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Registered number: 02585807


 

SECOM PLC
 
ANNUAL REPORT
 
FOR THE YEAR ENDED 31 DECEMBER 2024

 
SECOM PLC
 

COMPANY INFORMATION


Directors
Mr S Awano 
Mr A Blake 
Mr P Weaver 
Mr N Fanthome-Hodgson 
Mr S Sato 




Company secretary
Mr N Fanthome-Hodgson



Registered number
02585807



Registered office
Secom House
52 Godstone Road

Kenley

Surrey

CR8 5JF




Independent auditor
Cooper Parry Group Limited

New Derwent House

69-73 Theobalds Road

London

WC1X 8TA




Bankers
Nat West Bank
1 High Street

Croydon

CR9 1PD




Solicitors
Morr & Co LLP
Prospero

73 London Road

Redhill

RH1 1LQ





 
SECOM PLC
 

CONTENTS



Page
Group Strategic Report
 
1 - 8
Directors' Report
 
9 - 10
Directors' Responsibilities Statement
 
11
Independent Auditor's Report
 
12 - 15
Consolidated Statement of Comprehensive Income
 
16
Consolidated Balance Sheet
 
17
Company Balance Sheet
 
18
Consolidated Statement of Changes in Equity
 
19
Company Statement of Changes in Equity
 
20
Consolidated Statement of Cash Flows
 
21
Consolidated analysis of net debt
 
22
Notes to the financial statements
 
23 - 44


 
SECOM PLC
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The Directors present their strategic report for Secom plc (“the Company”, or “the parent company”) and subsidiaries, together referred to as “the Group”, for the year ended 31 December 2024. 
The Group and parent company continue to apply FRS 102 in the preparation of these financial statements. The Company's main key performance indicator is the decrease of our monitored customer base number. This has decreased by 4.2% over last year (2023: decrease 2.3%) as new monitored contract wins were outstripped by attrition. The Company is still feeling the effects of the loss of a major financial services client in a competitive tender early in 2023 as well as renewing another substantial contract for a further five years on a lower margin. The general business environment remained challenging throughout 2024 with high energy prices and general inflation plus a very large rise in minimum wage legislation fuelling wage inflation, plus the continued effect Brexit was having on trade with the EU and made worse by interest rates much higher than the country has become used to. Other KPIs are turnover, profit and cash position which are shown later in this report. 
The electronic fire and security market remains as competitive as ever, which is clearly an ongoing risk. This risk is managed by our efforts to maintain strong relationships with our customers through the quality of our service and not just compete on price.
The Company continues to review and invest in new technology through our development centre in Hull in order to offer excellent security solutions to our customers. This investment is aimed at keeping Secom at the forefront of the security market through products such as Secom Smart Security for the domestic and SME market, Secom Virtual Guard and Secom React. Our future prospects in this area are encouraging as we look to bring more new offerings to market and our enhanced services continue to be well received.
The Group is a leading provider of installation, maintenance and monitoring within the electronic fire and security industry across the UK and Republic of Ireland. The Group concentrates on providing a quality service rather than just being another conventional alarm installer. We are well placed to take advantage of any increase in demand that the government is trying to stimulate with its growth agenda based on our excellent reputation for improving service quality through the Quality Service Provider programme and will also look for targeted acquisitions, where they strengthen our geographical coverage or product base.

Future developments
 
CCTV and associated technologies continue to play an ever-increasing role in our product offerings. The further development of the Secom Smart Security App has and will bring additional functionality for the benefit of our customers. This App will be further developed in the coming years with increased integration with other household appliances. It is likely that artificial intelligence will continue to play an ever increasing part in the provision of monitored fire and security systems in the coming years reducing the possibility of human error and the need for human intervention which saves the customer money.
The Group sees further growing demand for electronic fire and security systems in the future as we strive to keep people as safe as possible.
The Group continues to strengthen and grow its offering for fire alarms and fire stopping systems. This is an important part of our product portfolio and has been well received by the market trying to fulfil its health and safety obligations.
This year has been particularly difficult and the Group will refocus on revenue growth by increasing prices, organic growth and also by acquisition. The recovery plan is set to generate a return to profit over the next two years by streamlining processes utilising available technologies such as AI, improving operational efficiency, targeted acquisitions and concentrating on clients that need and value good fire and security systems and by developing its products in new markets.

Page 1

 
SECOM PLC
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Risks and uncertainties
 
One of the main risks the Group faces is changing circumstances for our materially important customers, such as large National Accounts, and major financial institutions. High levels of competition also pose a price risk, but the Group mitigates that by trading on its high quality rather than competing solely on price. Brexit continues to pose risks to the economy as red tape and customs checks have made trade with the EU more difficult and led to a reduction of this trade, inflationary pressure and some supply issues. This may be exacerbated in the future by the trade war that USA seems bent on pursuing. Inflation has moderated towards the end of 2024 and going into 2025 but the National Insurance changes in April 2025 threaten to stoke inflation once more, albeit probably not to the heights seen in 2023. The labour market remains difficult with a shortage of skilled labour and wage inflation well above CPI. Business customers will be seeking ways to cope with the increased National Insurance costs and this may affect the amounts they are willing to spend on security. We continue to work with our UK distributors to ensure a consistent and competitive supply chain but we are seeing price rises on the input side. The banking sector continues to adapt and change to the digital world and we continue to see branch closures but they are always looking to maintain good security on their remaining estate. The advent of AI and other technological advances create more business opportunities for us from customers who seek a more efficient and effective security service.
The cost of living crisis continues to ease with wage rises above inflation all the way through 2024 and into 2025. However the shortage of skilled workers in the UK and the 37% increase in minimum wage rates in the last 4 years is continuing to push up wages and make recruitment more difficult. This poses a risk to results if we are unable to pass on the rise in cost. Improvements in efficiencies are continually sought to counter this challenge. The Group’s turnover per employee has decreased from £92.9k to £83.4k in 2024 however this was predominantly caused by a significant increase in the number of engineers, relying less on subcontract.
Whilst the risks from Covid-19 have abated, there is still the general risk of a similar pathogen and if this were to happen and there was no Job Retention Scheme at the time of very tight restrictions, then the Group would need to take other measures to reduce labour cost if any lockdown is prolonged. Such issues would also further increase the risk of failures on the High Street or in the hospitality sector, so we could see increased bad debts. There are also potential risks to the supply chain which may see delays or interruptions during periods of lockdown although these have not been prevalent during lockdowns to date. This risk is still mitigated by preparations that were made for Brexit, where suppliers bolstered their UK warehoused stock and indeed Secom holds large quantities of stock itself. As installation work would reduce during another period of strict lockdown, we do not see supply of equipment being a major issue.
The Group manages its financial risks by monitoring debtors’ levels, good credit control procedures and tight management of cash which means the cash position is very strong enabling the company to deal with any credit or liquidity issues arising from the above issues. The Group has no interest bearing debt but does place deposits in fixed term accounts to improve interest income earned on cash balances. The return on these deposits has reduced slightly as interest rates have started to fall.

