CCSS Fire & Security Limited - Limited company accounts 23.1

REGISTERED NUMBER: 03543850 (England and Wales)

CCSS FIRE & SECURITY LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Income and Retained Earnings

8

Balance Sheet

9

Notes to the Financial Statements

10

DIRECTORS:

A J Wheal

M L Wheeler

D Pugh

REGISTERED OFFICE:

4 Swanbridge Industrial Park

Black Croft Road

Witham

Essex

CM8 3YN

REGISTERED NUMBER:

03543850 (England and Wales)

AUDITORS:

Hopper Williams & Bell Limited

Statutory Auditor

Highland House

Mayflower Close

Chandler's Ford

Eastleigh

Hampshire

SO53 4AR

The directors present their strategic report for the year ended 30 September 2022.

REVIEW OF BUSINESS

CCSS Fire & Security is a specialist provider in fire, security and electrical servicing, reactive repairs and installations. He business predominantly serves the housing market. We promote quality, integrity and reliability in or teams in order to deliver an excellent service to all customers.

Following acquisition by the EA-RS Group in early 2021, CCSS has continued it's focus of achieving organic growth by securing additional work from existing customers. In the period under review, we have expanded our strategy through investment in people and processes aimed at securing business with new customers via tender processes for both direct contracts and framework agreements. We anticipate further significant growth in the following financial year.

Our key performance indicators (KPI's) covering financial and non-financial measures, are as follows;

Unit

Year to Sep 2022

10 months to Sep 2021

Turnover

£

14,555,949

11,204,508

Turnover growth

%

10.8

6.9

Profit before tax

£

703,854

789,389

Staff attrition

%

3

6

No. of customers

No.

173

185

Customer sites attended

No.

8,549

8,154

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks to the business are;

-To mis-manage the life safety and security equipment at a client site resulting in a claim for contractual damages

-To provide defective design services to a client resulting in inadequate fire or security protection

The group has significant technical expertise and systems of management control and supervision borne out by its industry accreditations. These, combined with our unblemished track record over many years of trading provides comfort that the above risks are being properly mitigated.

ON BEHALF OF THE BOARD:

M L Wheeler - Director

10 March 2023

The directors present their report with the financial statements of the company for the year ended 30 September 2022.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the installation of security products.

DIVIDENDS

No dividends will be distributed for the year ended 30 September 2022.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2021 to the date of this report.

A J Wheal

M L Wheeler

Other changes in directors holding office are as follows:

D Pugh was appointed as a director after 30 September 2022 but prior to the date of this report.

S Kerr ceased to be a director after 30 September 2022 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 company will continue in business.

The directors are 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Hopper Williams & Bell Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M L Wheeler - Director

10 March 2023

Opinion

We have audited the financial statements of CCSS Fire & Security Limited (the 'company') for the year ended 30 September 2022 which comprise the Statement of Income and Retained Earnings, Balance Sheet and Notes to the Financial Statements, 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 our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 September 2022 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' 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 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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 financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

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. Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities even though the audit has been properly planned and performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, and the industry in which it operates. These include but are not limited to compliance with the Companies Act 2006, UK Generally Accepted Accounting Principles and the relevant tax compliance regulations for the company.

- We obtained an understanding of how the company is complying with these frameworks through discussions with management.

- We enquired with management whether there were any instances of non-compliance with laws and regulations or whether they had knowledge of actual or suspected fraud. These enquiries are corroborated through follow-up audit procedures including but not limited to a review of legal and professional costs and correspondence.

- We assessed the susceptibility of the company's financial statements to material misstatement, including the risk of fraud and management override of controls. We designed our audit procedures to respond to this assessment, including the identification and testing of any related party transactions and the testing of journal transactions that arise from management estimates, that are determined to be of significant value or unusual in their nature.

