Company registration number 14106152 (England and Wales)
SYSTEM ENGINEERING GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
SYSTEM ENGINEERING GROUP LIMITED
CONTENTS
Page
Directors' report
1 - 2
Group balance sheet
3
Company balance sheet
4
Group statement of changes in equity
5
Company statement of changes in equity
6
Notes to the financial statements
7 - 17
SYSTEM ENGINEERING GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the group is engineering services. The company provides management and strategic services to the wider group.
Review of the business
The purpose of the System Engineering Group of companies is to encourage people to join us in the technical engineering services industry, and benefit from the broad array of opportunities it creates for personal development, enjoyment and fulfilment.
We believe that our customers do their best work when the system just flows, so we focus on ensuring that even the most complex systems we create, simply do what our customers need them to.
Our customers face tremendous competitive pressure across their industrial and commercial sectors, so they must harness the benefits from the fast-paced developments in technology to secure their future success. With exponential growth in the technology options, it can be overwhelming when they search for improvements to their key operational systems, so we figure it out, and keep it simple for them.
The first acquisition of the System Engineering group has now been established as Hardtech HV (High Voltage), an Independent Connection Provider. Through their efforts we are able to support our core industrial and commercial sectors with the technical projects and service levels they demand. Hardtech HV's customer portfolio in these core sectors is increasingly focussed on energy transition related opportunities as the energy transition businesses form a new, growing, direct customer sector.
The systems engineering approach lies at the core of our entire group's operations, as delivering complex projects and services using the approach; increases efficiency and reliability, strengthens risk management, raises quality assurance and optimises effective communication, all whilst taking a lifecycle perspective to the work we do.
It's that lifecycle perspective that forces us to focus on the Environmental, Social and Governance impact of the project and service work we carry out across our entire group, as we position our businesses to ensure sustainability for our Planet, People and Profit. The triple bottom line, from which we align our company values to that of social equity, equal justice and leveraging our economic success to help benefit society and protect our environment.
For our Planet and the Environment, we focus on extending our influence on reducing carbon emissions beyond our own Scope 1 or 2 impact and create new opportunities for our customers to reduce their carbon emissions on a much more significant scale. Through the roll out of our proprietary SEEED Scoring process (System Engineering Energy Efficient Design Score) in our offers, we are able to give customers a solid basis to make their procurement decisions on ALL of the relevant factors, beyond just price and quality.
For our People and Society, we invest heavily in training and development from the get-go, building their personal technical capabilities, whilst we benefit in the market from each company's enhanced capability. Our group's strong process orientation creates the framework that allows a great degree of autonomy for our staff and front-line teams, which is key to create the space to deploy those enhanced skills.
For our Profit and Governance, we underpin the Group's operating businesses with our fulcrum.os (operating system) to enhance their stability in growth and their long-term competitiveness, through reducing or eliminating non value added administration work. To make clear our long term, prudent approach, we conduct full audits of our financial processes and accounts for all group companies, despite not being statutorily obliged to do so.
Ultimately the System Engineering Group is oriented to build the trust of our customers, as our entire Group acts in line with our values of COMPETENCE, RELIABILITY, OPENNESS and HUMILITY, the pillars upon which trust is built in all interactions.
SYSTEM ENGINEERING GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P McClennon
Mr H Burkitt
(Appointed 30 November 2023)
Auditor
JS. Audit Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
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.
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.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr H Burkitt
Director
26 July 2024
SYSTEM ENGINEERING GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 3 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
3
3,565,559
-
Tangible assets
4
328,803
3,894,362
-
Current assets
Debtors
7
2,766,125
1
Cash at bank and in hand
875,909
-
3,642,034
1
Creditors: amounts falling due within one year
8
(1,873,762)
-
Net current assets
1,768,272
1
Total assets less current liabilities
5,662,634
1
Creditors: amounts falling due after more than one year
9
(2,487,466)
-
Net assets
3,175,168
1
Capital and reserves
Called up share capital
11
900
1
Share premium account
1,157,171
Other reserves
1,556,422
Profit and loss reserves
17,431
-
Equity attributable to owners of the parent company
2,731,924
1
Non-controlling interests
443,244
-
3,175,168
1
The directors of the group have elected not to include a copy of the profit and loss account within the financial statements.
