Caseware UK (AP4) 2023.0.135 2023.0.135 2024-05-312024-05-31truetrue121truetruetruetrue2023-06-01false124falsefalse 02863196 2023-06-01 2024-05-31 02863196 2022-06-01 2023-05-31 02863196 2024-05-31 02863196 2023-05-31 02863196 c:Director1 2023-06-01 2024-05-31 02863196 c:Director2 2023-06-01 2024-05-31 02863196 c:Director3 2023-06-01 2024-05-31 02863196 c:Director4 2023-06-01 2024-05-31 02863196 c:Director4 2024-05-31 02863196 c:RegisteredOffice 2023-06-01 2024-05-31 02863196 d:PlantMachinery 2023-06-01 2024-05-31 02863196 d:PlantMachinery 2024-05-31 02863196 d:PlantMachinery 2023-05-31 02863196 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 02863196 d:MotorVehicles 2023-06-01 2024-05-31 02863196 d:MotorVehicles 2024-05-31 02863196 d:MotorVehicles 2023-05-31 02863196 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 02863196 d:FurnitureFittings 2023-06-01 2024-05-31 02863196 d:FurnitureFittings 2024-05-31 02863196 d:FurnitureFittings 2023-05-31 02863196 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 02863196 d:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 02863196 d:CurrentFinancialInstruments 2024-05-31 02863196 d:CurrentFinancialInstruments 2023-05-31 02863196 d:Non-currentFinancialInstruments 2024-05-31 02863196 d:Non-currentFinancialInstruments 2023-05-31 02863196 d:CurrentFinancialInstruments d:WithinOneYear 2024-05-31 02863196 d:CurrentFinancialInstruments d:WithinOneYear 2023-05-31 02863196 d:Non-currentFinancialInstruments d:AfterOneYear 2024-05-31 02863196 d:Non-currentFinancialInstruments d:AfterOneYear 2023-05-31 02863196 d:UKTax 2023-06-01 2024-05-31 02863196 d:UKTax 2022-06-01 2023-05-31 02863196 d:ShareCapital 2024-05-31 02863196 d:ShareCapital 2023-05-31 02863196 d:RetainedEarningsAccumulatedLosses 2023-06-01 2024-05-31 02863196 d:RetainedEarningsAccumulatedLosses 2024-05-31 02863196 d:RetainedEarningsAccumulatedLosses 2022-06-01 2023-05-31 02863196 d:RetainedEarningsAccumulatedLosses 2023-05-31 02863196 d:RetainedEarningsAccumulatedLosses 2022-06-01 02863196 d:AcceleratedTaxDepreciationDeferredTax 2024-05-31 02863196 d:AcceleratedTaxDepreciationDeferredTax 2023-05-31 02863196 d:TaxLossesCarry-forwardsDeferredTax 2024-05-31 02863196 d:TaxLossesCarry-forwardsDeferredTax 2023-05-31 02863196 c:OrdinaryShareClass1 2023-06-01 2024-05-31 02863196 c:OrdinaryShareClass1 2024-05-31 02863196 c:OrdinaryShareClass1 2023-05-31 02863196 c:FRS102 2023-06-01 2024-05-31 02863196 c:Audited 2023-06-01 2024-05-31 02863196 c:FullAccounts 2023-06-01 2024-05-31 02863196 c:PrivateLimitedCompanyLtd 2023-06-01 2024-05-31 02863196 d:WithinOneYear 2024-05-31 02863196 d:WithinOneYear 2023-05-31 02863196 d:BetweenOneFiveYears 2024-05-31 02863196 d:BetweenOneFiveYears 2023-05-31 02863196 d:HirePurchaseContracts d:WithinOneYear 2024-05-31 02863196 d:HirePurchaseContracts d:WithinOneYear 2023-05-31 02863196 d:HirePurchaseContracts d:BetweenOneFiveYears 2024-05-31 02863196 d:HirePurchaseContracts d:BetweenOneFiveYears 2023-05-31 02863196 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2024-05-31 02863196 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2023-05-31 02863196 d:LeasedAssetsHeldAsLessee 2024-05-31 02863196 d:LeasedAssetsHeldAsLessee 2023-05-31 02863196 e:PoundSterling 2023-06-01 2024-05-31 iso4217:GBP xbrli:shares xbrli:pure
Company registration number: 02863196







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MAY 2024


ALPHATRACK SYSTEMS LIMITED






































img039c.png                        

 


