Company registration number 07184556 (England and Wales)
SAACKE COMBUSTION SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SAACKE COMBUSTION SERVICES LIMITED
COMPANY INFORMATION
Director
Mr J de Almeida
Secretary
Mr D C Murray (Appointed 15/06/2024)
Company number
07184556
Registered office
Langstone Technology Park
Langstone Road
Hampshire
Havant
PO9 1SA
Auditor
Sumer Audit
Piper House
4 Dukes Court
Bognor Road
Chichester
West Sussex
PO19 8FX
Bankers
Lloyds Bank plc
38 London Road
North End
Portsmouth
Hampshire
PO2 0LR
Solicitors
Coffin Mew LLP
Bay House
Compass Road
North Harbour Business Park
Portsmouth
Hampshire
PO6 4RS
SAACKE COMBUSTION SERVICES LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 23
SAACKE COMBUSTION SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The director presents the strategic report for the year ended 31 December 2024.
Review of the business
The director is pleased to report that the company is continuing to consolidate and expand its business operations both in the United Kingdom and Ireland, together with support for SAACKE Group activities overseas, with the main strategy continuing to be the provision of exceptional customer care and service.
The turnover for the year was £12,223,087, an increase of 13% over the previous year's turnover of £10,837,259. The profit for the financial year after tax was £1,193,906 (2023: £1,158,068). The company continued to focus on its marketing strategy and strict control of costs and overheads to ensure another strong financial performance for the year.
The company's financial position at the year end remains strong with net assets of £1,124,532 (2023: £2,963,674).
Principal risks and uncertainties
The main risk to the company is that of fluctuations in general economic conditions. This risk is mitigated with aftersales services. Specific risks include exchange rate fluctuations and loss of key personnel. The company's management is continually seeking new sales opportunities and taking positive action to retain and develop the company's existing customer base.
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.
Investments of cash surpluses are made through banks approved by company policy.
Customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Key performance indicators
The key performance indicators that the directors monitor regarding financial performance are:
Mr J de Almeida
Director
10 March 2025
SAACKE COMBUSTION SERVICES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
The director presents his annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activities of the company during the year under review were the supply, installation and servicing of industrial and marine combustion and energy systems together with the sale of spare parts.
Results and dividends
The results for the year are set out on page 8.
The director is pleased to report another excellent and profitable years trading.
The company paid an ordinary dividend of £3,033,048 during the year under review.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr J de Almeida
Future developments
The director is committed to ensuring that the company reacts positively to both the changing economic environment and the requirements of its customers.
The director anticipates the business environment will be challenging and competitive but believes the company is in a good financial position to deal with the challenges moving forward.
Auditor
In accordance with the company's articles, a resolution proposing that Sumer Audit be reappointed as auditor of the company will be put at a General Meeting.
Principal risks and uncertainties
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of risks and uncertainties.
Statement of disclosure to auditor
The director in office at the date of approval of this annual report confirms 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 he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
SAACKE COMBUSTION SERVICES LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
On behalf of the board
Mr J de Almeida
Director
10 March 2025
SAACKE COMBUSTION SERVICES LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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.
SAACKE COMBUSTION SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SAACKE COMBUSTION SERVICES LIMITED
- 5 -
Opinion
We have audited the financial statements of SAACKE Combustion Services Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, 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 significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
SAACKE COMBUSTION SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SAACKE COMBUSTION SERVICES LIMITED
- 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 director's 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
Obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements and operations;
Obtaining an understanding of the company’s policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud; and
Discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud through our knowledge and understanding of the company and our sector-specific experience.
As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: employment law, and compliance with the UK Companies Act.
SAACKE COMBUSTION SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SAACKE COMBUSTION SERVICES LIMITED
- 7 -
In addition to the above, our procedures to respond to risks identified included the following:
Making enquiries of management, about any known or suspected instances of non-compliance with laws and regulations and fraud;
Reading correspondence with regulators;
Challenging assumptions and judgements made by management in their significant accounting estimates; and
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
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.
Jordan Abbott BSc ACA (Senior Statutory Auditor)
For and on behalf of Sumer Audit
11 March 2025
Chartered Accountants
Statutory Auditor
Chichester
Sumer Audit is the trading name of Sumer Auditco Limited
SAACKE COMBUSTION SERVICES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
12,223,087
10,837,259
Cost of sales
(4,708,265)
(3,777,705)
Gross profit
7,514,822
7,059,554
Administrative expenses
(5,925,626)
(5,599,080)
Operating profit
4
1,589,196
1,460,474
Interest receivable and similar income
7
37,574
57,823
Interest payable and similar expenses
8
(8,972)
(1,323)
Profit before taxation
1,617,798
1,516,974
Tax on profit
9
(423,892)
(358,906)
Profit for the financial year
1,193,906
1,158,068
The profit and loss account has been prepared on the basis that all operations are continuing operations.
