| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Financial Statements |
| for the Year Ended 30 September 2024 |
| for |
| BIRCH UTILITY SERVICES LIMITED |
| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Financial Statements |
| for the Year Ended 30 September 2024 |
| for |
| BIRCH UTILITY SERVICES LIMITED |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Contents of the Financial Statements |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 3 |
| Report of the Independent Auditors | 5 |
| Income Statement | 9 |
| Other Comprehensive Income | 10 |
| Balance Sheet | 11 |
| Statement of Changes in Equity | 12 |
| Cash Flow Statement | 13 |
| Notes to the Cash Flow Statement | 14 |
| Notes to the Financial Statements | 16 |
| BIRCH UTILITY SERVICES LIMITED |
| Company Information |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants and Statutory Auditors |
| 3 Southernhay West |
| Exeter |
| Devon |
| EX1 1JG |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Strategic Report |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| The directors present their strategic report for the year ended 30 September 2024. |
| REVIEW OF BUSINESS |
| The company has maintained its footprint within the electricity distribution industry whilst investigating and developing alternate and additional revenue streams within the arboricultural, agricultural and forestry industry. Whilst the company has reviewed expansion through acquisition the primary focus has been organic development. |
| Turnover has increased from £11.5 million in 2023 to £14.8 million in 2024 through increased demand from existing contracts. Operating profit has increased marginally from £0.53 million in 2023 to £0.72 million in 2024, the result of increased pressure on operating margins and price inflation. |
| The directors are confident that actions taken during 2024 will underpin growth and increased margins in 2025. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The directors consider those risks and uncertainties that could affect the business: |
| Contracts held with customers are fixed term, contractual loss on expiry is a significant factor both to the company and throughout the industry. |
| The customer base in the utility arboricultural industry is very limited with geographically monopolies in play. The company is mitigating its exposure through continual developments in safety and delivery along with regular client engagement. The company is seeking income streams outside the very specific utility industry to principally maintain its expansion however as a mitigation to potential contract loss. |
| The company having a limited and highly specific customer base is exposed to financial risk through liquidity issues through late payment. Once again the company is mitigating the risks through the development of additional income streams. |
| Staff recruitment and retention is an industry wide issue. The company invests in staff at all levels offering career development, qualification enhancement and training opportunities specific to the industry and in respect of safety and environmental fields. |
| KEY PERFORMANCE INDICATORS |
| The company monitors its KPI indicators throughout its management structure and operational units. |
| Safety, Quality and Environmental Impact are core drivers behind contract retention and business development, the company's continual investment and development of resource and delivery methods are subject to enhanced supervision and shared with its customer base. All enhanced targets have been met. |
| The company measures customer satisfaction, staff numbers, development and retention together with revenue and operational margins at all management levels throughout the organisation. All operational targets have been met. |
| ON BEHALF OF THE BOARD: |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Report of the Directors |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| The directors present their report with the financial statements of the company for the year ended 30 September 2024. |
| PRINCIPAL ACTIVITY |
| The principal activity of the company in the year under review was that of arboricultural services. |
| DIVIDENDS |
| The total distribution of dividends for the year ended 30 September 2024 is £200,000 (2023: £200,000). |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors 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; |
| - | 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. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Report of the Directors |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| AUDITORS |
| The auditors, Gravita Audit Western Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Birch Utility Services Limited |
| Opinion |
| We have audited the financial statements of Birch Utility Services Limited (the 'company') for the year ended 30 September 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 30 September 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| Birch Utility Services Limited |
| 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 Report of the Directors. |
