Company registration number SC178102 (Scotland)
PEGASUS FIRE PROTECTION COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
PEGASUS FIRE PROTECTION COMPANY LIMITED
COMPANY INFORMATION
Directors
W Sinclair
C Burns
C Shaw
Secretary
C Shaw
Company number
SC178102
Registered office
25A Bankhead Drive
Sighthill
Edinburgh
EH11 4DN
Auditor
MHA
Chartered Accountants
6 St Colme Street
Edinburgh
EH3 6AD
PEGASUS FIRE PROTECTION COMPANY LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
PEGASUS FIRE PROTECTION COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

The directors present the strategic report for the year ended 31 August 2024.

Review of the business

Pegasus Fire Protection Company Limited (PFP Limited) specialises in subcontracting for the construction industry, offering services in partitioning, suspended ceilings and decoration.

Key performance indicators

Turnover & Margin

In the period under review, our turnover has increased whilst our profit margin has remained steady.

 

We also received a one-off settlement from a long running legal dispute which has increased the pre-tax profit.

 

We continue to manage the business tightly through this phase of the country's economic recovery.

 

The board remains focused on steering the company through this challenging period, and the results for the current financial year continue to be impacted by raw material cost inflation and skilled labour shortages, but also the recent increase in employers' NI, and the significant increase in the minimum wage will also filter through as higher costs for our skilled tradesmen.

 

However, the board believes that our strong balance sheet and swift management action taken as necessary, will stand us in good stead.

 

Financial risk management objectives and policies

The company uses various financial instruments to raise and facilitate the financing of the business. These instruments include cash, trade debtors and trade creditors. These instruments carry a variety of financial risks.

 

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs by reviewing trading and preparing forecasts.

 

Credit risk

The company's principal financial assets are work in progress and trade debtors, which carry the predominant credit risk. This risk is managed through directors setting limits for customers based on a combination of industry reputation, payment terms.

 

On behalf of the board

C Shaw
Director
22 May 2025
PEGASUS FIRE PROTECTION COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 August 2024.

Principal activities

The principal activity of the company continued to be that of the provision of fire protection, partitioning, suspended ceilings and paintwork services.

Directors

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

W Sinclair
C Burns
C Shaw
Results and dividends

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

Ordinary dividends were paid amounting to £1,366,500 (2023 - £1,366,500).

Auditor

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.

 

MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

PEGASUS FIRE PROTECTION COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
C Shaw
Director
22 May 2025
PEGASUS FIRE PROTECTION COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PEGASUS FIRE PROTECTION COMPANY LIMITED
- 4 -
Opinion

We have audited the financial statements of Pegasus Fire Protection Company Limited (the 'company') for the year ended 31 August 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the 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 FRS 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 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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

 

Our responsibilities and the responsibilities of the directors 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 directors are 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:

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

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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 directors

As explained more fully in the directors' responsibilities statement, the directors are 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 directors determine 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 directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have 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.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

PEGASUS FIRE PROTECTION COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PEGASUS FIRE PROTECTION COMPANY LIMITED
- 6 -

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.

Paul Marshall
(Senior Statutory Auditor)
for and on behalf of MHA, Statutory Auditor
Edinburgh, United Kingdom
22 May 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
PEGASUS FIRE PROTECTION COMPANY LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
15,014,197
9,561,486
Cost of sales
(10,800,798)
(6,784,946)
Gross profit
4,213,399
2,776,540
Administrative expenses
(1,234,838)
(912,220)
Other operating income
534,335
83,266
Operating profit
5
3,512,896
1,947,586
Interest receivable and similar income
8
225,154
110,424
Interest payable and similar expenses
9
(980)
-
Profit before taxation
3,737,070
2,058,010
Tax on profit
10
(930,749)
(448,718)
Profit for the financial year
2,806,321
1,609,292

The profit and loss account has been prepared on the basis that all operations are continuing operations.