SAACKE COMBUSTION SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
£
£
Profit for the year
1,193,906
1,158,068
Other comprehensive income
-
-
Total comprehensive income for the year
1,193,906
1,158,068
SAACKE COMBUSTION SERVICES LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
189,246
301,698
Current assets
Stocks
13
608,886
737,867
Debtors
14
2,581,271
4,868,633
Cash at bank and in hand
675,189
1,005,606
3,865,346
6,612,106
Creditors: amounts falling due within one year
15
(2,930,060)
(3,950,130)
Net current assets
935,286
2,661,976
Net assets
1,124,532
2,963,674
Capital and reserves
Called up share capital
17
350,000
350,000
Profit and loss reserves
774,532
2,613,674
Total equity
1,124,532
2,963,674
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 10 March 2025
Mr J de Almeida
Director
Company registration number 07184556 (England and Wales)
SAACKE COMBUSTION SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
350,000
1,455,606
1,805,606
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,158,068
1,158,068
Balance at 31 December 2023
350,000
2,613,674
2,963,674
Year ended 31 December 2024:
Profit and total comprehensive income
-
1,193,906
1,193,906
Dividends
10
-
(3,033,048)
(3,033,048)
Balance at 31 December 2024
350,000
774,532
1,124,532
SAACKE COMBUSTION SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
3,075,263
544,655
Interest paid
(8,972)
(1,323)
Income taxes paid
(381,295)
(317,017)
Net cash inflow from operating activities
2,684,996
226,315
Investing activities
Purchase of tangible fixed assets
(27,644)
(236,400)
Proceeds from disposal of tangible fixed assets
31,150
48,698
Interest received
37,574
57,823
Net cash generated from/(used in) investing activities
41,080
(129,879)
Financing activities
Dividends paid
(3,033,048)
Net cash used in financing activities
(3,033,048)
-
Net (decrease)/increase in cash and cash equivalents
(306,972)
96,436
Cash and cash equivalents at beginning of year
1,005,606
906,867
Effect of foreign exchange rates
(23,445)
2,303
Cash and cash equivalents at end of year
675,189
1,005,606
SAACKE COMBUSTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information
SAACKE Combustion Services Limited is a private company limited by shares incorporated in England and Wales. The registered number is 07184556. The registered office is Langstone Technology Park, Langstone Road, Hampshire, Havant, PO9 1SA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of VAT and trade discounts.
Revenue from the sale and installation of equipment and spares is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.Contingency sums held are released on satisfactory operation of the equipment supplied and installed.
Revenue for the provision of engineering services is recognised by reference to the date of completion, when the labour and material costs incurred can be accurately assessed.
Revenue from contracts is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by the costs incurred as a proportion of total costs.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of the business assets over the fair value of those assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
SAACKE COMBUSTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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
25% straight line per annum
Fixtures, fittings & equipment
25%-50% straight line per annum
Computer equipment
33.33% straight line per annum
Motor vehicles
20%-25% straight line per annum
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
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. No such indication existed at the balance sheet date.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
1.8
Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held with banks.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 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.
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 and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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.
SAACKE COMBUSTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
SAACKE COMBUSTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
The company operates a defined contribution retirement benefit scheme for the benefit of its employees and contributions payable are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases are charged against income on a straight line basis over the term of the relevant lease.
1.15
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date.Transactions in foreign currencies are recorded at the rate of exchange ruling at the dates of the transactions. Gains and losses arising on translation are included in the profit and loss account for the period.
SAACKE COMBUSTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Critical judgements
The following judgements, apart from those involving estimates, have had the most significant effect on amounts recognised in the financial statements.
Guarantee and service work
Assessment of specific costs related to guarantee and service work is carefully assessed by the managing director liaising with the service manager at the reporting year end to ensure that all necessary costs are accounted for.
Stocks
Stocks are valued at the lower of cost and net realisable value. Where stock items have not moved during the financial year under review it is company policy to write down those items on a sliding scale in accordance with SAACKE Group policy.
3
Turnover and other revenue
Turnover is analysed as set out below:
2024
2023
£
£
Turnover analysed by class of business
Supply,installation and service of equipment and sale of spare parts.
