Company Registration No. 09092759 (England and Wales)
SENTINEL CONTRACTING PLC
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SENTINEL CONTRACTING PLC
COMPANY INFORMATION
Directors
Mr L Galley
Mr M Stewart
Mr P Walker
Secretary
Mr R Mullaly
Company number
09092759
Registered office
Matrix House
12-16 Lionel Road
Canvey Island
Essex
SS8 9DE
Auditor
Maynard Heady LLP
Matrix House
12-16 Lionel Road
Canvey Island
Essex
SS8 9DE
Business address
Unit 2a Guildprime Business Centre
Southend Road
Billericay
Essex
CM11 2PZ
SENTINEL CONTRACTING PLC
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
SENTINEL CONTRACTING PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Principal activities

The principal activity of the company continued to be that of commercial painting and decorating and passive fire protection.

Review of the business

The directors are pleased with the performance of the company for 2024 and believe that the results are encouraging given the current economic climate.

Principal risks and uncertainties

The company's principal risks are that of rising materials prices throughout the year and the increase in inflation and interest rates. However, the company believes it is well placed financially and operationally to deal with these obstacles.

Development and performance

The company is committed to providing the highest quality standards whilst ensuring that safety, innovation, and sustainability are all given the upmost consideration.

Key performance indicators

As noted on page 7, the company’s profit before tax for the year was £219,723 (2023 - £25,863), and its net profit/(loss) after tax amounted to £147,585 (2023 – £10,759).

 

All the company’s key performance indicators remain satisfactory, and the balance sheet shows the company to be in a healthy position.

On behalf of the board

Mr M Stewart
Director
26 June 2025
SENTINEL CONTRACTING PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr L Galley
Mr M Stewart
Mr P Walker
Auditor

In accordance with the company's articles, a resolution proposing that Maynard Heady LLP be reappointed as auditor of the company will be put at a General Meeting.

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.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
Mr M Stewart
Director
26 June 2025
SENTINEL CONTRACTING PLC
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

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:

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.

SENTINEL CONTRACTING PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SENTINEL CONTRACTING PLC
- 4 -
Opinion

We have audited the financial statements of Sentinel Contracting plc (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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:

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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

SENTINEL CONTRACTING PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF SENTINEL CONTRACTING PLC
- 5 -
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 and 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:

 

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.

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.

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities including those leading to material misstatement in the financial statements or non-compliance with laws and regulations. This risk increases the more that compliance with a law and regulation is removed from the events and transactions reflected in the financial statements as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

SENTINEL CONTRACTING PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF SENTINEL CONTRACTING PLC
- 6 -

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Stephanie Caten FCA CTA (Senior Statutory Auditor)
For and on behalf of Maynard Heady LLP
26 June 2025
Chartered Accountants
Statutory Auditor
Matrix House
12-16 Lionel Road
Canvey Island
Essex
SS8 9DE
SENTINEL CONTRACTING PLC
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
2
9,542,066
13,898,029
Cost of sales
(8,390,855)
(12,959,388)
Gross profit
1,151,211
938,641
Administrative expenses
(926,789)
(910,645)
Operating profit
3
224,422
27,996
Interest payable and similar expenses
6
(4,699)
(2,133)
Profit before taxation
219,723
25,863
Tax on profit
7
(72,138)
(36,622)
Profit/(loss) for the financial year
147,585
(10,759)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SENTINEL CONTRACTING PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
£
£
Profit/(loss) for the year
147,585
(10,759)
Other comprehensive income
-
-
Total comprehensive income for the year
147,585
(10,759)
SENTINEL CONTRACTING PLC
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
8
-
0
6,105
Tangible assets
9
59,569
61,059
59,569
67,164
Current assets
Stocks
10
824,434
2,033,402
Debtors
11
795,412
610,561
Cash at bank and in hand
10,095
473,468
1,629,941
3,117,431
Creditors: amounts falling due within one year
12
(934,415)
(2,576,848)
Net current assets
695,526
540,583
Total assets less current liabilities
755,095
607,747
Creditors: amounts falling due after more than one year
13
(11,369)
(14,897)
Provisions for liabilities
Deferred tax liability
16
14,892
11,601
(14,892)
(11,601)
Net assets
728,834
581,249
Capital and reserves
Called up share capital
18
50,000
50,000
Profit and loss reserves
678,834
531,249
Total equity
728,834
581,249
The financial statements were approved by the board of directors and authorised for issue on 26 June 2025 and are signed on its behalf by:
Mr M Stewart
Director
Company registration number 09092759 (England and Wales)
SENTINEL CONTRACTING PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
50,000
542,008
592,008
Year ended 31 December 2023:
Loss and total comprehensive income
-
(10,759)
(10,759)
Balance at 31 December 2023
50,000
531,249
581,249
Year ended 31 December 2024:
Profit and total comprehensive income
-
147,585
147,585
Balance at 31 December 2024
50,000
678,834
728,834
SENTINEL CONTRACTING PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
21
(344,007)
573,737
Interest paid
(4,699)
(2,133)
Income taxes paid
(90,758)
(57,338)
Net cash (outflow)/inflow from operating activities
(439,464)
514,266
Investing activities
Proceeds from disposal of intangibles
-
0
(1,429)
Purchase of tangible fixed assets
(20,373)
(33,169)
Proceeds from disposal of tangible fixed assets
-
0
3,229
Net cash used in investing activities
(20,373)
(31,369)
Financing activities
Repayment of bank loans
-
0
(158,925)
Payment of finance leases obligations
(3,536)
18,003
Net cash used in financing activities
(3,536)
(140,922)
Net (decrease)/increase in cash and cash equivalents
(463,373)
341,975
Cash and cash equivalents at beginning of year
473,468
131,493
Cash and cash equivalents at end of year
10,095
473,468
SENTINEL CONTRACTING PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Sentinel Contracting plc is a private company limited by shares incorporated in England and Wales. The registered office is Matrix House, 12-16 Lionel Road, Canvey Island, Essex, SS8 9DE.

