Company registration number 08629638 (England and Wales)
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
COMPANY INFORMATION
Directors
Mr D Meehan
Mr DT Rowe
Mr P Cameron
Mr AD Johnston
Company number
08629638
Registered office
29 -33 Maxwell Street
South Shields
Tyne and Wear
NE33 4PU
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
Bankers
Lloyds Bank
102 Grey Street
Newcastle upon Tyne
NE99 1SZ
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 25
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 1 -

The directors present the strategic report for the year ended 28 February 2024.

Review of the business

Group turnover decreased slightly by £20k to £15.63m this year. The Directors continue to concentrate on the UK businesses and aim to grow the group's export sales.

Principal risks and uncertainties

The group has an established, structured approach to risk management.

 

The group's principal risk is with regard to the threat of an economic downturn in any of the group's overseas markets or any markets serviced by any of the related companies with which the group has links. This risk is particularly worrying when we considered the aftermath of Brexit, and the effect on investment and business confidence in both foreign and domestic markets. These risks are mitigated by diversification into different product ranges and expansion into different markets throughout the world.

 

The group's activities expose it to a variety of financial risks, including effects of credit, liquidity and cash flows, and foreign currency risk. The group has adopted risk management policies that seek to mitigate these risks in a cost effective manner. Financial assets that expose the group to financial risk consist primarily of trade debtors and cash. Financial liabilities that expose the group to financial risk consist primarily of trade creditors, bank loans and inter company loan agreements.

 

Credit risk

Credit risk is the loss in the value of financial assets due to counterparties failing to meet all or part of their obligations. The company performs ongoing credit evaluations of its customer's financial condition.

 

Liquidity risk

Liquidity risk is the risk that the group does not have sufficient liquid assets to meet its obligations as they fall due. Liquidity is maintained at the prudent level and the group ensure there is adequate liquidity buffer to cover contingencies. The company maintains sufficient cash and credit lines from its bankers to meet its funding requirements.

 

On behalf of the board

Mr DT Rowe
Director
27 November 2024
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 2 -

The directors present their annual report and financial statements for the year ended 28 February 2024.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £707,560. 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 D Meehan
Mr DT Rowe
Mr P Cameron
Mr JC Leese
(Resigned 7 April 2024)
Mr AD Johnston
Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 auditor of the company 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 auditor of the company is aware of that information.

GLOBAL DECONTAMINATION SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 3 -
On behalf of the board
Mr DT Rowe
Director
27 November 2024
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GLOBAL DECONTAMINATION SOLUTIONS LIMITED
- 4 -
Opinion

We have audited the financial statements of Global Decontamination Solutions Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 group and parent 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 group's and 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 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:

GLOBAL DECONTAMINATION SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GLOBAL DECONTAMINATION SOLUTIONS LIMITED
- 5 -
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 their 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 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 parent 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant.

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.

GLOBAL DECONTAMINATION SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GLOBAL DECONTAMINATION SOLUTIONS LIMITED
- 6 -

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.

Michael T Moran BA FCA
Senior Statutory Auditor
28 November 2024
For and on behald of Robson Laidler Accountants Limited
Accountants
Fernwood House
Statutory Auditor
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
2
15,632,136
15,651,640
Cost of sales
(10,473,639)
(10,719,710)
Gross profit
5,158,497
4,931,930
Administrative expenses
(4,754,134)
(4,844,012)
Operating profit
3
404,363
87,918
Interest receivable and similar income
5
344
10
Interest payable and similar expenses
6
(83,895)
(88,086)
Profit/(loss) before taxation
320,812
(158)
Tax on profit/(loss)
7
(59,793)
(55,815)
Profit/(loss) for the financial year
261,019
(55,973)
Profit/(loss) for the financial year is all attributable to the owner of the parent company.
Total comprehensive income for the year is all attributable to the owner of the parent company.
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
GROUP BALANCE SHEET
AS AT
28 FEBRUARY 2024
28 February 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
4,758,893
3,448,222
Investment property
11
320,405
320,405
5,079,298
3,768,627
Current assets
Stocks
14
2,041,356
1,696,748
Debtors
15
4,776,274
5,562,492
Cash at bank and in hand
387,681
1,237,290
7,205,311
8,496,530
Creditors: amounts falling due within one year
16
(4,018,955)
(3,232,450)
Net current assets
3,186,356
5,264,080
Total assets less current liabilities
8,265,654
9,032,707
Creditors: amounts falling due after more than one year
17
(202,220)
(604,172)
Provisions for liabilities
Deferred tax liability
20
537,355
455,410
(537,355)
(455,410)
Net assets
7,526,079
7,973,125
Capital and reserves
Called up share capital
21
4,848
4,848
Revaluation reserve
44,473
46,236
Capital redemption reserve
500
500
Profit and loss reserves
7,476,258
7,921,541
Total equity
7,526,079
7,973,125

