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REGISTERED NUMBER: 04521341 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

FSG PROPERTY SERVICES LIMITED

FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 16


FSG PROPERTY SERVICES LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: Mr J D Lennox
Mr A Huckle
Mr G J Young





REGISTERED OFFICE: C/O React Business Services
City Pavillion, Cannon Green
27 Bush Lane
London
EC4R 0AA





REGISTERED NUMBER: 04521341 (England and Wales)





AUDITORS: Raffingers LLP, Statutory Auditor
19-20 Bourne Court
Southend Road
Woodford Green
Essex
IG8 8HD

FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

REVIEW OF BUSINESS
The year under review showed a decrease in turnover by 17.34%. The main contributing factor for the decrease was the continuing slow productivity of clients following the pandemic. The impact of the cap on social housing rent forced our clients to review the volume and value of work released to us during 2023. We have experienced in early 2024 an upturn in the work being released to us by our clients including signing extended long term contracts which were previously expected to be signed and started during 2023. In 2023, we maintained a full compliment of operating staff in preparation of the new contracts commencing.

Despite the decrease in turnover in 2023, our gross margin has increased slightly (+2.1%). We have managed to secure uplift agreements with most of our clients during the latter part of 2023 and the beginning of 2024 which will have a major impact on the company's future financial performance. Overheads remained constant throughout the year and are continually being monitored by the board.

A decision was by made by the board in November 2023 to consolidate the interests of associated companies by forming a new holding company, FSG Services Group Limited. Following approval from HMRC, the holding company acquired 100% of the shareholding of FSG Property Services Limited on 8th January 2024.

The benefits of combining the interests of the associated companies are to give FSG Property Services Limited greater purchasing power of materials and services, centralization of accounting processes and control, combined banking and finance arrangements, flexibility of operating and administrative staff, reduction in overheads such as insurance, communications, and marketing

PRINCIPAL RISKS AND UNCERTAINTIES
Managing the business is subject to a number of risks. Below the directors have identified the principal risks associated with the business. The directors monitor constantly the risks and uncertainties facing the company with particular to the exposure on liquidity, interest rates and credit risks. With suitable policies in place, all material risks and uncertainties have been identified and are constantly being monitored by the board.The company uses various financial instruments which include cash and items such as trade debtors and creditors which arise directly from operations. The financial instruments allow the company to raise the appropriate finance to support the company's operations. However, the existence of these financial instruments could expose the company to a number of financial risks which are set out below.

LIQUIDITY RISK

The company manages financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and securely. The board consider the monitoring and control of cash as crucial, taking advantage of the use of the invoice financing facility when appropriate.

INTEREST RATE RISK

The company finances its operations through a mixture of retained profits, bank loans and invoice financing. The company's exposure to interest rate fluctuation on its borrowings is managed by the use of both fixed and floating facilities and actively managing its working capital requirements.

CREDIT RISK

Potential customers are credit checked before entering into a business arrangement with the company and are continually monitored.


FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

KEY PERFORMANCE INDICATORS
The company uses a number of key performance indicators to measure and monitor the company's on-going performance. The board consider the gross margin monitoring on all contracts being the most significant.

Gross margin is the difference between the sales value of projects and the direct costs incurred in delivering the projects. The gross margin for the company has been consistent in recent years. Projects are monitored closely to ensure efficiency and quality is achieved and maintained.The overall gross profit margin for the year under review is 18.17% (2021: 16.07%).

EMPLOYEES
Staffing levels have increased in line with workload stabilising following the slightly reduced numbers due to Covid-19 in the past. This may continue in the near future due to further new projects in the pipeline.The policy of the company is to employ the most suitably qualified persons regardless of age, religion, gender, sexual orientation or ethnic origin or any other grounds not related to a person's ability to work safely and effectively for the business. FSG Property Services Limited recognises the importance of ensuring that relevant business information is provided to the employees prior to the employee's commencement date. This is achieved through initial induction (Health Questionnaire, Health & Safety, Anti-Bribery Policy, Skills and Qualifications Assessment) and regular training as required per the Construction Industry Standards.

FUTURE CONTRACTS / ORDER BOOK
The company has maintained a good level of activity and currently has a good order book, with secured packages in excess of £25m and tender bids near £5m for potential projects starting in the 4th quarter (Oct- Dec 2024).