ALPHATRACK SYSTEMS LIMITED
 


 
COMPANY INFORMATION


Directors
P Dellow 
D Fogelman 
R Wickings 




Registered number
02863196



Registered office
The Pavilion
Botleigh Grange Business Park

Hedge End

Southampton

SO30 2AF




Trading Address
Piper House
14 West Place

West Road

Harlow

Essex

CM20 2GY






Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Lynton House

7-12 Tavistock Square

London

WC1H 9LT





 


ALPHATRACK SYSTEMS LIMITED
 



CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Income and Retained Earnings
9
Statement of Financial Position
10
Notes to the Financial Statements
11 - 21

 


ALPHATRACK SYSTEMS LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

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

Business review
 
Alphatrack Systems Ltd maintained its position as a leading specialist provider of fire, life safety and electronic security services.  For the year ended 31st May 2024 our core strategy focused on growing our existing customer base and broadening our service offerings to meet evolving market needs.
We continued to address evolving industry regulations, such as the Building Safety Act, by achieving a new accreditation to deliver compliance (BM TRADA).  We also introduced technology to streamline operations, enhance efficiency, and improve service quality.
Despite a challenging economic environment marked by inflationary pressures, rising material costs, and increased insurance premiums, we remained committed to our long-term vision of sustainable growth.

Principal risks and uncertainties
 
The Directors consider that the company’s principal business risks are normal trading risks along with the uncertainty caused by the wider economic environment.  The directors have systems in place to monitor and mitigate the risks and uncertainties that are faced.
Liquidity risk
The Company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the Company has sufficient liquid resources to meet the operating needs of the business.
Credit risk
The Company places its cash with creditworthy institutions and performs ongoing credit evaluations of its debtors' financial condition. The carrying amount of cash and debtors represent the maximum credit risk that the Company is exposed to. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary. All customers who wish to trade on credit terms are subject to credit verification procedures.
Price risk
The Directors consider the Company faces the usual pricing risk of any other Company operating in a competitive, commercial environment. The Company ensures it continues to offer competitive pricing whilst at the same time maintaining its high standard of customer service.

Financial key performance indicators
 
The Directors use turnover growth, gross profit percentage and operating profit as Key Performance Indicators for the Company.

2024
2023
Turnover Growth (year on year)

7.9%

10.8%
 
Gross Profit %

25.1%

23.0%
 
Profit before tax

£1.39m

£0.79m
 

Page 1

 


ALPHATRACK SYSTEMS LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024


This report was approved by the board and signed on its behalf.



P Dellow
Director

Date: 20 February 2025
Page 2

 


ALPHATRACK SYSTEMS LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024

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

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The principal activity of the Company continued to be that of the design, supply, installation and maintenance of electronic security and fire and life safety systems.

Results and dividends

The profit for the year, after taxation, amounted to £1,200,467 (2023 - £638,557).

Dividends of £1,000,000 were paid in the year (2023: £Nil). No further dividends have been declared.

Directors

The Directors who served during the year were:

P Dellow 
D Fogelman 
R Wickings 
H Mackenzie-Smith (resigned 16 January 2024)

Future developments

Management expects the Company to continue operating successfully in its chosen markets.

Matters covered in the Strategic Report

The Company has chosen in accordance with Section 414C(II) of the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 to set out within the Company’s Strategic Report, the information required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the Directors' Report, such as the business review and details of the principal risks and uncertainties.

Page 3

 


ALPHATRACK SYSTEMS LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

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

Auditors

The auditorsMenzies LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





P Dellow
Director

Date: 20 February 2025
Page 4

 


ALPHATRACK SYSTEMS LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ALPHATRACK SYSTEMS LIMITED

Opinion


We have audited the financial statements of Alphatrack Systems Limited (the 'Company') for the year ended 31 May 2024, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, including a summary of significant accounting policiesThe 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.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 


ALPHATRACK SYSTEMS LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ALPHATRACK SYSTEMS LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the 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 Directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 


ALPHATRACK SYSTEMS LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ALPHATRACK SYSTEMS LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:

Companies Act 2006;
Financial Reporting Standard 102;
UK employment legislation;
UK tax legislation;

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

We understood how the Company is complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of relevant documentation.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. No issues were identified in this area. We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

Posting of unusual journals and complex transactions; or
The use of management override of controls to manipulate results, or to cause the Company to enter into transactions not in its best interests.


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


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


Page 7

 


ALPHATRACK SYSTEMS LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ALPHATRACK SYSTEMS LIMITED (CONTINUED)

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 2006Our 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 Auditors' 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.





