Company registration number 10111024 (England and Wales)
STM 360 LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
STM 360 LIMITED
COMPANY INFORMATION
Directors
Mr G Taylor
Mr R P Marshall
Mr S Lazenby
Mr A R Watson
Mr J A Green
Mr J O Rawson
Secretary
Mr S Lazenby
Company number
10111024
Registered office
Unit 4
Marrtree Business Park
Thunderhead Ridge
Castleford
WF10 4UA
Auditor
Azets Audit Services Limited
12 King Street
Leeds
LS1 2HL
STM 360 LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 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 - 23
STM 360 LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The directors present the strategic report for the year ended 31 May 2024.

Fair Review of the Business

The company (“STM 360”) provides an integrated and co-ordinated approach to construction, property, and maintenance solutions in both the public and private sectors. The business offers a full range of services to support every stage of the property building cycle, including design and build, refurbishment, conversions, fit outs, and maintenance.

 

The company maintains strong trading relationships and a diverse customer base from various sectors including education, healthcare, and housing.

 

Our people are pivotal to the success of the business, with their professionalism and enthusiasm valued by both management and customers. An Employee Ownership Trust has ultimate ownership of STM 360, promoting long-term stability and ensuring that staff are the beneficiaries of future profit.

Performance during the year

By focussing on excellent delivery to its target customer base, STM 360 has maintained consistent sales levels. Management remains focussed on ensuring that the company undertakes projects that complement its operational capabilities, thereby exceeding customer expectations and supporting the financial performance of STM 360.

 

The directors remain committed to investing in the long-term sustainability of the business, with continued recruitment including apprenticeships.

 

Despite the volatility in the UK economy caused by national and international issues, the strategy adopted by the board continues to build the resilience of the company with increasing cash reserves and net assets.

Key performance indicators

The company directors monitor sales and gross profit percentage when assessing the performance. A summary of these KPIs is below:

 

            2024        2023

            

Sales (£’000)        13,031        13,338

 

Gross Profit (%)        23%        25%

 

Performance at the year end

To promote the continued strong financial and operational performance, staff receive a share of the company’s profits though bonuses. Management firmly believe that staff focus and buy-in will help further leverage STM 360’s capabilities and help grow the company’s already strong orderbook.

 

Future developments

Our strategy remains to capitalise on the company’s widely recognised strengths and expertise in building services into the vital and topical market sectors, which include education, healthcare, and housing. We will achieve this by continuing to improve on operational efficiencies and remaining resolutely focussed on these market sectors.

Principal risks and uncertainties

Considerable economic and cost uncertainty exists, due to various national and geopolitical issues. However, due to the company’s strong relationships, it has committed sales for the 2025 reporting period totalling £11,989k. The strong orderbook, along with healthy cash reserves, provide the directors confidence that the company will continue in operational existence for the foreseeable future.

 

In addition to the macro pressures, the business is subject to the risks associated with a construction company, including material price increase, resource availability, health and safety, and cashflow. The board meets regularly to discuss and proactively manage these risks.

STM 360 LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -

On behalf of the board

Mr R P Marshall
Director
8 November 2024
STM 360 LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 3 -

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

Principal activities

The principal activity of the company continued to be that of the provision of an integrated and co-ordinated approach to construction, property and maintenance solutions in both the public and private sectors. The business offers a full range of services to support every stage of the property building cycle, including design and build, refurbishment, conversions, fit-outs and maintenance.

Results and dividends

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

Ordinary dividends were paid amounting to £1,510,000 (2023 - £1,046,000). The directors do not recommend payment of a further 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 G Taylor
Mr R P Marshall
Mr S Lazenby
Mr A R Watson
Mr J A Green
Mr J O Rawson
Political donations

Our goal is to contribute to the well-being and the economic, social, and sustainable development of the communities in which we operate. We achieve this by employing local people and using local suppliers. Additionally, we run regular fund-raising activities for our nominated charities, The Give a Duck Foundation and Teenage Cancer Trust.

 

During the year the company made charitable donations of £702 (2023 - £510).

Financial instruments

The company does not actively use complex financial instruments as part of its financial risk management. It is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through credit control procedures. The nature of its financial instruments means that they are not subject to price risk or liquidity risk. The directors do not consider these risks to be material to an assessment of its financial position.

Going Concern

Considerable economic and cost uncertainty exists, due to various national and geopolitical issues. However, due to the company’s strong relationships, it has committed sales for the 2025 reporting period totalling £11,989k. The strong orderbook, along with healthy cash reserves, provide the directors confidence that the company will continue in operational existence for the foreseeable future.

Post reporting date events

There have been no significant events affecting the company since the year end.

