Company registration number 04047092 (England and Wales)
FORTH BUILDING SERVICES LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
FORTH BUILDING SERVICES LTD
COMPANY INFORMATION
Directors
Mr S J Stephens
Mr M Cripps
(Appointed 30 July 2024)
Mr D J Carr
Mr J Davis
Company number
04047092
Registered office
3 & 4 Sleepy Hollow Business Park
Ampfield Hill
Romsey
Hants
SO51 9AW
Auditor
Fiander Tovell
Stag Gates House
63/64 The Avenue
Southampton
Hampshire
SO17 1XS
FORTH BUILDING SERVICES LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Notes to the financial statements
10 - 20
FORTH BUILDING SERVICES LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Principal risks and uncertainties
The company manages a portfolio of risks that reflect both internal and external challenges to its core activities. Risks are proactively identified and managed by senior management in various forums and through the continuous review of key processes and procedures. The principal risks and uncertainties are:
Contract retention risk
The company is very proud of its client retention rates and strives to maintain contractual relationships through delivery of a premium service and competitive pricing. The gestation period of securing new contracts can be significant and therefore the company mitigates the potential financial impact of contractual losses through highly skilled dedicated account management teams.
Price risk
The business has continued to enjoy fair margins, supported by the longevity of relationships with key clients. Profitability is protected against the impact of low margin work, through a strategic decision to primarily deliver installation works for maintenance clients only, and in so doing protect the business from aggressive competitor pricing in open tender environments. Investment in a CRM system, along with an industry specific asset management system enables the Account Management team to focus on quality of service, rather than price alone.
Liquidity and credit risk
The company seeks to manage liquidity risk by maintaining a healthy cash reserve, supported by an overdraft facility, albeit not used in the year, to service trading commitments. The Board review monthly key financial measures, including debtor and creditor days, to maintain a healthy relationship with the supply chain, to aid deliver of a premium service to clients, whilst ensuring a healthy working capital cycle.
Staff recruitment and retention risk
The company strives to deliver a premium service through a self-delivery model where possible. This creates risk around the attraction and retention of staff and so the company has developed an end-to-end recruitment model to improve the success rate on talent identification and onboarding. This is further supported by investment in an HR platform to ensure staff performance and development is proactively managed and reported to Board each month.
Health & Safety risk
The company has recruited a QHSE Director to develop and continuously improve a robust management system to mitigate Health & Safety risks associated with all business activity. We have invested heavily in staff training across all levels, including the IOSH Safety for Executives and Directors for all company Directors. The company also successfully achieved ISO45001 Health and Safety Accreditation, achieved a five-star grading from the British Safety Council Occupational Health and Safety Audit and were one of only 72 companies globally to be awarded the British Safety Council Sword of Honour 2024.
Cash Flow risk
Maintenance income is contracted and is billed over agreed periods, providing a reasonable level of positive cash flow on a consistent basis. Installation works are less predictable but delivered through in-house Contract Managers, supported by sub-contractors, which ensures cash out-flows are aligned to cash receipts, ensuring a positive working capital cycle. The business does not trade or procure in any foreign currency, and therefore not exposed to any exchange rate fluctuations. The Board review a 12-month Cash Flow forecast each month and receive a bi-weekly bank reconciliation report, detailing all income and expenditure. The business has an overdraft facility in place but has never had to use this to date.
Development and performance
Turnover increased by 18.8% year on year, driven by a significant contract win, positively affecting both maintenance and installation income. This along with retention of all significant clients has seen our market share increase aligned to our strategic targets, which has positioned the business well for future growth opportunities, supported by the appointment of key hires in delivery and operational roles. The business continues to invest in growing sales through its existing customer base and targeted new clients, who invest in their assets, to ensure alignment to our service offering. The business has further supported this strategic aim with investment in a CRM system, along with an industry specific asset management system to ensure clients receive a premium service in all engagements.
FORTH BUILDING SERVICES LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Key performance indicators
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Average number of employees | |
The Directors consider performance against these KPIs to be satisfactory.
