Registered number: 11051546
FOR THE YEAR ENDED 31 AUGUST 2025
STM GROUP HOLDINGS LTD
COMPANY INFORMATION
STM GROUP HOLDINGS LTD
CONTENTS
STM GROUP HOLDINGS LTD
GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 31 AUGUST 2025
The Director presents his Report and Financial Statements for the 12 months ended 31 August 2025.
The 12-month reporting period follows a required 7-month period, resulting in certain adjustments to the Group’s payroll processes. Over the last 12 months, the Group has continued its strategic consolidation, applying progressively stronger financial disciplines alongside a robust pipeline of new business opportunities. This is expected to support enhanced operational control, with management focused on delivering improved profitability across the Group going forward.
The Group has established a stable platform from which it anticipates continued growth in both revenue and profitability. A fundamental review of commercial and organisational processes has improved visibility over the financial contribution of new business, both actual and forecast. This has supported enhanced planning and forecasting, and, when combined with regular structural reviews and prudent financial management, has delivered efficiencies resulting in reduced overhead costs across the Group.
I am very confident that The Group remains in a strong trading position, with healthy operating and net margins and effective cash management. Forecast profits remain robust, reflecting an improved outlook and reinforcing a positive overall position. However, challenging trading conditions persist. In response, the Board of Directors of STM Group Holding Ltd is satisfied that all necessary corrective actions have been implemented and continue to be applied, with a resulting positive impact on both performance and the Group’s reputation.
The Group has established a stable platform from which it anticipates continued growth in both revenue and profitability. A fundamental review of commercial and organisational processes has improved visibility over the financial contribution of new business, both actual and forecast. This has supported enhanced planning and forecasting, and, when combined with regular structural reviews and prudent financial management, has delivered efficiencies resulting in reduced overhead costs across the Group.
I am very confident that The Group remains in a strong trading position, with healthy operating and net margins and effective cash management. Forecast profits remain robust, reflecting an improved outlook and reinforcing a positive overall position. However, challenging trading conditions persist. In response, the Board of Directors of STM Group Holding Ltd is satisfied that all necessary corrective actions have been implemented and continue to be applied, with a resulting positive impact on both performance and the Group’s reputation.
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STM GROUP HOLDINGS LTD
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2025
It is also pleasing to report that the 4.1% increase to the National Minimum Wage and 6.7% increase to the Real Living Wage (effective April/May 2025) has been accepted by customers as an exceptional cost and has therefore not adversely impacted contract margins across the Group. These mandatory cost increases will continue to be appropriately reflected within contract negotiations going forward.
The Group continues to observe a strong customer focus on sustainability and carbon reduction, with ongoing expectations to demonstrate commitment to these requirements on a regular basis.
The Group is also closely monitoring the introduction of Great British Rail and its potential impact on the rail sector. While business-as-usual activity is currently anticipated, the Group has joined the Railway Development Group (RDG) to ensure it is well positioned to respond swiftly to any material policy or structural changes within the industry.
Financial risk
Due to the nature of the industries in which the Group operates, the Group is exposed to a range of financial risks, including credit risk, liquidity risk, and interest rate risk.
Credit risk
The Group offers credit terms to its customers, allowing payment after the delivery of services. The Group’s exposure to credit risk is mitigated through the maintenance of strong and ongoing customer relationships, as well as active monitoring of receivables.
Liquitity risk
The Group seeks to ensure that sufficient liquidity is maintained to meet day-to-day operational requirements and support future development needs. This is managed through the use of invoice financing arrangements, which provide additional short-term funding flexibility.
Interest risk
The Group keeps interest rate exposure under review to ensure this is factored into any business decisions.
The Group continues to observe a strong customer focus on sustainability and carbon reduction, with ongoing expectations to demonstrate commitment to these requirements on a regular basis.
The Group is also closely monitoring the introduction of Great British Rail and its potential impact on the rail sector. While business-as-usual activity is currently anticipated, the Group has joined the Railway Development Group (RDG) to ensure it is well positioned to respond swiftly to any material policy or structural changes within the industry.
Financial risk
Due to the nature of the industries in which the Group operates, the Group is exposed to a range of financial risks, including credit risk, liquidity risk, and interest rate risk.
