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Registration number: 05025975

Circum Fire Engineering Ltd

Annual Report and Financial Statements

for the Year Ended 30 September 2024

 

Circum Fire Engineering Ltd

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 9

Profit and Loss Account and Statement of Retained Earnings

10

Balance Sheet

11

Notes to the Financial Statements

12 to 22

 

Circum Fire Engineering Ltd

Company Information

Directors

M L Wheeler

A J Wheal

P E Miller

Registered office

4 Swanbridge Industrial Park
Black Croft Road
Witham
Essex
CM8 3YN

Auditors

Clement Rabjohns Limited
Registered Auditors and Chartered Accountants111/113 High Street
Evesham
Worcestershire
WR11 4XP

 

Circum Fire Engineering Ltd

Strategic Report for the Year Ended 30 September 2024

The directors present their strategic report for the year ended 30 September 2024.

Principal activity

The principal activity of the company is supply and maintenance of fire security systems.

Fair review of the business

During the year, the company has grown organically delivering larger scale projects. This has resulted in turnover decreasing by 8.9% to £15.5M. Despite challenging market conditions, the company has grown Operating Profit and EBITDA, the key indicators by which the directors measure the business.

The company traded well throughout the year generating EBITDA of £1,506K and holding cash balances of £108K. See reconciliation of EBITDA below:

Note

2024
 £

2023
 £

Reconciliation of EBITDA

 

Profit before tax

 

919,856

667,176

Interest Payable

 

837

6,105

Loss on disposal of assets

 

3,096

2,431

Depreciation & Amortisation

 

45,502

17,058

Other non-operating costs

 

119,678

58,349

Group management recharge

 

417,069

212,313

 

1,506,038

963,432

The company uses a range of performance measures to effectively monitor and manage its business. The Directors and senior management review these KPI’s and financial performance monthly and these are discussed at the monthly board meetings. The financial KPI’s used to manage the business are disclosed below:

Financial KPIs

Unit

2024

2023

Turnover

£

15,510,231

17,060,640

Turnover growth

%

(9)

205

Gross Profit

£

3,218,872

2,439,035

EBITDA before non-recurring costs

£

1,625,716

2,034,673

Non-recurring costs

£

119,678

1,071,241

EBITDA after non-recurring costs

£

1,506,038

963,432

EBITDA Growth

%

56

50

 

Circum Fire Engineering Ltd

Strategic Report for the Year Ended 30 September 2024

Principal risks and uncertainties

The principal risks to the business are;

- To mis-manage the installation of equipment at a client site resulting in a claim for contractual damages
- To provide defective design services to a client resulting in inadequate fire or security protection

The company has significant technical expertise and systems of management control and supervision borne out by its industry accreditations. These, combined with our unblemished track record over many years of trading provides comfort that the above risks are being properly mitigated.

Approved and authorised by the Board on 26 June 2025 and signed on its behalf by:
 

.........................................
M L Wheeler
Director

 

Circum Fire Engineering Ltd

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 of the company

The directors who held office during the year were as follows:

M L Wheeler

D W Watson (ceased 29 March 2024)

D R Pugh (ceased 21 June 2024)

A J Wheal

The following director was appointed after the year end:

P E Miller (appointed 28 April 2025)

Financial instruments

Objectives and policies

The group's activities expose it to a variety of financial risks that include the effects of the change in price risk, liquidity risk, interest rate risk and operational risk.

Price risk, credit risk, liquidity risk and cash flow risk

The principal risks to the business are:

Price risk
The Group is exposed to price risk due to normal inflationary increase in the purchase price of supplies and services.

Liquidity risk
The Group regularly reviews its liquidity risk and has arranged appropriate facilities to be available.

Credit risk
The Group has a rigorous credit policy which it uses to manage credit risk. The cost of borrowing and general inflation increases have increased the risk of bad debt occurring, but the business has a wide customer base which spreads its risk and provision for potential bad debts.

