Registration number:
for the
Year Ended 31 July 2024
Shield Environmental Holdings Limited
Contents
Company Information |
|
Strategic Report |
|
Director's Report |
|
Statement of Director's Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Shield Environmental Holdings Limited
Company Information
Director |
L P House |
Company secretary |
D N Sheppard |
Registered office |
|
Auditors |
|
Shield Environmental Holdings Limited
Strategic Report for the Year Ended 31 July 2024
The director presents his strategic report for the year ended 31 July 2024.
Principal activity
The principal activity of the parent company is that of a holding company.
The company owns 100% of the share capital of Shield Environmental Services Limited whose principal activity is that of asbestos removal and treatment, marine works, scaffolding and the provision of insulation services and supplies.
The company owns 70% of the share capital of Shield Mechanical Electrical & Facilities Services Limited, whose principal activity is that of electrical installation.
The company owns 70% of the share capital in Shield Fire and Security Limited, whose principal activity is that of the installation of fire and security systems.
The company owns 100% of the share capital of Shield Demolition Limited and Shield Flooring Services Limited. The principal activity of both companies is that of a non-trading company.
Fair review of the business
The results for the year which are set out in the profit and loss account show turnover of £49,360,359 (2023: £47,595,736), an operating profit of £1,391,231 (2023: £3,288,568) and a gross profit margin of 34% (2023: 35%). At 31 July 2024 the group had net assets of £12,527,643 (2023: £13,462,287). The director considers the performance for the year and the financial position at the year end to be satisfactory.
The group uses a number of indicators to monitor and improve the development, performance and the position of the business. Indicators are reviewed and altered to meet changes in both the internal and external environment. The key performance indicators are turnover, gross profit and operating profit.
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2024 |
2023 |
Revenue |
£ |
49,360,359 |
47,595,736 |
Gross profit |
£ |
16,879,237 |
16,435,923 |
Operating profit |
£ |
1,391,231 |
3,288,568 |
Future developments
The director will continue to look at all opportunities to develop and grow the business. There are cash resources available which gives the business capacity to invest in areas that offer opportunity for growth.
Principal risks and uncertainties
The principal risks to the company and the group are those which apply to its trading subsidiaries. The management of the business and the nature of the group's strategy are subject to a number of risks. The director has set out below the principal risks facing the business. In common with most UK businesses, inflationary pressure in the economy and its impact on the broader economic outlook will present potential risks and challenges to the business.
The director is of the opinion that a thorough risk management process is adopted which involves the formal review of all potential risks. Where possible, processes are in place to monitor and mitigate such risks and as a result the director believes that the group is well placed to respond to these risks.
Health and Safety
The asbestos removal elements of the group's operations are regulated. Failure to maintain the highest standards of Health and Safety to protect both customers and employees could result in the company being denied an operating license for its asbestos removal activities.
The group actively manages the Health and Safety environment in which it operates in the form of a full time Health and Safety Officer, a Health and Safety Committee chaired by the Managing Director, regular training and frequent audits of live projects.
Shield Environmental Holdings Limited
Strategic Report for the Year Ended 31 July 2024
Section 172 statement
The Director of the group is required to promote the success of the group for the benefit of the Members / Shareholders as a whole. Section 172(1) of the Companies Act 2006) expands this duty and requires the Director to consider a broader range of interested parties when considering the promotion of the group. This wider group of stakeholders will include employees, customers, regulators and others, and the Board will look to understand and take into account the needs of each stakeholder, although recognising that different stakeholders may have conflicting priorities and not all decisions made will be to the benefit of all stakeholder groups. When making decisions the Board should consider the following:
• the likely consequences of any decisions in the long-term;
• the interests of the group’s employees;
• the need to foster the group’s business relationships with suppliers, customers and others;
• the impact of the group’s operations on the community and environment;
• the desirability of the group maintaining a reputation for high standards of business conduct, and
• the need to act fairly as between members of the group
At every Board meeting the Director reviews the performance of the wider group against its strategy. The financial performance is reviewed and measured against the Key Performance Indicators as set by the Board. The compliance with existing legal and regulatory requirements are reviewed, together with any new regulations that are to be introduced or are being proposed. Any new regulations are discussed and their potential impact on the company and group and its stakeholders assessed. The Board recognises the importance of, and is committed to, understanding the views of Shareholders and maintaining communication with its Shareholders in the most appropriate manner.
