Entric Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is 64 Victoria Road, Mortimer Common, Reading, Berkshire, RG7 3SG.

2	Accounting policies

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 smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

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 financial statements are presented in Pound Sterling (£), which is also the functional currency of the company.

Significant accounting judgements and estimates
The preparation of accounts under FRS 102 requires management to make judgements, estimates and assumptions that affect the value of the turnover and profit reported in the profit and loss statement for the financial year and the value of assets and liabilities recorded in the balance sheet.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both the current and future periods.

The areas requiring a higher degree of judgement or where assumptions and estimates are significant to the accounts are outlined below:

Construction contracts
Recognition of turnover and profit on construction contracts requires management judgement regarding the anticipated final outcome of individual contracts and of the proportion of works completed at the balance sheet date. Management undertakes detailed reviews on a monthly basis in order to exercise judgement over the
outcome of each contract and associated risks and opportunities.

The value of work completed at the balance sheet date is calculated by undertaking surveys and completing internal assessments on each element of works packages completed and in progress. Regular management reviews of contract progress include a comparison of internal assessments of costs to the applications made by subcontractors and external valuations completed on behalf of customers. Any material variances are investigated, and updates made where appropriate.

The estimation of the final contract value includes assessment of the recovery variations which have yet to be agreed with the customer, compensation events and claims that are probable to be agreed.

Entric Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

2	Accounting policies (continued)

Significant accounting judgements and estimates continued
The age, nature and recoverability of all debtors and amounts recoverable on construction contracts are reviewed regularly by management and provisions made where appropriate.

Procedures, internal financial controls, and management processes are in place to ensure that estimates are applied, and results determined on a consistent basis.

Provisions and recoveries
In the normal course of trading, claims may arise on contracts within their defects liability period that require judgement on the likely outcome of the claim. This requires an assessment of the contractual obligations and on the likely conclusion of any on-going discussions.

Where it is deemed probable that costs will be incurred, judgement is needed to estimate the provision required for obligations existing at the balance sheet date. Where applicable, these estimates are regularly review by management and derived from a combination of internal valuations, third party quotes and independent expert advice.

In considering whether recovery of costs from third parties are virtually certain, and therefore recognisable as a separate asset, it is also necessary for management to assess contractual arrangements, insurance policies, formal correspondence with relevant parties and professional advice received. Consideration is also given to the financial strength of the third party in meeting their obligations to the company.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Revenue recognition

Turnover on construction contracts is measured at the fair value of consideration receivable and ascertained in a manner appropriate to the stage of completion and the anticipated final value of the contract.

Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is measured at the fair value of consideration received or receivable.

All turnover is stated net of VAT.

Contract revenue recognition

Turnover and profit on construction contracts is ascertained in a manner appropriate to the stage of completion of the contract.

The Company uses an percentage of completion method to measure progress for construction contracts where turnover is recognised over time. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to estimated total contract costs. However, where the Company considers that this may not be representative of the stage of completion, for example it is distorted by a significant change in the value of a supply chain package, an assessment of costs incurred on individual works packages is made. If this determines turnover considered to be more reliably measured than the calculation of costs in total, then this method of estimation is used.

Entric Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

2	Accounting policies (continued)

Contract revenue recognition continued

Profit on contracts is only recognised when the Company is satisfied that the risks on a contract have been mitigated to a suitable level so that the outcome of work under the contract can be assessed with reasonable certainty. This can mean that a greater proportion of profit is recognised towards the end of a contract when it is successfully delivered and final accounts are agreed.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately and an associated liability recorded.

Variations and claims are recognised once it is probable that they will be received, and the amount can be measured reliably.

Amounts recoverable on contracts represent the excess of the value of surveyed work over amounts invoiced or certified at the balance sheet date. Where amounts invoiced or certified at the balance sheet date exceed the amount of work completed, the excess is included within payments on account.

Taxation

Tax on profit 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 the profit as reported in the profit and loss account 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 year.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities and the corresponding tax bases used to compute taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for temporary differences to the extent that it is probable that taxable profits will be available to utilise the timing difference.

Deferred tax liabilities and assets are measured at tax rates that are expected to apply in the period the liability is settled or the asset realised. The measurement of deferred tax liabilities and assets reflects the tax consequences in which the company expects to recover or settle the underlying amount of its assets and liabilities.

The Company participates in the UK government's Research and Development tax relief scheme for small and medium enterprises. Tax credits arising in respect R&D claims are included within tax on profit/(loss) for the period and amounts receivable are included on the balance sheet within the corporation tax receivable balance or as a reduction in the corporation tax payable balance, as appropriate.

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
Motor Vehicles	25% Reducing Balance
Plant and Machinery	25% Reducing Balance
Fixtures and Fittings	25% Reducing Balance

Entric Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

2	Accounting policies (continued)

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

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.

Trade debtors

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

Trade debtors 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 trade debtors 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.

Trade creditors

Trade creditors 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.

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

Provisions

On contracts that have achieved practical completion but are still within the defects liability period, provisions are recognised when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow will be required to settle the obligation and the amount can be reliably estimated.

Provisions are measured at the present value of best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation.

Leased assets

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Any incentives received to enter into an operating lease are credited to the profit and loss account, to reduce the lease expense, on a straight-line basis over the period of the lease.

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.

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 authorised and paid.

Entric Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

2	Accounting policies (continued)

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.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 42 (2023 - 42).

4	Tangible assets

	Fixtures and fittings £	Plant and machinery £	Motor vehicles  £	Total £
Cost or valuation
At 1 January 2024	101,530	48,238	203,900	353,668
Additions	-	-	38,255	38,255
Disposals	-	-	(26,105)	(26,105)
At 31 December 2024	101,530	48,238	216,050	365,818
Depreciation
At 1 January 2024	101,225	43,089	133,988	278,302
Charge for the year	76	1,287	18,902	20,265
Eliminated on disposal	-	-	(24,431)	(24,431)
At 31 December 2024	101,301	44,376	128,459	274,136
Carrying amount
At 31 December 2024	229	3,862	87,591	91,682
At 31 December 2023	305	5,149	69,912	75,366

5

Debtors

Current	31 December 2024 £	31 December 2023 £
Trade debtors	170,641	134,792
Amounts recoverable on contract	351,915	518,075
Other debtors	131,317	124,777
	653,873	777,644

Entric Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

6

Creditors

Creditors: amounts falling due within one year

	31 December 2024 £	31 December 2023 £
Due within one year
Payments on account	53,555	18,510
Trade creditors	614,016	374,967
Taxation and social security	40,118	41,645
Other creditors	54,055	49,370
	761,744	484,492

7	Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

	31 December 2024 £	31 December 2023 £
Not later than one year	49,941	61,267
Later than one year and not later than five years	144,645	14,994
	194,586	76,261

The amount of non-cancellable operating lease payments recognised as an expense during the year was £69,081 (2023 - £76,362).

8	Ultimate controlling party

The company is jointly controlled by Entric Holdings Limited and SJS Ventures Limited.

9	Audit report

The Report of the Auditors was unqualified.

The name of the Senior Statutory Auditor who signed the Audit Report was Jason Pyke FCA, who signed for and on behalf of Vale & West Accountancy Services Limited.