Registration number:
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Gem Environmental Building Services Limited
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Brebners
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Gem Environmental Building Services Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Income Statement |
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Statement of Financial Position |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Gem Environmental Building Services Limited
Company Information
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Directors |
K W Harris G S Sidhu M Barney |
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Registered office |
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Auditor |
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Gem Environmental Building Services Limited
Strategic Report for the Year Ended 30 June 2025
The directors present their strategic report for the year ended 30 June 2025.
Principal activity
The principal activity of the company is that of building services, repairs and maintenance and the installation and maintenance of metering and diagnostic software solutions to meet the latest Energy Act legislation for all heat network providers.
For the year under review GEM has continued building on its core skills to become a pioneer provider of energy efficient services and monitoring solutions, through a range of associated proprietary technologies in the form of its Agility, Smart and heat metering software and firmware products.
These enable customers to meet the increasingly stringent regulations surrounding the ever-growing pressure to achieve a national net-zero carbon footprint. High demand for these technology services is driven by necessity for this product, underwritten by Local Authority contracts, and guaranteed by the Energy Act legislation.
Executive Chairman's statement and business review
I am pleased to provide an update on the company's progress with its development plans for all of its services, against the backdrop of the most challenging environment post COVID, and the substantial inflationary pressure reported in the 2023 & 2024 annual reports.
This report covers the year ended 30 June 2025.
Key highlights for the period are:
• Successful deployment of IOT solutions into Local Authority dwellings enabling customers to measure energy consumption, light levels, ventilation, and mould risks, with this roll-out continuing post period end.
• Growing pipeline with a committed pipeline from Local Authorities of circa £40mn of project works and heat metering and billing works over the next 2 year period.
• Many further consultancy service agreements are in place with Local Authorities to meet the requirements of the Energy Act. Given the impending January 2026 deadline for compliance, we expect to sign with many more Local Authorities, which will naturally transition into ongoing contracts for our Smart & Agility offerings.
• Continued use of the innovative Agility Software by Westminster City Council. Due to its agnostic approach to measuring and monitoring heat networks and communal heating, it is regarded as a benchmark solution by clients. During the year we have also had Agility trials with Local Authorities including both Royal Borough of Kensington and Chelsea and Lambeth (with OFGEM, the appointed regulator of Heat Networks) and are now finalising terms with both, to ensure their ongoing compliance with the strict regulatory requirements.
• Significantly improved financial performance in the period with a Normalised EBITDA for the year of £2.4mn. This EBITDA has been on an upward trajectory throughout the year, and we have a budgeted Normalised EBITDA of £4.3mn for the financial year to June 2026.
• Strengthening of the management team to ensure that GEM is ideally positioned to capitalise on the opportunities available over the next financial periods and that turnover growth is sustainable and increasingly profitable.
By building on these key achievements the directors believe that the company is well placed to exploit future opportunities as and when they arise.
Gem Environmental Building Services Limited
Strategic Report for the Year Ended 30 June 2025
Fair review of the business
Results in the period as follows:
• Revenues of £28.8mn, a 28% increase on the previous 12 month period.
• Cash at bank of £942k.
• 109 employees in employment at year end and a diverse ethnic and gender mix with a 25%/75% female/male split.
• Social value activities including but not limited to: 9 active apprentices recruited via channels such as the Construction Youth Trust; Euston Skills Centre; engaging with schools and colleges within the Local Authorities with whom the company works; volunteering hours and monetary donations towards summer days out for the elderly, disabled children and vulnerable groups; and donations to local food banks, Local Authority run charities and community needs, such as household suppliers or communal maintenance including; garden furniture supply, communal garden rejuvenation projects & restoring youth clubs.
• Along with turnover increasing by 28%, gross profit margin was up to 31.5% (25.2% - 2024) and administrative expenses were reduced resulting in a Normalised EBITDA (after adding back some exceptional costs in the year) of £2.4mn (2024 - £(3.0)mn) for the period. This is an exceptional turnaround year on year, and we plan to accelerate this growth in the coming year.
Whilst inflation has reduced over the year the cumulative impact of inflationary pressures in previous periods has meant that our Service & Repair business is challenging, due to the long-term contractual obligations to Local Authorities. We have invested a lot of time in reviewing how we can service these contracts most efficiently to ensure that we can operate them as profitably as possible, whilst not compromising on our delivery of the contracted services.