ON BEHALF OF THE BOARD:





Mr J D Lennox - Director


14 August 2024

FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of property maintenance.

DIVIDENDS
An interim dividend of £225,000 per share on the Ordinary £1 shares was paid on 31 December 2023. The directors recommend that no final dividend be paid on these shares.

No interim dividend was paid on the Ordinary B £1 shares. The directors recommend that no final dividend be paid on these shares.

No interim dividend was paid on the Preference shares £0.01 shares. The directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 31 December 2023 will be £ 225,000 .

DIRECTORS
Mr J D Lennox has held office during the whole of the period from 1 January 2023 to the date of this report.

Other changes in directors holding office are as follows:

A Huckle was appointed a director of the company on 9 January 2024.

G Young was appointed a director of the company on 9 January 2024

Mr J M Morgan ceased to be a director after 31 December 2023 but prior to the date of this report.

POLITICAL DONATIONS AND EXPENDITURE
The company made charitable donations of £828 (2022: £600), during the year under review.

GOING CONCERN
The fact that there is a substantial balance outstanding from an associate, FSG Build Limited, which has material negative reserve indicates the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern. However, the company has reported an operating profit for the year. Furthermore, the current trading and cash flow forecast indicates that the company will continue to report operating profit in the current and future years. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





Mr J D Lennox - Director


14 August 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FSG PROPERTY SERVICES LIMITED

Opinion
We have audited the financial statements of FSG Property Services Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FSG PROPERTY SERVICES LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FSG PROPERTY SERVICES LIMITED


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

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company sector;

We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, employment including IR35 rules, legislations applicable to building trade, and health and safety legislation;

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where necessary.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
-performed analytical procedures to identify any unusual or unexpected transactions;
-tested the appropriateness of journal entries;
-assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and investigated the rationale behind significant or unusual transactions.

To address the risk that revenue could be misstated due to fraud, we:
-we obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard;
-performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions;
-tested a sample of revenue transactions to supporting evidence; and tested, on a sample basis, revenue related balances in the balance sheet.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-agreeing financial statement disclosures to underlying supporting documentation;
-enquiring of management as to actual and potential litigation and claims; and
-reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FSG PROPERTY SERVICES LIMITED

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.




Suda Ratnam (Senior Statutory Auditor)
for and on behalf of Raffingers LLP, Statutory Auditor
19-20 Bourne Court
Southend Road
Woodford Green
Essex
IG8 8HD

16 August 2024

FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £   

TURNOVER 12,034,316 14,559,851

Cost of sales 9,847,176 12,218,746
GROSS PROFIT 2,187,140 2,341,105

Administrative expenses 2,455,873 2,320,252
(268,733 ) 20,853

Other operating income 436,201 -
OPERATING PROFIT 5 167,468 20,853

Interest receivable and similar income 3,058 4,983
170,526 25,836

Interest payable and similar expenses 6 100,389 19,330
PROFIT BEFORE TAXATION 70,137 6,506

Tax on profit 7 167,699 18,534
LOSS FOR THE FINANCIAL YEAR (97,562 ) (12,028 )

FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £   

LOSS FOR THE YEAR (97,562 ) (12,028 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(97,562

)

(12,028

)

FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

BALANCE SHEET
31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 518,430 533,343

CURRENT ASSETS
Stocks 11 390,542 500,011
Debtors 12 6,264,415 5,777,745
Cash at bank and in hand 112,826 271,743
6,767,783 6,549,499
CREDITORS
Amounts falling due within one year 13 3,158,876 2,617,576
NET CURRENT ASSETS 3,608,907 3,931,923
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,127,337

4,465,266

CREDITORS
Amounts falling due after more than one
year

14

(771,294

)

(916,269

)

PROVISIONS FOR LIABILITIES 18 (129,608 ) -
NET ASSETS 3,226,435 3,548,997

CAPITAL AND RESERVES
Called up share capital 19 11 11
Retained earnings 3,226,424 3,548,986
SHAREHOLDERS' FUNDS 3,226,435 3,548,997

The financial statements were approved by the Board of Directors and authorised for issue on 14 August 2024 and were signed on its behalf by:





Mr J D Lennox - Director


FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

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

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 11 3,561,014 3,561,025

Changes in equity
Total comprehensive income - (12,028 ) (12,028 )
Balance at 31 December 2022 11 3,548,986 3,548,997

Changes in equity
Dividends - (225,000 ) (225,000 )
Total comprehensive income - (97,562 ) (97,562 )
Balance at 31 December 2023 11 3,226,424 3,226,435

FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 434,861 161,705
Interest paid (77,234 ) 4,199
Interest element of hire purchase payments
paid

(23,155

)

(23,529

)
Tax paid (20,420 ) 76,906
Net cash from operating activities 314,052 219,281

Cash flows from investing activities
Purchase of tangible fixed assets (89,341 ) (65,533 )
Sale of tangible fixed assets 20,599 29,370
Interest received 3,058 4,983
Net cash from investing activities (65,684 ) (31,180 )

Cash flows from financing activities
New loans in year 263,650 -
Loan repayments in year (210,211 ) (232,160 )
Intercompany loans (254,500 ) 36,362
Capital repayments in year (HP) (184,524 ) (177,056 )
Amount introduced by directors 203,300 137,984
Amount withdrawn by directors - (143,571 )
Equity dividends paid (225,000 ) -
Net cash from financing activities (407,285 ) (378,441 )

Decrease in cash and cash equivalents (158,917 ) (190,340 )
Cash and cash equivalents at beginning of
year

2

271,743

462,083

Cash and cash equivalents at end of year 2 112,826 271,743

FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.12.23 31.12.22
£    £   
Profit before taxation 70,137 6,506
Depreciation charges 194,400 167,612
Profit on disposal of fixed assets (5,645 ) (869 )
Finance costs 100,389 19,330
Finance income (3,058 ) (4,983 )
356,223 187,596
Decrease in stocks 109,469 211,505
(Increase)/decrease in trade and other debtors (390,512 ) 103,826
Increase/(decrease) in trade and other creditors 359,681 (341,222 )
Cash generated from operations 434,861 161,705

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 112,826 271,743
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 271,743 462,083


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 271,743 (158,917 ) 112,826
271,743 (158,917 ) 112,826
Debt
Finance leases (473,856 ) 48,423 (425,433 )
Debts falling due within 1 year (144,532 ) (114,826 ) (259,358 )
Debts falling due after 1 year (358,489 ) 61,387 (297,102 )
(976,877 ) (5,016 ) (981,893 )
Total (705,134 ) (163,933 ) (869,067 )

FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

FSG Property Services Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies.

The items in the accounts where these judgements and estimates have been made, include:

- estimating the useful economic life of tangible fixed assets for the purpose of calculating the depreciation charge.

- assessing the recoverability of outstanding debtors; and

- estimating future income and expenditure flows for the purpose of assessing the group’s going concern.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 20% on cost
Office equipment - 25% on cost
Motor vehicles - 25% on cost
Fixtures & fittings - 25% on cost

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments
Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. Basic financial liabilities, including trade and other payables, bank loans, 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 receipts discounted at a market rate of interest.


FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors and creditors
Short term debtors are measured at transaction price, less any impairment.

Going concern
The fact that there is a substantial balance outstanding form an associate, FSG Build Limited, which has material negative reserve indicates the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern. However, the company has reported an operating profit for the year. Furthermore, the current trading and cash flow forecast indicates that the company will continue to report operating profit in the current and future years. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Rounding
All financial figures have been rounded off to the nearest pound.

FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 2,942,678 2,072,838
Other pension costs 45,511 23,350
2,988,189 2,096,188

The average number of employees during the year was as follows:
31.12.23 31.12.22

Administration and management 24 24

The number of employees earning more than £60,000 was 3 (2022: 3).