Auditor

The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

STM 360 LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 4 -
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 R P Marshall
Director
8 November 2024
STM 360 LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 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.

STM 360 LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STM 360 LIMITED
- 6 -
Opinion

We have audited the financial statements of STM 360 Limited (the 'company') for the year ended 31 May 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:

STM 360 LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STM 360 LIMITED
- 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.

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STM 360 LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STM 360 LIMITED
- 8 -
Extent to which the audit was capable of identifying irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

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. This 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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Matthew Grant
Senior Statutory Auditor
For and on behalf of Azets Audit Services Limited
15 November 2024
Chartered Accountants
Statutory Auditor
12 King Street
Leeds
LS1 2HL
STM 360 LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
13,030,527
13,337,900
Cost of sales
(9,989,080)
(9,955,669)
Gross profit
3,041,447
3,382,231
Administrative expenses
(1,741,915)
(1,466,407)
Operating profit
4
1,299,532
1,915,824
Interest receivable and similar income
8
65,825
-
0
Interest payable and similar expenses
9
-
0
(2,191)
Profit before taxation
1,365,357
1,913,633
Tax on profit
10
(443,681)
(400,352)
Profit for the financial year
921,676
1,513,281

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

 

There was no other comprehensive income during the year.

The notes on pages 12 to 23 form part of these financial statements.

STM 360 LIMITED
BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
-
0
108,333
Tangible assets
13
20,161
41,141
20,161
149,474
Current assets
Stocks
14
410,738
296,103
Debtors
15
1,911,854
1,975,404
Cash at bank and in hand
3,875,359
3,396,860
6,197,951
5,668,367
Creditors: amounts falling due within one year
16
(4,300,121)
(3,582,264)
Net current assets
1,897,830
2,086,103
Net assets
1,917,991
2,235,577
Capital and reserves
Called up share capital
19
20
20
Other reserves
20
270,738
-
0
Profit and loss reserves
1,647,233
2,235,557
Total equity
1,917,991
2,235,577
The financial statements were approved by the board of directors and authorised for issue on 8 November 2024 and are signed on its behalf by:
Mr R P Marshall
Director
Company Registration No. 10111024
STM 360 LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
Share capital
Capital contribution reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 June 2022
20
-
1,768,276
1,768,296
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
-
1,513,281
1,513,281
Dividends
11
-
-
(1,046,000)
(1,046,000)
Balance at 31 May 2023
20
-
2,235,557
2,235,577
Year ended 31 May 2024:
Profit and total comprehensive income for the year
-
-
921,676
921,676
Dividends
11
-
-
(1,510,000)
(1,510,000)
Capital contribution
-
270,738
-
270,738
Balance at 31 May 2024
20
270,738
1,647,233
1,917,991
STM 360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
1
Accounting policies
Company information

STM 360 Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 4, Marrtree Business Park, Thunderhead Ridge, Castleford, WF10 4UA.

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 £1.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. 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 STM 360 Group Limited. These consolidated financial statements are available from its registered office, Unit 4, Marrtree Business Park, Thunderhead Ridge, Castleford, WF10 4UA.

1.2
Going concern

Atruet 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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover comprises revenue recognised by the Company in respect of goods and services supplied during the period, exclusive of Value Added Tax. Turnover is recognised on invoice when the work performed has been certified by a quantity surveyor.

Turnover 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, turnover is recognised only to the extent of the expenses recognised that it is probable will be recovered.

STM 360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 13 -
1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
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.

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
Over the term of the lease
Fixtures and fittings
20% - 33.3% 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.

1.6
Stocks

Stocks are valued at the lower of cost and net realisable value. Work in progress on contracts is valued at costs incurred, plus attributable profit less turnover already invoiced. Costs incurred includes all direct costs and an appropriate proportion of fixed and variable overheads. Attributable profit is calculated on a prudent basis to reflect the portion of work carried out at the period end. For any contracts where amounts invoiced exceed costs incurred plus attributable profit, the excess is included within accruals.

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.

1.7
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.

1.8
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.

STM 360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 14 -
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.

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.

STM 360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

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.

1.9
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.

1.10
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.

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.

STM 360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 16 -
1.11
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.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.15

Profit recognition on contracts

Profit is taken on contracts where the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the portion of the work carried out at the period end, by recording turnover and related costs as a contract activity progresses. Turnover is recognised on certification. The relevant proportion of costs are recognised in line with the stage percentage completion as a percentage of total expected cost. Turnover derived from variations on contracts is recognised only when they have been accepted by the customer. Full provisions are made for losses on all contracts in the period, in which they are first foreseen.

