REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
FOR |
S C L INTERIORS (LONDON) LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
FOR |
S C L INTERIORS (LONDON) LIMITED |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Statement of Income and Retained Earnings | 11 |
Balance Sheet | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 15 |
S C L INTERIORS (LONDON) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants, Tax Consultants |
& Statutory Auditors |
27-29 Old Market |
Wisbech |
Cambridgeshire |
PE13 1NE |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
The directors submit their strategic report for the year ended 30 September 2023. |
Review of the Business |
During the year ended 30th September 2023, the company has been engaged with its core operations covering Drylining, SFS and Screeding. |
The company turnover has exceeded its short-term target. The directors consider that the next years trading will also achieve the company's longer-term target of turnover and will set the company in good stead for its next phase of operations and longevity of trading. |
The company's key financial and other performance indicators during the year were as follows: |
30 September 2023 | 30 September 2022 | Change |
£ | £ |
Turnover | 18,631,204 | 13,607,085 | 36.92% |
Gross Profit | 2,744,152 | 1,312,422 | 109.09% |
Equity | 1,663,295 | 630,936 | 163.19% |
Average number of employees | 16 | 15 | 6.67% |
The total equity increased in the year from £630,936 to £1,663,295 as a result of the profit after tax of £1,332,359 less dividends declared during the year of £300,000. |
The core purpose of SCL Interiors (London) Limited is to provide specialist fit out and drylining services and SFS. The company looks to maintain its position in the marketplace by offering reliable, responsive and competitive services which exceed the needs and expectations of its customers. |
We expect to maintain our core operations by engaging with new customer markets available in the ever-changing industry in London. |
Business strategic plan principles are as detailed below: |
- Continue to secure desirable trade |
- Continue to grow turnover and level of business for its operations |
- Improve its client base |
- Educating and supporting its current work force via onsite and 3rd party training |
Objectives |
The directors expect the levels of business to increase as the company continues to grow. This will be achieved by being more selective with our projects and diversifying the clients we work with to ensure that high quality is being delivered. Customer satisfaction is vital to maintain a strong market share whilst still being beneficial to the company's overall objectives and ethics. |
Priority 1 - Supply chain continuity |
Directors and the commercial team are in constant discussion with suppliers to enable estimates for projects tendered to encompass as much information as possible to ensure cost certainty and also competitiveness. |
Priority 2 - Future orders (12 months) |
Forward orders are satisfactory. Strong communication with clients is imperative so as not to over extend and if at all possible, avoid major fluctuations in turnover to ensure that quality does not suffer from overtrading and delivery of projects is achievable. |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
Priority 3 - Educating the workforce (12 months) |
An extensive schedule of training programmes will continue to ensure high standards within the work force are consistent with the requirement of clients and construction regulations. It will also act as a benefit to the workforce because they will personally gain from the training aspects in many ways including improving their health and safety and wellbeing. We use various 3rd party organisations to deliver this high standard of training. The Directors acknowledge the high level of commitment from its staff and aims to maintain a working environment that longevity of service may continue. |
Health and Safety and Social Responsibility |
The company will further add to its management systems, thus enabling the impact it has regarding its workforce and the wider community. This includes but not limited to ISO 14001-2015. |
The safety of the company's workforce and those in and around operational areas is paramount and accordingly the company strenuously complies with health & safety regulations which are also augmented (e.g. by accreditations such as CHAS) and regular education of the workforce. |
We take seriously the topic of mental health which has been identified as a key area of concern within the construction industry. The company supports its workforce by appointing and training mental health officers and providing external mental health support via our employee benefit schemes and regular staff interactions. |
With the wider community, the company is committed to supporting its main contractors through the projects undertaken to support wherever possible trainees and community driven projects. |
We hold the following accreditation: |
1 | ISO 9001:2015 | Quality management system |
2 | ISO 14001:2015 | Environmental Management system |
3 | CHAS | Common Assessment Standard and UK H&S Legislation |
4 | CHAS | SSIP Core Criteria and UK H&S legislation |
5 | Constructionline | Gold Status |
6 | FIS |
Principal risks and uncertainties |
The company's level of performance is sustained in the long term by managing risk across all areas of the business. This approach provides a stable environment for our clients to trade with us safe in the knowledge that risks are mitigated to the best of our ability. |