Business model

The principal activity of the Group is the installation, maintenance and monitoring of fire and security systems and devices.

Page 2

 
SECOM PLC
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Financial review
 
The Group revenue for the year was £49.3m (2023: £53.6m). 
The Group loss for the year before taxation was £2.70m (2023: £0.51m). 
The directors do not recommend the payment of a dividend (2023: £nil) and the result has been transferred to reserves.
During 2024 total Group revenue decreased by 8% to £49.3m reflecting the difficult trading conditions. Recurring revenue decreased by 2.0% predominantly because of the reduction in maintenance and monitoring income from the loss of the major financial services client in 2023. This contract also affected 2024 installation revenue which decreased by 10.7% whereas in 2023 it had minimal effect. Chargeable repairs were boosted by a large rollout for a key client and so they rose by 21%. Our contract to provide the interactive CCTV for a major infrastructure project continued to support the Group’s service turnover and this will continue for the next couple of years but the install phase finished in 2023. Physical security sales fell by 30.5% to £0.92m. 
The Group saw a decline in margins from 23.7% to 22.6% as increases in equipment and labour costs, and the general rise in wage levels, had an effect on cost of sales at a time when price rises were hard to achieve. Selling costs increased to 11% of turnover due to the reduction in sales and cost pressures pushed overheads up to 18% from 17% of turnover. The net effect on the operating result was a significant worsening from an operating loss of £1.2m to £3.5m but this was improved by £0.83m of interest receivable on the company’s cash deposits to a loss before tax of £2.7m.
During 2024 the Group’s continued efforts to improve efficiency were hampered with the need to deal with the impending end of the copper telephone network. This involves work at many of our clients to ensure their alarm systems will continue to signal after this PSTN network is switched off. The Group continues to try to ensure more systems are connected remotely to facilitate remote fixes where possible.
Despite the disappointing result, the Group’s balance sheet position remains strong with net current assets of £20.9m (2023: £24.9m) and £8.3m (2023: £7.4m) of tangible fixed assets.
Cash flow from operating activities in the year was clearly affected by the result following the large reduction in service revenue that fed through from 2023 client losses and there was significant investment in fixed assets, however proceeds from sales of a property and vehicles plus interest on deposits reduced the effect on cash reserves. Cash reserves are still strong and were £19.6m at the year end (2023: £21.2m).

Going concern
 
The directors’ have prepared both a base case and a downside cash flow forecast until June 2026 and have concluded that it is appropriate to prepare these financial statements on a going concern basis.  The details of these forecasts are provided in note 2.2 of these accounts.

Page 3

 
SECOM PLC
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Section 172 statement
 
The Group and parent company have a duty to run the company for the long term benefit of its shareholders. Therefore, long term sustainable profitability is at the heart of what we do. By concentrating on quality and not joining the race to the bottom in terms of price, we aim to develop long term relationships with our clients rather than seek short term gain. Our culture is one of a quality service provider working in partnership with our stakeholders to deliver a quality product at a fair price. We engage with all our stakeholders (customers, suppliers, shareholder and employees) in a number of ways including intranet, social media, press releases, e-mail, meetings and telephone.
Customers
The Group seeks to build relationships with its customers right from the first point of contact. We discuss their needs and seek to find innovative solutions to support their business security needs. We then aim to provide an excellent service of maintenance and alarm signal/CCTV monitoring to ensure customer satisfaction and a long term relationship.
Suppliers
The Group engages with many suppliers to review and test their equipment in order to adopt a range of products which offer the best value service for our suppliers. We engage with our suppliers to ensure our engineers receive the best training on the equipment that we sell, so that the customer gets an excellent service.
Shareholder
The shareholder, Secom Co. Limited is in constant contact with the Company engaging on the plans for the year and sharing information and best practice from their experience in Japan.
Employees
Our employees are fundamental to the success of the business and as such their health and safety is at the centre of what we do. Risk assessments are carried out to ensure safe working and we provide them all with comprehensive health insurance to help them recover quickly from illness. The Group is committed to a policy of equal opportunities for all employees. The Group's policy is to treat disabled people on the same basis as all other employees in relation to employment, career development, promotion and training. Employee involvement in meeting the Group's aims is encouraged at all levels through communication, consultation and the employee suggestion scheme.
The management of risks is referred to in an earlier section of this report.
Every year the Company reviews its policies to ensure that these are consistent with the long term business aims including its environmental policy. The Company looks for and implements ways of reducing its impact on the environment and holds the prestigious ISO14001 accreditation. In this way, the Company seeks to build its reputation within local communities and country as a whole.

SECR Reporting
 
As the Company is classified as a large unquoted company under the definitions set in Section 465 and 466, Chapter 15 of Companies Act 2006, it needs to comply with the government legislation implemented by The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (“the 2018 Regulations”) on Streamlined Energy and Carbon Reporting (SECR).
To fulfil this, we have measured our UK energy and greenhouse gas emissions as classified within Scope 1, Scope 2 and mandatory element of Scope 3 of the Streamlined Energy and Carbon Reporting (SECR) regulations, which are presented in tables 1, 2 and 3 as these are material to our organisation’s activities.

