IRIS Accounts Production v24.2.0.383 SC102458 Board of Directors Board of Directors Board of Directors 1.1.23 31.12.23 31.12.23 The principal activity of the company is the provision of mechanical and electrical building services, which include specialist refrigeration services and a significant range of air conditioning services. The company operates from branches throughout the UK. 87 85 true false true true false false true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWhSC1024582022-12-31SC1024582023-12-31SC1024582023-01-012023-12-31SC1024582021-12-31SC1024582022-01-012022-12-31SC1024582022-12-31SC102458ns15:Scotland2023-01-012023-12-31SC102458ns14:PoundSterling2023-01-012023-12-31SC102458ns10:Director12023-01-012023-12-31SC102458ns10:Director22023-01-012023-12-31SC102458ns10:Director32023-01-012023-12-31SC102458ns10:PrivateLimitedCompanyLtd2023-01-012023-12-31SC102458ns10:FRS1022023-01-012023-12-31SC102458ns10:Audited2023-01-012023-12-31SC102458ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-01-012023-12-31SC102458ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-01-012023-12-31SC102458ns10:FullAccounts2023-01-012023-12-31SC102458ns10:OrdinaryShareClass12023-01-012023-12-31SC102458ns10:RegisteredOffice2023-01-012023-12-31SC102458ns5:CurrentFinancialInstruments2023-12-31SC102458ns5:CurrentFinancialInstruments2022-12-31SC102458ns5:Non-currentFinancialInstruments2023-12-31SC102458ns5:Non-currentFinancialInstruments2022-12-31SC102458ns5:ShareCapital2023-12-31SC102458ns5:ShareCapital2022-12-31SC102458ns5:RetainedEarningsAccumulatedLosses2023-12-31SC102458ns5:RetainedEarningsAccumulatedLosses2022-12-31SC102458ns5:ShareCapital2021-12-31SC102458ns5:RetainedEarningsAccumulatedLosses2021-12-31SC102458ns5:RetainedEarningsAccumulatedLosses2022-01-012022-12-31SC102458ns5:RetainedEarningsAccumulatedLosses2023-01-012023-12-31SC10245812023-01-012023-12-31SC10245812022-01-012022-12-31SC10245812023-01-012023-12-31SC10245842023-01-012023-12-31SC10245842022-01-012022-12-31SC102458ns10:HighestPaidDirector2023-01-012023-12-31SC102458ns10:HighestPaidDirector2022-01-012022-12-31SC102458ns5:OwnedAssets2023-01-012023-12-31SC102458ns5:OwnedAssets2022-01-012022-12-31SC102458112023-01-012023-12-31SC102458112022-01-012022-12-31SC102458ns10:OrdinaryShareClass12022-01-012022-12-31SC102458ns5:LeaseholdImprovements2022-12-31SC102458ns5:PlantMachinery2022-12-31SC102458ns5:MotorVehicles2022-12-31SC102458ns5:ComputerEquipment2022-12-31SC102458ns5:LeaseholdImprovements2023-01-012023-12-31SC102458ns5:PlantMachinery2023-01-012023-12-31SC102458ns5:MotorVehicles2023-01-012023-12-31SC102458ns5:ComputerEquipment2023-01-012023-12-31SC102458ns5:LeaseholdImprovements2023-12-31SC102458ns5:PlantMachinery2023-12-31SC102458ns5:MotorVehicles2023-12-31SC102458ns5:ComputerEquipment2023-12-31SC102458ns5:LeaseholdImprovements2022-12-31SC102458ns5:PlantMachinery2022-12-31SC102458ns5:MotorVehicles2022-12-31SC102458ns5:ComputerEquipment2022-12-31SC102458ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-31SC102458ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-12-31SC102458ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-12-31SC102458ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2022-12-31SC102458ns5:WithinOneYear2023-12-31SC102458ns5:WithinOneYear2022-12-31SC102458ns5:BetweenOneFiveYears2023-12-31SC102458ns5:BetweenOneFiveYears2022-12-31SC102458ns5:MoreThanFiveYears2023-12-31SC102458ns5:MoreThanFiveYears2022-12-31SC102458ns5:AllPeriods2023-12-31SC102458ns5:AllPeriods2022-12-31SC102458ns5:Secured2023-12-31SC102458ns5:Secured2022-12-31SC102458ns5:DeferredTaxation2022-12-31SC102458ns5:DeferredTaxation2023-01-012023-12-31SC102458ns5:DeferredTaxation2023-12-31SC102458ns10:OrdinaryShareClass12023-12-31SC102458ns5:RetainedEarningsAccumulatedLosses2022-12-31SC1024581ns10:Director12022-12-31SC1024581ns10:Director12021-12-31SC1024581ns10:Director12023-01-012023-12-31SC1024581ns10:Director12022-01-012022-12-31SC1024581ns10:Director12023-12-31SC1024581ns10:Director12022-12-31SC102458ns10:Director332022-12-31SC102458ns10:Director332021-12-31SC102458ns10:Director332023-01-012023-12-31SC102458ns10:Director332022-01-012022-12-31SC102458ns10:Director332023-12-31SC102458ns10:Director332022-12-31SC102458ns10:Director222022-12-31SC102458ns10:Director222021-12-31SC102458ns10:Director222023-01-012023-12-31SC102458ns10:Director222022-01-012022-12-31SC102458ns10:Director222023-12-31SC102458ns10:Director222022-12-31
REGISTERED NUMBER: SC102458 (Scotland)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2023