The operations of the company are based on the opinions of the market conditions at all times. The directors are aware not to over stretch trading not only to retain cash flow strength but to ensure the high level of quality. The company has a strong foundation in its Balance Sheet and support from manufacturers and distributors in the trade. |
Maintaining a consistent workforce with low staff rotation is also key to ensuring performance and furthermore future proofing the business by the recruitment of highly capable estimating and business development personnel. |
The company has the principle of financing its working capital and operations through retained earnings. |
Credit risk |
Credit risk is managed by assessing clients constantly and ensuring payments are received to the budget forecasts. |
Liquidity risk |
Liquidity risk is the risk that the company will encounter difficulty in meeting obligations associated with its financial liabilities. The risk is mitigated as the company has sufficient financial resources available to it to meet its obligations as they fall due. |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
Future plans |
The company continues to work with manufacturers regarding their new products and therefore new applications. Also, quality staff are always searched for to enhance those already within the company in order to add further strength along with ongoing formal training to keep up to date with new trends and expectations within the construction industry, both technically and especially with ever developing health and safety practices. The company also aims to improve quality and consistency of its operations by employing new procedures concerning buying and product procurement not least to the impact of timing of such supplies. |
Finally, the key performance indicators for the future are: |
- Turnover |
- Gross margin |
- Net trading results |
The directors will aim to maintain these combined factors by implementing controls within the management processes to: |
- Monitor and manage principal risks; |
- Ensure continual measurement of progress against the business's strategy and objectives; |
- Remain alert to the activities of competitors to maintain a competitive edge; |
- Implement and manage change as is identified necessary; |
- Plan for and implement contingency measures to react to an unexpected market downturn, or loss of confidence generally within the economy. |
ON BEHALF OF THE BOARD: |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
The directors present their report with the financial statements of the company for the year ended 30 September 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of specialists in interior ceilings and partition fit-outs. |
DIVIDENDS |
During the year the company paid dividends amounting to £300,000 (2022 - £Nil). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2022 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
In accordance with Section 414C(11) of the Companies Act 2006 other matters, normally included within this report, are set out in the Strategic Report. |
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; |
- | 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. |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
AUDITORS |
In accordance with Section 487(2) of the Companies Act 2006 the auditors, Wheelers, are deemed to have been |
re-appointed. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
S C L INTERIORS (LONDON) LIMITED |
Opinion |
We have audited the financial statements of S C L Interiors (London) Limited (the 'company') for the year ended 30 September 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, 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 30 September 2023 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. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
S C L INTERIORS (LONDON) LIMITED |
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 five, 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 |
S C L INTERIORS (LONDON) 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. |
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: |
The primary responsibility for the prevention and detection of fraud rests with the directors. |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are: |
- Those that relate to the reporting framework (United Kingdom Accounting Standards in conformity with the |
Companies Act 2006 and FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"). |
- Relevant tax compliance regulations in the United Kingdom. |
- In addition, we concluded that there are certain laws and regulations that may have an effect on the determination of the amounts and disclosures in the financial statements; and |
- Laws and regulations relating to health and safety, employee matters and the environment. |
We understood how the company is complying with those frameworks by making enquiries of management, those |
responsible for legal and compliance procedures and the Company Secretary. We corroborated our enquiries through our review of Board minutes. |
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussion with management and our prior knowledge of the company's activities and controls. We have carried out procedures including a review of journal entries and a review of accounting estimates and judgements which were designed to provide reasonable assurance that the financial statements were free from fraud or error. |
