Company registration number 10382723 (England and Wales)
STERLING 2000 GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
STERLING 2000 GROUP LIMITED
COMPANY INFORMATION
Directors
Mr I Black
Mrs K O'Neil
Mrs J Rudge
Company number
10382723
Registered office
Sterling House
810 Mandarin Court
Centre Park
Warrington
Cheshire
WA1 1GG
Auditor
Mitchell Charlesworth (Audit) Limited
3rd Floor
5 Temple Square
Temple Street
Liverpool
L2 5RH
STERLING 2000 GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 32
STERLING 2000 GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 September 2023.

Review of the group's business

The company is an investment holding company and the principal activity of its subsidiary undertakings is the provision of construction services, labour supply, rental and insurance services.

 

The results of the group for the year show a profit of £729,213 on ordinary activities after tax (2022: profit £259,490).

 

Following losses incurred during the Covid period the group once again produced profits and retained £529,213 of this thus increasing retained reserves at the year end.

 

The business is viewed in the marketplace as a compliant major player, with an experienced team with robust processes and procedures which allows it to adapt to the many changes caused by continuous amendments in legislation that affects the market in which the group trades.

 

The group is continuing to invest heavily in training and development of its bespoke IT platforms. This ensures the service offered matches that of its rivals, in this competitive market and is tailored for any relevant changes in legislation.

 

Future developments

Contractor numbers have been consistent since the beginning of the new financial year, and the directors are pleased with this performance. The group has invested in increasing its sales team and is expecting an increase in contractor numbers for the year ended 30 September 2024.

 

The directors expect the profitability levels to be retained for the year ended 30 September 2024 despite an increase in payroll costs and other overheads.

Principal risks and uncertainties

The group uses various financial instruments these include loans, cash, and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the group's operations.

 

The existence of these financial instruments exposes the group to a number of financial risks.

 

The main risk arising from the group's financial instruments is credit risk.

 

Credit risk

The group's principal financial assets are cash and trade debtors. The credit risk associated with the cash is limited as the counterparties have high credit ratings assigned by international credit-rating agencies. The principal credit risk arises therefore from its trade debtors.

 

In order to manage credit risk, the directors set limits for customers based on a combination of payment history and third-party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history.

 

Supplier payment policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

STERLING 2000 GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
Key performance indicators

The main KPI of the group is the gross profit of its subsidiaries as this shows the margin made on its contractor activities. During the year gross margin has increased by 1.6% resulting in an increase of £50,000 and with a reduction in overheads profit after tax increased by £139,000.

Section 172 (1) statement

The directors of Sterling 2000 Group Limited must act in accordance with the legally prescribed duties. These duties are detailed in the Companies Act 2006 and include, in Section 172, the requirement that a director of a company must act in the way they consider, in good faith, would most likely promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to: the likely consequences of any decisions in the long term;

 

- the interest of the company's employees.

- the impact of the company's operations on the community and environment.

- the desirability of the company's maintaining a reputation for high standards of business conduct.

- the need to act fairly as between members and the company

 

Examples of how the Directors take these matters into account include the following.

All employees of the group are committed to helping the group make a positive impact. The group engage with all employees frequently, including companywide briefings on strategy and business performance. We have staff forums for two-way dialogue between leaders and employees that addresses issues that matter most to staff. These also include a staff forum where the staff can communicate with peers to then be addressed by management.

 

The recent pandemic has significantly changed working practices, which has continued to the present day. Many of the group employees have flexible working patterns. In respect to communication with the group’s agency partners this remains flexible for the benefit of both parties and involves both physical meetings and those through electronic methods.

 

As an employer we have always made good mental health and wellbeing a priority, providing learning and development, training, and workshops to support staff.

 

We engage regularly with employees through company social events, both inside and outside of the working week which helps build a good team spirit.

 

The group is constantly working to participate in reducing the poor effect it may have on the environment. Current areas that have been addressed are that all company vehicles are at least a hybrid model, with a future move towards electric certainly on the agenda. We have also started to move towards changing all lighting systems in company owned property to one of energy efficient light bulbs.

On behalf of the board

Mr I Black
Director
6 February 2024
STERLING 2000 GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 September 2023.

 

The amended accounts replace the original accounts and are now the statutory accounts. They have been prepared as at the date of the original accounts and not at the date of the revision and accordingly do not deal with events between those dates.

