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Registration number: 05025975

Circum Fire Engineering Ltd

Annual Report and Financial Statements

for the Year Ended 30 September 2023

 

Circum Fire Engineering Ltd

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 9

Profit and Loss Account and Statement of Retained Earnings

10

Balance Sheet

11

Notes to the Financial Statements

12 to 21

 

Circum Fire Engineering Ltd

Company Information

Directors

M L Wheeler

A J Wheal

Registered office

4 Swanbridge Industrial Park
Black Croft Road
Witham
Essex
CM8 3YN

Auditors

Clement Rabjohns Limited
Registered Auditors and Chartered Accountants
111/113 High Street
Evesham
Worcestershire
WR11 4XP

 

Circum Fire Engineering Ltd

Strategic Report for the Year Ended 30 September 2023

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

Principal activity

The principal activity of the company is supply and maintenance of fire security systems.

Fair review of the business

During the year, the company has grown organically delivering larger scale projects. This growth has seen Turnover increase by over 200% to £17M. Despite challenging market conditions, the company has grown Operating Profit and EBITDA, the key indicators by which the directors measure the business.
The company traded well throughout the year generating EBITDA of £963K and holding cash balances of £368K. See reconciliation of EBITDA below:

Note

2023
 £

2022
 £

Reconciliation of EBITDA

 

Operating Profit

 

667,176

432,819

Interest Payable

 

6,105

832

Loss on disposal of assets

 

2,431

4,182

Depreciation & Amortisation

 

17,058

8,490

Other non-operating costs

 

58,349

-

Group management recharge

 

212,313

197,370

 

963,432

643,693

The company uses a range of performance measures to effectively monitor and manage its business. The Directors and senior management review these KPI’s and financial performance monthly and these are discussed at the monthly board meetings. The financial KPI’s used to manage the business are disclosed below:

Financial KPIs

Unit

2023

2022

Turnover

£

17,060,640

5,591,481

Turnover growth

%

205

53

Gross Profit

£

2,439,035

1,484,678

EBITDA before non-recurring costs

£

2,034,673

643,693

EBITDA growth

%

216

83

Non-recurring costs

£

1,071,241

-

EBITDA after non-recurring costs

£

963,432

643,693

 

Circum Fire Engineering Ltd

Strategic Report for the Year Ended 30 September 2023

Principal risks and uncertainties

The principal risks to the business are;

- To mis-manage the installation of equipment at a client site resulting in a claim for contractual damages
- To provide defective design services to a client resulting in inadequate fire or security protection

The company has significant technical expertise and systems of management control and supervision borne out by its industry accreditations. These, combined with our unblemished track record over many years of trading provides comfort that the above risks are being properly mitigated.

Approved and authorised by the Board on 13 August 2024 and signed on its behalf by:
 

.........................................
M L Wheeler
Director

 

Circum Fire Engineering Ltd

Directors' Report for the Year Ended 30 September 2023

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

Directors of the company

The directors who held office during the year were as follows:

M L Wheeler

D W Watson (ceased 29 March 2024)

D R Pugh (appointed 1 March 2023 and ceased 21 June 2024)

A J Wheal

Financial instruments

Objectives and policies

The group's activities expose it to a variety of financial risks that include the effects of the change in price risk, liquidity risk, interest rate risk and operational risk.

Price risk, credit risk, liquidity risk and cash flow risk

The principal risks to the business are:

Price risk
The Group is exposed to price risk due to normal inflationary increase in the purchase price of supplies and services.

Liquidity risk
The Group regularly reviews its liquidity risk and has arranged appropriate facilities to be available.

Credit risk
The Group has a rigorous credit policy which it uses to manage credit risk. The cost of borrowing and general inflation increases have increased the risk of bad debt occurring, but the business has a wide customer base which spreads its risk and provision for potential bad debts.

Interest rate risk
The Group is exposed to interest rate risk on its borrowings, which are based on margin over SONIA. A rise in interest rates could increase the cost of borrowings. The Group continually monitors interest rate risks and reviews hedging as a way to mitigate interest rate rises though no hedging arrangements are currently in place.

