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COMPANY REGISTRATION NUMBER: SC514287
Brightwater Services Ltd
Filleted Financial Statements
30 September 2024
Brightwater Services Ltd
Statement of Financial Position
30 September 2024
2024
2023
Note
£
£
Fixed assets
Intangible assets
5
148,783
206,063
Tangible assets
6
3,393
6,658
---------
---------
152,176
212,721
Current assets
Debtors
7
3,092,123
2,836,151
Cash at bank and in hand
265,525
19,605
------------
------------
3,357,648
2,855,756
Creditors: amounts falling due within one year
8
2,403,438
1,868,703
------------
------------
Net current assets
954,210
987,053
------------
------------
Total assets less current liabilities
1,106,386
1,199,774
Creditors: amounts falling due after more than one year
9
61,979
168,229
------------
------------
Net assets
1,044,407
1,031,545
------------
------------
Capital and reserves
Called up share capital
12
279
279
Share premium account
1,252,868
1,252,868
Profit and loss account
( 208,740)
( 221,602)
------------
------------
Shareholders funds
1,044,407
1,031,545
------------
------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the income statement has not been delivered.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
Brightwater Services Ltd
Statement of Financial Position (continued)
30 September 2024
These financial statements were approved by the board of directors and authorised for issue on 29 January 2025 , and are signed on behalf of the board by:
T P Mitford-Barberton
Director
Company registration number: SC514287
The 2023 figures have been restated.
Brightwater Services Ltd
Notes to the Financial Statements
Year ended 30 September 2024
1. General information
The company is a private company limited by shares, incorporated and registered in Scotland ( SC514287 ). The address of the registered office is Stuart House, Eskmills, Station Road, Musselburgh, East Lothian, EH21 7PB.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102 Section 1A, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity, rounded to the nearest £1. The financial statements cover the individual entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Depreciation Amortisation Supplier late adjustments Associated income adjustments Bad debt provision The carrying values of assets subject to estimation uncertainty are Tangible fixed assets £3,393 Intangible fixed assets £148,783 Trade debtors £1,674,160
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the sale of water and sewerage services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably. Development costs are shown as an asset in the entity’s financial statements and the amount is not treated as a realised loss because there are special circumstances. The website and brand development will generate future economic benefits and is therefore recognised as an intangible asset.
Amortisation
Goodwill is being amortised over five years which is the average retention period for a customer contract.
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Goodwill
-
Over 5 years from the month of acquisition
Web & brand development
-
Over 5 years from the month of acquisition
Software
-
Over 5 years from the month of acquisition
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures and fittings
-
20% Straight line from the month of acquisition
Equipment
-
25% Straight line from the month of acquisition
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. All financial instruments are basic financial instruments. All basic financial assets and financial liabilities are initially measured at the transaction price. Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash at bank and in hand includes cash and short term highly liquid investments. Creditors are recognised where the company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 12 (2023: 18 ).
5. Intangible assets
Goodwill
Website and brand development costs
Software
Total
£
£
£
£
Cost
At 1 October 2023
224,469
32,431
93,332
350,232
Additions
6,333
6,333
---------
--------
--------
---------
At 30 September 2024
224,469
38,764
93,332
356,565
---------
--------
--------
---------
Amortisation
At 1 October 2023
41,153
25,674
77,342
144,169
Charge for the year
44,893
5,453
7,098
57,444
Impairment losses
2,572
3,597
6,169
---------
--------
--------
---------
At 30 September 2024
86,046
33,699
88,037
207,782
---------
--------
--------
---------
Carrying amount
At 30 September 2024
138,423
5,065
5,295
148,783
---------
--------
--------
---------
At 30 September 2023
183,316
6,757
15,990
206,063
---------
--------
--------
---------
6. Tangible assets
Fixtures and fittings
Equipment
Total
£
£
£
Cost
At 1 October 2023
1,480
19,357
20,837
Additions
1,069
1,069
Disposals
( 2,698)
( 2,698)
-------
--------
--------
At 30 September 2024
2,549
16,659
19,208
-------
--------
--------
Depreciation
At 1 October 2023
1,262
12,917
14,179
Charge for the year
378
2,476