Principal activities

The principal activity of the group during the year was the provision of constructions services, labour supply, rental and insurance services. The principal activity of the company was that of a holding company.

Results and dividends

The profit for the year, after taxation, amounted to £729,213 (2022: £259,490).

A dividend of £200,000 was paid during the year (2022: £Nil).

Directors

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

Mr I Black
Mrs K O'Neil
Mrs J Rudge
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

During the year, the policy of providing employees with information about the group has been continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the group's performance. Regular meetings are held between local management and employees to allow a free flow of information and ideas.

Post reporting date events

Contractor numbers have been maintained since the beginning of the new financial year and further increases are expected in the Second half of the year following the work of an increased Sales team.

 

The directors anticipate profit levels to be maintained despite and increase in payroll and overhead costs in the year ended 30 September 2024.

Auditor

In accordance with the company's articles, a resolution proposing that Mitchell Charlesworth (Audit) Limited be reappointed as auditor of the group will be put at a General Meeting.

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

STERLING 2000 GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -
Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr I Black
Director
6 February 2024
2024-02-06
STERLING 2000 GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STERLING 2000 GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of Sterling 2000 Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

STERLING 2000 GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STERLING 2000 GROUP LIMITED
- 6 -
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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 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.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

STERLING 2000 GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STERLING 2000 GROUP LIMITED
- 7 -

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

 

(i) The presentation of the Statement of Comprehensive Income, (ii) the accounting policy for revenue recognition and (iii) understatement of creditors. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

Audit response to risks identfied

Our procedures to respond to risks identified included the following:

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Buxton (Senior Statutory Auditor)
For and on behalf of Mitchell Charlesworth (Audit) Limited
6 February 2024
Accountants
Statutory Auditor
3rd Floor
5 Temple Square
Temple Street
Liverpool
L2 5RH
STERLING 2000 GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
151,129,586
150,778,620
Cost of sales
(148,040,707)
(147,740,590)
Gross profit
3,088,879
3,038,030
Distribution costs
-
0
(350,516)
Administrative expenses
(2,707,930)
(2,452,956)
Other operating income
-
6,204
Operating profit
4
380,949
240,762
Interest receivable and similar income
8
17,955
18,728
Profit before taxation
398,904
259,490
Tax on profit
9
330,309
-
0
Profit for the financial year
23
729,213
259,490
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
STERLING 2000 GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
640,000
800,000
Other intangible assets
11
1,144,949
1,145,138
Total intangible assets
1,784,949
1,945,138
Tangible assets
12
1,982,518
1,829,318
3,767,467
3,774,456
Current assets
Stocks
16
1,148
-
Debtors
17
8,282,034
7,567,762
Cash at bank and in hand
1,750,037
3,234,745
10,033,219
10,802,507
Creditors: amounts falling due within one year
18
(13,634,880)
(14,883,633)
Net current liabilities
(3,601,661)
(4,081,126)
Total assets less current liabilities
165,806
(306,670)
Provisions for liabilities
Provisions
19
32,350
89,087
(32,350)
(89,087)
Net assets/(liabilities)
133,456
(395,757)
Capital and reserves
Called up share capital
22
400
400
Profit and loss reserves
23
133,056
(396,157)
Total equity
133,456
(395,757)
The financial statements were approved by the board of directors and authorised for issue on 6 February 2024 and are signed on its behalf by:
06 February 2024
Mr I Black
Director
Company registration number 10382723 (England and Wales)
STERLING 2000 GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2023
30 September 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
310,365
310,365
Current assets
Debtors
17
25,454
396
Cash at bank and in hand
113
167
25,567
563
Creditors: amounts falling due within one year
18
(300,706)
(300,760)
Net current liabilities
(275,139)
(300,197)
Net assets
35,226
10,168
Capital and reserves
Called up share capital
22
400
400
Profit and loss reserves
23
34,826
9,768
Total equity
35,226
10,168

