REGISTERED NUMBER: 02330115 (England and Wales) |
Total Security protection Limited |
Group Strategic Report, Directors' Report and |
Audited Consolidated Financial Statements for the Year Ended 31 October 2024 |
REGISTERED NUMBER: 02330115 (England and Wales) |
Total Security protection Limited |
Group Strategic Report, Directors' Report and |
Audited Consolidated Financial Statements for the Year Ended 31 October 2024 |
Total Security protection Limited (Registered number: 02330115) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 October 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Directors' Report | 4 |
Independent Auditors' Report | 6 |
Consolidated Statement of Income and Retained Earnings | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Financial Statements | 14 |
Total Security protection Limited |
Company Information |
for the Year Ended 31 October 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Emma Fraser FCA |
INDEPENDENT AUDITORS: |
Statutory Auditor |
Chartered Accountants |
Unit 1 The Cam Centre |
Wilbury Way |
Hitchin |
Hertfordshire |
SG4 0TW |
Total Security protection Limited (Registered number: 02330115) |
Group Strategic Report |
for the Year Ended 31 October 2024 |
Principal activity |
The principal activity of the group is installation and maintenance of specialist security and access control systems. |
REVIEW OF BUSINESS |
2023/24 has been another positive year for TSP group. We have increased our sales turnover as a group and continued to prosper, winning many new projects and onboarded numerous new clients. |
Our Board of Directors and leadership team have focussed on developing our people, systems and processes to allow us to continue expanding both in the UK, Europe and beyond. |
During this year we have continued to increase our presence in the North of England and Scotland, moving to a larger office in Leeds and building a sales and delivery team to support this region. We have also increased our presence in Ireland and appointed of a new In Country Director. |
The sectors we are strongest in (mainly Data Centre's) have continued to expand and we have capitalised on this growing both our delivery and support capabilities for these customers. There appears to be no slowing down of the expansion of the Data Centre sector, with them all predicting strong growth for the next 5 years plus. |
Our sales forecast for 2025 onwards is very strong with our sales pipeline predicting 20%+ year on year for the next two years. |
For the year ended 31 October 2024, at group level, turnover increased by £11m (43%), our GP margin across the group ended at 38% from 39% last year. The balance sheet value overall grew by £1.2m (25%). |
PRINCIPAL RISKS AND UNCERTAINTIES |
Our sales turnover is a combination of new project sales, existing customer small works and maintenance contracts. |
In the past our major projects were associated to the London construction industry but we have expanded this and in 23/24 our major projects have been across the UK and Europe. We have not lost any major customers during this period and most of our customers are continuing to spend on upgrades and improvements to their systems. Our maintenance contract base continues to grow and gives us a sustainable and recurring revenue stream. |
We have very few write-off's due to non-payment during this period. The vast majority of our customers are financially stable and good payers. We have a robust credit checking system and do not accept any new customers where we are unhappy with the credit rating. |
Our staff numbers increased during the period, recruiting a number of senior positions to support the increased growth of the business. |
Each month we produce a detailed financial report which is shared with the senior management team, this report includes the following; |
o Cash in bank |
o Cash flow forecast for the next 3 months |
o Detailed Profit & Loss |
o Profit & Loss forecast for the next 12 months |
o Aged debtor profile |
Total Security protection Limited (Registered number: 02330115) |
Group Strategic Report |
for the Year Ended 31 October 2024 |
FUTURE DEVELOPMENTS |
TSP continues to go from strength and strength. Our current services are seen as essential as we are providing security protection to data centres and other key buildings and companies. The service side of our business is continuing to grow and we continue to engage new customers and receive new orders. The situation is very fluid but we are managing our work flow and cash flow carefully, with sufficient cash reserves to see us through short and medium term scenarios. We currently have a very strong order book and our reputation puts us as one of the leading independent companies in our sector. |
SIGNED ON BEHALF OF THE BOARD BY:: |
Total Security protection Limited (Registered number: 02330115) |
Directors' Report |
for the Year Ended 31 October 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 October 2024. |
PRINCIPAL ACTIVITY |
installation and maintenance of specialist security and access control systems |
DIVIDENDS |
During the year interim dividend payments were made of £23.0865 per share totalling £704,139 during the year. |
FUTURE DEVELOPMENTS |
