Company registration number SC163066 (Scotland)
GAS CALL SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
GAS CALL SERVICES LIMITED
COMPANY INFORMATION
Directors
Mr S Maclean
Mr A Lowe
(Appointed 3 April 2023)
Mr G A Levinsohn
(Appointed 8 April 2024)
Mr J S Sheridan
(Appointed 30 May 2024)
Mr P J Edwards
(Appointed 30 May 2024)
Company number
SC163066
Registered office
2 Queenslie Court
Summerlee Street
Glasgow
Scotland
G33 4DB
Auditor
DSG Audit
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
GAS CALL SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25
GAS CALL SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report, together with the audited financial statements for the year ended 31 March 2024.

Principal activity and review of business

The principal activities of Gas Call Services Limited (“the Company” or “GCSL”) in the year under review was the service, maintenance, and installation of domestic and commercial gas appliances, predominately into the social housing market.

 

Turnover for the year ended March 2024 was £28.8m (March 2023: £26.7m). The Company reported a profit before tax for the year of £3.3m (March 2023: £2.6m). The business performed strongly during the year reporting both record sales and profit, for the third consecutive year.

 

Following a number of years of uncertainty caused by the coronavrius pandemic, Brexit and the cost of living crises, the year under review was one of consolidation, with year-on-year turnover growth of 8%. Whilst all revenue streams showed an improvement on prior year, the main driver in revenue growth was the full year impact of contracts won and mobilised part way through the previous year. Margins were generally maintained, with industry related price increases and general inflationary cost increases being mitigated by Consumer Price Index or equivalent uplifts, afforded in the Company’s social housing contracts.

 

The Company has continued to be successful in its long-term strategy of promoting the Gas Call brand in the wider UK market with 37% of total revenues now coming outside of the Company’s traditional markets. With ambitious organic growth plans and having previously invested in its business development capabilities the Company managed to secure new contracts in the period, with a combined contracted value of £46m. In addition, the Company also secured extensions to two of its major contracts securing future order book values of over £20m. Post-year end the Company has continued to be successful in winning new work, with further contracts secured with a combined order value of £19m. In line with the Company’s growth strategy all new business has been won in the wider English market with the Company now having a significant geographic footprint across the UK and an order book in excess of £100m.

 

The contract extensions secured by GCSL during the year are viewed of equal importance to the new contract wins. GCSL views the contract extensions as an acknowledgement of its excellent client relationships, driven by contractual performance, as the Company continues to meet the highest levels of compliance performance required by both its social housing and private clients.

 

GCSL’s trading subsidiary WRB Gas (Contracts) Limited, continued to perform well during the period under review with turnover growth of 21%.

 

The directors are encouraged by the results for the year. The Company has strong visibility of revenues for the next 12 months and beyond. Its worthy of note that growth in the year was 100% organically driven. The Company has the desire, financial strength, and market awareness to further grow the business via acquisition and continues to look for suitable opportunities which will complement the existing business.

 

The directors view the next 12 months with cautious optimism.

GAS CALL SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

Principal risks and uncertainties

 

Changes in market and economic environments

 

 

 

 

Key performance indicators

The business monitors a number of key performance indicators which assist not only in the financial management of the Company but also in measuring contractual performance from a client perspective.

 

                         2024        2023

                         £’000s        £’000s

Turnover                     28,766        26,695

Net profit before tax                3,313        2,553

Net current assets                7,287        5,169

Net assets                    8,174        5,699

 

Number of average employees          204        198

 

The directors are aware of their health and safety responsibilities. The organisation has a detailed policy in place and conducts regular reviews to ensure that the polices are adhered to. The directors receive regular reports on health and safety issues arising from across the organisation.

 

In March 2024, the business was again awarded the ROSPA ‘Presidents Award’ for health and safety. The President’s Award is issued after winning ‘Gold’ for ten or more consecutive years. This prestigious award demonstrates GCSL’s ongoing commitment to the health and safety of all its stakeholders.

Future developments

The underlying business continues to be supported by fixed term contracts with a secure client base (Registered Social Landlords or Local Authorities and Councils). The directors are encouraged by the financial performance of the business and view the outlook for the next 12 months and beyond with cautious optimism.

GAS CALL SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Decarbonisation Policy/plan

GCSL remains committed to reducing its impact on the environment through the work we do. The Company has already created a carbon reduction plan in line with the UK Government PPN 06/21 requirement that outlines Gas Call’s current position and future plan.

