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Registration number: 07259344

SGS Gases Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2023

 

SGS Gases Limited

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 10

 

SGS Gases Limited

(Registration number: 07259344)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

14,092,996

12,577,884

Current assets

 

Stocks

5

258,568

256,567

Debtors

6

5,250,428

4,543,414

Cash at bank and in hand

 

242,839

616,738

 

5,751,835

5,416,719

Creditors: Amounts falling due within one year

7

(1,404,531)

(1,642,019)

Net current assets

 

4,347,304

3,774,700

Total assets less current liabilities

 

18,440,300

16,352,584

Creditors: Amounts falling due after more than one year

7

(16,229,309)

(14,234,640)

Provisions for liabilities

(1,644,042)

(1,419,182)

Net assets

 

566,949

698,762

Capital and reserves

 

Called up share capital

8

100

100

Retained earnings

566,849

698,662

Shareholders' funds

 

566,949

698,762

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

 

SGS Gases Limited

(Registration number: 07259344)
Balance Sheet as at 31 December 2023

Approved and authorised by the Board on 29 August 2024 and signed on its behalf by:
 

Mr J Holly
Director

   
     
 

SGS Gases Limited

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

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Poplar Farm
Eastertown
Lympsham
Somerset
BS24 0HY
UK

These financial statements were authorised for issue by the Board on 29 August 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest £.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The accounts have therefore been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

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.

Government grants

Government grants are recognised as income over the periods neccessary to match them with the related costs they are intended to compensate.

 

SGS Gases Limited

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

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

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 their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

2-5% Straight Line

Motor vehicles

25% reducing balance

Office equipment

25% straight line

Short Leasehold improvements

20% reducing balance

The company undertakes periodic refurbishments to certain classes of fixed assets to extend their useful economic lives and these refurbishment costs are taken to the profit and loss account in the year of expenditure. The depreciation policy adopted for the initial acquisition costs of these assets reflects the anticipated programme of periodic refurbishments.

 

SGS Gases Limited

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

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress 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. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

SGS Gases Limited

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

Leases

Leases in which substantially 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 profit or loss 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.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

A dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

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

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

Cylinder deposits

Deposits are taken at the time of supply of cylinders to customers and these are refundable when a cylinder is returned. In practice, the majority of returned cylinders are replaced with new cylinders and therefore the balance of cylinder deposits is disclosed in the accounts as due after more than one year.

A proportion of gas cylinders held by customers are unlikely to be returned. Therefore, 7.5% of the balance of deposits held is released to the profit and loss account each year.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year was 16 (2022 - 16).

 

SGS Gases Limited

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

4

Tangible assets

Short leasehold land and buildings
£

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

38,693

15,719,554

42,832

117,457

15,918,536

Additions

48,612

1,953,910

26,449

86,385

2,115,356

Disposals

-

(195,365)

-

-

(195,365)

At 31 December 2023

87,305

17,478,099

69,281

203,842

17,838,527

Depreciation

At 1 January 2023

10,853

3,232,196

40,354

57,249

3,340,652

Charge for the year

10,247

338,132

19,236

37,628

405,243

Eliminated on disposal

-

(364)

-

-

(364)

At 31 December 2023

21,100

3,569,964

59,590

94,877

3,745,531

Carrying amount

At 31 December 2023

66,205

13,908,135

9,691

108,965

14,092,996

At 31 December 2022

27,840

12,487,358

2,478

60,208

12,577,884

Included within the net book value of land and buildings above is £66,205 (2022 - £27,840) in respect of short leasehold land and buildings.
 

5

Stocks

2023
£

2022
£

Stocks

258,568

256,567

6

Debtors

Note

2023
£

2022
£

Trade debtors

 

1,347,383

1,076,217

Amounts owed by related parties

11

3,847,556

3,433,322

Other debtors

 

20,775

1,080

Prepayments

 

34,714

32,795

 

5,250,428

4,543,414

 

SGS Gases Limited

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

7

Creditors

Due within one year

Note

2023
£

2022
£

 

Loans and borrowings

9

32,410

25,541

Trade creditors

 

1,203,419

1,455,281

Amounts due to related parties

11

6,471

6,471

Social security and other taxes

 

150,995

142,190

Other creditors

 

2,109

2,736

Accruals

 

9,127

9,800

 

1,404,531

1,642,019

Due after one year

 

Loans and borrowings

9

111,448

38,153

Other non-current financial liabilities

 

16,117,861

14,196,487

 

16,229,309

14,234,640

Other non-current financial liabilities represents the total refundable deposits on cylinders supplied to customers less amounts taken to the profit and loss account. The accounting policy for cylinder deposits is shown in Note 2.

8

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary A of £0.01 each

8,250

83

8,250

83

Ordinary B of £0.01 each

1,750

18

1,750

18

10,000

100

10,000

100

 

SGS Gases Limited

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

9

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Hire purchase contracts

111,448

38,153

Current loans and borrowings

2023
£

2022
£

Bank overdrafts

4,971

17,081

Hire purchase contracts

27,439

8,460

32,410

25,541

The hire purchase contracts are secured against the assets fiannced.

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of guarantees not included in the balance sheet is £1,820,794 (2022 - £2,529,124). The company has provided a cross guarantee, secured by fixed and floating charges over its assets, against loans due by its parent company.

11

Related party transactions

Loans to related parties

2023

Parent
£

Total
£

At start of period

3,433,322

3,433,322

Advanced

1,913,540

1,913,540

Repaid

(1,499,306)

(1,499,306)

At end of period

3,847,556

3,847,556

2022

Parent
£

Key management
£

Total
£

At start of period

2,736,466

720

2,737,186

Advanced

1,465,183

-

1,465,183

Repaid

(768,327)

(720)

(769,047)

At end of period

3,433,322

-

3,433,322

 

SGS Gases Limited

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

Terms of loans to related parties

The loan due from the parent company is interest free and repayable on demand.
 

12

Parent and ultimate parent undertaking

The company's immediate parent is Argoco Holdings Ltd, incorporated in England and Wales.