IRIS Accounts Production v24.2.0.383 04660007 Board of Directors 31.12.23 1.1.23 31.12.23 31.12.23 The principal activities of the group in the year under review were land reclamation and remediation, site investigation and geoenvironmental consultancy, the provision of geotechnical and drilling services, demolition and asbestos removal and environmental services, human resource and information technology support services, renting and leasing of construction and civil engineering machinery and equipment and consultancy services. ++ The directors do not anticipate any significant future changes or developments. true true true false true true false false false false false false false false false false false true false Ordinary 0 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REGISTERED NUMBER: 04660007 (England and Wales)













Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2023

for

Sirius Engineering Group Ltd

Sirius Engineering Group Ltd (Registered number: 04660007)






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




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Consolidated Statement of Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 17


Sirius Engineering Group Ltd

Company Information
for the Year Ended 31 December 2023







DIRECTORS: P E Kane
M J Powell
S Robinson





SECRETARY: S Robinson





REGISTERED OFFICE: Russel House
Mill Road
Langley Moor
Durham
Co. Durham
DH7 8HJ





REGISTERED NUMBER: 04660007 (England and Wales)





AUDITORS: Anderson Barrowcliff Limited
Statutory Auditors
Chartered Accountants
3 Kingfisher Court
Bowesfield Park
Stockton on Tees
TS18 3EX

Sirius Engineering Group Ltd (Registered number: 04660007)

Group Strategic Report
for the Year Ended 31 December 2023

The directors present their strategic report of the company and the group for the year ended 31 December 2023.

REVIEW OF BUSINESS
Sirius Engineering Group is a design & build enabling works specialist delivering fully integrated ground engineering services primarily to the development sector. Operating across the UK from principal offices in Durham, Leeds, Warrington and Llanelli its services include Demolition, Remediation, Earthworks and Drilling contracting together with Geotechnical, Environmental and Planning Consultancy.

With a highly stable, repeat business client-base (particularly in the residential, commercial development, waste and renewable energy sectors), Sirius' unique combination of services provides confidence to build on even the most complex and challenging brownfield or greenfield sites.

The results for the year and the financial position of the group are set out on pages 9 to 35.

Key Performance Indicators:

The Group's KPIs for the year were:

2023 2022
£'000s £'000s

Turnover 39,215 52,033

Gross Profit % 24.2% 37.8%

The group financial position remains strong with £12.4m of net assets and £6.3m of cash.

After an unprecedented year in 2022, turnover in 2023 was challenging at £39m, this was reflective of a deterioration in macroeconomic conditions. Interest rates were at the highest levels since 2008 and a cost-of-living- crisis fuelled by rising food and energy prices impacted demand in the private residential sector. With this backdrop, the response of some of our developer clients was to preserve cash and delay starting new sites. The reduced demand and uncertainty of start dates was particularly pronounced in the second half of the year and into the start of 2024. As we head into the second half of 2024 there are definite signs of recovery, inflation is nearing target and interest rates are on a downward trend bringing a renewed confidence to the sector. The group is in a strong position to benefit from this upturn with a strong balance sheet, cutting edge plant fleet and an experienced, skilled workforce.

The UK remains chronically short of new housing stock and so the long-term fundamentals of our key market remain strong. The new government recently announced their intention for planning reform to speed up and streamline the planning process which, if successful, should see this demand realised over the coming years.

Whilst our key market remains housebuilding, part of our strategic plan is a commitment to leverage the experience of the group into adjacent markets to introduce further diversification into our portfolio.

Employee Ownership
2023 was a key milestone in the history of the group. To coincide with its 20th Anniversary, the group transitioned to becoming a 100% Employee-Owned business on the 17th of October. This allows for a long-term succession plan that secures the future of group into the hands of the people who have helped to build it over the years. Sirius Founders and Directors will continue to work in Executive and Non-Executive roles alongside the Senior Leadership team, helping the staff and business develop and build on the successful foundation formed over the last 20 years.

As part of the transition plan, the group was restructured during the year and all common;y owned trading businesses were consolidated under the ownership of Sirius Engineering Group Limited.


Sirius Engineering Group Ltd (Registered number: 04660007)

Group Strategic Report
for the Year Ended 31 December 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties facing the group and how they may affect its performance, position or future prospects are set out below:

Health, Safety and Environmental

The Group is subject to health & safety and environmental risks, implicit in the work undertaken. The Board and business unit leads promote a strong health and safety culture underpinned by procedures that are continually assessed to ensure best practice. Ongoing health & safety training is provided to employees and maintained. The group employs 4 full time qualified health and safety professionals and uses external specialist consultants where required to protect the health, safety and welfare of its employees and clients.

Financial Risk Management

In common with other businesses, the group aims to minimize financial risk wherever possible. The measures used include the preparation of budgets and forecasts, regular monitoring of actual performance against these forecasts and ensuring adequate sources of finance are in place to meet the requirement of the business.

The group's principal financial instruments comprise bank balances, hire purchase agreements, trade and subcontract creditors and trade debtors to raise funds for, and finance, the group's operations.

