Registration number:
Shenton Global Limited
for the Year Ended 31 December 2024
Shenton Global Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Shenton Global Limited
Company Information
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Directors |
Mr D C Meek Mr J B Meek Mr C J Meek |
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Registered office |
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Accountants |
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Auditors |
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Shenton Global Limited
Strategic Report for the Year Ended 31 December 2024
The directors present their strategic report for the year ended 31 December 2024.
Fair review of the business
We aim to present a balanced and comprehensive review of the development and performance of the company during the year and its position at the year end. Our review is consistent with the size of the business and is written in the context of the risks, opportunities, and uncertainties we face.
2024 has been a year of continued progress for Shenton Global, rebuilding from the trading losses sustained in 2022 with the decision to exit CHP Capital projects, and the impact of the contracts that were recognised as onerous in that period.
The business has shown 2.4% growth on the 2023 continuing operations, with £20.7m of revenue (2023: £20.5m), driven by growth in our services and capital divisions, with improved cost control and performance leading to better delivery on these contracts. This has led to significant improvements on the cash flow from operating activities being an inflow £2,058k (2023: £426k inflow). This all drives Shenton Global further down the path of recovery, with solid foundations reestablished for substantial growth.
The continuing operations of Shenton Global delivered a positive revenue growth, highlighting resilience and strong recurring revenue. This business has improved profitability and highlights the strength of Shenton Global. Our pipeline and order book at the end of the year shows a very resilient business, with the opportunities for good revenue growth into 2025 and beyond.
The performance of these contracts, the underlying market and Shenton Global's place in that market, have confirmed the decision to exit the market for CHP Capital sales, while maintaining our position as one of the leading providers to ongoing maintenance and support to this part of the market.
The strength of the business very much lies in its multiple areas of operation. These are:
•Projects: the capital sales of generators and UPS systems, this department continued to deliver strong sales in the year, delivering on the larger projects sold at the end of 2023. The revenue recognized in 2024 is slightly down on 2023, but that is reflective of the timing and the increased size and complexity of the projects being worked on. The forward order book at the end of Q1 2025 is very strong, highlighting the strength of the performance and our reputation in the market place. The projects delivered and recognized in 2024 shows continued improvement on Shentons operational performance.
•Rental: the rental department continues to show good annual revenue, showing over £2m of revenue for the first time. The continued growth of the fleet has led to the delivery of improved margins.
•Service: our Service division, consisting of our Power Call, PowerCare and PowerCare CHP units have continued to provide our customers with ongoing peace of mind, with ongoing service and maintenance of units covered by Shenton to ensure optimum performance. 2024 has shown good growth of revenue in this area, and improved efficiency as we continue with the roll out of our software solutions to improve the delivery of our nationwide, field-based team. We have invested in on-going training and development around this team, and have seen the benefits in account retention and growth.
Shenton Global Limited
Strategic Report for the Year Ended 31 December 2024
During the period the company undertook research and development activities within several areas of the operation. This was approached on a structured and systematic basis, with the intention of developing new processes and methodologies to improve the performance and efficiency of the business as a whole, and to explore the potential development of new and extended product offerings in a dynamic commercial environment.
At year end the company has an improved cash position, vastly improved team capabilities, and systems and processes in place to support and propel the company throughout 2025. Financial and business governance has increased through the ongoing development of a C-Suite, the growth of the Senior Leadership Team and continued improvement of internal processes. Cash flow management continues to be more and more essential as the business undertakes larger projects, and the Finance department are monitoring this weekly with a very accurate short-term cashflow tool. The business works closely with our clients on large projects to, where possible, ensure a positive cash flow throughout the duration of the project.
A bank overdraft facility remains in place and is used to support the cash flow of large capital sale projects where required.
