Shield Environmental Holdings Limited 05938654 false 2023-08-01 2024-07-31 2024-07-31 2024-07-31 The principal activity of the 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. 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Registration number: 05938654

Shield Environmental Holdings Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 July 2024

 

Shield Environmental Holdings Limited

Contents

Company Information

1

Strategic Report

2 to 4

Director's Report

5 to 6

Statement of Director's Responsibilities

7

Independent Auditor's Report

8 to 10

Consolidated Profit and Loss Account

11

Consolidated Balance Sheet

12

Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Notes to the Financial Statements

17 to 32

 

Shield Environmental Holdings Limited

Company Information

Director

L P House

Company secretary

D N Sheppard

Registered office

Shield House
Caxton Business Park
Crown Way
Warmley
Bristol
BS30 8XJ

Auditors

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

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 on 28 April 2025 and signed on its behalf by:


L P House
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:

L P House

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 on 28 April 2025 and signed on its behalf by:


L P House
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.




James Morter (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House
Bayshill Road
Cheltenham
GL50 3AT

28 April 2025

 

Shield Environmental Holdings Limited

Consolidated Profit and Loss Account for the Year Ended 31 July 2024

Note

2024
£

2023
£

Turnover

3

49,360,359

47,595,736

Cost of sales

 

(32,481,122)

(31,159,813)

Gross profit

 

16,879,237

16,435,923

Administrative expenses

 

(15,488,006)

(13,147,355)

Operating profit

4

1,391,231

3,288,568

Other interest receivable and similar income

5

7,368

-

Interest payable and similar expenses

6

(213,275)

(166,001)

Profit before tax

 

1,185,324

3,122,567

Tax on profit

10

(720,639)

(878,583)

Profit for the financial year

 

464,685

2,243,984

Profit/(loss) attributable to:

 

Owners of the company

 

332,729

1,894,792

Minority interests

 

131,956

349,192

 

464,685

2,243,984

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

11

970,918

1,375,851

Tangible assets

12

9,481,724

8,823,974

 

10,452,642

10,199,825

Current assets

 

Stocks

14

467,836

327,573

Debtors

15

9,791,145

11,217,088

Cash at bank and in hand

 

3,632,466

2,635,348

 

13,891,447

14,180,009

Creditors: Amounts falling due within one year

17

(9,760,554)

(8,024,282)

Net current assets

 

4,130,893

6,155,727

Total assets less current liabilities

 

14,583,535

16,355,552

Creditors: Amounts falling due after more than one year

17

(1,279,655)

(2,323,652)

Deferred tax liability

10, 19

(776,237)

(569,613)

Net assets

 

12,527,643

13,462,287

Capital and reserves

 

Called up share capital

22

682,756

849,613

Capital redemption reserve

21

2,283,531

2,072,917

Profit and loss account

21

8,728,986

9,839,343

Equity attributable to owners of the company

 

11,695,273

12,761,873

Minority interests

 

832,370

700,414

Total equity

 

12,527,643

13,462,287

Approved and authorised by the director on 28 April 2025
 

L P House
Director

 

Shield Environmental Holdings Limited

(Registration number: 05938654)
Balance Sheet as at 31 July 2024

Note

2024
£

2023
£

Fixed assets

 

Investments

13

11,253,415

11,253,415

Creditors: Amounts falling due within one year

17

(7,099,316)

(6,410,935)

Total assets less current liabilities

 

4,154,099

4,842,480

Creditors: Amounts falling due after more than one year

17

(1,131,860)

(1,574,153)

Net assets

 

3,022,239

3,268,327

Capital and reserves

 

Called up share capital

22

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 on 28 April 2025
 

L P House
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

849,613

2,072,917

9,839,343

12,761,873

700,414

13,462,287

Profit for the year

-

-

332,729

332,729

131,956

464,685

Dividends

-

-

(123,588)

(123,588)

-

(123,588)

Purchase of own share capital

(166,857)

210,614

(1,319,498)

(1,275,741)

-

(1,275,741)