Revenues from the company’s traditional servicing and maintenance business decreased to £16.0m (2024 - £16.2m).
Project revenue increased to £12.8m (2024 - £6.4m). The company has focused on developing the project arm of the business, because it can benefit from high value contracts. Most encouragingly, looking ahead the company already has circa £40mn of contracted revenue in place over the next 2 financial years.
As is evidenced from the above headline numbers, the company has experienced a significant turnaround in the period to 30th June 2025 and the run rate EBITDA on a monthly basis continues on an upward trajectory. We are confident that this rate of increase will continue apace as our roll out of Smart and Agility accelerates. This means that the company will quickly be able to move on from the losses of recent years and continue to grow rapidly, spearheaded by the growth in our technology arm and the associated project work affording higher revenues as a result.
Across the period, the company has continued its financial investment in the ongoing development of the software solutions. £0.8m (2024 - £0.9m) has been invested in continuing to build a team, a suitable infrastructure and so providing advocacy for government and clients in the district heating sector ahead of the introduction of the new Energy Act, for which the Group has identified significant customer solutions through its Agility and Smart offerings.
As reported last year, the company has established sector leading technology solutions for customers to meet their requirements under the Energy Act and we now see the benefit of this with increasing recurring revenues which will gain pace and traction throughout FY 2026 as the January 2026 deadline for compliance is passed.
Gem Environmental Building Services Limited
Strategic Report for the Year Ended 30 June 2025
Assessment of Risks to the company
• Inflation - the company's focus is on fighting inflation within the supply chain and the workforce payroll, to match customers’ budget constraints, themselves balanced against residents’ own cost of living pressures. The wider world conflicts and uncertainties continues to drive inflation at above target rates and unchecked this can affect our people, our purchasing power, our clients, and put pressure on annual pricing reviews. By focusing our efforts to support clients in the increasingly demanding legislative landscape and the strict, environmental, and Health & Safety agenda within government, the solutions GEM offers now provide considerable opportunity for GEM to leverage its expertise to meet clients’ pressing needs and ensure the legislative solutions GEM offers are made a priority.
• Credit - both in the context of credit insurers’ appetite for the wider construction sector, and with the historic losses within the company, access to credit in the supply chain presents a challenge, especially in the light of GEM’s growth trajectory and the consequent need for further working capital.
The return to profitability in the current year along with substantial increase in projected profitability for FY 2026 achieved will mitigate this risk and diminish it over the next financial year, especially by:
• More focus on margin, profitability and managing the cost base within the Service & Repair business.
• Increasing order book for project work with circa £40mn committed works over the next 2 years.
• Accelerated roll-out of recurring revenue technology providing a stable and growing ongoing recurring revenue stream.
Corporate Governance
GEM has achieved, and is continually improving on, its ISO Certification and is progressing toward Tier 1 & 2 ESG requirements, which cover activities such as Leadership & Purpose, Board Composition, Director Responsibilities, Opportunity and Risk, Remuneration, Health, and Well-being & Safety.
As of 30 June 2025, GEM held the following accreditations: ISO -9001, 14001 and 45001; CHAS; Construction Online - Silver and Bronze; Construction line; Social Value; Gas Safe; FORS - Bronze; IGEM; LRQA; NAPIT, NICEIC and Sage Contractor.
The company reviews its key policies and terms of reference on an annual basis and makes relevant changes to maintain best practices and support ever changing legislation. GEM continues to operate separate Remuneration, Audit, ESG and Health, Well-being and Safety Committees, as befits the importance of these controls within a growing company.
Board Composition
The composition of the board is currently;
Executive Members:
• Mitchell Barney - Executive Chairman
• Keith Harris - Managing Director
Non-Executive Members:
• Gurmail Sidhu - Legal Professional
Other contributors:
• Peter Wall - SME Investor and Mentor
Gem Environmental Building Services Limited
Strategic Report for the Year Ended 30 June 2025
Board meetings
Board meetings are held monthly as a minimum.
At every board meeting the directors review the operational effectiveness, governance, and financial aspects of GEM comprehensively, with a particular focus on the overall strategy and KPIs.
Shareholder relations
The board meets with the ultimate shareholders on a regular basis, at a minimum monthly, to review progress towards the strategic goals set.
Research and development
GEM continues to undertake research and development in order to improve and diversify its service offering.
Future Prospects
During the year GEM has achieved a significant turnaround in financial performance, and the monthly run rate profitability is increasing resulting in a budgeted EBITDA for FY 2026 of £4.3mn.