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.

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

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

 

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which 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.

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 are recoverable.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 3 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

SENTINEL CONTRACTING PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.5
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:

Plant and machinery
20% Straight line
Fixtures, fittings and equipment
20% Straight line
Motor vehicles
20% Straight line

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.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

SENTINEL CONTRACTING PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.8
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.

1.9
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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

SENTINEL CONTRACTING PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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.

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.

1.12
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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
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.

2
Turnover
2024
2023
£
£
Turnover analysed by class of business
Painting and fire protection
9,542,066
13,898,029
SENTINEL CONTRACTING PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
3
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
21,863
14,132
Amortisation of intangible assets
6,105
24,420
(Profit)/loss on disposal of intangible assets
-
1,429
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
15
14

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
855,122
785,006
Social security costs
58,021
45,983
Pension costs
10,223
11,370
923,366
842,359
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
270,608
271,046
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
120,000
120,000
SENTINEL CONTRACTING PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
6
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
3,230
237
Other finance costs:
Interest on finance leases and hire purchase contracts
1,469
413
Other interest
-
0
1,483
4,699
2,133
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
68,847
36,940
Deferred tax
Origination and reversal of timing differences
3,291
(318)
Total tax charge
72,138
36,622

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
219,723
25,863
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
54,931
6,078
Tax effect of expenses that are not deductible in determining taxable profit
14,080
36,282
Depreciation on assets not qualifying for tax allowances
5,466
3,392
Capital allowances claimed
(5,630)
(8,628)
Deferred tax
3,291
(317)
Loss on sale of fixed assets
-
0
343
Marginal relief
-
0
(528)
Taxation charge for the year
72,138
36,622
SENTINEL CONTRACTING PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
8
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
73,260
Amortisation and impairment
At 1 January 2024
67,155
Amortisation charged for the year
6,105
At 31 December 2024
73,260
Carrying amount
At 31 December 2024
-
0
At 31 December 2023
6,105

More information on impairment movements in the year is given in note .

9
Tangible fixed assets
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024
22,872
43,616
26,576
93,064
Additions
1,398
18,975
-
0
20,373
At 31 December 2024
24,270
62,591
26,576
113,437
Depreciation and impairment
At 1 January 2024
10,086
16,050
5,869
32,005
Depreciation charged in the year
4,852
11,697
5,314
21,863
At 31 December 2024
14,938
27,747
11,183
53,868
Carrying amount
At 31 December 2024
9,332
34,844
15,393
59,569
At 31 December 2023
12,786
27,566
20,707
61,059
10
Stocks
2024
2023
£
£
Work in progress
819,434
2,028,402
Finished goods and goods for resale
5,000
5,000
824,434
2,033,402
SENTINEL CONTRACTING PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
313,986
573,257
Other debtors
481,426
28,757
Prepayments and accrued income
-
0
8,547
795,412
610,561
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
15
3,098
3,106
Trade creditors
473,194
1,629,441
Corporation tax
79,170
101,081
Other taxation and social security
38,627
33,149
Other creditors
225,491
735,332
Accruals and deferred income
114,835
74,739
934,415
2,576,848
13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
15
11,369
14,897
14
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
795,412
595,493
Carrying amount of financial liabilities
Measured at amortised cost
827,987
2,457,515
15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
3,098
3,106
In two to five years
11,369
14,897
14,467
18,003
SENTINEL CONTRACTING PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
15
Finance lease obligations
(Continued)
- 20 -

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. 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 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

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
14,892
11,601
2024
Movements in the year:
£
Liability at 1 January 2024
11,601
Charge to profit or loss
3,291
Liability at 31 December 2024
14,892

The amount of the net reversal of deferred tax expected to occur next year is £2,979 relating to the reversal of existing timing differences on tangible fixed assets.

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
10,223
11,370

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.

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000
SENTINEL CONTRACTING PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
19
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Other related parties
19,662
13,734
284,720
36,000

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Other related parties
481,426
22,236
20
Ultimate controlling party

Sentinel Contracting Group Limited is the ultimate controlling party.

21
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit/(loss) after taxation
147,585
(10,759)
Adjustments for:
Taxation charged
72,138
36,622
Finance costs
4,699
2,133
(Gain)/loss on disposal of intangible assets
-
1,429
Amortisation and impairment of intangible assets
6,105
24,420
Depreciation and impairment of tangible fixed assets
21,863
14,132
Movements in working capital:
Decrease in stocks
1,208,968
83,463
Increase in debtors
(184,851)
(212,460)
(Decrease)/increase in creditors
(1,620,514)
634,757
Cash (absorbed by)/generated from operations
(344,007)
573,737
SENTINEL CONTRACTING PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
22
Analysis of changes in net funds/(debt)
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
473,468
(463,373)
10,095
Lease liabilities
(18,003)
3,536
(14,467)
455,465
(459,837)
(4,372)
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