Company registration number 01089049 (England and Wales)
S.H.J. HOSPITAL PIPELINES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
S.H.J. HOSPITAL PIPELINES LIMITED
COMPANY INFORMATION
Directors
S L Scopes
Y Scopes
S Ali
(Appointed 11 June 2024)
Secretary
Y Scopes
Company number
01089049
Registered office
Unit 4
Anglo Business Park
Asheridge Road
CHESHAM
Buckinghamshire
HP5 2QA
Auditor
CLA Evelyn Partners Limited
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
S.H.J. HOSPITAL PIPELINES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Notes to the financial statements
9 - 19
S.H.J. HOSPITAL PIPELINES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -
The directors present the strategic report for the year ended 31 May 2024.
Review of the business
The current economic environment continues to put pressure on NHS spending. However, both the NHS and private sector are committed to programmes of new builds and modernisation. This along with commitments to long term maintenance and service contracts allows us to predict business for the foreseeable future. The economic picture is improving and the benefits are beginning to filter through. This has proved to be advantageous for the very competitive Medical Gas industry in which SHJ is a market leader.
Principal risks and uncertainties
The company closely manages the risks to which it is exposed. The director considers that the risks to SHJ’s continued trading are regularly assessed and suitably managed. The company manages its cash and borrowing requirements in order to ensure that the company has sufficient liquidity to meet the operating needs of the businesses.
Development and performance
The director considers that given the nature of the business, which is largely dependent on sales to the NHS and private sector maintaining tight control over margins, turnover and operating profit, are the principal key performance indicators of the company. Turnover for the year was £8,342,294 (2023 - £7,887,917) which generated an operating profit of £844,039 (2023 - profit of £351,830).
The director considers that the financial position at the year end was satisfactory and is confident that the company will continue to meet his expectations for maintaining profitability in the future.
S L Scopes
Director
7 November 2024
S.H.J. HOSPITAL PIPELINES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
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 supply of medical gas pipeline installations.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £500,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
S L Scopes
Y Scopes
S Ali
(Appointed 11 June 2024)
Auditor
The auditor, CLA Evelyn Partners Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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 company and of the profit or loss of the company 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 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.
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
S.H.J. HOSPITAL PIPELINES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
On behalf of the board
S L Scopes
Director
7 November 2024
S.H.J. HOSPITAL PIPELINES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF S.H.J. HOSPITAL PIPELINES LIMITED
- 4 -
Opinion
We have audited the financial statements of S.H.J. Hospital Pipelines Limited (the 'company') for the year ended 31 May 2024 which comprise the statement of income and retained earnings, the balance sheet 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:
give a true and fair view of the state of the company's affairs as at 31 May 2024 and of its 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.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
S.H.J. HOSPITAL PIPELINES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF S.H.J. HOSPITAL PIPELINES LIMITED
- 5 -
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 are 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
understanding the design of the company’s remuneration policies.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
S.H.J. HOSPITAL PIPELINES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF S.H.J. HOSPITAL PIPELINES LIMITED
- 6 -
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
Other matters which we are required to address
Comparative information in the financial statements is derived from the company's prior period financial statements which were not audited.
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.
Keir Singleton
Senior Statutory Auditor
For and on behalf of CLA Evelyn Partners Limited
27 November 2024
Chartered Accountants
Statutory Auditor
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
S.H.J. HOSPITAL PIPELINES LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
8,342,294
7,887,917
Cost of sales
(4,200,022)
(3,943,545)
Gross profit
4,142,272
3,944,372
Administrative expenses
(3,298,233)
(3,592,542)
Operating profit
4
844,039
351,830
Interest receivable and similar income
8
2,735
Interest payable and similar expenses
9
(83,661)
(63,641)
Profit before taxation
760,378
290,924
Tax on profit
10
(216,368)
(91,080)
Profit for the financial year
544,010
199,844
Retained earnings brought forward
2,519,298
2,319,454
Dividends
11
(500,000)
Retained earnings carried forward
2,563,308
2,519,298
The profit and loss account has been prepared on the basis that all operations are continuing operations.