12,223,087
10,837,259
2024
2023
£
£
Turnover analysed by geographical market
Federal Republic of Germany
242,796
88,307
Other European Countries
11,144,644
10,227,863
Non European Countries
835,647
521,089
12,223,087
10,837,259
2024
2023
£
£
Other revenue
Interest income
37,574
57,823
SAACKE COMBUSTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
23,445
(2,303)
Fees payable to the company's auditor for the audit of the company's financial statements
15,500
17,220
Depreciation of owned tangible fixed assets
115,551
100,866
Profit on disposal of tangible fixed assets
(6,605)
(30,647)
Operating lease charges
356,660
309,382
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
1
1
Salaried employees
64
69
Total
65
70
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,303,448
3,352,527
Social security costs
427,542
396,636
Pension costs
317,405
352,384
4,048,395
4,101,547
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
122,532
104,733
Company pension contributions to defined contribution schemes
11,316
10,787
133,848
115,520
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
SAACKE COMBUSTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest receivable from group companies
37,574
47,001
Other interest income
10,822
Total income
37,574
57,823
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
37,574
47,001
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
8,972
1,323
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
423,892
358,906
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,617,798
1,516,974
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
404,450
356,792
Tax effect of expenses that are not deductible in determining taxable profit
3,951
2,382
Permanent capital allowances in excess of depreciation
15,491
(268)
Taxation charge for the year
423,892
358,906
SAACKE COMBUSTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
10
Dividends
2024
2023
£
£
Interim paid
3,033,048
11
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
144,998
Amortisation and impairment
At 1 January 2024 and 31 December 2024
144,998
Carrying amount
At 31 December 2024
At 31 December 2023
12
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
165,386
89,643
119,403
325,987
700,419
Additions
1,246
3,975
22,423
27,644
Disposals
(59,158)
(59,158)
At 31 December 2024
166,632
93,618
141,826
266,829
668,905
Depreciation and impairment
At 1 January 2024
131,848
89,643
62,675
114,555
398,721
Depreciation charged in the year
14,548
1,987
30,937
68,079
115,551
Eliminated in respect of disposals
(34,613)
(34,613)
At 31 December 2024
146,396
91,630
93,612
148,021
479,659
Carrying amount
At 31 December 2024
20,236
1,988
48,214
118,808
189,246
At 31 December 2023
33,538
56,728
211,432
301,698
SAACKE COMBUSTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
13
Stocks
2024
2023
£
£
Work in progress
-
29,665
Finished goods and goods for resale
608,886
708,202
608,886
737,867
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,149,865
2,557,815
Amount due from parent undertaking
9,796
23,680
Settlement to parent undertaking
-
2,039,938
Amounts due from fellow group undertakings
113
13,664
Other debtors
41,978
5,907
Prepayments and accrued income
379,519
227,629
2,581,271
4,868,633
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
378,052
742,683
Guarantee and service work
74,500
175,500
Amounts owed to group undertakings
118,327
8,801
Corporation tax
221,726
179,129
Other taxation and social security
328,662
378,972
Other creditors
12,653
28,497
Accruals and deferred income
1,796,140
2,436,548
2,930,060
3,950,130
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
317,405
352,384
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.
SAACKE COMBUSTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
350,000
350,000
350,000
350,000
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. Called-up share capital represents the nominal value of shares that have been issued.
18
Financial commitments, guarantees and contingent liabilities
During the previous period it was identified that VAT had not been charged to several Irish customers since Brexit. Preliminary advice provided is that this VAT should be paid over to the Irish Revenue and will then be reclaimed from the Irish customer.
It was also determined that VAT had been claimed from the wrong VAT authority, which preliminary advice has been to pay these amounts back to HM Revenue & Customs and reclaim from Irish Revenue.
The details of the financial effect is still to be determined but there will be minimal loss to the company as the funds will be recovered. This is expected to be concluded by April 2025.
19
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
155,265
175,149
Between two and five years
195,583
176,781
350,848
351,930
20
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
148,675
127,487
Transactions with related parties
During the year the company entered into the following transactions with related parties:
SAACKE COMBUSTION SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
20
Related party transactions
(Continued)
- 23 -
Amounts owed by the parent undertaking and fellow group undertakings, as disclosed in Note 14 to the financial statements, comprised SAACKE GmbH £9,796 (2023 - £23,680) SAACKE South Africa Pty. Ltd £113 (2023 - £13,664).
Amounts owed to the parent undertaking and fellow group undertakings, as disclosed in Note 15 to the financial statements, comprised SAACKE GmbH £112,599 (2023 - £8,801) and SAACKE AG £5,728.
Ordinary dividends of £3,033,048 were paid to the parent undertaking, SAACKE GmbH, during the year under review (2023 - £nil).
