Company registration number 12282569 (England and Wales)
STRI HOLDINGS LIMITED (CONSOLIDATED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
STRI HOLDINGS LIMITED (CONSOLIDATED)
COMPANY INFORMATION
Directors
Mr M Godfrey
Mr L A Penrose
Mr R Stuttard
(Appointed 13 March 2023)
Mr G Walters
(Appointed 13 March 2023)
Company number
12282569
Registered office
St Ives Estate
Bingley
BD16 1AU
Auditor
Azets Audit Services Limited
12 King Street
Leeds
LS1 2HL
STRI HOLDINGS LIMITED (CONSOLIDATED)
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
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 - 35
STRI HOLDINGS LIMITED (CONSOLIDATED)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

 

STRI Holdings Limited is a company incorporated in the United Kingdom and registered in England and Wales. The registered address is St Ives Estate, Bingley, West Yorkshire, BD16 1AU.

Principal activities

STRI Holdings Ltd is the 100% owner of STRI Ltd. STRI Ltd is a global design, engineering and management consultancy which plans, designs and builds sustainable places and spaces for people to enjoy. Its skills were founded within the design, management and maintenance of sports surfaces, and it continues to deliver and implement strategies for sports facilities and their surrounding infrastructure, as well as working within residential, corporate and commercial spaces.

 

STRI Ltd has a controlling interest in the following companies: STRI Australia Pty Ltd; SportsTurf Consultants (Australia) Pty Ltd; STRI Hong Kong Ltd; The Environmental Protection Group Ltd; Mashup Analytics Ltd; Carrick Sports Construction Ltd: and STRI Arabia Co. Ltd.

 

STRI Ltd has a non-controlling interest in the following companies: Sustainable Water and Drainage Systems Ltd; Sustainable Water and Drainage Systems BV; Shanghai Tizan Turf Science; Aspire Sports Turf; and E-Nano Ltd.

Business review

The group saw activity on a global basis in 2023.

 

The group derived its income during the year from a combination of sports surface consultancy, environmental services consultancy and sports surface contracting.

 

In January 2023, STRI Ltd’s newly created subsidiary company, STRI Arabia Ltd, began to trade.

 

In March 2023, STRI Holdings Ltd placed 73% of its shareholding into STRI EOT Ltd, an Employee Ownership Trust. This decision to create an Employee Ownership Trust was taken to help secure the future of the business and ensure that the interests of employees are central to all decisions.

 

In March 2023, Richard Stuttard and Gareth Walters joined the STRI Holdings Board of Directors.

 

Principal risks and uncertainties

 

The company manages uncertainty by (i) setting key performance indicators for each of its departments and subsidiaries, and (ii) holding regular board meetings to review these and to act if necessary.

 

Financial Risk

Non-recurring income represents more than half of the company’s turnover. The company is therefore exposed to the risk that such income may fall, for example, due to changes in market dynamics. The company manages this risk through a combination of strong relationships with existing clients and through a rigorous review of client portals for future projects.

 

Cashflow & credit risk

The company’s exposure to cashflow and credit risk is not deemed significant due to the internal funding

structure and a strong relationship with clients. Receivable balances are monitored on an ongoing basis and a provision is made for doubtful debts where necessary.

 

Legal & Political risk

The company’s rapid expansion into new services, products and geographies continues to present significant opportunities, but also carries some operational risk and uncertainty. The company manages this risk through the combination of a strong senior management team and a network of advisors who

are able to provide specialist advice.

 

STRI HOLDINGS LIMITED (CONSOLIDATED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

Currency risk

The company monitors foreign currency risk on an ongoing basis and makes appropriate decisions to mitigate any significant currency risks.

 

Macro-economic risk

The company is at risk of increases to both inflation and interest rates. The company manages inflation risk in the pricing of its jobs, ensuring that any rises in staff remuneration or cost of materials are closely monitored and reflected in accurate pricing. The risk to rising interest rates is low given the company’s low level of bank debt.

Performance review

The group reported turnover of £14,274,131 (2022 - £13,321,084).

 

The group reported an operating profit of £1,465,201 (2022 - £564,285).