The company's key financial and other performance indicators during the year were as follows:
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Financial KPIs |
Unit |
2024 |
2023 |
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Turnover |
£ |
20,657,270 |
21,011,450 |
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Gross profit margin |
% |
34 |
32 |
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Profit/(Loss) |
£ |
1,118,151 |
1,260,921 |
Future developments
The Company has continued to focus on its core strengths and the building of a sustainable, scalable business, delivering good returns for the stake holders. This has led to Shenton Global being specified on a number of larger projects, which has led on to significant capital project opportunities being landed in the early part of 2025. Shenton Global Ltd continue to support the on-going maintenance of our existing CHP fleet, and are actively seeking to grow this income stream, without taking on the financial and operational burden of the capital sales of these units.
Future plans and developments include continued growth of the maintenance and rental revenue channels, consolidating our capital generator projects and installation standing in the market, strengthening and increasing the size and capability of our Technical Team, and further streamlining of all systems and processes across the company to ensure maximum efficiency in all departments. The business has made good progress in replacing the revenue stream derived from the CHP Capital business, and have made significant improvements to the cash performance, absorbing the impact of the exceptional losses reported in 2022.
The internal structure of the business has been enhanced with training and development of softer skills for newer layers of management to ensure that the Company is ready for future growth and development, while maintaining a solid level of resilience.
Furthermore, our internal Technical Team have continued to again invest heavily in Computer Aided Design, Building Information Modelling, REVIT drawing software and draughtsmen. This department will continue to develop and grow as we put more and more time and resource into Research and Development projects.
Shenton Global Limited
Strategic Report for the Year Ended 31 December 2024
Principal risks and uncertainties
The unpredictable nature of capital sales presents a risk to the company, although this is clearly monitored and negated by very close management and monitoring of the sales pipeline at all times of the year. Currently the business sits with the largest quote bank in history and a number of large-scale UK superpowers contacting the company asking for support in their emergency power requirements. As ever, the strength of the business lies in the fact we also have strong service and rental departments which supports the business well when capital sales are lower than usual.
With the inherent macro-economic risk presented to all markets currently due to the global instability especially with the current situations in Ukraine, the Middle East and the ongoing global tensions, the Senior Leadership Team have analysed all risks identified and sought to negate these by taking decisive action on all fronts. Fluctuations in exchange rates will present risks and are closely monitored each day by the Chief Financial Officer. Various safeguarding strategies are in place and have proven themselves to work well including forwards, spot buying, hedging and collars.
Approved and authorised by the
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Shenton Global Limited
Directors' Report for the Year Ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
Principal activity
The principal activity of the company is the provision of power supplies and related servicing, covering Generators, Uninterruptible Power Supplies (UPS) and Combined Heat and Power (CHP).
Shenton Global are referred to as Shenton Group as part of our ongoing trading.
Directors of the company
The directors who held office during the year were as follows:
Information included in the Strategic Report
The following items as required under Schedule 7 of the Companies Act 2006 are set out in the strategic report:
•The important events since the period end;
•future developments; and
•research and development activities.
Financial instruments
Objectives and policies
The activities expose the company to financial risks of changes in foreign currency exchange rates.
The business' principal financial instruments comprise bank balances, trade debtors, trade creditors, loans to the business and finance lease agreements. The main purpose of these instruments is to finance the company’s operations.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Loans comprise loans from financial institutions. The interest rates and monthly repayments are fixed.
The company manages the liquidity risk by ensuring that there are sufficient funds to meet the payments.
The business is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed by ensuring that there are sufficient funds to meet the payments.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved and authorised by the
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Shenton Global Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Strategic 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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
Approved and authorised by the
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Shenton Global Limited
Independent Auditor's Report to the Members of Shenton Global Limited
Opinion
We have audited the financial statements of Shenton Global Limited (the 'company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2024 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. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Shenton Global Limited
Independent Auditor's Report to the Members of Shenton Global Limited
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | 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 Statement of Directors' Responsibilities [set out on page 6], 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 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:
As part of an audit in accordance with ISAs (UK), exercise professional judgement and maintain professional scepticism through the audit. We also:
1. Assessed the susceptibility of the entity's financial statements to material misstatement, including how fraud may occur.