| 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 three, 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 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. |
| Report of the Independent Auditors to the Members of |
| Birch Utility Services Limited |
| Auditors' 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 a Report of the Auditors 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: |
| In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and |
| non-compliance with laws and regulations, our procedures included the following: |
| - | We obtained an understanding of the legal and regulatory frameworks applicable to the Company and the sector in which it operates. We determined that the following laws and regulations were most significant: The Companies Act 2006, UK GAAP, UK corporate tax law, Occupational Health and Safety regulations, and Environmental regulations. |
| - | We obtained an understanding of how the Company are complying with those legal and regulatory frameworks and made enquiries to the management of known or suspected instances of fraud and non-compliance with laws and regulations. We corroborated our enquiries through our review of board minutes, other relevant meeting minutes and review of correspondence with regulatory bodies. |
| - | We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the audit team included: |
| 1. | Identifying and assessing the controls management has in place to prevent and detect fraud; |
| 2. | Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; |
| 3. | Challenging assumptions and judgments made by management in its significant accounting estimates and judgments, in particular depreciation, accruals and prepayments and provisions. |
| 4. | Identifying and testing journal entries, in particular journal entries posted with unusual account combinations; and |
| 5. | Assessing the extent of compliance with the relevant laws and regulations. |
| 6. | Detailed review of the transactions in the directors' loan accounts with work undertaken to ensure these accounts are complete and accurate. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| Report of the Independent Auditors to the Members of |
| Birch Utility Services 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 a Report of the Auditors 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. |
| for and on behalf of |
| Chartered Accountants and Statutory Auditors |
| 3 Southernhay West |
| Exeter |
| Devon |
| EX1 1JG |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Income Statement |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| TURNOVER | 4 |
| Cost of sales | ( |
) | ( |
) |
| GROSS PROFIT |
| Administrative expenses | ( |
) | ( |
) |
| OPERATING PROFIT | 7 |
| Interest receivable and similar income |
| 716,938 | 529,130 |
| Interest payable and similar expenses | 8 | ( |
) | ( |
) |
| PROFIT BEFORE TAXATION |
| Tax on profit | 9 | ( |
) | ( |
) |
| PROFIT FOR THE FINANCIAL YEAR |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Other Comprehensive Income |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Balance Sheet |
| 30 SEPTEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| FIXED ASSETS |
| Tangible assets | 11 |
| CURRENT ASSETS |
| Stocks | 12 |
| Debtors | 13 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 14 | ( |
) | ( |
) |
| NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 20 |
| Retained earnings | 21 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Statement of Changes in Equity |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 October 2022 |
| Changes in equity |
| Profit for the year | - | 379,830 | 379,830 |
| Total comprehensive income | - |
| Dividends | - | ( |
) | ( |
) |
| Balance at 30 September 2023 |
| Changes in equity |
| Profit for the year | - | 265,291 | 265,291 |
| Total comprehensive income | - |
| Dividends | - | ( |
) | ( |
) |
| Balance at 30 September 2024 |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Cash Flow Statement |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Interest paid | ( |
) | ( |
) |
| Interest element of hire purchase payments paid |
( |
) |
( |
) |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Sale of tangible fixed assets |
| Interest received |
| Net cash from investing activities | ( |
) |
| Cash flows from financing activities |
| New loans in year |
| Loan repayments in year | ( |
) | ( |
) |
| Capital repayments in year | ( |
) | ( |
) |
| Equity dividends paid | ( |
) | ( |
) |
| Net cash from financing activities | ( |
) | ( |
) |
| Decrease in cash and cash equivalents | ( |
) | ( |
) |
| Cash and cash equivalents at beginning of year |
2 |
1,029,466 |
| Cash and cash equivalents at end of year | 2 | 242,021 | 492,936 |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Notes to the Cash Flow Statement |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2024 | 2023 |
| £ | £ |
| Profit before taxation | 549,362 | 385,955 |
| Depreciation charges |
| Profit on disposal of fixed assets | ( |
) | ( |
) |