TSP continues to go from strength and strength. Our current services are seen as essential as we are providing security protection to data centres and other key buildings and companies. The service side of our business is continuing to grow and we continue to engage new customers and win long term framework agreements. We have sufficient cash reserves to see us through short and medium term scenarios. We currently have a very strong order book and our reputation puts us as one of the leading independent companies in our sector. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Total Security protection Limited (Registered number: 02330115) |
Directors' Report |
for the Year Ended 31 October 2024 |
AUDITORS |
The auditors, Bracey's Accountants (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
SIGNED ON BEHALF OF THE BOARD BY:: |
Independent Auditors' Report to the Members of |
Total Security protection Limited |
Opinion |
We have audited the financial statements of Total Security protection Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 October 2024 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 Group Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' 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 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 Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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. |
Independent Auditors' Report to the Members of |
Total Security protection Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
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 an Auditors' 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 |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
In identifying and addressing risk of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, our audit procedures performed included, but were not limited to the following: review of the financial statements and disclosures to underlying supporting documentation, obtained an understanding of laws and regulations that affect the company both directly in the financial statements and its operations, undertaking a walk through test of key controls that are in operation, review and enquiries into journal entries processed during the period under review, evaluation and consideration of areas where the potential for management bias exists, enquiries of management and key personnel, performance of analytical review and reviewing the findings of testing, review of costs, documents obtained and engaging in discussions to ensure consistency is evident in the findings documented. |
Our work was directed where management applies significant judgement within the financial statements - construction contract recognition. This involves estimating the outcome of a job so as to recognise revenue in line with the stage of completion of that job (with reference to costs incurred), this requires profitability within the job to be estimated reliably and reviewed/updated regularly. |
Our audit procedures to address specific risks related to construction contracts included, but were not limited to the following: |
- Evaluating the internal controls to prevent and detect fraud and revenue recognition |
- Testing the completeness and accuracy of cost estimates and other critical inputs to the percentage of completion calculation |
- Reviewing management's assumptions and estimates for bias or inconsistency |
- Performing detailed analytical procedures to identify unusual trends or significant variations in related costs and revenue |
- Reviewing post year end activity against estimations applied at the year end |
- Reviewing the outcome of the prior years projects and the accuracy of estimations applied |
Our audit did not identify any instances of fraud or irregularities that materially affect the financial statements. However, due to the inherent estimation risks in long term contracts, there is a risk that future results may differ from management's current estimates. We recommend that management continues to strengthen internal controls and monitor estimation processes to mitigate this inherent risk within construction contract accounting. |
There are inherent limitations in the audit procedures described above as irregularities in relation to fraud are by nature difficult to detect as it would likely have occurred through deliberate concealment and could involve collusion and deliberate misrepresentations. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non compliance with laws and regulations. |
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 Auditors' Report. |
Independent Auditors' Report to the Members of |
Total Security protection Limited |
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 Auditors' 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. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
Unit 1 The Cam Centre |
Wilbury Way |
Hitchin |
Hertfordshire |
SG4 0TW |
Total Security protection Limited (Registered number: 02330115) |
Consolidated Statement of Income and Retained Earnings |
for the Year Ended 31 October 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 | 36,927,309 | 25,797,271 |
Cost of sales | 23,013,467 | 15,683,055 |
GROSS PROFIT | 13,913,842 | 10,114,216 |
Administrative expenses | 11,382,583 | 8,580,583 |
OPERATING PROFIT | 6 | 2,531,259 | 1,533,633 |
Interest receivable and similar income | 25,733 | 21,702 |
2,556,992 | 1,555,335 |
Interest payable and similar expenses | 8 | 10,761 | - |
PROFIT BEFORE TAXATION | 2,546,231 | 1,555,335 |