 

In addition, GCSL will assess its entire supply chain and eventually measure and reduce its carbon impact via the use of the Greenhouse Gas (GHG) protocol Scopes, 1, 2 and 3 methodologies. The Company understands that this will take considerable time and effort but recognises that this is essential for the business. GAS Call will, in due course, work towards becoming a Net Zero Carbon (NZC) business before the 2050 deadline and will commit to targeted carbon reductions once a baseline assessment is complete. The Company views the matter seriously and has committed resource to achieve these aims.

On behalf of the board

Mr J S Sheridan
Director
13 September 2024
GAS CALL SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr A M Byrne
(Resigned 8 April 2024)
Mr M D Holmes
(Resigned 8 April 2024)
Mr S Maclean
Mr D J Corbishley
(Resigned 8 April 2024)
Mr M Donnelly
(Resigned 8 April 2024)
Mr A Lowe
(Appointed 3 April 2023)
Mr G A Levinsohn
(Appointed 8 April 2024)
Mr J S Sheridan
(Appointed 30 May 2024)
Mr P J Edwards
(Appointed 30 May 2024)
Post reporting date events

See note 23 for details of post balance sheet events.

Auditor

DSG resigned as auditor on 11 September 2024. DSG Audit were appointed on 11 September 2024 to the Company 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.

Strategic report

The Company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the Company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the Company's principal activity, financial risk management policies and future developments.

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 Company’s auditor 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 Company’s auditor is aware of that information.

On behalf of the board
Mr J S Sheridan
Director
13 September 2024
GAS CALL SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -

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 Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.

GAS CALL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GAS CALL SERVICES LIMITED
- 6 -
Opinion

We have audited the financial statements of Gas Call Services Limited (the ''Company'') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

GAS CALL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GAS CALL SERVICES LIMITED (CONTINUED)
- 7 -
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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the Company.

The following laws and regulations were identified as being of significance to the Company:

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the Company complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

GAS CALL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GAS CALL SERVICES LIMITED (CONTINUED)
- 8 -

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the Company’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error.  As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Laura Leslie BSc ACA
Senior Statutory Auditor
For and on behalf of DSG Audit
13 September 2024
Chartered Accountants
Statutory Auditor
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
GAS CALL SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£ '000
£ '000
Turnover
3
28,766
26,695
Cost of sales
(20,694)
(19,964)
Gross profit
8,072
6,731
Administrative expenses
(4,723)
(4,171)
Other operating income
60
55
Operating profit
4
3,409
2,615
Interest payable and similar expenses
6
(96)
(62)
Profit before taxation
3,313
2,553
Tax on profit
7
(838)
(235)
Profit for the financial year
2,475
2,318

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

GAS CALL SERVICES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£ '000
£ '000
£ '000
£ '000
Fixed assets
Intangible assets
8
4
4
Tangible assets
9
190
202
Investments
10
976
976
1,170
1,182
Current assets
Stocks
12
228
296
Debtors
13
12,087
8,036
Cash at bank and in hand
1,707
3,680
14,022
12,012
Creditors: amounts falling due within one year
14
(6,735)
(6,843)
Net current assets
7,287
5,169
Total assets less current liabilities
8,457
6,351
Creditors: amounts falling due after more than one year
15
(245)
(611)
Provisions for liabilities
Deferred tax liability
18
38
41
(38)
(41)
Net assets
8,174
5,699
Capital and reserves
Called up share capital
20
-
0
-
0
Profit and loss reserves
8,174
5,699
Total equity
8,174
5,699

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 13 September 2024 and are signed on its behalf by:
Mr J S Sheridan
Director
Company registration number SC163066 (Scotland)
GAS CALL SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Profit and loss reserves
Total
£ '000
£ '000
£ '000
Balance at 1 April 2022
-
0
3,381
3,381
Year ended 31 March 2023:
Profit and total comprehensive income
-
2,318
2,318
Balance at 31 March 2023
-
0
5,699
5,699
Year ended 31 March 2024:
Profit and total comprehensive income
-
2,475
2,475
Balance at 31 March 2024
-
0
8,174
8,174
GAS CALL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

Gas Call Services Limited is a private company limited by shares incorporated in Scotland. The registered office is 2 Queenslie Court, Summerlee Street, Glasgow, Scotland, G33 4DB.

 

The principal activity of the Company is disclosed in the strategic report.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest £ '000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

 

 

The financial statements of the Company are consolidated in the financial statements of Duality Group Limited. These consolidated financial statements are available from its registered office, Norfolk House, 13 Southampton Place, London, WC1A 2AJ.

The Company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the Company as an individual entity and not about its group.

 

Gas Call Services Limited is a wholly owned subsidiary of Duality Group Limited and the results of Gas Call Services Limited are included in the consolidated financial statements of Duality Group Limited which are available from the address above.