- We assessed the appropriateness of the collective competence and capabilities of the engagement team, including consideration of the engagement team's knowledge and understanding of the industry in which the company operates in, and their practical experience through training and participation with audit engagements of a similar nature.

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 Report of the Auditors.

Use of our report

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 a Report of the Auditors 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.

Alan Williams FCA (Senior Statutory Auditor)

for and on behalf of Hopper Williams & Bell Limited

Statutory Auditor

Highland House

Mayflower Close

Chandler's Ford

Eastleigh

Hampshire

SO53 4AR

10 March 2023

TURNOVER

3

14,555,949

11,244,508

Cost of sales

(10,142,959

)

(7,568,695

)

GROSS PROFIT

4,412,990

3,675,813

Administrative expenses

(3,832,182

)

(2,888,293

)

580,808

787,520

Other operating income

134,142

13,533

OPERATING PROFIT

5

714,950

801,053

Interest receivable and similar income

-

177

714,950

801,230

Interest payable and similar expenses

6

(11,097

)

(11,840

)

PROFIT BEFORE TAXATION

703,853

789,390

Tax on profit

7

77,279

77,116

PROFIT FOR THE FINANCIAL YEAR

781,132

866,506

Retained earnings at beginning of year

3,427,636

2,561,130

RETAINED EARNINGS AT END OF YEAR

4,208,768

3,427,636

FIXED ASSETS

Tangible assets

8

602,751

741,613

CURRENT ASSETS

Stocks

9

365,304

276,634

Debtors

10

5,720,309

4,624,477

Cash at bank and in hand

1,069,833

2,057,664

7,155,446

6,958,775

CREDITORS

Amounts falling due within one year

11

(3,464,743

)

(4,056,050

)

NET CURRENT ASSETS

3,690,703

2,902,725

TOTAL ASSETS LESS CURRENT LIABILITIES

4,293,454

3,644,338

CREDITORS

Amounts falling due after more than one year

12

(10,688

)

(85,595

)

PROVISIONS FOR LIABILITIES

16

(73,873

)

(130,982

)

NET ASSETS

4,208,893

3,427,761

CAPITAL AND RESERVES

Called up share capital

17

125

125

Retained earnings

18

4,208,768

3,427,636

SHAREHOLDERS' FUNDS

4,208,893

3,427,761

The financial statements were approved by the Board of Directors and authorised for issue on 10 March 2023 and were signed on its behalf by:

M L Wheeler - Director

1.	STATUTORY INFORMATION

CCSS Fire & Security 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.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standards applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements

The financial statements contain information about CCSS Fire & Security Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, EA-RS Fire Engineering Group Limited, 4 Swanbridge Industrial Park, Black Croft Road, Witham. Essex, CM8 3YN.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Plant and machinery - 20% on reducing balance

Fixtures and fittings - 20% on cost

Motor vehicles - 25% on reducing balance

Computer equipment - 20% on cost

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

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

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial assets

The company has elected to apply the provision of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include trade and other receivables and cash and bank balances are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financial transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Financial liabilities

Financial liabilities are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Equity instruments

Basic financial assets, which include trade and other receivables and cash and bank balances are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financial transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Impairment of financial assets

Financial assets 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 in the profit and loss account.

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 the company would receive for the asset if it were to be sold at the reporting date.

For financial assets 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. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

If there is a decrease in the impairment loss arising from an event occuring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the profit and loss.

Derecognition of financial assets and financial liabilities

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Offsetting financial assets and financial liabilities

Financial assets are liabilities are offset against and the net amount reported in the balance sheet when there is an 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.

3.

TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below.