In addition to the ongoing Servicing & Repair revenues which are the traditional core of the business, GEM has a substantial committed projects pipeline of circa £40m over the next 2 years some of which projects have started. GEM is very focused on both the deliverability and profitability of all revenue streams and therefore works very closely with its supply chain to obtain best pricing and terms to ensure that all works can be completed thoroughly, to the highest standard and in as efficient and quick a timeframe as is reasonably possible without sacrificing quality.
Given the impending January 2026 deadline for Heat Network compliance, we have cultivated further relationships following on from our first contract with Westminster City Council. As a result, GEM is in advanced discussions with numerous Local Authorities with a view to further increasing our technology offering.
Given all the above the business has identified the need to raise additional funds to provide sufficient working capital primarily to further accelerate the roll out of the technology offering. GEM has instructed professional advisors to advance this process and GEM’s leadership is working in tandem with the retained advisors to secure appropriate investment to facilitate ambitious growth plans and allow GEM to become a clear market leader.
Therefore, we look forward to a most fruitful FY 2026, with a stable service and maintenance business, substantial and growing project works, and an innovative solution for many local authorities and social housing operators exposed to district heat networks and the most pressing statutory requirements. All of this will generate substantial revenues, increased profitability and a stream of ever-increasing recurring revenues. We look forward to the 2026 financial year with much confidence and optimism.
Approved by the
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Director
Gem Environmental Building Services Limited
Directors' Report for the Year Ended 30 June 2025
The directors present their report and the financial statements for the year ended 30 June 2025.
Directors of the company
The directors who held office during the year were as follows:
Dividends
No interim dividends (2024: £Nil) were declared and paid during the year. No final dividend is proposed.
Disclosure of information in the Strategic Report
The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments, research & development and financial instruments.
Directors' liabilities
As permitted by the Articles of Association, the directors have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the director on
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M Barney
Director
Gem Environmental Building Services Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
Gem Environmental Building Services Limited
Independent Auditor's Report to the Members of Gem Environmental Building Services Limited
for the Year Ended 30 June 2025
Opinion
We have audited the financial statements of Gem Environmental Building Services Limited (the 'company') for the year ended 30 June 2025, which comprise the Income Statement, Statement of Financial Position, 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 30 June 2025 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Gem Environmental Building Services Limited
Independent Auditor's Report to the Members of Gem Environmental Building Services Limited
for the Year Ended 30 June 2025
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities (set out on page 7), 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.
Gem Environmental Building Services Limited
Independent Auditor's Report to the Members of Gem Environmental Building Services Limited
for the Year Ended 30 June 2025
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:
Based on our understanding of the company and the industry in which it operates, we determined that the principal risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006), UK corporate taxation laws, health and safety legislation, regulatory requirements of the National Inspection Council for Electrical Installation Contracting and the Gas Safe Register and data protection legislation. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.
We understood how the company is complying with relevant legislation by making enquiries of management and conducting a review of board minutes. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company’s financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management’s incentives and opportunities for fraudulent manipulation of the financial statements.
We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection of any regulatory or legal correspondence; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; and identifying and assessing the effectiveness of controls in place to prevent and detect fraud.
Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.
The primary responsibility for the detection and prevention of fraud rests with those responsible for governance and management. The further removed non-compliance with laws and regulations is from the events reflected in the financial statements, the less likely the auditor will become aware of it.
The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission, misrepresentation or forgery.
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 auditor's report.
