SUSTAINABLE BUILDING SERVICES (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
Company Registration No. 01382149 (England and Wales)
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
COMPANY INFORMATION
Directors
Mr D I Horrocks
Mr G I Lawson
Company number
01382149
Registered office
2b Maple Court
Maple View
White Moss Business Park
Skelmersdale
WN8 9TW
Auditor
DSG Audit
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
Bankers
Santander UK PLC
Solicitors
DWF LLP
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2025
- 1 -
The directors present the strategic report for the year ended 31 January 2025.
Review of the business
As shown in the company’s statement of comprehensive income, revenue year was £65.1m (2024: £43.9m) and profit before tax £8.65m (2024: £5.4m). Trading has continued to improve impressively. During the previous year, trading had increased significantly and this has further improved in the period under review. The outlook remains extremely positive for the company and order books are showing significant growth for the next two years at least.
The company’s financial position has improved with net assets of £10.8m (2024: £6.9m) at the period end.
The business remains committed to growing sales and profitability into the future by continuing to build lasting partnerships with some of the country's best-known housing associations and local authorities. We are also continuing to build our presence in the business to consumer sector. We are wholly committed to partnership working. Through strict quality control and a culture of communication and accountability, we will continue to make ourselves as valuable as possible to our customers,clients and their residents. Our core activities will remain in the quickly growing decarbonisation of homes sector, with particular expertise in creating modern, energy efficient domestic living space. The concept of sustainability is central to our vision and values. The importance of environmental sustainability will continue to drive our energy efficiency and decarbonisation work and we also strive to ensure greater sustainability in communities, in our workforce and in our own business model.
Principal risks and uncertainties
There are a number of risks and uncertainties that can impact on the performance of Sustainable Building Services (UK) Limited, some of which are beyond the control the company. The company monitors market trends and risks on an ongoing basis and takes corrective action as and when required.
Competitive pressure in the industry it operates in are an ongoing risk to the company which could result in losing market share to its main competitors. To manage this risk the company maintains strong relationships with its customers with high levels of customer service, expertise and the ability to offer a comprehensive range of services.
Key performance indicators
The directors consider the key performance indicators to be: -
Turnover and gross profit margin
The company’s turnover for the year was £65.1m, up considerably on the year to 31 January 2024 (£43.9m). The company’s gross profit margin was similar to the previous period at 20.0% (2024: 20.4%).
Profit before tax
The company maintains strong controls over fixed costs and other overheads. Profit before tax increased by £3,114,605 to £8,530,295 in the year to 31 January 2025.
Cash and liquidity
The cash balance at the period end was £16,820,550 (2024: £11,251,571). The company maintains strong cash control which has enabled it to meet its obligations to suppliers and other creditors as they fall due.
Shareholder equity
Shareholders’ equity increased by £3,968,344 to £10,834,075 (2024: £6,865,731) in the period. This was after a dividend of £2,390,000 (2024: £1,030,000) was paid to its immediate parent company Sustainable Group (UK) Limited.
Employees
Average headcount for 2025 was 100 (2024: 64). The company continues to invest in its strategies for the training, development and retention of employees.
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 2 -
Promoting the success of the company
In accordance with Section 172 of the Companies Act 2006, the directors of Sustainable Building Services (UK) Ltd (SBS) confirm that they have acted in a manner they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. In doing so, they have had regard to the following matters:
1. The likely consequences of any decision in the long term: The directors prioritise sustainable growth by investing in innovative energy efficiency solutions and maintaining compliance with industry standards. This long-term strategy ensures the company remains at the forefront of the decarbonisation sector.
2. The interests of the company’s employees: Employee welfare is paramount. The company fosters a positive working culture, offers career development opportunities, and actively promotes diversity and inclusion within the workforce.
3. The need to foster the company’s business relationships with suppliers, customers, and others: SBS maintains strong relationships with clients, suppliers, and stakeholders by delivering high-quality projects and ensuring transparent communication. Collaborative partnerships are essential to the company's success in delivering large-scale retrofit projects.
4. The impact of the company’s operations on the community and the environment: The company is dedicated to improving living conditions and reducing carbon emissions. By delivering energy-efficient solutions, SBS contributes to community well-being and supports the UK's net-zero targets.