Page 4

 
SECOM PLC
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Organisational and operational boundaries of the company

The Company’s structural and operational boundaries are the same. During reporting period the Company was operating from the 13 sites within the UK. The company registered head office is located at:
 
Secom House, 52 Godstone Road, Kenley, Surrey, CR8 5JF
 
Secom plc, as the parent company, is also reporting on behalf of its UK subsidiary Scan Alarms & Security Systems (UK) Limited. 

Environmental Performance

The Group decided to follow and adapt, for SECR reporting, a widely recognised Greenhouse Gas Reporting Protocol – Corporate Standard methodology. As at 31 December 2024 the company’s energy usage and associated carbon emissions for the SECR Year 5, 1 January to 31 December 2024 were as follows:

ole2311.png
Table 1: Total energy consumption and associated greenhouse gas emissions from Scope 1, 2 and Scope 3 for SECR Year 4 reporting period.
*Although we purchase 36% of our electricity through green (zero-emissions) contracts (equivalent to 191k kWh), SECR requirements prohibit factoring in grid-purchased green electricity for reporting. Consequently, all GHG emissions must be calculated using the UK’s official GHG conversion factors.

Page 5

 
SECOM PLC
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Intensity ratio

Intensity ratios compare emissions data with an appropriate business metric or financial indicator. This allows a comparison of energy efficiency performance over time and with other similar types of organisations. The Group has chosen to compare overall energy consumption and associated GHG emissions with both energy consumption and carbon emissions against the number of Full Time Employees (FTE). 

ole6f9a.png
Table 2: Intensity Ratio - Energy consumption and associated GHG emissions per number of Full Time Employers (FTE)

Energy intensity ratios are calculated and presented as advised by the Department for Energy Security and Net Zero (DESNZ).

Page 6

 
SECOM PLC
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Energy Efficiency Actions

SECR is designed to reduce complexity and streamline the carbon and energy reporting landscape.
Secom plc is actively looking to reduce our energy consumption and associated greenhouse gas emissions. The Company is proactively looking after the environment by striving to become more energy conscious across the Group by reducing carbon emissions and being committed to our energy efficiency actions. Secom Group worldwide has set goals of reducing CO2 emissions by 45% from the base year by 2030 and committed to net zero for scope 1 and 2 by 2045 and scope 3 by 2050.
Our primary focus was given on the following areas: 
 
Improving Lighting Efficiency - We replaced existing fittings with LED lights and installed motion sensors in the main stairwell at Kenley. This will reduce energy consumption and ensure the lights only operate when needed.
Vehicle Transition - At the start of 2024, our fleet included three electric cars, 30 hybrid cars, and seven hybrid vans; by year-end, hybrids had increased to 46 cars and 25 vans. Although no additional vehicles were on order as of 31 December, we anticipate more electric or hybrid replacements in 2025 and have added a fully electric car to our approved fleet for senior managers.
Reduction of Buildings - We sold our Manchester office in February 2024, reducing our footprint by 1,328 square feet. In H2 2024, we consolidated Beech Lodge and Ash Lodge, preparing Beech Lodge for sale or rent and cutting another 5,000 square feet, and we plan to sell our Docklands property in 2025 to shed a further 714 square feet.
Remote Engineer Jobs - In 2024, we completed 25,629 remote jobs—a 9% increase from 2023—eliminating 2,044 on-site visits. At an average of 30 kg of CO2 per visit, this saved 61 tonnes of CO2 in 2024 and contributes to an annual saving of around 769 tonnes.
Electricity Contracts - We continue to use a zero-carbon plan from British Gas at our Kenley Head Office, which has the highest electricity usage. We have also signed three-year contracts with EDF for several sites, including Rochester, Docklands, Ash Lodge, Beech Lodge, Leeds, and Hull, reducing CO2 output by 53% compared to the UK average due to EDF’s reliance on nuclear power. Our Birmingham office switched to British Gas’s zero-carbon tariff in July 2024, and from 1 December 2024, our Bristol site also adopted British Gas’s zero-carbon plan, replacing less sustainable suppliers.
Solar Power - We are exploring the installation of solar panels at our Leeds office, with initial projections suggesting a six-year payback on an investment of approximately £63,000. This figure includes any legal costs required to secure consent from the freeholder.

Page 7

 
SECOM PLC
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Methodology

SECOM Plc, as the parent company of Scan Alarms Limited, is also reporting on behalf of that company’s UK trading subsidiary, Scan Alarms & Security Systems (UK) Limited (SCAN) and its trading subsidiary Bluestream Technology Ltd. 
SECOM decided to follow and adapt, for SECR reporting, a widely recognised GHG Reporting Protocol – Corporate Standard methodology.
The methodology used for determining energy and carbon emissions comes from a number of sources of GHG emissions: 
 
Natural gas used for building space heating (Scope 1)
Electricity used for lighting, heating, ventilation and air conditioning (HVAC), and the operation of office equipment (Scope 2)
The use of vehicles for business travel – company vehicles and grey fleet only (Scope 1 & 3)

The electricity and gas consumption is based on utility invoices for all of our units, where we are directly responsible for the energy use. In all cases, energy use was corrected to a full year’s data as necessary.
Scope 1 and Scope 3 transport energy and associated GHG emissions have been calculated based on the accurate fuel consumption data. The quantities of used petrol and diesel have been obtained from the online fuel card management system.
GHG emissions have been calculated using the UK Government approved and published conversion factors for company reporting, 2024 (see table 2, section 2.3). 


ole1c99.png
Table 3: UK Government GHG Conversion Factors for Company Reporting: 2023 fuel conversion factors used in the report


This report was approved by the board and signed on its behalf.



Mr S Awano
Director
Date: 1 April 2025

Page 8

 
SECOM PLC
 

 
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.

Results and dividends

The loss for the year, after taxation, amounted to £2,537 thousand (2023:loss £388 thousand).

