Company registration number 02645390 (England and Wales)
G STOW PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
G STOW PLC
COMPANY INFORMATION
Directors
Mr B Hayward
Mr R O'Malley
Mr J Stevens
Secretary
Ms CA Stretton
Company number
02645390
Registered office
Green Lane
Walsall
WS2 7PD
Business address
Lupton Road
Wallingford
Oxfordshire
OX10 9BS
Auditors
CLA Evelyn Partners Limited
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
G STOW PLC
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
G STOW PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report and financial statements for the year ended 31 March 2024.

Review of the business

G Stow Plc experienced a mixed year during 23/24, where good levels of revenue were generated on M&E repair and maintenance work whilst drilling project opportunities were limited, due to capital expenditure constraints within the regulated water sector and the strategic opportunities identified to exist in deriving revenues from increased activity in the ground source heat and geothermal sectors failed to deliver the targeted growth. Profit generation for the year was disappointing compared to 22/23 as the business failed to deliver the anticipated revenue growth in drilling having invested in a newly recruited general manager, drilling manager and full-time finance manager which added to the business overhead costs. The M&E division did experience continued growth in revenue, as new clients have been secured and also the departmental delivered margin improvement. In addition, the business has continued to benefit from the performance on a couple of procure and supply contracts for specialist pumps and stainless-steel pipework. There is a commitment to continue to invest in the business where required or when opportunities arise, and G Stow Plc continues to benefit from its provision of specialist borehole drilling, repair and maintenance services in this niche sector and has many long standing client relationships. The business will continue to utilise its expertise in deep borehole drilling including partnering with Group companies such as OnSite and Integrated Water Services to pursue opportunities arising in the emerging Geothermal sector with Ground Source Heat open loop and borehole drilling.

Development and performance

 

The business specialises in groundwater abstraction through various methods of borehole design, drilling, rehabilitation and maintenance for the UK water industry and for commercial businesses that rely on large ground water abstractions. A full mechanical and electrical service is provided for borehole pumping, plant and surface pipework. G Stow Plc is an established market leader in the deep borehole sector and provides the highest levels of expertise, service and health and safety for commercial and domestic projects. With support from other SSI Services companies, the business can deliver ‘source to tap’ specialist engineering services, whilst operating safely and with effective environmental considerations and management of waste.

Principal risks and uncertainties

The directors and management continually monitor the key risks facing the company together with assessing the controls used for managing these risks. The directors have carefully considered the going concern in relation to the ongoing trading and have concluded that this remains appropriate, as the business has traded through 23/24 and is well placed for future growth. Employee wellbeing, and health and safety are being proactively managed in premises and on sites.

Financial risks

The company monitors its financial performance using financial key performance indicators which include turnover and operating profit analysis, EBITDA, free cash flow, trade debtor levels and aged debt, on a monthly basis to the Directors and the SSI Services (UK) group.

 

2024

2023

 

£’000

£’000

Turnover

6,131

6,088

Operating profit

152

235

EBITDA

333

410

Trade Debtors

1,190

859

Debtor Days

71

51

 

G Stow Plc operates a final salary pension scheme which is now closed to new members. During the year there was a significant comprehensive loss on the pension scheme of £480,000, due to the performance of its investments in particular relating to the performance of bonds and equities. However, the scheme remains well funded and remains in surplus to its defined benefit obligations.

G STOW PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

Price risks

The majority of the order book is derived from competitive tendering procedures. There are also a number of fixed price framework agreements in place which are subject to competitive renewal at end of the term. The cost associated with the delivery of each individual project is analysed and monitored to ensure accuracy of pricing. The cost of raw materials is closely monitored for significant changes and in particular as the business imports large amounts of stainless steel pipe from the EU any changes in the £/Euro rate which will affect prices, and to ensure these are included in all price revisions as necessary.