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £200,000 (2022 - £Nil).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 6 February 2024 and are signed on its behalf by:
06 February 2024
Mr I Black
Director
Company registration number 10382723 (England and Wales)
STERLING 2000 GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2021
400
(655,647)
(655,247)
Year ended 30 September 2022:
Profit and total comprehensive income
-
259,490
259,490
Balance at 30 September 2022
400
(396,157)
(395,757)
Year ended 30 September 2023:
Profit and total comprehensive income
-
729,213
729,213
Dividends
10
-
(200,000)
(200,000)
Balance at 30 September 2023
400
133,056
133,456
STERLING 2000 GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2021
400
9,768
10,168
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
-
-
Balance at 30 September 2022
400
9,768
10,168
Year ended 30 September 2023:
Profit and total comprehensive income
-
225,058
225,058
Dividends
10
-
(200,000)
(200,000)
Balance at 30 September 2023
400
34,826
35,226
STERLING 2000 GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
29
(864,815)
304,081
Income taxes paid
(1)
-
0
Net cash (outflow)/inflow from operating activities
(864,816)
304,081
Investing activities
Purchase of intangible assets
(200,792)
(186,692)
Purchase of tangible fixed assets
(237,055)
(17,053)
Interest received
17,955
18,728
Net cash used in investing activities
(419,892)
(185,017)
Financing activities
Dividends paid to equity shareholders
(200,000)
-
0
Net cash used in financing activities
(200,000)
-
Net (decrease)/increase in cash and cash equivalents
(1,484,708)
119,064
Cash and cash equivalents at beginning of year
3,234,745
3,115,681
Cash and cash equivalents at end of year
1,750,037
3,234,745
STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 14 -
1
Accounting policies
Company information

Sterling 2000 Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Sterling House, 810 Mandarin Court, Centre Park, Warrington, Cheshire, WA1 1GG.

 

The group consists of Sterling 2000 Group Limited and all of its subsidiaries.

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
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Sterling 2000 Group Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 30 September 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Revenue is recognised to the extent that the group obtains the right to consideration in exchange for its performance.

 

Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.

STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Software development costs are recognised as an intangible asset when all of the following criteria are demonstrated:

 

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Development costs
10% straight line
1.7
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 on the following bases:

Freehold property
2% straight line
Plant and machinery
3 - 10% straight line
Fixtures and fittings
2 - 10% straight line
Equipment
33% straight line

Freehold land is not depreciated.

STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 16 -

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 recognised in the profit and loss account.

 

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.10
Stocks

Stock relates to merchandise held by the group, this is measured at cost price.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

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.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
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 profit and loss account 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 19 -
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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Provisions

Claims outstanding comprise provisions for the estimated cost of settling all insurance claims incurred but unpaid at the balance sheet date whether report or not. The provision for claims incurred but not reported has been estimated using percentages of net earned premium, less claims paid of between nil and 100%. The provisions for claims incurred but not reported is included in the claims outstanding.

1.15
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.

1.16
Retirement benefits

The group operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the group. The annual contributions payable are charged to the consolidated statement of income and retained earnings.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

The items in the financial statements that incorporates these judgements include:

 

- Amortisation and impairment of intangible assets and the useful economic life applied, which is assessed by management annually.

 

- Depreciation of tangible assets and the useful economic life applied, which is assessed by management annually.

STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 20 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Rendering of services
151,014,308
150,662,929
Rental income
115,278
115,691
151,129,586
150,778,620
2023
2022
£
£
Other revenue
Interest income
17,955
18,728
Grants received
-
6,204

The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(6,204)
Depreciation of owned tangible fixed assets
78,396
26,225
Amortisation of intangible assets
360,981
358,899
Loss on disposal of intangible assets
5,459
-
Operating lease charges
8,797
8,426
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
17,925
17,000
Audit of the financial statements of the company's subsidiaries
17,925
17,025
35,850
34,025
STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 21 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Contracting operatives
2,778
2,830
-
-
Administrative staff
35
33
-
-
Total
2,813
2,863
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
94,581,232
81,836,926
-
0
-
0
Social security costs
9,531,968
8,747,739
-
-
Pension costs
53,916
63,236
-
0
-
0
104,167,116
90,647,901
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
315,676
313,201

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
120,000
120,000
STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 22 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
17,955
18,728
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
17,955
18,728
STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 23 -
9
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
(330,309)
-
0