Directors

The Directors who served during the year were:

Mr S Awano 
Mr A Blake 
Mr P Weaver 
Mr N Fanthome-Hodgson 
Mr S Sato 

Registered office

Secom House
52 Godstone Road
Kenley, Surrey CR8 5JF

Company registration number

02585807

Political Donations

The company made no political donations during the year (2023:£nil).

Greenhouse has emissions

The company has maintained its ISO 14001 accreditation and as part of this is committed to reducing its carbon footprint and greenhouse gas emissions. In 2024, the company continued its commitment to more efficient, environmentally friendly operations by replacing older motor vehicles with electric and hybrid models. The company keeps the progress of electric vehicles under review and at the end of 2024 had three electric vehicles and seventy one hybrids (2023: three electiric and thirty seven hybrids) and our standard replacement of any car will now be a hybrid or electric. We have a small hybrid van, but larger vans are still diesel due to cost and the mileage we need to cover.

Financial instruments

The company did not hold or engage in any financial instruments in the year or the previous year.

Matters covered in the Group Strategic Report

The Strategic report includes the following information that is otherwise required to be contained in the Directors' Report
a business review;
engagement with suppliers, customers and others in a business relationship with the company;
an indication of likely future developments in the business;
the amount (if any) that the directors recommend should be paid by way of a dividend;
policies in respect of employment of disabled persons; and
employee involvement.
SECR requirements from The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.
Financial risks

Page 9

 
SECOM PLC
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Corporate governance

The company has a compliance department which along with the finance department monitors developments in corporate governance regulation and reports to the board monthly.

Disclosure of information to auditor

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Other information

There have been no significant events which have occurred since the end of the financial year.

Auditor

The auditor, Cooper Parry Group Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Mr S Awano
Director

Date: 1 April 2025

Page 10

 
SECOM PLC
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the Directors are required to:

select suitable accounting policies for the Group's financial statements 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;

assess the Group and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
use the going concern basis of accounting unless they either intend to liquidate the Group or the parent company or to cease operations, or have no realistic alternative but to do so.  

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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 11

 
SECOM PLC
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SECOM PLC
 

Opinion


We have audited the financial statements of Secom Plc (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 31 December 2024 and of the Group's loss 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's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Page 12

 
SECOM PLC
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SECOM PLC (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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 set out on page 11, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 13

 
SECOM PLC
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SECOM PLC (CONTINUED)


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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We discussed with the directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance.
During the audit we focused on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.
Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests include agreeing the financial statement disclosures to underlying supporting documentation.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. In assessing the potential risks of material misstatement we obtained an understanding of; the entities operations, including the nature of its revenue sources and services and of its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement. We did not identify any matters relating to non-compliance with laws and regulations relating to fraud.


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 Auditor's Report.


Page 14

 
SECOM PLC
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SECOM PLC (CONTINUED)


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 2006Our 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.





Andrew Jepson FCCA (Senior Statutory Auditor)
  
for and on behalf of
Cooper Parry Group Limited
 
Statutory Auditor
  
New Derwent House
69-73 Theobalds Road
London
WC1X 8TA

1 April 2025
Page 15

 
SECOM PLC
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£000
£000

  

Turnover
  
49,308
53,610

Cost of sales
  
(38,172)
(40,902)

Gross profit
  
11,136
12,708

Administrative expenses
  
(14,665)
(13,919)

Operating loss
 6 
(3,529)
(1,211)

Interest receivable and similar income
 5 
830
702

Interest payable and similar expenses
 4 
(2)
(1)

Loss before taxation
  
(2,701)
(510)

Tax on loss
 7 
164
122

Loss for the financial year
  
(2,537)
(388)

  

Other comprehensive loss
  
(10)
-

Other comprehensive loss for the year
  
(10)
-

Total comprehensive loss for the year
  
(2,547)
(388)

Loss for the year attributable to:
  

Owners of the parent Company
  
(2,537)
(388)

  
(2,537)
(388)

Total comprehensive loss for the year attributable to:
  

Owners of the parent Company
  
(2,547)
(388)

  
(2,547)
(388)

The notes on pages 23 to 44 form part of these financial statements.

Page 16

 
SECOM PLC
REGISTERED NUMBER: 02585807

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£000
£000

Fixed assets
  

Intangible assets
 11 
719
373

Tangible assets
 12 
8,319
7,393

  
9,038
7,766

Current assets
  

Stocks
 14 
5,777
5,542

Debtors: amounts falling due within one year
 15 
10,121
10,160

Cash at bank and in hand
 16 
19,551
21,192

  
35,449
36,894

Creditors: amounts falling due within one year
 17 
(14,580)
(12,005)

Net current assets
  
 
 
20,869
 
 
24,889

Total assets less current liabilities
  
29,907
32,655

Provisions for liabilities
  

Deferred taxation
 19 
(42)
(243)

  
 
 
(42)
 
 
(243)

Net assets excluding pension asset
  
29,865
32,412

Net assets
  
29,865
32,412


Capital and reserves
  

Called up share capital 
 20 
44,126
44,126

Foreign exchange reserve
 21 
(10)
-

Profit and loss account
 21 
(14,251)
(11,714)

Equity attributable to owners of the parent Company
  
29,865
32,412

  
29,865
32,412


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Mr S Awano
Director

Date: 1 April 2025

The notes on pages 23 to 44 form part of these financial statements.

Page 17

 
SECOM PLC
REGISTERED NUMBER: 02585807

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£000
£000

Fixed assets
  

Tangible assets
 12 
7,989
7,132

Investments
 13 
1,716
1,716

  
9,705
8,848

Current assets
  

Stocks
 14 
5,297
4,973

Debtors: amounts falling due within one year
 15 
8,853
9,071

Cash at bank and in hand
 16 
17,233
19,069

  
31,383
33,113

Creditors: amounts falling due within one year
 17 
(13,293)
(11,002)

Net current assets
  
 
 
18,090
 
 
22,111

Total assets less current liabilities
  
27,795
30,959

  

Creditors: amounts falling due after more than one year
 18 
(75)
(75)

Provisions for liabilities
  

Deferred taxation
 19 
-
(202)

Net assets
  
 
 
27,720
 
 
30,682


Capital and reserves
  

Called up share capital 
 20 
44,126
44,126

Profit and loss account brought forward
  
(13,444)
(12,629)

Loss for the year
  
(2,962)
(815)

Profit and loss account carried forward
 21 
(16,406)
(13,444)

  
27,720
30,682


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


Mr S Awano
Director

Date: 1 April 2025

The notes on pages 23 to 44 form part of these financial statements.