2. Held discussions with the client regarding their policies and procedures on compliance with laws and regulations.
3. Held discussions with the client regarding their policies and procedures on fraud risks, including knowledge of any actual, suspected, or alleged fraud.
We consider the entity's controls effective in identifying fraud. We do not consider there to be significant difficulty in detecting irregularities.
Because of the inherent limitations of an audit, there is 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 occuring 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: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Shenton Global Limited
Independent Auditor's Report to the Members of Shenton Global Limited
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.
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For and on behalf of
Chartered Accountants
12 Conqueror Court
Kent
ME10 5BH
Shenton Global Limited
Profit and Loss Account for the Year Ended 31 December 2024
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Note |
Continuing operations |
Discontinued operations |
Total |
Continuing operations |
Discontinued operations |
Total |
|
|
Turnover |
|
- |
|
|
|
|
|
|
Cost of sales |
( |
- |
( |
( |
( |
( |
|
|
Gross profit/(loss) |
|
- |
|
|
( |
|
|
|
Administrative expenses |
( |
- |
( |
( |
( |
( |
|
|
Exceptional income |
|
- |
|
- |
- |
- |
|
|
Exceptional expenditure |
( |
- |
( |
- |
- |
- |
|
|
Operating profit/(loss) |
|
- |
|
|
( |
|
|
|
Other interest receivable and similar income |
|
- |
|
|
|
|
|
|
Interest payable and similar expenses |
( |
- |
( |
( |
( |
( |
|
|
(63,704) |
- |
(63,704) |
(85,809) |
(3,253) |
(89,062) |
||
|
Profit/(loss) before tax |
|
- |
|
|
( |
|
|
|
Tax on profit |
( |
- |
( |
|
|
|
|
|
Profit/(loss) for the financial year |
|
- |
|
|
( |
|
The company has no recognised gains or losses for the year other than the results above.
Shenton Global Limited
(Registration number: 10427830)
Balance Sheet as at 31 December 2024
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Note |
2024 |
(As restated) |
|
|
Fixed assets |
|||
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Intangible assets |
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|
|
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Tangible assets |
|
|
|
|
|
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||
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Current assets |
|||
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Stocks |
|
|
|
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Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
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Called up share capital |
1,900,800 |
1,900,800 |
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|
Retained earnings |
1,235,494 |
585,843 |
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Shareholders' funds |
3,136,294 |
2,486,643 |
Approved and authorised by the
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Shenton Global Limited
Statement of Changes in Equity for the Year Ended 31 December 2024
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Share capital |
Retained earnings |
Total |
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|
At 1 January 2024 |
|
|
|
|
Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 31 December 2024 |
|
|
|
|
Share capital |
Retained earnings |
Total |
|
|
At 1 January 2023 |
|
( |
|
|
Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 31 December 2023 |
1,900,800 |
585,843 |
2,486,643 |
Shenton Global Limited
Statement of Cash Flows for the Year Ended 31 December 2024
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Note |
2024 |
(As restated) |
|
|
Cash flows from operating activities |
|||
|
Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
|
Finance income |
( |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
( |
|
|
|
|
||
|
Working capital adjustments |
|||
|
Decrease/(increase) in stocks |
|
( |
|
|
Decrease/(increase) in trade debtors |
|
( |
|
|
(Decrease)/increase in trade creditors |
( |
|
|
|
Increase/(decrease) in provisions |
|
( |
|
|
(Decrease)/increase in deferred income, including government grants |
( |
|
|
|
Cash generated from operations |
|
( |
|
|
Income taxes received |
|
|
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
|
|
|
Net cash flows from investing activities |
( |
|
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Proceeds from bank borrowing draw downs |
|
|
|
|
Repayment of bank borrowing |
( |
( |
|
|
Net receipts/(payments) to finance lease creditors |
( |
( |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
|
Cash and cash equivalents at 1 January |
|
|
|
|
Cash and cash equivalents at 31 December |
1,162,934 |
100,278 |
|
Shenton Global Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.
