Company registration number 10155513 (England and Wales)
STABILIS HOLDING COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
STABILIS HOLDING COMPANY LIMITED
COMPANY INFORMATION
Director
S L Scopes
Secretary
Y Scopes
Company number
10155513
Registered office
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
Auditors
S&W Partners Audit Limited
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
STABILIS HOLDING COMPANY LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Company statement of cash flows
13
Notes to the financial statements
14 - 28
STABILIS HOLDING COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The director presents the strategic report for the year ended 31 May 2024.

Review of the business

The current economic environment continues to put pressure on NHS spending. However, both the NHS and private sector are committed to programmes of new builds and modernisation. This along with commitments to long term maintenance and service contracts allows us to predict business for the foreseeable future. The economic picture is improving and the benefits are beginning to filter through. This has proved to be advantageous for the very competitive Medical Gas industry in which the Stabilis Group is a market leader.

Principal risks and uncertainties

The Group closely manages the risks to which it is exposed. The director considers that the risks to the Group's continued trading are regularly assessed and suitably managed. The company manages its cash and borrowing requirements in order to ensure that the company has sufficient liquidity to meet the operating needs of the businesses.

Development and performance

The director considers that given the nature of the business, which is largely dependent on sales to the NHS and private sector maintaining tight control over margins, turnover and operating profit, are the principal key performance indicators of the company. Turnover for the year was £8,377,318 (2023 - £7,923,317) which generated an operating profit of £896,411 (2023 - profit of £431,963).

 

The director considers that the financial position at the year end was satisfactory and is confident that the company will continue to meet his expectations for maintaining profitability in the future.

 

On behalf of the board

S L Scopes
Director
9 May 2025
STABILIS HOLDING COMPANY LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 2 -

The director presents his annual report and financial statements for the year ended 31 May 2024.

Principal activities

The principal activity of the company and group is the supply of medical gas pipeline installations.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

S L Scopes
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
S L Scopes
Director
9 May 2025
2025-05-09
STABILIS HOLDING COMPANY LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 3 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STABILIS HOLDING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STABILIS HOLDING COMPANY LIMITED
- 4 -
Opinion

We have audited the financial statements of Stabilis Holding Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

STABILIS HOLDING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STABILIS HOLDING COMPANY LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

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

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the 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 parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

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

STABILIS HOLDING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STABILIS HOLDING COMPANY LIMITED
- 6 -

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

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

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters which we are required to address

Comparative information in the financial statements is derived from the company's prior period financial statements which were not audited.

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.

Keir Singleton (Senior Statutory Auditor)
For and on behalf of S&W Partners Audit Limited
16 May 2025
Chartered Accountants
Statutory Auditor
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
STABILIS HOLDING COMPANY LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
8,377,318
7,923,317
Cost of sales
(4,242,515)
(3,961,195)
Gross profit
4,134,803
3,962,122
Administrative expenses
(3,238,392)
(3,530,159)
Operating profit
4
896,411
431,963
Interest receivable and similar income
8
-
0
2,735
Interest payable and similar expenses
9
(84,785)
(63,641)
Profit before taxation
811,626
371,057
Tax on profit
10
(228,423)
(108,256)
Profit for the financial year
583,203
262,801
Other comprehensive income
Revaluation of tangible fixed assets
149,726
-
0
Total comprehensive income for the year
732,929
262,801
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
STABILIS HOLDING COMPANY LIMITED
GROUP BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,524,585
1,896,959
Investment property
12
1,184,458
1,184,458
4,709,043
3,081,417
Current assets
Stocks
15
1,323,874
1,342,263
Debtors
16
1,746,596
2,699,177
Investments
17
246,247
106,642
Cash at bank and in hand
1,187,858
889,113
4,504,575
5,037,195
Creditors: amounts falling due within one year
18
(3,630,944)
(3,102,239)
Net current assets
873,631
1,934,956
Total assets less current liabilities
5,582,674
5,016,373
Creditors: amounts falling due after more than one year
19
(833,280)
(1,009,999)
Provisions for liabilities
Provisions
21
10,000
10,000
Deferred tax liability
22
293,668
283,577
(303,668)
(293,577)
Net assets
4,445,726
3,712,797
Capital and reserves
Called up share capital
25
1,000
1,000
Revaluation reserve
26
149,726
-
0
Profit and loss reserves
4,295,000
3,711,797
Total equity
4,445,726
3,712,797