Page 18

 
SECOM PLC
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Foreign exchange reserve
Profit and loss account
Total equity

£000
£000
£000
£000


At 1 January 2023
44,126
-
(11,326)
32,800


Comprehensive income for the year

Loss for the year
-
-
(388)
(388)



At 1 January 2024
44,126
-
(11,714)
32,412


Comprehensive income for the year

Loss for the year
-
-
(2,537)
(2,537)

Other comprehensive income/(loss)
-
(10)
-
(10)


At 31 December 2024
44,126
(10)
(14,251)
29,865


The notes on pages 23 to 44 form part of these financial statements.

Page 19

 
SECOM PLC
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£000
£000
£000


At 1 January 2023
44,126
(12,629)
31,497


Comprehensive income for the year

Loss for the year
-
(815)
(815)



At 1 January 2024
44,126
(13,444)
30,682


Comprehensive income for the year

Loss for the year
-
(2,962)
(2,962)


At 31 December 2024
44,126
(16,406)
27,720


The notes on pages 23 to 44 form part of these financial statements.

Page 20

 
SECOM PLC
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£000
£000

Cash flows from operating activities

Loss for the financial year
(2,537)
(388)

Adjustments for:

Amortisation of intangible assets
139
115

Depreciation of tangible assets
1,597
1,368

Loss on disposal of tangible assets
(272)
(343)

Interest received
(830)
(702)

Taxation charge
(164)
(122)

(Increase)/decrease in stocks
(235)
4,219

Decrease in debtors
38
795

Increase/(decrease) in creditors
2,557
(6,173)

Foreign exchange revaluation
(10)
-

Corporation tax paid
(55)
(146)

Net cash generated from operating activities

228
(1,377)


Cash flows from investing activities

Purchase of intangible fixed assets
(485)
-

Acqusition of tangible fixed assets
(2,622)
(1,860)

Sale of tangible fixed assets
389
444

Interest received
849
413

Net cash from investing activities

(1,869)
(1,003)


Net decrease in cash and cash equivalents
(1,641)
(2,380)

Cash and cash equivalents at beginning of year
21,192
23,572

Cash and cash equivalents at the end of year
19,551
21,192


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
19,551
21,192

19,551
21,192


The notes on pages 23 to 44 form part of these financial statements.

Page 21

 
SECOM PLC
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024





At 1 January 2024
Cash flows
New finance leases
At 31 December 2024
£000

£000

£000

£000

Cash at bank and in hand

21,192

(1,641)

-

19,551

Debt due within 1 year

(86)

(6)

-

(92)

Finance leases

-

3

(21)

(18)


21,106
(1,644)
(21)
19,441

The notes on pages 23 to 44 form part of these financial statements.

Page 22

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Secom Plc is a public company limited by shares and incorporated and domiciled in the UK. The registered number is 02585807, and the registered address is: Secom House, 52 Godstone Road, Kenley, Surrey CR8 5JF.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The presentation currency of these financial statements is sterling. All amounts in the financial statements have been rounded to the nearest £1,000.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 26).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.
 
The Group had a cash balance of £20.0m at 31 December 2024 and has no external debt facilities. The Group operates autonomously from its ultimate parent company Secom Co. Limited, and has full control over its own cash management.
The directors have performed a going concern assessment covering a period for at least twelve months from the date of approval of these financial statements in order to assess going concern. In doing so, they have considered cashflow forecasts prepared for the period up to 30 June 2026.
The directors have prepared a base case forecast allowing for contract wins and losses and committed changes to the cost base.  Forecasts for the remainder of FY25 show service revenue consistent with 2024 with additions in respect of new installations and a small improvement in installation revenue on 2024. In the base case margins are slightly improved by modest price rises which improves the bottom line result. There are still significant uncertainties in the economy from the Ukraine war, Brexit and the situation in Gaza, therefore the directors have prepared a severe but plausible downside scenario which models a reduction in installation revenue and related reduction in service revenue, and an increase in salary costs above those budgeted in the base case forecast.
Under both the base case and the severe but plausible downside scenario, the forecasts indicate that the Group and Company has sufficient liquidity to continue to settle its liabilities as they fall due for a period of at least twelve months from the date of approval of these financial statements. 
Consequently, the directors believe it is appropriate to continue to prepare these financial statements on a going concern basis.

Page 23

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.3

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 24

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

  
2.5

Basic Financial Instruments

Trade and other debtors / creditors
Trade and other debtors are recognised initially at transaction price plus attributable transaction costs. Trade and other creditors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument.
Interest-bearing borrowings classified as basic financial instruments
Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the Company’s cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement.

 
2.6

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate items of tangible fixed assets, for example land is treated separately from buildings.
Security systems which are rented to customers, but remain the property of the Company, are included within fixed assets at an amount equal to the recoverable material costs of the rented equipment installed, less accumulated depreciation. Additional provision is made where the carrying value of the security systems exceeds the net present value of the future cash flows which are expected to be generated by them.
The company assesses at each reporting date whether tangible fixed assets are impaired.

Depreciation is charged to the profit and loss account over the estimated useful lives of each part of an item of tangible fixed assets. Leased assets are depreciated over the shorter of the lease term and their useful lives. Land is not depreciated. 