At 31 July 2024

682,756

2,283,531

8,728,986

11,695,273

832,370

12,527,643

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

Non-controlling interests
£

Total equity
£

At 1 August 2022

875,959

2,027,392

8,182,116

11,085,467

351,222

11,436,689

Profit for the year

-

-

1,894,792

1,894,792

349,192

2,243,984

Dividends

-

-

(124,952)

(124,952)

-

(124,952)

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

849,613

2,072,917

345,797

3,268,327

Profit for the year

-

-

1,153,241

1,153,241

Dividends

-

-

(123,588)

(123,588)

Purchase of own share capital

(166,857)

210,614

(1,319,498)

(1,275,741)

At 31 July 2024

682,756

2,283,531

55,952

3,022,239

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 August 2022

875,959

2,027,392

191,207

3,094,558

Profit for the year

-

-

392,155

392,155

Dividends

-

-

(124,952)

(124,952)

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

 

464,685

2,243,984

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

1,770,712

1,455,323

Profit on disposal of tangible assets

(2,113)

(50,860)

Finance income

5

(7,368)

-

Finance costs

6

213,275

166,001

Income tax expense

10

720,639

878,583

 

3,159,830

4,693,031

Working capital adjustments

 

Increase in stocks

 

(140,263)

(15,049)

Decrease/(increase) in trade debtors

 

1,560,249

(5,161,094)

Increase in trade creditors

 

1,932,653

3,385,901

Cash generated from operations

 

6,512,469

2,902,789

Income taxes paid

 

(546,084)

(205,868)

Net cash flow from operating activities

 

5,966,385

2,696,921

Cash flows from investing activities

 

Interest received

7,368

-

Acquisitions of tangible assets

(1,926,653)

(1,344,834)

Proceeds from sale of tangible assets

 

71,029

56,230

Acquisition of intangible assets

 

-

(1,013)

Net cash flows from investing activities

 

(1,848,256)

(1,289,617)

Cash flows from financing activities

 

Interest paid

 

(201,634)

(166,004)

New loans drawn down

 

-

539,000

Repayment of loans and borrowings

 

(693,225)

(301,747)

Purchase of own shares

 

(1,275,741)

(112,613)

Payments to finance lease creditors

 

(826,823)

(539,705)

Dividends paid

(123,588)

(124,952)

Net cash flows from financing activities

 

(3,121,011)

(706,021)

Net increase in cash and cash equivalents

 

997,118

701,283

Cash and cash equivalents at 1 August

 

2,635,348

1,934,065

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

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Shield House
Caxton Business Park
Crown Way
Warmley
Bristol
BS30 8XJ

 

2

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.

 

3

Revenue

The analysis of the group's turnover for the year from continuing operations is as follows:

2024
£

2023
£

UK

49,360,359

47,595,736

The total turnover of the group has been derived from its principal activities wholly undertaken in the United Kingdom.

 

4

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

1,365,779

1,048,841

Amortisation expense

404,933

406,482

Operating lease expense - property

148,761

147,471

Operating lease expense - other

29,621

21,894

Profit on disposal of property, plant and equipment

(2,113)

(50,860)

 

Shield Environmental Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

 

5

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

7,368

-

 

6

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

118,205

82,051

Interest on obligations under finance leases and hire purchase contracts

69,824

52,737

Interest on loan notes

11,641

19,684

Interest on preference shares

13,605

11,529

213,275

166,001

 

7

Auditor's remuneration

2024
£

2023
£

Audit of these financial statements

6,000

2,200

Audit of subsidiary companies

50,100

35,500

All other non-audit services

7,010

6,650

63,110

44,350

 

8

Staff costs

The aggregate payroll costs (including director's remuneration) were as follows:

2024
£

2023
£

Wages and salaries

13,550,173

12,488,271

Social security costs

1,418,854

1,189,677

Pension costs, defined contribution scheme

770,657

655,671

15,739,684

14,333,619

The average number of persons employed by the group (including the director) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

175

164

Administration and support

57

59

Other departments

102

87

334

310

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

 

9

Director's remuneration

The director's remuneration for the year was as follows:

2024
£

2023
£

Remuneration

244,207

246,843

Contributions paid to money purchase schemes

33,358

31,128

277,565

277,971

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

3

5

In respect of the highest paid director:

2024
£

2023
£

Remuneration

115,695

122,712

Company contributions to money purchase pension schemes

24,480

4,899

 

10

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

534,051

577,919

UK corporation tax adjustment to prior periods

(20,036)

9,110

514,015

587,029

Deferred taxation

Arising from origination and reversal of timing differences

88,451

361,403

Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods

118,173

(69,849)

Total deferred taxation

206,624

291,554

Tax expense in the income statement

720,639

878,583

 

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 25% (2023 - 21%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

1,185,324

3,122,567

Corporation tax at standard rate

296,331

655,739

Effect of expense not deductible in determining taxable profit (tax loss)

215,118

117,494

Deferred tax expense from unrecognised tax loss or credit

1,598

8,801

(Decrease)/increase in UK and foreign current tax from adjustment for prior periods

(20,036)

9,110

Tax increase from other tax effects

467

157,288

Tax increase from effect of capital allowances and depreciation

108,988

-

Deferred tax expense/(credit) from unrecognised temporary difference from a prior period

118,173

(69,849)

Total tax charge

720,639

878,583

Deferred tax

Group

Deferred tax assets and liabilities

2024

Liability
£

Accelerated capital allowances

818,544

Short term timing differences

(42,307)

776,237

2023

Liability
£

Accelerated capital allowances

609,329

Short term timing differences

(39,716)

569,613

 

11

Intangible assets

Group

Goodwill
 £

Computer software
£

Total
£

Cost

At 1 August 2023 and 31 July 2024

8,028,027

221,714

8,249,741

Amortisation

At 1 August 2023

6,662,241

211,649

6,873,890

Amortisation charge

401,401

3,532

404,933

At 31 July 2024

7,063,642

215,181

7,278,823

Carrying amount

At 31 July 2024

964,385

6,533

970,918

At 31 July 2023

1,365,786

10,065

1,375,851

 

Shield Environmental Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

 

12

Tangible assets

Group

Freehold property
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost

At 1 August 2023

5,592,274

5,061,965

5,638,104

16,292,343

Additions

667,077

566,675

858,693

2,092,445

Disposals

-

-

(236,903)

(236,903)

At 31 July 2024

6,259,351

5,628,640

6,259,894

18,147,885

Depreciation

At 1 August 2023

588,120

3,581,327

3,298,922

7,468,369

Charge for the year

115,718

427,037

823,024

1,365,779

Eliminated on disposal

-

-

(167,987)

(167,987)

At 31 July 2024

703,838

4,008,364

3,953,959

8,666,161

Carrying amount

At 31 July 2024

5,555,513

1,620,276

2,305,935

9,481,724

At 31 July 2023

5,004,154

1,480,638

2,339,182

8,823,974

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

   
 

13

Investments

Company

2024
£

2023
£

Investments in subsidiaries

11,253,415

11,253,415

 

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

Shield Environmental Services Limited

United Kingdom

Ordinary

100%

100%

Shield Mechanical Electrical & Facilities Services Limited

United Kingdom

Ordinary

70%

70%

Shield Fire and Security Limited

United Kingdom

Ordinary

70%

70%

Shield Demolition Services Limited

United Kingdom

Ordinary

100%

100%

Shield Flooring Services Limited

United Kingdom

Ordinary

100%

100%

Subsidiary undertakings

Shield Environmental Services Limited

The principal activity of Shield Environmental Services Limited is asbestos, removal, marine and insulation services.

Shield Mechanical Electrical & Facilities Services Limited

The principal activity of Shield Mechanical Electrical & Facilities Services Limited is electrical installation.

Shield Fire and Security Limited

The principal activity of Shield Fire and Security Limited is the installation of fire and security systems.

Shield Demolition Services Limited

The principal activity of Shield Demolition Services Limited is that of a non-trading company. In the prior year, the principal activity is that of demolition services.