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

2023
2022
£
£
Profit before taxation
398,904
259,490
Expected tax charge based on the standard rate of corporation tax in the UK of 22.00% (2022: 19.00%)
87,759
49,303
Tax effect of expenses that are not deductible in determining taxable profit
11,248
-
0
Tax effect of income not taxable in determining taxable profit
(9,352)
(21,594)
Unutilised tax losses carried forward
(87,857)
(38,443)
Permanent capital allowances in excess of depreciation
(1,797)
10,734
Deferred tax adjustments in respect of prior years
(330,310)
-
0
Taxation credit
(330,309)
-
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
200,000
-
STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 24 -
11
Intangible fixed assets
Group
Goodwill
Development costs
Total
£
£
£
Cost
At 1 October 2022
1,600,000
1,279,919
2,879,919
Additions - internally developed
-
0
200,792
200,792
Disposals
-
0
(6,500)
(6,500)
At 30 September 2023
1,600,000
1,474,211
3,074,211
Amortisation and impairment
At 1 October 2022
800,000
134,781
934,781
Amortisation charged for the year
160,000
200,981
360,981
Disposals
-
0
(6,500)
(6,500)
At 30 September 2023
960,000
329,262
1,289,262
Carrying amount
At 30 September 2023
640,000
1,144,949
1,784,949
At 30 September 2022
800,000
1,145,138
1,945,138
The company had no intangible fixed assets at 30 September 2023 or 30 September 2022.
STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 25 -
12
Tangible fixed assets
Group
Freehold property
Plant and machinery
Fixtures and fittings
Equipment
Total
£
£
£
£
£
Cost
At 1 October 2022
1,848,886
117,901
183,247
39,561
2,189,595
Additions
-
0
187,586
28,577
20,891
237,054
Disposals
-
0
(9,185)
(50,599)
(23,794)
(83,578)
At 30 September 2023
1,848,886
296,302
161,225
36,658
2,343,071
Depreciation and impairment
At 1 October 2022
204,797
57,596
67,399
30,485
360,277
Depreciation charged in the year
40,288
14,162
14,082
9,864
78,396
Eliminated in respect of disposals
-
0
(9,185)
(45,141)
(23,794)
(78,120)
At 30 September 2023
245,085
62,573
36,340
16,555
360,553
Carrying amount
At 30 September 2023
1,603,801
233,729
124,885
20,103
1,982,518
At 30 September 2022
1,644,089
60,305
115,848
9,076
1,829,318
The company had no tangible fixed assets at 30 September 2023 or 30 September 2022.
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
310,365
310,365
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2022 and 30 September 2023
310,365
Carrying amount
At 30 September 2023
310,365
At 30 September 2022
310,365
STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 26 -
14
Subsidiaries

Details of the company's subsidiaries at 30 September 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Sterling 2000 (Holdings) Limited
UK
£1 Ordinary
100.00
-
Sterling (2000) Limited
UK
£1 Ordinary
-
100.00
Cheshire Business Insurance Ltd
Guernsey
£1 Ordinary
-
100.00
Sterling (CIS) Limited
UK
£1 Ordinary
-
100.00
Sterling Solutions Umbrella Ltd
UK
£1 Ordinary
-
100.00
Sterling Techserv Limited
UK
£1 Ordinary
-
100.00
Centre Park Resources Limited
UK
£1 Ordinary
-
100.00
Sterling Professional Consultancy Limited
UK
£1 Ordinary
-
100.00
Sterling Norway Limited
UK
£1 Ordinary
-
100.00
Sterling Solutions Rail Limited
UK
£1 Ordinary
-
100.00

Registered office addresses:

UK
Sterling House, 810 Mandarin Court, Centre Park, Warrington, WA1 1GG
Guernsey
Level 5, Mill Court, La Charroterie, St Peter Port, Guernsey, GY1 1EJ

Cheshire Business Insurance Ltd is incorporated in Guernsey, all other companies are incorporated in England and Wales.

 

Sterling Techserv Limited, Centre Park Resources Limited, Sterling Professional Consultancy Limited and Sterling Norway Limited are companies that are entitled to and have taken advantage of the exemption from audit available under Section 479A of the Company Act 2006 relating to subsidiary companies. In order for the subsidiary to claim this exemption the parent company must guarantee all outstanding liabilities that the subsidiary is subject to at the year end under Section 479C. Accordingly on 6 February 2024, Sterling 2000 Group Limited guaranteed all outstanding liabilities that these companies were subject to at 30 September 2023.