Depreciation is provided on the following basis:

Freehold buildings/Long leasehold property
-
50 years
Short leasehold property
-
Length of lease
Security systems
-
7 years
Fixtures, fittings, computers & office equipment
-
4 to 7 years
Motor vehicles
-
4 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 25

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

  
2.7

Intangible assets and goodwill

Goodwill
Goodwill is stated at cost less any accumulated amortisation and accumulated impairment losses. Goodwill is allocated to cash-generating units or group of cash-generating units that are expected to benefit from the synergies of the business combination from which it arose. Positive goodwill is amortised to nil by equal instalments over its estimated useful life. Goodwill is amortised on a straight line basis over its useful life. Goodwill has no residual value. The finite useful life of goodwill is estimated to be 10 years.
Monitored contracts
Payments to acquire portfolios of monitored contracts are capitalised into Intangible Fixed Assets and amortised over their useful economic life of 7 years.
The company reviews the amortisation period and method when events and circumstances indicate that the useful life may have changed since the last reporting date.
Goodwill and other intangible assets are tested for impairment in accordance with section 27 Impairment of assets when there is an indication that goodwill or other intangible asset may be impaired.

 
2.8

Turnover

Turnover represents the amounts (excluding value added tax) derived from the provision of goods and services. Turnover from installations of security systems is recognised on completion of the installation. Turnover from rental and maintenance services is recognised equally over the period that the service is provided. Turnover from sale of equipment is recognised once all the significant risks and rewards of ownership have been transferred to the customer in accordance with FRS102. Deferred income represents amounts invoiced to customers for goods and services not yet supplied. Accrued income represents amounts recognised as turnover to be invoiced in future periods.

  
2.9

Stocks

Stocks and Work in Progress is stated at the lower of cost (including expenditure incurred in acquiring the stocks and other costs in bringing them to their existing location and condition) and net realisable value. Work in progress includes equipment and labour costs that have been used on a job that is still to be completed/invoiced. Stock is valued on a FIFO basis.

Page 26

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income. 

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax is provided in respect of the additional tax that will be paid or avoided on differences between the amount at which an asset (other than goodwill) or liability is recognised in a business combination and the corresponding amount that can be deducted or assessed for tax.  Goodwill is adjusted by the amount of such deferred tax.
Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax balances are not discounted.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Page 27

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.11

Leased assets

Leases in which the entity assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. All other leases are classified as operating leases. Leased assets acquired by way of finance lease are stated on initial recognition at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease, including any incremental costs directly attributable to negotiating and arranging the lease. At initial recognition a finance lease liability is recognised equal to the fair value of the leased asset or, if lower, the present value of minimum lease payments. The present value of the minimum lease payments is calculated using the interest rate implicit in the lease.

Minimum lease payments for a finance lease are apportioned between the finance charge and the reduction of the outstanding liability using the rate implicit in the lease. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. 

Payments made under operating leases are recognised in the profit and loss account on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation; in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in profit and loss over the term of the lease as an integral part of the total lease expense.

  
2.12

Employee Benefits

Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which the Company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees.

 
2.13

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.14

Investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.15

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.16

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 28

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

  
2.17

Impairment excluding stocks and deferred assets

Financial assets (including trade and other debtors)
The carrying amounts of the Company's non-financial assets, other than stocks and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. 
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. For financial instruments measured at cost less impairment an impairment is calculated as the difference between its carrying amount and the best estimate of the amount that the Company would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount. Impairment losses are recognised in profit or loss. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.
Non-financial assets
The carrying amounts of the entity’s non-financial assets, other than stocks and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. 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 the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”). The goodwill acquired in a business combination, for the purpose of impairment testing is allocated to cash-generating units, or (“CGU”) that are expected to benefit from the synergies of the combination. For the purpose of goodwill impairment testing, if goodwill cannot be allocated to individual CGUs or groups of CGUs on a non-arbitrary basis, the impairment of goodwill is determined using the recoverable amount of the acquired entity in its entirety, or if it has been integrated then the entire group of entities into which it has been integrated. 
An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis.

Page 29

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


Turnover

All of the Group's turnover and profit on ordinary activities before taxation is attributable to two main revenue streams - the installation of fire and security systems, and the annual service charges.
All of the Group's turnover is derived from external customers within the United Kingdom and Republic of Ireland.


4.


Interest payable

2024
2023
£000
£000


Interest payable
2
1

2
1


5.


Interest receivable and similar income

2024
2023
£000
£000


Bank interest receivable
830
702

830
702


6.


Operating loss

The operating loss is stated after charging:

2024
2023
£000
£000

Depreciation - owned assets
1,597
1,368

Exchange differences
41
30

Other operating lease rentals
285
284

Amortisation of goodwill
139
115

(Profit) on sale of fixed assets
(272)
(343)

Page 30

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

7.


Taxation


2024
2023
£000
£000

Corporation tax


Adjustments in respect of previous periods
-
(24)


-
(24)

Foreign tax


Foreign tax on income for the year
37
45

Foreign tax in respect of prior periods
1
1

38
46

Total current tax
38
22

Deferred tax


Origination and reversal of timing differences
(202)
(143)

Adjustment in respect of prior period
-
(1)

Total deferred tax
(202)
(144)


Tax on loss
(164)
(122)
Page 31

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
7.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023:higher than) the standard rate of corporation tax in the UK of 25% (2023:23.52%). The differences are explained below:

2024
2023
£000
£000


Loss on ordinary activities before tax
(2,701)
(510)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023:23.52%)
(675)
(120)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
12
5

Fixed asset differences
26
(1)

Amortisation of goodwill
27
27

Adjustments for prior periods - current tax
(1)
(23)

Adjustments for prior periods - deferred tax
1
(1)

Remeasurement of deferred tax
-
(9)

Carried forward losses
446
-

Total tax charge for the year
(164)
(122)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 32

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


Employees

Staff costs, including Directors' remuneration, were as follows:


Group
Group
2024
2023
£000
£000


Wages and salaries
21,824
21,753

Social security costs
1,961
2,012

Cost of defined contribution scheme
614
593

24,399
24,358


The average monthly number of employees, including the Directors, during the year was as follows:


        2024
        2023
            No.
            No.