Credit Risk

Amounts receivable relate largely to applications on contracts across our stable customer base. The group has policies concerning credit offered to customers and regularly monitor amounts outstanding for both time and credit limit.

Liquidity Risk

Through negotiation with clients and suppliers we aim to manage our working capital and cash availability within certain limits. Forecasting is undertaken to ensure sufficient funds are available to meet amounts due.

ON BEHALF OF THE BOARD:





S Robinson - Director


16 September 2024

Sirius Engineering Group Ltd (Registered number: 04660007)

Report of the Directors
for the Year Ended 31 December 2023

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

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

FUTURE DEVELOPMENTS
The group continues to develop and expands it client base, area of operation and scope of services provided. The directors consider that the current workload and prospects are reasonable having regard to prevailing market conditions.

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

P E Kane
M J Powell
S Robinson

Other changes in directors holding office are as follows:

D Mill - resigned 17 October 2023
P J Taylor - resigned 17 October 2023

POLITICAL DONATIONS AND EXPENDITURE
No political donations were made by the group during the year.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Sirius Engineering Group Ltd (Registered number: 04660007)

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 group'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 group's auditors are aware of that information.

ON BEHALF OF THE BOARD:





S Robinson - Director


16 September 2024

Report of the Independent Auditors to the Members of
Sirius Engineering Group Ltd

Opinion
We have audited the financial statements of Sirius Engineering Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2023 and of the group's profit 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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
Sirius Engineering Group Ltd


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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 four, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

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.

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.

Based on our understanding of the industry, we have considered applicable laws and regulations which may be fundamental to the company's ability to operate or to avoid a material penalty, and we considered the extent to which non-compliance might have a material effect on the financial statements. We considered management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate manual journal entries to manipulate financial performance, management bias in significant accounting estimates and any significant one-off or unusual transactions.


Report of the Independent Auditors to the Members of
Sirius Engineering Group Ltd


We discussed among the audit engagement team the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

Audit procedures performed by the engagement team included:

- Enquiry of management and those charged with governance around actual and potential litigation and claims.
- Enquiry of entity staff to identify any instances of non-compliance with laws and regulations.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with
applicable laws and regulations
- Auditing the risk of management override of controls, including through testing journal entries and other
adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the
normal course of business.
- Challenging estimates and judgements made by management in their significant accounting estimates.
- Revenue recognition; agreeing a sample of revenue transactions to gain assurance over the occurrence and
accuracy of revenue and also to ensure revenue has been recognised in the correct period.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

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




Helen Wilson FCA (Senior Statutory Auditor)
for and on behalf of Anderson Barrowcliff Limited
Statutory Auditors
Chartered Accountants
3 Kingfisher Court
Bowesfield Park
Stockton on Tees
TS18 3EX

17 September 2024

Sirius Engineering Group Ltd (Registered number: 04660007)

Consolidated
Statement of Comprehensive
Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 2 39,215,229 52,033,410

Cost of sales 29,733,597 32,358,403
GROSS PROFIT 9,481,632 19,675,007

Administrative expenses 8,730,590 7,819,836
751,042 11,855,171

Other operating income - 37,937
OPERATING PROFIT 751,042 11,893,108

Interest receivable and similar income 165,185 26,518
916,227 11,919,626

Interest payable and similar expenses 4 356,170 237,143
PROFIT BEFORE TAXATION 5 560,057 11,682,483

Tax on profit 6 272,365 1,827,733
PROFIT FOR THE FINANCIAL YEAR 287,692 9,854,750

OTHER COMPREHENSIVE INCOME
Capital distribution (8,110,000 ) (126,178 )
Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

(8,110,000

)

(126,178

)
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(7,822,308

)

9,728,572

Profit attributable to:
Owners of the parent 299,544 9,642,414
Non-controlling interests (11,852 ) 212,336
287,692 9,854,750

Total comprehensive income attributable to:
Owners of the parent (7,810,456 ) 9,516,236
Non-controlling interests (11,852 ) 212,336
(7,822,308 ) 9,728,572

Sirius Engineering Group Ltd (Registered number: 04660007)

Consolidated Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 3,315,723 3,198,034
Tangible assets 9 8,437,653 9,423,396
Investments 10 - -
11,753,376 12,621,430

CURRENT ASSETS
Stocks 11 6,190 -
Debtors 12 13,091,442 6,789,334
Cash at bank and in hand 6,307,120 14,398,908
19,404,752 21,188,242
CREDITORS
Amounts falling due within one year 13 13,186,034 9,217,708
NET CURRENT ASSETS 6,218,718 11,970,534
TOTAL ASSETS LESS CURRENT
LIABILITIES

17,972,094

24,591,964

CREDITORS
Amounts falling due after more than one
year

14

(4,515,062

)

(4,807,759

)

PROVISIONS FOR LIABILITIES 18 (1,076,000 ) (1,069,100 )
NET ASSETS 12,381,032 18,715,105

CAPITAL AND RESERVES
Called up share capital 19 500 400
Share premium 20 - 22,752
Merger relief reserve 20 1,989,800 -
Retained earnings 20 10,442,863 18,331,463
SHAREHOLDERS' FUNDS 12,433,163 18,354,615

