REGISTERED NUMBER: 03046824 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2023 |
FOR |
SRS RAIL SYSTEM (HOLDINGS) LIMITED |
REGISTERED NUMBER: 03046824 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2023 |
FOR |
SRS RAIL SYSTEM (HOLDINGS) LIMITED |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 30 April 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Statement of Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
SRS RAIL SYSTEM (HOLDINGS) LIMITED |
COMPANY INFORMATION |
for the Year Ended 30 April 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors) |
2 Park Court |
Pyrford Road |
West Byfleet |
Surrey |
KT14 6SD |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
GROUP STRATEGIC REPORT |
for the Year Ended 30 April 2023 |
The directors present their strategic report of the company and the group for the year ended 30 April 2023. |
REVIEW OF BUSINESS |
The Board of Directors are satisfied with the results for the financial period. The Group's balance sheet remains strong with distributable reserves of £7,962,439. |
Turnover from the trading subsidiary saw a large increase in the period as expected which would have led to a profit if the company has not made a discretionary payment relating to prior years. The directors expect profitability to continue for the foreseeable future. The directors have also identified new markets and opportunities over the medium term which should reinforce the company's financial position. |
Cash reserves to fund future investment remain strong and the directors are satisfied with the current levels. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties facing the group continue to be those of trading in a restricted market where prices and margins can be influenced by political pressures. However, the directors are still of the opinion that their strategic plans are enabling them to meet these challenges and the results in the year confirm their assertions. |
The Group continues to maintain the importance of providing clients with a high quality specialist hire fleet. |
Other risks relate to exposure to downward values of investments, however, these are held for the long term and so this risk is considered to be low. |
FUTURE DEVELOPMENTS |
The company has maintained its' core base of customers and continues to provide high quality hire services. |
The group remains is in a good position to expand its' fleet of vehicles to meet increased future demands. New markets continue to be explored that are expected to open up in the short to middle term and the directors consider the group to be in a good position to exploit those opportunities. |
This model is continually monitored and is incorporated into its' future expansion opportunities. |
FINANCIAL STATEMENTS |
The accounts can be obtained by any person entitled to them by writing to the registered office shown on the information page of these accounts. The accounts, strategic report and directors' report were unqualified. |
FINANCIAL RISK MANAGEMENT |
The Group does not feel there is a material financial risk in relation to price exposure of financial instruments due to the industry in which it operates and it's own position regarding financial reserves. The Group's liquidity position has historically been secure and has continued to remain so during the year. Likewise adequate cash reserves have been retained by the Group to ensure financial stability for the foreseeable future. |
ON BEHALF OF THE BOARD: |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 April 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 April 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the provision of specialist services to the railway industry. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 April 2023 will be £ 80,305 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SRS RAIL SYSTEM (HOLDINGS) LIMITED |
Opinion |
We have audited the financial statements of SRS Rail System (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 30 April 2023 and of the group's loss 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 group 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 group's and the parent 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. |
Emphasis of matter |
We draw your attention to note 19 on page 23 in the financial statements which confirms the accounting treatment of contributions made to an incentive scheme out of reserves brought forward and the need to present a true and fair view. Our opinion is not modified in respect of this matter. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SRS RAIL SYSTEM (HOLDINGS) LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SRS RAIL SYSTEM (HOLDINGS) LIMITED |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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: |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity (and subsidiaries) and determined that the most significant are those that relate to: |
- FRS102 |
- Treatment of incentive scheme contributions |
- Employment law |
- Health and safety |
- Fraud in relation to revenue recognition |
We assessed the risks of material misstatement in respect of fraud as follows: |
- We made enquiries with management and directors |
- We made enquiries with our internal team that provides services to the organisation |
- We completed analytical procedures to identify any unusual or unexpected balances, figures and transactions |
- The audit team discussed and identified particular areas that were susceptible to misstatement as part of our fraud discussion |
- The audit team identified any fraud risk factors in its discussion of related party relationships and transactions |