Interest rate risk
The Group is exposed to interest rate risk on its borrowings, which are based on margin over SONIA. A rise in interest rates could increase the cost of borrowings. The Group continually monitors interest rate risks and reviews hedging as a way to mitigate interest rate rises though no hedging arrangements are currently in place.

Operational risk
- The mis-handling of a significant acquisition
- To mis-manage the installation of equipment at a client site resulting in a claim for contractual damages
- To provide defective design services to a client resulting in inadequate fire or security protection

The group has significant technical expertise and systems of management control, and supervision borne out by its industry accreditations. These, combined with our unblemished track record over many years of trading, provides comfort that the above risks are being properly mitigated.

 

Circum Fire Engineering Ltd

Directors' Report for the Year Ended 30 September 2024

Going concern

The directors, having assessed future profit forecasts and the level of financial support available, where necessary, have no reason to believe that a material uncertainty exists about the ability of the company to ensure that is can continue as a going concern for a period of at least a year from the date of approval of the financial statements. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Clement Rabjohns Limited as auditors of the company is to be proposed at the forthcoming Annual General Meeting.

Approved and authorised by the Board on 26 June 2025 and signed on its behalf by:
 

.........................................
M L Wheeler
Director

 

Circum Fire Engineering Ltd

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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.

 

Circum Fire Engineering Ltd

Independent Auditor's Report to the Members of Circum Fire Engineering Ltd

Opinion

We have audited the financial statements of Circum Fire Engineering Ltd (the 'company') for the year ended 30 September 2024, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 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 responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

Circum Fire Engineering Ltd

Independent Auditor's Report to the Members of Circum Fire Engineering Ltd

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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. Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities even though the audit has been properly planned and performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Circum Fire Engineering Ltd

Independent Auditor's Report to the Members of Circum Fire Engineering Ltd

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, and the industry in which it operates. These include but are not limited to compliance with the Companies Act 2006, UK Generally Accepted Accounting Principles and the relevant tax compliance regulations for the company.

We obtained an understanding of how the company is complying with these frameworks through discussions with management.

We enquired with management whether there were any instances of non-compliance with laws and regulations or whether they had knowledge of actual or suspected fraud. These enquiries are corroborated through follow-up audit procedures including but not limited to a review of legal and professional costs and correspondence.

We assessed the susceptibility of the company's financial statements to material misstatement, including the risk of fraud and management override of controls. We designed our audit procedures to respond to this assessment, including the identification and testing of any related party transactions and the testing of journal transactions that arise from management estimates, that are determined to be of significant value or unusual in their nature.

We assessed the appropriateness of the collective competence and capabilities of the engagement team, including consideration of the engagement team's knowledge and understanding of the industry in which the company operates in, and their practical experience through training and participation with audit engagements of a similar nature.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Philip Parsons FCA (Senior Statutory Auditor)
For and on behalf of Clement Rabjohns Limited, Statutory Auditor
 111/113 High Street
Evesham
Worcestershire
WR11 4XP

26 June 2025

 

Circum Fire Engineering Ltd

Profit and Loss Account and Statement of Retained Earnings for the Year Ended 30 September 2024

Note

2024
£

2023
£

Turnover

3

15,510,231

17,060,640

Cost of sales

 

(12,456,276)

(14,591,605)

Gross profit

 

3,053,955

2,469,035

Administrative expenses

 

(2,133,262)

(1,852,220)

Other operating income

4

-

56,466

Operating profit

6

920,693

673,281

Other interest receivable and similar income

7

332

-

Interest payable and similar charges

8

(1,169)

(6,105)

 

(837)

(6,105)

Profit before tax

 

919,856

667,176

Taxation

11

36,484

48,445

Profit for the financial year

 

956,340

715,621

Retained earnings brought forward

 

2,301,847

1,586,226

Retained earnings carried forward

 

3,258,187

2,301,847

 

Circum Fire Engineering Ltd

(Registration number: 05025975)
Balance Sheet as at 30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

12

148,020

175,936

Tangible assets

13

21,694

41,630

 

169,714

217,566

Current assets

 