NON-CONTROLLING INTERESTS 21 (52,131 ) 360,490
TOTAL EQUITY 12,381,032 18,715,105

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2024 and were signed on its behalf by:





S Robinson - Director


Sirius Engineering Group Ltd (Registered number: 04660007)

Company Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 - -
Tangible assets 9 - -
Investments 10 10,474,593 7,207,250
10,474,593 7,207,250

CURRENT ASSETS
Debtors 12 870,720 1,189,017
Cash at bank - 4,000,000
870,720 5,189,017
CREDITORS
Amounts falling due within one year 13 9,338,196 11,589,507
NET CURRENT LIABILITIES (8,467,476 ) (6,400,490 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,007,117

806,760

CAPITAL AND RESERVES
Called up share capital 19 500 400
Merger relief reserve 20 1,989,800 -
Retained earnings 20 16,817 806,360
SHAREHOLDERS' FUNDS 2,007,117 806,760

Company's profit for the financial year 7,320,457 623,833

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2024 and were signed on its behalf by:





S Robinson - Director


Sirius Engineering Group Ltd (Registered number: 04660007)

Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Share
capital earnings premium
£    £    £   
Balance at 1 January 2022 400 8,815,227 22,752

Changes in equity
Total comprehensive income - 9,516,236 -
Balance at 31 December 2022 400 18,331,463 22,752

Changes in equity
Acquisition of NCI - (78,144 ) (22,752 )
Movement in share capital 100 - -
Total comprehensive income - (7,810,456 ) -
500 10,442,863 -
Acquisition of non-controlling
interest

-

-

-
Balance at 31 December 2023 500 10,442,863 -
Merger
relief Non-controlling Total
reserve Total interests equity
£    £    £    £   
Balance at 1 January 2022 - 8,838,379 148,154 8,986,533

Changes in equity
Total comprehensive income - 9,516,236 212,336 9,728,572
Balance at 31 December 2022 - 18,354,615 360,490 18,715,105

Changes in equity
Acquisition of subsidiary 1,989,800 1,989,800 - 1,989,800
Acquisition of NCI - (100,896 ) 78,144 (22,752 )
Movement in share capital - 100 - 100
Total comprehensive income - (7,810,456 ) (11,852 ) (7,822,308 )
1,989,800 12,433,163 426,782 12,859,945
Acquisition of non-controlling
interest

-

-

(478,913

)

(478,913

)
Balance at 31 December 2023 1,989,800 12,433,163 (52,131 ) 12,381,032

Sirius Engineering Group Ltd (Registered number: 04660007)

Company Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up Merger
share Retained relief Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 400 308,705 - 309,105

Changes in equity
Total comprehensive income - 497,655 - 497,655
Balance at 31 December 2022 400 806,360 - 806,760

Changes in equity
Acquisition of subsidiary - - 1,989,800 1,989,800
Movement in share capital 100 - - 100
Total comprehensive income - (789,543 ) - (789,543 )
Balance at 31 December 2023 500 16,817 1,989,800 2,007,117

Sirius Engineering Group Ltd (Registered number: 04660007)

Consolidated Cash Flow Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,510,394 12,509,793
Interest paid (124,951 ) (56,799 )
Interest element of hire purchase payments
paid

(231,219

)

(180,344

)
Tax paid (1,069,978 ) (1,241,914 )
Net cash from operating activities 1,084,246 11,030,736

Cash flows from investing activities
Purchase of tangible fixed assets (531,312 ) (4,025,950 )
Sale of tangible fixed assets 64,382 565,624
Net cash acquired with subsidiary 787,384 -
Interest received 165,185 26,518
Capital distribution (8,110,000 ) -
Net cash from investing activities (7,624,361 ) (3,433,808 )

Cash flows from financing activities
New loans in year 1,629,635 -
Capital repayments in year (3,319,477 ) 867,018
Amount introduced by directors 18,981 -
Amount withdrawn by directors (126 ) (5,809,631 )
Movement in related party borrowings (723,642 ) 239,851
Net cash from financing activities (2,394,629 ) (4,702,762 )

(Decrease)/increase in cash and cash equivalents (8,934,744 ) 2,894,166
Cash and cash equivalents at beginning of
year

2

13,855,581

10,961,415

Cash and cash equivalents at end of year 2 4,920,837 13,855,581

Sirius Engineering Group Ltd (Registered number: 04660007)

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

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 560,057 11,682,483
Depreciation charges 2,740,561 2,624,822
Profit on disposal of fixed assets (62,795 ) (261,542 )
Finance costs 356,170 237,143
Finance income (165,185 ) (26,518 )
3,428,808 14,256,388
Increase in stocks (6,190 ) -
Increase in trade and other debtors (388,615 ) (539,886 )
Decrease in trade and other creditors (523,609 ) (1,206,709 )
Cash generated from operations 2,510,394 12,509,793

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 6,307,120 14,398,908
Bank overdrafts (1,386,283 ) (543,327 )
4,920,837 13,855,581
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 14,398,908 11,394,400
Bank overdrafts (543,327 ) (432,985 )
13,855,581 10,961,415


