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Registered Number:05912760













SGC HOLDINGS LIMITED






FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024











 
SGC HOLDINGS LIMITED
 

 
COMPANY INFORMATION


Directors
P J Macarthur 
T Macarthur (resigned 28 June 2024)
D Wilson (appointed 25 July 2024)




Registered number
05912760



Registered office
Unit 2, Cherry Tree Farm
Wethersfield Road

Sible Hedingham

Halstead

CO9 3LZ




Independent auditor
Sumer Auditco Limited
Statutory Auditor

820 The Crescent

Colchester Business Park

Colchester

Essex

CO4 9YQ






 
SGC HOLDINGS LIMITED
 


CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditor's Report
5 - 8
Statement of Comprehensive Income (including the Profit and Loss Account)
9
Balance Sheet
10
Statement of Changes in Equity
11
Statement of Cash Flows
12
Analysis of Net Debt
13
Notes to the Financial Statements
14 - 24



 
SGC HOLDINGS LIMITED
 

 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Business review
 
The directors consider the results for the year and the financial position at the year end to be satisfactory: turnover has remained at a similar level to last year and the company remains profitable. The directors also consider the year end cash and reserves positions to be sufficient for its ongoing needs. 
In terms of the uncertainties facing the Company, including ongoing inflationary pressures, the directors continue to actively take steps to minimise the potential risks to its supply chain, together with the risks that may affect turnover, costs and overall profitability. The Company remains in a healthy cash position. In addition, forecasting indicates that the Company is able to continue to meet its liabilities as they fall due. Further resilience is provided by the established relationships already in place with a number of customers and suppliers, which helps to both spread and mitigate some of the trading risks the Company may face. However, the directors acknowledge the inherent ongoing uncertainties faced by the Company, in line with those faced by the wider economy as a whole.
When reviewing the results for the year, it should be noted that the company has had to navigate a period of turbulence. This has included contract management issues which have adversely affected the company’s financial performance. As a result of this, remedial action has been taken to ensure the company is now better placed as it moves forwards. The company has also had to contend with the conclusion of several contracts, together with greater than usual legal costs, both of which have provided further significant challenges to the results for the year. When considering all such circumstances, it is felt that the effect on the company’s results has been mitigated as far as possible and that the results remain positive in view of the challenges that have been faced.

Price risk
 
Prices of both items purchased and sold are regularly reviewed and any potential risks are mitigated as soon as foreseen.

Credit risk
 
Cash deposits are only made through banks and companies whose credit rating is considered to be satisfactory by the directors.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary.

Liquidity risk and cash flow
 
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring that the company has sufficient liquid resources to meet the operating needs of the business.

Financial instruments
 
The directors regularly review and manage the financial risk management objectives and policies associated with the company's activities. The Company's principal financial instruments include instruments to manage all material risks that arise from the Company's operations. In accordance with the company's treasury policy, financial instruments are not entered into for speculative purposes.


- 1 -



 
SGC HOLDINGS LIMITED
 


STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024


This report was approved by the board on 19 June 2025 and signed on its behalf.



P J Macarthur
Director


- 2 -



 
SGC HOLDINGS LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 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 for the Company's financial statements 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the Company continued to be that of providing the supply of security services and facilities management.

Results and dividends

The profit for the year, after taxation, amounted to £15,277 (2023 - £493,707).

Dividends paid during the year total £160,000 and £520,000 has been paid since 30 September 2024. 

Directors

The directors who served during the year were:

P J Macarthur 
T Macarthur (resigned 28 June 2024)
D Wilson (appointed 25 July 2024)


- 3 -



 
SGC HOLDINGS LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Engagement with employees

Our people are key to our success, and we want them to be successful individually and as a team. Our key areas of focus include health and safety, well-being, providing them with relevant development opportunities and rewards for strong performance. We encourage dialogue and engagement throughout the business and reports from these discussions are made to management ensuring consideration is given to colleague needs. 

