South London Heating Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—6

1. General Information

South London Heating Limited is a private company, limited by shares, incorporated in England & Wales, registered number 06408521 . The registered office is 67 High Street, London, SE20 7HW.

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

The company's financial statements have been prepared on a going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the company's needs. In accessing going concern, the directors have a reasonable expectation that the company will continue as a going concern and is able to meet all of its obligations as they fall due for a minimum of 12 months from the date of approval of these financial statements.

2.3. Turnover

Turnover is recognised to the extent there is probable economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover from a contract to provide services is recognised in the period in which the services are provided.

2.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets are stated at historical cost less accumulated depreciation and any impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged to profit or loss over the estimated useful economic lives as follows -

Motor Vehicles	25% on a reducing balance basis
Fixtures & Fittings	25% on a reducing balance basis
Computer Equipment	25% on a reducing balance 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.

Repairs and maintenance costs are charged to profit or loss during the period in which they are incurred.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

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. Any impairment loss is recognised immediately as an expense within the profit or loss.

2.5. Leasing and Hire Purchase Contracts

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Leases in which the company assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. All other leases are classified as operating leases.

Leased assets acquired by way of finance lease are stated on initial recognition at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease, including any incremental costs directly attributable to negotiating and arranging the lease. At initial recognition a finance lease liability is recognised equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments, calculated using the interest rate implicit in the lease.

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability using the rate implicit in the lease. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are charged as expenses in the periods in which they are incurred.

Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit and loss account on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation; in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in profit and loss over the term of the lease an an integral part of the total lease expenses.

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South London Heating Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2025

2.6. Financial Instruments

Trade and other debtors / creditors

Trade and other debtors are recognised initially at transaction prices less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

Impairment of financial assets

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found an impairment loss is recognised within profit or loss.

For financial assets that are measured at amortised cost, the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated cash flows discounted at the asset’s original effective interest rate.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset’s carrying amount and the best estimate of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

2.7. 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.

2.8. Pensions

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions in a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in profit or loss in the periods during which services are rendered by employees.

2.9. Government Grant

Government grants are recognised in the profit and loss account in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.

All grants in the profit and loss account are recognised when all conditions for receipt have been complied with.

2.10. Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders.

3. Average Number of Employees

Average number of employees during the year was as follows: 8 (2024: 7)

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South London Heating Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2025

4. Tangible Assets

	Motor Vehicles	Fixtures & Fittings	Computer Equipment	Total
	£	£	£	£
Cost
As at 1 November 2024	103,998	1,438	11,561	116,997
Additions	-	677	-	677

As at 31 October 2025	103,998	2,115	11,561	117,674

Depreciation
As at 1 November 2024	51,545	1,438	7,581	60,564
Provided during the period	13,114	102	995	14,211

As at 31 October 2025	64,659	1,540	8,576	74,775

Net Book Value
As at 31 October 2025	39,339	575	2,985	42,899

As at 1 November 2024	52,453	-	3,980	56,433

Included within Motor Vehicles costs as at 31 October 2025 are assets that are held under finance leases totalling £79,421 (2024: £96,930).

5. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	49,964	24,419
Prepayments and accrued income	9,657	9,553
Other debtors	142,866	88,903

	202,487	122,875

6. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	10,254	9,372
Trade creditors	94,084	84,158
Corporation tax	18,038	16,066
Other taxes and social security	6,757	7,653
VAT	23,626	22,967
Other creditors	5,831	27,321
Accruals and deferred income	5,500	5,500

	164,090	173,037

Included within other creditors are outstanding pension contributions of £1,194 (2024: £1,553).

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

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	32,808	43,062

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South London Heating Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2025

8. Share Capital

	2025	2024
	£	£
Allotted, Called up and fully paid	3	3

9. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases are as following:

	2025	2024
	£	£
Not later than one year	13,600	13,600
Later than one year and not later than five years	31,733	45,333

	45,333	58,933

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		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		42,899		56,433

			42,899		56,433
CURRENT ASSETS
Debtors	5	202,487		122,875
Cash at bank and in hand		61,654		157,330

		264,141		280,205
Creditors: Amounts Falling Due Within One Year	6	(164,090 )		(173,037 )

NET CURRENT ASSETS (LIABILITIES)			100,051		107,168

TOTAL ASSETS LESS CURRENT LIABILITIES			142,950		163,601

Creditors: Amounts Falling Due After More Than One Year	7		(32,808 )		(43,062 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(10,722 )		(10,722 )

NET ASSETS			99,420		109,817

CAPITAL AND RESERVES
Called up share capital	8		3		3
Profit and Loss Account			99,417		109,814

SHAREHOLDERS' FUNDS			99,420		109,817