for

Spark's Mechanical Services Limited

Spark's Mechanical Services Limited (Registered number: SC102458)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15


Spark's Mechanical Services Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: R Burnett
D A Kirk
L Forrest





REGISTERED OFFICE: Broadfold Road
Bridge of Don Industrial Estate
Aberdeen
AB23 8EE





REGISTERED NUMBER: SC102458 (Scotland)





AUDITORS: Tawse & Partners
Statutory Auditors
18 North Silver Street
Aberdeen
AB10 1JU

Spark's Mechanical Services Limited (Registered number: SC102458)

Strategic Report
for the Year Ended 31 December 2023

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

PRINCIPAL ACTIVITY
The principal activity of the company is the provision of mechanical and electrical building services, which include specialist refrigeration services and a significant range of air conditioning services. The company operates from branches throughout the UK.

FAIR REVIEW OF BUSINESS
Although Spark's Mechanical Services made a small loss in 2023, current year figures shows the company is trading at a profit. The annual turnover is very close to the previous few years. As predicted previously, this now can be taken as the typical size the Company operates at. Although the Directors are disappointed at the small loss, the retained reserves built up over the past few years has steadily increased. The Company has therefore entered the new Financial Year still with a good customer base and an extremely healthy net asset position.

The company's key financial and other performance indicators during the year were as follows:

Unit 2023 2022
Turnover £ 11,240,428 11,597,648
Gross profit margin % 19.8 19.9
Shareholders' Funds £ 2,845,992 2,978,072

PRINCIPAL RISKS AND UNCERTAINTIES
Principal risks and uncertainties of the organisation still come from the market environment of the sectors that we primarily operate in. The marketplace for development and renovation is affected by political, environmental, and economic issues and changes. As mentioned last year, this change is now noticeable in the oil and gas industry with reference to our operations in the Aberdeen area. Fortunately, the Company has been able to make headway into the Renewables sector, with onshore work for various offshore windfarms. The Company's biggest installations were not in the Oil & Gas sector in 2023 and will not be either in 2024. Similarly, it's largest service and maintenance customer isn't from the Oil & Gas sector. It is encouraging to see some of the Company's customers which were originally only involved in Oil & Gas, now expanding into Renewables and retaining their sites in the Aberdeen area. The news just last week that GB Energy will have its main headquarters in Aberdeen is also very positive news with the direct and spin-off work it will bring. With the Company's broad on-going spectrum of customers and work, the Directors expect to maintain similar levels of Turnover in 2024 and beyond.