Robin Hopkins FCA (Senior Statutory Auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Lynton House
7-12 Tavistock Square
London
WC1H 9LT

20 February 2025
Page 8

 


ALPHATRACK SYSTEMS LIMITED
 


 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
Note
£
£

  

Turnover
 4 
23,352,366
21,637,469

Cost of sales
  
(17,497,789)
(16,656,434)

Gross profit
  
5,854,577
4,981,035

Administrative expenses
  
(4,455,605)
(4,192,809)

Operating profit
 5 
1,398,972
788,226

Interest payable and similar expenses
 8 
(13,185)
-

Profit before tax
  
1,385,787
788,226

Tax on profit
 9 
(185,320)
(149,669)

Profit after tax
  
1,200,467
638,557

  

  

Retained earnings at the beginning of the year
  
4,912,823
4,274,266

Profit for the year
  
1,200,467
638,557

Dividends declared and paid
  
(1,000,000)
-

Retained earnings at the end of the year
  
5,113,290
4,912,823
The notes on pages 11 to 21 form part of these financial statements.
Page 9

 


ALPHATRACK SYSTEMS LIMITED
REGISTERED NUMBER:02863196



STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 11 
489,493
490,357

  
489,493
490,357

Current assets
  

Stocks
 12 
2,048,975
1,628,335

Debtors: amounts falling due within one year
 13 
7,841,828
5,430,936

Cash at bank and in hand
  
223,645
1,561,460

  
10,114,448
8,620,731

Creditors: amounts falling due within one year
 14 
(5,276,426)
(3,938,115)

Net current assets
  
 
 
4,838,022
 
 
4,682,616

Total assets less current liabilities
  
5,327,515
5,172,973

Creditors: amounts falling due after more than one year
 15 
(146,246)
(149,820)

Provisions for liabilities
  

Deferred tax
 17 
(66,979)
(109,330)

  
 
 
(66,979)
 
 
(109,330)

Net assets
  
5,114,290
4,913,823


Capital and reserves
  

Called up share capital 
 18 
1,000
1,000

Profit and loss account
 19 
5,113,290
4,912,823

  
5,114,290
4,913,823


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




P Dellow
D Fogelman
Director
Director


Date: 20 February 2025

The notes on pages 11 to 21 form part of these financial statements.
Page 10

 


ALPHATRACK SYSTEMS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1.


General information

Alphatrack Systems Limited is a private company limited by shares incorporated in England and Wales. The
registered office is The Pavilion, Botleigh Grange Business Park, Hedge End, Southampton, Hampshire, SO30 2AF.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of SCCI Group Limited as at 31 May 2024 and these financial statements may be obtained from Companies House.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Revenue on projects is recognised based on the stage of completion of the work completed.  Any unbilled amounts are included within accrued income.

 
2.4

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 11

 


ALPHATRACK SYSTEMS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 12

 


ALPHATRACK SYSTEMS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)


2.8
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
20%
straight line
Motor vehicles
-
25%
straight line
Fixtures and fittings
-
20%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.10

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.11

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Page 13

 


ALPHATRACK SYSTEMS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)


2.11
Financial instruments (continued)


Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

 
2.12

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies 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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Accrued income
Recognition of revenue on contracts is based on judgements made about the value of work which can be billed. Such judgements are arrived at based on the Directors' best estimate of the value of work, and are estimated on a contract by contract basis. The Company has appropriate control procedures to ensure all estimates are determined on a consistent basis and subject to appropriate review. 
Work in progress
Work in progress is estimated based on an assessment of the profitability and stage of completion of contracts. The Company has appropriate control procedures to ensure all estimates are determined on a consistent basis and subject to appropriate review. 
Stock provisions
Stock is reviewed based on the ageing of items held and provision made for any stock which has not moved for more than 12 months or where it is known that the items of stock may have a value less than cost. 


4.


Turnover

The whole of the turnover is attributable to the services provided in relation to the Company's principal activity.

All turnover arose within the United Kingdom.

Page 14

 


ALPHATRACK SYSTEMS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Other operating lease rentals
52,987
38,178


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
17,750
11,025


7.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
4,813,115
4,559,048

Social security costs
488,767
486,109

Cost of defined contribution scheme
92,221
90,915

5,394,103
5,136,072


The average monthly number of employees, including the Directors, during the year was as follows:


        2024
        2023
            No.
            No.







Administrative
63
61



Engineers
58
63

121
124

Page 15

 


ALPHATRACK SYSTEMS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

8.