Shield Flooring Services Limited

The principal activity of Shield Flooring Services Limited is is that of a non-trading company. In the prior year, the principal activity is the provision of commercial flooring.

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.

 

14

Stocks

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Raw materials and consumables

467,836

327,573

-

-

 

Shield Environmental Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

 

15

Debtors

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Trade debtors

7,441,757

8,208,531

-

-

Other debtors

454,047

2,086,764

-

-

Prepayments

1,895,341

921,793

-

-

9,791,145

11,217,088

-

-

 

16

Cash and cash equivalents

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Cash at bank

3,632,466

2,635,348

-

-

 

17

Creditors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due within one year

 

Loans and borrowings

18

1,163,902

913,909

683,786

374,466

Trade creditors

 

3,427,475

3,510,221

-

-

Amounts due to group undertakings

 

-

-

6,160,984

5,744,277

Social security and other taxes

 

387,580

319,217

-

200

Outstanding defined contribution pension costs

 

56,177

24,791

-

-

Other creditors

 

821,468

551,925

-

50,500

Accruals and deferred income

 

3,554,552

2,322,750

254,546

241,492

Corporation tax liability

10

349,400

381,469

-

-

 

9,760,554

8,024,282

7,099,316

6,410,935

Due after one year

 

Loans and borrowings

18

1,279,655

2,279,896

1,131,860

1,530,397

Shares classified as debt

 

-

43,756

-

43,756

 

1,279,655

2,323,652

1,131,860

1,574,153

 

18

Loans and borrowings

Current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

91,419

111,895

91,419

111,895

Hire purchase contracts

480,116

539,443

-

-

Directors current account

592,367

-

592,367

-

Loan notes

-

262,571

-

262,571

1,163,902

913,909

683,786

374,466

 

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

1,131,860

1,530,397

1,131,860

1,530,397

Hire purchase contracts

147,795

749,499

-

-

1,279,655

2,279,896

1,131,860

1,530,397

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.

 

19

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 August 2023

569,613

569,613

Additional provisions

206,624

206,624

At 31 July 2024

776,237

776,237

 

20

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 £770,657 (2023 - £655,671). Contributions totalling £24,791 (2023 - £24,791) were payable to the scheme at the end of the year and are included in creditors.

 

21

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

 

22

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

 

1,951,065

682,756

2,117,922

849,613

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.

 

23

Dividends

2024
 £

2023
 £

Dividends declared on ordinary shares

123,588

124,952

 

24

Commitments

In June 2024 the group committed to acquire a new property. The total amount contracted for but not provided in the financial statements was £2,158,996 (2023 - £Nil).

 

Shield Environmental Holdings Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

 

25

Commitments under operating leases

Group

Finance leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

599,116

1,301,460

Later than one year and not later than five years

226,319

692,561

825,435

1,994,021

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

146,880

147,450

Later than one year and not later than five years

299,258

372,190

Later than five years

82,770

160,560

528,908

680,200

The amount of non-cancellable operating lease payments recognised as an expense during the year was £178,382 (2023 - £169,365).

 

26

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)

-

 

(558,457)

2,517,166

(165,792)

(11,641)

1,781,276

Other non-cash changes represent the accrued interest on the loan notes.

 

27

Related party transactions

Company

Summary of transactions with key management

Key management personnel are considered to be the directors of the company and key management personnel compensation is disclosed in note 8 to the financial statements.

Summary of company transactions with related parties

At the year end the company owed £nil (2023: £50,500) to a director in the form of a director's loan account. No interest has been charged on the loan and there are no fixed repayment terms.
 

 

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 sales of £68,475 (2023: £67,124) to and purchases of £799,706 (2023: £427,306) from Sword Dynamic Services Limited, being a company with a director in common. At the year end the group was owed £5,107 (2023: £39,226) and owed £54,731 (2023: £27,307) to Sword Dynamic Services Limited.

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.

 

28

Financial instruments

Group

Categorisation of financial instruments

All financial assets and liabilities are are measured at amortised cost.

 

29

Ultimate controlling party

The ultimate controlling party is P A House by virtue of his majority shareholding in the company.