Judgements
The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements: |
Key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:
Calculations in respect of ongoing work that straddles the year end, and the appropriate recognition of costs and income to the balance sheet date.
Revenue recognition
Revenue is recognised to the extent that the company obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and other sales tax or duty.
In respect of long-term contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.
Shenton Global Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Foreign currency transactions and balances
Foreign currency hedging is utilised to reduce exposure to changes in exchange rates.
Tax
Deferred tax is provided on the liability method to take account of timing differences between the treatment of certain items for accounts purposes and their treatment for tax purposes. Tax deferred or accelerated is accounted for in respect of all material timing differences.
Tangible assets
Tangible fixed assets are included at cost less depreciation and impairment.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Land and buildings |
Buildings over 125 years |
|
Plant and machinery |
20-50% straight line basis, 20% reducing balance |
|
Fixtures and fittings |
20-50% straight line basis, 20% reducing balance |
|
Motor vehicles |
20% straight line basis |
|
Office equipment |
20-50% straight line basis, 20% reducing balance |
|
Leasehold improvements |
10% straight line basis |
Goodwill
Goodwill is capitalised and amortised over its useful life.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
10% straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors with no stated interest rate and receivable within one year are recorded at transaction price. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks have been valued at the lower of cost and estimated selling price less costs to sell. In respect of work in progress and finished goods, cost includes a relevant proportion of overheads according to the stage of manufacture/completion. Cost is calculated using average cost.
Shenton Global Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Leases
Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Property, plant and equipment acquired under finance leases or hire purchase contracts are capitalised and depreciated in the same manner as other tangible fixed assets. The related obligations, net of future finance charges, are included in creditors.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Shenton Global Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Financial instruments
Classification
|
Turnover |
The analysis of the company's turnover for the year from continuing and discontinued operations is as follows:
|
2024 |
(As restated) |
|
|
Sale of goods |
|
|
|
Rendering of services |
|
|
|
Other revenue |
|
|
|
|
|
The analysis of the company's turnover for the year by class of business is as follows:
|
2024 |
(As restated) |
|
|
Service |
|
|
|
Capital - Power Systems |
|
|
|
Capital - Power Therm |
- |
767,007 |
|
Power call |
|
|
|
Rental |
2,044,565 |
1,749,351 |
|
Other |
3,125 |
3,336 |
|
Other revenue |
32,777 |
- |
|
|
|
|
Exceptional items |
The analysis of the company's exceptional items for the year is as follows:
|
2024 |
2023 |
|
|
Exceptional income |
|
- |
|
Exceptional expenditure |
(400,000) |
- |
|
- |
- |
During the year, a generator installed by Shenton Global Ltd suffered a third party component failure which led to a fuel spill leading to clean up expenditure being incurred of £400k. Due to its material size and one off nature, this has been recognised as an exceptional expense in the financial statements. This expense has been met by an insurance claim of the same amount which has been recognised as an item of exceptional income’.
