Company registration number 11552376 (England and Wales)
SCS GROUP HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
SCS GROUP HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr P Flynn
Mr C I Scott
Mr D L Friend
Mr P Baker
Company number
11552376
Registered office
Newmarket House
Aberford Road
Stanley
Wakefield
WF3 4AL
Auditor
Azets Audit Services Limited
12 King Street
Leeds
LS1 2HL
SCS GROUP HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
5 - 6
Directors' responsibilities statement
4
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 31
SCS GROUP HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 1 -

The directors present the strategic report for the year ended 28 February 2024.

Fair review of the business

Our business model is founded on a talented workforce and supply chain, and long term relationships with clients and partners. We use these resources to deliver high quality construction projects.

 

What We Do

SCS Building Solutions are Specialists in the supply & installation of SFS, metal stud partitions /​ drylining, GRG encasements /​ profiles and suspended ceilings. The diversity of our offering mitigates the impact of fluctuating individual markets.

 

Our resources

 

A Talented Workforce

We employ approximately 36 directly employed members of staff. We have a low staff turnover with the current average staff retention of 8.36 years. Many existing senior staff members have been with the group for over 15 years and many site managers worked for the group as subcontractors prior to being employed full time by the SCS Group.

 

High Quality Supply Chain

We have a trusted network of suppliers and subcontractors who are aligned to our values and can help us deliver projects efficiently and to a high standard.

 

Strong Client relationships

We have formed long term relationships with our clients.

 

Maintaining and enhancing our resources

 

Staff

We develop our staff through training and mentoring to increase the skills and knowledge they require to maximise their potential and meet the needs of our markets. We create a safe working environment in which our employees work.

 

Our Supply Chain

We build long term relationships with our suppliers and subcontractors based on fairness and respect. By aligning our supply chain to our values and quality criteria we reduce the likelihood of error on projects and increase efficiency and client satisfaction.

 

Client Relationships

Using our talented work force and high-quality supply chain we deliver safe, efficiently run, high quality projects that match our clients objectives. The relationships we build as a result increase the prospect of repeat business, which can have a positive impact on profitability and long-term growth.

 

Disciplined financial managements

We monitor our cash levels daily and foster good relationships with financial institutions.

 

Our Culture

Underpinning our business model, our core values and total commitment creates a culture that is focused on developing and empowering our employees and delivering high quality projects for clients. Whatever the task everybody can and should take pride in a job well done. We strive to always work in a safe and sustainable way. These principles are driven by the Board.

 

Our Strategy

Creating and maintaining long term relationships and delivering repeat business. We target opportunities that suit our experience and expertise. We take a long-term approach to relationships with our clients aiming to deliver exceptional quality and service that encourages them to choose us for the next project. To deliver high quality we employ talented people and work closely with our supply chain.

 

SCS GROUP HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 2 -

Key Challenges identified by Management are:

 

Government changes - a significant amount of construction work is driven by UK Government expenditure, in particular education and healthcare projects and therefore any reduction in this expenditure could adversely impact on SCS workflow. We have looked to mitigate this risk by ensuring we work on projects across a variety of sectors, including commercial and non commercial.

 

Poor Contract Selection – A failure to identify the risks of a project and what has been included within the contracts of work may lead to poor delivery and ultimately result in reputational damage and loss of opportunities. We have looked to mitigate this risk by employing an internal advisor to review our contracts.

 

Over reliance on certain customers - We have made a move to work for a varied range of contractors to help spread risk. We are looking to diversify and refresh customers in line with market trends by increasing work with different main contractors.

 

We have seen stabilizations in the debtors of the business. These are still extremely high due to extended payment terms which affect the industry as a whole. The group continues to manage this liquidity risk by making good use of the funding which is available to the business. The Group has in place Credit Insurance against our debtors, which provides comfort in a volatile market.