Mr S J Stephens
Director
20 June 2025
FORTH BUILDING SERVICES LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company continued to be the provisions of design, maintenance and installation of combustion, air conditioning, mechanical and electrical systems in commercial environments, including Office, Education, Heritage, Healthcare, Defence and Manufacturing.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £601,578. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr S J Stephens
Mr M Cripps
(Appointed 30 July 2024)
Mr D J Carr
Mr J Davis
Future developments
The business will look to expand its relationship with existing key clients, whilst actively developing relationships with potential new clients through the Account Management teams, underpinned by the introduction of a CRM system to improve all interactions. The company now allows the account management team to offer clients a wider range of services and geographical coverage to further develop the group’s market share and strategic growth aspirations.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
FORTH BUILDING SERVICES LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr S J Stephens
Director
20 June 2025
FORTH BUILDING SERVICES LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FORTH BUILDING SERVICES LTD
- 5 -
Opinion
We have audited the financial statements of Forth Building Services Ltd (the 'company') for the year ended 30 September 2024 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
The period ended 30 September 2024 is the first period for which an audit has been required for the company. As a result, the comparative figures have not been audited.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
FORTH BUILDING SERVICES LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FORTH BUILDING SERVICES LTD (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
we identified the laws and regulations applicable to the company through discussions with management, and from our commercial knowledge and experience.
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
FORTH BUILDING SERVICES LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FORTH BUILDING SERVICES LTD (CONTINUED)
- 7 -
Audit response to risks identified
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships.
tested journal entries to identify unusual transactions.
assessed whether judgements and assumptions made in determining the accounting estimates.
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Adam Buse FCA (Senior Statutory Auditor)
For and on behalf of Fiander Tovell, Statutory Auditor
Chartered Accountants
Stag Gates House
63/64 The Avenue
Southampton
Hampshire
SO17 1XS
20 June 2025
FORTH BUILDING SERVICES LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
15,104,003
12,713,158
Cost of sales
(10,341,770)
(7,916,739)
Gross profit
4,762,233
4,796,419
Administrative expenses
(3,658,769)
(2,821,334)
Other operating income
427,117
Operating profit
4
1,530,581
1,975,085
Interest payable and similar expenses
7
(8,390)
(9,859)
Amounts written off investments
8
(237,060)
-
Profit before taxation
1,285,131
1,965,226
Tax on profit
9
(430,067)
(459,036)
Profit for the financial year
855,064
1,506,190
Retained earnings brought forward
1,774,927
1,317,030
Dividends
10
(601,578)
(1,048,293)
Retained earnings carried forward
2,028,413
1,774,927
The profit and loss account has been prepared on the basis that all operations are continuing operations.
FORTH BUILDING SERVICES LTD
BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
104,700
199,495
Current assets
Debtors
12
4,637,297
4,116,757
Cash at bank and in hand
1,183,945
765,553
5,821,242
4,882,310
Creditors: amounts falling due within one year
13
(3,878,135)
(3,227,479)
Net current assets
1,943,107
1,654,831
Total assets less current liabilities
2,047,807
1,854,326
Creditors: amounts falling due after more than one year
14
(78,399)
Provisions for liabilities
Deferred tax liability
16
18,394
(18,394)
-
Net assets
2,029,413
1,775,927
Capital and reserves
Called up share capital
18
1,000
1,000
Profit and loss reserves
2,028,413
1,774,927
Total equity
2,029,413
1,775,927
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 20 June 2025 and are signed on its behalf by:
Mr S J Stephens
Director
Company registration number 04047092 (England and Wales)
FORTH BUILDING SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
1
Accounting policies
Company information
Forth Building Services Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 3 & 4 Sleepy Hollow Business Park, Ampfield Hill, Romsey, Hants, SO51 9AW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Forth Hold Limited. These consolidated financial statements are available from its registered office, 3 & 4 Sleepy Hallow Business Park, Ampfield Hill, Romsey, Hampshire So51 9AW.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
FORTH BUILDING SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 11 -
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
15% reducing balance
Fixtures, fittings and equipment
15% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
FORTH BUILDING SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 12 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
FORTH BUILDING SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
FORTH BUILDING SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
It is considered that the company has no significant judgements, estimates and assumptions that would have a material impact on the financial statements.
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Maintenance
6,268,695
4,430,787
Installations
8,835,308
8,282,371
15,104,003
12,713,158
All turnover arises solely from within the United Kingdom.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,000
Depreciation of owned tangible fixed assets
18,183
21,471
Depreciation of tangible fixed assets held under finance leases
11,172
29,792
Loss on disposal of tangible fixed assets
10,203
-
Operating lease charges
197,008
260,903
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Engineers
28
20
Management and administration
52
44
Total
80
64
FORTH BUILDING SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
5
Employees
(Continued)
- 15 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,982,308
2,978,568
Social security costs
418,693
312,728
Pension costs
269,820
89,010
4,670,821
3,380,306
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
225,406
12,324
Company pension contributions to defined contribution schemes
173,190
20,000
398,596
32,324
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
6,396
-
Company pension contributions to defined contribution schemes
172,706
-
7
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
8,390
7,463
Other interest
2,396
8,390
9,859
8
Amounts written off investments
2024
2023
£
£
Amounts written off current loans
(237,060)
-
FORTH BUILDING SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
411,582
459,036
Adjustments in respect of prior periods
91
Total current tax
411,673
459,036
Deferred tax
Origination and reversal of timing differences
(7,922)
Adjustment in respect of prior periods
26,316
Total deferred tax
18,394
Total tax charge
430,067
459,036
From 1 April 2023, the rate of corporation tax increased from 19% to 25%. The effective rate of corporation tax for the year was 25% (2023: 22%).