S.H.J. HOSPITAL PIPELINES LIMITED
BALANCE SHEET
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,259,163
1,269,459
Current assets
Stocks
13
1,323,874
1,342,263
Debtors
14
2,364,751
3,226,283
Investments
15
162,742
106,642
Cash at bank and in hand
1,150,802
863,507
5,002,169
5,538,695
Creditors: amounts falling due within one year
16
(2,560,076)
(2,984,280)
Net current assets
2,442,093
2,554,415
Total assets less current liabilities
3,701,256
3,823,874
Creditors: amounts falling due after more than one year
17
(833,280)
(1,009,999)
Provisions for liabilities
Provisions
19
10,000
10,000
Deferred tax liability
20
293,668
283,577
(303,668)
(293,577)
Net assets
2,564,308
2,520,298
Capital and reserves
Called up share capital
23
1,000
1,000
Profit and loss reserves
2,563,308
2,519,298
Total equity
2,564,308
2,520,298
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 7 November 2024 and are signed on its behalf by:
S L Scopes
Director
Company registration number 01089049 (England and Wales)
S.H.J. HOSPITAL PIPELINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
1
Accounting policies
Company information
S.H.J. Hospital Pipelines Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 4, Anglo Business Park, Asheridge Road, Chesham, Buckinghamshire, HP5 2QA.
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. 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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Stabilis Holding Company Limited. These consolidated financial statements are available from its registered office, 22 Wycombe End, Beaconsfield, Buckinghamshire, HP9 1NB.
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 represents amounts receivable for goods and services net of VAT and trade discounts.
Turnover in respect of long term contracts and contracts for on-going services represents the value of the work done in the year, including estimates of amounts not invoiced, determined by reference to the stage of completion of each contract which in turn is measured as the proportion which costs to date bears to the expected total cost for the contract.
Profit on long term contracts for services is recognised in the profit and loss account if the final outcome can be assessed with reasonable certainty by including turnover and related costs as contract activity progresses.
Amounts recoverable on long term contracts are included in debtors and stated at the net sales value of the work done after provision of contingencies and anticipated future losses on contracts, less amounts received as progress payments on account.
Payments received in advance of the performance of services or delivery of the product are recorded as deferred revenue until such time as the services are performed or the product is delivered.
S.H.J. HOSPITAL PIPELINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 10 -
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
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
Plant and machinery
25% reducing balance
Fixtures, fittings & equipment
25% reducing balance
Computer equipment
25% reducing balance
Motor vehicles
25% reducing balance
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 stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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
Financial instruments
The company has elected to apply the provisions of Section 11 ”Basic Financial Instruments” 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.
Basic financial assets
Short term debtors are measured at transaction price less any provision for impairment. Loans receivable are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method, less any provision for impairment.
S.H.J. HOSPITAL PIPELINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 11 -
Basic financial liabilities
Short term creditors are measured at transaction price. Other financial liabilities, including bank loans and other loans, are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method.
1.8
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.
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.
1.9
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
S.H.J. HOSPITAL PIPELINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Medical gas pipeline installations
8,342,294
7,887,917
2024
2023
£
£
Other revenue
Interest income
-
2,735
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Research and development costs
5,143
-
Fees payable to the company's auditor for the audit of the company's financial statements
19,805
21,250
Depreciation of owned tangible fixed assets
365,393
339,185
Profit on disposal of tangible fixed assets
(2,677)
(7,003)
Operating lease charges
467
-
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
19,805
21,250
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Engineers
32
33
Admin & marketing
20
16
Management
8
8
Total
60
57
S.H.J. HOSPITAL PIPELINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
6
Employees
(Continued)
- 13 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,326,615
1,812,932
Social security costs
266,969
250,200
Pension costs
94,135
275,381
2,687,719
2,338,513
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
8,283
5,704
Company pension contributions to defined contribution schemes
-
192,600
8,283
198,304
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
2,735
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
83,489
62,134