 

Financial Risk – Following the MBO the company has a high level of debt. This has been necessary to finance the share purchase. The group has agreed to meet a number of covenants as part of its financing arrangements. The group has put in place several strategies to monitor the working capital which include daily cash reporting and monthly cash flow forecasting.Key

 

Personnel – the success of our business is dependant on the staff that we employ. We are focused on engaging with all our staff within the organisation to ensure that they continue to deliver great customer services for our clients. We carry out a two-way feedback on performance during annual reviews.

 

Health & Safety – the nature of the business means that employees and third parties are exposed to the potential Health and Safety risks and management of these risks is critical to the success of the business .The company is committed to the HS&E. The company has formed a Health & Safety committee and our H&S Advisor carries out a monthly review of the health and safety measures in place on our sites.

 

Future Direction

 

To take the group forward, the board continue to strive for efficiencies within the business. We are implementing computer software programmes for most functions within the business, which reduce manual inputting errors which can be evident in traditionally built Spreadsheets.

 

The group take time to review all material purchase orders for accuracy and ensure no over ordering is taking place. The group engage early with all manufacturers and suppliers to ensure material procurement is in place well ahead of site requirements.

 

The group deal directly with subcontractors who can deliver the schemes that the group are working on, and ensuring the group maintains the required labour levels to maintain programme.

SCS GROUP HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 3 -
Key performance indicators

The group has enjoyed good year to year end February 2024, and whilst turnover maybe lower than the previous year, the profit % has remained stable. SCS implemented lessons learnt from previous years to engage our supply chain early in the project life cycle.

Securing fixed or capped prices on materials has had a positive impact in maintaining budgeted costs on all projects.

Communicating clearly and regularly with the SCS subcontract operatives has ensured a reliable workforce across all SCS sites, ensuring that programme requirements are met.

Key Performance Indicators

Feb-24     Feb-23

Turnover             £14,505,398      £22,455,928

Operating Profit     £1,302,969      £2,385,712

Operating Profit Margin          8.98%              10.62%    

Overheads as a % of Revenue     17.28%          10.30%

 

On behalf of the board

Mr P Flynn
Director
12 August 2024
SCS GROUP HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 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.

SCS GROUP HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 5 -

The directors present their annual report and financial statements for the year ended 28 February 2024.

Principal activities

The principal activity of the company and group continued to be that of specialists in the supply and installation of SFS, metal stud partitions/drylining, GRG encasements/profiles and suspended ceilings.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £333,316. The directors do not recommend payment of a final dividend.

Directors

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

Ms M Chappell Dixon
(Resigned 14 April 2023)
Mr P Flynn
Mr C I Scott
Mr D L Friend
Mr P Baker
Financial instruments

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

 

As at the year-end date cash reserves within the business were below the usual level due to timing differences between customers and subcontractors. The directors monitor the working capital on an ongoing basis to manage liquidity risks. Shortly subsequent to the year-end date, a significant portion of the working capital has been converted to cash reserves.

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.

SCS GROUP HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 6 -
On behalf of the board
Mr P Flynn
Mr C I Scott
Director
Director
Mr D L Friend
Mr P Baker
Director
Director
12 August 2024
SCS GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SCS GROUP HOLDINGS LIMITED
- 7 -
Opinion

We have audited the financial statements of SCS Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2024 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:

SCS GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCS GROUP HOLDINGS LIMITED
- 8 -
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.

SCS GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCS GROUP HOLDINGS LIMITED
- 9 -

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 entity, 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.