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'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's auditor is aware of that information.

Auditor

The auditor, Sumer Auditco Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 19 June 2025 and signed on its behalf.
 





P J Macarthur
Director


- 4 -



 
SGC HOLDINGS LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SGC HOLDINGS LIMITED

Opinion


We have audited the financial statements of SGC Holdings Limited (the 'Company') for the year ended 30 September 2024, which comprise the Statement of Comprehensive Income (including the Profit and Loss Account), the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity 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 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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.



- 5 -



 
SGC HOLDINGS LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SGC HOLDINGS LIMITED (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 Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.



- 6 -



 
SGC HOLDINGS LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SGC HOLDINGS LIMITED (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 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 identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the directors (as required by auditing standards), inspection of the company's regulatory and legal correspondence and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation, distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: the Private Security Act 2001, ISO 9001, ISO 14001, ISO 45001, COP 119, approved contractor regulations, health and safety, employment law, and GDPR. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the company complies with such regulations; enquiries of management and those charged with governance concerning any actual or potential litigation or claims, inspection of relevant legal documentation, review of board minutes, testing the appropriateness of journal entries and the performance of analytical review to identify any unexpected movements in account balances which may be indicative of fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


A further description of our responsibilities 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.



- 7 -



 
SGC HOLDINGS LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SGC HOLDINGS LIMITED (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.





Piers Harrison (Senior Statutory Auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Statutory Auditor
  
820 The Crescent
Colchester Business Park
Colchester
Essex
CO4 9YQ

26 June 2025

- 8 -



 
SGC HOLDINGS LIMITED
 

 
STATEMENT OF COMPREHENSIVE INCOME (INCLUDING THE PROFIT AND LOSS ACCOUNT)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
£
£

  

Turnover
 4 
10,622,641
10,543,389

Cost of sales
  
(8,495,085)
(8,466,705)

Gross profit
  
2,127,556
2,076,684

Administrative expenses
  
(2,073,329)
(1,450,527)

Other operating income
  
7,527
7,770

Operating profit
 5 
61,754
633,927

Interest receivable and similar income
 9 
316
8,381

Profit before tax
  
62,070
642,308

Tax on profit
 10 
(46,793)
(148,601)

Profit for the financial year
  
15,277
493,707

No recognised gains or losses for 2024 or 2023 other than those included in the profit and loss account. 
There were no other items of comprehensive income in 2024 (2023: £nil).
All amounts relate to continuing activities.
The notes on pages 14 to 24 form part of these financial statements.

- 9 -



 
SGC HOLDINGS LIMITED
REGISTERED NUMBER:05912760


BALANCE SHEET
AS AT 30 SEPTEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
127,117
134,695

  
127,117
134,695

Current assets
  

Debtors: amounts falling due within one year
 13 
1,936,698
2,909,342

Cash at bank and in hand
 14 
1,184,290
876,044

  
3,120,988
3,785,386

Creditors: amounts falling due within one year
 15 
(1,512,400)
(2,039,672)

Net current assets
  
 
 
1,608,588
 
 
1,745,714

Total assets less current liabilities
  
1,735,705
1,880,409

Provisions for liabilities
  

Deferred tax
 16 
(7,432)
(7,413)

  
 
 
(7,432)
 
 
(7,413)

Net assets
  
1,728,273
1,872,996


Capital and reserves
  

Called up share capital 
 17 
100
100

Profit and loss account
  
1,728,173
1,872,896

  
1,728,273
1,872,996


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 June 2025.




P J Macarthur
Director

The notes on pages 14 to 24 form part of these financial statements.


- 10 -



 
SGC HOLDINGS LIMITED
 


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 October 2023
100
1,872,896
1,872,996


Comprehensive income for the year

Profit for the year
-
15,277
15,277


Contributions by and distributions to owners

Dividends: Equity capital
-
(160,000)
(160,000)


At 30 September 2024
100
1,728,173
1,728,273


The notes on pages 14 to 24 form part of these financial statements.