5. The desirability of the company maintaining a reputation for high standards of business conduct: SBS upholds the highest standards of integrity and professionalism. The company's accolades reflect its commitment to excellence and ethical business practices.
6. The need to act fairly as between members of the company: The directors ensure that decisions are made equitably, considering the interests of all shareholders and stakeholders to promote the company's overall success.
This statement reflects the directors' commitment to responsible governance and sustainable business practices.
Mr D I Horrocks
Director
4 June 2025
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2025
- 3 -
The directors present their annual report and financial statements for the year ended 31 January 2025.
Principal activities
The principal activity of the company is that of the provision of a specialist contractor in energy efficiency measures and property maintenance.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid or approved amounting to £2,390,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D I Horrocks
Mr G I Lawson
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Financial instruments
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The company is exposed to cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.
Credit risk
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Auditor
DSG resigned as auditor on 25 February 2025. DSG Audit were appointed on 25 February 2025 to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Energy and carbon report
In accordance with the Companies (Directors’ Report) and Limited Liability Partnerships (Amendment) Regulations 2013, the Company qualifies for an exemption from the requirement to provide detailed energy and carbon information.
This exemption is claimed on the grounds that Sustainable Building Services (UK) Limited is a subsidiary undertaking included in the consolidated annual report and carbon reporting of Sustainable Investments Limited, prepared for the financial year ended 31 January 2025.
The consolidated annual report of Sustainable Investments Limited is publicly available at Sustainable Investments Limited's registered office at 2b Maple Court, Maple View, White Moss Business Park, Skelmersdale, Lancashire, WN8 9TW.
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 4 -
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
Mr D I Horrocks
Director
4 June 2025
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2025
- 5 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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.
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SUSTAINABLE BUILDING SERVICES (UK) LIMITED
- 6 -
Opinion
We have audited the financial statements of Sustainable Building Services (UK) Limited (the 'company') for the year ended 31 January 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 January 2025 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SUSTAINABLE BUILDING SERVICES (UK) LIMITED (CONTINUED)
- 7 -
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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SUSTAINABLE BUILDING SERVICES (UK) LIMITED (CONTINUED)
- 8 -
Capability of the audit in detecting irregularities, including fraud
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. The following laws and regulations were identified as being of significance to the entity:
· Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.
· Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include environmental regulations, health and safety legislation, trades description act and employment legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; reviewing post year end payments for evidence of claims pay outs and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Jean Ellis BA FCA CTA (Senior Statutory Auditor)
For and on behalf of DSG Audit, Statutory Auditor
Chartered Accountants
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
4 June 2025
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2025
- 9 -
2025
2024
Notes
£
£
Turnover
3
65,116,398
43,910,079
Cost of sales
(52,066,058)
(34,963,907)
Gross profit
13,050,340
8,946,172
Administrative expenses
(4,857,032)
(3,676,297)
Operating profit
4
8,193,308
5,269,875
Interest receivable and similar income
8
372,800
146,852
Interest payable and similar expenses
9
(35,813)
(1,037)
Profit before taxation
8,530,295
5,415,690
Tax on profit
10
(2,171,951)
(1,315,173)
Profit for the financial year
6,358,344
4,100,517
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2025
31 January 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
12
161,305
125,684
Investments
13
104,192
122,167
265,497
247,851
Current assets
Debtors
14
9,435,026
7,303,588
Cash at bank and in hand
16,820,550
11,251,571
26,255,576
18,555,159
Creditors: amounts falling due within one year
15
(15,665,586)
(11,929,699)
Net current assets
10,589,990
6,625,460
Total assets less current liabilities
10,855,487
6,873,311
Provisions for liabilities
Deferred tax liability
16
21,412
7,580
(21,412)
(7,580)
Net assets
10,834,075
6,865,731
Capital and reserves
Called up share capital
18
100
100
Profit and loss reserves
10,833,975
6,865,631
Total equity
10,834,075
6,865,731
The financial statements were approved by the board of directors and authorised for issue on 4 June 2025 and are signed on its behalf by:
Mr D I Horrocks
Director
Company registration number 01382149 (England and Wales)
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2025
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2023
100
3,795,114
3,795,214
Year ended 31 January 2024:
Profit and total comprehensive income
-
4,100,517
4,100,517
Dividends
11
-
(1,030,000)
(1,030,000)
Balance at 31 January 2024
100
6,865,631
6,865,731
Year ended 31 January 2025:
Profit and total comprehensive income
-
6,358,344
6,358,344
Dividends
11
-
(2,390,000)
(2,390,000)
Balance at 31 January 2025
100
10,833,975
10,834,075
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2025
- 12 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
9,992,898
7,561,842
Interest paid
(35,813)
(1,037)
Income taxes paid
(2,163,600)
(722,825)
Net cash inflow from operating activities
7,793,485
6,837,980
Investing activities
Purchase of tangible fixed assets
(95,042)
(110,000)
Purchase of investments
(127,484)
Proceeds from disposal of investments
15,220
Interest received
372,800
146,852
Net cash generated from investing activities
165,494
36,852
Financing activities
Dividends paid
(2,390,000)
(1,030,000)
Net cash used in financing activities
(2,390,000)
(1,030,000)
Net increase in cash and cash equivalents
5,568,979
5,844,832
Cash and cash equivalents at beginning of year
11,251,571
5,406,739
Cash and cash equivalents at end of year
16,820,550
11,251,571
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
- 13 -
1
Accounting policies
Company information
Sustainable Building Services (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2b Maple Court, Maple View, White Moss Business Park, Skelmersdale, WN8 9TW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation 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 represents amounts receivable for goods and services net of VAT and trade discounts.
Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses.
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:
Land and buildings Leasehold
25% Straight Line
Fixtures, fittings & equipment
20% - 44% Straight Line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 14 -
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
Other investments, whose fair value cannot be reliably determined, are stated at historic cost less impairment.
1.6
Impairment of fixed assets
At each reporting period end date, the company 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.
1.8
Cash and cash equivalents
Cash and cash equivalents 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. Bank overdrafts are shown within borrowings in current liabilities.
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 15 -
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
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.
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 17 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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 leases asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 18 -
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Construction contracts
Management has exercised significant judgment in determining the appropriate timing and amount of revenue recognised from construction contracts. The assessment of the stage of completion and the recognition of revenue under the input method (costs incurred relative to total estimated costs) requires estimation of total contract revenue, total contract costs, and the expected outcome of the project, including variations and claims.
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.
Construction contracts
The company recognises revenue over time based on the proportion of costs incurred to date compared to the total expected costs to complete each contract. The assessment of the final outcome of construction contracts involves uncertainties such as forecasting future costs, resolving contract variations and claims, and assessing potential penalties or liquidated damages. If the actual outcomes differ from management’s estimates, there could be material adjustments to revenue and profit in future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2025
2024
£
£
Turnover analysed by class of business
Building services
65,116,398
43,910,079
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
65,116,398
43,910,079
2025
2024
£
£
Other revenue
Interest income
372,800
146,852
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 19 -
4
Operating profit
2025
2024
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
59,421
30,290
Operating lease charges
209,779
174,123
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
24,117
25,160
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2025
2024
Number
Number
Average number of employees
100
64
Their aggregate remuneration comprised:
2025
2024
£
£
Wages and salaries
4,355,929
2,772,316
Social security costs
446,490
290,799
Pension costs
110,512
79,969
4,912,931
3,143,084
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
162,820
165,640
Company pension contributions to defined contribution schemes
2,420
1,828
165,240
167,468
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).
The directors of the company are considered to be the key management personnel.