Sirius Engineering Group Ltd (Registered number: 04660007)

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

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

Acquisition
of
subsidiary
At 1.1.23 Cash flow undertaking At 31.12.23
£    £    £    £   
Net cash
Cash at bank
and in hand 14,398,908 (8,879,172 ) 787,384 6,307,120
Bank overdrafts (543,327 ) (842,956 ) - (1,386,283 )
13,855,581 (9,722,128 ) 787,384 4,920,837
Debt
Finance leases (7,759,216 ) 2,376,736 - (5,382,480 )
Debts falling due
within 1 year - (992,591 ) 333,333 (659,258 )
Debts falling due
after 1 year - (1,609,619 ) 250,000 (1,359,619 )
(7,759,216 ) (225,474 ) 583,333 (7,401,357 )
Total 6,096,365 (9,947,602 ) 1,370,717 (2,480,520 )

4. MAJOR NON-CASH TRANSACTIONS

New hire purchase agreements with a total value at inception of £748,650 (2022 : £3,907,498) were entered into during the year.

Sirius Engineering Group Ltd (Registered number: 04660007)

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

1. ACCOUNTING POLICIES

General information and basis of preparation
Sirius Engineering Group Ltd is a private company, limited by shares, incorporated in the United Kingdom. The address of the registered office is given in the company information on page 1 of these financial statements. The nature of the group's operations and its principal activities are set out in the Strategic Report on page 2.

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and the Republic of Ireland" (FRS102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention. The financial statements are prepared in sterling which is the functional currency of the group and rounded to the nearest pound.

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.

Basis of consolidation
The consolidated financial statements incorporate the financial statements of the company and its subsidiary companies. The results of the subsidiaries acquired are consolidated for the periods from the date on which control passed and are accounted for under the purchase method.

As permitted by section 408 of the Companies Act 2006, the profit and loss account of the parent company is not presented as part of these financial statements.

Turnover
Turnover is stated net of VAT and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover for the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a contract has only been partially completed at the balance sheet date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the balance sheet date.

Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. Stage of completion is measured by reference to the right to consideration in respect of performance of contractual obligations.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Goodwill
Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any excess of the fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired, is capitalised and written off on a straight line basis over its useful economic life, which is ten years. Provision is made for any impairment.

Negative goodwill is similarly included in the balance sheet and is credited to the profit and loss in the periods expected to benefit, which is ten years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 20% on reducing balance, 20% on cost and 15% on cost
Fixtures and fittings - 33% on cost, 25% on cost and 20% on cost
Motor vehicles - 33% on cost and 25% on cost
Computer equipment - 50% on cost, 33% on cost and 25% on cost

Sirius Engineering Group Ltd (Registered number: 04660007)

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

1. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Taxation
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

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

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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

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

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

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

Amounts recoverable on contracts
Amounts recoverable on contracts are stated at cost plus attributable profit to the extent that such profit is reasonably certain and after making provision for any foreseeable losses in completing contracts, less payments on account received.

Sirius Engineering Group Ltd (Registered number: 04660007)

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

1. ACCOUNTING POLICIES - continued

Non-controlling interests
Amounts attributable to non-controlling interests are calculated on the basis of their shareholdings in subsidiaries at the balance sheet date.

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.

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.

Judgements and key sources of estimation uncertainty
In the application of the groups accounting policies, which are described above, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The judgement (apart from those involving estimations) that management has made in the process of applying the groups accounting policies and that has the most significant effect on the amounts recognised in the financial statements is the stage of completion of contracts and revenue recognition.

The group undertakes a number of long term construction contracts. Accounting for these contracts requires a number of assumptions and estimates to be made in relation to the stage of completion and expected outcome of the contract. Each contract has an expected value and is costed appropriately to give an expected margin. Any future changes to estimates of contract revenue or contract costs resulting in a change to the estimated loss or profit of the contract is regularly reviewed by management to ensure accurate reporting of revenue recognition.

2. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Land reclamation & remediation 18,483,272 38,389,624
Site investigation 2,387,356 2,687,045
Drilling services 7,758,147 9,560,100
Plant hire 47,956 413,040
Civil engineering 8,246,373 -
Environmental consultancy 1,465,285 -
Consultancy services 116,371 983,601
Urban planning and landscape 710,469 -
39,215,229 52,033,410

Sirius Engineering Group Ltd (Registered number: 04660007)

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

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 10,108,111 9,000,741
Social security costs 1,018,467 1,075,390
Other pension costs 836,599 528,118
11,963,177 10,604,249

The average number of employees during the year was as follows:
2023 2022

Directors 4 4
Engineers and site operatives 197 160
Administration 21 30
222 194

The above figures and employee numbers exclude the costs and numbers of employees that have been transferred in the year to related party companies. Total transfers from the group amounted to £382,737 (2022 : £501,416). This equates to a decrease in employee numbers of 6 in the year (2022 : 17).