Interest on finance leases and hire purchase contracts
-
1,507
Other interest
172
83,661
63,641
S.H.J. HOSPITAL PIPELINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 14 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
183,741
22,570
Adjustments in respect of prior periods
22,536
Total current tax
206,277
22,570
Deferred tax
Origination and reversal of timing differences
10,091
68,510
Total tax charge
216,368
91,080
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
760,378
290,924
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
190,095
58,185
Tax effect of expenses that are not deductible in determining taxable profit
3,737
1,724
Adjustments in respect of prior years
22,536
Other non-reversing timing differences
(14,328)
Research and development enhanced relief
(22,536)
Difference in future deferred tax rates
68,035
Taxation charge for the year
216,368
91,080
11
Dividends
2024
2023
£
£
Interim paid
500,000
S.H.J. HOSPITAL PIPELINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 15 -
12
Tangible fixed assets
Leasehold improvements
Plant and machinery
Total
£
£
£
Cost
At 1 June 2023
138,331
2,738,509
2,876,840
Additions
395,748
395,748
Disposals
(58,991)
(58,991)
At 31 May 2024
138,331
3,075,266
3,213,597
Depreciation and impairment
At 1 June 2023
47,273
1,560,108
1,607,381
Depreciation charged in the year
22,765
342,628
365,393
Eliminated in respect of disposals
(18,340)
(18,340)
At 31 May 2024
70,038
1,884,396
1,954,434
Carrying amount
At 31 May 2024
68,293
1,190,870
1,259,163
At 31 May 2023
91,058
1,178,401
1,269,459
13
Stocks
2024
2023
£
£
Raw materials for use in contracted work
1,323,874
1,342,263
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,405,062
2,479,746
Amounts owed by group undertakings
628,224
527,106
Other debtors
81,539
92,444
Prepayments and accrued income
249,926
126,987
2,364,751
3,226,283
15
Current asset investments
2024
2023
£
£
Unlisted investments
162,742
106,642
S.H.J. HOSPITAL PIPELINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 16 -
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
18
176,937
173,615
Trade creditors
413,283
527,295
Corporation tax
183,741
22,570
Other taxation and social security
86,337
62,794
Deferred income
21
1,091,011
1,594,143
Other creditors
36,446
315,271
Accruals and deferred income
572,321
288,592
2,560,076
2,984,280
The bank loans are secured by way of a floating charge over the assets of the company.
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
18
833,280
1,009,999
The bank loans are secured by way of a floating charge over the assets of the company.
Amounts included above which fall due after five years are as follows:
Payable by instalments
311,431
412,321
18
Loans and overdrafts
2024
2023
£
£
Bank loans
1,010,217
1,183,614
Payable within one year
176,937
173,615
Payable after one year
833,280
1,009,999
The bank loans are secured by way of a floating charge over the assets of the company.
S.H.J. HOSPITAL PIPELINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 17 -
19
Provisions for liabilities
2024
2023
£
£
Warranty provision
10,000
10,000
Movements on provisions:
Warranty provision
£
At 1 June 2023 and 31 May 2024
10,000
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
306,306
299,077
General provisions
(12,638)
(15,500)
293,668
283,577
2024
Movements in the year:
£
Liability at 1 June 2023
283,577
Charge to profit or loss
10,091
Liability at 31 May 2024
293,668
21
Deferred income
2024
2023
£
£
Arising from deferred income
1,091,011
1,594,143
S.H.J. HOSPITAL PIPELINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 18 -
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
94,135
275,381
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.
23
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
24
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
240,138
230,628
Between two and five years
340,040
355,178
580,178
585,806
25
Related party transactions
The company is a wholly owned member of Stabilis Holding Company Limited and as such has taken advantage of the exemption permitted by Section 33 'Related Party Disclosures', not to provide disclosures of transactions entered into with other wholly-owned members of the group.
During the year the company was charged £168,000 (2023 - £707,200) by Advanced Medical Services Limited. Advanced Medical Services Limited shares the same directors and shareholders with the company. At the balance sheet date, the company was owed £26,000 (2023 - £192,000) by Advanced Medical Services Limited. This balance is included within debtors and is unsecured, interest-free and repayable-on-demand.
26
Directors' transactions
At the balance sheet date the company owed £31,950 (2023 - £310,082) to a director.
During the year, the company leased a property that is owned by the director's personal pension fund. Rent charged in the period for this property was £72,000 (2023 - £72,000).
S.H.J. HOSPITAL PIPELINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 19 -
27
Ultimate controlling party
The immediate and ultimate parent undertaking of SHJ Hospital Pipelines Limited is Stabilis Holding Company Limited whose registered office and principal place of business is 22 Wycombe End, Beaconsfield, UK, HP9 1NB.
The smallest and largest group which SHJ Hospital Pipelines Limited is consolidated into is Stabilis Holding Company Limited.
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