REGISTERED NUMBER: |
REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE PERIOD 1 MARCH 2024 TO 31 AUGUST 2024 |
FOR |
SOIL SCIENCE LIMITED |
REGISTERED NUMBER: |
REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE PERIOD 1 MARCH 2024 TO 31 AUGUST 2024 |
FOR |
SOIL SCIENCE LIMITED |
SOIL SCIENCE LIMITED (REGISTERED NUMBER: 12425259) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE PERIOD 1 MARCH 2024 TO 31 AUGUST 2024 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Report of the Independent Auditors | 3 |
Profit and Loss Account | 7 |
Balance Sheet | 8 |
Statement of Changes in Equity | 9 |
Notes to the Financial Statements | 10 |
SOIL SCIENCE LIMITED |
COMPANY INFORMATION |
FOR THE PERIOD 1 MARCH 2024 TO 31 AUGUST 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
Batchworth Lock House |
99 Church Street |
Rickmansworth |
WD3 1JJ |
SOIL SCIENCE LIMITED (REGISTERED NUMBER: 12425259) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 MARCH 2024 TO 31 AUGUST 2024 |
The directors present their report with the financial statements of the company for the period 1 March 2024 to 31 August 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the period under review was that of providing soil stabilisation services and undertaking other civil engineering projects. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 March 2024 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Report of the Directors 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; |
- | 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Cox Costello & Horne Partners LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SOIL SCIENCE LIMITED |
Opinion |
We have audited the financial statements of Soil Science Limited (the 'company') for the period ended 31 August 2024 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity 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 31 August 2024 and of its loss for the period 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit: |
- the information given in the Report of the Directors for the financial period for which the financial statements are prepared is |
consistent with the financial statements; and |
- the Report of the Directors has been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors. |
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; or |
- | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SOIL SCIENCE LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SOIL SCIENCE LIMITED |
Auditors' 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 a Report of the Auditors 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: |
We designed procedures in line with our responsibilities outlined above, to detect material misstatements in respect of irregularities, including fraud. |
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management; and via inspection of the company's regulatory and legal correspondence. |
We discussed with those charged with governance and other management the policies and procedures regarding |
compliance with laws and regulations. |
We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company. |
The potential effect of these laws and regulations on the financial statements varies considerably. |
Firstly, the company is subject to laws and regulations that directly affect the financial statements, including: the |
company's constitution, relevant financial reporting standards; company law and tax legislation and we assess the |
extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. |
Secondly the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an effect: laws and regulations relevant to the construction sector employment legislation; health and safety legislation; data protection legislation; anti-bribery and corruption legislation. |
International Auditing Standards (UK) limit the required procedures to identify non-compliance with these laws and |
regulations, and no procedures over and above those already noted are required. These limited procedures did not |
identify any actual or suspected non-compliance with laws and regulations that could have a material impact on the |
financial statements. |
In relation to fraud, we performed the following specific procedures in addition to those already noted: |
- Challenging assumptions made by management in its significant accounting estimates; - Identifying and testing journal entries, during the period end and up to the date of signing the audit report, in particular any entries posted with unusual nominal ledger account combinations, journal entries crediting cash or any revenue |
account, and journal entries posted by senior management; |
- Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud; and |
- Ensuring that testing undertaken on both the performance statement and the Balance Sheet includes a number of |
items selected on a random basis. |
These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with International Auditing Standards (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SOIL SCIENCE LIMITED |
Other matters |
Without modifying our opinion, we draw attention to Note 6 to the financial statements, which describes a prior year adjustment made to intangible assets. This adjustment was necessary to align the recognition of the asset with the companies accounting policy. |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
Batchworth Lock House |
99 Church Street |
Rickmansworth |
WD3 1JJ |
SOIL SCIENCE LIMITED (REGISTERED NUMBER: 12425259) |
PROFIT AND LOSS ACCOUNT |
FOR THE PERIOD 1 MARCH 2024 TO 31 AUGUST 2024 |
Period | Year Ended |
1.3.24 to 31.8.24 | 29.2.24 |
as restated |
Notes | £ | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
1,565,051 | 2,988,860 |
OPERATING LOSS | 5 | ( |
) | ( |
) |
Interest payable and similar expenses |
LOSS BEFORE TAXATION | ( |
) | ( |
) |
Tax on loss | ( |
) |
LOSS FOR THE FINANCIAL PERIOD | ( |
) | ( |
) |
SOIL SCIENCE LIMITED (REGISTERED NUMBER: 12425259) |
BALANCE SHEET |
31 AUGUST 2024 |
31.8.24 | 29.2.24 |
as restated |
Notes | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 7 |
Tangible assets | 8 |
CURRENT ASSETS |
Stocks |
Debtors | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES | ( |
