REGISTERED NUMBER: 06448749 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 December 2024

for

Southern Mechanical Services Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

P Martin

R Austin

SECRETARY:

R Austin

REGISTERED OFFICE:

85

Gloucester Road

Croydon

CR0 2DN

REGISTERED NUMBER:

06448749 (England and Wales)

ACCOUNTANTS:

Ledger Sparks Limited

Airport House

Suite 43-45

Purley Way

Croydon

CR0 0XZ

Fixed assets

Tangible assets

4

131,964

129,112

Current assets

Debtors

5

47,186

34,329

Cash at bank

628,778

575,572

675,964

609,901

Creditors

Amounts falling due within one year

6

(687,667

)

(631,696

)

Net current liabilities

(11,703

)

(21,795

)

Total assets less current liabilities

120,261

107,317

Creditors

Amounts falling due after more than one year

7

(3,333

)

-

Provisions for liabilities

9

(19,173

)

(17,838

)

Net assets

97,755

89,479

Capital and reserves

Called up share capital

100

100

Revaluation reserve

10

67,654

67,654

Retained earnings

10

30,001

21,725

97,755

89,479

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 22 December 2025 and were signed on its behalf by:

R Austin - Director

1.	STATUTORY INFORMATION

Southern Mechanical Services Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

The principal activity of the company continued to be that of supplying mechanical services for building installation.

2.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

TURNOVER

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

TANGIBLE FIXED ASSETS

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Fixtures and fittings

25% on reducing balance

Motor vehicles

25% on reducing balance

Plant & machinery

25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

No depreciation has been charged on freehold land and buildings, as it is the director's policy is to maintain the buildings in a continual state of sound repair. The directors consider that the lives of these assets are so long and the residual values so high that depreciation is not material.

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

TAXATION

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

CURRENT TAX

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes 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 reporting end date.

DEFERRED TAX

Deferred tax is recognised in respect of all material timing differences that have originated but not reversed at the balance sheet date.

LEASES

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

PROVISIONS FOR LIABILITIES

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Statement of income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance sheet.

GOING CONCERN

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2023 - 3 ).

4.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST OR VALUATION

At 1 January 2024

118,750

300

19,654

15,225

153,929

Additions

-

4,670

1,248

-

5,918

At 31 December 2024

118,750

4,970

20,902

15,225

159,847

DEPRECIATION

At 1 January 2024

-

173

12,536

12,108

24,817

Charge for year

-

378

1,909

779

3,066

At 31 December 2024

-

551

14,445

12,887

27,883

NET BOOK VALUE

At 31 December 2024

118,750

4,419

6,457

2,338

131,964

At 31 December 2023

118,750

127

7,118

3,117

129,112

Cost or valuation at 31 December 2024 is represented by:

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

Valuation in 2020

89,774

-

-

-

89,774

Valuation in 2022

(6,250

)

-

-

-

(6,250

)

Cost

35,226

4,970

20,902

15,225

76,323

118,750

4,970

20,902

15,225

159,847

The fair value of the property has been arrived at on the basis of a valuation carried out by the directors at the balance sheet date based on their opinion of the open market value at that date. Deferred tax has been calculated on the revalued amounts and provided for within the financial statements.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

18,839

2,450

Amounts owed by associates

14,565

14,565

Other debtors

13,782

17,314

47,186

34,329

The directors consider the carrying value of trade and other receivables approximate to their fair values.

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Bank loans and overdrafts

2,500

8,333

Trade creditors

363,839

378,913

Taxation and social security

67,357

33,405

Other creditors

253,971

211,045

687,667

631,696

The directors consider the carrying amounts of current liabilities approximate to their fair values.

Included within trade creditors is a balance of £63,608 relating to invoices issued by a supplier. The company is currently disputing these invoices and legal proceedings are ongoing.

The directors consider it appropriate to continue recognising the invoices as creditors at the reporting date, but to highlight that the amounts are subject to dispute. The ultimate liability will depend on the outcome of the proceedings.

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Bank loans

3,333

-

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2024

2023

£

£

Within one year

5,955

-

Between one and five years

10,432

-

16,387

-

9.	PROVISIONS FOR LIABILITIES

2024

2023

£

£

Deferred tax

19,173

17,838

Deferred

tax

£

Balance at 1 January 2024

17,838

Provided during year

1,335

Balance at 31 December 2024

19,173

10.

RESERVES

PROFIT AND LOSS RESERVES

The Profit and loss account comprises all current and prior period retained profit and losses after deducting any distributions made to the company's shareholders. This is a distributable reserve.

REVALUATION RESERVES

Revaluation reserves consists of fair value adjustments of £83,524 less the corresponding deferred tax calculated on the fair value of £15,870 in relation to freehold properties. This is a non-distributable reserve.

11.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 December 2024 and 31 December 2023:

2024

2023

£

£

R Austin

Balance outstanding at start of year

(39,272

)

(55,772

)

Amounts advanced

3,000

16,500

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

(36,272

)

(39,272

)

P Martin

Balance outstanding at start of year

3,307

3,307

Amounts repaid

(3,370

)

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

(63

)

3,307

12.	RELATED PARTY TRANSACTIONS

At the balance sheet date, included in trade creditors are amounts due to Southern Industrial Pipeline Services Ltd of £31,707 (2023 - £31,707).

At the balance sheet date, included in amount owed by associates were amounts of £14,565 (2023 - £14,565) due from Southern Industrial Pipeline Services Limited, a connected company in which R Austin is the director.

As at the balance sheet date, included in other creditors are amounts due to directors, R Austin of £36,272 (2023 - £39,272) and P Martin of £63 (2023 - £3,307 in other debtors). This loan is interest free and repayble on demand.