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 October 2022
100
1,959,189
1,959,289


Comprehensive income for the year

Profit for the year
-
493,707
493,707


Contributions by and distributions to owners

Dividends: Equity capital
-
(580,000)
(580,000)


At 30 September 2023
100
1,872,896
1,872,996


The notes on pages 14 to 24 form part of these financial statements.


- 11 -



 
SGC HOLDINGS LIMITED
 


STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
15,277
493,707

Adjustments for:

Depreciation of tangible assets
24,189
41,126

Interest received
(316)
(8,381)

Taxation charge
46,793
148,601

Decrease/(increase) in debtors
872,010
(497,788)

Increase/(decrease) in creditors
149,089
(169,433)

Corporation tax paid
(49,138)
(3,081)

Net cash generated from operating activities

1,057,904
4,751


Cash flows from investing activities

Purchase of tangible fixed assets
(16,611)
(14,135)

Interest received
316
8,381

Net cash from investing activities

(16,295)
(5,754)

Cash flows from financing activities

Movements on invoice discounting
(573,363)
162,838

Dividends paid
(160,000)
(580,000)

Net cash used in financing activities
(733,363)
(417,162)

Net increase/(decrease) in cash and cash equivalents
308,246
(418,165)

Cash and cash equivalents at beginning of year
876,044
1,294,209

Cash and cash equivalents at the end of year
1,184,290
876,044


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,184,290
876,044


The notes on pages 14 to 24 form part of these financial statements.


- 12 -



 
SGC HOLDINGS LIMITED
 


ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2024




At 1 October 2023
Cash flows
At 30 September 2024
£

£

£

Cash at bank and in hand

876,044

308,246

1,184,290

Debt due within 1 year

(817,200)

573,363

(243,837)


58,844
881,609
940,453

The notes on pages 14 to 24 form part of these financial statements.


- 13 -



 
SGC HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.


General information

SGC Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2 Cherry Tree Farm, Wethersfield Road, Sible Hedingham, Halstead, England, CO9 3LZ. The company registration number is 05912760.

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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

After reviewing the company's forecasts and projections, together with all known factors, the Directors have a reasonable expectation that it has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of the financial statements. The entity therefore continues to adopt the going concern basis in preparing its financial statements.

 
2.3

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Interest income

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


- 14 -



 
SGC HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Short-term leasehold property
-
Depreciated over the lease term
Plant and equipment
-
25% reducing balance
Motor vehicles
-
25% reducing balance
Buildings
-
2% on cost

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.

 
2.6

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

  
2.7

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.8

Creditors

Short-term creditors are measured at the transaction price.


- 15 -



 
SGC HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

  
2.9

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.10

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date. Deferred tax balances are not discounted.
Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.



- 16 -



 
SGC HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.12

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Company in independently administered funds.

 
2.13

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make judgments, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and assumptions are based on experiences and other factors that are considered to be relevant. Actual results may differ from these estimates. Depreciation is calculated based upon the estimated useful lives of fixed assets and the assessment used is set out in the accounting policy. Similarly, bad debts are provided for as soon as their recoverability becomes sufficiently uncertain. 


4.


Turnover

2024
2023
£
£

Sales
10,622,641
10,543,389


All turnover arose in the United Kingdom.


- 17 -



 
SGC HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
24,189
41,126

Other operating lease rentals
260,165
116,406


6.


Auditor's remuneration

During the year, the Company incurred audit fees of £14,600 (2023 - £13,750).



7.


Employees

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


2024
2023
£
£

Wages and salaries
4,169,839
5,069,579

Social security costs
363,950
437,951

Cost of defined contribution scheme
66,915
76,729

4,600,704
5,584,259


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


        2024
        2023
            No.
            No.







Directors
2
2



Management
7
7



Administration
10
13



Officers
239
346

258
368

Key management personnel remuneration totalled £647,962 (2023 - £397,637).