These financial statements have been prepared in accordance with the provisions applicable to groups and companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 26 July 2024 and are signed on its behalf by:
26 July 2024
Mr H Burkitt
Director
Company registration number 14106152 (England and Wales)
SYSTEM ENGINEERING GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 4 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
5
1
Current assets
Debtors
7
813,104
1
Cash at bank and in hand
727,416
1,540,520
1
Creditors: amounts falling due within one year
8
(91,603)
-
Net current assets
1,448,917
1
Net assets
1,448,918
1
Capital and reserves
Called up share capital
11
900
1
Share premium account
1,624,100
Profit and loss reserves
(176,082)
-
Total equity
1,448,918
1
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £176,082 (2023 - £0 profit).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 26 July 2024 and are signed on its behalf by:
26 July 2024
Mr H Burkitt
Director
Company registration number 14106152 (England and Wales)
SYSTEM ENGINEERING GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
Share capital
Share premium account
Other reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
Balance at 13 May 2022
-
-
-
-
Period ended 31 March 2023:
Profit and total comprehensive income
-
-
-
-
-
-
-
Issue of share capital
11
1
-
-
1
-
1
Balance at 31 March 2023
1
-
1
1
Year ended 31 March 2024:
Loss and total comprehensive income
-
-
-
17,431
17,431
(23,685)
(6,254)
Issue of share capital
11
899
1,157,171
-
-
1,158,070
-
1,158,070
Other movements
-
-
1,556,422
-
1,556,422
466,929
2,023,351
Balance at 31 March 2024
900
1,157,171
1,556,422
17,431
2,731,924
443,244
3,175,168
SYSTEM ENGINEERING GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 13 May 2022
-
Period ended 31 March 2023:
Profit and total comprehensive income for the period
-
-
-
Issue of share capital
11
1
-
1
Balance at 31 March 2023
1
1
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
(176,082)
(176,082)
Issue of share capital
11
899
1,624,100
-
1,624,999
Balance at 31 March 2024
900
1,624,100
(176,082)
1,448,918
SYSTEM ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
1
Accounting policies
Company information
System Engineering Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Mereside, Alderley Park Congleton Road, Macclesfield, Cheshire, SK10 4TG.
The group consists of System Engineering Group 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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company System Engineering Group Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 March 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.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
SYSTEM ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 8 -
1.4
Turnover
Turnover is recognised at the fair value of the consideration receivable for the creation, maintenance and servicing of high voltage distribution networks provided in the normal course of business, and is shown net of VAT and trade discounts.
Where the outcome of a 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.
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 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
20% per annum, straight line
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
10% per annum, straight line basis
Plant and machinery
10% per annum, straight line basis
Computer equipment
10% per annum, straight line basis
Motor vehicles
20% per annum, straight line basis
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.
SYSTEM ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 9 -
1.8
Fixed asset investments
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.9
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.
1.10
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.
SYSTEM ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 10 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
SYSTEM ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -
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.
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
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
SYSTEM ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
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.
2
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
Total
35
-
2
3
Intangible fixed assets
Group
Goodwill
Other
Total
£
£
£
Cost
At 1 April 2023
Additions
3,678,010
10,322
3,688,332
At 31 March 2024
3,678,010
10,322
3,688,332
Amortisation and impairment
At 1 April 2023
Amortisation charged for the year
122,601
172
122,773
At 31 March 2024
122,601
172
122,773
Carrying amount
At 31 March 2024
3,555,409
10,150
3,565,559
At 31 March 2023
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
SYSTEM ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
4
Tangible fixed assets
Group
Plant and machinery etc
£
Cost
At 1 April 2023
Additions
222,912
Disposals
(123,804)
On acquisition
515,702
At 31 March 2024
614,810
Depreciation and impairment
At 1 April 2023
Depreciation charged in the year
95,216
Eliminated in respect of disposals
(66,369)
On acquisition
257,160
At 31 March 2024
286,007
Carrying amount
At 31 March 2024
328,803
At 31 March 2023
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.