Stocks

14

18,778

21,372

Debtors

15

5,062,003

5,380,895

Cash at bank and in hand

 

108,196

367,819

 

5,188,977

5,770,086

Creditors: Amounts falling due within one year

17

(2,097,021)

(3,677,338)

Net current assets

 

3,091,956

2,092,748

Total assets less current liabilities

 

3,261,670

2,310,314

Provisions for liabilities

18

(2,533)

(7,517)

Net assets

 

3,259,137

2,302,797

Capital and reserves

 

Called up share capital

950

950

Retained earnings

3,258,187

2,301,847

Shareholders' funds

 

3,259,137

2,302,797

Approved and authorised by the Board on 26 June 2025 and signed on its behalf by:
 

.........................................
M L Wheeler
Director

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales, UK.

The address of its registered office is:
4 Swanbridge Industrial Park
Black Croft Road
Witham
Essex
CM8 3YN
United Kingdom

The principal place of business is:
Fountain Court
Room L9 + L10
2 Victoria Square
St Albans
Hertfordshire
AL1 3TF
United Kingdom

These financial statements were authorised for issue by the Board on 26 June 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are presented in Pound Sterling (£).

Summary of disclosure exemptions

Circum Fire Engineering Limited meets the definition of a qualifying entity under FRS 102 and is therefore exempt from certain disclosure requirements in respect of its financial statements. Exemptions have been taken in relation to the preparation of a statement of cash flows, financial instruments and key management compensation.

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2024

Judgements

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 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.

Key sources of estimation uncertainty

The turnover policy and financial instrument policies below set out the company's policies with regards to revenue recognition and recognition of accrued contract costs which affects turnover, cost of sales, gross profit, debtors and creditors. This is necessarily based on assumptions and estimates in relation to the degree of contract completion and the expected profitability of each contract. The main estimates this year are the sum of £ 2,333,943 (2023: £2,241,547) included in debtors in respect of gross amounts due from contract customers and the sum of £682,257 (2023: £309,110) included in creditors in respect of gross amounts due to contract suppliers..

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Contract revenue recognition

Turnover is derived from ordinary activities and is stated after trade discounts and net of VAT

Revenue from long term contracts is recognised by the reference to the stage of completion of the contract. The stage of completion is determined by the amount of progress made on the work relating to the next stage payment, which is determined in the contract wording. A prudent level of profit attributable to the contract activity is recognised if the final outcome of such contracts can be reliably assessed. An expected loss on a contract progress are shown in creditors, and the amount by which the turnover is in excess of payments on account is included within debtors.

Tax

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2024

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and Machinery

10% reducing balance

Fixtures and fittings

33% straight line

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

straight line over 10 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2024

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

15,510,231

17,060,640

The analysis of the company's turnover for the year by class of business is as follows:

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2024

2024
£

2023
£

Fire security systems

15,510,231

17,060,640

The analysis of the company's turnover for the year by market is as follows:

2024
£

2023
£

UK

15,510,231

17,060,640

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Miscellaneous other operating income

-

56,466

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2024
£

2023
£

Loss on disposal of tangible assets

(3,096)

(2,431)

6

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

45,502

17,058

Operating lease expense - plant and machinery

301,962

245,923

Loss on disposal of property, plant and equipment

3,096

2,431

7

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

332

-

8

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

1,169

2,911

Interest expense on other finance liabilities

-

3,194

1,169

6,105

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2024

9

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

1,823,582

1,877,904

Social security costs

215,956

210,136

Pension costs, defined contribution scheme

59,898

54,486

Other employee expense

8,928

7,528

2,108,364

2,150,054

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Directors

3

4

Staff

34

34

37

38

10

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

29,643

15,000


 

11

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

-

(51,000)

UK corporation tax adjustment to prior periods

(31,500)

-

(31,500)

(51,000)

Deferred taxation

Arising from origination and reversal of timing differences

(4,984)

2,249

Arising from changes in tax rates and laws

-

306

Total deferred taxation

(4,984)