- 18 -



 
SGC HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
184,838
250,437

Company contributions to defined contribution pension schemes
1,317
1,431

186,155
251,868


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £101,317 (2023 - £151,321).


9.


Interest receivable

2024
2023
£
£


Other interest receivable
316
8,381


10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
46,774
152,373


Total current tax
46,774
152,373

Deferred tax


Origination and reversal of timing differences
19
(5,072)

Adjustment in respect of previous periods
-
1,989

Effect of changes in tax rates
-
(689)

Total deferred tax
19
(3,772)


Tax on profit
46,793
148,601

- 19 -



 
SGC HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year differs to the standard rate of corporation tax in the UK of 25% (2023 -19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
62,070
642,308


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
15,518
141,361

Effects of:


Expenses not deductible
30,371
3,067

Other assets not qualifying for capital allowance purposes
710
-

Income not taxable
-
(14)

Adjustment from previous periods
194
4,876

Tax rate changes
-
(689)

Total tax charge for the year
46,793
148,601






11.


Dividends

2024
2023
£
£


Dividends
160,000
580,000

160,000
580,000


- 20 -



 
SGC HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

12.


Tangible fixed assets





Buildings
Short-term leasehold property
Plant and machinery
Total

£
£
£
£



Cost or valuation


At 1 October 2023
41,700
18,225
264,291
324,216


Additions
138
-
16,473
16,611



At 30 September 2024

41,838
18,225
280,764
340,827



Depreciation


At 1 October 2023
3,337
17,550
168,634
189,521


Charge for the year
299
675
23,215
24,189



At 30 September 2024

3,636
18,225
191,849
213,710



Net book value



At 30 September 2024
38,202
-
88,915
127,117



At 30 September 2023
38,363
675
95,657
134,695


13.


Debtors

2024
2023
£
£


Trade debtors
1,829,561
2,696,110

Other debtors
3,589
104,579

Prepayments and accrued income
103,548
108,653

1,936,698
2,909,342


A loan of £nil (2023: £92,634) held by the company with SGC Training Services Limited, a company under common control, was repayable on demand. The full balance of £100,634 has been written-off during the year.


- 21 -



 
SGC HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

14.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,184,290
876,044



15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
667,725
525,616

Corporation tax
46,294
149,292

Other taxation and social security
439,755
435,386

Bank invoice discounting
243,837
817,200

Other creditors
34,166
38,613

Accruals and deferred income
80,623
73,565

1,512,400
2,039,672


The bank invoice discounting disclosed above is secured over the trade debtors of the company.


- 22 -



 
SGC HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

16.


Deferred taxation




2024


£






At beginning of year
(7,413)


Profit and loss movement in the year
(19)



At end of year
(7,432)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
7,432
7,413


17.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary shares of £1.00 each
100
100



18.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the entity to the fund and amounted to £66,915 (2023 - £76,729). Contributions totalling £13,799 (2023 - £17,001) were payable to the fund at the balance sheet date and are included in creditors.


- 23 -



 
SGC HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

19.


Commitments under operating leases

At 30 September 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
187,355
65,774

Later than 1 year and not later than 5 years
215,835
125,487

Later than 5 years
96,730
125,749

499,920
317,010


20.


Related party transactions

Dividends totalling £160,000 (2023 - £580,000) were paid in the year in respect of shares held by one of the company's directors.
During the year transactions have taken place with SGC Training Services Ltd, a company under common control. The balance owed by SGC Training Services Ltd at 30 September 2024 was £nil (2023 - £92,634). This is an intercompany loan held by the company which was repayable on demand until the full balance of £100,634 was written-off during the year.
During the year the Company paid wages to close family members of the directors amounting to £34,065 (2023 - £28,000)


21.


Control

During the year ended 30 September 2024, the company was controlled by P J Macarthur, the majority shareholder.

 

- 24 -