Credit risk
The Group offers credit terms to its customers, allowing payment after the delivery of services. The Group’s exposure to credit risk is mitigated through the maintenance of strong and ongoing customer relationships, as well as active monitoring of receivables.
Liquitity risk
The Group seeks to ensure that sufficient liquidity is maintained to meet day-to-day operational requirements and support future development needs. This is managed through the use of invoice financing arrangements, which provide additional short-term funding flexibility.
Interest risk
The Group keeps interest rate exposure under review to ensure this is factored into any business decisions.
During the current 12-month reporting period, the Group made a pre-tax Profit of £155,227 This year’s result albeit lower than previous years, (which was a result of structural changes within the business) is still encouraging. These changes will improve future results, combined with a focus on delivering the 5 Year Business Plan, despite the challenging times. The business has continued to invest in people and infrastructure, whilst demonstrating admirable control over key costs. The Balance Sheet also continues to improve, with the effective management of both debt and liquidity. These improvements are, clearly, evident when compared to previous financial years.
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STM GROUP HOLDINGS LTD
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2025
The group's other key performance indicator is considered to be its net assets position. This is as follows for the last two periods:
31 August 2025 31 August 2024
Net liabilities £581,472 £655,548
31 August 2025 31 August 2024
Net liabilities £581,472 £655,548
This report was approved by the board and signed on its behalf.
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STM GROUP HOLDINGS LTD
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 31 AUGUST 2025
The director presents his report and the financial statements for the year ended 31 August 2025.
The director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the period, after taxation, amounted to £74,076 (2024 - £422,353).
No dividends have been paid in the year (Period ended 31 August 2024: £Nil).
The director who served during the period was:
The group is looking to grow each year. The Director considers that the company is well positioned to keep the ongoing uncertainty of the economic climate following Brexit minimal.
The group oppertes in a highly competitive market and profit margins are constantly squeezed. The Director is therefore conscious that costs and overheads are constantly monitored to maintain a level of profitability within the group. The Director expects the way forward for growth is by building on current relationships and efficiency.
The group oppertes in a highly competitive market and profit margins are constantly squeezed. The Director is therefore conscious that costs and overheads are constantly monitored to maintain a level of profitability within the group. The Director expects the way forward for growth is by building on current relationships and efficiency.
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STM GROUP HOLDINGS LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2025
The group is an Equal Opportunities and Diversity Aware employer, committed to promoting equality, diversity and inclusion amongst its workforce, whilst eliminating discrimination. Through its Support, Trust, Manage Vision, STM treats all employees as 'internal customers'. The STM aim is to create an inclusive environment and culture, with a diverse workforce that is representative of all sections of society, where everyone has the opportunity to fully contribute, and achieve, individual, full potential.
It is STM's policy to treat all employees (and job applicants) fairly and equally, regardless of individual sex, sexual orientation, gender re-assignment, marriage or civil partnership, pregnancy or maternity, race, colour, creed, nationality, ethnic or national origin, marital status, religion or belief, age, disability, or union membership status.
STM's policy is to recruit disabled workers for those vacancies that they are able to fill. All neccessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate for their aptitudes and abilities.
STM, consequently, commits to ensuring every employee is given equal opportunity in every aspect of their working role, with individual differences (and similarities) not only being embraced, but also where individual employee contribution is recognised, celebrated and valued. All STM employees will be given the necessary support and encouragement to develop individual ability and utilise unique talent.
This policy to all aspects of employment, recruitment and related Terms & Conditions of Employment, including pay and benefits, training, appraisals, career development, conduct at work, disciplinary and grievance procedures, termination of employment and all other aspects of employment.
It is STM's policy to treat all employees (and job applicants) fairly and equally, regardless of individual sex, sexual orientation, gender re-assignment, marriage or civil partnership, pregnancy or maternity, race, colour, creed, nationality, ethnic or national origin, marital status, religion or belief, age, disability, or union membership status.
STM's policy is to recruit disabled workers for those vacancies that they are able to fill. All neccessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate for their aptitudes and abilities.
STM, consequently, commits to ensuring every employee is given equal opportunity in every aspect of their working role, with individual differences (and similarities) not only being embraced, but also where individual employee contribution is recognised, celebrated and valued. All STM employees will be given the necessary support and encouragement to develop individual ability and utilise unique talent.