FUTURE DEVELOPMENTS
The Directors are confident that the Company is in a strong position to move forward. We continue to have a good customers base and orders to be completed. We, and our customer and supply chain, are adapting to the changes which are occurring.

ON BEHALF OF THE BOARD:





D A Kirk - Director


9 September 2024

Spark's Mechanical Services Limited (Registered number: SC102458)

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.

DIVIDENDS
Interim dividends totalling £63,765 were distributed during the year (2022: £222,258).

The directors recommend that no final dividends be paid.

FUTURE DEVELOPMENTS
The future developments of the company are set out in the Strategic Report, in accordance with s.414C(11) CA 2006.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

R Burnett
D A Kirk
L Forrest

FINANCIAL INSTRUMENTS
The company has secured debt factoring in place with a balance outstanding at 31 December 2023 of £699,652 (2022: £283,190). The company still has an outstanding CBILS loan at 31 December 2023, repayments of £100,000 (2022: £83,333) were made during the year leaving a balance of £316,667 (2022: £416,667). There is no exposure to the company regarding credit, liquidity, cashflow or market risk.

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.

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.

Spark's Mechanical Services Limited (Registered number: SC102458)

Report of the Directors
for the Year Ended 31 December 2023


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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:



D A Kirk - Director


9 September 2024

Report of the Independent Auditors to the Members of
Spark's Mechanical Services Limited

Opinion
We have audited the financial statements of Spark's Mechanical 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
Spark's Mechanical 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 page three, 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
Spark's Mechanical 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.

Extent to which an audit is considered capable of detecting irregularities, including fraud
All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at
the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud
or non compliance with laws and regulations throughout the audit.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and
disclosures in the financial statements. The most relevant frameworks identified include:

- UK GAAP
- Companies Act 2006
- Corporation Tax legislation
- VAT legislation
- Health and Safety legislation

We gained an understanding of how the company is complying with these laws and regulations by making enquiries
of management. We corroborated these enquiries through our review of submitted returns, relevant correspondence
with regulatory bodies and board minutes.

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud
might occur by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. The following procedures were performed to provide reasonable assurance that the financial
statements were free of material fraud or error:

- Reviewing minutes of meetings of those charged with governance;
- Reviewing the level of and reasoning behind the company's procurement of legal and professional services;
- In respect of amounts recoverable on contracts and accrued income, reviewing a sample of contract files to
confirm the value of the outstanding claims to evidence of the contractors agreement;
- Performing audit procedures over the risk of management override of controls, including testing of journal
entries and other adjustments for appropriateness, evaluating the business rationale of significant
transactions outside the normal course of business and reviewing judgements made by management in their
calculation of accounting estimates for potential management bias.


Our audit procedures were designed to respond to risk of material misstatement in the financial statements,
recognising that the risk of not detecting a material risk due to fraud is higher than the risk of not detecting one
resulting from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation.
There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws
and regulations is from events and transactions reflected in the financial statements, the less likely we are to become
aware of it.

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.

Report of the Independent Auditors to the Members of
Spark's Mechanical Services Limited


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.




Hazel Neilson (Senior Statutory Auditor)
for and on behalf of Tawse & Partners
Statutory Auditors
18 North Silver Street
Aberdeen
AB10 1JU

9 September 2024

Spark's Mechanical Services Limited (Registered number: SC102458)

Income Statement
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

TURNOVER 5 11,240,428 11,597,648

Cost of sales 9,013,919 9,286,338
GROSS PROFIT 2,226,509 2,311,310

Administrative expenses 2,293,672 2,274,575
(67,163 ) 36,735

Other operating income 6 - 797,030
OPERATING (LOSS)/PROFIT 8 (67,163 ) 833,765

Interest receivable and similar income 9 20,775 1,118
(46,388 ) 834,883

Interest payable and similar expenses 10 25,585 17,117
(LOSS)/PROFIT BEFORE TAXATION (71,973 ) 817,766