5
Fixed asset investments
Group
Company
2024
2023
2024
2023
£
£
£
£
Investments in subsidiaries
-
-
1
-
1
SYSTEM ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Fixed asset investments
(Continued)
- 14 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023
-
Additions
1
At 31 March 2024
1
Carrying amount
At 31 March 2024
1
At 31 March 2023
-
6
Subsidiaries
Details of the company's subsidiaries at 31 March 2024 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Hardtech Engineering Services Limited
1
Ordinary
100.00
-
Hardtech Engineering Bidco 1 Limited
1
Ordinary
-
70.00
Hardtech H.V. Limited
1
Ordinary
-
100.00
Registered office addresses (all UK unless otherwise indicated):
1
Mereside, Alderley Park, Macclesfield, SK10 4TG
7
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,120,926
Amounts owed by group undertakings
-
788,000
Other debtors
1,639,169
1
25,104
1
2,760,095
1
813,104
1
Deferred tax asset
6,030
-
-
-
2,766,125
1
813,104
1
SYSTEM ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
8
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Debenture loans
10
198,341
Net obligations under hire purchase contracts
35,712
Trade creditors
480,299
Amounts owed to group undertakings
77,332
Corporation tax payable
140,794
Other taxation and social security
165,698
-
14,270
-
Other creditors
681,075
1
Accruals and deferred income
171,843
1,873,762
-
91,603
Net obligations under hire purchase contracts of £35,712 are secured against the assets to which they relate.
9
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Debenture loans
10
1,441,445
Other creditors
1,046,021
2,487,466
-
-
-
10
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Debenture loans
1,639,786
Payable within one year
198,341
-
-
-
Payable after one year
1,441,445
The loan is secured by fixed and floating charges over the assets of group entities. Group entities act as guarantors for the loan.
SYSTEM ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
11
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
-
100
-
1
A Ordinary shares of 1p each
50,000
-
500
-
B Ordinary shares of 1p each
40,000
-
400
-
90,000
100
900
1
On 30 November 2023 100 Ordinary shares of 1p each were redesignated as 100 A Ordinary shares of 1p each.
On 30 November 2023 49,900 A Ordinary shares of 1p each were issued at par.
On 30 November 2023 40,000 B Ordinary shares of 1p each were issued at par.
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Christopher Moss BSc F.C.A
Statutory Auditor:
JS. Audit Limited
Date of audit report:
16 August 2024
13
Parent company
The smallest and largest groups for which consolidated financial statements are prepared is headed by MCCX Group Limited. The registered office of MCCX Group Limited is Oakmere House, Mereside Road, Mere, Knutsford, England, WA16 6QF.
SYSTEM ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
14
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
157,522
100,058
-
-
15
Directors' transactions
Included within other creditors are amounts due to the directors of £60,751 (2023: £Nil).