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved and signed by the director and authorised for issue on 9 May 2025
09 May 2025
S L Scopes
Director
Company registration number 10155513 (England and Wales)
STABILIS HOLDING COMPANY LIMITED
COMPANY BALANCE SHEET
AS AT 31 MAY 2024
31 May 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,265,422
627,500
Investment property
12
1,184,458
1,184,458
Investments
13
1,000
1,000
3,450,880
1,812,958
Current assets
Debtors
16
31,669
21,600
Investments
17
83,505
-
0
Cash at bank and in hand
37,056
25,606
152,230
47,206
Creditors: amounts falling due within one year
18
(1,720,692)
(666,665)
Net current liabilities
(1,568,462)
(619,459)
Net assets
1,882,418
1,193,499
Capital and reserves
Called up share capital
25
1,000
1,000
Revaluation reserve
26
149,726
-
0
Profit and loss reserves
1,731,692
1,192,499
Total equity
1,882,418
1,193,499

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £539,192 (2023 - £62,958 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 9 May 2025
09 May 2025
S L Scopes
Director
Company registration number 10155513 (England and Wales)
STABILIS HOLDING COMPANY LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 June 2022
1,000
-
0
3,448,996
3,449,996
Year ended 31 May 2023:
Profit and total comprehensive income
-
-
262,801
262,801
Balance at 31 May 2023
1,000
-
0
3,711,797
3,712,797
Year ended 31 May 2024:
Profit for the year
-
-
583,203
583,203
Other comprehensive income:
Revaluation of tangible fixed assets
-
149,726
-
149,726
Total comprehensive income
-
149,726
583,203
732,929
Balance at 31 May 2024
1,000
149,726
4,295,000
4,445,726
STABILIS HOLDING COMPANY LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 June 2022
1,000
-
0
1,129,542
1,130,542
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
-
62,957
62,957
Balance at 31 May 2023
1,000
-
0
1,192,499
1,193,499
Year ended 31 May 2024:
Profit for the year
-
-
539,193
539,193
Other comprehensive income:
Revaluation of tangible fixed assets
-
149,726
-
149,726
Total comprehensive income
-
149,726
539,193
688,919
Balance at 31 May 2024
1,000
149,726
1,731,692
1,882,418
STABILIS HOLDING COMPANY LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
30
2,856,485
(289,502)
Interest paid
(84,785)
(63,641)
Income taxes (paid)/refunded
(61,127)
84,280
Net cash inflow/(outflow) from operating activities
2,710,573
(268,863)
Investing activities
Purchase of tangible fixed assets
(1,884,022)
(412,449)
Proceeds from disposal of tangible fixed assets
43,328
25,625
Proceeds from disposal of investments
(139,605)
-
Movements on director's loan account
(258,132)
958,566
Interest received
-
0
2,735
Net cash (used in)/generated from investing activities
(2,238,431)
574,477
Financing activities
Repayment of bank loans
(173,397)
(182,400)
Payment of finance leases obligations
-
(19,970)
Net cash used in financing activities
(173,397)
(202,370)
Net increase in cash and cash equivalents
298,745
103,244
Cash and cash equivalents at beginning of year
889,113
785,869
Cash and cash equivalents at end of year
1,187,858
889,113
STABILIS HOLDING COMPANY LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
31
1,100,374
(7,145)
Interest paid
(1,124)
-
0
Income taxes paid
(16,021)
(13,316)
Net cash inflow/(outflow) from operating activities
1,083,229
(20,461)
Investing activities
Purchase of tangible fixed assets
(1,488,274)
-
0
Proceeds from disposal of investments
(83,505)
-
0
Dividends received
500,000
-
0
Net cash used in investing activities
(1,071,779)
-
Net increase/(decrease) in cash and cash equivalents
11,450
(20,461)
Cash and cash equivalents at beginning of year
25,606
46,067
Cash and cash equivalents at end of year
37,056
25,606
STABILIS HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 14 -
1
Accounting policies
Company information

Stabilis Holding Company Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 22 Wycombe End, Beaconsfield, Buckinghamshire, HP9 1NB.

 

The group consists of Stabilis Holding Company Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Stabilis Holding Company Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 May 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

STABILIS HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

 

Turnover in respect of long term contracts and contracts for on-going services represents the value of the work done in the year, including estimates of amounts not invoiced, determined by reference to the stage of completion of each contract which in turn is measured as the proportion which costs to date bears to the expected total cost for the contract.

 

Profit on long term contracts for services is recognised in the profit and loss account if the final outcome can be assessed with reasonable certainty by including turnover and related costs as contract activity progresses.

 

Amounts recoverable on long term contracts are included in debtors and stated at the net sales value of the work done after provision of contingencies and anticipated future losses on contracts, less amounts received as progress payments on account.

 

Payments received in advance of the performance of services or delivery of the product are recorded as deferred revenue until such time as the services are performed or the product is delivered.

 

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

 

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings freehold
Not depreciated
Leasehold improvements
Over the term of the lease
Plant and machinery
25% reducing balance
Fixtures, fittings and equipment
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

STABILIS HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 16 -
1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ”Basic financial Instruments” to all of its financial instruments.

 

Financial instruments are recognised in the company’s balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances are measured at transaction price less any provision for impairment. Loans receivable are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method, less any provision for impairment.

 

Basic financial liabilities

Short term creditors are measured at transaction price. Other financial liabilities, including bank loans and other loans, are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method.

STABILIS HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 17 -
1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account.

1.12
Provisions

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

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

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

STABILIS HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 18 -
2
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 amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Medical gas pipeline installations
8,342,294
7,887,917
Rental income
35,024
35,400
8,377,318
7,923,317
2024
2023
£
£
Other revenue
Interest income
-
2,735
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Research and development costs
5,143
-
Fees payable to the group's auditor for the audit of the group's financial statements
5,100
5,000
Depreciation of owned tangible fixed assets
365,471
339,185
Profit on disposal of tangible fixed assets
(2,677)
(7,003)
Operating lease charges
467
-
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,100
5,000
Audit of the financial statements of the company's subsidiaries
19,805
21,250
24,905
26,250
STABILIS HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 19 -
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Engineers
32
33
-
-
Admin & marketing
20
16
-
-
Management
10
8
2
2
Total
62
57
2
2

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,326,615
1,812,932
-
0
-
0
Social security costs
266,969
250,200
-
-
Pension costs
94,135
275,381
-
0
-
0
2,687,719
2,338,513
-
0
-
0
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
8,283
5,704
Company pension contributions to defined contribution schemes
-
192,600
8,283
198,304
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
-
2,735
STABILIS HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 20 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
83,489
62,134
Other finance costs:
Interest on finance leases and hire purchase contracts
-
1,507
Other interest
1,296
-
Total finance costs
84,785
63,641
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
195,796
38,591
Adjustments in respect of prior periods
22,536
1,155
Total current tax
218,332
39,746
Deferred tax
Origination and reversal of timing differences
10,091
68,510
Total tax charge
228,423
108,256

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
811,626
371,057
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
202,907
74,211
Tax effect of expenses that are not deductible in determining taxable profit
3,737
1,717
Change in unrecognised deferred tax assets
(198)
-
0
Adjustments in respect of prior years
22,536
1,157
Other non-reversing timing differences
-
0
(14,328)
Research and development enhanced relief
3
(22,536)
Difference in future deferred tax rates
-
0
68,035
Difference between tax rate and reconciliation rate
(500)
-
0
Difference between CT rate and DT rate
(62)
-
0
Taxation charge
228,423
108,256
STABILIS HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 21 -
11
Tangible fixed assets
Group
Land and buildings freehold
Leasehold improvements
Plant and machinery
Fixtures, fittings and equipment
Total
£
£
£
£
£
Cost or valuation
At 1 June 2023
627,500
138,331
2,738,509
-
0
3,504,340
Additions
1,487,156
-
0
395,748
1,118
1,884,022
Disposals
-
0
-
0
(58,991)
-
0
(58,991)
Revaluation
149,726
-
0
-
0
-
0
149,726
At 31 May 2024
2,264,382
138,331
3,075,266
1,118
5,479,097
Depreciation and impairment
At 1 June 2023
-
0
47,273
1,560,108
-
0
1,607,381
Depreciation charged in the year
-
0
22,765
342,628
78
365,471
Eliminated in respect of disposals
-
0
-
0
(18,340)
-
0
(18,340)
At 31 May 2024
-
0
70,038
1,884,396
78
1,954,512
Carrying amount
At 31 May 2024
2,264,382
68,293
1,190,870
1,040
3,524,585
At 31 May 2023
627,500
91,058
1,178,401
-
0
1,896,959
Company
Land and buildings freehold
Fixtures, fittings and equipment
Total
£
£
£
Cost or valuation
At 1 June 2023
627,500
-
0
627,500
Additions
1,487,156
1,118
1,488,274
Revaluation
149,726
-
0
149,726
At 31 May 2024
2,264,382
1,118
2,265,500
Depreciation and impairment
At 1 June 2023
-
0
-
0
-
0
Depreciation charged in the year
-
0
78
78
At 31 May 2024
-
0
78
78
Carrying amount
At 31 May 2024
2,264,382
1,040
2,265,422
At 31 May 2023
627,500
-
0
627,500

Land and buildings with a carrying amount of £2,238,876 were revalued at 31 March 2024 on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties adjusted for inflation where appropriate.

STABILIS HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
11
Tangible fixed assets
(Continued)
- 22 -

The revaluation surplus is disclosed in note 26.

12
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 June 2023 and 31 May 2024
1,184,458
1,184,458

Investment property comprises of 178 Cherry Tree Road. The value of the investment property has been arrived at by the director on the basis that the fair value is not materially different to the stated historic cost.