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

The financial statements were approved by the board of directors and authorised for issue on 27 November 2024 and are signed on its behalf by:
27 November 2024
Mr DT Rowe
Director
Company registration number 08629638 (England and Wales)
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
COMPANY BALANCE SHEET
AS AT 28 FEBRUARY 2024
28 February 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,310,589
-
0
Investment property
11
320,405
320,405
Investments
12
1,200,752
1,200,752
2,831,746
1,521,157
Current assets
Debtors
15
258,731
1,317,543
Cash at bank and in hand
130,063
679,962
388,794
1,997,505
Creditors: amounts falling due within one year
16
(7,861)
(519,408)
Net current assets
380,933
1,478,097
Total assets less current liabilities
3,212,679
2,999,254
Provisions for liabilities
Deferred tax liability
20
(65,322)
(35,636)
65,322
35,636
Net assets
3,278,001
3,034,890
Capital and reserves
Called up share capital
21
4,848
4,848
Profit and loss reserves
3,273,153
3,030,042
Total equity
3,278,001
3,034,890

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £950,671 (2023 - £214,778 loss).

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

The financial statements were approved by the board of directors and authorised for issue on 27 November 2024 and are signed on its behalf by:
27 November 2024
Mr DT Rowe
Director
Company registration number 08629638 (England and Wales)
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 10 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 March 2022
4,842
47,999
500
8,120,145
8,173,486
Year ended 28 February 2023:
Loss and total comprehensive income for the year
-
-
-
(55,973)
(55,973)
Bonus issue of shares
21
6
-
-
(6)
-
0
Dividends
8
-
-
-
(144,388)
(144,388)
Transfers
-
(1,763)
-
1,763
-
Balance at 28 February 2023
4,848
46,236
500
7,921,541
7,973,125
Year ended 28 February 2024:
Profit and total comprehensive income for the year
-
-
-
261,019
261,019
Dividends
8
-
-
-
(708,065)
(708,065)
Transfers
-
(1,763)
-
1,763
-
Balance at 28 February 2024
4,848
44,473
500
7,476,258
7,526,079
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2022
4,842
3,389,214
3,394,056
Year ended 28 February 2023:
Loss and total comprehensive income for the year
-
(214,778)
(214,778)
Bonus issue of shares
21
6
(6)
-
0
Dividends
8
-
(144,388)
(144,388)
Balance at 28 February 2023
4,848
3,030,042
3,034,890
Year ended 28 February 2024:
Profit and total comprehensive income for the year
-
950,671
950,671
Dividends
8
-
(707,560)
(707,560)
Balance at 28 February 2024
4,848
3,273,153
3,278,001
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
24
1,656,151
(70,708)
Interest paid
(83,895)
(88,086)
Income taxes refunded
62,316
90,009
Net cash inflow/(outflow) from operating activities
1,634,572
(68,785)
Investing activities
Purchase of tangible fixed assets
(1,983,232)
(867,481)
Proceeds from disposal of tangible fixed assets
63,074
167,507
Repayment of loans
312,555
(351,232)
Interest received
344
10
Net cash used in investing activities
(1,607,259)
(1,051,196)
Financing activities
Proceeds from issue of shares
-
(6)
Repayment of bank loans
(46,953)
(745,311)
Payment of finance leases obligations
(156,352)
216,770
Dividends paid to equity shareholders
(708,065)
(144,388)
Net cash used in financing activities
(911,370)
(672,935)
Net decrease in cash and cash equivalents
(884,057)
(1,792,916)
Cash and cash equivalents at beginning of year
1,237,290
3,030,206
Cash and cash equivalents at end of year
353,233
1,237,290
Relating to:
Cash at bank and in hand
387,681
1,237,290
Bank overdrafts included in creditors payable within one year
(34,448)
-
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 13 -
1
Accounting policies
Company information

Global Decontamination Solutions Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office can be found on the Company Information page.

 

The group consists of Global Decontamination Solutions Limited and all of its subsidiaries.

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 £.

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

 

The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The results of all subsidiaries are included in the group profit and loss account from the date of acquisition.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases. SMH T&SS UK Limited (Company number 08913688) is exempt from the requirements of the Companies Act 2006 relating to the audit of accounts under section 479A. The results of the subsidiary are shown in note 13.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.4
Turnover

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

Turnover from the sale of asbestos safety equipment is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on despatch of goods.

Turnover from the sale of specialist asbestos-focused decontamination and health and safety training is recognised when the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on completion of the service supplied.