2023 2022
£    £   
Directors' remuneration 783,433 875,385
Directors' pension contributions to money purchase schemes 56,667 40,000

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 250,000 256,706

4. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 6,423 -
Bank loan interest 12,803 -
Other interest 105,725 56,799
Hire purchase 231,219 180,344
356,170 237,143

Sirius Engineering Group Ltd (Registered number: 04660007)

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

5. PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

2023 2022
£    £   
Plant and equipment hire 2,837,276 3,201,788
Other operating leases 33,806 27,243
Depreciation - owned assets 308,763 146,774
Depreciation - assets on hire purchase contracts 1,955,883 2,031,814
Profit on disposal of fixed assets (62,795 ) (261,542 )
Goodwill amortisation 475,917 446,237
Auditors remuneration 7,904 9,600
Remuneration for the audit of
accounts of subsidiaries 77,084 47,000
Foreign exchange differences 415 -
Land & buildings - leased 121,500 120,000

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 270,896 1,728,718
Under/(over) provision of tax in prior years (5,431 ) (346,085 )
Total current tax 265,465 1,382,633

Deferred taxation 6,900 445,100
Tax on profit 272,365 1,827,733

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

2023 2022
£    £   
Profit before tax 560,057 11,682,483
Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2022 - 19 %)

140,014

2,219,672

Effects of:
Expenses not deductible for tax purposes 547,765 29,154
Capital allowances in excess of depreciation (399,348 ) (183,559 )
Utilisation of tax losses (21,356 ) (124,063 )
Adjustments to tax charge in respect of previous periods (5,432 ) (346,085 )
Deferred taxation 6,900 445,100
Other 3,822 (3,061 )
R&D deduction - (209,425 )
Total tax charge 272,365 1,827,733

Sirius Engineering Group Ltd (Registered number: 04660007)

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

6. TAXATION - continued

Tax effects relating to effects of other comprehensive income

2023
Gross Tax Net
£    £    £   
Capital distribution (8,110,000 ) - (8,110,000 )

2022
Gross Tax Net
£    £    £   
Capital distribution (126,178 ) - (126,178 )

7. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


8. INTANGIBLE FIXED ASSETS

Group
Negative
Goodwill goodwill Totals
£    £    £   
COST
At 1 January 2023 4,676,323 (61,076 ) 4,615,247
Additions 593,606 - 593,606
Disposals - 61,076 61,076
At 31 December 2023 5,269,929 - 5,269,929
AMORTISATION
At 1 January 2023 1,478,289 (61,076 ) 1,417,213
Amortisation for year 475,917 - 475,917
Eliminated on disposal - 61,076 61,076
At 31 December 2023 1,954,206 - 1,954,206
NET BOOK VALUE
At 31 December 2023 3,315,723 - 3,315,723
At 31 December 2022 3,198,034 - 3,198,034

Sirius Engineering Group Ltd (Registered number: 04660007)

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

9. TANGIBLE FIXED ASSETS

Group
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 January 2023 13,753,853 146,807 833,940 270,587 15,005,187
Additions 523,050 - 760,220 - 1,283,270
Disposals (5,000 ) 1,019 (239,044 ) 357 (242,668 )
Reclassification/transfer 155,537 - - - 155,537
Acquisition of subsidiary - - - 527 527
At 31 December 2023 14,427,440 147,826 1,355,116 271,471 16,201,853
DEPRECIATION
At 1 January 2023 4,769,051 131,627 461,405 219,708 5,581,791
Charge for year 1,985,100 3,006 246,035 30,505 2,264,646
Eliminated on disposal - 1,022 (237,465 ) 357 (236,086 )
Reclassification/transfer 153,849 - - - 153,849
At 31 December 2023 6,908,000 135,655 469,975 250,570 7,764,200
NET BOOK VALUE
At 31 December 2023 7,519,440 12,171 885,141 20,901 8,437,653
At 31 December 2022 8,984,802 15,180 372,535 50,879 9,423,396

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor Computer
machinery vehicles equipment Totals
£    £    £    £   
COST
At 1 January 2023 11,930,951 310,861 23,503 12,265,315
Additions 425,740 760,221 - 1,185,961
Disposals - 35,795 - 35,795
Reclassification/transfer (1,078,928 ) (35,611 ) (23,503 ) (1,138,042 )
At 31 December 2023 11,277,763 1,071,266 - 12,349,029
DEPRECIATION
At 1 January 2023 3,020,461 18,266 21,717 3,060,444
Charge for year 1,744,387 211,496 - 1,955,883
Eliminated on disposal - 30,573 - 30,573
Transfer to ownership (435,948 ) (15,602 ) (21,717 ) (473,267 )
At 31 December 2023 4,328,900 244,733 - 4,573,633
NET BOOK VALUE
At 31 December 2023 6,948,863 826,533 - 7,775,396
At 31 December 2022 8,910,490 292,595 1,786 9,204,871

Sirius Engineering Group Ltd (Registered number: 04660007)

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

9. TANGIBLE FIXED ASSETS - continued

Company
Computer
equipment
£   
COST
At 1 January 2023
and 31 December 2023 532
DEPRECIATION
At 1 January 2023
and 31 December 2023 532
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 -

10. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023 7,207,250
Additions 3,267,443
Disposals (100 )
At 31 December 2023 10,474,593
NET BOOK VALUE
At 31 December 2023 10,474,593
At 31 December 2022 7,207,250