Credit risks

A review of credit risk is ongoing at all times and appropriate due diligence through the use of credit reports is undertaken on all potential new customers. Outstanding debts are monitored on a daily basis and reviewed at senior management level every month. The company has no significant concentration of credit risk with exposure spread over several major water and construction companies.

Cash flow risks

Cash flow is compared to budget and discussed at senior management level and group level on a monthly basis and attention given to any significant variances. Customer debts and their aged profiles are closely monitored to minimise risk and maximise collections. All capital expenditure items are subject to director review and approval.

The directors believe all the significant risks faced by the company are appropriately managed.

On behalf of the board

Mr R O'Malley
Director
8 March 2025
G STOW PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

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

Principal activities
The principal activity of the company continued to be that of waterworks engineers and contractors.
Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. 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:

Mr S Dray
(Resigned 15 May 2024)
Mr S Thomas
(Resigned 31 January 2025)
Mr B Hayward
(Appointed 9 January 2024)
Mr R O'Malley
(Appointed 18 May 2023)
Mr J Stevens
(Appointed 6 November 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:

 

 

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.

G STOW PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
On behalf of the board
Mr R O'Malley
Director
8 March 2025
G STOW PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF G STOW PLC
- 5 -
Opinion

We have audited the financial statements of G Stow plc (the 'company') for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

G STOW PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF G STOW PLC (CONTINUED)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either 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.

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.

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

G STOW PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF G STOW PLC (CONTINUED)
- 7 -

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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.

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
12 March 2025
Chartered Accountants
Statutory Auditor
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
G STOW PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
6,130,735
6,088,385
Cost of sales
(5,194,246)
(5,343,942)
Gross profit
936,489
744,443
Administrative expenses
(784,238)
(529,189)
Other operating income
-
0
19,590
Operating profit
4
152,251
234,844
Interest receivable and similar income
7
258,000
232,025
Interest payable and similar expenses
8
(224,000)
(191,000)
Profit before taxation
186,251
275,869
Tax on profit
9
13,030
(510)
Profit for the financial year
199,281
275,359
Other comprehensive expense
Actuarial losses on defined benefit pension schemes
(480,000)
(852,000)
Tax relating to other comprehensive expense
111,926
204,837
Total comprehensive expense for the year
(168,793)
(371,804)

The accompanying accounting policies and notes form part of these financial statements.

 

The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

G STOW PLC
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
854,899
1,017,580
Current assets
Stocks
11
198,303
140,570
Debtors
12
1,772,042
1,847,542
Cash at bank and in hand
934,236
822,534
2,904,581
2,810,646
Creditors: amounts falling due within one year
13
(1,825,413)
(2,049,410)
Net current assets
1,079,168
761,236
Total assets less current liabilities
1,934,067
1,778,816
Provisions for liabilities
Deferred tax liability
14
184,045
309,001
(184,045)
(309,001)
Net assets excluding pension surplus
1,750,022
1,469,815
Defined benefit pension surplus
15
274,813
723,813
Net assets
2,024,835
2,193,628
Capital and reserves
Called up share capital
16
300,000
300,000
Capital redemption reserve
800,000
800,000
Profit and loss reserves
924,835
1,093,628
Total equity
2,024,835
2,193,628
The financial statements were approved by the board of directors and authorised for issue on 8 March 2025 and are signed on its behalf by:
Mr R O'Malley
Director
Company registration number 02645390 (England and Wales)
G STOW PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022
300,000
800,000
1,465,432
2,565,432
Year ended 31 March 2023:
Profit
-
-
275,359
275,359
Other comprehensive expense:
Actuarial losses on defined benefit plans
-
-
(852,000)
(852,000)
Tax relating to other comprehensive expense
-
-
204,837
204,837
Total comprehensive expense
-
-
(371,804)
(371,804)
Balance at 31 March 2023
300,000
800,000
1,093,628
2,193,628
Year ended 31 March 2024:
Profit
-
-
199,281
199,281
Other comprehensive expense:
Actuarial losses on defined benefit plans
-
-
(480,000)
(480,000)
Tax relating to other comprehensive expense
-
-
111,926
111,926
Total comprehensive expense
-
-
(168,793)
(168,793)
Balance at 31 March 2024
300,000
800,000
924,835
2,024,835
G STOW PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
84,367
430
Investing activities
Purchase of tangible fixed assets
(37,665)
(56,889)
Proceeds from disposal of tangible fixed assets
65,000
10,000
Interest received
-
0
25
Net cash generated from/(used in) investing activities
27,335
(46,864)
Net increase/(decrease) in cash and cash equivalents
111,702
(46,434)
Cash and cash equivalents at beginning of year
822,534
868,968
Cash and cash equivalents at end of year
934,236
822,534
G STOW PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