Tax on (loss)/profit 11 (3,658 ) 161,089
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(68,315

)

656,677

Spark's Mechanical Services Limited (Registered number: SC102458)

Other Comprehensive Income
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

(LOSS)/PROFIT FOR THE YEAR (68,315 ) 656,677


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(68,315

)

656,677

Spark's Mechanical Services Limited (Registered number: SC102458)

Balance Sheet
31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 13 503,688 403,854

CURRENT ASSETS
Stocks 14 124,178 165,310
Debtors 15 4,076,293 3,012,918
Cash at bank and in hand 1,522,524 1,924,710
5,722,995 5,102,938
CREDITORS
Amounts falling due within one year 16 3,060,946 2,132,271
NET CURRENT ASSETS 2,662,049 2,970,667
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,165,737

3,374,521

CREDITORS
Amounts falling due after more than one
year

17

(216,667

)

(316,667

)

PROVISIONS FOR LIABILITIES 22 (103,078 ) (79,782 )
NET ASSETS 2,845,992 2,978,072

CAPITAL AND RESERVES
Called up share capital 23 25 25
Retained earnings 24 2,845,967 2,978,047
SHAREHOLDERS' FUNDS 2,845,992 2,978,072

The financial statements were approved by the Board of Directors and authorised for issue on 9 September 2024 and were signed on its behalf by:




L Forrest - Director R Burnett - Director




D A Kirk - Director


Spark's Mechanical Services Limited (Registered number: SC102458)

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 25 2,543,628 2,543,653

Changes in equity
Dividends - (222,258 ) (222,258 )
Total comprehensive income - 656,677 656,677
Balance at 31 December 2022 25 2,978,047 2,978,072

Changes in equity
Dividends - (63,765 ) (63,765 )
Total comprehensive income - (68,315 ) (68,315 )
Balance at 31 December 2023 25 2,845,967 2,845,992

Spark's Mechanical Services Limited (Registered number: SC102458)

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 (302,480 ) 920,796
Interest paid (25,585 ) (17,117 )
Government grants - 2,255
Tax paid (111,201 ) (198,127 )
Net cash from operating activities (439,266 ) 707,807

Cash flows from investing activities
Purchase of tangible fixed assets (274,401 ) (320,604 )
Sale of tangible fixed assets 15,767 43,512
Interest received 20,775 1,118
Net cash from investing activities (237,859 ) (275,974 )

Cash flows from financing activities
Loan repayments in year (100,000 ) (83,333 )
Advanced to group undertakings (3,284 ) (2,290 )
Amount repaid by directors 25,525 69,997
Amount advanced to directors - (84,003 )
Movement in drawdown borrowings 416,463 (329,403 )
Equity dividends paid (63,765 ) (222,258 )
Net cash from financing activities 274,939 (651,290 )

Decrease in cash and cash equivalents (402,186 ) (219,457 )
Cash and cash equivalents at beginning of
year

2

1,924,710

2,144,167

Cash and cash equivalents at end of year 2 1,522,524 1,924,710

Spark's Mechanical Services Limited (Registered number: SC102458)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023

1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.12.23 31.12.22
£    £   
(Loss)/profit before taxation (71,973 ) 817,766
Depreciation charges 168,481 124,367
Profit on disposal of fixed assets (9,682 ) (28,763 )
Government grants - (2,255 )
Finance costs 25,585 17,117
Finance income (20,775 ) (1,118 )
91,636 927,114
Decrease/(increase) in stocks 41,132 (142,555 )
(Increase)/decrease in trade and other debtors (1,054,061 ) 703,003
Increase/(decrease) in trade and other creditors 618,813 (566,766 )
Cash generated from operations (302,480 ) 920,796