Tax on profit | 9 | 642,004 | 263,608 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year | 4,698,007 | 4,099,618 |
Dividends | 11 | (704,139 | ) | (693,339 | ) |
RETAINED EARNINGS FOR THE GROUP AT END OF YEAR |
5,898,095 |
4,698,006 |
Profit attributable to: |
Owners of the parent | 1,904,227 | 1,291,727 |
Total Security protection Limited (Registered number: 02330115) |
Consolidated Balance Sheet |
31 October 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 12 | 186,819 | 149,228 |
Investments | 13 | - | - |
186,819 | 149,228 |
CURRENT ASSETS |
Stocks | 14 | 224,148 | 234,699 |
Debtors | 15 | 11,765,190 | 7,154,959 |
Cash at bank and in hand | 5,614,058 | 4,627,418 |
17,603,396 | 12,017,076 |
CREDITORS |
Amounts falling due within one year | 16 | 11,823,830 | 7,404,621 |
NET CURRENT ASSETS | 5,779,566 | 4,612,455 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,966,385 |
4,761,683 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(6,964 |
) |
(11,041 |
) |
PROVISIONS FOR LIABILITIES | 20 | (30,826 | ) | (22,136 | ) |
NET ASSETS | 5,928,595 | 4,728,506 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 30,500 | 30,500 |
Retained earnings | 22 | 5,898,095 | 4,698,006 |
SHAREHOLDERS' FUNDS | 5,928,595 | 4,728,506 |
The financial statements were approved by the Board of Directors and authorised for issue on 26 June 2025 and were signed on its behalf by: |
R W Parnell - Director |
Total Security protection Limited (Registered number: 02330115) |
Company Balance Sheet |
31 October 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,471,343 | 1,408,167 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Total Security protection Limited (Registered number: 02330115) |
Consolidated Cash Flow Statement |
for the Year Ended 31 October 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,333,125 | 2,238,133 |
Interest paid | (10,761 | ) | - |
Tax paid | (574,905 | ) | (322,085 | ) |
Net cash from operating activities | 1,747,459 | 1,916,048 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (77,317 | ) | (11,902 | ) |
Interest received | 25,733 | 21,702 |
Net cash from investing activities | (51,584 | ) | 9,800 |
Cash flows from financing activities |
Capital repayments in year | (5,096 | ) | (5,097 | ) |
Equity dividends paid | (704,139 | ) | (693,339 | ) |
Net cash from financing activities | (709,235 | ) | (698,436 | ) |
Increase in cash and cash equivalents | 986,640 | 1,227,412 |
Cash and cash equivalents at beginning of year |
2 |
4,627,418 |
3,400,006 |
Cash and cash equivalents at end of year | 2 | 5,614,058 | 4,627,418 |
Total Security protection Limited (Registered number: 02330115) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 October 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 2,546,231 | 1,555,335 |
Depreciation charges | 39,727 | 36,543 |
Finance costs | 10,761 | - |
Finance income | (25,733 | ) | (21,702 | ) |
2,570,986 | 1,570,176 |
Decrease/(increase) in stocks | 10,551 | (14,742 | ) |
Increase in trade and other debtors | (4,706,148 | ) | (567,525 | ) |
Increase in trade and other creditors | 4,457,736 | 1,250,224 |
Cash generated from operations | 2,333,125 | 2,238,133 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 October 2024 |
31.10.24 | 1.11.23 |
£ | £ |
Cash and cash equivalents | 5,614,058 | 4,627,418 |
Year ended 31 October 2023 |
31.10.23 | 1.11.22 |
£ | £ |
Cash and cash equivalents | 4,627,418 | 3,400,006 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.11.23 | Cash flow | At 31.10.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,627,418 | 986,640 | 5,614,058 |
4,627,418 | 986,640 | 5,614,058 |
Debt |
Finance leases | (17,157 | ) | 5,096 | (12,061 | ) |
(17,157 | ) | 5,096 | (12,061 | ) |
Total | 4,610,261 | 991,736 | 5,601,997 |
Total Security protection Limited (Registered number: 02330115) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 October 2024 |
1. | 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. |
2. | STATUTORY INFORMATION |
Total Security protection Limited is a |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are prepared in sterling, which is the functional currency of the entity. Amounts are rounded to the nearest £1. |
Going concern |
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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. |
Basis of consolidation |
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 October 2024. |
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group. |
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full. |
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements. |
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. |
Investments |
Investments comprise amounts held in wholly owned subsidiaries. There is no active market for these investments and therefore they are measured at cost less impairment. Where cost comprises foreign currencies these are converted using the rate at acquisition and are held at the historic converted rate. |
Judgement |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
The company accounts for long term contracts under FRS102, specifically using the percentage of costs incurred to arrive at a contract value - resulting in amounts payable or amounts recoverable on contracts - see revenue policy for more details. |