Matthew Grant (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
14 August 2024
Chartered Accountants
Statutory Auditor
12 King Street
Leeds
LS1 2HL
SCS GROUP HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
14,505,398
22,455,928
Cost of sales
(10,727,474)
(17,770,633)
Gross profit
3,777,924
4,685,295
Administrative expenses
(2,506,142)
(2,312,243)
Other operating income
31,187
12,660
Operating profit
4
1,302,969
2,385,712
Interest receivable and similar income
8
-
0
40
Interest payable and similar expenses
9
(67,763)
(120,624)
Profit before taxation
1,235,206
2,265,128
Tax on profit
10
(352,566)
(492,000)
Profit and total comprehensive income for the year
882,640
1,773,128
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SCS GROUP HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
28 FEBRUARY 2024
28 February 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
4,103,669
4,396,788
Tangible assets
13
33,998
30,854
4,137,667
4,427,642
Current assets
Debtors falling due after more than one year
15
421,942
720,749
Debtors falling due within one year
15
2,949,715
2,541,432
Cash at bank and in hand
80,321
1,777,424
3,451,978
5,039,605
Creditors: amounts falling due within one year
16
(4,424,098)
(5,571,013)
Net current liabilities
(972,120)
(531,408)
Total assets less current liabilities
3,165,547
3,896,234
Creditors: amounts falling due after more than one year
17
(1,013,150)
(2,202,325)
Provisions for liabilities
Deferred tax liability
19
7,164
8,000
(7,164)
(8,000)
Net assets
2,145,233
1,685,909
Capital and reserves
Called up share capital
21
276,923
336,923
Share premium account
398,077
428,077
Capital redemption reserve
60,000
60,000
Profit and loss reserves
1,410,233
860,909
Total equity
2,145,233
1,685,909
The financial statements were approved by the board of directors and authorised for issue on 12 August 2024 and are signed on its behalf by:
12 August 2024
Mr P  Flynn
Mr C I Scott
Director
Director
Mr D L Friend
Mr P Baker
Director
Director
Company registration number 11552376 (England and Wales)
SCS GROUP HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 28 FEBRUARY 2024
28 February 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
14
8,175,951
8,175,951
Current assets
Cash at bank and in hand
4,233
4,321
Creditors: amounts falling due within one year
16
(4,773,613)
(3,518,507)
Net current liabilities
(4,769,380)
(3,514,186)
Total assets less current liabilities
3,406,571
4,661,765
Creditors: amounts falling due after more than one year
17
(878,206)
(1,995,055)
Net assets
2,528,365
2,666,710
Capital and reserves
Called up share capital
21
276,923
336,923
Share premium account
398,077
428,077
Capital redemption reserve
60,000
60,000
Profit and loss reserves
1,793,365
1,841,710
Total equity
2,528,365
2,666,710

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 £284,971 (2023 - £278,757 profit).

The financial statements were approved by the board of directors and authorised for issue on 12 August 2024 and are signed on its behalf by:
12 August 2024
Mr P  Flynn
Mr C I Scott
Director
Director
Mr D L Friend
Mr P Baker
Director
Director
Company Registration No. 11552376
SCS GROUP HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 13 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 March 2022
336,923
428,077
60,000
(550,959)
274,041
Year ended 28 February 2023:
Profit and total comprehensive income
-
-
-
1,773,128
1,773,128
Dividends
11
-
-
-
(361,260)
(361,260)
Balance at 28 February 2023
336,923
428,077
60,000
860,909
1,685,909
Year ended 28 February 2024:
Profit and total comprehensive income
-
-
-
882,640
882,640
Dividends
11
-
-
-
(333,316)
(333,316)
Reduction of shares
21
(60,000)
(30,000)
-
-
(90,000)
Balance at 28 February 2024
276,923
398,077
60,000
1,410,233
2,145,233
SCS GROUP HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 14 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 March 2022
336,923
428,077
60,000
1,924,213
2,749,213
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
-
-
278,757
278,757
Dividends
11
-
-
-
(361,260)
(361,260)
Balance at 28 February 2023
336,923
428,077
60,000
1,841,710
2,666,710
Year ended 28 February 2024:
Profit and total comprehensive income
-
-
-
284,971
284,971
Dividends
11
-
-
-
(333,316)
(333,316)
Reduction of shares
21
(60,000)
(30,000)
-
-
(90,000)
Balance at 28 February 2024
276,923
398,077
60,000
1,793,365
2,528,365
SCS GROUP HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
27
(698,412)
3,521,415
Interest paid
(19,706)
(120,624)
Income taxes (paid)/refunded
(472,810)
70,518
Net cash (outflow)/inflow from operating activities
(1,190,928)
3,471,309
Investing activities
Purchase of tangible fixed assets
(21,380)
(8,101)
Proceeds from disposal of tangible fixed assets
19
-
Repayment of loans
6,391
-
Interest received
-
0
40
Net cash used in investing activities
(14,970)
(8,061)
Financing activities
Redemption of shares
(90,000)
-
0
Repayment of borrowings
(125,273)
(102,727)
Repayment of bank loans
57,384
(1,039,821)
Dividends paid to equity shareholders
(333,316)
(361,260)
Net cash used in financing activities
(491,205)
(1,503,808)
Net (decrease)/increase in cash and cash equivalents
(1,697,103)
1,959,440
Cash and cash equivalents at beginning of year
1,777,424
(182,016)
Cash and cash equivalents at end of year
80,321
1,777,424
SCS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 16 -
1
Accounting policies
Company information