| Increase in provisions | 86,271 | (166,451 | ) |
| Finance costs | 167,576 | 143,175 |
| Finance income | (654 | ) | - |
| 1,497,873 | 966,048 |
| Decrease/(increase) in stocks | ( |
) |
| Increase in trade and other debtors | ( |
) | ( |
) |
| Increase in trade and other creditors |
| Cash generated from operations |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 30 September 2024 |
| 30.9.24 | 1.10.23 |
| £ | £ |
| Cash and cash equivalents | 242,021 | 492,936 |
| Year ended 30 September 2023 |
| 30.9.23 | 1.10.22 |
| £ | £ |
| Cash and cash equivalents | 492,936 | 1,029,466 |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Notes to the Cash Flow Statement |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| Other |
| non-cash |
| At 1.10.23 | Cash flow | changes | At 30.9.24 |
| £ | £ | £ | £ |
| Net cash |
| Cash at bank | 492,936 | (250,915 | ) | 242,021 |
| 492,936 | ( |
) | 242,021 |
| Debt |
| Finance leases | (1,290,046 | ) | 1,205,006 | - | (1,539,084 | ) |
| Debts falling due |
| within 1 year | (106,691 | ) | (12,730 | ) | - | (119,421 | ) |
| Debts falling due |
| after 1 year | (217,205 | ) | 118,435 | - | (98,770 | ) |
| (1,613,942 | ) | 1,310,711 | - | (1,757,275 | ) |
| Total | (1,121,006 | ) | 1,059,796 | - | (1,515,254 | ) |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Notes to the Financial Statements |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 1. | COMPANY INFORMATION |
| Birch Utility Services Limited is a |
| The company's principal activities and nature of its operations are disclosed in the Directors' Report. |
| The principal place of business is: |
| Unit A |
| 1 Battle Road |
| Heathfield |
| Newton Abbot |
| Devon |
| TQ12 6RY |
| 2. | STATEMENT OF COMPLIANCE |
| 3. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| 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 on the historical cost convention. The principal accounting policies adopted are set out below. |
| Going concern |
| At 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. |
| Critical accounting judgements and key sources of estimation uncertainty |
| Provision for re-cuts |
| The company is contractually required to maintain a minimum safety clearance for a set period after initial work is performed. Consequently, revisits may be required and the accounts include a provision based on the estimated cost of performing these recuts to ensure the specified safety clearance is maintained. The carrying amount is £636,130 (2023: £833,930). |
| Depreciation |
| This is disclosed under accounting policy for tangible fixed assets. |
| Accruals and prepayments |
| These are based on information available at the time the financial statements are approved. |
| Turnover |
| Turnover represents the fair value of the consideration receivable for the provision of services in the ordinary course of the company's activities exclusive of value added tax. Revenue is recognised in accordance with the terms of the contract with the customer and relates to completion of spans cut. |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Notes to the Financial Statements - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Tangible fixed assets |
| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
| Short leasehold | - | 33% on cost |
| Plant and machinery | - | 14% on cost |
| Fixtures and fittings | - | 33% on cost and 20% on cost |
| Motor vehicles | - | 14% on cost |
| Stocks |
| Stocks are stated at the lower of cost and net realisable value. Stock held in vehicles is deemed to have little to no resale value and as such the directors have not included this stock on the balance sheet. |
| Cash and cash equivalents |
| Cash and cash equivalents 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. |
| 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 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, which include trade and other debtors, amounts due from group undertakings and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost. 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. |
| Basic financial liabilities, including trade and other creditors and amounts due to group undertakings 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. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Notes to the Financial Statements - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Hire purchase and leasing commitments |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| 4. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the company. |
| An analysis of turnover by class of business is given below: |
| 2024 | 2023 |
| £ | £ |
| 5. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Notes to the Financial Statements - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 5. | EMPLOYEES AND DIRECTORS - continued |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Production | 214 | 183 |
| Administration and support | 7 | 3 |
| 6. | DIRECTORS' REMUNERATION |
| 2024 | 2023 |
| £ | £ |
| Directors' remuneration | 22,466 | 21,549 |
| Directors' pension costs | 36,371 | 3,136 |
| 58,837 | 24,685 |