The Director has identified the following groups as key stakeholders and relevant according to Section 172 Companies Act 2006:
Employees
Employees are key for the performance and development of the business. Employees are engaged and communicated with regularly on the performance, health and safety, and cultural and environmental effects of the business. Engagement is maintained with employees to ensure a strong diverse and talented workforce. With the emergence of the Coronavirus pandemic, we have adapted our working practices to ensure complete business continuity, whilst safeguarding our employees and clients.
Safety
Health & Safety considerations, as well as concern for the environment, are key to everything we do. All works are carried out in strict compliance with statutory provisions and we are accredited members of ACAD, ROSPA and NASC.
Employee involvement
It is the group's policy to maintain and develop arrangements aimed at involving employees in the group's affairs.
Meetings are held during the year and relevant training is provided.
Environment, Social and Governance (ESG)
The group continues to develop its ESG strategy to support the wider economic drive to reduce reliance on fossil fuels and to build links that the business has through the community with a robust governance throughout all levels of management.
Environment
It is widely known that the construction industry has a significant effect on the environment. The group has implemented a management system to minimise these environmental effects both internally and externally.
The following reporting is provided for the group, excluding subsidiaries that are exempt from reporting.
The reporting period is the most recent financial year 1 August 2023 to 31 July 2024. This report has been compiled in line with the EMA methodology for SECR reporting.
The company's chosen intensity ratio is emissions per square foot of total site area.
Shield Environmental Holdings Limited
Strategic Report for the Year Ended 31 July 2024
2024 |
2023 |
||
Energy consumption used to calculate emissions |
kWh |
6,707,748 |
6,295,475 |
Scope 1 emissions |
tonnes CO2e |
1,417 |
1,684 |
Scope 2 emissions |
tonnes CO2e |
81 |
118 |
Total greenhouse gas emissions |
tonnes CO2e |
1,498 |
1,802 |
Square foot of all sites |
square foot |
122,593 |
122,593 |
Greenhouse gas emissions per square foot of total site area |
tonnes CO2e |
12.22 |
14.70 |
Social
The group remains active in the local community and also continues to focus on providing a supporting environment for its employees with policies in place to provide a safe framework for employees. The group has continued to invest in supporting the training needs of its employees and actively promotes continuous learning and training for all its employees.
Governance
The group considers that it has a strong set of policies and procedures which support integrity and deliver a group that is focused on the interests of its key stakeholders - employees, shareholders, partners as well as being a highly respected part of the local community.
Employment of disabled persons
It is the group's policy to offer equal opportunities to disabled persons applying for vacancies and persons becoming disabled during employment, and provide them with the same opportunities as are available to all employees within the limitation of their aptitudes and abilities.
Approved by the
Director
Shield Environmental Holdings Limited
Director's Report for the Year Ended 31 July 2024
The director presents his report and the for the year ended 31 July 2024.
Directors of the company
The directors who held office during the year were as follows:
R J Miotla (resigned 5 December 2023)
D Howe (resigned 31 January 2025)
Information included in the Strategic Report
Information on the engagement with suppliers, customers, employees and other is included in the Strategic Report in the S172(1) statement. The group's business environment and risks, together with details of monitoring undertaken by the director and future developments are dealt with elsewhere in the Strategic Report.
Financial instruments
Objectives and policies
The group uses various financial instruments including loans, cash, preference shares and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the group's operations.
The existence of these financial instruments exposes the group to a number of financial risks. The director determines policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years.
Price risk, credit risk, liquidity risk and cash flow risk
Price risk:
Price risk is the risk that the fair value of a financial asset will fluctuate because of changes in market prices (other than those due to interest rates and currency). The group has limited exposure as it does not hold any financial instruments at fair value.
Credit risk:
Credit risk refers to a risk that a counter party will default on its contractual obligations resulting in a financial loss to the group.
The group’s principal financial assets are bank balances and cash and trade and other receivables. The group’s credit risk is primarily attributable to its trade receivables. The group's policies are aimed at minimising such losses, and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. The amounts presented in the balance sheet are, where appropriate, net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The credit risk on liquid funds is limited because the counter parties are banks with high credit-ratings assigned by international credit-rating agencies.
Liquidity risk:
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.
The group aims to mitigate liquidity risk by managing cash generation by its operations, applying cash collection targets and constantly monitors the group's trading results to ensure that the group can meet its future obligations as they fall due and to invest cash assets safely and profitably.