SCS Group Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Newmarket House, Aberford Road, Stanley, Wakefield, WF3 4AL.

 

The group consists of SCS Group 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 company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

 

The company has applied section 33.1A of FRS 102 permitting it to not disclose related party transactions with wholly owned group companies.

1.2
Basis of consolidation

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

 

All financial statements are made up to 28 February 2024. 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.

SCS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -
1.3
Going concern

The challenges created as a result of the increase in costs of both materials and labour post COVID have been addressed by engaging with parties in various supply chains. Measures such as material price increase caps and early engagement within the labour supply chain have implemented to mitigate these risks.

 

The company has also diversified and strengthened its management team and sought additional funding to provide headroom for business function. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
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, except in respect of long term contracts, where turnover represents the sales value of work done in the year including estimates in respect of amounts not invoiced.

Revenue from contracts for the provision of building 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.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

 

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

1.6
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:

Plant and equipment
25% straight line
Fixtures and fittings
25% straight line
Computers
25% straight line
Motor vehicles
25% straight line

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.

SCS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 18 -
1.7
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 are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

1.8
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.

1.9
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

SCS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 19 -

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.10
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.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

SCS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 20 -
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.

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.12
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.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

SCS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 21 -
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.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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

1.14
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.

1.15
Retirement benefits

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

1.16
Leases

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.

1.17
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.

SCS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 22 -
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.

Long term contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Construction contracts
14,505,398
22,455,928
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
14,505,398
22,455,928
2024
2023
£
£
Other revenue
Interest income
-
40
Grants received
31,086
12,660
SCS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 23 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(31,086)
(12,660)
Depreciation of owned tangible fixed assets
18,217
22,642
Amortisation of intangible assets
293,119
293,119
Operating lease charges
103,782
306,637
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production
37
26
-
-
Administration
12
13
-
-
Directors
8
5
4
5
Total
57
44
4
5

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,849,806
1,863,288
-
0
-
0
Social security costs
167,658
177,218
-
-
Pension costs
148,849
196,470
-
0
-
0
2,166,313
2,236,976
-
0
-
0
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
70,035
125,752
Company pension contributions to defined contribution schemes
39,533
78,226
109,568
203,978
SCS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 24 -
7
Auditor's remuneration
2024
2023
Fees payable to the company's auditor:
£
£
For audit services
Audit of the financial statements of the group and company
950
875
Audit of the financial statements of the company's subsidiaries
18,230
16,875
19,180
17,750
For other services
Taxation compliance services
4,250
2,850
All other non-audit services
8,300
7,750
12,550
10,600
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
-
40
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
-
46,200
Interest on invoice finance arrangements
-
0
5,222
Unwinding of discount on provisions
48,057
35,751
Other interest
19,706
33,451
Total finance costs
67,763
120,624
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
353,402
472,000
Deferred tax
Origination and reversal of timing differences
(836)
20,000
Total tax charge
352,566
492,000
SCS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
10
Taxation
(Continued)
- 25 -