| 7. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2024 | 2023 |
| £ | £ |
| Hire of plant and machinery | 116,712 | 126,562 |
| Depreciation | 789,717 | 667,027 |
| Profit on disposal of fixed assets | (94,399 | ) | (63,658 | ) |
| 8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2024 | 2023 |
| £ | £ |
| Bank interest |
| Hire purchase |
| 9. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2024 | 2023 |
| £ | £ |
| Deferred tax |
| Tax on profit |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Notes to the Financial Statements - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 9. | TAXATION - continued |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
| Effects of: |
| Expenses not deductible for tax purposes |
| Capital allowances in excess of depreciation | ( |
) | ( |
) |
| Utilisation of tax losses | ( |
) |
| Other short term timing differences |
| Total tax charge | 284,071 | 6,125 |
| 10. | DIVIDENDS |
| 2024 | 2023 |
| £ | £ |
| Ordinary A Shares shares of £1 each |
| Interim |
| 11. | TANGIBLE FIXED ASSETS |
| Fixtures |
| Short | Plant and | and | Motor |
| leasehold | machinery | fittings | vehicles | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1 October 2023 |
| Additions |
| Disposals | ( |
) | ( |
) | ( |
) |
| At 30 September 2024 |
| DEPRECIATION |
| At 1 October 2023 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) |
| At 30 September 2024 |
| NET BOOK VALUE |
| At 30 September 2024 |
| At 30 September 2023 |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Notes to the Financial Statements - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 12. | STOCKS |
| 2024 | 2023 |
| £ | £ |
| Stocks |
| Work-in-progress |
| 13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade debtors |
| Other debtors |
| Directors' current accounts | 28,358 | - |
| Prepayments and accrued income |
| 14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Bank loans and overdrafts (see note 16) |
| Hire purchase contracts (see note 17) |
| Trade creditors |
| Social security and other taxes |
| VAT | 400,562 | 351,820 |
| Other creditors |
| Directors' current accounts | 10,473 | 23,325 |
| Accrued expenses |
| 15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Bank loans (see note 16) |
| Hire purchase contracts (see note 17) |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Notes to the Financial Statements - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 16. | LOANS |
| An analysis of the maturity of loans is given below: |
| 2024 | 2023 |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank loans |
| Amounts falling due between one and two years: |
| Bank loans - 1-2 years |
| Amounts falling due between two and five years: |
| Bank loans - 2-5 years |
| 17. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Hire purchase contracts |
| 2024 | 2023 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Non-cancellable | operating leases |
| 2024 | 2023 |
| £ | £ |
| Within one year |
| Between one and five years |
| In more than five years |
| Hire purchase liabilities are secured on the assets to which they relate. |
| 18. | SECURED DEBTS |
| There is a fixed and floating charge with Ultimate Finance Limited dated 12 February 2024 over all the property and undertakings of the company. |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Notes to the Financial Statements - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 19. | PROVISIONS FOR LIABILITIES |
| 2024 | 2023 |
| £ | £ |
| Deferred tax | 785,196 | 501,125 |
| Other provisions | 636,130 | 833,930 |
| Deferred |
| tax |
| £ |
| Balance at 1 October 2023 |
| Provided during year |
| Balance at 30 September 2024 |
| Other provisions relate to re-cuts required to fulfill contracts. |
| 20. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary A Shares | £1 | 50 | 50 |
| Ordinary B Shares | £1 | 50 | 50 |
| 100 | 100 |
| Ordinary A shares of £1 each with full voting rights and rights to receive dividends. |
| Ordinary B shares of £1 each with rights to receive dividends. |
| 21. | RESERVES |
| Retained |
| earnings |
| £ |
| At 1 October 2023 |
| Profit for the year |
| Dividends | ( |
) |
| At 30 September 2024 |
| BIRCH UTILITY SERVICES LIMITED (REGISTERED NUMBER: 06996561) |
| Notes to the Financial Statements - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to a director subsisted during the years ended 30 September 2024 and 30 September 2023: |
| 2024 | 2023 |
| £ | £ |
| Balance outstanding at start of year | ( |
) | ( |
) |
| Amounts advanced |
| Amounts repaid | ( |
) | ( |
) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | ( |
) |
| Interest has been charged on this loan at the beneficial loan rate set by HM Revenue and Customs. |
| 23. | RELATED PARTY DISCLOSURES |
| During the period, a director has a loan account with the company. At the balance sheet date, the amount due to the director was £10,471 (2023: £17,509). |
| During the year, key management personnel received compensation of £37,387. |
| 24. | ULTIMATE CONTROLLING PARTY |
| The ultimate controlling parties are Kevin Ricketts and Jeff Birch. |