 

The group reported profit for the financial year of £2,052,458 (2022 - £2,236,995).

 

As at 31 December 2023, the group’s cash balance stood at £1,019,981 (2022 - £4,428,544) and its net assets stood at £4,390,367 (2022 - £6,992,438).

Key performance indicators

The company considers a range of quantitative performance measures to gauge the success, including financial performance, quality measures, environmental measures and health & safety measures. The board assesses the key performance indicators each year and is satisfied that the results are in line with expectations for 2023.

Future developments and opportunitites

There were no post-balance sheet date developments or opportunities of a material nature between 31st December 2023 and the signing of the accounts.

On behalf of the board

Mr G Walters
Director
14 August 2024
STRI HOLDINGS LIMITED (CONSOLIDATED)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company is a global design, engineering and management consultancy which plans, designs and builds sustainable places and spaces for people to enjoy.  Its skills were founded within the design, management and maintenance of sports surfaces, and it continues to deliver and implement strategies for sports facilities and their surrounding infrastructure, as well as working within residential, corporate and commercial spaces.

Results and dividends

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

Distributions of £4,401,211 were paid to STRI EOT Ltd (2022: £nil). The directors do not recommend the payment of a further dividend.

Directors

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

Mr M Godfrey
Mr L A Penrose
Mr R Stuttard
(Appointed 13 March 2023)
Mr G Walters
(Appointed 13 March 2023)
Auditor

The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 G Walters
Director
14 August 2024
STRI HOLDINGS LIMITED (CONSOLIDATED)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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.

STRI HOLDINGS LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STRI HOLDINGS LIMITED (CONSOLIDATED)
- 5 -
Opinion

We have audited the financial statements of STRI Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 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.

Conclusions relating to going concern

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

 

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

 

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

Other information

The 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:

STRI HOLDINGS LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STRI HOLDINGS LIMITED (CONSOLIDATED)
- 6 -
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:

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.

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.

STRI HOLDINGS LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STRI HOLDINGS LIMITED (CONSOLIDATED)
- 7 -

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the group, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Chris Butt
For and on behalf of Azets Audit Services Limited
14 August 2024
Chartered Accountants
Statutory Auditor
12 King Street
Leeds
LS1 2HL
STRI HOLDINGS LIMITED (CONSOLIDATED)
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
14,274,131
13,321,084
Cost of sales
(7,059,179)
(7,371,137)
Gross profit
7,214,952
5,949,947
Administrative expenses
(6,128,072)
(5,643,667)
Other operating income
378,321
258,005
Operating profit
4
1,465,201
564,285
Share of profits of associates
1,187,545
1,734,215
Interest receivable and similar income
503
39
Interest payable and similar expenses
8
(144,534)
(164,600)
Profit on disposal of subsidiary
-
148,567
Profit before taxation
2,508,715
2,282,506
Tax on profit
9
(456,257)
(45,511)
Profit for the financial year
2,052,458
2,236,995
Other comprehensive income
Currency translation differences
(145,318)
73,775
Total comprehensive income for the year
1,907,140
2,310,770
Profit for the financial year is attributable to:
- Owners of the parent company
1,903,239
2,148,507
- Non-controlling interests
149,219
88,488
2,052,458
2,236,995
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,757,921
2,222,282
- Non-controlling interests
149,219
88,488
1,907,140
2,310,770
STRI HOLDINGS LIMITED (CONSOLIDATED)
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
368,424
430,333
Tangible assets
12
1,919,419
1,693,325
Investments
13
2,600,369
2,506,173
4,888,212
4,629,831
Current assets
Debtors
17
3,479,810
2,883,289
Cash at bank and in hand
1,019,981
4,428,544
4,499,791
7,311,833
Creditors: amounts falling due within one year
18
(4,109,875)
(4,203,913)
Net current assets
389,916
3,107,920
Total assets less current liabilities
5,278,128
7,737,751
Creditors: amounts falling due after more than one year
19
(516,576)
(413,313)
Provisions for liabilities
Deferred tax liability
21
371,185
332,000
(371,185)
(332,000)
Net assets
4,390,367
6,992,438
Capital and reserves
Called up share capital
1,000
1,000
Other reserves
(2,572,805)
(2,572,805)
Profit and loss reserves
6,649,891
9,293,181
Equity attributable to owners of the parent company
4,078,086
6,721,376
Non-controlling interests
312,281
271,062
4,390,367
6,992,438
The financial statements were approved by the board of directors and authorised for issue on 14 August 2024 and are signed on its behalf by:
14 August 2024
Mr G  Walters
Director
STRI HOLDINGS LIMITED (CONSOLIDATED)
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
2,573,805
2,573,805
Current assets
-
-
Creditors: amounts falling due within one year
18
(2,568,958)
(2,754,629)
Net current liabilities
(2,568,958)
(2,754,629)
Net assets/(liabilities)
4,847
(180,824)
Capital and reserves
Called up share capital
1,000
1,000
Profit and loss reserves
3,847
(181,824)
Total equity
4,847
(180,824)