) | ( |
) |
CREDITORS |
Amounts falling due after more than one year | 11 |
NET LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital |
Retained earnings | ( |
) | (865,698 | ) |
( |
) | ( |
) |
The financial statements were approved by the Board of Directors and authorised for issue on |
SOIL SCIENCE LIMITED (REGISTERED NUMBER: 12425259) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 1 MARCH 2024 TO 31 AUGUST 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 March 2023 | ( |
) | ( |
) |
Changes in equity |
Deficit for the year | - | (505,176 | ) | (505,176 | ) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 29 February 2024 | ( |
) | ( |
) |
Prior year adjustment | - | ( |
) | ( |
) |
As restated | ( |
) | ( |
) |
Changes in equity |
Deficit for the period | - | (215,065 | ) | (215,065 | ) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 August 2024 | ( |
) | ( |
) |
SOIL SCIENCE LIMITED (REGISTERED NUMBER: 12425259) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE PERIOD 1 MARCH 2024 TO 31 AUGUST 2024 |
1. | STATUTORY INFORMATION |
Soil Science Limited is a private limited company incorporated in England and Wales. The company's registered address is 10 Goldsmith Way, Eliot Business Park, Nuneaton, Warwickshire CV10 7RJ. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going Concern |
The financial statements showed a loss before tax of £215,065 in the period and net liabilities of £1,070,763 at the balance sheet date. |
In making their assessment of the going concern status of the company, the directors have considered a period of not less than 12 months from the date of signing of these financial statements. The company meets its daily working capital requirements through its bank facilities and short-term private loans. |
The Company has received a letter of support from its new parent company, confirming their current intention to provide the necessary financial assistance to ensure the Company's ability to continue as a going concern for the foreseeable future. While the letter is not legally binding, the directors have no reason to believe that the support will not be forthcoming if required. |
Since the period-end, the Company has seen an improvement in trading performance, with turnover of £9,380,957 and profit before tax of £34,248, based on unaudited management accounts for the eight-month period to April 2025. Month by month this has varied and so the overall analysis is that the company is now in a break-even position. It has still been a relatively short period since the GRS Group acquired the company and so financial efficiencies are still being worked on but there is continued support from the group and also there directors maintain that large projects continue to be picked up and there is further room for growth due to the future usage of the company's patents. This positive trend supports the directors' expectation of a return to profitability. |
The wider group has also implemented a number of strategic initiatives aimed at driving growth and improving efficiency, enhanced cost control measures, and leveraging group-wide relationships to secure additional work through cross-selling opportunities with Soil Science Limited having access to a broader client base. |
The long-term success of the business is dependent on it continuing to increase its turnover, effective cost management and careful cash flow management. The directors are confident that this can be achieved and thus the company continues to adopt the going concern basis in preparing its financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Rendering of services |
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
- the amount of revenue can be measured reliably: |
- it is probable that the company will receive the consideration due under the contract; |
- the stage of completion of the contract at the end of the reporting period can be measured reliably; and |
- the costs incurred and the costs to complete the contract can be measured reliably. |
Goodwill |
Other intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
SOIL SCIENCE LIMITED (REGISTERED NUMBER: 12425259) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 MARCH 2024 TO 31 AUGUST 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Depreciation is provided at the following at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life. |
Plant and Machinery - 20-100% on cost |
Fixtures and Fittings - 50% on cost |
Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. |
Impairment of fixed assets |
Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. |
An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGU's). Non financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased. |
Stocks |
Stocks represent raw materials not purchased for a specific project that have not been allocated to a contract at the reporting date. They are valued at cost, unless the only option is to utilise them on loss making contracts in which case they are written off to 'profit or loss' |
Financial instruments |
a) Debtors |
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment. |
b) Creditors |
Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, 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. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment. |
c) Cash at bank and in hand |
Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with significant risk of change in value. |
d) Interest income |
Interest income is recognised in profit or loss using the effective interest method. |
SOIL SCIENCE LIMITED (REGISTERED NUMBER: 12425259) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 MARCH 2024 TO 31 AUGUST 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the profit or loss,Profit and Loss Account except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Research and Development Tax Relief |
Research and development tax relief is recognised in the period in which the associated expenditure was incurred, unless the quantum of the relief can not be reliably estimated. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Research and development costs are expensed in the period. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. |