21
Ultimate controlling party
The company is a wholly owned subsidiary of SAACKE Beteiligungs GmbH which in turn is a wholly owned subsidiary of SAACKE GmbH, whose registered office is Suedweststrasse 13, 28237 Bremen, Germany.
SAACKE GmbH is wholly owned by H.SAACKE GmbH & Co. KG, Bremen which is controlled by the following ultimate shareholders H.Saacke, A.Saacke-Lumper and B.Saacke personally.
22
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,193,906
1,158,068
Adjustments for:
Taxation charged
423,892
358,906
Finance costs
8,972
1,323
Investment income
(37,574)
(57,823)
Gain on disposal of tangible fixed assets
(6,605)
(30,647)
Depreciation and impairment of tangible fixed assets
115,551
100,866
Foreign exchange gains on cash equivalents
23,445
(2,303)
Movements in working capital:
Decrease/(increase) in stocks
128,981
(49,325)
Decrease/(increase) in debtors
2,287,362
(1,141,077)
(Decrease)/increase in creditors
(1,062,667)
206,667
Cash generated from operations
3,075,263
544,655
23
Analysis of changes in net funds
1 January 2024
Cash flows
Exchange rate movements
31 December 2024
£
£
£
£
Cash at bank and in hand
1,005,606
(306,972)
(23,445)
675,189
2024-12-312024-01-01falsetruefalseCCH SoftwareCCH Accounts Production 2025.100Mr J de AlmeidaMr D C Murray (Appointed 15/06/2024)071845562024-01-012024-12-3107184556bus:Director12024-01-012024-12-3107184556bus:CompanySecretary12024-01-012024-12-3107184556bus:RegisteredOffice2024-01-012024-12-3107184556bus:Agent12024-01-012024-12-31071845562024-12-31071845562023-01-012023-12-3107184556core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3107184556core:RetainedEarningsAccumulatedLosses2024-01-012024-12-31071845562023-12-3107184556core:PlantMachinery2024-12-3107184556core:FurnitureFittings2024-12-3107184556core:ComputerEquipment2024-12-3107184556core:MotorVehicles2024-12-3107184556core:PlantMachinery2023-12-3107184556core:FurnitureFittings2023-12-3107184556core:ComputerEquipment2023-12-3107184556core:MotorVehicles2023-12-3107184556core:CurrentFinancialInstrumentscore:WithinOneYear2024-12-3107184556core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3107184556core:CurrentFinancialInstruments2024-12-3107184556core:CurrentFinancialInstruments2023-12-3107184556core:ShareCapital2024-12-3107184556core:ShareCapital2023-12-3107184556core:RetainedEarningsAccumulatedLosses2024-12-3107184556core:RetainedEarningsAccumulatedLosses2023-12-3107184556core:ShareCapital2022-12-3107184556core:RetainedEarningsAccumulatedLosses2022-12-3107184556core:ShareCapitalOrdinaryShareClass12024-12-3107184556core:ShareCapitalOrdinaryShareClass12023-12-31071845562023-12-31071845562022-12-3107184556core:Goodwill2024-01-012024-12-3107184556core:PlantMachinery2024-01-012024-12-3107184556core:FurnitureFittings2024-01-012024-12-3107184556core:ComputerEquipment2024-01-012024-12-3107184556core:MotorVehicles2024-01-012024-12-310718455612024-01-012024-12-310718455612023-01-012023-12-3107184556core:UKTax2024-01-012024-12-3107184556core:UKTax2023-01-012023-12-3107184556core:Goodwill2023-12-3107184556core:Goodwill2024-12-3107184556core:Goodwill2023-12-3107184556core:PlantMachinery2023-12-3107184556core:FurnitureFittings2023-12-3107184556core:ComputerEquipment2023-12-3107184556core:MotorVehicles2023-12-3107184556core:CurrentFinancialInstruments12024-12-3107184556core:CurrentFinancialInstruments12023-12-3107184556bus:OrdinaryShareClass12024-01-012024-12-3107184556bus:OrdinaryShareClass12024-12-3107184556bus:OrdinaryShareClass12023-12-3107184556core:WithinOneYear2024-12-3107184556core:WithinOneYear2023-12-3107184556core:BetweenTwoFiveYears2024-12-3107184556core:BetweenTwoFiveYears2023-12-3107184556bus:PrivateLimitedCompanyLtd2024-01-012024-12-3107184556bus:FRS1022024-01-012024-12-3107184556bus:Audited2024-01-012024-12-3107184556bus:FullAccounts2024-01-012024-12-31xbrli:purexbrli:sharesiso4217:GBP