2,854
Disposals
( 1,218)
( 1,218)
-------
--------
--------
At 30 September 2024
1,640
14,175
15,815
-------
--------
--------
Carrying amount
At 30 September 2024
909
2,484
3,393
-------
--------
--------
At 30 September 2023
218
6,440
6,658
-------
--------
--------
7. Debtors
2024
2023
£
£
Trade debtors
1,469,156
1,494,131
Other debtors
1,622,967
1,342,020
------------
------------
3,092,123
2,836,151
------------
------------
The debtors above include the following amounts falling due after more than one year:
2024
2023
£
£
Other debtors
38,648
38,648
--------
--------
The 2023 figures have been restated . Other debtors
2024 2023
£ £
Prepayments and accrued income 1,371,752 1,247,332
Other debtors 84,756 15,480
VAT 43,764 40,560
Deferred tax 38,648 38,648
Corporation tax recoverable 2,905
Directors loans 81,142
------------ ------------
1,622,967 1,342,020
------------ ------------
8. Creditors: amounts falling due within one year
2024
2023
£
£
Trade cycle funding & other loans
539,250
814,250
Trade creditors
33,011
38,990
Corporation tax
2,905
Social security and other taxes
22,144
10,998
Other creditors
1,809,033
1,001,560
------------
------------
2,403,438
1,868,703
------------
------------
The 2023 figures have been restated. Trade cycle funding and loans
2024 2023
£ £
Trade cycle funding 400,000 675,000
Bank loans 106,250 106,250
Loan stock 33,000 33,000
--------- ---------
539,250 814,250
--------- ---------
2024 2023
£ £
Secured creditors 506,250 781,250
--------- ---------
Trade cycle funding is secured by a bond and floating charge to Clydesdale Bank (trading as Virgin Money) who also hold a counter indemnity. Spotless Commercial Cleaning Ltd has provided a guarantee of £25,000. Other creditors
2024 2023
£ £
Accruals 58,313 56,419
Deferred income 1,472,569 794,214
Other 278,151 150,927
------------ ------------
1,809,033 1,001,560
------------ ------------
9. Creditors: amounts falling due after more than one year
2024
2023
£
£
Trade cycle funding & other loans
61,979
168,229
--------
---------
The 2023 figures have been restated . Trade cycle funding and other loans
2024 2023
£ £
Bank loans 61,979 168,229
-------- ---------
2024 2023
£ £
Secured creditors 61,979 168,229
-------- ---------
10. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in debtors (note 7)
38,648
38,648
--------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Unused tax losses
38,684
38,648
--------
--------
11. Prior period errors
The accounts have been restated to incorporate the following adjustments: Prior period adjustment - Balance sheet
Restated Original PYA
£ £ £
Fixed assets 212,721 212,721
Debtors 2,836,151 2,961,232 (125,081)
Bank & cash 19,605 19,605
Creditors < 12 months 1,868,703 1,714,914 (153,789)
Creditors > 12 months 168,229 274,479 106,250
Net assets 1,031,545 1,204,165 (172,620)
Capital and reserves
Restated Original PYA
£ £ £
Called up share capital 279 279
Share premium account 1,252,868 1,252,868
Profit and loss acccount (221,602) (48,982) (172,620)
Shareholders funds 1,031,545 1,204,165 (172,620)
The prior period adjustments relate to: - the correction of amounts included as accrued income in error. This was due to the misinterpretation of reports extracted from the company's billing software. Reports suggested amounts were due to be refunded from Scottish Water in relation to deregistered SPIDs and SPIDs transferred out, however, this was not the case - as a result of the forementioned adjustment, there is a reallocation between Debtors and Creditors, for amounts due to customers and amounts due back from Scottish Water, which had previously been included within the accrued income calculation - reallocation of bank loans due in less than one year
12. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 0.01 each
27,919
279
27,919
279
--------
----
--------
----
13. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
22,041
1,392
Later than 1 year and not later than 5 years
19,702
4,872
--------
-------
41,743
6,264
--------
-------
14. Summary audit opinion
The auditor's report dated 30 January 2025 was unqualified .
The senior statutory auditor was Walter Raymond Paterson , for and on behalf of McDonald Gordon & Co Ltd .
15. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2024
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Balance outstanding
£
£
£
£
R B Green
76,735
( 27,500)
49,235
T P Mitford-Barberton
31,907
31,907
----
---------
--------
--------
108,642
( 27,500)
81,142
----
---------
--------
--------
2023
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Balance outstanding
£
£
£
£
R B Green
T P Mitford-Barberton
----
----
----
----
----
----
----
----
These loans are repayable on demand and interest is charged at the Bank of England base rate plus 2%
16. Related party transactions
Trade Debtors includes a sum due by Brightwaste Ltd of £ 26,414 (2023 £19,405). The director Roger Green is also a director of Brightwaste Ltd.