PEGASUS FIRE PROTECTION COMPANY LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
320,713
319,420
Investment properties
13
786,346
694,880
1,107,059
1,014,300
Current assets
Stocks
14
504,200
507,450
Debtors
15
3,358,110
2,793,135
Cash at bank and in hand
8,923,615
8,390,325
12,785,925
11,690,910
Creditors: amounts falling due within one year
16
(2,149,491)
(2,391,953)
Net current assets
10,636,434
9,298,957
Total assets less current liabilities
11,743,493
10,313,257
Provisions for liabilities
17
(38,643)
(48,228)
Net assets
11,704,850
10,265,029
Capital and reserves
Called up share capital
19
12,000
12,000
Profit and loss reserves
11,692,850
10,253,029
Total equity
11,704,850
10,265,029
The financial statements were approved by the board of directors and authorised for issue on 22 May 2025 and are signed on its behalf by:
W Sinclair
Director
Company Registration No. SC178102
PEGASUS FIRE PROTECTION COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 September 2022
12,000
10,010,237
10,022,237
Year ended 31 August 2023:
Profit and total comprehensive income
-
1,609,292
1,609,292
Dividends
11
-
(1,366,500)
(1,366,500)
Balance at 31 August 2023
12,000
10,253,029
10,265,029
Year ended 31 August 2024:
Profit and total comprehensive income
-
2,806,321
2,806,321
Dividends
11
-
(1,366,500)
(1,366,500)
Balance at 31 August 2024
12,000
11,692,850
11,704,850
PEGASUS FIRE PROTECTION COMPANY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
2,732,832
2,307,146
Interest paid
(980)
-
0
Taxation
(756,071)
(389,621)
Net cash inflow from operating activities
1,975,781
1,917,525
Investing activities
Purchase of tangible fixed assets
(98,590)
(242,098)
Proceeds on disposal of tangible fixed assets
38,911
42,834
Purchase of investment property
(91,466)
(694,880)
Other loans
(150,000)
(500,000)
Interest received
225,154
110,424
Net cash used in investing activities
(75,991)
(1,283,720)
Financing activities
Dividends paid
(1,366,500)
(1,366,500)
Net cash used in financing activities
(1,366,500)
(1,366,500)
Net increase/(decrease) in cash and cash equivalents
533,290
(732,695)
Cash and cash equivalents at beginning of year
8,390,325
9,123,020
Cash and cash equivalents at end of year
8,923,615
8,390,325
PEGASUS FIRE PROTECTION COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
1
Accounting policies
Company information

Pegasus Fire Protection Company Limited is a private company limited by shares incorporated in Scotland. The registered office is 25A Bankhead Drive, Sighthill, Edinburgh, EH11 4DN.

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 investment properties at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors are confident that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover, which is stated net of value added tax, represents amounts invoiced to third parties, except in respect of long term contracts where turnover represents the sales value of work done in the year, including estimates in respect of amounts not invoiced. Turnover in respect of long term contracts is calculated based on the estimated stage of completion compared to the overall value of the contract.

1.4
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:

Fixtures, fittings & equipment
20% straight line
Motor vehicles
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 credited or charged to profit or loss.

The carrying value of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

1.5
Investment properties

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.

1.6
Stock and work in progress

Stock and work in progress are valued at the lower of cost and net realisable value.

PEGASUS FIRE PROTECTION COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 12 -
1.7
Long term contracts

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

1.8
Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Debtors

Debtors with no stated interest rate or receivable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.

Creditors

Creditors with no stated interest rate and payable within one year are recorded at transaction price.

 

All interest bearing loans and borrowings which are basic financial instruments are initially recorded at the present value of cash payable. After initial recognition they are measured at amortised cost.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

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

Current tax

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

PEGASUS FIRE PROTECTION COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 13 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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

 

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

1.13
Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the period they are payable.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to the profit and loss account 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 lease asset are consumed.

1.15
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to trading are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

PEGASUS FIRE PROTECTION COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 14 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are 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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Accounting for long term contracts

The company estimates the outcome of its long term contracts. This is normally measured by the proportion of the costs incurred to date compared to the estimated total contract costs, except where this would not be representative of the stage of completion.

 

Estimated total contract costs are based on management's detailed budgets and projections. Where management judge that the outcome of a long term contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recovered.

3
Turnover and other revenue

The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.

4
Exceptional item
2024
2023
£
£
Income
Exceptional item - Other operating income
478,750
-

Mediation settlement received following legal action against 3rd party contractors who worked on a construction project.

5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Grants received
(9,730)
(19,961)
Fees payable to the company's auditor for the audit of the company's financial statements
12,155
11,575
Depreciation of owned tangible fixed assets
62,485
60,000
Profit on disposal of tangible fixed assets
(4,099)
(14,796)
Operating lease charges
49,333
45,000
Included within grants received is income of £9,730 (2023 - £19,961) from CITB training grants.
PEGASUS FIRE PROTECTION COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 15 -
6
Employees

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

2024
2023
Number
Number
Administration
10
10
Direct labour
57
60
67
70

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,953,688
2,568,657
Social security costs
273,581
259,251
Pension costs
58,978
48,123
3,286,247
2,876,031
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate remuneration
380,348
371,969
PEGASUS FIRE PROTECTION COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
307,027
306,930
Company pension contributions to defined contribution schemes
6,603
1,332
313,630
308,262

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
157,041
151,708
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
225,154
103,757
Other interest income
-
0
6,667
Total income
225,154
110,424
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
980
-
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
944,341
406,071
Adjustments in respect of prior periods
(4,007)
(928)
Total current tax
940,334
405,143
Deferred tax
Origination and reversal of timing differences
(9,585)
43,575
Total tax charge
930,749
448,718
PEGASUS FIRE PROTECTION COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
10
Taxation
(Continued)
- 17 -