The nature of this involves significant judgement which can change as time progresses. The scale of this work covers large aspects of the financial statements and it is a key estimation area of the business. Management review this monthly taking in to account specific factors in the job to ensure that the long term contracts are accounted for in accordance with FRS102 in all aspects and the estimate applied is reasonable and supported. |
Total Security protection Limited (Registered number: 02330115) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
3. | ACCOUNTING POLICIES - continued |
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 group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group. |
The group 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 group's activities. |
Contract Revenue Recognition |
The company deals with long term contracts and in arriving at a value for these contracts the company uses the percentage of completion method with reference to the incurred costs on the job at that date against the total expected costs. This percentage is applied to the contract value and amounts invoiced are deducted from the calculation to arrive at either amounts payable on contracts (recorded in creditors) or amounts recoverable on contracts (recorded in debtors). The client performs these calculations monthly and continually reviews the details of each job when applying the estimate of costs expected, as the job progresses the most up to date knowledge of the job is applied which can vary each month. |
Tangible fixed 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 |
Leasehold Improvements | over lease term, 10 years |
Plant and Machinery | 25% reducing balance |
Motor vehicle | 25% reducing balance |
Furniture and Fittings | 25% reducing balance |
Government grants |
Grants relating to revenue are recognised in income on a systematic basis over the periods in which the business recognises related costs which the grant is intended to compensate. |
A grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which it becomes receivable. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using an average cost. |
At each reporting date, stocks are assessed for impairment. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit and or loss. |
Reversals of impairment losses are also recognised in profit or loss. |
Taxation |
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 group operates and generates taxable income. |
Total Security protection Limited (Registered number: 02330115) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
3. | ACCOUNTING POLICIES - continued |
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 year 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 |
Expenditure on research and development is written off in the year in which it is incurred. Research and Development tax credits are calculated in accordance with the prevailing tax statutes and are recognised within the financial statements as an appropriate reduction in the tax charge. Due to the timings and claims made the credit does not always get recorded in the relevant period as it is recorded on a receipt basis of relevant claims. |
Foreign currencies |
Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured. |
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated. |
Leases |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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. |
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. |
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. |
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability. |
Pension costs and other post-retirement benefits |
Defined contribution pension obligation. |
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group 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. |
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. |
Total Security protection Limited (Registered number: 02330115) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
3. | ACCOUNTING POLICIES - continued |
Trade debtors |
Trade debtors are amounts due from customers for goods and services performed in the ordinary course of business. |
Trade debtors are recognised at the transaction price. 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. The provision is written off to the profit and loss account in the relevant period. |
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 group 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 at the transaction price. |
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. |
Dividends |
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared. |
Share based payments |
Equity settled share based payments are measured at fair value at the date of grant. The fair value determined at the grant date is expensed on a straight line basis over the vesting period, where material. This is based on the estimate of shares that will eventually vest and their respective conditions. A corresponding adjustment is made to equity where material. |
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Sale of goods and services | 36,927,309 | 25,797,271 |
36,927,309 | 25,797,271 |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 32,332,875 | 22,303,397 |
Europe | 4,274,720 | 2,513,121 |
Rest of the world | 319,714 | 980,753 |
36,927,309 | 25,797,271 |
Total Security protection Limited (Registered number: 02330115) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 7,654,668 | 5,930,054 |
