Caseware UK (AP4) 2022.0.179 2022.0.179 2023-01-312023-01-31true825truetruetruetrueThe provision of security services.920falsefalse2022-02-01true 05466873 2022-02-01 2023-01-31 05466873 2021-02-01 2022-01-31 05466873 2023-01-31 05466873 2022-01-31 05466873 2021-02-01 05466873 c:RestatedAmount 2022-01-31 05466873 c:RestatedAmount 2021-02-01 05466873 d:Director1 2022-02-01 2023-01-31 05466873 d:RegisteredOffice 2022-02-01 2023-01-31 05466873 d:Agent1 2022-02-01 2023-01-31 05466873 c:MotorVehicles 2022-02-01 2023-01-31 05466873 c:MotorVehicles 2023-01-31 05466873 c:MotorVehicles 2022-01-31 05466873 c:MotorVehicles c:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 05466873 c:FurnitureFittings 2022-02-01 2023-01-31 05466873 c:FurnitureFittings 2023-01-31 05466873 c:FurnitureFittings 2022-01-31 05466873 c:FurnitureFittings c:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 05466873 c:OfficeEquipment 2022-02-01 2023-01-31 05466873 c:OfficeEquipment 2023-01-31 05466873 c:OfficeEquipment 2022-01-31 05466873 c:OfficeEquipment c:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 05466873 c:ComputerEquipment 2022-02-01 2023-01-31 05466873 c:ComputerEquipment 2023-01-31 05466873 c:ComputerEquipment 2022-01-31 05466873 c:ComputerEquipment c:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 05466873 c:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 05466873 c:CurrentFinancialInstruments 2023-01-31 05466873 c:CurrentFinancialInstruments 2022-01-31 05466873 c:CurrentFinancialInstruments c:WithinOneYear 2023-01-31 05466873 c:CurrentFinancialInstruments c:WithinOneYear 2022-01-31 05466873 c:ReportableOperatingSegment1 2022-02-01 2023-01-31 05466873 c:ReportableOperatingSegment1 2021-02-01 2022-01-31 05466873 e:UnitedKingdom 2022-02-01 2023-01-31 05466873 e:UnitedKingdom 2021-02-01 2022-01-31 05466873 c:UKTax 2022-02-01 2023-01-31 05466873 c:UKTax 2021-02-01 2022-01-31 05466873 c:ShareCapital 2023-01-31 05466873 c:ShareCapital 2022-01-31 05466873 c:ShareCapital 2021-02-01 05466873 c:RetainedEarningsAccumulatedLosses 2022-02-01 2023-01-31 05466873 c:RetainedEarningsAccumulatedLosses 2023-01-31 05466873 c:RetainedEarningsAccumulatedLosses 2021-02-01 2022-01-31 05466873 c:RetainedEarningsAccumulatedLosses 2022-01-31 05466873 c:RetainedEarningsAccumulatedLosses c:RestatedAmount 2022-01-31 05466873 c:RetainedEarningsAccumulatedLosses 2021-02-01 05466873 c:RetainedEarningsAccumulatedLosses c:RestatedAmount 2021-02-01 05466873 d:OrdinaryShareClass1 2022-02-01 2023-01-31 05466873 d:OrdinaryShareClass1 2023-01-31 05466873 d:OrdinaryShareClass1 2022-01-31 05466873 d:FRS102 2022-02-01 2023-01-31 05466873 d:Audited 2022-02-01 2023-01-31 05466873 d:FullAccounts 2022-02-01 2023-01-31 05466873 d:PrivateLimitedCompanyLtd 2022-02-01 2023-01-31 05466873 c:WithinOneYear 2023-01-31 05466873 c:WithinOneYear 2022-01-31 05466873 c:BetweenOneFiveYears 2023-01-31 05466873 c:BetweenOneFiveYears 2022-01-31 05466873 c:PlantEquipmentOtherAssetsUnderOperatingLeases 2023-01-31 05466873 c:PlantEquipmentOtherAssetsUnderOperatingLeases 2022-01-31 05466873 c:PlantEquipmentOtherAssetsUnderOperatingLeases c:WithinOneYear 2023-01-31 05466873 c:PlantEquipmentOtherAssetsUnderOperatingLeases c:WithinOneYear 2022-01-31 05466873 c:PlantEquipmentOtherAssetsUnderOperatingLeases c:BetweenOneFiveYears 2023-01-31 05466873 c:PlantEquipmentOtherAssetsUnderOperatingLeases c:BetweenOneFiveYears 2022-01-31 05466873 2 2022-02-01 2023-01-31 05466873 c:RetainedEarningsAccumulatedLosses c:PriorPeriodErrorIncreaseDecrease 2022-02-01 2023-01-31 05466873 c:RetainedEarningsAccumulatedLosses c:PriorPeriodErrorIncreaseDecrease 2021-02-01 2022-01-31 05466873 c:PriorPeriodErrorIncreaseDecrease 2022-02-01 2023-01-31 05466873 c:PriorPeriodErrorIncreaseDecrease 2021-02-01 2022-01-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 05466873