Interest payable and similar expenses

2024
2023
£
£


Finance leases and hire purchase contracts
13,185
-

13,185
-


9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
292,948
121,501

Adjustments in respect of previous periods
(65,277)
-


Total current tax
227,671
121,501

Deferred tax


Origination and reversal of timing differences
(42,351)
28,168

Total deferred tax
(42,351)
28,168


Tax on profit
185,320
149,669
Page 16

 


ALPHATRACK SYSTEMS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 20%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,385,787
788,226


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20%)
346,447
157,645

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
637
1,411

Capital allowances for year in excess of depreciation
-
(13,669)

Adjustments to tax charge in respect of prior periods
(65,277)
-

Tax rate changes
-
5,630

Other differences leading to an increase (decrease) in the tax charge
-
(1,348)

Group relief
(96,487)
-

Total tax charge for the year
185,320
149,669


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


10.


Dividends

2024
2023
£
£


Final paid
1,000,000
-

Page 17

 


ALPHATRACK SYSTEMS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

11.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 June 2023
35,983
967,368
151,018
1,154,369


Additions
-
198,118
9,063
207,181


Disposals
-
(199,838)
(626)
(200,464)



At 31 May 2024

35,983
965,648
159,455
1,161,086



Depreciation


At 1 June 2023
27,004
531,430
105,578
664,012


Charge for the year on owned assets
3,447
179,691
17,952
201,090


Disposals
-
(193,509)
-
(193,509)



At 31 May 2024

30,451
517,612
123,530
671,593



Net book value



At 31 May 2024
5,532
448,036
35,925
489,493



At 31 May 2023
8,979
435,938
45,440
490,357

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Motor vehicles
449,700
425,033

449,700
425,033


12.


Stocks

2024
2023
£
£

Work in progress
594,004
371,275

Finished goods and goods for resale
1,454,971
1,257,060

2,048,975
1,628,335


Page 18

 


ALPHATRACK SYSTEMS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

13.


Debtors

2024
2023
£
£


Trade debtors
2,343,938
2,228,686

Amounts owed by group undertakings
1,067,273
220,928

Other debtors
107,383
163,341

Prepayments and accrued income
4,212,905
2,778,981

Tax recoverable
110,329
39,000

7,841,828
5,430,936



14.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
2,084,934
1,479,501

Other taxation and social security
660,062
644,436

Obligations under finance lease and hire purchase contracts
163,306
128,358

Other creditors
59,521
78,488

Accruals and deferred income
2,308,603
1,607,332

5,276,426
3,938,115


Contributions totalling £20,021 (2023 - £18,461) were payable in relation to pension contributions at the year end and are included in other creditors above.


15.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Net obligations under finance leases and hire purchase contracts
146,246
149,820

146,246
149,820


Page 19

 


ALPHATRACK SYSTEMS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

16.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
163,306
128,358

Between 1-5 years
146,246
149,820

309,552
278,178

Finance lease payments represent rentals payable by the Company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Net obligations under finance leases are secured on the assets concerned.


17.


Deferred taxation




2024


£






At beginning of year
(109,330)


Charged to profit or loss
42,351



At end of year
(66,979)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(69,287)
(111,482)

Retirement benefit obligations
2,308
2,152

(66,979)
(109,330)


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,000 (2023 - 1,000) Ordinary shares of £1.00 each
1,000
1,000


Page 20

 


ALPHATRACK SYSTEMS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

19.


Reserves

Profit and loss account

This reserve records retained earnings and accumulated losses.


20.


Prior year adjustment

Wages and salaries for the previous period have been reclassified between cost of sales and administrative expenses, increasing cost of sales by £1,033,275.  This is following a review of revenue generating staff in the current year and to ensure the prior year is comparable.  


21.


Financial commitments, guarantees and contingent liabilities

Loans included within entities of the group that the Company is a part are secured by fixed and floating charges over the assets of the Company and the group. At the year end the loans amounted to £66,833,106 (2023: £Nil).


22.


Commitments under operating leases

At 31 May 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
23,206
35,750

Later than 1 year and not later than 5 years
-
23,206

23,206
58,956


23.


Controlling party

The immediate parent company is SCCI Alphatrack Limited and the ultimate parent company is Project Wexler Topco Limited.  Both companies registered office is the same as the Company.
The smallest group into which the Company is consolidated is that headed by SCCI Group Limited, also with the same registered office.  The largest group into which the Company is consolidated is that headed by Project Wexler Topco Limited. A copy of the consolidated accounts are available from Companies House on request. 
The Company's ultimate controlling party is Cadence Wexler GP LLP, an entity located in the United Kingdom.

 
Page 21