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:

2024
2023
£
£
Profit before taxation
1,235,206
2,265,128
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
308,802
430,374
Tax effect of expenses that are not deductible in determining taxable profit
6,703
804
Other non-reversing timing differences
37,061
55,324
Other
-
0
5,498
Taxation charge
352,566
492,000
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
333,316
361,260
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 March 2023 and 28 February 2024
5,862,383
Amortisation and impairment
At 1 March 2023
1,465,595
Amortisation charged for the year
293,119
At 28 February 2024
1,758,714
Carrying amount
At 28 February 2024
4,103,669
At 28 February 2023
4,396,788
The company had no intangible fixed assets at 28 February 2024 or 28 February 2023.
SCS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 26 -
13
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 March 2023
213,057
7,571
99,571
37,462
357,661
Additions
-
0
18,672
2,708
-
0
21,380
Disposals
(187,812)
-
0
(70,897)
-
0
(258,709)
At 28 February 2024
25,245
26,243
31,382
37,462
120,332
Depreciation and impairment
At 1 March 2023
212,946
5,783
85,445
22,633
326,807
Depreciation charged in the year
-
0
1,958
6,894
9,365
18,217
Eliminated in respect of disposals
(187,701)
-
0
(70,989)
-
0
(258,690)
At 28 February 2024
25,245
7,741
21,350
31,998
86,334
Carrying amount
At 28 February 2024
-
0
18,502
10,032
5,464
33,998
At 28 February 2023
111
1,788
14,126
14,829
30,854
The company had no tangible fixed assets at 28 February 2024 or 28 February 2023.
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
25
-
0
-
0
8,175,951
8,175,951
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 March 2023 and 28 February 2024
8,175,951
Carrying amount
At 28 February 2024
8,175,951
At 28 February 2023
8,175,951
SCS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 27 -
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,715,029
2,357,094
-
0
-
0
Other debtors
83,780
73,237
-
0
-
0
Prepayments and accrued income
150,906
111,101
-
0
-
0
2,949,715
2,541,432
-
-
Amounts falling due after more than one year:
Trade debtors
421,942
720,749
-
0
-
0
Total debtors
3,371,657
3,262,181
-
-
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
18
138,635
38,725
-
0
-
0
Other borrowings
18
-
0
95,473
-
0
-
0
Trade creditors
2,427,346
2,682,415
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
3,727,023
2,466,821
Corporation tax payable
380,247
499,655
-
0
-
0
Other taxation and social security
82,116
80,290
-
-
Other creditors
985,739
1,157,375
1,046,590
1,051,686
Accruals and deferred income
410,015
1,017,080
-
0
-
0
4,424,098
5,571,013
4,773,613
3,518,507
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
134,944
177,470
-
0
-
0
Other borrowings
18
-
0
29,800
-
0
-
0
Other creditors
878,206
1,995,055
878,206
1,995,055
1,013,150
2,202,325
878,206
1,995,055
SCS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 28 -
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
273,579
216,195
-
0
-
0
Other loans
-
0
125,273
-
0
-
0
273,579
341,468
-
-
Payable within one year
138,635
134,198
-
0
-
0
Payable after one year
134,944
207,270
-
0
-
0

Bank loans are for a term of five years and are repayable in 72 monthly instalments. The loans incurs interest at 9.40% per annum,

 

Other loans are repayable in 5 annual instalments and incur interest at 4% per annum.

19
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
7,164
8,000
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 March 2023
8,000
-
Credit to profit or loss
(836)
-
Liability at 28 February 2024
7,164
-

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

SCS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 29 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
148,849
196,470

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.