Social security costs | 901,696 | 728,781 |
Other pension costs | 402,014 | 299,639 |
8,958,378 | 6,958,474 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Sales, Service and Administration | 122 | 101 |
Directors | 7 | 7 |
The average number of employees by undertakings that were proportionately consolidated during the year was 4 (2023 - 8 ) . |
2024 | 2023 |
£ | £ |
Directors' remuneration | 1,007,041 | 1,002,685 |
Directors' pension contributions to money purchase schemes | 185,489 | 147,088 |
The number of directors to whom retirement benefits were accruing was as follows: |
Defined benefit schemes | 6 | 6 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 261,840 | 253,664 |
Pension contributions to money purchase schemes | 7,852 | 7,854 |
There were a total of 5 Directors' (2023: 4) that received total emoluments (including pension contributions) in excess of £200,000. |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 120,473 | 114,861 |
Other operating leases | 436,592 | 290,229 |
Depreciation - owned assets | 39,726 | 36,542 |
7. | AUDITORS' REMUNERATION |
2024 | 2023 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
31,814 |
24,896 |
Total Security protection Limited (Registered number: 02330115) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Other interest payable | 10,761 | - |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 621,341 | 405,590 |
Over/under provision in py | - | (130,917 | ) |
Total current tax | 621,341 | 274,673 |
Deferred tax | 20,663 | (11,065 | ) |
Tax on profit | 642,004 | 263,608 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 2,546,231 | 1,555,335 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
636,558 |
388,834 |
Effects of: |
Expenses not deductible for tax purposes | 15,860 | 10,244 |
Capital allowances in excess of depreciation | (9,613 | ) | - |
Depreciation in excess of capital allowances | - | 5,235 |
Utilisation of tax losses | (42,922 | ) | - |
Foreign tax impact | 8,349 | (10,294 | ) |
Tax increase (decrease) from other short term timing differences | 13,109 | 11,571 |
UK deferred tax expense (credit) | 20,663 | (11,065 | ) |
Adjusted to corporation tax charge in previous years from R&D claims | - | (130,917 | ) |
Total tax charge | 642,004 | 263,608 |
10. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of 1 each |
Interim | 704,139 | 693,339 |
Total Security protection Limited (Registered number: 02330115) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
12. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Short | Plant and | and |
leasehold | machinery | fittings |
£ | £ | £ |
COST |
At 1 November 2023 | 79,593 | 432 | 90,745 |
Additions | - | - | 77,317 |
At 31 October 2024 | 79,593 | 432 | 168,062 |
DEPRECIATION |
At 1 November 2023 | 14,772 | 117 | 49,576 |
Charge for year | 7,959 | 79 | 20,426 |
At 31 October 2024 | 22,731 | 196 | 70,002 |
NET BOOK VALUE |
At 31 October 2024 | 56,862 | 236 | 98,060 |
At 31 October 2023 | 64,821 | 315 | 41,169 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 November 2023 | 82,353 | 2,371 | 255,494 |
Additions | - | - | 77,317 |
At 31 October 2024 | 82,353 | 2,371 | 332,811 |
DEPRECIATION |
At 1 November 2023 | 40,432 | 1,369 | 106,266 |
Charge for year | 10,480 | 782 | 39,726 |
At 31 October 2024 | 50,912 | 2,151 | 145,992 |
NET BOOK VALUE |
At 31 October 2024 | 31,441 | 220 | 186,819 |
At 31 October 2023 | 41,921 | 1,002 | 149,228 |
Total Security protection Limited (Registered number: 02330115) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
12. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Short | and | Motor |
leasehold | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 November 2023 |
Additions |
At 31 October 2024 |
DEPRECIATION |
At 1 November 2023 |
Charge for year |
At 31 October 2024 |
NET BOOK VALUE |
At 31 October 2024 |
At 31 October 2023 |
Included within motor vehicles are amounts held under finance lease contracts with a net book of £12,378 (2023:£16,504) and depreciation charged of £4,126 (2023: £5,501). |
13. | FIXED ASSET INVESTMENTS |
Company |
Unlisted |
investments |
£ |
COST |
At 1 November 2023 |
and 31 October 2024 |
NET BOOK VALUE |
At 31 October 2024 |
At 31 October 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 77 Lower Camden Street, Dublin 2, Ireland |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 4 Century Court, Tolpits Lane, Watford, England, WD18 9RS |
Nature of business: |
% |
Class of shares: | holding |
This company has been provided a subsidiary guarantee under S479 Companies Act 2006, see related party note for more details. |
Total Security protection Limited (Registered number: 02330115) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
13. | FIXED ASSET INVESTMENTS - continued |
Registered office: Room 747, 7/F, Star House, 3 Salisbury Road, Tsim Sha Tsui,Hong Kong, China |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Friedrich-Ebert-Anlage 36 60325 Fankfurt am Main |
Nature of business: |
% |
Class of shares: | holding |
This company is an intermediate subsidiary, directly owned 100% by Total Security Protection (Europe) Limited. |
14. | STOCKS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Finished goods | 224,148 | 234,699 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 9,194,662 | 5,641,503 |