1.5
Research and development expenditure

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

GLOBAL DECONTAMINATION SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 14 -
1.6
Tangible fixed assets

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

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:

Freehold land and buildings
2% straight line basis
Leasehold improvements
Various rates
Plant and equipment
Straight line basis at varying rates
Fixtures and fittings
20% straight line basis
Motor vehicles
20% straight line basis
Plant hire fleet
Straight line basis at varying rates

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

 

Plant hire fleet assets are capitalised using direct cost, direct labour and attributable level of overhead.

1.7
Investment properties

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

1.8
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

1.10
Stocks

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

 

1.11
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.

GLOBAL DECONTAMINATION SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.12
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 group’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.

 

1.13
Retirement benefits

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

1.14
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.15
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.

1.16

Debtors and creditors receivable/payable within one year

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

1.17

Loans and borrowings

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

GLOBAL DECONTAMINATION SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 16 -
2
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of goods
15,632,136
15,651,640
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
15,416,868
15,412,032
Europe
215,268
239,608
15,632,136
15,651,640
2024
2023
£
£
Other revenue
Interest income
344
10
3
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange rate differences
(2,394)
(82,840)
Depreciation of owned tangible fixed assets
361,062
354,137
Depreciation of tangible fixed assets held under finance leases
141,227
117,732
Loss on disposal of tangible fixed assets
107,198
22,673
Operating lease charges
535,698
525,812
4
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
5
5
5
5
Admin staff
80
76
-
-
Factory
27
33
-
-
Total
112
114
5
5
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
4
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,984,359
3,159,240
-
0
-
0
Social security costs
264,155
295,345
-
-
Pension costs
128,803
127,288
-
0
-
0
3,377,317
3,581,873
-
0
-
0
5
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
344
10
6
Interest payable and similar expenses
2024
2023
£
£
Other interest on financial liabilities
80,083
84,040
Interest on finance leases and hire purchase contracts
3,812
4,046
Total finance costs
83,895
88,086
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 18 -
7
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
59,793
55,815

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

2024
2023
£
£
Profit/(loss) before taxation
320,812
(158)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
80,203
(30)
Tax effect of expenses that are not deductible in determining taxable profit
11,519
11,114
Unutilised tax losses carried forward
(54,930)
26,344
Group relief
-
0
(30,552)
Permanent capital allowances in excess of depreciation
-
0
(67,178)
Deferred tax
59,793
103,394
Intercompany loan write off
-
0
(32,972)
R&D enhanced expenditure
(36,792)
(59,428)
Loss surrendered for tax credit
-
105,123
Taxation charge
59,793
55,815
8
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
707,560
144,388
9
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 March 2023 and 28 February 2024
250,000
Amortisation and impairment
At 1 March 2023 and 28 February 2024
250,000
Carrying amount
At 28 February 2024
-
0
At 28 February 2023
-
0
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 19 -
10
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Plant hire fleet
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 March 2023
910,221
91,071
670,314
546,342
895,803
4,721,133
7,834,884
Additions
-
0
-
0
1,356,060
80,948
221,473
324,751
1,983,232
Disposals
-
0
-
0
-
0
(55,281)
(161,184)
(537,375)
(753,840)
At 28 February 2024
910,221
91,071
2,026,374
572,009
956,092
4,508,509
9,064,276
Depreciation and impairment
At 1 March 2023
256,904
73,534
573,847
374,808
492,857
2,614,712
4,386,662
Depreciation charged in the year
18,204
1,581
54,898
66,236
141,605
219,765
502,289
Eliminated in respect of disposals
-
0
-
0
-
0
(50,007)
(153,637)
(379,924)
(583,568)
At 28 February 2024
275,108
75,115
628,745
391,037
480,825
2,454,553
4,305,383
Carrying amount
At 28 February 2024
635,113
15,956
1,397,629
180,972
475,267
2,053,956
4,758,893
At 28 February 2023
653,317
17,537
96,467
171,534
402,946
2,106,421
3,448,222
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 20 -
Company
Plant and equipment
£
Cost or valuation
At 1 March 2023
-
0
Additions
1,335,719
At 28 February 2024
1,335,719
Depreciation and impairment
At 1 March 2023
-
0
Depreciation charged in the year
25,130
At 28 February 2024
25,130
Carrying amount
At 28 February 2024
1,310,589

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
487,924
433,551
-
0
-
0

If freehold property were measured using the cost model, the carrying amounts would be as follows:

2024
2023
£
£
Group
Cost
822,038
822,038
Accumulated depreciation
(233,159)
(214,955)
Carrying value
588,879
607,083
11
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 March 2023 and 28 February 2024
320,405
320,405

The investment properties have been valued on an open market basis based on directors estimates.