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 £4,586,882 (2022 - £86,939 loss).

The financial statements were approved by the board of directors and authorised for issue on 14 August 2024 and are signed on its behalf by:
14 August 2024
Mr G  Walters
Director
Company registration number 12282569 (England and Wales)
STRI HOLDINGS LIMITED (CONSOLIDATED)
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Merger reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
1,000
(2,572,805)
7,070,899
4,499,094
304,968
4,804,062
Year ended 31 December 2022:
Profit for the year
-
-
2,148,507
2,148,507
88,488
2,236,995
Other comprehensive income:
Currency translation differences
-
-
73,775
73,775
-
73,775
Total comprehensive income
-
-
2,222,282
2,222,282
88,488
2,310,770
Disposal of shares in subsidiary to non-controlling interest
-
-
-
-
(122,394)
(122,394)
Balance at 31 December 2022
1,000
(2,572,805)
9,293,181
6,721,376
271,062
6,992,438
Year ended 31 December 2023:
Profit for the year
-
-
1,903,239
1,903,239
149,219
2,052,458
Other comprehensive income:
Currency translation differences
-
-
(145,318)
(145,318)
-
(145,318)
Total comprehensive income
-
-
1,757,921
1,757,921
149,219
1,907,140
Distributions
10
-
-
(4,401,211)
(4,401,211)
(108,000)
(4,509,211)
Balance at 31 December 2023
1,000
(2,572,805)
6,649,891
4,078,086
312,281
4,390,367
STRI HOLDINGS LIMITED (CONSOLIDATED)
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
1,000
(94,885)
(93,885)
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(86,939)
(86,939)
Balance at 31 December 2022
1,000
(181,824)
(180,824)
Year ended 31 December 2023:
Profit and total comprehensive income
-
4,586,882
4,586,882
Distributions
10
-
(4,401,211)
(4,401,211)
Balance at 31 December 2023
1,000
3,847
4,847
STRI HOLDINGS LIMITED (CONSOLIDATED)
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
1,019,113
1,041,475
Interest paid
(144,534)
(164,600)
Income taxes paid
(38,610)
(2,904)
Net cash inflow from operating activities
835,969
873,971
Investing activities
Purchase of tangible fixed assets
(536,594)
(393,169)
Proceeds on disposal of tangible fixed assets
46,706
16,354
Proceeds on disposal of subsidiaries
-
57,031
Receipts from associates
815,253
892,762
Purchase of investments
-
(27,510)
Interest received
503
39
Net cash generated from investing activities
325,868
545,507
Financing activities
Repayment of bank loans
(20,497)
(20,417)
Payment of finance leases obligations
-
(85,729)
Dividends paid to equity shareholders
(4,401,211)
-
Dividends paid to non-controlling interests
(88,000)
-
Net cash used in financing activities
(4,509,708)
(106,146)
Net (decrease)/increase in cash and cash equivalents
(3,347,871)
1,313,332
Cash and cash equivalents at beginning of year
4,428,544
3,191,623
Effect of foreign exchange rates
(60,692)
(76,411)
Cash and cash equivalents at end of year
1,019,981
4,428,544
STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

STRI Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is St Ives Estate, Bingley, BD16 1AU.