Cash flow risk:
Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability such as future interest payments on a variable rate loans or changes in exchange rates.
The group has limited exposure to exchange rate risk, by virtue of the limited transactions in foreign currency. The impact of potential future increases in the cost of finance is mitigated by outstanding finance leases and hire purchase contracts being arranged at fixed interest rates for the term of the agreement and the group further seeks to manage cash flow risk on variable rate bank borrowing through the same policies applied to monitor liquidity risk.
Shield Environmental Holdings Limited
Director's Report for the Year Ended 31 July 2024
Going concern
The director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future and has continued to adopt the going concern basis in preparing the financial statements.
Director's liabilities
The company has indemnified, by means of director's and officer's liability insurance, the director of the company against liability in respect of proceedings brought by third parties, subject to the conditions set out in the section 234 of the Companies Act. Such qualifying third-party indemnity provision was in force during the year and is in force at the date of approving the Director's Report.
Disclosure of information to the auditor
The director has taken 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 auditor is aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.
Approved by the
Director
Shield Environmental Holdings Limited
Statement of Director's Responsibilities
The director is responsible for preparing the Strategic Report, Director's 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 group and of the company and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
• | select suitable accounting policies and 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; and |
• | 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Shield Environmental Holdings Limited
Independent Auditor's Report to the Members of Shield Environmental Holdings Limited
Opinion
We have audited the financial statements of Shield Environmental Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated 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 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 group's and the parent company's affairs as at 31 July 2024 and of the group's profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and 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 Director's Report have been prepared in accordance with applicable legal requirements. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities set out on page 7, 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 group’s and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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.
Matters on which we are required to report by exception
In the light of our 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 and the Director's Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
Shield Environmental Holdings Limited
Independent Auditor's Report to the Members of Shield Environmental Holdings Limited
• |
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• |
the parent company 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. |
Other information
The director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
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 original financial statements were 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.
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.
Extent to which the audit was capable of detecting irregularities, including fraud
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 considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
Shield Environmental Holdings Limited
Independent Auditor's Report to the Members of Shield Environmental Holdings Limited
In common with all audits conducted in accordance with the ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
• |
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;. |
• |
enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and |
• |
reading minutes of meetings of those charged with governance. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
For and on behalf of
Windsor House
Bayshill Road
GL50 3AT
Shield Environmental Holdings Limited
Consolidated Profit and Loss Account for the Year Ended 31 July 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
- |
|
Interest payable and similar expenses |
( |
( |
|
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
|
Minority interests |
|
|
|
|
|
The above results were derived from continuing operations.
The group has no recognised gains or losses for the year other than the results above.
Shield Environmental Holdings Limited
(Registration number: 05938654)
Consolidated Balance Sheet as at 31 July 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
3,632,466 |
2,635,348 |
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Deferred tax liability |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Capital redemption reserve |
|
|
|
Profit and loss account |
|
|
|
Equity attributable to owners of the company |
|
|
|
Minority interests |
|
|
|
Total equity |
|
|
Approved and authorised by the
Director
Shield Environmental Holdings Limited
(Registration number: 05938654)
Balance Sheet as at 31 July 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Investments |
|
|
|
Creditors: Amounts falling due within one year |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
682,756 |
849,613 |
|
Capital redemption reserve |
2,283,531 |
2,072,917 |
|
Profit and loss account |
55,952 |
345,797 |
|
Total equity |
3,022,239 |
3,268,327 |
The company made a profit after tax for the financial year of £1,153,241 (2023 - profit of £392,155).