Payments under operating leases are charged to the profit or loss on a straight line basis over the period of the lease. |
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset. |
Pension costs |
Defined contribution pension plan |
The company contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. |
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds. |
Contributions outstanding at the balance sheet date amounted to £0 (February 2024: £4,250). |
Change of accounting period |
The company has changed its period end from 29th February to 31st August for commercial reasons. The comparative amounts presented in the financial statements (including the related notes) are therefore not entirely comparable. |
SOIL SCIENCE LIMITED (REGISTERED NUMBER: 12425259) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 MARCH 2024 TO 31 AUGUST 2024 |
3. | CRITICAL ACCOUNTING 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. |
- Critical judgements |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities outlined below: |
- Goodwill amortisation |
Management reviews its estimate on goodwill amortisation at each reporting date, based on the expected useful life of the assets. Goodwilll is considered to have a finite useful life. If a reliable estimates of the useful life can not be made, the useful life shall not exceed ten years. |
- Impairment |
Management assesses the impairment of fixed assets subject to depreciation or amortisation whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered important that may trigger an impairment review include the following: changes in the manner of the use of the acquired assets or the strategy of the overall business, significant negative industry or economic trends, taking into account market knowledge, professional judgement and historical transactional comparable.Given the operating loss position of the company we have carried out a thorough review of the valuation of the fixed assets. Given the fact the assets are essential to the company's operation and have generated consistent revenue flows we have concluded an impairment is not necessary. |
4. | EMPLOYEES AND DIRECTORS |
The average number of employees during the period was |
5. | OPERATING LOSS |
The operating loss is stated after charging: |
Period |
1.3.24 |
to | Year Ended |
31.8.24 | 29.2.24 |
as restated |
£ | £ |
Depreciation - owned assets |
Goodwill amortisation |
Patents and licences amortisation |
6. | PRIOR YEAR ADJUSTMENT |
A prior year adjustment has been made to correct the accounting treatment of an intangible asset that was initially recognised on a payment basis, rather than in accordance with the entity's accounting policy of recognising intangible assets at cost. The asset in question was subject to a monthly instalment payment plan, and costs were previously capitalised incrementally as payments were made. On review, it was determined that the full cost of the asset should have been recognised at the inception of the agreement, with a corresponding liability for the outstanding consideration. |
As a result, the prior year financial statements have been restated to increase intangible asset and other creditors by £66,660 and to increase the amortisation charge for the year by £20,485. The restatement therefore affected the brought forward balances for intangible assets cost, accumulated amortisation, other creditors and reserves brought forward. |
SOIL SCIENCE LIMITED (REGISTERED NUMBER: 12425259) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 MARCH 2024 TO 31 AUGUST 2024 |
7. | INTANGIBLE FIXED ASSETS |
Patents and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 March 2024 |
and 31 August 2024 |
AMORTISATION |
At 1 March 2024 |
Amortisation for period |
At 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 29 February 2024 |
8. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
etc |
£ |
COST |
At 1 March 2024 |
Disposals | ( |
) |
At 31 August 2024 |
DEPRECIATION |
At 1 March 2024 |
Charge for period |
Eliminated on disposal | ( |
) |
At 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 29 February 2024 |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.8.24 | 29.2.24 |
as restated |
£ | £ |
Trade debtors |
Amounts recoverable on contract |
Other debtors |
SOIL SCIENCE LIMITED (REGISTERED NUMBER: 12425259) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 MARCH 2024 TO 31 AUGUST 2024 |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.8.24 | 29.2.24 |
as restated |
£ | £ |
Bank loans and overdrafts (see note 12) |
Hire purchase contracts (see note 13) |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Other creditors |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.8.24 | 29.2.24 |
as restated |
£ | £ |
Bank loans (see note 12) |
Hire purchase contracts (see note 13) |
12. | LOANS |
An analysis of the maturity of loans is given below: |
31.8.24 | 29.2.24 |
as restated |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
13. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
31.8.24 | 29.2.24 |
as restated |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
14. | SECURED DEBTS |
Wells Fargo Capital Finance (UK) Limited holds a charge over the assets of Soil Science Limited and the GRS Roadstone Group as security for the banking facilities provided. This charge forms part of the security arrangements in place to support the group’s ongoing financing and banking requirements. |
15. | CONTINGENT LIABILITIES |
Soil Science Limited is party to a group VAT registration and is therefore jointly and severally liable for the total VAT amounts due to HM Revenue and Customs by all group companies included within that registration. At the period end £4,162,000 VAT was due to HMRC in total across the group. |
SOIL SCIENCE LIMITED (REGISTERED NUMBER: 12425259) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 MARCH 2024 TO 31 AUGUST 2024 |
16. | ULTIMATE PARENT UNDERTAKING |
The result of the company are only consolidated into its ultimate parent undertaking GRS Roadstone Group limited, Unit 10 Goldsmith Way, Eliot Business Park, Nuneaton, Warwickshire, CV10 7RJ, these financial statements are available from Companies House. |