G Stow plc is a public company limited by shares incorporated in England and Wales. The registered office is Green Lane, Walsall, WS2 7PD. The principal place of business is Lupton Road, Wallingford, Oxon, OX10 9BS.

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 presented 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 using the historical cost convention.

1.2
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for all services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the costs incurred to date and to complete can be estimated reliably. The stage of completion is calculated by way of assessment of costs incurred to date in relation to contractual hourly staff rates and materials. Applications for payment are then subsequently made, agreed by customers and then invoiced, with an amount retained for subsequent payment within 12 months.

1.3
Tangible fixed assets

Tangible fixed assets are initially and subsequently measured at cost, 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:

Plant and machinery
10% to 33% per annum on cost
Fixtures, fittings & equipment
20% to 33% per annum on cost

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.

1.4
Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.

1.5
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.

Stock is valued using the weighted average cost method.

G STOW PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -

Stock is assessed for impairment throughout the year and written down to its net realisable value, where applicable.

 

Excess stock purchased for specific contracts which cannot be used elsewhere is written down to its net realisable value following completion of works.

1.6
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.

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.

1.7
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.

Deferred tax

Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

 

Deferred tax assets are recognised to the extent that it can be assessed with reasonable certainty that the asset will crystalise in the foreseeable future.

G STOW PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.8
Retirement benefits

The company operates both a defined contribution retirement benefit scheme and a defined benefit retirement benefit scheme.

 

(i) Defined contribution pension plan

 

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 when they are due. The assets of the plan are held separately from the company in independently administered funds.

(ii) Defined benefit pension plan

 

The cost of providing benefits under defined benefit schemes is determined using the Projected Unit Credit Method, with actuarial valuations carried out every year. Actuarial gains and losses are recognised in full in the period in which they occur in other comprehensive income.

 

Past service cost is recognised immediately to the extent that the benefits are already vested, and otherwise is amortised on a straight line basis over the average period until the benefits become vested.

 

The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation, adjusted for unrecognised past service cost, and reduced by the fair value of scheme assets.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

1.9
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

1.10
Foreign exchange

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

G STOW PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
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.

Key sources of estimation uncertainty
Defined benefit pension scheme

The company has an obligation to pay pension benefits to certain past and current employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations, and the discount rate on corporate bonds. Management engage an actuary to estimate these factors in determining the net present obligation in the balance sheet. An interim valuation at 31 March 2024 has been undertaken which allows for the pension scheme to be adjusted to its fair value at the balance sheet date and minimises any estimation uncertainty.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Provision of services
6,130,735
6,088,385
2024
2023
£
£
Other revenue
Interest income
258,000
232,025
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
-
0
2,137
Depreciation of owned tangible fixed assets
181,120
174,785
Profit on disposal of tangible fixed assets
(45,774)
(10,000)
Operating lease charges
88,500
88,285
G STOW PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
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
26,215
18,140
For other services
All other non-audit services
6,500
4,000
6
Employees

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

2024
2023
Number
Number
Office and management
10
8
Non clerical
22
23
Total
32
31

