Bromsgrove Winding Services Limited

Notes to the Financial Statements for the Period from 1 June 2024 to 31 December 2024

1	Accounting policies

Statutory information

Bromsgrove Winding Services Limited is a private company, limited by shares, domiciled in England and Wales, company number 03169472. The registered office is at 4 Cowley Way, Chapeltown, Sheffield, S35 1QP.

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.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value. The presentation currency is United Kingdom pounds sterling, which is the functional currency of the company. The financial statements are those of an individual entity.

Summary of disclosure exemptions

The company is a wholly owned subsidiary of EMSC Global Limited and has taken advantage of the exemption under FRS102 section 33.1A not to disclose transactions with wholly owned members of the group.

Going concern

After due consideration of all relevant factors, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. These considerations include the significant financial support provided by the company's ultimate controlling party, SCF-IX, LP. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Key sources of estimation uncertainty

Tangible fixed assets are depreciated over their useful lives taking into account residuals values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

The directors have assessed the value of properties and fixed assets held by the entity for impairment, the directors deem it appropriate to continue to hold the properties and fixed assets at current carrying value, with no evidence of impairment being noted. The previous valuation was undertaken by an independent party using a yield methodology using the market rental values capitalised at a market capitalisation rate, but there is an inevitable degree of judgement involved in that each property is unique and value can only be reliably tested in the market itself. At the year end, the directors deem there to be no material movement in fair value of the asset held.

Bromsgrove Winding Services Limited

Notes to the Financial Statements for the Period from 1 June 2024 to 31 December 2024 (continued)

1	Accounting policies (continued)

Revenue recognition

Revenue represents sales to external customers at invoiced amounts less value added tax or local taxes on sales.

The company recognises revenue when the installation of goods is complete. Where no installation takes place, revenue is recognised when the goods are delivered to customers.

Amounts invoiced for which the revenue recognition criteria have yet to be satisfied are held within creditors and released to revenue in the period when the above revenue recognition criteria have been met.

Government grants

In 2014 the company received a grant from the Regional Growth Fund for £80,000 towards the cost of a new freehold property. The Company has shown the asset gross and the grant as deferred income. The grant is being released to the Statement of Comprehensive Income in line with depreciation at a rate of 2% per annum.

Tangible 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
Freehold property	2% Straight line
Plant, machinery and office equipment	20% Reducing balance

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.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the statement of comprehensive income.

2	Staff numbers

The average number of persons employed by the company during the period, was 0 (2024 - 0).

Bromsgrove Winding Services Limited

Notes to the Financial Statements for the Period from 1 June 2024 to 31 December 2024 (continued)

3	Tangible assets

	Land and buildings £	Plant and machinery £	Total £
Cost or valuation
At 1 June 2024	600,182	239,398	839,580
At 31 December 2024	600,182	239,398	839,580
Depreciation
At 1 June 2024	97,029	239,398	336,427
Charge for the period	7,002	2,523	9,525
Reversal of policy change	-	(22,734)	(22,734)
At 31 December 2024	104,031	219,187	323,218
Carrying amount
At 31 December 2024	496,151	20,211	516,362
At 31 May 2024	503,153	-	503,153

Included within the net book value of land and buildings above is £496,151 (2024 - £503,153) in respect of freehold land and buildings.
 

In the previous period the directors changed the accounting policy for depreciation which resulted in an additional £22,734 depreciation to be charged in the year to 31 May 2024. In the current period the directors decided to revert to the previous depreciation policy.

Revaluation
Freehold land and buildings were valued on an open market basis on 2 September 2015 by J Truslove Commercial Property Surveyors.

Had this class of asset been measured on a historical cost basis, the cost would have been £442,981 (Year to May 2024 - £442,981) and the carrying value would have been £360,412 (Year to May 2024 - £369,272).

Plant and machinery was revalued on 31 December 2015 by the company's directors.

Had this class of asset been measured on a historical cost basis, the cost would have been £173,448 (Year to May 2024 - £173,448) and the carrying amount would have been £28,656 (Year to May 2024 - £29,241).

The directors do not believe there to be any difference between the carrying value and fair value of the revalued assets, having taken appropriate steps to determine the fair value.

The company has applied the transitional arrangements of Section 25 of FRS 102 and used the previous valuation as the deemed cost for these assets. The assets are being depreciated from the valuation date. As the assets are depreciated or sold, an appropriate transfer is made from the revaluation reserve to retained earnings.

Bromsgrove Winding Services Limited

Notes to the Financial Statements for the Period from 1 June 2024 to 31 December 2024 (continued)

4

Debtors

Current	31 December 2024 £	31 May 2024 £
Amounts owed by group undertakings	20,000	20,000
Prepayments	19,169	19,169
Other debtors	5,273	53,598
	44,442	92,767

5

Creditors

	31 December 2024 £	31 May 2024 £
Due within one year
Trade creditors	2,361	2,361
Amounts owed to group undertakings	2,280,120	2,313,984
Taxation and social security	490	324
Accruals and deferred income	20,842	20,842
	2,303,813	2,337,511