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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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CARILLON INDUSTRIAL SERVICES LIMITED
COMPANY INFORMATION
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CARILLON INDUSTRIAL SERVICES LIMITED
CONTENTS
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CARILLON INDUSTRIAL SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their strategic report for the year ended 31 December 2024.
The principal activities of Carillon Industrial Services Limited ("the Company") during the year were those of the supply of technical tooling and services to the precision engineering industry. Operating from multiple UK based stock centres across the South East and the Midlands supported by an experienced sales and delivery team. With extensive in-house technical engineering expertise and a dedicated Product Proving Centre providing Application Engineering, CAD/CAM and Prototyping services we can ensure customers are provided with the correct specification of precision tooling for their needs.
A strong start to the year with sales ahead of expectation, but a subsequent change in government followed by increasingly negative messages about the state of the Uk’s finances, saw industry confidence plummet and demand flatline during the second and third quarters of the year. Confidence began to recover during the final quarter. Although the year ended below expectation, we managed 7% year on year growth, a relative success compared to many of our competitors. This was largely due to continued investment in our branch operation.
We are working closely with our key suppliers to explore opportunities for streamlining and improving efficiency across supply chains to reduce cost and improve margin. Continued investment in vending stocks will also offer improvements in lead times for our customers. Despite the fall off in demand, we decided to push ahead with our plans for additional staffing and equipment that would support our longer term plans for growth. Although this negatively impacted net margins during the year, with the improving picture in the final quarter, we now remain fully confident that the investment will generate positive returns for 2025. Efforts were made in the year to reduce the level of stock holdings and improve stock turn. This included focused reporting on slow moving and obsolete stocks and a reduction in ‘duplicated’ stock holdings across branches. An increase in more centralised stock holdings in 2025 should contribute to a further reduction in overall stock holdings. CIS Smart Factory and the Product Proving Centre (PPC) remain core elements of our strategy designed to integrate with our customers’ business. CIS Smart Factory provides customers with various tools to improve processes and applications within their production facilities as well as an online catalogue and ordering portal. Alongside this, we are increasing our investment in application engineers that will offer customers technical support and expertise. With the world and politics seemingly unable to escape turmoil the road ahead will no doubt continue to be challenging, but we have strong foundations upon which to continue to build.
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CARILLON INDUSTRIAL SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors have considered the risks and uncertainties facing the business and have taken action to mitigate these wherever possible. Systems are in place to avoid undue reliance on specific customers, sectors or suppliers and our focus on continually adding value to our business through increased service, staff development and training and investment in systems to enhance our operating efficiencies and productivity.
Liquidity remains the key risk as the business continues its current growth trajectory. The Company continues to use a range of financial instruments including loans, factoring facilities, finance leases, hire purchase contracts, debtors and creditors in order to raise finance for the Companies operations. These instruments expose the Company to financial risks which are detailed below: i) Price risk Wherever possible we look to pass on any increases in costs, when an increase can be forseen, consideration to bulk buying at favourable prices is considered. ii) Credit risk The principal credit risk for the Company arises from its trade debtors. To ensure this risk is managed effectively the directors set limits for customers based on a combination of payment history and third-party credit reference. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt aging and collection history. iii) Liquidity risk The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet its foreseeable needs. iv) Foreign exchange risk The Company's risk to foreign exchange fluctuations arises from various purchases. Where appropriate the Company will enter into foreign exchange currency contracts to mitigate this risk or bulk buy when rates are favourable. The Directors believe the Company’s financial key performance indicators are those that demonstrate the financial and operational strength of the Company, these being turnover, gross profit percentage and profit before tax:
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CARILLON INDUSTRIAL SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The business will continue to search for new opportunities that will contribute to both sales growth and profit improvement as well as maximising the return on existing investments. Technology will play a key role in supporting our goals to provide customers with best in class levels of service and improvements in operational efficiencies.
We are also firmly committed to reducing our carbon footprint and will be looking to extend our investment in greener energy solutions across our branches including new photovoltaic systems to generate electricity where possible. We are also replacing end of life fleet vehicles with greener vehicles either partially or fully electric. Wherever possible meetings are arranged remotely rather than face to face to avoid the need to travel supported by investment in Interactive Boards across all sites to aid remote sharing and collaboration.
This report was approved by the board and signed on its behalf.
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CARILLON INDUSTRIAL SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.
The profit for the year, after taxation, amounted to £275,308 (2023 : £432,871).
Dividends totalling £395,013 have been declared during the year (2023: £283,487).
The directors who served during the year were:
The Directors have chosen to include the following items in the Strategic report:
• Financial instruments (included within principal risks and uncertainties) • Future developments
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CARILLON INDUSTRIAL SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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CARILLON INDUSTRIAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CARILLON INDUSTRIAL SERVICES LIMITED
We have audited the financial statements of Carillon Industrial Services Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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CARILLON INDUSTRIAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CARILLON INDUSTRIAL SERVICES LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the 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 Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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CARILLON INDUSTRIAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CARILLON INDUSTRIAL SERVICES LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙Enquiry of management and those charged with governance around actual and potential litigation and claims;
∙Enquiry of entity staff to identify any instances of non-compliance with laws and regulations;
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and reviewing accounting estimates for bias; and;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities 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.
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CARILLON INDUSTRIAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CARILLON INDUSTRIAL SERVICES LIMITED (CONTINUED)
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.
For and on behalf of MHA, Statutory Auditor
Date:
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).
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CARILLON INDUSTRIAL SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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CARILLON INDUSTRIAL SERVICES LIMITED
REGISTERED NUMBER: 01519536
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 34 form part of these financial statements.
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CARILLON INDUSTRIAL SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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CARILLON INDUSTRIAL SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CARILLON INDUSTRIAL SERVICES LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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CARILLON INDUSTRIAL SERVICES LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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CARILLON INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Carillon Industrial Services Limited (the "Company") is a private company limited by shares, incorporated in England and Wales under the Companies Act.
The registered number and address of the registered office are given in the Company information. The nature of the Company's operations and its principal activities are set out in the Strategic report on page 1. The functional and presentational currency of the Company is pounds sterling (£) and rounded to the nearest whole pound.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis. In forming this view, the directors have undertaken a comprehensive assessment of the entity’s financial position and future prospects. This assessment included a review of the annual budget, detailed cash flow forecasts, and consideration of both internal and external factors that could impact the business. The directors also evaluated the potential effects of events occurring after the reporting date.
Based on this review, and taking into account the financial resources currently available to the entity—including access to funding, liquidity headroom, and the strength of its customer and supplier relationships—the directors have not identified any material uncertainties that may cast significant doubt on the entity’s ability to continue as a going concern. Accordingly, the directors consider it appropriate to adopt the going concern basis in preparing the annual report and financial statements.
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CARILLON INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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CARILLON INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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CARILLON INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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CARILLON INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method and reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Land which is included in Freehold property is not depreciated as it has an indefinite useful life.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.
At each reporting date, stocks are assessed for impairment. If stock is 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.
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CARILLON INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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CARILLON INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Below is a summary of the key judgements and estimates included within these accounting policies. a) Key judgments in applying accounting policies i) Lease classifcation Management has exercised judgement in determining the classification of lease arrangements under the applicable accounting framework. In assessing whether the lease conveys substantially all the risks and rewards incidental to ownership, consideration was given to factors such as the lease term relative to the asset’s economic life, the present value of minimum lease payments compared to the fair value of the asset, and the existence of any purchase options or residual value guarantees. This judgement has a material impact on the presentation of assets and liabilities in the financial statements and on the recognition of lease-related expenses.
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CARILLON INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
3.Judgments in applying accounting policies (continued)
i) Stock obsolescence Included in stocks held at the year end is a provision for obsolete stock. This provision is based on estimation made by the directors using their opinion of the proportion of items that are no longer saleable at full price or that may be obsolete. The provision is based around the likelihood of the future sales of stock items that have remained unsold for a significant amount of time. ii) Determining useful economic lives of tangible fixed assets The Company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on the historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technology innovation, product life cycle and maintenance programmes.
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CARILLON INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CARILLON INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CARILLON INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CARILLON INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
12.Taxation (continued)
There were no factors that may affect future tax charges.
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