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,505,008
1,417,253
Social security costs
155,375
157,223
Pension costs
82,048
100,629
1,742,431
1,675,105
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
-
0
25
Interest on the net defined benefit asset
258,000
232,000
Total income
258,000
232,025
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Net interest on the net defined benefit liability
224,000
191,000
G STOW PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
9
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
(13,030)
510

The actual (credit)/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
186,251
275,869
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
46,563
52,415
Tax effect of expenses that are not deductible in determining taxable profit
106
56
Effect of change in corporation tax rate
-
0
91
Group relief
(58,812)
(40,356)
Other permanent differences
(887)
(8,453)
Enhanced capital allowances
-
0
(3,243)
Taxation (credit)/charge for the year
(13,030)
510

In addition to the amount (credited)/charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
(111,926)
(204,837)
G STOW PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
10
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 April 2023
2,961,711
54,170
3,015,881
Additions
33,218
4,447
37,665
Disposals
(186,023)
-
0
(186,023)
At 31 March 2024
2,808,906
58,617
2,867,523
Depreciation and impairment
At 1 April 2023
1,963,052
35,249
1,998,301
Depreciation charged in the year
168,813
12,307
181,120
Eliminated in respect of disposals
(166,797)
-
0
(166,797)
At 31 March 2024
1,965,068
47,556
2,012,624
Carrying amount
At 31 March 2024
843,838
11,061
854,899
At 31 March 2023
998,659
18,921
1,017,580
11
Stocks
2024
2023
£
£
Raw materials and consumables
104,550
82,920
Work in progress
93,753
57,650
198,303
140,570
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,189,654
858,619
Gross amounts owed by contract customers
431,526
827,786
Amounts owed by group undertakings
7,368
-
0
Other debtors
800
800
Prepayments and accrued income
142,694
160,337
1,772,042
1,847,542
G STOW PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
13
Creditors: amounts falling due within one year
2024
2023
£
£
Loans from group undertaking
1,078,000
1,078,000
Trade creditors
345,985
686,229
Amounts owed to group undertakings
31,890
-
0
Taxation and social security
145,828
82,953
Other creditors
87,526
66,402
Accruals and deferred income
136,184
135,826
1,825,413
2,049,410
14
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
117,146
129,782
Retirement benefit obligations - defined contribution
(1,092)
(699)
Retirement benefit obligations - defined benefit
67,991
179,918
184,045
309,001
2024
Movements in the year:
£
Liability at 1 April 2023
309,001
Credit to profit or loss
(13,030)
Credit to other comprehensive expense
(111,926)
Liability at 31 March 2024
184,045
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
52,292
54,824

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.

G STOW PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
15
Retirement benefit schemes
(Continued)
- 20 -
Defined benefit schemes

The company operates one defined benefit scheme in the UK which offers both pensions in retirement and death benefits to members. Pension benefits are related to each member's final salary at retirement and their length of service. Since 1 April 2007 the scheme has been closed to new members, and from 22 June 2017 the scheme ceased future accrual of benefits.

 

The scheme is currently funded by way of contributions made by the company at the rate of £26,756 (2023: £34,805) per annum to cover expenses. At the balance sheet date, £3,031 (2023: £5,694) was payable in respect of annual contributions.

 

The company obtained an actuarial valuation of the pension scheme's liabilities at 31 March 2024.

 

The actuarial valuation of the pension scheme at 31 March 2024 identified that the scheme's fair value of plan assets exceeded the estimated present value of funded obligations.

2024
2023
Key assumptions
%
%
Discount rate
4.80
4.70
Expected rate of increase of pensions in payment
2.25 - 3.25
2.25 - 3.35
Expected rate of salary increases
N/A
N/A
Revaluation in deferment
2.95
2.90
Pension increases post 10
2.25
2.90
Mortality assumptions
2024
2023

Assumed life expectations on retirement at age 65:

Years
Years
Retiring today
- Males
22.8
22.5
- Females
24.4
24.3
Retiring in 20 years
- Males
24
23.7
- Females
25.8
25.7
Amounts recognised in the profit and loss account
2024
2023
Costs/(income):
£
£
Net interest on net defined benefit liability/(asset)
(34,000)
(41,000)
Other costs and income
3,000
11,000
Total costs/(income)
(31,000)
(30,000)

Of the total charges to profit and loss for the period, £3,000 (2023 - £11,000) is included in administration expenses, £258,000 (2023 - £232,000) in investment income and £224,000 (2023 - £191,000) in finance costs.