 

The company's voting rights in respect of each subsidiary undertaking are held in the same proportion as the company's share of the ordinary share capital of each subsidiary.

15
Financial instruments

Financial assets measured at amortised cost comprise of trade debtors, other debtors and cash, totalling £6,637,772 (2022: £7,662,471).

 

Financial liabilities measured at amortised cost comprise of bank loans, trade creditors, other creditors, accruals and deferred income, totalling £10,275,893 (2022: £14,883,634).

16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
1,148
-
0
-
0
-
0
STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 27 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,592,016
4,136,012
-
0
-
0
Corporation tax recoverable
6,321
6,321
-
0
-
0
Other debtors
248,384
285,392
396
396
Prepayments and accrued income
3,105,003
3,140,037
-
0
-
0
7,951,724
7,567,762
396
396
Amounts falling due after more than one year:
Deferred tax asset (note 20)
330,310
-
0
25,058
-
0
Total debtors
8,282,034
7,567,762
25,454
396

An impairment loss of £nil (2022: 3,821) was recognised against trade debtors during the year.

18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
294,188
198,119
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
300,355
300,440
Other taxation and social security
9,525,836
10,879,446
-
-
Other creditors
36,968
90,761
351
320
Accruals and deferred income
3,777,888
3,715,307
-
0
-
0
13,634,880
14,883,633
300,706
300,760
19
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Provision for IBNR
31,850
58,687
-
-
Unearned Insurance Premium
(102,000)
-
-
-
Insurance Claims Outstanding
102,500
30,400
-
-
32,350
89,087
-
-
STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
19
Provisions for liabilities
(Continued)
- 28 -
Movements on provisions:
Provision for IBNR
Unearned Insurance Premium
Insurance Claims Outstanding
Total
Group
£
£
£
£
At 1 October 2022 and 30 September 2023
31,850
(102,000)
102,500
32,350

Claims outstanding comprise of provisions for the estimated cost of settling all insurance claims incurred which remain unpaid at the balance sheet date. The provision for claims incurred but not reported has been estimated using percentages of net earned premium, less claims paid of between nil and 100%.

 

The provision for claims incurred but not reported is included in the provision for claims outstanding.

20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Assets
Assets
2023
2022
Group
£
£
Tax losses
330,310
-
Assets
Assets
2023
2022
Company
£
£
Tax losses
25,058
-
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 October 2022
-
-
Credit to profit or loss
(330,310)
(25,058)
Asset at 30 September 2023
(330,310)
(25,058)

The deferred tax asset set out above is expected to reverse within 60 months and relates to the utilisation of tax losses against future expected profits.

STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 29 -
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
53,916
63,236

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
133
133
133
133
B1 Ordinary shares of £1 each
70
70
70
70
B2 Ordinary shares of £1 each
37
37
37
37
C1 Ordinary shares of £1 each
16
16
16
16
C2 Ordinary shares of £1 each
16
16
16
16
C3 Ordinary shares of £1 each
16
16
16
16
C4 Ordinary shares of £1 each
16
16
16
16
C5 Ordinary shares of £1 each
16
16
16
16
C6 Ordinary shares of £1 each
16
16
16
16
C7 Ordinary shares of £1 each
32
32
32
32
C8 Ordinary shares of £1 each
16
16
16
16
C9 Ordinary shares of £1 each
16
16
16
16
400
400
400
400
STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 30 -
23
Reserves
Profit and loss reserves

The reserves on the statement of financial position include the following:

 

Called up share capital - this represents the nominal value of shares that have been issued.

 

Profit and loss account - this reserve records retained earnings and accumulated losses.

24
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
31,680
45,796
-
-
Between two and five years
13,725
27,450
-
-
45,405
73,246
-
-
25
Capital commitments

As at 30 September 2023 and 30 September 2022, the directors have confirmed that neither the company or group had any capital commitments.

26
Contingencies

The directors have confirmed that there were no contingent liabilities which should be disclosed at 30 September 2023 or 30 September 2022.

 

The company is party to an unlimited intercompany guarantee, with the bank, with the following companies in the group.