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Sirius Geotechnical Ltd
Registered office: Russel House, Mill Road, Langley Moor, Durham DH7 8HJ
Nature of business: Site investigation and geotechnical consultancy
%
Class of shares: holding
Ordinary 80.00
2023 2022
£    £   
Aggregate capital and reserves (260,851 ) (264,620 )
Profit/(loss) for the year 3,969 (105,987 )

Sirius Engineering Group Ltd (Registered number: 04660007)

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

10. FIXED ASSET INVESTMENTS - continued

Sirius Remediation Limited
Registered office: Russel House, Mill Road, Langley Moor, Durham DH7 8HJ
Nature of business: Land reclamation and remediation
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 5,461,276 10,026,650
(Loss)/profit for the year (565,374 ) 4,639,975

On 31 July 2023 Sirius Engineering Group Limited acquired the 5% non controlling interest to make Sirius Remediation Limited a 100% subsidiary from that date.

Sirius Drilling Ltd
Registered office: Russel House, Mill Road, Langley Moor, Durham DH7 8HJ
Nature of business: Drilling Services
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 4,670,039 5,251,051
Profit for the year 1,418,988 24,736,284

Sirius Demolition Ltd
Registered office: Russel House, Mill Road, Langley Moor, Durham DH7 8HJ
Nature of business: Asbestos removal and environmental services
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 43,670 634,559
Profit for the year 9,111 33,083

On 31 July 2023 Sirius Engineering Group Limited acquired the 5% non controlling interest to make Sirius Demolition Limited a 100% subsidiary from that date.

Sirius Plant Limited
Registered office: Russel House, Mill Road, Langley Moor, Durham DH7 8HJ
Nature of business: Renting and leasing of machinery and equipment
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 5,100,075 6,268,494
Profit for the year 231,581 2,673,799

Sirius Engineering Group Ltd (Registered number: 04660007)

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

10. FIXED ASSET INVESTMENTS - continued

Sirius Civil Engineering Limited
Registered office: Russel House, Mill Road, Langley Moor, Durham DH7 8HJ
Nature of business: Civil Engineering
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 1,749,980 1,662,383
Profit/(loss) for the year 87,597 (548,881 )

On 7 July 2023 Sirius Engineering Group Limited acquired 100% of the share capital of Sirius Civil Engineering Limited.

Sirius Planning Limited
Registered office: Russel House, Mill Road, Langley Moor, Durham DH7 8HJ
Nature of business: The planning of engineering projects
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 138,141 75,214
Profit for the year 92,927 81,103

On 7 July 2023 Sirius Engineering Group Limited acquired 100% of the share capital of Sirius Planning Limited.

Sirius Planning Limited is exempt from the requirements of the Companies Act 2006 relating to the audit of its individual accounts by virtue of section 479A.

Sirius Environmental Limited
Registered office: Russel House, Mill Road, Langley Moor, Durham DH7 8HJ
Nature of business: Planning, design and engineering consultancy
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 630,256 368,680
Profit for the year 261,576 50,977

On 7 July 2023 Sirius Engineering Group Limited acquired 100% of the share capital of Sirius Environmental Limited.

Sirius Environmental Limited is exempt from the requirements of the Companies Act 2006 relating to the audit of its individual accounts by virtue of section 479A.


Sirius Engineering Group Ltd (Registered number: 04660007)

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

10. FIXED ASSET INVESTMENTS - continued


ACQUISITION OF SUBSIDIARY UNDERTAKINGS
Sirius Civil Engineering Limited
On 7 July 2023, Sirius Engineering Group Ltd issued 100 ordinary shares to the shareholders of Sirius Civil Engineering Limited in exchange for their holdings of the entire issued share capital of Sirius Civil Engineering Limited. Sirius Civil Engineering Limited therefore became a 100% owned subsidiary of Sirius Engineering Group Ltd with effect from this date. The above transaction was accounted for using the purchase method of accounting.

The fair value of the consideration was £1,989,800 based on a share valuation undertaken at the date of acquisition. In accordance with Sections 612 to 616 of the Companies Act 2006, the company has taken no account of any premium on the shares issued and has recorded the cost of the investment at the fair value of the shares issued in the company accounts of Sirius Engineering Group Limited. The resulting difference arising has been credited to a merger relief reserve.

Sirius Civil Engineering Limited made a profit after taxation of £87,597 in the year ended 31 December 2023 of which a loss of £78,877 arose in the period from 1 January 2023 to the date of acquisition. The summarised profit and loss account for Sirius Civil Engineering Limited for the period 7 July 2023 to 31 December 2023 is as follows:

£
Turnover 8,318,968
Operating profit 193,803
Profit before taxation 174,527
Taxation 8,053
Profit for the period from acquisition date to 31 December 2023 166,474

The following table sets out the book values of the identifiable assets and liabilities acquired and their fair value to the group:


Book value
£
Debtors 5,327,095
Cash 630,575
Total assets 5,957,670
Total liabilities (4,374,164 )
Net assets 1,583,506
Cost of acquisition (9,950 )
Goodwill arising on acquisition - to be written off over 10 years 416,244
1,989,800
Discharged by:
Fair value of shares 1,989,800

Net cash inflows in respect of the acquisition comprised:
£
Cash at bank and in hand acquired 630,575


Sirius Engineering Group Ltd (Registered number: 04660007)

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

10. FIXED ASSET INVESTMENTS - continued

Sirius Planning Limited
On 7 July 2023, Sirius Engineering Group Ltd acquired 100% of the shares in Sirius Planning Limited. Sirius Planning Limited therefore became a 100% owned subsidiary of Sirius Engineering Group Ltd with effect from this date. The above transaction was accounted for using the purchase method of accounting.

