Company No: 05212781 (England and Wales)

Contents

• Statement of Financial Position
• Notes to the Financial Statements

	Note	2024		2023
		£		£
Fixed assets
Intangible assets	3	4,512		5,462
Tangible assets	4	327,929		281,759
		332,441		287,221
Current assets
Debtors
- due within one year	5	2,064,634		1,962,411
- due after more than one year	5	2,008,840		2,693,977
Cash at bank and in hand		548,930		468,329
		4,622,404		5,124,717
Creditors: amounts falling due within one year	6	( 1,989,097)		( 2,027,076)
Net current assets		2,633,307		3,097,641
Total assets less current liabilities		2,965,748		3,384,862
Creditors: amounts falling due after more than one year	7	( 953,548)		( 1,493,438)
Provision for liabilities		( 403,039)		( 393,382)
Net assets		1,609,161		1,498,042
Capital and reserves
Called-up share capital	8	75		75
Capital redemption reserve		25		25
Profit and loss account		1,609,061		1,497,942
Total shareholder's funds		1,609,161		1,498,042

For the financial year ending 30 September 2024 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The member has not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• 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; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

These financial statements have been prepared in accordance with the provisions of FRS 102 Section 1A – small entities. The financial statements of Sterling Capital Asset Finance Limited (registered number: 05212781) were approved and authorised for issue by the Board of Directors on 27 March 2025. They were signed on its behalf by:

F A Cannon Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Sterling Capital Asset Finance Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Hanover House The Square, Lower Bristol Road, Bath, BA2 3BH, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Statement of Financial Position and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and 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.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Employee benefits

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Statement of Income and Retained Earnings in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Statement of Financial Position.

Finance costs

Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so 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.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Intangible assets

Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

Computer software

10 years straight line

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all tangible fixed assets, other than investment properties and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Leasehold improvements	10 years straight line
Plant and machinery	5 - 15 % reducing balance
Vehicles	25 % reducing balance
Fixtures and fittings	25 % reducing balance
Office equipment	25 % reducing balance

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Leases

The Company as lessor
Amounts due from lessees under finance leases are recognised as receivables at the amount of the company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the company’s net investment outstanding in respect of leases.

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Statement of Financial Position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

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.

2. Employees

	2024		2023
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	6		5

3. Intangible assets

	Computer software		Total
	£		£
Cost
At 01 October 2023	9,500		9,500
At 30 September 2024	9,500		9,500
Accumulated amortisation
At 01 October 2023	4,038		4,038
Charge for the financial year	950		950
At 30 September 2024	4,988		4,988
Net book value
At 30 September 2024	4,512		4,512
At 30 September 2023	5,462		5,462

4. Tangible assets

	Leasehold improve- ments		Plant and machinery		Vehicles		Fixtures and fittings		Office equipment		Total
	£		£		£		£		£		£
Cost
At 01 October 2023	28,194		267,342		31,238		42,917		61,388		431,079
Additions	0		0		85,000		589		2,396		87,985
Disposals	0		0		( 30,490)		0		0		( 30,490)
At 30 September 2024	28,194		267,342		85,748		43,506		63,784		488,574
Accumulated depreciation
At 01 October 2023	28,191		3,870		21,112		40,393		55,754		149,320
Charge for the financial year	3		13,956		16,033		718		1,458		32,168
Disposals	0		0		( 20,843)		0		0		( 20,843)
At 30 September 2024	28,194		17,826		16,302		41,111		57,212		160,645
Net book value
At 30 September 2024	0		249,516		69,446		2,395		6,572		327,929
At 30 September 2023	3		263,472		10,126		2,524		5,634		281,759

5. Debtors

	2024		2023
	£		£
Debtors: amounts falling due within one year
Trade debtors	4,746		16,844
Amounts owed by Group undertakings	4,911		26
Prepayments	89,583		0
Other debtors	1,965,394		1,945,541
	2,064,634		1,962,411
Debtors: amounts falling due after more than one year
Other debtors	2,008,840		2,693,977

6. Creditors: amounts falling due within one year

	2024		2023
	£		£
Amounts owed to directors	0		730
Accruals and deferred income	209,500		408,889
Taxation and social security	50,394		28,556
Obligations under finance leases and hire purchase contracts (secured)	14,634		0
Other creditors	1,714,569		1,588,901
	1,989,097		2,027,076

The hire purchase agreement is secured on the asset purchased.

7. Creditors: amounts falling due after more than one year

	2024		2023
	£		£
Obligations under finance leases and hire purchase contracts (secured)	21,221		0
Other creditors	932,327		1,493,438
	953,548		1,493,438

The hire purchase agreement is secured on the asset purchased.

The other creditors are secured.

8. Called-up share capital

	2024		2023
	£		£
Allotted, called-up and fully-paid
75 Ordinary shares of £ 1.00 each	75		75

9. Related party transactions

Transactions with the entity's directors

At the year end an amount of £Nil (2023: £730 ) was owed by the company to the directors. The amount is interest free and has no fixed date for repayment.

During the year, a company under common control, charged rents and recharged expenses to the company totalling £42,293 (2023: £37,336 ).

During the year the Company has taken advantage of the exemption in section 1AC.35 of FRS 102 to not disclose related party transactions with wholly owned subsidiaries within the group.