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 1,522,524 1,924,710
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 1,924,710 2,144,167


3. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 1,924,710 (402,186 ) 1,522,524
1,924,710 (402,186 ) 1,522,524
Debt
Debts falling due within 1 year (383,190 ) (416,462 ) (799,652 )
Debts falling due after 1 year (316,667 ) 100,000 (216,667 )
(699,857 ) (316,462 ) (1,016,319 )
Total 1,224,853 (718,648 ) 506,205

Spark's Mechanical Services Limited (Registered number: SC102458)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Spark's Mechanical Services Limited is a private company, limited by shares , registered in Scotland. 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 (£), and are rounded to the nearest £.

2. STATEMENT OF COMPLIANCE

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.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared on a going concern basis under the historical cost convention modified to include certain items at fair value.

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

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with other members of the group.

Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Rendering of services
When the outcome of a transaction can be estimated reliably, turnover from services rendered is recognised by reference to the stage of completion at the Statement of Financial Position date. Stage of completion is measured by reference to contractual rates of labour hours for services rendered and direct expenses incurred. When the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable.

Construction contracts
In respect of contract work, revenue is recognised by reference to stage of completion of the contract. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors.

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

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

Grants
Grant income is recognised when there is reasonable assurance that the company will comply with conditions attached to them.

Interest Receivable
Interest income is recognised using the effective interest method.

Spark's Mechanical Services Limited (Registered number: SC102458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

3. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life, or over the lease term, whichever is the shorter.
Improvements to property - Over term of lease
Plant and machinery- 20% on cost
Motor vehicles- 25% on cost
Office equipment- 25% on cost

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

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

Government grants
During the year the company benefited from £nil (2022: £2,255) of government grants in the form of interest paid on behalf of the company accrued on the Coronavirus Business Interruption Loan Scheme. In accordance with our accounting policy this credit is included in other operating income within the Income Statement over the same period as the interest is chargeable.

Stocks
Stocks are stated at the lower of cost, using the first in first out method, and selling price less costs to sell. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Spark's Mechanical Services Limited (Registered number: SC102458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

3. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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 option 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.

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 company after deducting all of its liabilities.

Basic financial liabilities
Basic 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 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.

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.

Spark's Mechanical Services Limited (Registered number: SC102458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

3. ACCOUNTING POLICIES - continued

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

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

Leasing commitments
Leases in which subsequently all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the Statement of Income and Retained Earnings on a straight line basis over the period of the lease.

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

Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at
transaction price. Any losses arising from impairment are recognised in the profit and loss account in other
administrative expenses.

Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and bank deposits.

Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a financing transaction it is measured at fair value.

Impairment
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company'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.

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:-

Amounts Recoverable on Contracts
As disclosed in the accounting policies, construction contract profits are contingent on the judgements of management around the future outcome and stage of the contract.

Spark's Mechanical Services Limited (Registered number: SC102458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

5. TURNOVER

The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the company.

Analysis of turnover is given below:

31.12.2331.12.22
££

Rendering of Services11.240,42811,597,648
11,240,42811,597,648


Turnover from construction contracts:

31.12.2331.12.22
££

Gross amount due from customers for
contract work1,004,5161,020,012


6. OTHER OPERATING INCOME
31.12.23 31.12.22
£    £   
Insurance claim - 794,775
Government grants - 2,255
- 797,030

In 2022 the company received an insurance claim of £794,775 for Business Interruption, due to the impact of the Covid 19 pandemic in 2020 and 2021 on the company's turnover.