2022

2021

£

£

Fire & security services

£14,555,949

£11,244,508

An analysis of turnover by geographical market is given below

2022

2021

£

£

United Kingdom

£14,555,949

£11,244,508

4.	EMPLOYEES AND DIRECTORS

Period

1.12.20

Year Ended

to

30.9.22

30.9.21

£

£

Wages and salaries

3,414,446

2,536,732

Social security costs

390,064

283,499

Other pension costs

66,815

71,393

3,871,325

2,891,624

The average number of employees during the year was as follows:

Period

1.12.20

Year Ended

to

30.9.22

30.9.21

Directors

1

2

Staff

109

98

110

100

Period

1.12.20

Year Ended

to

30.9.22

30.9.21

£

£

Directors' remuneration

90,000

106,806

Directors' pension contributions to money purchase schemes

661

21,902

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

Period

1.12.20

Year Ended

to

30.9.22

30.9.21

£

£

Hire of plant and machinery

31,915

33,030

Depreciation - owned assets

36,475

37,214

Depreciation - assets on hire purchase contracts

84,187

89,562

Profit on disposal of fixed assets

(55,930

)

(24,971

)

Auditors' remuneration

16,600

14,250

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.12.20

Year Ended

to

30.9.22

30.9.21

£

£

Bank loan interest

-

55

Hire purchase

11,097

11,785

11,097

11,840

7.

TAXATION

Analysis of the tax credit

The tax credit on the profit for the year was as follows:

Period

1.12.20

Year Ended

to

30.9.22

30.9.21

£

£

Current tax:

UK corporation tax

146,467

170,324

R&D tax credit in respect of

prior periods

(206,637

)

(249,952

)

Total current tax

(60,170

)

(79,628

)

Deferred tax

(17,109

)

2,512

Tax on profit

(77,279

)

(77,116

)

UK corporation tax has been charged at 19% (2021 - 19%).

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

Period

1.12.20

Year Ended

to

30.9.22

30.9.21

£

£

Profit before tax

703,853

789,390

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

133,732

149,984

Effects of:

Expenses not deductible for tax purposes

118

55

Income not taxable for tax purposes

(10,627

)

(4,744

)

Depreciation in excess of capital allowances

23,244

25,029

R&D tax credit in respect of prior periods

(206,637

)

(249,952

)

Deferred Tax

(17,109

)

2,512

Total tax credit

(77,279

)

(77,116

)

8.	TANGIBLE FIXED ASSETS

Fixtures

Long

Plant and

and

leasehold

machinery

fittings

£

£

£

COST

At 1 October 2021

351,901

37,396

138,916

Additions

-

-

-

Disposals

-

(2,000

)

(13,750

)

At 30 September 2022

351,901

35,396

125,166

DEPRECIATION

At 1 October 2021

70,800

26,925

127,925

Charge for year

6,800

1,937

9,117

Eliminated on disposal

-

(2,000

)

(12,065

)

At 30 September 2022

77,600

26,862

124,977

NET BOOK VALUE

At 30 September 2022

274,301

8,534

189

At 30 September 2021

281,101

10,471

10,991

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 October 2021

961,457

206,134

1,695,804

Additions

18,790

10,274

29,064

Disposals

(208,789

)

-

(224,539

)

At 30 September 2022

771,458

216,408

1,500,329

DEPRECIATION

At 1 October 2021

577,013

151,528

954,191

Charge for year

91,504

11,304

120,662

Eliminated on disposal

(163,210

)

-

(177,275

)

At 30 September 2022

505,307

162,832

897,578

NET BOOK VALUE

At 30 September 2022

266,151

53,576

602,751

At 30 September 2021

384,444

54,606

741,613

The net book value of tangible fixed assets includes £ 232,934 (2021 - £ 333,513 ) in respect of assets held under hire purchase contracts.

The depreciation charge for the year relating to HP assets was £84,187 (2021: £89,563).

9.

STOCKS

2022

2021

£

£

Stocks

365,304

276,634

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

2,651,279

2,028,296

Amounts owed by group undertakings

2,267,769

1,719,364

Amounts recoverable on contract

272,645

-

Other debtors

-

275,857

Tax

71,402

88,408

Prepayments and accrued income

457,214

512,552

5,720,309

4,624,477