SA2 Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—7

1. General Information

SA2 Limited is a private company, limited by shares, incorporated in England & Wales, registered number 07402228 . The registered office is 23 Middleton Park Circus, Middleton, Leeds, West Yorkshire, LS10 4LX.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Going Concern Disclosure

After reviewing the company's current forecasts and projections, together with the facilities available to the company, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company is reliant on the continued support of bank loans of £1,657,254. The company therefore continues to adopt the going concern basis in preparing its financial statements.

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.4. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to the profit and loss account over its estimated economic life of 100 years.

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Leasehold	9% Straight Line method
Plant & Machinery	Over15 years
Motor Vehicles	25% Straight Line method
Fixtures & Fittings	25% Reducing balance method
Computer Equipment	33% Straight Line method

2.6. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

2.7. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

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SA2 Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2024

2.8. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

2.9. Pensions

The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 27 (2023: 36)

4. Intangible Assets

	Goodwill
	£
Cost
As at 1 November 2023	1,440,987

As at 31 October 2024	1,440,987

Amortisation
As at 1 November 2023	52,742
Provided during the period	14,410

As at 31 October 2024	67,152

Net Book Value
As at 31 October 2024	1,373,835

As at 1 November 2023	1,388,245

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SA2 Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2024

5. Tangible Assets

	Land & Property
	Leasehold	Plant & Machinery	Motor Vehicles	Fixtures & Fittings
	£	£	£	£
Cost
As at 1 November 2023	79,380	102,225	200,995	68,012
Additions	-	-	-	-

As at 31 October 2024	79,380	102,225	200,995	68,012

Depreciation
As at 1 November 2023	32,853	37,336	37,988	38,929
Provided during the period	7,144	6,818	40,752	7,271

As at 31 October 2024	39,997	44,154	78,740	46,200

Net Book Value
As at 31 October 2024	39,383	58,071	122,255	21,812

As at 1 November 2023	46,527	64,889	163,007	29,083


	Computer Equipment	Total
	£	£
Cost
As at 1 November 2023	84,511	535,123
Additions	8,862	8,862

As at 31 October 2024	93,373	543,985

Depreciation
As at 1 November 2023	53,186	200,292
Provided during the period	17,241	79,226

As at 31 October 2024	70,427	279,518

Net Book Value
As at 31 October 2024	22,946	264,467

As at 1 November 2023	31,325	334,831

6. Stocks

	2024	2023
	£	£
Finished goods	167,326	206,647

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SA2 Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2024

7. Debtors

	2024	2023
	£	£
Due within one year
Trade debtors	323,036	357,900
Amounts owed by group undertakings	358,896	530,606
Other debtors	175,102	110,045

	857,034	998,551

8. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Net obligations under finance lease and hire purchase contracts	22,927	32,564
Trade creditors	517,283	499,970
Bank loans and overdrafts	408,267	210,519
Corporation tax	19,661	53,839
Other taxes and social security	17,252	24,287
Other creditors	679,921	589,806
Accruals and deferred income	10,867	5,610

	1,676,178	1,416,595

9. Creditors: Amounts Falling Due After More Than One Year

	2024	2023
	£	£
Net obligations under finance lease and hire purchase contracts	143,468	136,085
Bank loans	1,528,716	1,446,735

	1,672,184	1,582,820

10. Obligations Under Finance Leases and Hire Purchase

	2024	2023
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	22,927	32,564
Later than one year and not later than five years	143,468	136,085

	166,395	168,649

	166,395	168,649

11. Share Capital

	2024	2023
Allotted, called up but not fully paid	£	£
50 Ordinary A shares of £ 1.00 each	50	50
50 Ordinary B shares of £ 1.00 each	50	50

	100	100

The different classes of share referred to above carry separate rights to dividends but, in all other significant respects, rank pari passu.

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SA2 Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2024

12. Directors Advances, Credits and Guarantees

Included within Debtors are the following loans to directors:

	As at 1 November 2023	Amounts advanced	Amounts repaid	Amounts written off	As at 31 October 2024
	£	£	£	£	£
Mrs Sola Abuede	15,715	171,631	(121,045 )	-	66,301
Mr Solomon Abuede	15,715	171,631	(121,045 )	-	66,301

The above loan is unsecured, interest free and repayable on demand.

13. Related Party Transactions

GIA Group Limited