(510,417)
(298,330)
(150,293)
(448,623)
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