 

The group consists of STRI Holdings 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 £1.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The group has applied the principles of merger accounting on consolidation of the financial statements as control was transferred from Sports Turf Research Institute(The) on 31 May 2020 with no change to the overall control or activities of the group. Merger accounting requires that the results of the group be presented as if the group has always been in its present form and does not require a re-evaluation of fair values as at the point of acquisition. Accordingly, a merger reserve was created at the point of acquisition to reflect the difference between the nominal value of the shares issued plus the fair value of any other consideration given, and the nominal value of the shares received in exchange.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company STRI Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 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.

STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

The directors have considered all factors, including in the wider economy, as part of their assessment of going concern. Although the current economic climate creates both cashflow and profitability risks for the company, the directors believe on balance that they have sufficient resources to enable trading to continue for a period of at least one year from the date of approval of the financial statements, on the basis of information currently available to them as at the point of approving these. Accordingly, these financial statements have been prepared on the going concern basis.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.7
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.

1.8
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 land and buildings
5% Straight Line
Leasehold land and buildings
5% Straight Line
Plant and equipment
10% - 25% Straight Line
Fixtures and fittings
20% Straight Line
Computers
25% Straight Line
Motor vehicles
20% Straight Line

No depreciation is charged on assets under construction. 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.

1.9
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.

STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
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.

STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.11
Construction contracts

Construction contract debtors represent the gross unbilled amount for contract work performed to date. They are measured at cost plus profit recognised to date less a provision for foreseeable losses and less progress billings. Variations are included in contract turnover when they are reliably measurable and it is probable that the customer will approve the variation itself and the revenue arising from the variation. Claims are included in contract turnover only when they are reliably measurable and negotiations have reached the stage such that it is probable that the customer will accept the claim. Cost includes all expenditure related directly to specific projects and an allocation of fixed and variable overheads incurred in the Company's contract activities based on normal operating capacity.

 

Construction contract debtors are presented as part of debtors in the balance sheet. If payments received from customers exceed the income recognised, then the difference is presented as payments received on account in the balance sheet.

1.12
Cash and cash equivalents

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

1.13
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.

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.

STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
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.

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.

Derecognition of financial liabilities

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

1.14
Equity instruments

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

1.15
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.

STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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.

1.16
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.

1.17
Retirement benefits

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

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.20
Foreign exchange

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

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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Recognition of revenues on long term contracts

The majority of the Group's activities are undertaken via long-term contracts spanning more than one accounting period. These contracts are accounted for in accordance with FRS 102 which requires estimates to be made for the contract costs and revenue.

 

Management base their judgement of contract costs and revenue on the latest available information, which includes detailed contract valuations. Contract costs and revenue are affected by a variety of uncertainties that depend on the outcome of future events and often need to be revised as events unfold and uncertainties are resolved. The estimates are updated regularly and any impact reflected as appropriate.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sports Turf Consultancy
6,279,092
5,080,404
Sports Facility Construction
6,249,749
6,392,237
Environmental Consulting
1,745,290
1,848,443
14,274,131
13,321,084
2023
2022
£
£
Turnover analysed by geographical market
UK
10,354,875
9,595,101
Rest of Europe
774,007
1,346,469
Rest of the world
3,145,249
2,379,514
14,274,131
13,321,084
STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 22 -
2023
2022
£
£
Other revenue
Interest income
503
39
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
125,060
1,521
Research and development costs
2,985
3,018
Depreciation of owned tangible fixed assets
228,948
204,479
Depreciation of tangible fixed assets held under finance leases
32,080
32,080
Loss/(profit) on disposal of tangible fixed assets
2,766
(56)
Amortisation of intangible assets
61,909
61,909
Operating lease charges
98,326
98,326
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
11,990
11,000
Audit of the financial statements of the company's subsidiaries
31,135
27,650
43,125
38,650
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
Directors
4
2
4
2
Administrative and operations
122
128
-
-
Total
126
130
4
2
STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,242,875
5,282,209
-
0
-
0
Social security costs
508,700
497,278
-
-
Pension costs
270,304
278,976
-
0
-
0
6,021,879
6,058,463
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
402,067
180,541
Company pension contributions to defined contribution schemes
45,353
11,848
447,420
192,389
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
151,886
140,000
Company pension contributions to defined contribution schemes
8,719
8,611
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
27,486
15,596
Interest on related party loans
92,836
80,618
Other interest on financial liabilities
99
54,311
Interest on finance leases and hire purchase contracts
24,113
14,075
Total finance costs
144,534
164,600
STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
284,340
(5,039)
Adjustments in respect of prior periods
793
-
0
Total UK current tax
285,133
(5,039)
Foreign current tax on profits for the current period
117,939
134
Total current tax
403,072
(4,905)
Deferred tax
Origination and reversal of timing differences
52,631
48,219
Changes in tax rates
-
0
2,197
Adjustment in respect of prior periods
554
-
0
Total deferred tax
53,185
50,416
Total tax charge
456,257
45,511