7. EMPLOYEES AND DIRECTORS

The aggregate payroll costs (including directors' remuneration) were as follows:
31.12.2331.12.22
££
Wages and salaries3,291,0163,168,147
Social security costs361,109364,638
Pension costs, defined contribution scheme179.345172,235
3,831,4703,705,020

The average number of persons employed by the company (including directors) during the year, analysed by
category was as follows:
31.12.2331.12.22
No.No.
Contracts / Service6665
Administration and support2120
8785

Spark's Mechanical Services Limited (Registered number: SC102458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

31.12.23 31.12.22
£    £   
Directors' remuneration 240,507 245,440
Directors' pension contributions to money purchase schemes 86,425 79,526

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 3

Information regarding the highest paid director is as follows:
31.12.23 31.12.22
£    £   
Emoluments etc 95,200 96,879
Pension contributions to money purchase schemes 24,000 24,000

8. OPERATING (LOSS)/PROFIT

The operating loss (2022 - operating profit) is stated after charging/(crediting):

31.12.23 31.12.22
£    £   
Depreciation - owned assets 168,481 124,367
Profit on disposal of fixed assets (9,682 ) (28,763 )
Auditors' remuneration 14,640 14,500
Rental operating leases 107,721 102,866

9. INTEREST RECEIVABLE AND SIMILAR INCOME
31.12.23 31.12.22
£    £   
Bank interest received 20,700 1,103
Other interest received 75 15
20,775 1,118

10. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
£    £   
Bank loan interest 25,585 17,117

Spark's Mechanical Services Limited (Registered number: SC102458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

11. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
31.12.23 31.12.22
£    £   
Current tax:
UK corporation tax (31,540 ) 111,186
Adjustments in respect of
prior periods 4,586 -
Total current tax (26,954 ) 111,186

Deferred tax 23,296 49,903
Tax on (loss)/profit (3,658 ) 161,089

UK corporation tax was charged at 19%) in 2022.

Reconciliation of total tax (credit)/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
£    £   
(Loss)/profit before tax (71,973 ) 817,766
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
25% (2022 - 19%)

(17,993

)

155,376

Effects of:
Expenses not deductible for tax purposes 750 369
Income not taxable for tax purposes (2,421 ) (5,465 )
Capital allowances in excess of depreciation (21,836 ) (38,693 )
Adjustments to tax charge in respect of previous periods 4,586 -
Increase from other short term timing difference 23,296 49,903
Group relief - (401 )
Difference due to changes in tax rate 9,960 -
Total tax (credit)/charge (3,658 ) 161,089

12. DIVIDENDS
31.12.23 31.12.22
£    £   
Ordinary shares of £1 each
Interim 63,765 222,258

Spark's Mechanical Services Limited (Registered number: SC102458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

13. TANGIBLE FIXED ASSETS
Improvements
to Plant and Motor Office
property machinery vehicles equipment Totals
£    £    £    £    £   
COST
At 1 January 2023 10,648 4,804 897,963 161,320 1,074,735
Additions - - 273,731 669 274,400
Disposals - - (132,651 ) - (132,651 )
At 31 December 2023 10,648 4,804 1,039,043 161,989 1,216,484
DEPRECIATION
At 1 January 2023 10,633 3,506 500,213 156,529 670,881
Charge for year 15 371 166,400 1,695 168,481
Eliminated on disposal - - (126,566 ) - (126,566 )
At 31 December 2023 10,648 3,877 540,047 158,224 712,796
NET BOOK VALUE
At 31 December 2023 - 927 498,996 3,765 503,688
At 31 December 2022 15 1,298 397,750 4,791 403,854

14. STOCKS
31.12.23 31.12.22
£    £   
Raw materials and consumables 124,178 165,310

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 2,847,118 1,763,112
Amounts owed by group undertakings 7,341 4,057
Amounts recoverable on contract 931,705 478,614
Other debtors 4,326 22,533
Directors' current accounts - 25,525
Tax 31,555 -
Prepayments and accrued income 254,248 719,077
4,076,293 3,012,918

The amounts due from group undertakings are interest free and are repayable on demand.

The company transferred trade debtors under a Receivables Finance Agreement. The trade debtors have not been derecognised from the balance sheet, because the company retains, substantially all of the risks and rewards, primarily credit risk. The amount received on transfer of £699,652 (2022 £283,190) has been recognised within other loans.