Shenton Global Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Other gains and losses |
The analysis of the company's other gains and losses for the year is as follows:
|
2024 |
(As restated) |
|
|
Gain on disposal of tangible assets |
|
|
|
Loss from changes in provisions |
( |
( |
|
(62,240) |
(219,387) |
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Operating lease expense - plant and machinery |
|
|
|
Profit on disposal of property, plant and equipment |
( |
( |
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Interest income on bank deposits |
|
|
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
Shenton Global Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
Sales, marketing and distribution |
|
|
|
Other departments |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
- |
|
UK corporation tax adjustment to prior periods |
( |
( |
|
48,762 |
(593,532) |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Tax expense/(receipt) in the income statement |
|
( |
Shenton Global Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
(As restated) |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Decrease in UK and foreign current tax from adjustment for prior periods |
( |
( |
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Effect of tax losses |
( |
|
|
Tax decrease from effect of adjustment in research and development tax credit |
- |
( |
|
Total tax charge/(credit) |
|
( |
Deferred tax
Deferred tax assets and liabilities
|
2023 |
Asset |
Liability |
|
Accelerated tax depreciation |
- |
|
|
R&D tax credit and losses c/fwd |
|
- |
|
|
|
The deferred tax liability arising on the timing difference between depreciation and capital allowances is expected to reduce to zero over the useful life of the assets on which the timing differences arose.
13 Discontinued operations
Following the decision to exit the CHP capital business, taken in 2022, we had a small amount of cost and revenue in the period related to the final closure of contracts to install capital items in Combined Heat and Power (CHP). These projects are now all completed.
Shenton Global Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Intangible assets |
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
At 1 January 2024 |
|
|
|
At 31 December 2024 |
|
|
|
Amortisation |
||
|
At 1 January 2024 |
|
|
|
Amortisation charge |
|
|
|
At 31 December 2024 |
|
|
|
Carrying amount |
||
|
At 31 December 2024 |
|
|
|
At 31 December 2023 |
|
|
Shenton Global Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Tangible assets |
|
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Other tangible assets |
Total |
|
|
Cost or valuation |
|||||
|
At 1 January 2024 |
|
|
|
|
|
|
Additions |
|
|
|
|
|
|
Disposals |
- |
( |
( |
( |
( |
|
At 31 December 2024 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 January 2024 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
- |
( |
( |
( |
( |
|
At 31 December 2024 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 December 2024 |
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
Included within the net book value of land and buildings above is £962,953 (2023 - £967,447) in respect of long leasehold land and buildings.
Shenton Global Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2024 |
2023 |
|
|
Motor Vehicles |
357,868 |
337,048 |
|
Plant and machinery |
278,476 |
347,904 |
|
636,344 |
684,952 |
|
Stocks |
|
2024 |
2023 |
|
|
Production supplies |
|
|
|
Stock provision |
( |
- |
|
|
|
|
Debtors |
|
Current |
Note |
2024 |
2023 |
|
Trade debtors |
|
|
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
|
|
Accrued income |
- |
|
|
|
Gross amount due from customers for contract work |
|
|
|
|
Deferred tax assets |
- |
|
|
|
|
|
|
Cash and cash equivalents |
|
2024 |
2023 |
|
|
Cash on hand |
- |
|
|
Cash at bank |
|
|
|
|
|
Shenton Global Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Creditors |
|
Note |
2024 |
(As restated) |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
Other payables |
|
|
|
|
Accruals and deferred income |
|
|
|
|
Income tax liability |
143,224 |
- |
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
|
Provisions for liabilities |
|
Onerous contracts |
Deferred tax |
Other provisions |
Total |
|
|
At 1 January 2024 |
- |
|
|
|
|
Increase (decrease) in existing provisions |
- |
( |
|
|
|
At 31 December 2024 |
- |
|
|
|
|
|
||||
Other provisions includes provision for general overhauls, standard overhauls and cylinder head replacement.