Based on this understanding we designed audit procedures to identify non-compliance with such laws and regulations. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those |
leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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. |
Other matters required to address |
In the previous accounting period, the directors of the company took advantage of audit exemptions under s477 of the Companies Act. Therefore the prior period financial statements were not subject to audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
S C L INTERIORS (LONDON) 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. |
for and on behalf of |
Chartered Accountants, Tax Consultants |
& Statutory Auditors |
27-29 Old Market |
Wisbech |
Cambridgeshire |
PE13 1NE |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
STATEMENT OF INCOME AND |
RETAINED EARNINGS |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,648,375 | 441,105 |
Other operating income | 3 |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
1,689,887 | 442,278 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year |
Dividends | 8 | ( |
) |
RETAINED EARNINGS AT END OF YEAR |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
BALANCE SHEET |
30 SEPTEMBER 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
141,263 |
Cash and cash equivalents at end of year | 2 | 297,619 | 30,537 |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.9.23 | 30.9.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance costs | 7,569 | 3,402 |
Finance income | (33 | ) | (90 | ) |
1,729,524 | 482,594 |
Decrease in stocks |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 September 2023 |
30.9.23 | 1.10.22 |
£ | £ |
Cash and cash equivalents | 297,619 | 30,537 |
Year ended 30 September 2022 |
30.9.22 | 1.10.21 |
£ | £ |
Cash and cash equivalents | 30,537 | 141,263 |
3. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
At 1.10.22 | Cash flow | At 30.9.23 |
£ | £ | £ |
Net cash |
Cash at bank | 30,537 | 267,082 | 297,619 |
30,537 | 297,619 |
Debt |
Finance leases | (110,710 | ) | (33,753 | ) | (144,463 | ) |
(110,710 | ) | (33,753 | ) | (144,463 | ) |
Total | (80,173 | ) | 233,329 | 153,156 |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
1. | STATEMENT OF COMPLIANCE |
S C L Interiors (London) 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 financial statements have been prepared in compliance with Financial Reporting Standard 102. "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
The principle place of business is: |
Dartford Business Park |
Victoria Road |
Dartford |
Kent |
DA1 5FS |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The presentational currency of the financial statements is the Pound Sterling (£). |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Going concern |
The directors believe that the company is well placed to manage its financial risks successfully and have reasonable expectation that it has adequate resources to continue in operational existence for the foreseeable future. Consequently, it continues to adopt the going concern basis of accounting in preparing the financial statements. |
Significant judgements and estimates |
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements: |
Recoverability of long term contract balances |
The recoverability of trade and contract receivables is regularly reviewed in the light of available economic information specific to each receivable and provisions are recognised for balances considered to be irrecoverable. |
Revenue and profit recognition |
The estimation techniques used for revenue and profit recognition in respect of the company's long term contracts requires forecasts to be made of the outcome which includes assessments and judgements to be made on the recovery of changes in scope of work, contract programmes, maintenance and defects liabilities and changes in costs. |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Revenue recognition |
Turnover represents the sales value of goods and services supplied, excluding value added tax, adjusted for ongoing contracts where a right to consideration exists. |
Amounts recoverable on contracts are included in debtors and stated at cost, plus attributable profit to the extent that it is reasonably certain after making provisions for contingencies, any losses incurred or foreseen in bringing contracts to completion, and less amounts received as progress payments. Cost for this purpose includes the cost of materials and all overheads other than those relating to the general administration of the company. For any contracts where receipts exceed the sales value of goods and services supplied, the excess is included in creditors as payments on account. |
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. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks and work in progress |
Stocks and work in progress are stated at the lower of cost and net realisable value, after making allowance for obsolete and slow moving items. |
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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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. |
Impairment of non-financial assets |
The company assesses at each reporting date whether an asset may be impaired. If any such indication exists the company estimates the recoverable amount of the asset. If it is not possible to estimate the recoverable amount of the individual asset, the company estimates the recoverable amount of the cash generating unit to which the asset belongs. |