The effective rate of deferred tax for the year was 25%.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,285,131
1,965,226
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
321,283
432,350
Tax effect of expenses that are not deductible in determining taxable profit
82,377
35,457
Tax effect of utilisation of tax losses not previously recognised
(1,683)
Adjustments in respect of prior years
91
Permanent capital allowances in excess of depreciation
(7,259)
Other permanent differences
171
Deferred tax adjustments in respect of prior years
26,316
Taxation charge for the year
430,067
459,036
10
Dividends
2024
2023
£
£
Final paid
601,578
1,048,293
FORTH BUILDING SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
11
Tangible fixed assets
Leasehold land and buildings
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2023
12,676
156,103
141,918
310,697
Additions
12,763
12,763
Disposals
(130,000)
(130,000)
At 30 September 2024
12,676
168,866
11,918
193,460
Depreciation and impairment
At 1 October 2023
5,704
55,562
49,936
111,202
Depreciation charged in the year
1,046
16,485
11,824
29,355
Eliminated in respect of disposals
(51,797)
(51,797)
At 30 September 2024
6,750
72,047
9,963
88,760
Carrying amount
At 30 September 2024
5,926
96,819
1,955
104,700
At 30 September 2023
6,972
100,541
91,982
199,495
The carrying value of land and buildings comprises:
2024
2023
£
£
Long leasehold
5,926
6,972
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
89,375
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,768,011
3,563,555
Amounts owed by group undertakings
476,454
305,443
Other debtors
108,416
93,354
Prepayments and accrued income
284,416
154,405
4,637,297
4,116,757
FORTH BUILDING SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
15
10,579
Trade creditors
1,296,678
1,316,457
Amounts owed to group undertakings
45,000
Corporation tax
412,451
296,370
Other taxation and social security
716,493
676,308
Other creditors
46,491
42,510
Accruals and deferred income
1,361,022
885,255
3,878,135
3,227,479
Creditors include net obligations under hire purchase contracts of £Nil (2023: £10,579) which are secured on the asset to which it relates.
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
15
78,399
Creditors include net obligations under hire purchase contracts of £Nil (2023: £78,399) which are secured on the asset to which it relates.
15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
10,579
In two to five years
78,399
88,978
Finance lease payments represent rentals payable by the company for certain motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The asset has been sold during the year and as a result the liability is now cleared.
FORTH BUILDING SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
22,196
-
Retirement benefit obligations
(2,052)
-
Other short-term timing differences
(1,750)
-
18,394
-
2024
Movements in the year:
£
Liability at 1 October 2023
-
Charge to profit or loss
18,394
Liability at 30 September 2024
18,394
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
269,820
89,010
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Contributions totalling £32,113 (2023: £26,811) were payable at the year end and are included in creditors.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
900
900
900
900
Ordinary B Shares of £1 each
100
100
100
100
1,000
1,000
1,000
1,000
Both classes of shares hold the same rights.
Each share has full rights in the company with respect to voting, dividends and distributions.
FORTH BUILDING SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
247,701
263,114
Between two and five years
231,775
277,956
479,476
541,070
20
Related party transactions
The company has taken advantage of the exemption available in FRS 102 whereby it has not disclosed transactions with its ultimate parent company or any wholly owned subsidiary undertakings of the group.
During the year Forth Building Services Limited traded with Forth Fire Limited, an associated company. Within the year the company made purchases of £946,515 (2023: £56,035) from Forth Fire Limited. At the balance sheet date amounts of £95,362 (2023: £46,301) were due from Forth Fire Limited.
21
Ultimate controlling party
The company's immediate and ultimate parent company is Forth Hold Limited, incorporated in England & Wales.
The results from this period are consolidated into Forth Hold Limited. A copy of the consolidated financial statements can be accessed on Companies House.
The ultimate controlling party is considered to be S Stevens by virtue of his shareholding in Forth Hold Limited.
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