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Shenton Global Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
800 |
|
800 |
|
|
|
1,000,000 |
|
1,000,000 |
|
|
|
900,000 |
|
900,000 |
|
|
|
|
|
|
Redeemable preference shares
|
The |
|
Loans and borrowings |
Non-current loans and borrowings
|
2024 |
2023 |
|
|
Bank borrowings |
|
|
|
Hire purchase contracts |
|
|
|
|
|
|
Current loans and borrowings
|
2024 |
2023 |
|
|
Bank borrowings |
|
|
|
Hire purchase contracts |
|
|
|
|
|
|
Bank borrowings
|
Bank borrowings are secured by First Legal Charge dated 5 April 2017 over Leasehold Property, known as Shenton House, Walworth Road, Walworth Business Park, Andover, Hampshire, SP10 5LH and a general letter of pledge dated 9 March 2017. |
Shenton Global Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Obligations under leases and hire purchase contracts |
Finance leases
Certain plant and machinery and motor vehicles are held under hire purchase contracts arrangements. Such assets are generally classified as finance leases as the rental period amounts to the estimated useful economic life of the assets concerned and often the company has the right to purchase the assets outright at the end of the minimum lease term by paying a nominal amount. Hire purchases liabilities are secured by the related assets held under the hire purchase contracts. The hire purchase contracts generally include fixed payments.
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Dividends |
Interim dividends paid
|
2024 |
2023 |
|||
|
Interim dividend of £585.63 (2023 - £983.00) per each Ordinary shares |
468,500 |
590,000 |
||
|
Interim dividend of £Nil per each Preference shares |
- |
- |
||
|
|
|
The dividends disclosed above of £468,500 (2023: £590,000) were paid to the directors of the company and their close family members.
Shenton Global Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
26 Reclassification of comparative amounts
In the prior year, £616,733 relating to a general overhaul provision was incorrectly recognised within accruals, leading to an understatement of provisions and an overstatement of accruals. Additionally, the provision in year movement was incorrectly offset against income resulting in an understatement of income and expenditure of £300,020. An adjustment has been made to the prior year figures to remove the accrual, recognise the provision, gross up income, recognise the provision movement expense and to adjust the cashflow movements accordingly.
Additionally, in the prior year, £307,631 relating to a standard overhaul and cylinder head provision was incorrectly recognised within accruals, leading to an understatement of provisions and an overstatement of accruals. The provision in year movement was incorrectly allocated against purchases rather than provision movement expense resulting in an expenditure classification error of £69,706. An adjustment has been made to the prior year figures to remove the accrual, recognise the provision, reallocate the expenditure and to adjust the cashflow movements accordingly.
|
Contingent liabilities |
The company is aware of a possible obligation from an event that occurred prior to the balance sheet date. At the date of signing these statements, the outcome was unresolved and the Directors consider that the result of an economic outflow for the Company to be remote. In the unlikely event that any costs should arise in relation to this event, the Directors expect them to be fully covered by the relevant insurance policy in place. Accordingly, no provision for either the cost or the potential insurance income has been recognised in these financial statements.
|
Related party transactions |
Key management compensation
|
2024 |
2023 |
|
|
Salaries and other short term employee benefits |
|
|
|
Transactions with directors |
|
Other transactions with directors |
At the balance sheet date, the company owed a total of £94,676 (2023: £46,906) to the directors. The loans were unsecured, interest-free and repayable on demand.
In addition, a shareholder maintained a loan of £28,882 to the company.
Loans to related parties
|
2023 |
Other related parties |
Total |
|
At start of period |
|
|
|
Repaid |
( |
( |
|
At end of period |
- |
- |
|
|
||
Shenton Global Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Financial instruments |
Categorisation of financial instruments
|
2024 |
2023 |
|
|
Financial assets that are debt instruments measured at amortised cost |
|
|
|
Financial liabilities measured at amortised cost |
|
|
Items of income, expense, gains or losses
|
2024 |
Income |
Expense |
Net gains |
Net losses |
|
Financial liabilities measured at amortised cost |
2,445 |
66,149 |
- |
- |
|
2023 |
Income |
Expense |
Net gains |
Net losses |
|
Financial liabilities measured at amortised cost |
1,665 |
90,727 |
- |
- |
The total interest income for financial assets not measured at fair value through profit or loss is £2,445 (2023 - £1,665). The total interest expense for financial liabilities not measured at fair value through profit or loss is £66,149 (2023 - £90,727).