STM GROUP (UK) LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

 
STM GROUP (UK) LIMITED
 
 
COMPANY INFORMATION


Director
Mr P B Simpson 




Registered number
05466873



Registered office
Solar House
1st Floor

Romford Road

London

E15 4LJ




Independent auditors
MHA
Statutory Auditors

6th Floor

2 London Wall Place

London, United Kingdom

EC2Y 5AU




Bankers
HSBC Bank Plc
59-61 The Mall

London

E15 1XF





 
STM GROUP (UK) LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Director's report
 
3 - 5
Independent auditors' report
 
6 - 8
Statement of comprehensive income
 
9
Balance sheet
 
10
Statement of changes in equity
 
11
Notes to the financial statements
 
12 - 22

 
STM GROUP (UK) LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

Introduction
 
The Director presents his Report and Financial Statements for the year ended 31 January 2023.

Business review
 
Over the last 12-month STM Group Ltd have been reviewing the business structure and some historic events that have taken place. To realign the business STM Group Ltd have adjusted its prior year accounts. These adjustments have in no way effected the current trading position of the company, in fact STM Group Ltd is growing and strengthening its position in the marketplace. Over the next 12 months STM are confident there will be an even stronger more stable company with a positive financial standing.

Principal risks and uncertainties
 
The Board of Directors are pleased that STM Group, through careful planning and management, are emerging from some challenging periods in good financial shape. The focus this year has been restructuring the business for future growth. This has resulted in some financial alterations to the business, and part of our ongoing focus on financial performance.
Financial risk
Due to the nature of the industry in which the company operates, there are various financial risks which the company may be exposed to, namely, credit risk, liquidity risk and interest risk.
Credit risk
The company offers credit terms to its customers that allow payment after delivery of the supply of goods and services. The company prides itself on strong ongoing customer relationships and this reduces the exposure to credit risk in the majority of cases.
Liquitity risk
The company seeks to ensure sufficient liquidity is available to meet day-to-day operations and future potential developments by way of invoice financing arrangements that are used to provide short-term debt flexibility.
Interest risk
The company keeps interest rate exposure under review to ensure this is factored into any business decisions.

Financial key performance indicators
 
During the current reporting year, the Company made a pre-tax profit of £302,501, which reflects an encouraging improvement on the previous year. This is a result of improved business management, combined with a focus on delivering the 5 Year Business Plan. Despite the challenging times, the business has continued to invest in people and infrastructure, whilst demonstrating admirable control over key costs. The Balance Sheet has also improved, with not only increased profit for the year but also, equally importantly, the effective management of both debt and liquidity. These improvements are, clearly, evident when compared to previous financial years.
Page 1

 
STM GROUP (UK) LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023

Other key performance indicators
 
The companies other key performance indicator is considered to be its net assets position. This is as follows for the last two years:
                                         
    2023             2022
Net Assets/(Liabilities)         £179,584       £(122,917)


This report was approved by the board and signed on its behalf.



Mr P B Simpson
Director

Date: 19 February 2024
Page 2

 
STM GROUP (UK) LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

The director presents his report and the financial statements for the year ended 31 January 2023.

Director's responsibilities statement

The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the director is required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Results and dividends

The profit for the year, after taxation, amounted to £302,501 (2022 - loss £482,882).

No dividends have been paid in the year (2022 - £Nil).

Director

The director who served during the year was:

Mr P B Simpson 

Page 3

 
STM GROUP (UK) LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023

Future developments

The company is looking to grow each year. The Director considers that the company is well positioned to keep the ongoing uncertainty of the economic climate following Brexit minimal.
The company operates in a highly competitive market and profit margins are constantly squeezed. The Director is therefore conscious that costs and overheads are constantly monitored to maintain a level of profitability within the company. The Director expects the way forward for growth is by building on current relationships and efficiency.

Qualifying third party indemnity provisions
Director's liability and indemnity insurance was in force throughout the year to cover the directors and officers of
the company against actions brought against them in their personal capacities. Cover is not provided where the
individual has acted fraudulently or dishonestly.

Engagement with employees

STM Group (UK) Ltd is an Equal Opportunities and Diversity Aware employer, committed to promoting equality, diversity and inclusion amongst its workforce, whilst eliminating discrimination. Through its Support, Trust, Manage Vision, STM treats all employees as 'internal customers'. The STM aim is to create an inclusive environment and culture, with a diverse workforce that is representative of all sections of society, where everyone has the opportunity to fully contribute, and achieve, individual, full potential. 
It is STM's policy to treat all employees (and job applicants) fairly and equally, regardless of individual sex, sexual orientation, gender re-assignment, marriage or civil partnership, pregnancy or maternity, race, colour, creed, nationality, ethnic or national origin, marital status, religion or belief, age, disability, or union membership status.
STM's policy is to recruit disabled workers for those vacancies that they are able to fill. All neccessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disables poerson. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as apprropriate for their aptitudes and abilities.
STM, consequently, commits to ensuring every employee is given equal opportunity in every aspect of their working role, with individual differences (and similarities) not only being embraced, but also where individual employee contribution is recognised, celebrated and valued. All STM employees will be given the necessary support and encouragement to develop individual ability and utilise unique talent.
This policy to all aspects of employment, recruitment and related Terms & Conditions of Employment, including pay and benefits, training, appraisals, career development, conduct at work, disciplinary and grievance procedures, termination of employment and all other aspects of employment.

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 4

 
STM GROUP (UK) LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsMHAwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Mr P B Simpson
Director

Date: 19 February 2024
Page 5

 
STM GROUP (UK) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STM GROUP (UK) LIMITED
 

Opinion


We have audited the financial statements of STM Group (UK) Limited (the 'Company') for the year ended 31 January 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 January 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Page 6

 
STM GROUP (UK) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STM GROUP (UK) LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' report thereon.  The director is 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.


Opinion 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 Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Director's report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Director's 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:


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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Director's responsibilities statement set out on page 3, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
STM GROUP (UK) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STM GROUP (UK) LIMITED (CONTINUED)


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


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

•     Obtaining an understanding of the legal and regulatory frameworks that the company operates in;
•     Reviewing key correspondence with regulatory authorities;
•     Testing for evidence of management override;
•     Enquiry of management to identify any instances of non-compliance with laws and regulations;
•     Enquiry of management around actual and potential litigation and claims;
•     Enquiry of management to identify any instances of known or suspected instances of fraud;
•     Discussing among the engagement team regarding how and where fraud might occur.
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 representation.


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 Auditors' 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 2006Our 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 Auditors' 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.



Atul Kariya FCCA (Senior statutory auditor)
  
for and on behalf of
MHA
 
Statutory Auditors
  
London, United Kingdom

4 March 2024
MHA is the trading name of MacIntrye Hudson LLP, a limited liability partnership in England and Wales
(registered number OC312313).
Page 8

 
STM GROUP (UK) LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
25,477,435
25,351,987

Cost of sales
  
(20,846,719)
(21,404,127)

Gross profit
  
4,630,716
3,947,860

Administrative expenses
  
(4,335,218)
(4,393,097)

Other operating income
 5 
-
49,704

Operating profit/(loss)
 6 
295,498
(395,533)

Interest receivable and similar income
 9 
7,003
6,816

Profit/(loss) before tax
  
302,501
(388,717)

Tax on profit/(loss)
 10 
-
(94,165)

Profit/(loss) for the financial year
  
302,501
(482,882)

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 12 to 22 form part of these financial statements.
Page 9

 
STM GROUP (UK) LIMITED
REGISTERED NUMBER: 05466873

BALANCE SHEET
AS AT 31 JANUARY 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
292,620
318,316

  
292,620
318,316

Current assets
  

Debtors: amounts falling due within one year
 12 
7,853,794
6,133,066

Cash at bank and in hand
 13 
1,078
3

  
7,854,872
6,133,069

Creditors: amounts falling due within one year
 14 
(7,967,908)
(6,574,302)

Net current liabilities
  
 
 
(113,036)
 
 
(441,233)

Total assets less current liabilities
  
179,584
(122,917)

  

Net assets/(liabilities)
  
179,584
(122,917)


Capital and reserves
  

Called up share capital 
 15 
2,000
2,000

Profit and loss account
 16 
177,584
(124,917)

  
179,584
(122,917)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Mr P B Simpson
Director

Date: 19 February 2024

The notes on pages 12 to 22 form part of these financial statements.
Page 10

 
STM GROUP (UK) LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 February 2021 (as previously stated)
2,000
1,652,494
1,654,494

Prior year adjustment
-
(1,294,529)
(1,294,529)


At 1 February 2021 (as restated)
2,000
357,965
359,965


Comprehensive income for the year

Loss for the year
-
(482,882)
(482,882)



At 1 February 2022 (as previously stated)
2,000
2,015,099
2,017,099

Prior year adjustment
-
(2,140,016)
(2,140,016)


At 1 February 2022 (as restated)
2,000
(124,917)
(122,917)


Comprehensive income for the year

Profit for the year
-
302,501
302,501


At 31 January 2023
2,000
177,584
179,584


The notes on pages 12 to 22 form part of these financial statements.

Page 11

 
STM GROUP (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

1.


General information

STM Group (UK) Ltd is a private company limited by shares incorporated in England and Wales in the United Kingdom. The registered office of the entity is Solar House, 1st Floor, Romford Road, London, E15 4LJ. The principal activity of the company is the provision of security services.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The financial statements are presented in £ Sterling, the functional currency, rounded to the nearest £1.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of STM Group Holdings Limited as at 31 January 2023 and these financial statements may be obtained from Companies House.

Page 12

 
STM GROUP (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the Company as lessee

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

 
2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution pension plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

 
STM GROUP (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

 
2.9

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Motor vehicles
-
15%
Fixtures and fittings
-
10%
Office equipment
-
8%
Computer equipment
-
8%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 14

 
STM GROUP (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.14

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

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

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

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when
Page 15

 
STM GROUP (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)


2.14
Financial instruments (continued)

there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The director considers that the critical accounting policies where judgments and estimations have been
applied relate to the tangible asset lives, in particular the useful economic life and residual values of plant
and machinery, and the recoverability of trade debtors. The director has concluded that the asset values
and residual values are appropriate for plant and machinery and that trade debtors are appropriately
valued.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sales
25,477,435
25,351,987

25,477,435
25,351,987


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
25,477,435
25,351,987

25,477,435
25,351,987



5.


Other operating income

2023
2022
£
£

Government grants receivable - CJRS
-
49,704

-
49,704


Page 16

 
STM GROUP (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

6.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

2023
2022
£
£

Other operating lease rentals
36,416
50,060


7.


Auditors' remuneration

2023
2022
£
£


Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
24,000
20,000


The Company has taken advantage of the exemption not to disclose amounts paid for non audit services as these are disclosed in the group accounts of the parent Company.


8.


Employees

Staff costs were as follows:


As restated
2023
2022
£
£

Wages and salaries
17,755,214
19,644,132

Social security costs
1,457,818
1,548,414

Cost of defined contribution pension scheme
227,470
271,485

19,440,502
21,464,031


The director received no remuneration, pension or other benefits from the company in the year s (2022 - none) and accrues no pension benefits.

The average monthly number of employees, including the director, during the year was as follows:


        2023
        2022
            No.
            No.







Employees
825
920

Page 17

 
STM GROUP (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

9.


Interest receivable

2023
2022
£
£


Other interest receivable
7,003
6,816

7,003
6,816


10.


Taxation


As restated
2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
94,165


-
94,165


Total current tax
-
94,165

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

As restated
2023
2022
£
£


Profit/(loss) on ordinary activities before tax
302,501
(388,717)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
57,475
(73,856)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
7,367
7,379

Utilisation of tax losses
(64,842)
-

Unrelieved tax losses carried forward
-
160,642

Total tax charge for the year
-
94,165


Factors that may affect future tax charges

Page 18

 
STM GROUP (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
 
10.Taxation (continued)

On 1 April 2023 the corporation tax rate increased to 25%. 


11.


Tangible fixed assets





Motor vehicles
Fixtures and fittings
Office equipment
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 February 2022
109,915
32,932
390,704
117,347
650,898


Additions
-
148
-
7,502
7,650



At 31 January 2023

109,915
33,080
390,704
124,849
658,548



Depreciation


At 1 February 2022
84,488
27,342
182,650
38,102
332,582


Charge for the year
5,448
916
18,358
8,624
33,346



At 31 January 2023

89,936
28,258
201,008
46,726
365,928



Net book value



At 31 January 2023
19,979
4,822
189,696
78,123
292,620



At 31 January 2022
25,427
5,590
208,054
79,245
318,316


12.


Debtors

As restated
2023
2022
£
£


Trade debtors
4,233,611
3,224,185

Amounts owed by group undertakings
1,569,277
1,345,534

Other debtors
467,028
276,166

Prepayments and accrued income
1,529,044
1,232,347

Tax recoverable
54,834
54,834

7,853,794
6,133,066


Page 19

 
STM GROUP (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

13.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,078
3

Less: bank overdrafts
(1,060,343)
(351,887)

(1,059,265)
(351,884)



14.


Creditors: Amounts falling due within one year

As restated
2023
2022
£
£

Bank overdrafts
1,060,343
351,887

Trade creditors
2,566,504
2,047,040

Amounts owed to group undertakings
777
-

Corporation tax
90,494
94,165

Other taxation and social security
-
52,663

Other creditors
3,411,527
2,921,283

Accruals and deferred income
838,263
1,107,264

7,967,908
6,574,302


The bank overdraft is secured on the assets of the company. 


15.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2,000 (2022 - 2,000) Ordinary shares of £1.00 each
2,000
2,000



16.


Reserves

Profit and loss account

The Profit and loss account is represented by retained earnings. Changes in reserves are set out in the Statement of Changes in Equity.

Page 20

 
STM GROUP (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

17.


Prior year adjustment

The financial statements of the company for the year ended 31 January 2022 and have been restated to  correctly include additional costs which were subject to extensive estimate and judgement.
The prior period adjustments include £1,294,529 relating to amounts brought forward at 1 February 2021 in relation to incorrectly classified transactions. This adjustment resulted in a decrease in reserves at 1 February 2021 and an increase in creditor balances at that date of £1,294,529.
The profit in the year to 31 January 2022 has been adjusted by £845,487 to a loss of £482,882 due to the inclusion of additional costs. This has resulted in a decrease to the profit and loss account of £845,487 and an increase in creditors.


18.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £227,470 (2022 - £271,485). Contributions totaling £6,508 (2022 - £6,202) were payable to the fund at the balance sheet date and are included in creditors.


19.


Commitments under operating leases

At 31 January 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£

Land and Buildings


Not later than 1 year
220,416
170,000

Later than 1 year and not later than 5 years
26,685
-

247,101
170,000

2023
2022

£
£

Other


Not later than 1 year
10,743
50,059

Later than 1 year and not later than 5 years
15,144
30,006

25,887
80,065

Page 21

 
STM GROUP (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

20.


Transactions with directors

During the year, the company made advances totaling £Nil (2022 - £Nil) to Mr P B Simpson, the director, and received credits of £Nil (2022 - £Nil). Interest of £7,003 (2022 - £6,736) has been charged at commercial rates on overdrawn balances. As at 31 January 2023, Mr P B Simpson owed the company £287,136 (2022 - £280,133). The loan is unsecured and repayable on demand.


21.


Related party transactions

During the year, STM Cleaning Ltd, a limited liability company of which the director, Mr P B Simpson, is a shareholder, provided services to the company totaling £3,200,271 (2022 - £1,613,986). STM Cleaning Ltd also received services from STM Group (UK) Ltd during the year totaling £3,200,271 (2022 - £1,615,637). As at 31 January 2023, the STM Group (UK) Limited owed £373,627 to STM Cleaning Ltd (2022 - £542). These transactions were on normal commercial terms.


22.


Parent entity and controlling party

The company was under the control of the director, Mr P B Simpson, throughout the current and prior year, as a result of his control of the parent company, STM Group Holdings Ltd.
The largest and smallest groups in which the results of the company are consolidated are those headed by STM Group Holdings Ltd, with a registered office of Solar House, 1st Floor, Romford Road, London, E15 4LJ.
 
Page 22