G STOW PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
15
Retirement benefit schemes
(Continued)
- 21 -
Amounts recognised in other comprehensive income
2024
2023
Costs/(income):
£
£
Actual return on scheme assets
193,000
2,562,000
Less: calculated interest element
258,000
232,000
Return on scheme assets excluding interest income
451,000
2,794,000
Actuarial changes related to obligations
29,000
(1,942,000)
Total costs
480,000
852,000

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

2024
2023
Liabilities/(assets):
£
£
Present value of defined benefit obligations
4,872,000
4,912,000
Fair value of plan assets
(5,146,813)
(5,635,813)
Surplus in scheme
(274,813)
(723,813)

The company received an actuarial valuation of the pension scheme as at 31 March 2024 and the financial statements have been adjusted accordingly to reflect this valuation.

2024
Movements in the present value of defined benefit obligations
£
Liabilities at 1 April 2023
4,912,000
Benefits paid
(293,000)
Actuarial gains and losses
29,000
Interest cost
224,000
At 31 March 2024
4,872,000

The defined benefit obligations arise from plans which are wholly or partly funded.

2024
Movements in the fair value of plan assets
£
Fair value of assets at 1 April 2023
5,635,813
Interest income
258,000
Return on plan assets (excluding amounts included in net interest)
(451,000)
Benefits paid
(293,000)
Other
(3,000)
At 31 March 2024
5,146,813
G STOW PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
15
Retirement benefit schemes
(Continued)
- 22 -

 

2024
2023
Fair value of plan assets
£
£
Equity instruments
947,610
948,898
Debt instruments
3,624,390
4,004,799
Property
49,057
99,653
Liquid assets
268,017
315,448
Alternatives
257,739
267,015
5,146,813
5,635,813

The proportion of scheme investments is Equity instruments (18%), Debt instruments (71%), Property (1%), Liquid assets (5%), Alternatives (5%).

 

The scheme assets do not include any direct investment in the company.

16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
300,000
300,000
300,000
300,000
17
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
127,707
155,270
Between two and five years
173,204
206,500
300,911
361,770
18
Ultimate controlling party

The Company's immediate parent undertaking is Integrated Water Services Limited. During the year, the ultimate parent company in the United Kingdom was Hydriades IV Limited, registered in England and Wales, which was the largest UK group preparing consolidated accounts that include G Stow Plc. The consolidated accounts for Hydriades IV Limited can be obtained from the Company’s registered office, Green Lane, Walsall, West Midlands, WS2 7PD.

 

The ultimate controlling party is Arjun Infrastructure Partners Limited a Company registered in England and Wales, which controls and manages and is the General Partner of a UK registered investment entity that acquired a majority equity interest of a holding company of the Group.

G STOW PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
19
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
199,281
275,359
Adjustments for:
Taxation (credited)/charged
(13,030)
510
Finance costs
224,000
191,000
Investment income
(258,000)
(232,025)
Gain on disposal of tangible fixed assets
(45,774)
(10,000)
Depreciation and impairment of tangible fixed assets
181,120
174,785
Pension scheme non-cash movement
3,000
11,000
Movements in working capital:
(Increase)/decrease in stocks
(57,733)
31,202
Decrease/(increase) in debtors
75,500
(15,618)
Decrease in creditors
(223,997)
(425,783)
Cash generated from operations
84,367
430
20
Analysis of changes in net debt
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
822,534
111,702
934,236
Borrowings excluding overdrafts
(1,078,000)
-
(1,078,000)
(255,466)
111,702
(143,764)
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