 

Sterling 2000 (Holdings) Limited

Sterling (2000) Limited

Centre Park Resources Limited

Sterling (CIS) Limited

Sterling Solutions Umbrella Limited

Sterling Techserv Limited

Sterling Professional Consultancy Limited

Sterling Norway Limited

Sterling Solutions Rail Limited

STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 31 -
27
Related party transactions

The company was under the control of the directors throughout the current and previous year. No one shareholder has overall control.

 

Sterling 2000 Group Limited is related to AGP Accountancy & Tax Solutions Limited (AGP), by virtue of the fact that Mr I Black is a director of both companies.

 

During the year AGP charged the group £188,195 (2022: £192,528) for accountancy and management services.

 

Included in trade creditors is £19,224 (2022: £18,468) that is owed to AGP.

 

In turn the group charged AGP £26,358 (2022: £24,379) for various services.

 

Included in trade debtors is £,2,636 (2022: £5,272) that is owed by AGP.

 

 

Sterling 2000 Group Limited is related to Soteria (UK) Limited by virtue of the fact that Mr I Black is a director of both companies.

 

During the year Soteria (UK) Limited charged the group £12,000 (2022: £12,000) for health and safety services.

 

Included in trade creditors is £2,400 (2022: £1,200) that is owed to Soteria (UK) Limited.

 

In turn the group charged Soteria (UK) Limited £4,629 (2022: £4,355) for various services.

 

Included in debtors is £122 (2022: £359) that is owed by Soteria (UK) Limited.

 

 

Sterling 2000 Group Limited is related to Faraday Mortgage Associates Limited, by virtue of the fact that Mr I Black is a director of both companies.

 

During the year the group received from Faraday Mortgage Associates Limited £111 (2022: charged £932).

 

Included in trade debtors is £345 (2022: £764) that is owed by Faraday Mortgage Associates Limited.

 

 

Sterling 2000 Group Limited is related to Spire HR Solutions Limited by virtue of the fact that Mrs J Rudge is a director of both companies.

 

During the year Spire HR Solutions Limited charged the group £Nil (2022: £1,397) for various services.

 

Included in trade creditors is £Nil (2021: £Nil) that is owed to Spire HR Solutions Limited.

 

In turn the group charged Spire HR Solutions Limited £5,813 (2022: £12,838) for various services.

 

Included in trade debtors is £595 (2022: £410) that is owed by Spire HR Solutions Limited.

 

Key management personnel remuneration totalled £397,945 to 30 September 2023 (2022: £402,238).

28
Controlling party

No one shareholder has overall control of the company. The company is under the control of the shareholders.