Gem Environmental Building Services Limited
Independent Auditor's Report to the Members of Gem Environmental Building Services Limited
for the Year Ended 30 June 2025
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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For and on behalf of
130 Shaftesbury Avenue
London
W1D 5AR
Gem Environmental Building Services Limited
Income Statement for the Year Ended 30 June 2025
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Note |
Year ended 30 June |
15 months to 30 June |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Operating profit/(loss) |
1,434,297 |
(3,122,427) |
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Other interest receivable and similar income |
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Interest payable and similar expenses |
( |
( |
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(249,705) |
(170,077) |
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Profit/(loss) before tax |
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( |
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Tax on profit/(loss) |
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- |
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Profit/(loss) for the financial year |
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( |
Gem Environmental Building Services Limited
Statement of Financial Position as at 30 June 2025
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Note |
2025 |
2024 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
( |
( |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net liabilities |
( |
( |
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Capital and reserves |
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Called up share capital |
50,000 |
3 |
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Profit and loss account |
(1,034,048) |
(2,683,376) |
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Shareholders' deficit |
(984,048) |
(2,683,373) |
Approved and authorised by the
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M Barney
Director
Company registration number: 03893436
Gem Environmental Building Services Limited
Statement of Changes in Equity for the Year Ended 30 June 2025
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Share capital |
Retained earnings |
Total |
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At 1 April 2023 |
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Loss for the year |
- |
( |
( |
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At 30 June 2024 |
3 |
(2,683,376) |
(2,683,373) |
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Share capital |
Retained earnings |
Total |
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At 1 July 2024 |
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( |
( |
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Profit for the year |
- |
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New share capital subscribed |
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- |
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At 30 June 2025 |
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( |
( |
Gem Environmental Building Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2025
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal activity of the company is that of building services, repairs and maintenance and the installation and maintenance of metering and diagnostic software solutions to meet the latest Energy Act legislation for all heat network providers.
The principal place of business is:
1 Torriano Mews
London
NW5 2RZ
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Accounting policies |
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.
Summary of disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS102:
(a) No cash flow statement has been presented for the company
(b) Disclosures in respect of financial instruments have not been presented
(c) No disclosure has been given for the aggregate remuneration of key management personnel.
Disclosure of long or short period
Going concern
The company made a profit for the year ended 30 June 2025 of £1,649,328 but had net liabilities at that date of £984,048. At that date, an amount of £1,895,320 was due to companies under the common control of a director. These companies have confirmed they will not call for repayment until such time as the company has sufficient working capital to meet its future obligations.
The company has prepared financial forecasts, including detailed cashflow projections extending until the end of June 2026. Based on these forecasts the directors anticipate that the company will consistently generate positive cash flows from its operations and maintain sufficient financial resources to meet its obligations as they fall due for a period of at least 12 months from the date of approval of these financial statements.
On the basis of the above, and after making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.
Gem Environmental Building Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2025
Judgements and key sources of estimation uncertainty
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. |
Gem Environmental Building Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2025
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered in the course of the company's normal activities, stated net of discounts and of Value Added Tax.
The company recognises turnover from building services on the date the services are provided. Turnover in respect of maintenance contracts is recognised over the period to which they relate.
In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.
Tax
The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
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:
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Asset class |
Depreciation method and rate |
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Motor vehicles |
25% straight line |
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Furniture, fittings and equipment |
20-25% straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Gem Environmental Building Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2025
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
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.
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Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
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Year ended 30 June |
15 months to 30 June |
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Sale of goods |
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Rendering of services |
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The company's activities arise solely in the UK.
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Other gains and losses |