This policy to all aspects of employment, recruitment and related Terms & Conditions of Employment, including pay and benefits, training, appraisals, career development, conduct at work, disciplinary and grievance procedures, termination of employment and all other aspects of employment.
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STM GROUP HOLDINGS LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2025
This disclosure has been prepared in accordance with the UK Government’s Streamlined Energy and Carbon Reporting (SECR) requirements. Greenhouse gas emissions have been calculated in line with the GHG Protocol Corporate Accounting and Reporting Standard, using the latest available UK Government greenhouse gas conversion factors (2025).
The organisational boundary for this disclosure is based on operational control, covering all UK operations of STM Group (UK) Ltd, including serviced offices and operational activities. All emissions reported relate to UK operations only.
Emissions Breakdown
Scope 1 – Direct Emissions
Scope 1 emissions relate to fuel consumption from usage of the STM Group (UK) Ltd owned specialist Cleaning Van.
Scope 2 – Electricity (Location-Based)
Scope 2 emissions relate to electricity consumption within serviced office environments.Consumption is calculated with reference to invoiced actual energy usage. A location-based methodology has been applied, in line with SECR requirements.
The organisational boundary for this disclosure is based on operational control, covering all UK operations of STM Group (UK) Ltd, including serviced offices and operational activities. All emissions reported relate to UK operations only.
Emissions Breakdown
Scope 1 – Direct Emissions
Scope 1 emissions relate to fuel consumption from usage of the STM Group (UK) Ltd owned specialist Cleaning Van.
Scope 2 – Electricity (Location-Based)
Scope 2 emissions relate to electricity consumption within serviced office environments.Consumption is calculated with reference to invoiced actual energy usage. A location-based methodology has been applied, in line with SECR requirements.
Scope 3 – Other Indirect Emissions
Scope 3 emissions disclosed are emissions arise from business travel undertaken in rental cars or use of personal vehicles where the company is responsible for purchasing the fuel.
Intensity Ratio
Total emissions intensity has been calculated as:
0.89 tCO2e per £1m revenue(based on total emissions of 35.73 tCO2e and annual revenue of £40m)
This metric has been selected as it provides a clear and consistent measure of emissions relative to business activity.
Energy Efficiency Actions (FY2025)
Scope 3 emissions disclosed are emissions arise from business travel undertaken in rental cars or use of personal vehicles where the company is responsible for purchasing the fuel.
Intensity Ratio
Total emissions intensity has been calculated as:
0.89 tCO2e per £1m revenue(based on total emissions of 35.73 tCO2e and annual revenue of £40m)
This metric has been selected as it provides a clear and consistent measure of emissions relative to business activity.
Energy Efficiency Actions (FY2025)
During the reporting period, STM Group (UK) Ltd implemented several initiatives to improve energy efficiency and reduce emissions, including:
∙Reduction in non-essential travel through increased use of remote meetings
∙Operational route optimisation across contracts to reduce mileage
∙Increased use of public transport where operationally viable
∙Review and management of office energy usage, including promotion of energy-saving behaviours
∙Ongoing refinement of deployment models to reduce unnecessary travel and standby time
These actions have contributed to a significant reduction in emissions compared to the baseline year
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STM GROUP HOLDINGS LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2025
Methodology and Assumptions
∙Emissions calculated using UK Government Greenhouse Gas Conversion Factors (latest available version)
∙Calculations aligned to the GHG Protocol Corporate Accounting and Reporting Standard
∙Scope 2 emissions reported using a location-based approach (as required under SECR)
∙Emissions from combustion of fuel for transport purposes (scope 1) and Emissions from business travel in rental cars or employee-owned vehicles where company is responsible for purchasing the fuel (Scope 3) have been calculated from mileage data.
∙Where data on specific vehicle sizes was not available, the relevant emissions factor for average vehicle size was applied in accordance with UK Government guidelines’
The director at the time when this Director's report is approved has confirmed that:
∙so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information
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STM GROUP HOLDINGS LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2025
There have been no significant events affecting the Group since the year end.