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 20 -
8
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
372,800
146,852
2025
2024
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
372,800
146,852
9
Interest payable and similar expenses
2025
2024
£
£
Other finance costs:
Other interest
35,813
1,037
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
2,166,843
1,322,341
Adjustments in respect of prior periods
(8,724)
(7,907)
Total current tax
2,158,119
1,314,434
Deferred tax
Origination and reversal of timing differences
13,832
739
Total tax charge
2,171,951
1,315,173
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
10
Taxation
(Continued)
- 21 -
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:
2025
2024
£
£
Profit before taxation
8,530,295
5,415,690
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
2,132,574
1,353,923
Tax effect of expenses that are not deductible in determining taxable profit
43,850
22,458
Adjustments in respect of prior years
(8,724)
(7,907)
Effect of change in corporation tax rate
(53,371)
Permanent capital allowances in excess of depreciation
4,251
70
Taxation charge for the year
2,171,951
1,315,173
11
Dividends
2025
2024
£
£
Interim paid
2,390,000
1,030,000
12
Tangible fixed assets
Land and buildings Leasehold
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 February 2024
38,271
153,453
191,724
Additions
95,042
95,042
At 31 January 2025
38,271
248,495
286,766
Depreciation and impairment
At 1 February 2024
38,271
27,769
66,040
Depreciation charged in the year
59,421
59,421
At 31 January 2025
38,271
87,190
125,461
Carrying amount
At 31 January 2025
161,305
161,305
At 31 January 2024
125,684
125,684
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 22 -
13
Fixed asset investments
2025
2024
£
£
Other investments
104,192
122,167
Movements in fixed asset investments
Other
£
Cost or valuation
At 1 February 2024
122,167
Additions
127,484
Impairment charges
(130,239)
Disposals
(15,220)
At 31 January 2025
104,192
Carrying amount
At 31 January 2025
104,192
At 31 January 2024
122,167
14
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
5,146,564
4,505,475
Gross amounts owed by contract customers
2,196,309
964,435
Amounts owed by group undertakings
1,644,481
1,629,812
Other debtors
152,302
6,738
Prepayments and accrued income
295,370
197,128
9,435,026
7,303,588
Trade debtors disclosed above are measured at amortised cost.
Amounts due from fellow group undertakings are interest free, hence have no fixed date of repayment and are repayable upon demand.
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 23 -
15
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
5,209,577
4,177,451
Gross amounts owed to contract customers
917,283
1,651,860
Amounts owed to group undertakings
760,921
401,419
Corporation tax
916,860
922,341
Other taxation and social security
745,408
481,977
Other creditors
30,092
458,269
Accruals and deferred income
7,085,445
3,836,382
15,665,586
11,929,699
16
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 (after offset) for financial reporting purposes:
Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
23,585
7,580
Other short term timing differences
(2,173)
-
21,412
7,580
2025
Movements in the year:
£
Liability at 1 February 2024
7,580
Charge to profit or loss
13,832
Liability at 31 January 2025
21,412
17
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
110,512
79,969
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.
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 24 -
18
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
100
100
100
100
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2025
2024
£
£
Within one year
111,385
146,454
Between two and five years
240,992
296,864
In over five years
55,512
111,024
407,889
554,342
20
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Purchases
Purchases
2025
2024
£
£
Permarock Products Limited
5,081,173
4,464,878
Sustainable Energy Services (UK) Limited
573,968
515,094
The following amounts were outstanding at the reporting end date:
2025
2024
Amounts due to related parties
£
£
Permarock Products Limited
636,741
318,773
Sustainable Energy Services (UK) Limited
124,180
82,646
The following amounts were outstanding at the reporting end date:
2025
2024
Amounts due from related parties
£
£
Sustainable Group (UK) Limited
1,629,812
1,629,812
Permarock Products Limited
14,669
-
Sustainable Energy Services (UK) Limited
-
2,193
SUSTAINABLE BUILDING SERVICES (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
20
Related party transactions
(Continued)
- 25 -
D I Horrocks is a director and ultimate controlling party of Sustainable Building Services (UK) Limited and is the ultimate controlling party of Sustainable Group (UK) Limited , Sustainable Energy Services (UK) Limited , Permarock Products Limited and Sustainable Investments Limited. All entities are subsidiary companies of Sustainable Investments Limited.
21
Ultimate controlling party
The ultimate parent company is Sustainable Investments Limited, a company incorporated in Great Britain and registered in England and Wales. The registered office is 2b Maple Court, Maple View, White Moss Business Park, Skelmersdale, Lancashire, WN8 9TW. Sustainable Investments Limited prepares consolidated financial statements which includes Sustainable Building Services (UK) Limited.
22
Cash generated from operations
2025
2024
£
£
Profit after taxation
6,358,344
4,100,517
Adjustments for:
Taxation charged
2,171,951
1,315,173
Finance costs
35,813
1,037
Investment income
(372,800)
(146,852)
Depreciation and impairment of tangible fixed assets
59,421
30,290
Impairment of investments
130,239
-
Movements in working capital:
Increase in debtors
(2,131,438)
(3,048,417)
Increase in creditors
3,741,368
5,310,094
Cash generated from operations
9,992,898
7,561,842
23
Analysis of changes in net funds
1 February 2024
Cash flows
31 January 2025
£
£
£
Cash at bank and in hand
11,251,571
5,568,979
16,820,550
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