Administration
165
164



Sales
95
96



Engineers
284
269



Central monitoring
46
48

590
577


9.


Directors' remuneration

2024
2023
£000
£000

Directors' emoluments
470
460

Group contributions to defined contribution pension schemes
30
26

500
486


During the year retirement benefits were accruing to 3 Directors (2023:3) in respect of defined contribution pension schemes.

Page 33

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

10.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor and its associates:


2024
2023
£000
£000

Fees payable to the Company's auditor and its associates for the audit of the consolidated and parent Company's financial statements
69
80

Fees payable to the Company's auditor and its associates in respect of:

All non-audit services not included above
5
-


11.


Intangible assets

Group





Goodwill

£000



Cost


At 1 January 2024
10,587


Additions
485



At 31 December 2024

11,072



Amortisation


At 1 January 2024
10,214


Charge for the year on owned assets
139



At 31 December 2024

10,353



Net book value



At 31 December 2024
719



At 31 December 2023
373


The goodwill arises on the acquisitions of the company's 100% subsidiaries Capital Q High Security Services Ltd and Receptor Ltd and has been fully written down. The remaining balance brought forward relates to the company's acquisition of 100% of the share capital of Scan Alarms Limited. In the year, the group acquired Bluestream Technology Limited resulting in additional goodwill.


Page 34

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
           11.Intangible assets (continued)

Company




Goodwill

£000



Cost


At 1 January 2024
8,529



At 31 December 2024

8,529



Amortisation


At 1 January 2024
8,529



At 31 December 2024

8,529



Net book value



At 31 December 2024
-



At 31 December 2023
-

Page 35

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Tangible fixed assets

Group






Freehold property
Leasehold property
Motor vehicles
F&F, computers & office equip.
Security Systems
Total

£000
£000
£000
£000
£000
£000



Cost or valuation


At 1 January 2024
3,874
2,435
6,663
5,788
7,119
25,879


Additions
-
24
2,318
248
50
2,640


Disposals
-
(239)
(1,398)
(10)
-
(1,647)



At 31 December 2024

3,874
2,220
7,583
6,026
7,169
26,872



Depreciation


At 1 January 2024
1,266
642
4,315
5,231
7,032
18,486


Charge for the year on owned assets
78
41
1,208
215
55
1,597


Disposals
-
(123)
(1,397)
(10)
-
(1,530)



At 31 December 2024

1,344
560
4,126
5,436
7,087
18,553



Net book value



At 31 December 2024
2,530
1,660
3,457
590
82
8,319



At 31 December 2023
2,608
1,793
2,348
557
87
7,393

Leasehold property includes cost of £2,102,568 (2023: £2,277,568) and accumulated depreciation of £479,273 (2023: £497,364) relating to property held under long leases. The remainder relates to property held under short term leases.

Page 36

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

           12.Tangible fixed assets (continued)


Company






Freehold property
Leasehold property
Motor vehicles
F&F, computers & office equip.
Security Systems
Total

£000
£000
£000
£000
£000
£000

Cost or valuation


At 1 January 2024
3,874
2,435
6,154
5,592
7,119
25,174


Additions
-
24
2,157
233
50
2,464


Disposals
-
(239)
(1,398)
(10)
-
(1,647)



At 31 December 2024

3,874
2,220
6,913
5,815
7,169
25,991



Depreciation


At 1 January 2024
1,266
642
4,016
5,086
7,032
18,042


Charge for the year on owned assets
78
41
1,112
204
55
1,490


Disposals
-
(123)
(1,397)
(10)
-
(1,530)



At 31 December 2024

1,344
560
3,731
5,280
7,087
18,002



Net book value



At 31 December 2024
2,530
1,660
3,182
535
82
7,989



At 31 December 2023
2,608
1,793
2,138
506
87
7,132

Leasehold property includes cost of £2,102,568 (2023: £2,277,568) and accumulated depreciation of £479,273 (2023: £497,364) relating to property held under long leases. The remainder relates to property held under short term leases.






Page 37

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


Fixed asset investments

Company





Investments in subsidiary companies

£000



Cost or valuation


At 1 January 2024
1,716



At 31 December 2024
1,716





Direct subsidiary undertakings


The following were direct subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Receptor Limited
Secom House, 52 Godstone Road, Kenley, Surrey, CR8 5JF
Ordinary
100%
Capital Q High Security Services Limited
Secom House, 52 Godstone Road, Kenley, Surrey, CR8 5JF
Ordinary
100%
Scan Alarms Limited
52 Trench Road, Mallusk, Newtonabbey, Antrim, BT36 4TY
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings was as follows:

Name
Aggregate of share capital and reserves
£000

Receptor Limited
75

Capital Q High Security Services Limited
-

Scan Alarms Limited
196

Page 38

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

Indirect subsidiary undertakings


The following were indirect subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Scan Alarms and Security Systems (UK) Limited
52 Trench Road, Mallusk, Newtonabbey, Antrim, BT36 4TY
Ordinary
100%
Scan Alarms and Security Systems (Ireland) Limited
52 Trench Road, Mallusk, Newtonabbey, Antrim, BT36 4TY
Ordinary
100%
Bluestream Technology Limited (ROI)
52 Trench Road, Mallusk, Newtonabbey, Antrim, BT36 4TY
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£000
£000

Scan Alarms and Security Systems (UK) Limited
3,787
616

Scan Alarms and Security Systems (Ireland) Limited
-
-

Bluestream Technology Limited (ROI)
603
229

Receptor Limited and Capital Q High Security Services Ltd are dormant companies which are exempt from audit. Scan Alarms Limited is the holding company of a group whose principal activity is the installation, maintenance and monitoring of security systems. This company was acquired on 31 March 2017.
The turnover of the Scan Alarms Limited group for the year ended 31 December 2024 was £5.59m (2023: £4.93m) and the profit before tax was £0.74m (2023: £0.70m.)


14.