STM 360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 17 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Contract accounting

The most critical accounting policies and significant areas of judgment and estimation arises from the accounting for contracts. Contract accounting requires estimates to be made for contract costs and income. In many cases, these contractual obligations span more than one financial period. Also the costs and income may be affected by a number of uncertainties that depend on the outcome of the future events, and may need to be revised as events unfold and uncertainties are resolved.

 

Management bases its judgement of costs and income and its assessment of the expected outcome of each contractual obligation on the latest available information which includes detailed contract valuations and forecasts of the cost to complete. The estimate of the contract position and the profit or loss earned to date are updated regularly and significant changes are highlighted through established internal review procedures. The impact of any change in the accounting estimates is then reflected in the accounts.

3
Turnover and other revenue

Turnover is wholly attributable to the principal activity of the company.

 

All turnover arose within the United Kingdom.

 

2024
2023
£
£
Other revenue
Interest income
65,825
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
28,440
41,090
Amortisation of intangible assets
108,333
100,000
Share-based payments
270,738
-
Operating lease charges
72,996
65,992
STM 360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 18 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
21,200
20,360
6
Employees

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

2024
2023
Number
Number
Office
3
5
Operatives
29
29
Directors
6
6
Total
38
40

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,066,286
1,918,180
Social security costs
205,400
221,354
Pension costs
156,399
64,329
2,428,085
2,203,863
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
490,783
463,413
Company pension contributions to defined contribution schemes
106,835
19,086
597,618
482,499
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
99,914
101,592
Company pension contributions to defined contribution schemes
26,710
7,740
STM 360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 19 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
65,825
-
0
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
-
2,191
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
443,681
414,352
Deferred tax
Origination and reversal of timing differences
-
0
(14,000)
Total tax charge
443,681
400,352

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
£
£
Profit before taxation
1,365,357
1,913,633
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
341,339
382,727
Tax effect of expenses that are not deductible in determining taxable profit
69,690
4,515
Depreciation on assets not qualifying for tax allowances
32,652
22,571
Other
-
0
(9,461)
Taxation charge for the year
443,681
400,352
11
Dividends
2024
2023
£
£
Final
1,510,000
1,046,000
STM 360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 20 -
12
Intangible fixed assets
Goodwill
£
Cost
At 1 June 2023 and 31 May 2024
500,000
Amortisation and impairment
At 1 June 2023
391,667
Amortisation charged for the year
108,333
At 31 May 2024
500,000
Carrying amount
At 31 May 2024
-
0
At 31 May 2023
108,333
13
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Total
£
£
£
Cost
At 1 June 2023
64,278
89,872
154,150
Additions
-
0
7,460
7,460
Disposals
-
0
(8,337)
(8,337)
At 31 May 2024
64,278
88,995
153,273
Depreciation and impairment
At 1 June 2023
41,922
71,087
113,009
Depreciation charged in the year
12,856
15,584
28,440
Eliminated in respect of disposals
-
0
(8,337)
(8,337)
At 31 May 2024
54,778
78,334
133,112
Carrying amount
At 31 May 2024
9,500
10,661
20,161
At 31 May 2023
22,356
18,785
41,141
14
Stocks
2024
2023
£
£
Work in progress
410,738
296,103
STM 360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 21 -
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,815,665
1,878,448
Other debtors
38,547
31,177
Prepayments and accrued income
57,642
65,779
1,911,854
1,975,404
16
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
841,673
1,021,088
Amounts owed to group undertakings
929
929
Corporation tax
217,744
234,321
Other taxation and social security
280,206
306,162
Other creditors
21,250
10,502
Accruals and deferred income
2,938,319
2,009,262
4,300,121
3,582,264
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
156,399
64,329

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.

18
Share-based payment transactions

Equity-settled share-based payments

On 9 May 23 certain employees of the company subscribed for C-Ordinary shares in the parent company, STM 360 Group Limited. These shares provide a preferential share of profits to shareholders of the C-Ordinary shares in the event that an exit event occurs past certain hurdles, subject to ongoing employment by those individuals. This means that the C-Ordinary shares represent sweet equity and are to be accounted for as a share-based payment.

 

As STM 360 Limited has the benefit of ongoing employment of these individuals, it has recognised an expense in its profit and loss account of £270,738 with an associated capital contribution reserve recognised in respect of this transaction. The total fair value of the scheme, as determined on the grant date, is £1,318,893. Further details of the scheme are provided in the group financial statements of STM 360 Group Limited, which are available as detailed in note 18.