2024-03-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.200No description of principal activityMr P McClennonMr H Burkittfalsefalse14106152bus:Consolidated2023-04-012024-03-31141061522023-04-012024-03-3114106152bus:Director12023-04-012024-03-3114106152bus:Director22023-04-012024-03-31141061522024-03-3114106152bus:Consolidated2024-03-3114106152bus:Consolidated2023-03-3114106152core:OtherPropertyPlantEquipmentbus:Consolidated2024-03-3114106152core:OtherPropertyPlantEquipmentbus:Consolidated2023-03-3114106152core:ShareCapitalbus:Consolidated2024-03-3114106152core:ShareCapitalbus:Consolidated2023-03-3114106152core:SharePremiumbus:Consolidated2024-03-3114106152core:SharePremiumbus:Consolidated2023-03-3114106152core:OtherMiscellaneousReservebus:Consolidated2024-03-3114106152core:OtherMiscellaneousReservebus:Consolidated2023-03-3114106152core:ShareCapital2024-03-3114106152core:ShareCapital2023-03-3114106152core:SharePremium2024-03-3114106152core:SharePremium2023-03-3114106152core:RetainedEarningsAccumulatedLosses2024-03-3114106152core:ShareCapitalbus:Consolidated2022-05-1214106152core:SharePremiumbus:Consolidated2022-05-1214106152core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-05-1214106152core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-03-3114106152core:Non-controllingInterestsbus:Consolidated2023-03-3114106152core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-03-3114106152core:Non-controllingInterestsbus:Consolidated2024-03-3114106152core:ShareCapital2022-05-1214106152core:SharePremium2022-05-1214106152core:RetainedEarningsAccumulatedLosses2022-05-1214106152core:RetainedEarningsAccumulatedLosses2023-03-31141061522023-03-3114106152core:CurrentFinancialInstruments2024-03-3114106152core:CurrentFinancialInstruments2023-03-3114106152core:ShareCapitalbus:Consolidated2022-05-132023-03-3114106152core:SharePremiumbus:Consolidated2022-05-132023-03-3114106152bus:Consolidated2022-05-132023-03-3114106152core:ShareCapitalbus:Consolidated2023-04-012024-03-3114106152core:SharePremiumbus:Consolidated2023-04-012024-03-3114106152core:ShareCapital2022-05-132023-03-3114106152core:SharePremium2022-05-132023-03-31141061522022-05-132023-03-3114106152core:ShareCapital2023-04-012024-03-3114106152core:SharePremium2023-04-012024-03-3114106152core:Goodwill2023-04-012024-03-3114106152core:IntangibleAssetsOtherThanGoodwill2023-04-012024-03-3114106152core:ComputerSoftware2023-04-012024-03-3114106152core:PlantMachinery2023-04-012024-03-3114106152core:FurnitureFittings2023-04-012024-03-3114106152core:ComputerEquipment2023-04-012024-03-3114106152core:MotorVehicles2023-04-012024-03-3114106152core:NetGoodwillbus:Consolidated2023-03-3114106152core:IntangibleAssetsOtherThanGoodwillbus:Consolidated2023-03-3114106152bus:Consolidated2023-03-3114106152core:NetGoodwillbus:Consolidated2024-03-3114106152core:IntangibleAssetsOtherThanGoodwillbus:Consolidated2024-03-3114106152core:Goodwillbus:Consolidated2023-04-012024-03-3114106152core:NetGoodwillbus:Consolidated2023-04-012024-03-3114106152core:NetGoodwillbus:Consolidated2023-03-3114106152core:IntangibleAssetsOtherThanGoodwillbus:Consolidated2023-03-3114106152core:OtherPropertyPlantEquipmentbus:Consolidated2023-03-3114106152core:OtherPropertyPlantEquipmentbus:Consolidated2023-04-012024-03-3114106152core:Subsidiary12023-04-012024-03-3114106152core:Subsidiary22023-04-012024-03-3114106152core:Subsidiary32023-04-012024-03-3114106152core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-03-3114106152core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-03-3114106152core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3114106152core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3114106152core:Non-currentFinancialInstrumentsbus:Consolidated2024-03-3114106152core:Non-currentFinancialInstrumentsbus:Consolidated2023-03-3114106152core:Non-currentFinancialInstruments2024-03-3114106152core:Non-currentFinancialInstruments2023-03-3114106152core:CurrentFinancialInstrumentsbus:Consolidated2024-03-3114106152core:CurrentFinancialInstrumentsbus:Consolidated2023-03-3114106152core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12024-03-3114106152core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12023-03-3114106152core:Non-currentFinancialInstrumentscore:AfterOneYear22024-03-3114106152core:Non-currentFinancialInstrumentscore:AfterOneYear22023-03-3114106152core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2024-03-3114106152core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-03-3114106152core:Non-currentFinancialInstrumentscore:AfterOneYear2024-03-3114106152core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3114106152bus:PrivateLimitedCompanyLtd2023-04-012024-03-3114106152bus:SmallCompaniesRegimeForAccounts2023-04-012024-03-3114106152bus:FRS1022023-04-012024-03-3114106152bus:Audited2023-04-012024-03-3114106152bus:ConsolidatedGroupCompanyAccounts2023-04-012024-03-3114106152bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP