London & Surrey Gas Services Limited

Notes to the Unaudited Financial Statements
for the Year Ended 30 June 2025

1	General information

London & Surrey Gas Services Limited (the 'company') is a private company limited by share capital, registered in England and Wales under the Companies Act. The address of the registered office is given on page 1.

2	Accounting policies

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.

Going concern

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 functional currency of the company is considered to be pound sterling (£) because that is the currency of the primary economic environment in which the company operates. The financial statements are presented in pound sterling (£).

Critical judgements and key sources of estimation uncertainties

There were no key sources of estimation uncertainties or critical judgements made by the directors in the process of applying the company’s accounting policies with significant effect on the amounts recognised in the financial statements.

Revenue recognition

Revenue comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Revenue is shown net of sales/value added tax, returns, rebates and discounts.The company recognises revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the company.

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 company operates and generates taxable income.

London & Surrey Gas Services Limited

Notes to the Unaudited Financial Statements
for the Year Ended 30 June 2025 (continued)

2	Accounting policies (continued)

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.

Property, plant and equipment

Property, plant and equipment are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of property, plant and equipment includes directly attributable incremental costs incurred in their acquisition and installation.

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
Land and buildings	2.5% on cost
Plant and machinery	25% on cost
Motor vehicles	20% on cost
Computer equipment	33.3% on cost

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.

Receivables

Receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Receivables are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of receivables 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.

Inventories

Inventories 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, inventories are assessed for impairment. If inventories 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.

London & Surrey Gas Services Limited

Notes to the Unaudited Financial Statements
for the Year Ended 30 June 2025 (continued)

2	Accounting policies (continued)

Payables

Payables 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 company 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.

Payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

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 company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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.

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 7 (2024 - 6).

London & Surrey Gas Services Limited

Notes to the Unaudited Financial Statements
for the Year Ended 30 June 2025 (continued)

4	Property, plant and equipment

	Furniture, fittings and equipment  £	Motor vehicles  £	Other property, plant and equipment £	Total £
Cost
At 1 July 2024	9,861	47,586	12,910	70,357
Additions	1,408	11,500	-	12,908
Disposals	-	(6,329)	-	(6,329)
At 30 June 2025	11,269	52,757	12,910	76,936
Depreciation
At 1 July 2024	6,280	28,586	12,910	47,776
Charge for the year	1,555	7,050	-	8,605
Eliminated on disposal	-	(6,329)	-	(6,329)
At 30 June 2025	7,835	29,307	12,910	50,052
Carrying amount
At 30 June 2025	3,434	23,450	-	26,884
At 30 June 2024	3,581	19,000	-	22,581

5	Inventories

	2025 £	2024 £
Other inventories	5,786	5,786

London & Surrey Gas Services Limited

Notes to the Unaudited Financial Statements
for the Year Ended 30 June 2025 (continued)

6	Receivables

	2025 £	2024 £
Trade receivables	5,550	15,637
Amounts owed by related parties	288,055	288,055
Other receivables	-	202
Prepayments	5,973	5,310
	299,578	309,204

7

Payables

	2025 £	2024 £
Due within one year
Trade payables	12,420	13,975
Corporation tax	35,054	18,194
Social security and other taxes	25,251	22,429
Outstanding defined contribution pension costs	401	-
Other payables	8,253	11,960
Accruals	4,120	-
	85,499	66,558

8	Provisions for liabilities

	Deferred tax £
At 1 July 2024	-
Additional provisions	1,147
At 30 June 2025	1,147

London & Surrey Gas Services Limited

Notes to the Unaudited Financial Statements
for the Year Ended 30 June 2025 (continued)

9	Share capital and reserves

Allotted, called up and fully paid shares

	2025		2024
	No.	£	No.	£
Ordinary shares of £1 each	1	1	1	1

Reserves

The retained earnings reserve represents cumulative profit or losses net of dividends paid and other adjustments.

The capital redemption reserve represents the nominal value of shares repurchased by the company.