4. DIRECTORS' EMOLUMENTS

The directors’ emoluments were as follows

Salaries : £106,667 (2022: £264,940)
Pensions: £0.00 (2022: £0.00)
Benefits in Kind : £0.00 (2022: £0.00)

Highest Paid Director

The highest paid directors emoluments were as follows:

Salaries : £26,667 (2022 :£149,019)
Pensions £0.00 (2022: £0.00)
Benefits in Kind : £0.00 (2022: £0.00)

5. OPERATING PROFIT

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

31.12.23 31.12.22
£    £   
Hire of plant and machinery 123,685 91,261
Depreciation - owned assets 12,536 8,647
Depreciation - assets on hire purchase contracts 181,864 158,965
Profit on disposal of fixed assets (5,645 ) (869 )
Auditors' remuneration 11,000 8,250

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
£    £   
Bank loan interest 67,782 (4,199 )
Other interest 4,630 -
HMRC interest 4,822 -
Hire purchase 23,155 23,529
100,389 19,330

FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.23 31.12.22
£    £   
Current tax:
UK corporation tax 38,091 18,534

Deferred tax 129,608 -
Tax on profit 167,699 18,534

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.23 31.12.22
£    £   
Profit before tax 70,137 6,506
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

17,534

1,236

Effects of:
Expenses not deductible for tax purposes 23,964 20,375
Capital allowances in excess of depreciation (10 ) (3,077 )
Marginal relief (942 ) -
Excess profits taxed at 25% (2,455 ) -
Deferred tax 129,608 -
Total tax charge 167,699 18,534

From 1 April 2023, the corporation tax main rate for non-ring fenced profits has been increased to 25% applying to profits over £250,000. A small profits rate (SPR) has also been introduced for companies with profits of £50,000 or less so that they continue to pay corporation tax at 19%. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective corporation tax rate.

8. DIVIDENDS
31.12.23 31.12.22
£    £   
Ordinary shares of £1 each
Interim 225,000 -

9. PENSION COMMITMENTS

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £45,511 (2022: £23,350). No contributions were payable to the fund at balance sheet date at either the current or previous year.

FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

10. TANGIBLE FIXED ASSETS
Short Plant and Office
leasehold machinery equipment
£    £    £   
COST
At 1 January 2023 47,603 56,492 64,162
Additions - 2,251 17,190
Disposals - (5,730 ) (2,267 )
At 31 December 2023 47,603 53,013 79,085
DEPRECIATION
At 1 January 2023 47,603 50,507 34,967
Charge for year - 1,184 11,352
Eliminated on disposal - (2,005 ) (1,921 )
At 31 December 2023 47,603 49,686 44,398
NET BOOK VALUE
At 31 December 2023 - 3,327 34,687
At 31 December 2022 - 5,985 29,195

Motor Fixtures
vehicles & fittings Totals
£    £    £   
COST
At 1 January 2023 692,880 2,885 864,022
Additions 175,000 - 194,441
Disposals (16,875 ) - (24,872 )
At 31 December 2023 851,005 2,885 1,033,591
DEPRECIATION
At 1 January 2023 194,717 2,885 330,679
Charge for year 181,864 - 194,400
Eliminated on disposal (5,992 ) - (9,918 )
At 31 December 2023 370,589 2,885 515,161
NET BOOK VALUE
At 31 December 2023 480,416 - 518,430
At 31 December 2022 498,163 - 533,343

FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

10. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 January 2023 692,880
Additions 169,400
Disposals (16,875 )
At 31 December 2023 845,405
DEPRECIATION
At 1 January 2023 194,717
Charge for year 181,864
Eliminated on disposal (5,992 )
At 31 December 2023 370,589
NET BOOK VALUE
At 31 December 2023 474,816
At 31 December 2022 498,163

11. STOCKS
31.12.23 31.12.22
£    £   
Raw materials 12,029 8,422
Work-in-progress 378,513 491,589
390,542 500,011

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 1,985,749 1,349,883
Amounts owed by participating interests 3,679,065 3,441,222
Other debtors 321,898 347,006
Directors' current accounts - 143,571
Tax receivable 41,435 39,549
Prepayments 236,268 456,514
6,264,415 5,777,745

FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans and overdrafts (see note 15) 76,686 100,000
Other loans (see note 15) 182,672 44,532
Hire purchase contracts (see note 16) 201,239 166,074
Trade creditors 1,234,704 1,176,533
Amounts owed to participating interests 6,311 -
Tax 38,091 18,534
Social security and other taxes 119,318 87,559
VAT 465,074 342,441
Other creditors 314,878 372,320
Directors' current accounts 59,729 -
Deferred income 78,091 35,955
Accrued expenses 382,083 273,628
3,158,876 2,617,576