The actual 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
2,508,715
2,282,506
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
589,548
433,676
Tax effect of expenses that are not deductible in determining taxable profit
82,457
15,352
Tax effect of income not taxable in determining taxable profit
(137,904)
(44,486)
Unutilised tax losses carried forward
12,174
12,749
Adjustments in respect of prior years
1,347
-
0
Amortisation on assets not qualifying for tax allowances
14,549
11,763
Adjustments in respect of financial assets
-
0
(313,464)
Research and development tax credit
(73,819)
(42,593)
Dividend income
(46,660)
-
Other
14,565
(27,486)
Taxation charge
456,257
45,511

The UK corporation tax rate increased from 19% to 25% from April 2023. Tax is measured at 23.5%, which is a combination of both rates. Deferred tax balances at the reporting date are therefore measured at 25% (2022 - 25%).

STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
10
Distributions
2023
2022
Recognised as distributions to equity holders:
£
£
Distributions to employee ownership trust
4,401,211
-
Dividends paid to non-controlling interests
108,000
4,509,211
-
STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
619,088
Amortisation and impairment
At 1 January 2023
188,755
Amortisation charged for the year
61,909
At 31 December 2023
250,664
Carrying amount
At 31 December 2023
368,424
At 31 December 2022
430,333
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost
At 1 January 2023
59,388
102,818
259,159
2,193,177
12,856
130,964
257,459
3,015,821
Additions
21,851
3,144
62,250
294,358
22,305
10,505
122,181
536,594
Disposals
-
0
-
0
-
0
(4,399)
-
0
-
0
(64,192)
(68,591)
Transfers
-
0
321,409
(321,409)
-
0
-
0
-
0
-
0
-
0
At 31 December 2023
81,239
427,371
-
0
2,483,136
35,161
141,469
315,448
3,483,824
Depreciation and impairment
At 1 January 2023
34,829
15,471
-
0
1,021,298
11,341
83,091
156,466
1,322,496
Depreciation charged in the year
12,805
13,198
-
0
183,462
1,716
23,993
25,854
261,028
Eliminated in respect of disposals
-
0
-
0
-
0
(2,564)
-
0
-
0
(16,555)
(19,119)
At 31 December 2023
47,634
28,669
-
0
1,202,196
13,057
107,084
165,765
1,564,405
Carrying amount
At 31 December 2023
33,605
398,702
-
0
1,280,940
22,104
34,385
149,683
1,919,419
At 31 December 2022
24,559
87,347
259,159
1,171,879
1,515
47,873
100,993
1,693,325
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Tangible fixed assets
(Continued)
- 28 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
544,792
324,719
-
0
-
0
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
2,573,805
2,573,805
Investments in associates
15
2,490,330
2,396,134
-
0
-
0
Other investments
110,039
110,039
-
0
-
0
2,600,369
2,506,173
2,573,805
2,573,805
Movements in fixed asset investments
Group
Shares in associates
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
2,396,134
110,039
2,506,173
Additions
218,552
-
218,552
Valuation changes
(124,356)
-
(124,356)
At 31 December 2023
2,490,330
110,039
2,600,369
Carrying amount
At 31 December 2023
2,490,330
110,039
2,600,369
At 31 December 2022
2,396,134
110,039
2,506,173

Other investments includes an investment in E-Nano Ltd which, in the prior year, increased from 7.5% to 10%.

STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
2,573,805
Carrying amount
At 31 December 2023
2,573,805
At 31 December 2022
2,573,805
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Carrick Sports Construction Limited
2 South Wardpark Court, Cumbernauld, Glasgow, United Kingdom, G67 3EH
Sports facility construction
Ordinary Shares
0
60.00
Mashup Analytics Ltd
C/O STRI St. Ives Estate, Harden, Bingley, United Kingdom, BD16 1AU
Sports data analytics
Ordinary Shares
0
75.00
SportsTurf Consultants (Australia) Pty. Ltd
Unit 112, 45 Gilby Road, MT Waverley, Victoria 3149, Australia
Sports and amenity turf consultancy
Ordinary Shares
0
100.00
STRI Australia Pty Ltd
Unit 112, 45 Gilby Road, MT Waverley, Victoria 3149, Australia
Sports and amenity turf consultancy
Ordinary Shares
0
100.00
STRI Hong Kong Limited
Room 2A, 14/F Chun Wo Comm. Centre, 23-29 Wing Wo Street, Central, Hong Kong
Sports and amenity turf consultancy
Ordinary Shares
0
100.00
STRI Ltd.
St Ives Estate, Harden, Bingley, West Yorkshire, BD16 1AU
Sports and amenity turf consultancy
Ordinary Shares
100.00
-
The Environmental Protection Group Limited
C/O STRI Ltd St. Ives Estate, Harden, Bingley, England, BD16 1AU
Environmental Consultancy
Ordinary Shares
0
100.00
STRI Arabia
Al Zahra, Said Al Dawlah Al Hamdani, Riyadh, Kingdom of Saudi Arabia
Sports and amenity turf consultancy
Ordinary Shares
0
100.00
15
Associates

Details of associates at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Aspire Sport Turf Management LLC
Hessa Compound, Villa 5, Al Doha, Qatar
Sports and amenity turf consultancy
Ordinary Shares
0
30
Shanghai Tizan Lawn Technology Co. Ltd
Shanghai Kehua Sports Offices, 858 Fang Dian road, Pudong New District, China
Sports and amenity turf consultancy
Ordinary Shares
0
40
STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
16
Joint ventures

Details of joint ventures at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Interest
% Held
held
Direct
Indirect
Sustainable Water and Drainage Systems Limited
c/o Polypipe Ltd, Broomhouse Lane, Edlington, Doncaster, DN12 1ES
Water management solutions
Ordinary Shares
0
50.00
Sustainable Water and Drainage Systems BV
c/o Polypipe Ltd, Broomhouse Lane, Edlington, Doncaster, DN12 1ES
Water management solutions
Ordinary Shares
0
50.00
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,556,944
1,474,407
-
0
-
0
Gross amounts owed by contract customers
693,358
1,011,136
-
0
-
0
Corporation tax recoverable
-
0
28,974
-
0
-
0
Other debtors
34,923
161,485
-
0
-
0
Prepayments and accrued income
194,585
193,287
-
0
-
0
3,479,810
2,869,289
-
-
Amounts falling due after more than one year:
Deferred tax asset (note 21)
-
0
14,000
-
0
-
0
Total debtors
3,479,810
2,883,289
-
-

Amounts owed by group undertakings are due on demand.

STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
17,586
14,042
-
0
-
0
Obligations under finance leases
105,370
81,537
-
0
-
0
Trade creditors
969,648
1,108,554
-
0
-
0
Amounts owed to group undertakings
-
-
905,308
834,879
Corporation tax payable
218,979
13,405
-
0
-
0
Other taxation and social security
478,466
400,336
-
-
Deferred income
22
211,446
204,200
-
0
-
0
Other creditors
1,740,216
2,004,945
1,663,650
1,919,750
Accruals and deferred income
368,164
376,894
-
0
-
0
4,109,875
4,203,913
2,568,958
2,754,629

Bank loans are secured as detailed in note 20.

