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| 2. |
Summary of Significant Accounting Policies |
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The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements. |
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Statement of compliance |
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The financial statements of the company for the financial year ended 31 January 2025 have been prepared in accordance with the provisions of FRS 102 Section 1A (Small Entities) and the Companies Act 2006. |
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Basis of preparation |
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The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. |
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Turnover |
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Turnover comprises the invoice value of services and ancillary goods supplied by the company, exclusive of trade discounts and value added tax. |
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Intangible assets |
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Registered trademarks |
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Registered trademarks are valued at cost less accumulated amortisation. |
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Amortisation is calculated to write off the cost in equal annual instalments over their estimated useful life of 10 years. |
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Property, plant and equipment and depreciation |
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Property, plant and equipment are stated at cost or at valuation, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows: |
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Short leasehold property |
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2% Straight line |
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Plant and machinery |
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20% Straight line |
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Fixtures, fittings and equipment |
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20% Straight line |
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Motor vehicles |
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20% Straight line |
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The carrying values of tangible fixed assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. |
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Leasing and hire purchases |
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Property, plant and equipment held under leasing and Hire Purchase arrangements which transfer substantially all the risks and rewards of ownership to the company are capitalised and included in the Statement of Financial Position at their cost or valuation, less depreciation. The corresponding commitments are recorded as liabilities. Payments in respect of these obligations are treated as consisting of capital and interest elements, with interest charged to the Income Statement. |
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Leasing |
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Rentals payable under operating leases are dealt with in the Income Statement as incurred over the period of the rental agreement. |
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Stocks |
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Stocks are valued at the lower of cost and net realisable value. Stocks are determined on a first-in first-out basis. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling. |
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Trade and other debtors |
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Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts. |
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Borrowing costs |
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Borrowing costs relating to the acquisition of assets are capitalised at the appropriate rate by adding them to the cost of assets being acquired. Investment income earned on the temporary investment of specific borrowings pending their expenditure on the assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profit or loss in the period in which they are incurred. |
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Provisions |
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Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the same value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense. |
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Trade and other creditors |
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Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost. |
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Employee benefits |
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The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. |
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Taxation and deferred taxation |
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Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the financial year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Statement of Financial Position date. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements. Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the Statement of Financial Position date. |
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Foreign currencies |
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Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the Statement of Financial Position date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the rates of exchange ruling at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The resulting exchange differences are dealt with in the Income Statement. |
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Ordinary share capital |
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The ordinary share capital of the company is presented as equity. |
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| 9. |
Creditors |
2025 |
2024 |
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Amounts falling due after more than one year |
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£ |
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Bank loan |
29,250 |
48,750 |
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Finance leases and hire purchase contracts |
141,536 |
128,462 |
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Directors' loan accounts |
900,000 |
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───────── |
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1,070,786 |
177,212 |
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Loans |
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Repayable in one year or less, or on demand (Note 8) |
19,500 |
21,878 |
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Repayable between one and two years |
19,500 |
19,500 |
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Repayable between two and five years |
9,750 |
29,250 |
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───────── |
───────── |
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48,750 |
70,628 |
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Net obligations under finance leases |
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and hire purchase contracts |
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Repayable within one year |
56,619 |
56,515 |
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Repayable between one and five years |
141,536 |
128,462 |
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───────── |
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198,155 |
184,977 |
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| 12. |
Related party transactions |
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Balance |
Movement |
Balance |
Maximum |
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2025 |
in year |
2024 |
in year |
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£ |
£ |
£ |
£ |
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City Contract Cleaners Limited |
24,288 |
3,228 |
21,060 |
24,288 |
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GFJ Belfast Limited |
84,945 |
31,945 |
53,000 |
84,945 |
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───────── |
───────── |
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109,233 |
35,173 |
74,060 |
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The following amounts are due to other connected parties: |
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2025 |
2024 |
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£ |
£ |
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Ryak Cleaning ROI Limited |
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52,730 |
45,408 |
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Net balances with other connected parties: |
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2025 |
2024 |
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£ |
£ |
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Ryak Cleaning ROI Limited |
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(52,730) |
(45,408) |
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City Contract Cleaners Limited |
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24,288 |
21,060 |
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GFJ Belfast Limited |
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84,945 |
53,000 |
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56,503 |
28,652 |
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The parties are connected through common directors. Ryak Cleaning (ROI) Limited advanced money to the company. A balance of £52,730 (2024: £45,408) was owed to Ryak Cleaning (ROI) Limited at the reporting date and was included within creditors falling due within one year. The company advanced a loan to City Contract Cleaners Limited during the period. The companies are connected through a common shareholder and Director. The loan was interest free and repayable on demand. The balance outstanding at the reporting date was £24,288 (£21,060 in 2024), and this amount is included in debtors falling due within one year. The Company also advanced a loan to GFJ Belfast Limited, the balance outstanding at the reporting date was £84,945 (£53,000 in 2024). This is included within debtors due within one year. The company acquired a registered trademark from Francis Creaney, Director during the period. The trademark was transferred at fair value of £1.38m. |
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In the opinion of the directors these amounts arise in the ordinary course of business and the terms of the amounts due are in accordance with the terms ordinarily offered by the company. |