Approved and authorised by the
Director
Shield Environmental Holdings Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 July 2024
Equity attributable to the parent company
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
Non-controlling interests |
Total equity |
|
At 1 August 2023 |
|
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
|
Dividends |
- |
- |
( |
( |
- |
( |
Purchase of own share capital |
(166,857) |
210,614 |
(1,319,498) |
(1,275,741) |
- |
(1,275,741) |
At 31 July 2024 |
|
|
|
|
|
|
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
Non-controlling interests |
Total equity |
|
At 1 August 2022 |
|
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
|
Dividends |
- |
- |
( |
( |
- |
( |
Purchase of own share capital |
(26,346) |
45,525 |
(112,613) |
(93,434) |
- |
(93,434) |
At 31 July 2023 |
849,613 |
2,072,917 |
9,839,343 |
12,761,873 |
700,414 |
13,462,287 |
Shield Environmental Holdings Limited
Statement of Changes in Equity for the Year Ended 31 July 2024
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 August 2023 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
Purchase of own share capital |
(166,857) |
210,614 |
(1,319,498) |
(1,275,741) |
At 31 July 2024 |
|
|
|
|
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 August 2022 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
Purchase of own share capital |
(26,346) |
45,525 |
(112,613) |
(93,434) |
At 31 July 2023 |
849,613 |
2,072,917 |
345,797 |
3,268,327 |
Shield Environmental Holdings Limited
Consolidated Statement of Cash Flows for the Year Ended 31 July 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
Finance income |
( |
- |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Decrease/(increase) in trade debtors |
|
( |
|
Increase in trade creditors |
|
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
- |
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Acquisition of intangible assets |
- |
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
New loans drawn down |
- |
|
|
Repayment of loans and borrowings |
( |
( |
|
Purchase of own shares |
( |
( |
|
Payments to finance lease creditors |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 August |
|
|
|
Cash and cash equivalents at 31 July |
3,632,466 |
2,635,348 |
Shield Environmental Holdings Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the group operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Summary of disclosure exemptions
Shield Environmental Holdings Limited has taken advantage of the following disclosure exemptions available to qualifying entities in preparing its separate financial statements, as permitted by FRS 102:
• the requirements of Section 7 Statement of Cash Flows;
• the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
• the requirements of Section 33 Related Party Disclosures paragraph 33.7; and
• the requirements of certain paragraphs within Sections 11 and 12 relating to Financial Instruments.
Exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies
For the financial year ending 31 July 2024 the following companies were entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies: Shield Demolition Limited (10886207) and Shield Flooring Services Limited (12183245).
Director's responsibilities:
• The members of these companies have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
• The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
The director has prepared forecasts which underpin the going concern basis for the company and group, which show that the company and group will be able to operate successfully for the foreseeable future and be able to meet its liabilities as and when they fall due.
The financial statements have been prepared on the going concern basis, which as at the date of approval of these financial statements, the director considers to be appropriate.
Shield Environmental Holdings Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 July 2024.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
No profit and loss account is presented for the company as permitted by Section 408 of Companies Act 2006.
Going concern
In assessing whether the going concern basis is appropriate, the director takes into account all available information about the future, which is at least, but not limited to, 12 months from the date of signing these financial statements.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where those judgements and estimates have been made include: |
Depreciation - The group exercises judgement to determine useful lives and residual values for tangible fixed assets. The assets are depreciated down to their residual value over their estimated usual lives. |
Amortisation - The group exercises judgement to determine useful lives and residual values for intangible assets. The assets are amortised down to their residual values over their estimated usual lives. |
Provisions - Provisions have been made for trade debtors. These provisions are an estimate of the actual costs and the timing of future cash flows is dependent on future events. The difference between expectations and actual future liability will be accounted for in the period when such determination is made. |
Shield Environmental Holdings Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Key sources of estimation uncertainty
No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
• the amount of revenue can be measured reliably;
• it is probable that the group will receive the consideration due under the contract;
• the stage of completion of the contract at the end of the reporting period can be measured reliably; and
• the costs incurred and the costs to complete the contract can be measured reliably.
Tax
The tax expense for the period comprises current tax and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
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 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, based on the period during which the group expects to benefit from the intangible asset. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
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.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
20 years straight line basis |
Computer software |
25% straight line basis |
Shield Environmental Holdings Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Amortisation of intangible assets is recognised within administrative expenditure.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold property |
50 years straight line basis |
Plant and machinery |
25% straight line basis |
Motor vehicles |
25% straight line basis |
Office equipment |
25% straight line basis |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debtors.
Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowances for obsolete and slow-moving stocks.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Shield Environmental Holdings Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the group is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Shield Environmental Holdings Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Revenue |
The analysis of the group's turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
UK |
|
|
The total turnover of the group has been derived from its principal activities wholly undertaken in the United Kingdom.
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Operating lease expense - property |
|
|
Operating lease expense - other |
|
|
Profit on disposal of property, plant and equipment |
( |
( |
Shield Environmental Holdings Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Other interest receivable and similar income |
2024 |
2023 |
|
Interest income on bank deposits |
|
- |
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Interest on loan notes |
|
|
Interest on preference shares |
|
|
|
|
Auditor's remuneration |
2024 |
2023 |
|
Audit of these financial statements |
6,000 |
2,200 |
Audit of subsidiary companies |
|
|
All other non-audit services |
|
|
|
|
Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including the director) during the year, analysed by category was as follows:
2024 |
2023 |
|
Production |
|
|
Administration and support |
|
|
Other departments |
|
|
|
|
Company
The company incurred no staff costs and had no employees other than the directors.