Operational risk
- The mis-handling of a significant acquisition
- To mis-manage the installation of equipment at a client site resulting in a claim for contractual damages
- To provide defective design services to a client resulting in inadequate fire or security protection

The group has significant technical expertise and systems of management control, and supervision borne out by its industry accreditations. These, combined with our unblemished track record over many years of trading, provides comfort that the above risks are being properly mitigated.

Going concern

 

Circum Fire Engineering Ltd

Directors' Report for the Year Ended 30 September 2023

The directors, having assessed future profit forecasts and the level of financial support available, where necessary, have no reason to believe that a material uncertainty exists about the ability of the company to ensure that is can continue as a going concern for a period of at least a year from the date of approval of the financial statements. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Clement Rabjohns Limited as auditors of the company is to be proposed at the forthcoming Annual General Meeting.

Approved and authorised by the Board on 13 August 2024 and signed on its behalf by:
 

.........................................
M L Wheeler
Director

 

Circum Fire Engineering Ltd

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

 

Circum Fire Engineering Ltd

Independent Auditor's Report to the Members of Circum Fire Engineering Ltd

Opinion

We have audited the financial statements of Circum Fire Engineering Ltd (the 'company') for the year ended 30 September 2023, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 30 September 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 original financial statements were authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Circum Fire Engineering Ltd

Independent Auditor's Report to the Members of Circum Fire Engineering Ltd

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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:

 

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. Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities even though the audit has been properly planned and performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Circum Fire Engineering Ltd

Independent Auditor's Report to the Members of Circum Fire Engineering Ltd

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, and the industry in which it operates. These include but are not limited to compliance with the Companies Act 2006, UK Generally Accepted Accounting Principles and the relevant tax compliance regulations for the company.

We obtained an understanding of how the company is complying with these frameworks through discussions with management.

We enquired with management whether there were any instances of non-compliance with laws and regulations or whether they had knowledge of actual or suspected fraud. These enquiries are corroborated through follow-up audit procedures including but not limited to a review of legal and professional costs and correspondence.

We assessed the susceptibility of the company's financial statements to material misstatement, including the risk of fraud and management override of controls. We designed our audit procedures to respond to this assessment, including the identification and testing of any related party transactions and the testing of journal transactions that arise from management estimates, that are determined to be of significant value or unusual in their nature.

We assessed the appropriateness of the collective competence and capabilities of the engagement team, including consideration of the engagement team's knowledge and understanding of the industry in which the company operates in, and their practical experience through training and participation with audit engagements of a similar nature.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.

......................................
Philip Parsons FCA (Senior Statutory Auditor)
For and on behalf of Clement Rabjohns Limited, Statutory Auditor

111/113 High Street
Evesham
Worcestershire
WR11 4XP

13 August 2024

 

Circum Fire Engineering Ltd

Profit and Loss Account and Statement of Retained Earnings for the Year Ended 30 September 2023

Note

2023
£

2022
£

Turnover

3

17,060,640

5,591,481

Cost of sales

 

(14,591,605)

(4,106,805)

Gross profit

 

2,469,035

1,484,676

Administrative expenses

 

(1,852,220)

(1,051,024)

Other operating income

4

56,466

-

Operating profit

6

673,281

433,652

Interest payable and similar charges

7

(6,105)

(832)

 

(6,105)

(832)

Profit before tax

 

667,176

432,820

Taxation

10

48,445

(4,259)

Profit for the financial year

 

715,621

428,561

Retained earnings brought forward

 

1,586,226

1,157,665

Retained earnings carried forward

 

2,301,847

1,586,226

 

Circum Fire Engineering Ltd

(Registration number: 05025975)
Balance Sheet as at 30 September 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

11

175,936

37,965

Tangible assets

12

41,630

19,849

 

217,566

57,814

Current assets

 

Stocks

13

21,372

21,372

Debtors

14

5,380,895

2,996,466

Cash at bank and in hand

 