Amounts owed to group undertakings are due on demand.

19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
235,945
259,986
-
0
-
0
Obligations under finance leases
264,248
153,327
-
0
-
0
Other creditors
16,383
-
0
-
0
-
0
516,576
413,313
-
-

Bank loans are secured as detailed in note 20.

Amounts included above which fall due after five years are as follows:
Payable by instalments
189,879
210,570
-
-
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
253,531
274,028
-
0
-
0
Payable within one year
17,586
14,042
-
0
-
0
Payable after one year
235,945
259,986
-
0
-
0
STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Loans and overdrafts
(Continued)
- 32 -

STRI Ltd, a subsidiary company guarantees the bank loan borrowings of the group. The borrowings are secured against the property held by STRI Ltd.

The bank loan is repayable over 20 years at an interest rate of 2.35% above the base rate.

21
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
371,185
332,000
-
-
Provisions
-
-
-
14,000
371,185
332,000
-
14,000
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
318,000
-
Charge to profit or loss
53,185
-
Liability at 31 December 2023
371,185
-

The deferred tax asset set out above is expected to reverse within 12 months. The deferred tax liability set out above relates to accelerated capital allowances that are not expected to substantially unwind within 12 months.

22
Deferred income
Group
Company
2023
2022
2023
2022
£
£
£
£
Arising from government grants
6,953
-
-
-
Other deferred income
204,493
204,200
-
-
211,446
204,200
-
-
STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
270,304
278,976

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.

At the year end, the company has accrued for £9,922 (2022 - £2,605) of pension costs which have not been paid to the scheme provider.

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
114,471
121,161
-
-
Between two and five years
137,910
199,267
-
-
252,381
320,428
-
-
STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
25
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Interest paid on loans
2023
2022
£
£
Group and Company
Other related parties
92,836
80,618

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group and Company
Other related parties
1,979,750
1,938,100

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Other related parties
907
133,296
26
Directors' transactions

Advances or credits have been granted by the group to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Mr M Godfrey - Directors' loan account
3.00
9,283
260
(9,283)
260
Mr L A Penrose - Directors' loan account
3.00
3,226
7,887
(10,925)
188
12,509
8,147
(20,208)
448
27
Controlling party

In March 2023, STRI Holdings Ltd placed 73% of its shareholding into an Employee Ownership Trust. The ultimate controlling party of the group is STRI EOT Ltd.

 

STRI Holdings Limited is the smallest and largest group company which prepares consolidated accounts.

STRI HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
28
Parental Guarantee

STRI Ltd has, in accordance with s479C of the Companies Act 2006, provided a guarantee over the liabilities of its subsidiary, Mashup Analytcs Ltd (company registration number 11334235; registered in England & Wales; registered office address C/O STRI St. Ives Estate, Harden, Bingley, United Kingdom, BD16 1AU) which permits the subsidiary to not obtain an audit of their individual financial statements for the year ended 31 December 2023, in accordance with the exemptions conferred by s479A Companies Act 2006.

29
Events after the reporting date

There were no post-balance sheet date developments or opportunities of a material nature between 31st December 2023 and the signing of the accounts.

30
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,052,458
2,236,995
Adjustments for:
Share of results of associates and joint ventures
(1,187,545)
(1,734,215)
Taxation charged
456,257
45,511
Finance costs
144,534
164,600
Investment income
(39,999)
(39)
Loss/(gain) on disposal of tangible fixed assets
2,766
(56)
Amortisation and impairment of intangible assets
61,909
61,909
Depreciation and impairment of tangible fixed assets
261,028
236,559
Reduction of deferred consideration payable
-
(112,638)
Other gains and losses
-
(148,567)
Movements in working capital:
(Increase)/decrease in debtors
(712,495)
302,997
(Decrease)/increase in creditors
(27,046)
169,402
Increase/(decrease) in deferred income
7,246
(180,983)
Cash generated from operations
1,019,113
1,041,475
31
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Borrowings excluding overdrafts
(274,028)
20,497
(253,531)
Obligations under finance leases
(234,864)
(134,754)
(369,618)
(508,892)
(114,257)
(623,149)
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