The consideration was £182,585 based on a share valuation undertaken at the date of acquisition.

Sirius Planning Limited made a profit after taxation of £62,927 in the year ended 31 December 2023 of which £16,301 arose in the period from 1 January 2023 to the date of acquisition. The summarised profit and loss account for Sirius Planning Limited for the period 7 July 2023 to 31 December 2023 is as follows:

£
Turnover 712,555
Operating profit 52,966
Profit before taxation 51,657
Taxation 5,032
Profit for the period from acquisition date to 31 December 2023 46,625

The following table sets out the book values of the identifiable assets and liabilities acquired and their fair value to the group:


Book value
£
Debtors 368,229
Cash 85,895
Total assets 454,124
Total liabilities (362,608 )
Net assets 91,516
Cost of acquisition (915 )
Goodwill arising on acquisition - to be written off over 10 years 91,984
182,585
Discharged by:
Cash/loan 182,585

Net cash inflows in respect of the acquisition comprised:
£
Cash at bank and in hand acquired 85,895

Sirius Environmental Limited
On 7 July 2023, Sirius Engineering Group Ltd acquired 100% of the shares in Sirius Environmental Limited. Sirius Environmental Limited therefore became a 100% owned subsidiary of Sirius Engineering Group Ltd with effect from this date. The above transaction was accounted for using the purchase method of accounting.

The consideration was £606,834 based on a share valuation undertaken at the date of acquisition.


Sirius Engineering Group Ltd (Registered number: 04660007)

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

10. FIXED ASSET INVESTMENTS - continued

Sirius Environmental Limited made a profit after taxation of £261,576 in the year ended 31 December 2023 of which £155,811 arose in the period from 1 January 2023 to the date of acquisition. The summarised profit and loss account for Sirius Environmental Limited for the period 7 July 2023 to 31 December 2023 is as follows:

£
Turnover 1,546,423
Operating profit 107,726
Profit before taxation 104,362
Taxation (1,403 )
Profit for the period from acquisition date to 31 December 2023 105,765

The following table sets out the book values of the identifiable assets and liabilities acquired and their fair value to the group:


Book value
£
Tangible fixed assets 526
Debtors 864,056
Cash 84,814
Total assets 949,396
Total liabilities (424,905 )
Net assets 524,491
Cost of acquisition (3,035 )
Goodwill arising on acquisition - to be written off over 10 years 85,378
606,834
Discharged by:
Cash/loans 606,834

Net cash inflows in respect of the acquisition comprised:
£
Cash at bank and in hand acquired 84,814

11. STOCKS

Group
2023 2022
£    £   
Stocks 6,190 -

Sirius Engineering Group Ltd (Registered number: 04660007)

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

12. DEBTORS

Group Company
2023 2022 2023 2022
£    £    £    £   
Amounts falling due within one year:
Trade debtors 1,402,719 712,471 - -
Amounts owed by group undertakings - - 257,954 136,106
Amounts owed by related parties 228,952 658,497 117 482,096
Other debtors 513,855 848,047 472,881 514,836
Amounts recoverable on
contracts 9,420,032 3,732,280 - -
Directors' current accounts 1,688 20,543 1,688 20,543
VAT 440,927 363,395 28,258 -
Prepayments 353,531 286,548 109,822 35,436
12,361,704 6,621,781 870,720 1,189,017

Amounts falling due after more than one year:
Amounts recoverable on contract 729,738 167,553 - -

Aggregate amounts 13,091,442 6,789,334 870,720 1,189,017

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 15) 1,719,616 543,327 1,024,591 159,442
Other loans (see note 15) 325,925 - - -
Hire purchase contracts (see note 16) 2,227,037 2,951,457 - -
Payments on account 723,206 594,527 - -
Trade creditors 4,389,549 2,389,370 117,655 37,745
Amounts owed to group undertakings - - 6,604,754 10,613,131
Amounts owed to related parties 709,107 - 710,644 -
Taxation 125,075 897,219 - 90,500
Social security and other taxes 572,274 477,696 57,695 87,300
VAT - - - 11,070
Other creditors 1,294,748 769,788 811,217 557,677
Accruals & deferred income 1,099,497 594,324 11,640 32,642
13,186,034 9,217,708 9,338,196 11,589,507

Sirius Engineering Group Ltd (Registered number: 04660007)

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

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group
2023 2022
£    £   
Bank loans (see note 15) 83,334 -
Other loans (see note 15) 1,276,285 -
Hire purchase contracts (see note 16) 3,155,443 4,807,759
4,515,062 4,807,759