The auditors, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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STM GROUP HOLDINGS LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STM GROUP HOLDINGS LTD
We have audited the financial statements of STM Group Holdings Ltd (the ' Company') and its subsidiaries (the 'Group') for the period ended 31 August 2025, which comprise the Consolidated Statement of Comprehensive Income, the , the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
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STM GROUP HOLDINGS LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STM GROUP HOLDINGS LTD (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Director's Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Director's Report.
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STM GROUP HOLDINGS LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STM GROUP HOLDINGS LTD (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙Enquiry of management and those charged with governance around actual and potential litigation and
claims;
claims;
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
∙Reviewing minutes of meetings of those charged with governance;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance
with applicable laws and regulations.
with applicable laws and regulations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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STM GROUP HOLDINGS LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STM GROUP HOLDINGS LTD (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants and Statutory Auditors
6th Floor
2 London Wall Place
London
29 May 2026
MHA is the trading name of MHA Audit Services LLP, a Limited Liability Partnership (registered number OC455542)
MHA is the trading name of MHA Audit Services LLP, a Limited Liability Partnership (registered number OC455542)
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STM GROUP HOLDINGS LTD
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 AUGUST 2025
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STM GROUP HOLDINGS LTD
REGISTERED NUMBER: 11051546
CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 37 form part of these financial statements.
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STM GROUP HOLDINGS LTD
REGISTERED NUMBER: 11051546
COMPANY BALANCE SHEET
AS AT 31 AUGUST 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 37 form part of these financial statements.
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STM GROUP HOLDINGS LTD
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2025
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STM GROUP HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2025
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STM GROUP HOLDINGS LTD
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 AUGUST 2025
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STM GROUP HOLDINGS LTD
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 31 AUGUST 2025
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STM GROUP HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
STM Group Holdings Ltd is a private company limited by shares incorporated in England and Wales in the United Kingdom. The registered office of the entity is Solar House, 1st Floor, Romford Road, London, E15 4LJ. The principal activity of the company is that of a holding company. The principal activity of the group is security.
2.Accounting policies
The financial statements have been prepared on a going concern basis under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The financial statements are presented in £ sterling, the functional currency, rounded to the nearest £1.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The financial statements are presented in £ sterling, the functional currency, rounded to the nearest £1.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
The Group has net current liabilities of £1,157,217 (31 August 2024: £1,396,116)
The financial statements have been prepared on a going concern basis which assumes that the Company and Group will continue in operational existence for the foreseeable future. The Director has considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making his assessment.
Based on these assessments and having regards to the resources available to the entity and Group, the Director has concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts.
The financial statements have been prepared on a going concern basis which assumes that the Company and Group will continue in operational existence for the foreseeable future. The Director has considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making his assessment.
Based on these assessments and having regards to the resources available to the entity and Group, the Director has concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts.
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STM GROUP HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
2.Accounting policies (continued)
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STM GROUP HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
2.Accounting policies (continued)
Defined contribution pension plan
The Group operates a defined contribution pension plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.
The Group operates a defined contribution pension plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.
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STM GROUP HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
2.Accounting policies (continued)
Goodwill
Other intangible assets
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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STM GROUP HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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STM GROUP HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The
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STM GROUP HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
2.Accounting policies (continued)
impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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STM GROUP HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
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STM GROUP HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
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STM GROUP HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
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STM GROUP HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
10.Taxation (continued)
There were no factors that may affect future tax charges.
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STM GROUP HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
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STM GROUP HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
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STM GROUP HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
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STM GROUP HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
Page 34
STM GROUP HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
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Page 35
STM GROUP HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
20.Deferred taxation (continued)
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Share premium account
Profit and loss account
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £236,747 (31 August 2024: £236,747). Contributions totalling £80,363 were payable to (year ended 31August 2024: £458,889 receivable from) the fund at the balance sheet date and are included in other creditors.
Page 36
STM GROUP HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2025
During the year, Mr P B Simpson, the director has an outstanding loan from the Company. Interest of £7,576 (31 August 2024: £7,391) has been charged at commercial rates on overdrawn balances. As at 31 August 2025, Mr P B Simpson owed the Company £310,600 (31 August 2024: £303,261).The loan is unsecured and repayable on demand.
The group was under the control of the director, Mr P B Simpson, throughout the current year and prior year.
Page 37