STERLING 2000 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 32 -
29
Cash (absorbed by)/generated from group operations
2023
2022
£
£
Profit for the year after tax
729,213
259,490
Adjustments for:
Taxation credited
(330,309)
-
0
Investment income
(17,955)
(18,728)
Loss on disposal of intangible assets
5,459
-
Amortisation and impairment of intangible assets
360,981
358,899
Depreciation and impairment of tangible fixed assets
78,396
26,225
Decrease in provisions
(56,737)
(135,526)
Movements in working capital:
(Increase)/decrease in stocks
(1,148)
36,528
Increase in debtors
(383,962)
(1,659,408)
(Decrease)/increase in creditors
(1,248,753)
1,436,601
Cash (absorbed by)/generated from operations
(864,815)
304,081
30
Analysis of changes in net funds - group
1 October 2022
Cash flows
30 September 2023
£
£
£
Cash at bank and in hand
3,234,745
(1,484,708)
1,750,037
2023-09-302022-10-01falseCCH SoftwareCCH Accounts Production 2023.200Mr I BlackMrs K O'NeilMrs J Rudge10382723bus:Consolidated2022-10-012023-09-30103827232022-10-012023-09-3010382723bus:Director12022-10-012023-09-3010382723bus:Director22022-10-012023-09-3010382723bus:Director32022-10-012023-09-3010382723bus:RegisteredOffice2022-10-012023-09-3010382723bus:Consolidated2023-09-30103827232023-09-3010382723bus:Consolidated2021-10-012022-09-30103827232021-10-012022-09-3010382723core:Goodwillbus:Consolidated2023-09-3010382723core:Goodwillbus:Consolidated2022-09-3010382723core:OtherResidualIntangibleAssetsbus:Consolidated2023-09-3010382723core:OtherResidualIntangibleAssetsbus:Consolidated2022-09-3010382723core:DevelopmentCostsCapitalisedDevelopmentExpenditurebus:Consolidated2023-09-3010382723core:DevelopmentCostsCapitalisedDevelopmentExpenditurebus:Consolidated2022-09-3010382723bus:Consolidated2022-09-3010382723core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-09-3010382723core:PlantMachinerybus:Consolidated2023-09-3010382723core:FurnitureFittingsbus:Consolidated2023-09-3010382723core:ComputerEquipmentbus:Consolidated2023-09-3010382723core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-09-3010382723core:PlantMachinerybus:Consolidated2022-09-3010382723core:FurnitureFittingsbus:Consolidated2022-09-3010382723core:ComputerEquipmentbus:Consolidated2022-09-3010382723core:ShareCapitalbus:Consolidated2023-09-3010382723core:ShareCapitalbus:Consolidated2022-09-3010382723core:ShareCapital2023-09-3010382723core:ShareCapital2022-09-3010382723core:RetainedEarningsAccumulatedLosses2023-09-3010382723core:ShareCapitalbus:Consolidated2021-09-3010382723core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-09-3010382723core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-09-3010382723core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-09-3010382723core:ShareCapital2021-09-3010382723core:RetainedEarningsAccumulatedLosses2021-09-3010382723core:RetainedEarningsAccumulatedLosses2022-09-30103827232022-09-3010382723bus:Consolidated2021-09-3010382723core:Goodwill2022-10-012023-09-3010382723core:IntangibleAssetsOtherThanGoodwill2022-10-012023-09-3010382723core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-10-012023-09-3010382723core:LandBuildingscore:OwnedOrFreeholdAssets2022-10-012023-09-3010382723core:PlantMachinery2022-10-012023-09-3010382723core:FurnitureFittings2022-10-012023-09-3010382723core:ComputerEquipment2022-10-012023-09-3010382723core:Goodwillbus:Consolidated2022-09-3010382723core:DevelopmentCostsCapitalisedDevelopmentExpenditurebus:Consolidated2022-09-3010382723bus:Consolidated2022-09-3010382723core:Goodwillcore:InternallyGeneratedIntangibleAssetsbus:Consolidated2022-10-012023-09-3010382723core:DevelopmentCostsCapitalisedDevelopmentExpenditurecore:InternallyGeneratedIntangibleAssetsbus:Consolidated2022-10-012023-09-3010382723core:InternallyGeneratedIntangibleAssetsbus:Consolidated2022-10-012023-09-3010382723core:Goodwillbus:Consolidated2022-10-012023-09-3010382723core:DevelopmentCostsCapitalisedDevelopmentExpenditurebus:Consolidated2022-10-012023-09-3010382723core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-09-3010382723core:PlantMachinerybus:Consolidated2022-09-3010382723core:FurnitureFittingsbus:Consolidated2022-09-3010382723core:ComputerEquipmentbus:Consolidated2022-09-3010382723core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-10-012023-09-3010382723core:PlantMachinerybus:Consolidated2022-10-012023-09-3010382723core:FurnitureFittingsbus:Consolidated2022-10-012023-09-3010382723core:ComputerEquipmentbus:Consolidated2022-10-012023-09-3010382723core:CurrentFinancialInstruments2023-09-3010382723core:CurrentFinancialInstruments2022-09-3010382723core:CurrentFinancialInstrumentsbus:Consolidated2023-09-3010382723core:CurrentFinancialInstrumentsbus:Consolidated2022-09-3010382723core:Non-currentFinancialInstrumentsbus:Consolidated2023-09-3010382723core:Non-currentFinancialInstrumentsbus:Consolidated2022-09-3010382723core:Non-currentFinancialInstruments2023-09-3010382723core:Non-currentFinancialInstruments2022-09-3010382723core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-09-3010382723core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-09-3010382723core:CurrentFinancialInstrumentscore:WithinOneYear2023-09-3010382723core:CurrentFinancialInstrumentscore:WithinOneYear2022-09-3010382723bus:PrivateLimitedCompanyLtd2022-10-012023-09-3010382723bus:FRS1022022-10-012023-09-3010382723bus:Audited2022-10-012023-09-3010382723bus:ConsolidatedGroupCompanyAccounts2022-10-012023-09-3010382723bus:FullAccounts2022-10-012023-09-30xbrli:purexbrli:sharesiso4217:GBP