GAS CALL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.2
Going concern

The directors are required to assess the ability of the Company to continue as a going concern, for a period of at least 12 months from the date of approval of the financial statements.true

 

The Company has reviewed and continues to review the risks to the business in making their going concern assessment, the directors have prepared and considered financial forecasts for the following 12 months. The directors have conducted sensitivity analysis on these forecasts and have considered the impact of worst -case scenarios.

 

Based on the outcome of this analysis and the accompanying cash flow forecasts, the directors believe that there will be sufficient funds available to the Company to meet its obligations over the next 12 months. This, in conjunction with now being part of a significantly larger group and its commitment to the Company, leads the directors to believe that it is appropriate that the Company continues to operate as a going concern.

1.3
Turnover

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

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

1.4
Research and development expenditure

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

1.5
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:

Development costs
10% straight line
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

GAS CALL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
25% straight line
Plant and equipment
20% reducing balance
Fixtures and fittings
15% reducing balance
Computers
25% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

1.8
Impairment of fixed assets

At each reporting period end date, the Company 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

GAS CALL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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 Company 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 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 intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

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 Company 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.

GAS CALL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
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 financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company’s contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the Company 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 Company.

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 Company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

GAS CALL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
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 when the Company has 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.

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 leases asset are consumed.

2
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.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

GAS CALL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
3
Turnover
2024
2023
£ '000
£ '000
Turnover analysed by class of business
Sales
28,766
26,695
2024
2023
£ '000
£ '000
Turnover analysed by geographical market
United Kingdom
28,766
26,695
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£ '000
£ '000
Fees payable to the company's auditor for the audit of the company's financial statements
12
10
Depreciation of owned tangible fixed assets
30
26
Depreciation of tangible fixed assets held under finance leases
43
45
Profit on disposal of tangible fixed assets
-
(8)
Operating lease charges
66
56
5
Employees

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

2024
2023
Number
Number
Indirect
89
75
Direct
115
123
Total
204
198

Their aggregate remuneration comprised:

2024
2023
£ '000
£ '000
Wages and salaries
8,103
7,974
Social security costs
816
770
Pension costs
213
199
9,132
8,943

No directors are remunerated by the Company, the directors are remunerated by the wider group.

GAS CALL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
6
Interest payable and similar expenses
2024
2023
£ '000
£ '000
Interest on bank overdrafts and loans
91
57
Interest on finance leases and hire purchase contracts
5
5
96
62
7
Taxation
2024
2023
£ '000
£ '000
Current tax
UK corporation tax on profits for the current period
838
238
Adjustments in respect of prior periods
3
3
Total current tax
841
241
Deferred tax
Origination and reversal of timing differences
(3)
(5)
Changes in tax rates
-
0
(1)
Total deferred tax
(3)
(6)
Total tax charge
838
235

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£ '000
£ '000
Profit before taxation
3,313
2,553
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
828
485
Tax effect of expenses that are not deductible in determining taxable profit
7
(1)
Group relief
-
0
(251)
Under/(over) provided in prior years
3
3
Deferred tax rate change
-
0
(1)
Taxation charge for the year
838
235

 

GAS CALL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
8
Intangible fixed assets
Development costs
£ '000
Cost
At 1 April 2023 and 31 March 2024
4
Amortisation and impairment
At 1 April 2023 and 31 March 2024
-
0
Carrying amount
At 31 March 2024
4
At 31 March 2023
4
9
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£ '000
£ '000
£ '000
£ '000
£ '000
£ '000
Cost
At 1 April 2023
10
90
61
145
303
609
Additions
1
12
13
35
-
0
61
At 31 March 2024
11
102
74
180
303
670
Depreciation and impairment
At 1 April 2023
10
47
41
104
205
407
Depreciation charged in the year
-
0
7
4
18
44
73
At 31 March 2024
10
54
45
122
249
480
Carrying amount
At 31 March 2024
1
48
29
58
54
190
At 31 March 2023
-
0
43
20
41
98
202

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

2024
2023
£ '000
£ '000
Motor vehicles
52
94
GAS CALL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
10
Fixed asset investments
2024
2023
Notes
£ '000
£ '000
Investments in subsidiaries
11
976
976
11
Subsidiaries

Details of the Company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
W.R.B Gas (Contracts) Limited
West Pitkerro Industrial Estate, Dundee, Scotland, DD5 3UB
Service, maintenance and installation of domestic and commercial gas appliances
Ordinary
100.00
12
Stocks
2024
2023
£ '000
£ '000
Finished goods and goods for resale
228
296
13
Debtors
2024
2023
Amounts falling due within one year:
£ '000
£ '000
Trade debtors
3,727
2,663
Amounts owed by group undertakings
5,910
3,843
Other debtors
391
582
Prepayments and accrued income
2,059
948
12,087
8,036

An impairment loss of £7k (2023: £7k) was recognised against trade debtors.