13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
1,000
1,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2023 and 31 May 2024
1,000
Carrying amount
At 31 May 2024
1,000
At 31 May 2023
1,000
STABILIS HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 23 -
14
Subsidiaries

Details of the company's subsidiaries at 31 May 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
SHJ Hospital Pipelines Limited
UK
Ordinary
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials for use in contracted work
1,323,874
1,342,263
-
0
-
0
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,405,062
2,479,746
21,600
21,600
Other debtors
83,206
92,444
1,667
-
0
Prepayments and accrued income
258,328
126,987
8,402
-
0
1,746,596
2,699,177
31,669
21,600
17
Current asset investments
Group
Company
2024
2023
2024
2023
£
£
£
£
Unlisted investments
246,247
106,642
83,505
-
STABILIS HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 24 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
176,937
173,615
-
0
-
0
Trade creditors
398,375
505,695
6,692
-
0
Amounts owed to group undertakings
-
0
-
0
628,224
527,106
Corporation tax payable
195,796
38,591
12,055
16,021
Other taxation and social security
89,937
66,394
3,600
3,600
Deferred income
23
1,091,011
1,594,143
-
0
-
0
Other creditors
1,016,734
345,559
980,288
30,288
Accruals and deferred income
662,154
378,242
89,833
89,650
3,630,944
3,102,239
1,720,692
666,665

The bank loans are secured by way of a floating charge over the assets of SHJ Hospital Pipelines Limited.

19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
833,280
1,009,999
-
0
-
0
Amounts included above which fall due after five years are as follows:
Payable by instalments
311,431
412,321
-
-
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,010,217
1,183,614
-
0
-
0
Payable within one year
176,937
173,615
-
0
-
0
Payable after one year
833,280
1,009,999
-
0
-
0

The bank loans are secured by way of a floating charge over the assets of SHJ Hospital Pipelines Limited.

STABILIS HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 25 -
21
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Warranty provision
10,000
10,000
-
-
Movements on provisions:
Warranty provision
Group
£
At 1 June 2023 and 31 May 2024
10,000
22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
306,306
299,077
General provisions
(12,638)
(15,500)
293,668
283,577
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 June 2023
283,577
-
Charge to profit or loss
10,091
-
Liability at 31 May 2024
293,668
-
STABILIS HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 26 -
23
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Other deferred income
1,091,011
1,594,143
-
-
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
94,135
275,381

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

25
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
26
Revaluation reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
-
0
-
0
-
0
-
0
Revaluation surplus arising in the year
149,726
-
0
149,726
-
0
At the end of the year
149,726
-
149,726
-
27
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
240,138
158,628
-
-
Between two and five years
340,040
217,178
-
-
580,178
375,806
-
-
STABILIS HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 27 -
28
Related party transactions

During the year the Group was charged £168,000 (2023 - £707,200) by Advanced Medical Services Limited. Advanced Medical Services Limited shares the same directors and shareholders with the Group. At the balance sheet date, the Group owed £904,000 (2023 - was owed £192,000 by) to Advanced Medical Services Limited. This balance is included within creditors and is unsecured, interest-free and repayable-on-demand.

29
Directors' transactions

At the balance sheet date the company owed £78,698 to (2023 - £336,830) a director.

 

During the year, the company leased a property that is owned by the director's personal pension fund. Rent charged in the period for this property was £72,000 (2023 - £72,000).

30
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit for the year after tax
583,203
262,801
Adjustments for:
Taxation charged
228,423
108,256
Finance costs
84,785
63,641
Investment income
-
0
(2,735)
Gain on disposal of tangible fixed assets
(2,677)
(7,003)
Depreciation and impairment of tangible fixed assets
365,471
339,185
Increase in provisions
-
10,000
Movements in working capital:
Decrease/(increase) in stocks
18,389
(39,195)
Decrease/(increase) in debtors
952,581
(1,374,337)
Increase/(decrease) in creditors
1,129,442
(403,423)
(Decrease)/increase in deferred income
(503,132)
753,308
Cash generated from/(absorbed by) operations
2,856,485
(289,502)
STABILIS HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 28 -
31
Cash generated from/(absorbed by) operations - company
2024
2023
£
£
Profit for the year after tax
539,193
62,957
Adjustments for:
Taxation charged
12,055
17,176
Finance costs
1,124
-
0
Investment income
(500,000)
-
0
Depreciation and impairment of tangible fixed assets
78
-
Movements in working capital:
(Increase)/decrease in debtors
(10,069)
500
Increase/(decrease) in creditors
1,057,993
(87,778)
Cash generated from/(absorbed by) operations
1,100,374
(7,145)
32
Analysis of changes in net funds/(debt) - group
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
889,113
298,745
1,187,858
Borrowings excluding overdrafts
(1,183,614)
173,397
(1,010,217)
(294,501)
472,142
177,641
33
Analysis of changes in net funds - company
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
25,606
11,450
37,056
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