2,555

Tax receipt in the income statement

(36,484)

(48,445)

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2024

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 22.01%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

919,856

667,176

Corporation tax at standard rate

229,964

146,845

Decrease in UK and foreign current tax from adjustment for prior periods

(31,500)

-

Tax decrease from effect of capital allowances and depreciation

-

(511)

Effect of expense not deductible in determining taxable profit (tax loss)

7,834

3,427

Tax decrease arising from group relief

(242,782)

(147,501)

Deferred tax expense from unrecognised tax loss or credit

-

4,014

Deferred tax expense relating to changes in tax rates or laws

-

306

Tax decrease from effect of adjustment in research and development tax credit

-

(55,025)

Total tax credit

(36,484)

(48,445)

Deferred tax has been measured at the rate it is expected to reverse, being 25%.

Deferred tax

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2024

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Fixed asset timing differences

-

5,424

Short term timing differences

2,891

-

2,891

5,424

2023

Asset
£

Liability
£

Fixed asset timing differences

-

10,408

Short term timing differences

2,891

-

2,891

10,408

12

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 October 2023

184,373

184,373

At 30 September 2024

184,373

184,373

Amortisation

At 1 October 2023

8,437

8,437

Amortisation charge

27,916

27,916

At 30 September 2024

36,353

36,353

Carrying amount

At 30 September 2024

148,020

148,020

At 30 September 2023

175,936

175,936

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2024

13

Tangible assets

Fixtures and fittings
£

Total
£

Cost or valuation

At 1 October 2023

58,094

58,094

Additions

745

745

Disposals

(6,502)

(6,502)

At 30 September 2024

52,337

52,337

Depreciation

At 1 October 2023

16,465

16,465

Charge for the year

17,585

17,585

Eliminated on disposal

(3,407)

(3,407)

At 30 September 2024

30,643

30,643

Carrying amount

At 30 September 2024

21,694

21,694

At 30 September 2023

41,630

41,630

14

Stocks

2024
£

2023
£

Other inventories

18,778

21,372

15

Debtors

Current

Note

2024
£

2023
£

Trade debtors

 

3,064,087

2,590,934

Amounts owed by related parties

23

238,335

819,526

Other debtors

 

1,016,080

729,053

Prepayments

 

37,569

177,483

Gross amount due from customers for contract work

 

705,932

1,063,899

   

5,062,003

5,380,895

16

Cash and cash equivalents

2024
£

2023
£

Cash at bank

108,196

367,819

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2024

17

Creditors

Note

2024
£

2023
£

Due within one year

 

Trade creditors

 

1,144,551

3,101,730

Social security and other taxes

 

125,146

88,655

Other payables

 

10,652

8,045

Accruals

 

816,672

375,253

Income tax liability

11

-

103,655

 

2,097,021

3,677,338

18

Provisions for liabilities

Deferred tax
£

Total
£

At 1 October 2023

7,517

7,517

Additional provisions

(4,984)

(4,984)

At 30 September 2024

2,533

2,533

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £59,898 (2023 - £54,486).

20

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

950

950

950

950

       

21

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

 

Circum Fire Engineering Ltd

Notes to the Financial Statements for the Year Ended 30 September 2024

2024
£

2023
£

Not later than one year

36,858

30,259

Later than one year and not later than five years

41,073

50,707

77,931

80,966

22

Financial guarantee contracts

The company's assets have been pledged as security for a debenture given by Rockpool (Security Trustee) Limited to an intermediate parent company in the Group.

The company's assets have been secondly pledged as security for a debenture given by Ares Management Limited to an intermediate parent company in the Group.

23

Related party transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

24

Parent and ultimate parent undertaking

The company's immediate parent is EA-RS Fire Engineering Limited, incorporated in the United Kingdom.

 The ultimate parent is EA-RS Fire Engineering Group Limited, incorporated in the United Kingdom.

  These financial statements are available upon request from 4 Swanbridge Industrial Park, Black Croft Road, Witham, Essex, CM8 3YN.