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
3,737,070
2,058,010
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
934,268
442,884
Tax effect of expenses that are not deductible in determining taxable profit
488
790
Adjustments in respect of prior years
(4,007)
(928)
Remeasurement of deferred tax for changes in tax rates
-
0
6,074
Other tax adjustments
-
0
(102)
Tax expense for the year
930,749
448,718
11
Dividends
2024
2023
£
£
Ordinary interim paid
1,366,500
1,366,500
PEGASUS FIRE PROTECTION COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -
12
Tangible fixed assets
Fixtures, fittings & equipment
Motor    vehicles
Total
£
£
£
Cost
At 1 September 2023
64,752
639,226
703,978
Additions
-
0
98,590
98,590
Disposals
(10,702)
(135,118)
(145,820)
At 31 August 2024
54,050
602,698
656,748
Depreciation and impairment
At 1 September 2023
56,780
327,778
384,558
Depreciation charged in the year
2,485
60,000
62,485
Eliminated in respect of disposals
(6,138)
(104,870)
(111,008)
At 31 August 2024
53,127
282,908
336,035
Carrying amount
At 31 August 2024
923
319,790
320,713
At 31 August 2023
7,972
311,448
319,420
13
Investment property
2024
£
Fair value
At 1 September 2023
694,880
Additions
91,466
At 31 August 2024
786,346

The directors consider the investment property to be stated at their fair value at the year end date.

14
Stocks
2024
2023
£
£
Raw materials and consumables
14,200
17,450
Work in progress
490,000
490,000
504,200
507,450
PEGASUS FIRE PROTECTION COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
850,090
448,134
Gross amounts owed by contract customers
1,546,088
1,430,538
Other debtors
920,219
872,750
Prepayments and accrued income
41,713
41,713
3,358,110
2,793,135
16
Creditors: amounts falling due within one year
2024
2023
£
£
Payments received on account
28,529
202,414
Trade creditors
821,025
1,233,765
Corporation tax
593,564
409,301
Other taxation and social security
66,881
81,000
Accruals and deferred income
639,492
465,473
2,149,491
2,391,953
17
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
50,026
49,281
Short term timing differences
(11,383)
(1,053)
38,643
48,228
2024
Movements in the year:
£
Liability at 1 September 2023
48,228
Credit to profit or loss
(9,585)
Liability at 31 August 2024
38,643
PEGASUS FIRE PROTECTION COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
18
Retirement benefit schemes

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
58,978
48,123
19
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
4,200 A Ordinary Shares of £1 each
4,200
4,200
4,200 B Ordinary Shares of £1 each
4,200
4,200
900 C Ordinary Shares of £1 each
900
900
900 D Ordinary Shares of £1 each
900
900
900 E Ordinary Shares of £1 each
900
900
900 F Ordinary Shares of £1 each
900
900
12,000
12,000

 

All shares rank pari passu in respect of voting rights and in respect of dividends paid from distributable reserves accumulated from 1 September 2018 onwards. Distributable reserves accumulated prior to 1 September 2018 are retained for application by way of payment of dividends to the holders of only the A ordinary shares and B ordinary shares.

20
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
50,000
15,844
In over five years
418,750
-
0
468,750
15,844
PEGASUS FIRE PROTECTION COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
21
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Purchase of goods
2024
2023
£
£
Associated entities through common directorships
457,718
257,651
Other related parties
49,333
45,000
507,051
302,651
Loan Interest Received
2024
2023
£
£
Loan interest received - Other related parties
36,667
6,667
The following amounts were due by the company at the reporting end date:
Amounts owed to related parties
2024
2023
Associated entities through common directorships
29,296
38,794
The following amounts were due to the company at the reporting end date:
Amounts owed by related parties
2024
2023
Other related parties
512,500
511,250
All related party transactions undertaken by the company were in the ordinary course of business. No guarantees have been given or received over any of the above balances.

 

At year end, there was a loan outstanding for the amount of £500,000 to a related party that has since been fully repaid in the post-year end period.

PEGASUS FIRE PROTECTION COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
22
Directors' transactions

Dividends totalling £1,168,500 (2023 - £1,267,500) were paid in the year in respect of shares held by the company's directors.

23
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
2,806,321
1,609,292
Adjustments for:
Taxation
930,749
448,718
Finance costs
980
-
0
Investment income
(225,154)
(110,424)
Gain on disposal of tangible fixed assets
(4,099)
(14,796)
Depreciation and impairment of tangible fixed assets
62,485
60,000
Movements in working capital:
Decrease in stocks
3,250
(1,450)
(Increase) in debtors
(414,975)
(489,235)
(Decrease)/increase in creditors
(426,725)
805,041
Cash generated from operations
2,732,832
2,307,146
24
Analysis of changes in net funds
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
8,390,325
533,290
8,923,615
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