Shield Environmental Holdings Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Director's remuneration |
The director's remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
277,565 |
277,971 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2024 |
2023 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2024 |
2023 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
|
514,015 |
587,029 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods |
118,173 |
(69,849) |
Total deferred taxation |
|
|
Tax expense in the income statement |
|
|
Shield Environmental Holdings Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Deferred tax expense from unrecognised tax loss or credit |
|
|
(Decrease)/increase in UK and foreign current tax from adjustment for prior periods |
( |
|
Tax increase from other tax effects |
|
|
Tax increase from effect of capital allowances and depreciation |
|
- |
Deferred tax expense/(credit) from unrecognised temporary difference from a prior period |
|
( |
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
2024 |
Liability |
Accelerated capital allowances |
|
Short term timing differences |
( |
|
2023 |
Liability |
Accelerated capital allowances |
|
Short term timing differences |
( |
|
Intangible assets |
Group
Goodwill |
Computer software |
Total |
|
Cost |
|||
At 1 August 2023 and 31 July 2024 |
|
|
|
Amortisation |
|||
At 1 August 2023 |
|
|
|
Amortisation charge |
|
|
|
At 31 July 2024 |
|
|
|
Carrying amount |
|||
At 31 July 2024 |
|
|
|
At 31 July 2023 |
|
|
|
Shield Environmental Holdings Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Tangible assets |
Group
Freehold property |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost |
||||
At 1 August 2023 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
- |
- |
( |
( |
At 31 July 2024 |
|
|
|
|
Depreciation |
||||
At 1 August 2023 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
At 31 July 2024 |
|
|
|
|
Carrying amount |
||||
At 31 July 2024 |
|
|
|
|
At 31 July 2023 |
|
|
|
|
Included within freehold property is £3,933,070 (2023 - £4,023,740) in relation to properties pledged as collateral against their respective mortgages.
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2024 |
2023 |
|
Motor vehicles |
808,541 |
1,607,521 |
Investments |
Company
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Shield Environmental Holdings Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
13 |
Investments (continued) |
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Country of incorporation |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
Subsidiary undertakings |
||||
|
United Kingdom |
Ordinary |
|
|
|
United Kingdom |
Ordinary |
|
|
|
United Kingdom |
Ordinary |
|
|
|
United Kingdom |
Ordinary |
|
|
|
United Kingdom |
Ordinary |
|
|
Subsidiary undertakings |
Shield Environmental Services Limited The principal activity of Shield Environmental Services Limited is |
Shield Mechanical Electrical & Facilities Services Limited The principal activity of Shield Mechanical Electrical & Facilities Services Limited is |
Shield Fire and Security Limited The principal activity of Shield Fire and Security Limited is |
Shield Demolition Services Limited The principal activity of Shield Demolition Services Limited is |
Shield Flooring Services Limited The principal activity of Shield Flooring Services Limited is |
All subsidiaries have the same registered office as the Company, except for Shield Fire & Security Limited, whose registered office is Shield House, Newham Road, Newham, Truro TR1 2SU.
Stocks |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Raw materials and consumables |
|
|
- |
- |
Shield Environmental Holdings Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Debtors |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Trade debtors |
|
|
- |
- |
Other debtors |
|
|
- |
- |
Prepayments |
|
|
- |
- |
|
|
- |
- |
Cash and cash equivalents |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Cash at bank |
|
|
- |
- |
Creditors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
- |
- |
|
Amounts due to group undertakings |
- |
- |
|
|
|
Social security and other taxes |
|
|
- |
|
|
Outstanding defined contribution pension costs |
|
|
- |
- |
|
Other creditors |
|
|
- |
|
|
Accruals and deferred income |
|
|
|
|
|
Corporation tax liability |
349,400 |
381,469 |
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
|
|
|
Shares classified as debt |
- |
|
- |
|
|
|
|
|
|
Loans and borrowings |
Current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
|
|
|
Hire purchase contracts |
|
|
- |
- |
Directors current account |
|
- |
|
- |
Loan notes |
- |
|
- |
|
|
|
|
|
Shield Environmental Holdings Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Non-current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
|
|
|
Hire purchase contracts |
|
|
- |
- |
|
|
|
|
The liabilities held under finance leases and hire purchase agreements are secured against the assets to which they relate.