GLOBAL DECONTAMINATION SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 21 -
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
1,200,752
1,200,752
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 March 2023 and 28 February 2024
1,200,752
Carrying amount
At 28 February 2024
1,200,752
At 28 February 2023
1,200,752
13
Subsidiaries

Details of the company's subsidiaries at 28 February 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
SMH Products Limited
England & Wales
Ordinary
100.00
SMH Equipment Limited
England & Wales
Ordinary
100.00
SMH T&SS UK Limited
England & Wales
Ordinary
100.00
Progard Limited
England & Wales
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
SMH T&SS UK Limited
(377,004)
410,941
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
426,650
364,289
-
-
Work in progress
75,058
85,511
-
-
Finished goods and goods for resale
1,539,648
1,246,948
-
0
-
0
2,041,356
1,696,748
-
-
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 22 -
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,567,327
3,351,884
-
0
-
0
Corporation tax recoverable
-
0
62,317
-
0
-
0
Other debtors
723,610
1,023,509
256,062
569,284
Prepayments and accrued income
463,184
1,124,782
2,669
748,259
4,754,121
5,562,492
258,731
1,317,543
Deferred tax asset (note 20)
22,153
-
0
-
0
-
0
4,776,274
5,562,492
258,731
1,317,543

Included within trade debtors are balances totaling £2,948,447 (2023: £2,867,091) that are subject to factoring arrangements. The trade debtor balances have been transferred to the counterparty although the transaction does not qualify for de-recognition on the basis that the credit risk is retained by the company. The associated asset recognised in cash at bank amounts to £155,298 (2023: £232,627).

 

16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
631,801
355,102
-
0
-
0
Obligations under finance leases
19
290,972
334,576
-
0
-
0
Trade creditors
2,611,848
2,058,759
3,360
6,780
Amounts owed to group undertakings
-
0
-
0
1
508,128
Other taxation and social security
254,769
268,275
-
-
Other creditors
25,390
21,115
-
0
-
0
Accruals and deferred income
204,175
194,623
4,500
4,500
4,018,955
3,232,450
7,861
519,408
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
17,463
306,667
-
0
-
0
Obligations under finance leases
19
184,757
297,505
-
0
-
0
202,220
604,172
-
-
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 23 -
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
614,816
661,769
-
0
-
0
Bank overdrafts
34,448
-
0
-
0
-
0
649,264
661,769
-
-
Payable within one year
631,801
355,102
-
0
-
0
Payable after one year
17,463
306,667
-
0
-
0

The bank loans, overdraft and debt factoring liability are secured by debentures and legal charges over all properties and assets of the company.

 

Hire purchase liabilities are secured on the assets concerned.

19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
290,972
334,576
-
0
-
0
In two to five years
184,757
297,505
-
0
-
0
475,729
632,081
-
-
20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
656,690
629,365
22,153
-
Tax losses
(119,335)
(173,955)
-
-
537,355
455,410
22,153
-
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
20
Deferred taxation
(Continued)
- 24 -
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Tax losses
(65,322)
(35,636)
-
-
Group
Company
2024
2024
Movements in the year:
£
£
Liability/(Asset) at 1 March 2023
455,410
(35,636)
Charge/(credit) to profit or loss
59,792
(29,686)
Liability/(Asset) at 28 February 2024
515,202
(65,322)
21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
4,848
4,848
4,848
4,848
22
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
340,619
340,555
-
-
Between two and five years
899,364
888,984
-
-
In over five years
353,250
495,417
-
-
1,593,233
1,724,956
-
-
GLOBAL DECONTAMINATION SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 25 -
23
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
-
554,315
-
554,315
24
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit/(loss) for the year after tax
261,019
(55,973)
Adjustments for:
Taxation charged
59,793
55,815
Finance costs
83,895
88,086
Investment income
(344)
(10)
Loss on disposal of tangible fixed assets
107,198
22,673
Depreciation and impairment of tangible fixed assets
502,289
471,869
Movements in working capital:
Increase in stocks
(344,608)
(84,219)
Decrease/(increase) in debtors
433,499
(287,776)
Increase/(decrease) in creditors
553,410
(281,173)
Cash generated from/(absorbed by) operations
1,656,151
(70,708)
25
Analysis of changes in net debt - group
1 March 2023
Cash flows
28 February 2024
£
£
£
Cash at bank and in hand
1,237,290
(849,609)
387,681
Bank overdrafts
-
0
(34,448)
(34,448)
1,237,290
(884,057)
353,233
Borrowings excluding overdrafts
(661,769)
46,953
(614,816)
Obligations under finance leases
(632,081)
156,352
(475,729)
(56,560)
(680,752)
(737,312)
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