The analysis of the company's other gains and losses included within administrative expenses for the year is as follows:
|
Year ended 30 June |
15 months to 30 June |
|
|
Gain/loss on disposal of property, plant and equipment |
- |
( |
Gem Environmental Building Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2025
|
Operating profit/(loss) |
Arrived at after charging/(crediting)
|
Year ended 30 June |
15 months to 30 June |
|
|
Depreciation expense |
|
|
|
Bad debt expense |
- |
|
|
Operating lease expense - property |
|
|
|
Operating lease expense - plant and machinery |
|
|
|
Operating lease expense - motor vehicles |
499,459 |
624,041 |
|
Loss on disposal of property, plant and equipment |
- |
|
|
Other interest receivable and similar income |
|
Year ended 30 June |
15 months to 30 June |
|
|
Other finance income |
|
|
|
Interest payable and similar expenses |
|
Year ended 30 June |
15 months to 30 June |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under hire purchase contracts |
- |
|
|
|
|
Gem Environmental Building Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2025
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
Year ended 30 June |
15 months to 30 June |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the company during the year, analysed by category was as follows:
|
Year ended 30 June |
15 months to 30 June |
|
|
Management |
|
|
|
Office administration and support |
|
|
|
Engineers |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
Year ended 30 June |
15 months to 30 June |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
198,620 |
392,513 |
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Gem Environmental Building Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2025
|
Auditor's remuneration |
|
Year ended 30 June |
15 months to 30 June |
|
|
Audit of the financial statements |
|
|
Fees payable to the auditor for other services:
|
Year ended 30 June |
15 months to 30 June |
|
|
2025 |
2024 |
|
|
£ |
£ |
|
|
Other assurance services |
7,750 |
37,118 |
|
Corporation tax compliance |
7,500 |
9,500 |
|
15,250 |
46,618 |
|
Taxation |
Tax charged/(credited) in the income statement
|
Year ended 30 June |
15 months to 30 June |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
- |
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
Year ended 30 June |
15 months to 30 June |
|
|
Profit/(loss) before tax |
|
( |
|
Corporation tax at standard rate |
|
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Effect of tax losses |
( |
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Deferred tax credit from tax loss or credit |
( |
- |
|
Total tax credit |
( |
- |
Gem Environmental Building Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2025
Deferred tax
Deferred tax assets and liabilities
|
2025 |
Asset |
|
Losses carried forward |
|
|
|
|
2024 |
Asset |
|
Losses carried forward |
- |
|
- |
|
Tangible assets |
|
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
||||
|
At 1 July 2024 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
- |
( |
( |
( |
|
At 30 June 2025 |
|
|
|
|
|
Depreciation |
||||
|
At 1 July 2024 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
( |
( |
( |
|
At 30 June 2025 |
|
|
|
|
|
Carrying amount |
||||
|
At 30 June 2025 |
|
|
|
|
|
At 30 June 2024 |
- |
|
|
|
|
Stocks |
|
2025 |
2024 |
|
|
Stock |
|
|
Stock is stated after provisions for impairment of £65,332 (2024: £nil).
Gem Environmental Building Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2025
|
Debtors |
|
Note |
2025 |
2024 |
|
|
Trade debtors |
|
|
|
|
Amounts owed by group undertakings |
|
|
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
|
|
Accrued income |
|
|
|
|
Deferred tax asset |
|
- |
|
|
|
|
Trade debtors are stated after provisions for impairment of £NIL (2024: £203,000).
Amounts owed by group undertakings are interest free, unsecured and repayable on demand.
|
Cash and cash equivalents |
|
2025 |
2024 |
|
|
Cash at bank |
|
|
|
Creditors |
|
Note |
2025 |
2024 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other payables |
|
|
|
|
Accrued expenses |
|
|
|
|
Deferred income |
|
|
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
Gem Environmental Building Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2025
|
Loans and borrowings |
|
2025 |
2024 |
|
|
Current loans and borrowings |
||
|
Bank loan |
|
|
|
2025 |
2024 |
|
|
Non-current loans and borrowings |
||
|
Bank loan |
|
|
The bank loan is secured by a fixed and floating charge over the assets and undertakings of the company. Interest is payable at 3.99% above the Bank of England base rate.
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
50,000 |
|
3 |
During the year, the 3 ordinary shares of £1 each were redesignated into 60 ordinary shares of £0.05. Also during the year, 999,940 ordinary shares of £0.05 each were allotted and issued at par, ranking pari-passu with the existing shares.
There are no restrictions on the payment of dividends or repayment of capital.
|
Reserves |
The profit and loss account includes all current and prior retained earnings and accumulated losses.
|
Commitments and Guarantees |
The total of future minimum lease payments not reflected in the statement of financial position is as follows:
|
2025 |
2024 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
Gem Environmental Building Services Limited
Notes to the Financial Statements for the Year Ended 30 June 2025
|
Related party transactions |
In accordance with FRS102 paragraph 33.1A exemption is taken not to disclose transactions or amounts due between wholly owned undertakings.
At 30 June 2025 an amount of £1,895,320 (2024: £1,235,175) was due to companies under the control of a director in respect of expenses met by those company's on behalf of the company.
At 30 June 2025 an amount of £84,757 (2024: £1,424,757) was due to a director. This amount is secured by a fixed and floating charge over the assets and undertakings of the company.
|
Transactions with directors |
At 30 June 2025 an amount of £389,434 (2024: £380,479) was due from the directors. Advances of £410 were made during the year. Interest is payable to the company at 2.25% per annum amounting to £8,545 (2024: £10,393) and there are no set repayment terms. A provision for non recoverability has been made in full against this amount.
|
Parent and ultimate parent undertaking |
The company's immediate parent is Socius Investments Limited and the ultimate parent is JTMM Investments Limited.
The parent of the smallest and largest group preparing group accounts incorporating the results of the company is JTMM Investments Limited, whose financial statements are available from Companies House. The registered address of JTMM Investments Limited is 130 Shaftesbury Avenue, 2nd Floor, London, W1D 5EU.
The ultimate controlling party is M Barney.