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.23 31.12.22
£    £   
Bank loans (see note 15) 173,314 250,000
Other loans (see note 15) 123,788 108,489
Hire purchase contracts (see note 16) 224,194 307,782
Preference shares 249,998 249,998
771,294 916,269

15. LOANS

An analysis of the maturity of loans is given below:

31.12.23 31.12.22
£    £   
Amounts falling due within one year or on demand:
Bank loans 76,686 100,000
Other loans 182,672 44,532
259,358 144,532

Amounts falling due between one and two years:
Bank loans 1-2 years 76,686 -
Other loans 1-2 years 118,998 49,244
195,684 49,244

Amounts falling due between two and five years:
Bank loans 2-5 years 96,628 250,000
Other loans 2-5 years 4,790 59,245
101,418 309,245

FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31.12.23 31.12.22
£    £   
Net obligations repayable:
Within one year 201,239 166,074
Between one and five years 224,194 307,782
425,433 473,856

Non-cancellable operating leases
31.12.23 31.12.22
£    £   
Within one year 39,590 98,358
Between one and five years 70,000 24,590
109,590 122,948

17. SECURED DEBTS

The following secured debts are included within creditors:

31.12.23 31.12.22
£    £   
Bank loans 250,000 350,000
Hire purchase contracts 425,433 473,856
Invoice discounting facility (120,688 ) (9,989 )
554,745 813,867

The invoice discounting facility is secured by way of fixed and floating charge on the company's assets.

Other loans are secured by way of personal guarantees provided by one of the director.

Hire purchase liability is secured by the underlying assets.

18. PROVISIONS FOR LIABILITIES
31.12.23 31.12.22
£    £   
Deferred tax 129,608 -

Deferred
tax
£   
Provided during year 129,608
Balance at 31 December 2023 129,608

FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number

Class
Nominal
Value

31.12.20

31.12.19

478 Ordinary Shares £0.01 4.78 4.78
300 Ordinary B Shares £0.01 3.00 3.00
250 Preference Shares £0.01 2.50 2.50
10.28 10.28


The Preference Shares are classified as liabilities on the balance sheet.

20. CONTINGENT LIABILITIES

There were no contigent liabilities at either the beginning or end of the financial year.

21. CAPITAL COMMITMENTS

As at 31 December 2023, the company had no capital commitments which had been contracted for but not provided in the financial statements.

22. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

At the balance sheet date, the company owed the directors £59,729 (2022 : £143,571 owed by the directors). Included in this amount are interest of £3,058 (2022:£2,788) charged at HMRC official rate of interest. The loan is unsecured and repayable on demand.

Other loans are secured by way of personal guarantees provided by the director.

FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

23. RELATED PARTY DISCLOSURES

For the purposes of these financial statements, a party is considered to be related to the company if:

(i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company;

(ii) the company and the party are subject to common control;

(iii) the party is an associate of the company or a joint venture in which the company is a venturer;

(iv) the party is a member of key management personnel of the company or the company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals;

(v) the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals;

(vi) the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company; or

(vii) the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent.

Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity.

Included in debtors falling due within one year is a balance of £3,611,722 (2022:£3,433,187) owed by FSG Build Ltd, a company with common director.

Included in debtors falling due within one year is a balance of £0.00 (2022:£7,535) owed by FSG Estates Ltd, a company with common director.

The loans are unsecured, interest free and repayable on demand.

24. ULTIMATE CONTROLLING PARTY

At the balance sheet date, the company was under the control of Mr and Mrs Lennox by virtue of their combined shareholdings (76.6%) throughout the year under review.

On 9th January 2024, 100% of the shareholding of FSG Property Services Limited was acquired by FSG Services Group Limited. At the signing date FSG Group Services is the immediate and ultimate parent company of FSG Property Services Limited.

25. AUDITOR LIABILITY LIMITATION AGREEMENT

The company has entered into a liability limitation agreement with Raffingers LLP, the statutory auditor, in respect of the statutory audit for the period ended 31 December 2023. The proportionate liability agreement follows the standard terms in Appendix B to the Financial Reporting Council's June 2008 Guidance on Auditor Liability Agreements and was approved by the directors on 12 June 2024.