Stocks

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Work in progress
2,114
2,158
1,864
1,809

Fire and security equipment - finished goods
3,663
3,384
3,433
3,164

5,777
5,542
5,297
4,973


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Raw materials, consumables and changes in finished goods and work in progress recognised as cost of sales in the year amounted to £12,160,894 (2023: £14,402,078) Company £10,705,023 (2023: £13,290,089). There were no write downs to net realisable value (2023: none).

Page 39

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

15.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000


Trade debtors
6,181
6,570
4,960
5,534

Amounts owed by group undertakings
-
-
155
99

Other debtors
266
237
124
130

Prepayments and accrued income
3,674
3,353
3,614
3,308

10,121
10,160
8,853
9,071



16.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Cash at bank and in hand
19,551
21,192
17,233
19,069

19,551
21,192
17,233
19,069


Cash at bank and in hand for the company includes £12,201,147 (2023: £14,620,792) held in term deposit accounts. Cash at bank and in hand for the group includes £12,601,147 (2023: £15,020,792) held in term deposit accounts. 


17.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Trade creditors
3,263
3,146
3,223
3,091

Deferred income
8,409
6,764
7,675
6,144

Other taxation and social security
1,496
1,238
1,211
1,009

Obligations under finance lease and hire purchase contracts
18
-
-
-

Other creditors
266
149
159
148

Accruals
1,128
708
1,025
610

14,580
12,005
13,293
11,002


Page 40

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

18.


Creditors: Amounts falling due after more than one year

Company
Company
2024
2023
£000
£000

Amounts owed to group undertakings
75
75

75
75


Amounts owed to subsidiary undertakings are interest free and are wholly repayable in more than five years. The subsidiary undertakings have subordinated their rights of repayment of sums due by the Company to them until the claims of other creditors have been met in full.


19.


Deferred taxation


Group



2024


£000






At beginning of year
(243)


Charged to profit or loss
201



At end of year
(42)

Company


2024


£000






At beginning of year
(202)


Charged to profit or loss
202



At end of year
-
Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Accelerated capital allowances
(42)
(704)
-
(662)

Short term timing differences
-
51
-
51

Losses and other deductions
-
410
-
409

(42)
(243)
-
(202)

Page 41

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

20.


Share capital

2024
2023
£000
£000
Allotted, called up and fully paid



44,126,304 ordinary shares of £1.00 each
44,126
44,126


The ordinary shares have full and equal voting rights, rights to dividends and to the repayment of capital.


21.


Reserves

Foreign exchange reserve

The foreign exchange reserve relates to retranslation of an indirect subsidiary.

Profit and loss account

The profit and loss accounts includes accumulated profit and loss less dividends paid.


22.


Capital commitments




At 31 December 2024 the Group and the Company had capital commitments of £11,840 (2023: £226,507).




23.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £614,499k (2023: £592,583). Contributions totalling £92,731 (2023:£85,252) were payable to the fund at the balance sheet date and are included in creditors.


24.


Operating lease commitments

At 31 December 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Within 1 year
251
267
206
209

Between 1 and 5 years
338
700
338
655

Over 5 years
-
16
-
16

589
983
544
880

Page 42

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

25.


Financial instruments

Group
Group
Company
Company
2024
2023 (restated)
2024
2023 (restated)
£000
£000
£000
£000

Financial assets

Assets measured at amortised cost
27,986
30,169
24,469
27,002


Financial liabilities

Liabilities measured at amortised cost
6,153
5,242
5,618
4,859


Financial assets measured at amortised cost comprise cash at bank and in hand, amounts owed by group undertakings, trade debtors, other debtors and accrued income.


Financial liabilities measured at amortised cost comprise trade creditors, other creditors and accruals.


The above financial assets are shown net of a bad debt debt provision for the group of £116,941 (2023: £95,610) and £85,700 (2023: £91,749) for the company.
The comparative figures have been amended to reflect the inclusion of Cash at bank and in hand and amounts owed by group undertakings as a financial instrument increasing financial assets by (Company : £19,167,849) and (Group : £21,192,094.)


26.


Accounting estimates and judgements

Critical accounting judgements in applying the Company's accounting policies.
Revenue from installations is not recognised until a signed acceptance is received from the customer. This judgement ensures revenue is only recognised when it is probable that economic benefits will flow to the entity and the amount of revenue can be reliably measured. The signed acceptance serves as evidence that the performance obligation has been satisfied, confirming the completion of the installation review to the customer’s satisfaction. Without this acceptance, there remains a risk that the customer may dispute the service, request modifications, or delay payment, which would make revenue recognition premature. This approach ensures compliance with the prudence and accruals concepts by recognising revenue only when there is a reasonable certainty of collectability and completion.
Deferred tax assets are recognised only when it is probable that sufficient future taxable profits will be available to utilise the temporary differences. The judgement involves assessing the likelihood of future profitability, considering factors such as historical performance, future business plans, industry conditions, and tax planning opportunities. If there is insufficient evidence to support future taxable profits, the entity will not recognise a deferred tax asset to avoid overstating financial position. This cautious approach aligns with the prudence concept, ensuring that assets are not overstated, and potential tax benefits are only recognised when their realisation is reasonably certain.

Page 43

 
SECOM PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

27.


Related party transactions

Scan Alarms Limited, Receptor Limited and Capital Q High Security Services Limited are 100% subsidiaries of Secom plc. The Company has taken advantage of the exemptions given in FRS 102, section 33. This exemption permits the non-disclosure of related party transactions of wholly owned subsidiary companies within the group.
Payroll costs include amounts paid to dependents of key management personnel on an arm’s length basis.


28.


Immediate and ultimate holding companies

The Company is a subsidiary of Secom Co. Limited incorporated in Japan which is both the immediate and ultimate parent undertaking.
The largest group in which the results of the Company and its group are consolidated is that headed by Secom Co. Limited whose registered office is shown below. The smallest group in which they are consolidated is in these accounts. No other group financial statements include the results of the Company.
Copies of the ultimate holding company’s accounts can be obtained from its registered office at:
1-5 Jingumae 1-chome
Shibuya-ku
Tokyo 150-0001
Japan

Page 44