15. LOANS

An analysis of the maturity of loans is given below:

Group Company
2023 2022 2023 2022
£    £    £    £   
Amounts falling due within one year or on demand:
Bank overdrafts 1,386,283 543,327 1,024,591 159,442
Bank loans - less than 1 yr 333,333 - - -
Other loans - less than 1 yr 325,925 - - -
2,045,541 543,327 1,024,591 159,442
Amounts falling due between one and two years:
Bank loans - 1-2 years 83,334 - - -
Other loans - 1-2 years 325,925 - - -
409,259 - - -
Amounts falling due between two and five years:
Other loans - 2-5 years 950,360 - - -

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 2,227,037 2,951,457
Between one and five years 3,155,443 4,807,759
5,382,480 7,759,216

Sirius Engineering Group Ltd (Registered number: 04660007)

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

16. LEASING AGREEMENTS - continued

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 360,084 341,724
Between one and five years 751,872 658,091
In more than five years 691,167 807,167
1,803,123 1,806,982

Company
Non-cancellable operating leases
2023 2022
£    £   
Within one year 12,321 6,806
Between one and five years 18,187 13,045
30,508 19,851

17. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
£    £   
Bank overdrafts 1,386,283 543,327
Hire purchase contracts 5,382,480 7,759,216
6,768,763 8,302,543

Group banking facilities are secured by a debenture over the assets of the company and its subsidiaries.

Group hire purchase contracts are secured by the assets financed by those agreements.

18. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred taxation 1,076,000 1,069,100

Sirius Engineering Group Ltd (Registered number: 04660007)

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

18. PROVISIONS FOR LIABILITIES - continued

Group
Deferred
tax
£   
Balance at 1 January 2023 1,069,100
Charge to Statement of Comprehensive Income during year 6,900
Balance at 31 December 2023 1,076,000

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
500 Ordinary £1 500 400
(2022 - 400 )

See acquisition of subsidiary note for details for share for share exchange relating to the acquisition of Sirius Civil Engineering Limited.

20. RESERVES

Group
Merger
Retained Share relief
earnings premium reserve Totals
£    £    £    £   

At 1 January 2023 18,331,463 22,752 - 18,354,215
Profit for the year 299,544 299,544
Capital distribution (8,110,000 ) - - (8,110,000 )
Acquisition of subsidiary - - 1,989,800 1,989,800
Transfer to NCI (78,144 ) (22,752 ) - (100,896 )
At 31 December 2023 10,442,863 - 1,989,800 12,432,663

Company
Merger
Retained relief
earnings reserve Totals
£    £    £   

At 1 January 2023 806,360 - 806,360
Profit for the year 7,320,457 7,320,457
Capital distribution (8,110,000 ) - (8,110,000 )
Acquisition of subsidiary - 1,989,800 1,989,800
At 31 December 2023 16,817 1,989,800 2,006,617

Sirius Engineering Group Ltd (Registered number: 04660007)

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

20. RESERVES - continued

a) Retained earnings represents cumulative profits and losses net of dividends and other adjustments.

b) Share premium represents the premium arising on the issue of shares net of issue costs.

c) Merger relief reserve arises on the share for share exchange and is a Companies Act relief from recording share premium.

21. NON-CONTROLLING INTERESTS

£
At 1 January 2023 360,490
Profit on ordinary activities after taxation (11,852 )
Transfer to retained earnings 78,144
Acquisition of non controlling interest (478,913 )
At 31 December 2023 (52,131 )

22. PENSION COMMITMENTS

The group operates a defined contribution scheme. Contributions are charged to the profit and loss as they fall due. The charge for the year was £832,484 (2022: £528,117). There were pension contributions of £126,010 outstanding at the year end (2022: £173,400).

23. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

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

2023 2022
£    £   
M J Powell
Balance outstanding at start of year 743 (1,475,205 )
Amounts advanced 3,986 1,478,055
Amounts repaid (3,860 ) (2,107 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 869 743

P E Kane
Balance outstanding at start of year 13,812 (1,451,725 )
Amounts advanced 9,357 1,472,114
Amounts repaid (22,350 ) (6,577 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 819 13,812

Sirius Engineering Group Ltd (Registered number: 04660007)

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

24. RELATED PARTY DISCLOSURES

Other Related Parties - Common Control

During the year Sirius Engineering Group Ltd provided goods and services to related parties totalling £726,330 (2022 : £3,671,375) and in return received goods and services of £117,582 (2022 : £433,970).

Wage costs totalling £382,737 (2022: £501,416) were recharged to related parties and Sirius Engineering Group Ltd also paid rent totalling £120,000 (2022: £121,500) to a related party.

As at 31 December 2023 the net sum of £480,153 was due to related parties (2022: due from related parties £658,497).

The total remuneration for key management personnel for the year totalled £915,385 (2021 : £1,222,168) being remuneration disclosed in note 3.

25. ULTIMATE CONTROLLING PARTY

From 17 October 2023 the group is controlled by SEGL Group Limited as trustee of The Sirius Group Employee Ownership Trust.