STM 360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 22 -
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary Shares of 1p each
1,000
1,000
10
10
B Ordinary Shares of 1p each
1,000
1,000
10
10
2,000
2,000
20
20

The A Ordinary Shares and the B Ordinary shares rank pari passu with respect to a distribution of profits and a return of capital.

 

The A Ordinary Shares and the B Ordinary shares carry the right to receive notice of and to attend, speak and vote at all general meetings of the Company and to vote on written resolutions and on a poll or written resolution to exercise one vote per share.

20
Capital contribution reserve
2024
2023
£
£
At the beginning of the year
-
-
Other movements
270,738
-
At the end of the year
270,738
-

Information regarding share-based payment transactions in the year is held in note 18.

21
Operating lease commitments

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
£
£
Within one year
42,564
68,919
Between two and five years
24,619
40,279
In over five years
333
-
0
67,516
109,198
22
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

STM 360 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
22
Related party transactions
(Continued)
- 23 -
Sales
Sales
2024
2023
£
£
S Lazenby
379
605
A Watson
3,100
29,897

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
S Lazenby
-
550
A Watson
-
35,879
Other related parties
420
-
23
Ultimate controlling party

The immediate parent company is STM 360 Group Limited in which group accounts are prepared, incorporated in England and Wales at Unit 4, Marrtree Business Park, Thunderhead Ridge, Castleford, WF10 4UA.

 

The ultimate controlling party is the directors of STM 360 Group Limited.

2024-05-312023-06-01falseCCH SoftwareCCH Accounts Production 2024.210Mr G TaylorMr R P MarshallMr A R WatsonMr J A GreenMr J O RawsonMr J O RawsonMr S Lazenbyfalsefalse101110242023-06-012024-05-3110111024bus:Director12023-06-012024-05-3110111024bus:Director22023-06-012024-05-3110111024bus:CompanySecretaryDirector12023-06-012024-05-3110111024bus:Director32023-06-012024-05-3110111024bus:Director42023-06-012024-05-3110111024bus:Director52023-06-012024-05-3110111024bus:CompanySecretary12023-06-012024-05-3110111024bus:Director62023-06-012024-05-3110111024bus:RegisteredOffice2023-06-012024-05-31101110242024-05-31101110242022-06-012023-05-3110111024core:RetainedEarningsAccumulatedLosses2022-06-012023-05-3110111024core:RetainedEarningsAccumulatedLosses2023-06-012024-05-3110111024core:Goodwill2024-05-3110111024core:Goodwill2023-05-31101110242023-05-3110111024core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-05-3110111024core:FurnitureFittings2024-05-3110111024core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-05-3110111024core:FurnitureFittings2023-05-3110111024core:CurrentFinancialInstrumentscore:WithinOneYear2024-05-3110111024core:CurrentFinancialInstrumentscore:WithinOneYear2023-05-3110111024core:CurrentFinancialInstruments2024-05-3110111024core:CurrentFinancialInstruments2023-05-3110111024core:ShareCapital2024-05-3110111024core:ShareCapital2023-05-3110111024core:OtherMiscellaneousReserve2024-05-3110111024core:OtherMiscellaneousReserve2023-05-3110111024core:RetainedEarningsAccumulatedLosses2024-05-3110111024core:RetainedEarningsAccumulatedLosses2023-05-3110111024core:ShareCapital2022-05-3110111024core:RetainedEarningsAccumulatedLosses2022-05-3110111024core:ShareCapitalOrdinaryShares2024-05-3110111024core:ShareCapitalOrdinaryShares2023-05-3110111024core:Goodwill2023-06-012024-05-3110111024core:LandBuildingscore:LongLeaseholdAssets2023-06-012024-05-3110111024core:FurnitureFittings2023-06-012024-05-3110111024core:UKTax2023-06-012024-05-3110111024core:UKTax2022-06-012023-05-311011102412023-06-012024-05-311011102412022-06-012023-05-311011102422023-06-012024-05-311011102422022-06-012023-05-3110111024core:Goodwill2023-05-3110111024core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-05-3110111024core:FurnitureFittings2023-05-31101110242023-05-3110111024core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-06-012024-05-3110111024core:WithinOneYear2024-05-3110111024core:WithinOneYear2023-05-3110111024core:BetweenTwoFiveYears2024-05-3110111024core:BetweenTwoFiveYears2023-05-3110111024core:MoreThanFiveYears2024-05-3110111024core:MoreThanFiveYears2023-05-3110111024bus:PrivateLimitedCompanyLtd2023-06-012024-05-3110111024bus:FRS1022023-06-012024-05-3110111024bus:Audited2023-06-012024-05-3110111024bus:FullAccounts2023-06-012024-05-31xbrli:purexbrli:sharesiso4217:GBP