The bank loans are secured by charges over the assets of the group.
In the prior year, the loan notes comprised £224,966 of A loan notes and £37,605 of B loan notes. The loan notes have been redeemed in the year. The A loan notes were owed to P A House and carried interest at 3% over base rate. The B loan notes were owed to P A House, and carried interest at 1.5% over base rate. The accrued interest of £190,163 (2023: £178,523), remains due to P A House.
Provisions for liabilities |
Group
Deferred tax |
Total |
|
At 1 August 2023 |
|
|
Additional provisions |
|
|
At 31 July 2024 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Reserves |
Share premium account
Includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.
Capital redemption reserve
Represents the nominal value of shares that have been redeemed.
Profit & loss account
Includes all current and prior period retained profits and losses.
Shield Environmental Holdings Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
Ordinary shares of £0.0001 each |
1,268,436 |
127 |
1,268,436 |
127 |
A Ordinary shares of £1 each |
87,819 |
87,819 |
87,819 |
87,819 |
B Ordinary shares of £1 each |
182,310 |
182,310 |
349,167 |
349,167 |
Deferred ordinary shares of £1 each |
412,500 |
412,500 |
412,500 |
412,500 |
|
|
|
|
Shares classified as debt |
2024 |
2023 |
Allotted, called up and fully paid |
||
Nil (2023 - 29,718) A preference shares of £1 each |
- |
29,718 |
Nil (2023 - 14,038) B preference shares of £1 each |
- |
14,038 |
- |
43,756 |
In December 2023, 166,857 B Ordinary shares were repurchased by the company for consideration of £1,275,742.
During the year, 29,718 A preference shares and 14,038 B preference shares were redeemed at par between August 2023 and February 2024.
All shares were subsequently cancelled.
Voting rights
Holders of A Ordinary shares, the B Ordinary shares and the Ordinary shares are entitled to vote according to their holding. The holders of other shares have no entitlement to vote.
Dividends |
2024 |
2023 |
|
Dividends declared on ordinary shares |
123,588 |
124,952 |
Commitments |
Shield Environmental Holdings Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Commitments under operating leases |
Group
Finance leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Analysis of changes in net debt |
At 1 August 2023 |
Cash flows |
New finance leases |
Other non-cash changes |
At 31 July 2024 |
|
Cash and cash equivalents |
|||||
Cash |
2,635,348 |
997,118 |
- |
- |
3,632,466 |
Borrowings |
|||||
Long term bank borrowings |
(1,642,290) |
419,013 |
- |
- |
(1,223,277) |
Lease liabilities |
(1,288,944) |
826,823 |
(165,792) |
- |
(627,913) |
Loan notes |
(262,571) |
274,212 |
- |
(11,641) |
- |
|
|||||
( |
|
( |
( |
|
Other non-cash changes represent the accrued interest on the loan notes.
Related party transactions |
Company
Summary of transactions with key management
Summary of company transactions with related parties
Shield Environmental Holdings Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
27 |
Related party transactions (continued) |
Group
Summary of transactions with related parties
During the year the group made purchases of £2,456,384 (2023: £nil) from Sword Dynamic Service Provider Limited and sales of £531 (2023 - £nil) to Sword Dynamic Service Provider Limited, being a company with a director in common. At the year end the group was owed £216,000 (2023: £nil) and owed £531 (2023: £nil) to Sword Dynamic Service Provider Limited.
During the year the group made sales of £6,205 (2023: £8,292) to and purchases of £205,681 (2023: £155,588) from Armour Analytical Services Limited, being a company with a director in common. At the year end the group was owed £nil (2023: £290) and owed £192 (2023: £26,250) to Armour Analytical Services Limited.
During the year the group paid rent of £24,000 (2023: £24,000) in respect of premises owned by Shield Insulation Ltd Retirement and Death Benefit Scheme of which, P A House and L P House, directors of the company, are Trustees.
At the year end the group was owed £35,000 (2023: £35,000) to a director, D C Jackson, in the form of a director's loan account. No interest has been charged on the loan and there are no fixed repayment terms.
Financial instruments |
Group
Categorisation of financial instruments
All financial assets and liabilities are are measured at amortised cost.
Ultimate controlling party |
The ultimate controlling party is P A House by virtue of his majority shareholding in the company.