Provision for bad debts | (190,099 | ) | (2,939 | ) | (190,099 | ) | (2,939 | ) |
Amounts owed by group undertakings | 47,515 | - |
Other debtors | 178,221 | 201,550 |
Owed by/(from) group 1 | (47,515 | ) | 95,918 | - | - |
Amounts recoverable on contrac | 2,016,562 | 972,801 | 1,625,781 | 908,794 |
Deferred tax asset | - | 11,973 | - | - |
Prepayments | 565,844 | 234,153 |
11,765,190 | 7,154,959 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Hire purchase contracts (see note 18) | 5,097 | 6,116 |
Trade creditors | 4,496,378 | 3,376,153 |
Amounts owed to group undertakings | - | 95,918 |
Tax | 322,234 | 287,771 |
Social security and other taxes | 252,374 | 202,802 |
VAT | 817,082 | 813,299 | 749,999 | 753,997 |
Other creditors | 3,827,658 | 1,036,187 |
Pension contributions unpaid | 10,676 | 34,406 | 10,967 | 33,906 |
Directors' current accounts | 34,576 | 21,337 | 34,576 | 21,338 |
Accrued expenses | 895,972 | 707,486 |
Deferred income | 1,161,783 | 823,146 |
11,823,830 | 7,404,621 |
Total Security protection Limited (Registered number: 02330115) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued |
Other creditors include amounts payable on contracts of £3,815,746 (2023: £959,748). |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Hire purchase contracts (see note 18) | 6,964 | 11,041 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 5,097 | 6,116 |
Between one and five years | 6,964 | 11,041 |
12,061 | 17,157 |
Company |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
The group commitment of non-cancellable operating leases is the same as the company. |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Hire purchase contracts | 12,061 | 17,157 | 12,061 | 17,157 |
The National Westminster Bank PLC holds a mortgage debenture dated 11 December 1997. All monies now due or hereafter to become due from the Company to the Bank upon any account whatsoever. |
The amounts held under finance leases are secured on the relevant asset held. |
20. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax | 30,826 | 22,136 | 30,574 | 22,136 |
Total Security protection Limited (Registered number: 02330115) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
20. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 November 2023 | 22,136 |
Charge to Income Statement during year | 8,690 |
Balance at 31 October 2024 | 30,826 |
Company |
Deferred |
tax |
£ |
Balance at 1 November 2023 |
Charge to Income Statement during year |
Balance at 31 October 2024 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | 1 | 30,500 | 30,500 |
22. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 November 2023 | 4,698,007 |
Profit for the year | 1,904,227 |
Dividends | (704,139 | ) |
At 31 October 2024 | 5,898,095 |
Company |
Retained |
earnings |
£ |
At 1 November 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 October 2024 |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
At the balance sheet date the company owed £34,576 to (2023: £21,338) the Directors. There are no terms for repayment. |
Total Security protection Limited (Registered number: 02330115) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
24. | 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. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements of the group. |
Company |
The amounts disclosed within debtors and creditors of the company represent balances due/owed at the year end by group entities. Amounts that arise under normal trading terms are not charged interest. Loans between group companies attract 5% per annum interest and there are no fixed terms for repayment on these amounts. |
PARENT DECLARATION OF GUARANTEE UNDER SECTION 479 COMPANIES ACT 2006 |
This company has provided a parent company guarantee under S479C of the Companies Act 2006 to guarantee all outstanding liabilities for the period ended 31 October 2024, of its wholly owned subsidiary company, Total Perimeter Protection Ltd (Company no: 13772751). On that basis Total Perimeter Protection Ltd (Company no:13772751) is exempt from audit under S479A of the Companies Act 2006. |
Key Management |
Key management of the group is considered to be the Directors of the company only, in the current and prior year. |
25. | ULTIMATE CONTROLLING PARTY |
The controlling party is R W Parnell. |
26. | SHARE-BASED PAYMENT TRANSACTIONS |
EMI - Scheme details and movements |
The company operates an Approved EMI share option plan. The majority Shareholder and Director has absolute discretion as to the selection of the persons to whom an option is granted by the company. The options are granted with a fixed exercise price and are exercisable in line with the terms set out in the Plan Rules. |
Options which have been granted vest in line with the vesting schedule communicated to each option holder at the date of the grant. |
Exercise of options will only occur when the exercise conditions have been fulfilled, namely a change in ownership. |
No provision is made in the financial statements due to the immaterial cost. |
27. | PENSION |
The group operates a defined pension contribution scheme. The pension cost charge for the year represents contributions payable by the group to the scheme(s) and amounted to £402,014 (2023: £299,639). |
Contributions totalling £10,676 (2023: £34,406) were payable to the scheme(s) at the year end and are included within creditors. |