Spark's Mechanical Services Limited (Registered number: SC102458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans and overdrafts (see note 18) 100,000 100,000
Other loans (see note 18) 699,652 283,190
Trade creditors 1,770,160 1,305,890
Tax - 106,600
Social security and other taxes 141,294 122,664
VAT 221,766 75,252
Other creditors 72,404 72,049
Directors' current accounts 102 102
Accruals and deferred income 55,568 66,524
3,060,946 2,132,271

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.23 31.12.22
£    £   
Bank loans (see note 18) 216,667 316,667

18. 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 100,000 100,000
Other loans 699,652 283,190
799,652 383,190

Amounts falling due between two and five years:
Bank loans - 2-5 years 216,667 316,667

The CBILS loan is repayable over 5 years and interest is charged at the base rate plus 2.32%.

19. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.23 31.12.22
£    £   
Within one year 44,250 34,250
Between one and five years 139,000 125,000
In more than five years 20,300 38,550
203,550 197,800

The amount of non-cancellable operating lease payments recognised as an expense during the year was £107,721 (2022: £102,866).

Spark's Mechanical Services Limited (Registered number: SC102458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

20. SECURED DEBTS

The following secured debts are included within creditors:

31.12.23 31.12.22
£    £   
Bank loans 316,667 416,667
Other loans 699,652 283,190
1,016,319 699,857

Other loans represent the amount due under the Receivables Finance Agreement ,which is secured by a Bond and Floating Charge over all the assets of Spark's Mechanical Services Limited and is repayable on demand. The discount charge is 3% above Base Rate.

The Bank of Scotland holds a Bond and Floating charge over the whole assets of the company.

21. FINANCIAL INSTRUMENTS

The carrying amount of the company's financial instruments are as follows:

31.12.23 31.12.22
£ £
Financial liabilities
Measured at amortised cost
Bank and other loans (see notes 16-17) 1,016,319 699,857

Expenses
Financial liabilities measured at amortised cost 78,837 48,375


22. PROVISIONS FOR LIABILITIES
31.12.23 31.12.22
£    £   
Deferred tax 103,078 79,782

Deferred
tax
£   
Balance at 1 January 2023 79,782
Provided during year 23,296
Balance at 31 December 2023 103,078

23. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
25 Ordinary £1 25 25

Spark's Mechanical Services Limited (Registered number: SC102458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

23. CALLED UP SHARE CAPITAL - continued

Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions:
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.




24. RESERVES
Retained
earnings
£   

At 1 January 2023 2,978,047
Deficit for the year (68,315 )
Dividends (63,765 )
At 31 December 2023 2,845,967

25. PENSION COMMITMENTS

The company operates a defined contribution pension scheme, The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £179,345 (2022 - £172,235).
Contributions totalling £28,995 (2022 - £33,650) were payable to the scheme at the end of the year and are included in creditors.

26. PARENT AND ULTIMATE PARENT COMPANY

Sparks (Holdings) Limited is the company's parent company. The registered office of Sparks (Holdings) Limited is Broadfold Road, Bridge of Don Industrial Estate, Aberdeen, AB23 8EE.

The group financial statements are available on request from Companies House, 4th Floor, Edinburgh Quay 2, 139 Fountainbridge, Edinburgh, EH3 9FF.

27. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 December 2023 and 31 December 2022:

31.12.23 31.12.22
£    £   
L Forrest
Balance outstanding at start of year 25,525 7,750
Amounts advanced - 41,805
Amounts repaid (25,525 ) (24,030 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - 25,525

Spark's Mechanical Services Limited (Registered number: SC102458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

27. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued

D A Kirk
Balance outstanding at start of year - 3,667
Amounts repaid - (3,667 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - -

R Burnett
Balance outstanding at start of year (102 ) -
Amounts advanced - 42,198
Amounts repaid - (42,300 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year (102 ) (102 )

The loans are interest free and are repayable on demand.