367,819

268,873

 

5,770,086

3,286,711

Creditors: Amounts falling due within one year

16

(3,677,338)

(1,752,387)

Net current assets

 

2,092,748

1,534,324

Total assets less current liabilities

 

2,310,314

1,592,138

Provisions for liabilities

17

(7,517)

(4,962)

Net assets

 

2,302,797

1,587,176

Capital and reserves

 

Called up share capital

950

950

Retained earnings

2,301,847

1,586,226

Shareholders' funds

 

2,302,797

1,587,176

Approved and authorised by the Board on 13 August 2024 and signed on its behalf by:
 

.........................................
M L Wheeler
Director

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales, UK.

The address of its registered office is:
4 Swanbridge Industrial Park
Black Croft Road
Witham
Essex
CM8 3YN
United Kingdom

The principal place of business is:
Fountain Court
Room L9 + L10
2 Victoria Square
St Albans
Hertfordshire
AL1 3TF
United Kingdom

These financial statements were authorised for issue by the Board on 13 August 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are presented in Pound Sterling (£).

Summary of disclosure exemptions

Circum Fire Engineering Limited meets the definition of a qualifying entity under FRS 102 and is therefore exempt from certain disclosure requirements in respect of its financial statements. Exemptions have been taken in relation to the preparation of a statement of cash flows, financial instruments and key management compensation.

Name of parent of group

These financial statements are consolidated in the financial statements of EA-RS Fire Engineering Group Limited.

The financial statements of EA-RS Fire Engineering Group Limited may be obtained from 4 Swanbridge Industrial Park, Black Croft Road, Witham, Essex, CM8 3YN.

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2023

Going concern

The financial statements have been prepared on a going concern basis.

Key sources of estimation uncertainty

The turnover policy and financial instrument policies below set out the company's policies with regards to revenue recognition and recognition of accrued contract costs which affects turnover, cost of sales, gross profit, debtors and creditors. This is necessarily based on assumptions and estimates in relation to the degree of contract completion and the expected profitability of each contract. The main estimates this year are the sum of £ 2,241,547 (2022: £1,488,506) included in debtors in respect of gross amounts due from contract customers and the sum of £309,110 (2022: £63,115) included in creditors in respect of gross amounts due to contract suppliers..

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Contract revenue recognition

Turnover is derived from ordinary activities and is stated after trade discounts and net of VAT

Revenue from long term contracts is recognised by the reference to the stage of completion of the contract. The stage of completion is determined by the amount of progress made on the work relating to the next stage payment, which is determined in the contract wording. A prudent level of profit attributable to the contract activity is recognised if the final outcome of such contracts can be reliably assessed. An expected loss on a contract progress are shown in creditors, and the amount by which the turnover is in excess of payments on account is included within debtors.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2023

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and Machinery

10% reducing balance

Fixtures and fittings

33% straight line

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

straight line over 10 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

17,060,640

5,591,481

The analysis of the company's turnover for the year by class of business is as follows:

2023
£

2022
£

Fire security systems

17,060,640

5,591,481

The analysis of the company's turnover for the year by market is as follows:

2023
£

2022
£

UK

17,060,640

5,591,481

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2023

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Miscellaneous other operating income

56,466

-

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2023
£

2022
£

Loss on disposal of tangible assets

(2,431)

(4,182)

6

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

17,058

8,490

Amortisation expense

-

4,218

Operating lease expense - plant and machinery

245,923

106,998

Loss on disposal of property, plant and equipment

2,431

4,182

7

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

2,911

832

Interest expense on other finance liabilities

3,194

-

6,105

832

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

1,877,904

974,501

Social security costs

210,136

132,047

Pension costs, defined contribution scheme

54,486

12,198

Other employee expense

7,528

-

2,150,054

1,118,746

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2023

2023
No.

2022
No.

Other departments

38

17

38

17

9

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

15,000

12,100


 

10

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

(51,000)

2,355

Deferred taxation

Arising from origination and reversal of timing differences

2,249

1,904

Arising from changes in tax rates and laws

306

-

Total deferred taxation

2,555

1,904

Tax (receipt)/expense in the income statement

(48,445)

4,259

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 22.01% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

667,176

432,820

Corporation tax at standard rate

146,845

82,236

Effect of expense not deductible in determining taxable profit (tax loss)

3,427

-

Deferred tax expense relating to changes in tax rates or laws

306

-

Deferred tax expense from unrecognised temporary difference from a prior period

4,014

1,904

Tax (decrease)/increase from effect of capital allowances and depreciation

(511)

358

Tax decrease arising from group relief

(147,501)

-

Tax decrease from effect of adjustment in research and development tax credit

(55,025)

(80,239)

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2023

2023
£

2022
£

Total tax (credit)/charge

(48,445)

4,259

The standard rate of corporation tax increased to 25% from 19% with effect from 1 April 2023. Deferred tax has been measured at the rate it is expected to reverse, being 25%.

Deferred tax

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Fixed asset timing differences

-

10,408

Short term timing differences

-

(2,891)

-

7,517

2022

Asset
£

Liability
£

Fixed asset timing differences

-

4,962

-

4,962

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2023

11

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 October 2022

42,183

42,183

Additions acquired separately

142,190

142,190

At 30 September 2023

184,373

184,373

Amortisation

At 1 October 2022

4,218

4,218

Amortisation charge

4,219

4,219

At 30 September 2023

8,437

8,437

Carrying amount

At 30 September 2023

175,936

175,936

At 30 September 2022

37,965

37,965

12

Tangible assets

Fixtures and fittings
£

Plant and machinery
£

Total
£

Cost or valuation

At 1 October 2022

29,938

6,000

35,938

Additions

37,050

-

37,050

Disposals

(8,894)

(6,000)

(14,894)

At 30 September 2023

58,094

-

58,094

Depreciation

At 1 October 2022

10,910

5,179

16,089

Charge for the year

12,018

821

12,839

Eliminated on disposal

(6,464)

(6,000)

(12,464)

At 30 September 2023

16,464

-

16,464

Carrying amount

At 30 September 2023

41,630

-

41,630

At 30 September 2022

19,028

821

19,849

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2023

13

Stocks

2023
£

2022
£

Other inventories

21,372

21,372

14

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

2,590,934

1,304,958

Amounts owed by related parties

819,526

773,277

Other debtors

 

729,053

137,262

Prepayments

 

177,483

53,883

Gross amount due from customers for contract work

 

1,063,899

727,086

   

5,380,895

2,996,466

15

Cash and cash equivalents

2023
£

2022
£

Cash at bank

367,819

268,873

16

Creditors

Note

2023
£

2022
£

Due within one year

 

Trade creditors

 

3,101,730

1,485,743

Social security and other taxes

 

88,655

54,457

Other payables

 

8,045

12,223

Accruals

 

375,253

117,371

Income tax liability

10

103,655

82,593

 

3,677,338

1,752,387

17

Provisions for liabilities

Deferred tax
£

Total
£

At 1 October 2022

4,962

4,962

Increase (decrease) in existing provisions

2,555

2,555

At 30 September 2023

7,517

7,517

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2023

18

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £54,486 (2022 - £12,198).

19

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

950

950

950

950

         

20

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

30,259

70,210

Later than one year and not later than five years

50,707

77,780

80,966

147,990

21

Financial guarantee contracts

The company's assets have been pledged as security for a debenture given by Rockpool (Security Trustee) Limited to an intermediate parent company in the Group.

The company's assets have been secondly pledged as security for a debenture given by Ares Management Limited to an intermediate parent company in the Group.

22

Parent and ultimate parent undertaking

The company's immediate parent is EA-RS Fire Engineering Limited, incorporated in the United Kingdom.

 The ultimate parent is EA-RS Fire Engineering Group Limited, incorporated in the United Kingdom.

  These financial statements are available upon request from 4 Swanbridge Industrial Park, Black Croft Road, Witham, Essex, CM8 3YN.