 

Amounts owed by group undertakings are unsecured, interest free and are repayable on demand.

GAS CALL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£ '000
£ '000
Obligations under finance leases
17
32
32
Other borrowings
16
333
333
Trade creditors
3,760
4,366
Amounts owed to group undertakings
212
577
Corporation tax
440
86
Other taxation and social security
622
936
Other creditors
933
48
Accruals and deferred income
403
465
6,735
6,843

Amounts owed to group undertakings are unsecured, interest free and are repayable on demand.

15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£ '000
£ '000
Obligations under finance leases
17
51
83
Other borrowings
16
194
528
245
611
16
Loans and overdrafts
2024
2023
£ '000
£ '000
Other loans
527
861
Payable within one year
333
333
Payable after one year
194
528

The Company took out a new loan in 2023 of £1,000k with Independent Growth Finance ('IGF') who provide asset based funding. The balance as at 31 March 2024 amounted to £527k. The loan is being repaid in monthly instalments of £28k plus interest. Interest was payable at a rate of 7% per annum above the applicable rate. The loan was repaid in full post year-end.

 

GAS CALL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£ '000
£ '000
Within one year
32
32
In two to five years
51
83
83
115

Finance lease payments represent rentals payable by the Company for certain motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

 

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the Company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£ '000
£ '000
Accelerated capital allowances
44
45
Short term timing differences
(6)
(4)
38
41
2024
Movements in the year:
£ '000
Liability at 1 April 2023
41
Credit to profit or loss
(3)
Liability at 31 March 2024
38

The deferred tax liability set out above is expected to reverse within 12 - 24 months and relates to accelerated capital allowances that are expected to mature within the same period.

GAS CALL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£ '000
£ '000
Charge to profit or loss in respect of defined contribution schemes
213
199

The Company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Company in an independently administered fund. Contributions totalling £48k (2023: £44k) were payable to the fund as at the year end and are included in other creditors.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£ '000
£ '000
Issued and fully paid
Ordinary shares of £1 each
100
100
-
-
100
100
-
0
-
0

There is a single class of ordinary shares. No restrictions on dividends and repayment of capital.

21
Financial commitments, guarantees and contingent liabilities

On 29 August 2018, a floating charge was registered against the Company in respect of a financial guarantee for related entity borrowings, this has been satisfied on 23 April 2024.

22
Operating lease commitments
Lessee

At the reporting end date the Company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£ '000
£ '000
Within one year
191
153
Between two and five years
391
313
582
466
23
Events after the reporting date

On the 8 April 2024, GCSL, its subsidiary WRB Gas (Contracts) Limited and the ultimate parent Duality Group Limited, sold 100% of its ordinary share capital to Cap10 4NetZero Bidco Limited. The ultimate parent company is Cap10 Partners Holdco Limited. The ultimate controlling party is Fabrice Nottin.

 

The Company is now part of the Sureserve Group which the directors believe strengthens GCSL’s position in the heating and hot water services sector, brings wider opportunities in the energy transition and renewables sector as well providing substantial financial backing, in support of GCSL’s future growth aspirations.

GAS CALL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
24
Related party transactions

The Company has taken advantage of the exemption not to disclose any transactions or balances with wholly owned members of the group.

 

The Company engages Intelihome (UK) Ltd for the provision of materials. M Donnelly is a director of the Company. During the year, the Company paid for materials to the value of £9k (2023: £16k). Amounts outstanding at the year end, included in creditors, is £1k (2023: £6k).

 

The Company hires vehicles from Commercial Fleet Rentals Limited, a company owned by a close family member of one of the directors. During the year the Company hired vehicles from Commercial Fleet Rentals Limited for £269k (2023: £202k). Amounts outstanding at the year end, included within creditors, is £34k (2023: £nil).

25
Ultimate controlling party

The Company was wholly owned by Duality Group Limited, the ultimate parent undertaking as at 31 March 2024. Duality Group Limited is incorporated in England and Wales. Its registered office is Norfolk House, 13 Southampton Place, London, WC1A 2AJ.

 

The smallest and largest group into which the results of the entity are consolidated is that headed by Duality Group Limited as at 31 March 2024.

 

As at 31 March 2024, there is no one ultimate controlling party.

 

Note 23 contains details of post period end events concerning the parent company and ultimate controlling party at the date of account signing.

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