The recoverable amount of an asset or cash generating unit is the higher of its fair value less costs to sell and its value in use. If the recoverable amount is less than its carrying amount, the carrying amount of the asset is impaired and it is reduced to its recoverable amount through an impairment in the statement of comprehensive income unless the asset is carried at a revalued amount where the impairment loss of the revalued asset is a revaluation decrease. |
An impairment loss recognised for all assets is reversed in a subsequent period if and only if the reasons for the impairment loss have ceased to apply. |
Cash and cash equivalents |
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short term deposits with an original maturity date of three months or less. For the purposes of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts. |
Short-term debtors and creditors |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income in other operating expenses. |
3. | OTHER OPERATING INCOME |
30.9.23 | 30.9.22 |
£ | £ |
Sundry income | 104 | 1,083 |
Other grants |
41,479 | 1,083 |
Other grants relate to income received from the CITB to contribute towards the training of construction workers. |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
4. | EMPLOYEES AND DIRECTORS |
30.9.23 | 30.9.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
30.9.23 | 30.9.22 |
Staff | 13 | 12 |
Directors | 3 | 3 |
30.9.23 | 30.9.22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.9.23 | 30.9.22 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) |
Computer software amortisation |
Auditors' remuneration |
Auditors' remuneration for non audit work |
Other operating leases |
Stocks recognised as an expense |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.9.23 | 30.9.22 |
£ | £ |
Hire purchase interest |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.9.23 | 30.9.22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
30.9.23 | 30.9.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Super deduction enhancement | (299 | ) | (722 | ) |
Effect of changes in tax rate | (44,872 | ) | 5,014 |
Enhanced research and development deduction | (32,270 | ) | (27,860 | ) |
Total tax charge | 349,959 | 67,202 |
8. | DIVIDENDS |
30.9.23 | 30.9.22 |
£ | £ |
Final |
9. | INTANGIBLE FIXED ASSETS |
Computer |
software |
£ |
COST |
At 1 October 2022 |
and 30 September 2023 |
AMORTISATION |
At 1 October 2022 |
Amortisation for year |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 October 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 September 2023 |
DEPRECIATION |
At 1 October 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 October 2022 |
Additions |
Disposals | ( |
) |
At 30 September 2023 |
DEPRECIATION |
At 1 October 2022 |
Charge for year |
Eliminated on disposal | ( |
) |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
11. | STOCKS |
30.9.23 | 30.9.22 |
£ | £ |
Stocks |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.9.23 | 30.9.22 |
£ | £ |
Trade debtors |
Amounts recoverable on |
contracts |
Other debtors |
VAT |
Prepayments and accrued income |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.9.23 | 30.9.22 |
£ | £ |
Hire purchase contracts (see note 15) |
Trade creditors |
Corporation tax |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.9.23 | 30.9.22 |
£ | £ |
Hire purchase contracts (see note 15) |
Other creditors |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
30.9.23 | 30.9.22 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
30.9.23 | 30.9.22 |
£ | £ |
Within one year |
Between one and five years |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
30.9.23 | 30.9.22 |
£ | £ |
Hire purchase contracts | 144,463 | 110,710 |
The hire purchase contracts are secured on the assets to which they relate together with a guarantee from Service Ceilings Limited, relating to one of the assets under finance. |
17. | PROVISIONS FOR LIABILITIES |
30.9.23 | 30.9.22 |
£ | £ |
Deferred tax | 40,800 | 20,600 |
Deferred |
tax |
£ |
Balance at 1 October 2022 |
Provided during year |
Balance at 30 September 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 30.9.23 | 30.9.22 |
value: | £ | £ |
Ordinary | £1 | 75,000 | 75,000 |
19. | RESERVES |
Retained |
earnings |
£ |
At 1 October 2022 |
Profit for the year |
Dividends | ( |
) |
At 30 September 2023 |
20. | PENSION COMMITMENTS |
The company makes contributions to defined contribution pension schemes whose assets are held separately from those of the company in independently administered funds. The pension charge represents contributions payable in the year by the company to the schemes and amounted to £45,665 (2022 - £42,041). |
At 30 September 2023 outstanding pension contributions amounted to £6,773 (2022 - £579) and are included in other creditors. |
S C L INTERIORS (LONDON) LIMITED (REGISTERED NUMBER: 04883546) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
21. | RELATED PARTY DISCLOSURES |
The company had the following transactions, in the normal course of trade, with the below related party: |
Service Ceilings Limited |
30.9.23 | 30.9.22 |
£ | £ |
Management charges | 10,000 | - |
Creditor at 30 September 2023 | 2,291,443 | 833,122 |
During the year, Service Ceilings Limited acted as an undisclosed agent for S C L Interiors (London) Limited. The value of the goods and services supplied under this arrangement amounted to £17,903,909. A J Nurse and A T Nurse are directors of Service Ceilings Limited. |