21
Share capital
Group and company
2024
2023
Ordinary share capital
£
£
Issued and fully paid
0 Ordinary of £1 each
-
60,000
60,000 A Ordinary of £1 each
60,000
60,000
60,000 B Ordinary of £1 each
60,000
60,000
60,000 C Ordinary of £1 each
60,000
60,000
H Ordinary of £1 each
60,000
60,000
I Ordinary of £1 each
36,923
36,923
276,923
336,923

Each share is entitled to one vote in any circumstances.

 

Each share is entitled pari passu to dividend payments or any other distribution including on a winding up of the Company.

 

A share buy-back and subsequent cancellation of 60,000 ordinary shares took place in April 2024.

 

 

22
Related party transactions
Newmarket Pension Scheme

During the year, the company paid rent amounting to £61,700 (2023 - £65,000) to the pension scheme, in which Mr D L Friend, Mrs M Chappell Dixon (resigned as director from the company on 14th April 2023), Mr P Flynn & Mr C I Scott, directors of the company, are trustees and members.

The company has received a loan from the pension scheme in 2023 which has an amount oustanding at the year end of £nil (2023 - £125,273). It is repayable over 5 year and interest is charge at a rate of 4% per annum. During the year the total amount of interest charged was £nil (2023 - £8,488 £nil).
SCS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 30 -
23
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
2024
2023
2024
2023
£
£
£
£
Within one year
268,247
269,773
-
-
Between two and five years
208,007
376,409
-
-
476,254
646,182
-
-
24
Controlling party

The directors are of the opinion that there is no individual ultimate controlling party.

25
Subsidiaries

Details of the company's subsidiaries at 28 February 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Specialist Ceiling Services Holdings Limited
England
Holding company
Ordinary
100.00
-
SCS Building Solutions Limited
England
Suspended ceiling and dry lining installation
Ordinary
0
100.00
SCS Special Projects Limited
England
Provision of training services
Ordinary
0
100.00

The registered office address for each of the subsidiaries is the same as the parent company.

SCS Group Holdings Limited has, in accordance with s479C of the Companies Act 2006, provided a guarantee over the liabilities of its subsidiary SCS Special Projects Limited (company registration number 04212507; registered in England & Wales) which permits the subsidiary to not obtain an audit of its individual financial statements for the year ended 28 February 2024, in accordance with the exemptions conferred by s479A Companies Act 2006. The registered office of the subsidiary is Newmarket House, Aberford Road, Stanley, Wakefield, WF3 4AL.

SCS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 31 -
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 D L Friend -
-
1,662
87,906
(89,773)
(205)
Ms M  Chappell Dixon -
-
3,900
3
(3,906)
(3)
Mr P  Flynn -
-
(100)
138,385
(138,385)
(100)
Mr C I Scott -
-
824
83,910
(84,476)
258
Mr P Baker -
-
-
132,519
(132,604)
(85)
6,286
442,723
(449,144)
(135)
27
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit for the year after tax
882,640
1,773,128
Adjustments for:
Taxation charged
352,566
492,000
Finance costs
67,763
120,624
Investment income
-
0
(40)
Amortisation and impairment of intangible assets
293,119
293,119
Depreciation and impairment of tangible fixed assets
18,217
22,642
Decrease in provisions
(48,056)
-
Movements in working capital:
(Increase)/decrease in debtors
(115,867)
1,712,386
Decrease in creditors
(2,148,793)
(892,444)
Cash (absorbed by)/generated from operations
(698,411)
3,521,415
28
Analysis of changes in net funds/(debt) - group
1 March 2023
Cash flows
28 February 2024
£
£
£
Cash at bank and in hand
1,777,424
(1,697,103)
80,321
Borrowings excluding overdrafts
(341,468)
67,889
(273,579)
1,435,956
(1,629,214)
(193,258)
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