| Borehole Solutions Ltd |
| Notes to the Accounts |
| for the year ended 31 October 2025 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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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 from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. 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. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Leasehold property |
2% or 20% straight line |
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Plant and machinery |
25% straight line |
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Fixtures, fittings, tools and equipment |
33% or 20% straight line |
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Motor vehicles |
25% straight line |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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| 2 |
Employees |
2025 |
|
2024 |
| Number |
Number |
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Average number of persons employed by the company |
24 |
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24 |
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| 3 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery etc |
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Motor vehicles |
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Total |
| £ |
£ |
£ |
£ |
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Cost |
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At 1 November 2024 |
69,085 |
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1,173,868 |
|
873,221 |
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2,116,174 |
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Additions |
12,951 |
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293,312 |
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140,303 |
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446,566 |
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Disposals |
(6,513) |
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(452,958) |
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(120,590) |
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(580,061) |
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At 31 October 2025 |
75,523 |
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1,014,222 |
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892,934 |
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1,982,679 |
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Depreciation |
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At 1 November 2024 |
18,784 |
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1,033,753 |
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685,016 |
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1,737,553 |
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Charge for the year |
4,038 |
|
163,475 |
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119,624 |
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287,137 |
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On disposals |
(6,513) |
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(431,614) |
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(92,295) |
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(530,422) |
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At 31 October 2025 |
16,309 |
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765,614 |
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712,345 |
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1,494,268 |
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Net book value |
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At 31 October 2025 |
59,214 |
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248,608 |
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180,589 |
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488,411 |
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At 31 October 2024 |
50,301 |
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140,115 |
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188,205 |
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378,621 |
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Finance leases and hire purchase contracts |
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Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements. |
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2025 |
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2024 |
| £ |
£ |
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Plant and machinery |
209,481 |
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47,241 |
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Motor vehicles |
180,297 |
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187,765 |
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389,778 |
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235,006 |
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| 4 |
Investments |
| Investments in |
| subsidiary |
| undertakings |
| £ |
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Cost |
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At 1 November 2024 |
240 |
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At 31 October 2025 |
240 |
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| 5 |
Debtors |
2025 |
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2024 |
| £ |
£ |
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Trade debtors |
982,725 |
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1,062,428 |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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1,140,440 |
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1,046,024 |
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Overdrawn directors loan |
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- |
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32,659 |
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Other debtors |
144,179 |
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127,417 |
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2,267,344 |
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2,268,528 |
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| 6 |
Creditors: amounts falling due within one year |
2025 |
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2024 |
| £ |
£ |
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Bank loans and overdrafts |
27,634 |
|
158,200 |
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Obligations under finance lease and hire purchase contracts |
230,225 |
|
156,283 |
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Trade creditors |
384,926 |
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379,364 |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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185,010 |
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209,138 |
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Factoring |
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555,518 |
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652,498 |
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Director's account |
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337 |
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- |
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Taxation and social security costs |
599,395 |
|
731,805 |
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Other creditors |
115,179 |
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152,013 |
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2,098,224 |
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2,439,301 |
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Obligations under finance lease and hire purchase of £230,225 (2024: £156,283) are secured on the assets concerned.
Included in bank loans and overdrafts above is one (2024: one) bank loan secured against an asset amounting to £4,300 (2024: £4,212).
The factoring facility of £555,518 (2024: £652,498) is secured against the assets of the company. |
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| 7 |
Creditors: amounts falling due after one year |
2025 |
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2024 |
| £ |
£ |
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Bank loans |
8,151 |
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34,883 |
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Obligations under finance lease and hire purchase contracts |
354,088 |
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208,837 |
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362,239 |
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243,720 |
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Obligations under finance lease and hire purchase of £354,088 (2024: £208,837) are secured on the assets concerned.
Included in bank loans and overdrafts above is one (2024: one) bank loan secured against an asset amounting to £8,238 (2024: £11,549). |
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| 8 |
Loans |
2025 |
|
2024 |
| £ |
£ |
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Creditors include: |
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Secured bank loans |
12,451 |
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15,762 |
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Loans are secured over the assets of the company |
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| 9 |
Other financial commitments |
2025 |
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2024 |
| £ |
£ |
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Total future minimum payments under non-cancellable operating leases |
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321,316 |
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364,295 |
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| 10 |
Related party transactions |
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The directors drew salaries of £18,192 (2024: £18,192) during the year. The director maintains a loan account with the company. At the beginning of the year the company was owed £32,659 by the director. During the year there were advances of £188,911 and repayments of £221,907. At the year end the company owed the director £337. During the year interest of £2,637 was charged and no amounts were written off.
The company loaned money to and from and paid expenses on behalf of subsidiary companies of £159,428 during the year. The balance due to the company at the year end was £763,575 (2024: £604,147). This amount is interest free and repayable on demand.
Trade Debtors of £376,864 due from subsidiary companies are disclosed in Debtors due from group undertakings. Trade Creditors of £185,010 due to subsidiary companies are disclosed in Creditors due to group undertakings. |
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| 11 |
Other information |
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Borehole Solutions Ltd is a private company limited by shares and incorporated in England. Its registered office is: |
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Sapphire Heights Courtyard |
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31 Tenby Street North |
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Birmingham |
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West Midlands |
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B1 3ES |