Due to the nature of the business acting across the country, additional testing took place to ensure that expenses on staff credit cards was tested with the specific intention to look for potential fraudulent activities, none were noted. |
Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above. |
We gained an understanding of how instances on non-compliance with laws and regulations or knowledge of actual, suspected, or alleged fraud is documented by making enquiries with management and directors |
We corroborated our enquiries through reviewing correspondence with HM Revenue & Customs, Companies House, clients Solicitors invoices, reviewing the media and at the end of these enquiries, there was no contradictory evidence noted. |
We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach along with testing of bank payments and receipts that did not relate to Customers and Suppliers. We reviewed these transactions for any outside the normal course of business, none were identified. |
We considered the risk of fraud in relation to revenue recognition and completed detailed sales testing on the highest risk factor to ensure maximum testing was completed. We also completed significant testing in relation to cut off which is where the high risk is ascertained to be and were satisfied with the application of cut off in relation to the revenue recognition policies and FRS102. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SRS RAIL SYSTEM (HOLDINGS) LIMITED |
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. |
for and on behalf of |
Statutory Auditors) |
2 Park Court |
Pyrford Road |
West Byfleet |
Surrey |
KT14 6SD |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
for the Year Ended 30 April 2023 |
30.4.23 | 30.4.22 |
Notes | £ | £ |
TURNOVER | 6,221,761 | 4,576,947 |
Cost of sales | (3,239,284 | ) | (2,330,773 | ) |
GROSS PROFIT | 2,982,477 | 2,246,174 |
Administrative expenses | (3,137,496 | ) | (2,262,868 | ) |
OPERATING LOSS | 4 | (155,019 | ) | (16,694 | ) |
Income from fixed asset investments | 40,944 | 29,955 |
Interest receivable and similar income | 19,103 | 10,363 |
(LOSS)/PROFIT BEFORE TAXATION | (94,972 | ) | 23,624 |
Tax on (loss)/profit | 5 | (16,315 | ) | (4,528 | ) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME |
Reserves contributed to incentive scheme | (519,694 | ) | - |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(519,694 |
) |
- |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(630,981 |
) |
19,096 |
(Loss)/profit attributable to: |
Owners of the parent | (111,287 | ) | 19,096 |
Total comprehensive income attributable to: |
Owners of the parent | (630,981 | ) | 19,096 |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
CONSOLIDATED BALANCE SHEET |
30 April 2023 |
30.4.23 | 30.4.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 | - | - |
Tangible assets | 9 | 1,494,830 | 2,018,495 |
Investments | 10 | 1,030,900 | 989,955 |
Investment property | 11 | 1,014,062 | 1,014,062 |
3,539,792 | 4,022,512 |
CURRENT ASSETS |
Stocks | 12 | 109,437 | 82,028 |
Debtors | 13 | 1,456,539 | 1,185,635 |
Investments | 14 | 1,068,848 | 1,049,745 |
Cash at bank and in hand | 3,192,954 | 3,028,633 |
5,827,778 | 5,346,041 |
CREDITORS |
Amounts falling due within one year | 15 | 1,178,638 | 400,057 |
NET CURRENT ASSETS | 4,649,140 | 4,945,984 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
8,188,932 |
8,968,496 |
PROVISIONS FOR LIABILITIES | 16 | 120,160 | 188,438 |
NET ASSETS | 8,068,772 | 8,780,058 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 90,000 | 90,000 |
Share premium | 18 | 6,333 | 6,333 |
Capital redemption reserve | 18 | 10,000 | 10,000 |
Retained earnings | 18 | 7,962,439 | 8,673,725 |
SHAREHOLDERS' FUNDS | 8,068,772 | 8,780,058 |
The financial statements were approved by the Board of Directors and authorised for issue on 18 January 2024 and were signed on its behalf by: |
Mr S J Whatley - Director |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
COMPANY BALANCE SHEET |
30 April 2023 |
30.4.23 | 30.4.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
Investment property | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Share premium | 18 |
Capital redemption reserve | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 165,341 | 2,027,057 |
The financial statements were approved by the Board of Directors and authorised for issue on |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 30 April 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 May 2021 | 90,000 | 8,654,629 | 6,333 | 10,000 | 8,760,962 |
Changes in equity |
Total comprehensive income | - | 19,096 | - | - | 19,096 |
Balance at 30 April 2022 | 90,000 | 8,673,725 | 6,333 | 10,000 | 8,780,058 |
Changes in equity |
Dividends | - | (80,305 | ) | - | - | (80,305 | ) |
Total comprehensive income | - | (630,981 | ) | - | - | (630,981 | ) |
Balance at 30 April 2023 | 90,000 | 7,962,439 | 6,333 | 10,000 | 8,068,772 |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 30 April 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 May 2021 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | - |
Balance at 30 April 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 April 2023 |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 30 April 2023 |
30.4.23 | 30.4.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 909,241 | 144,403 |
Tax paid | (80,257 | ) | (114,520 | ) |
Net cash from operating activities | 828,984 | 29,883 |
Cash flows from investing activities |
Purchase of tangible fixed assets | - | (141,418 | ) |
Purchase of fixed asset investments | (40,945 | ) | (960,000 | ) |
Purchase of investment property | - | (1,014,062 | ) |
Sale of current asset investment | - | 995,000 |
Reserves contributed to incentive scheme | (519,694 | ) | - |
Rounding | (2 | ) | 1 |
Interest received | 19,103 | - |
Dividends received | 40,944 | - |
Interest reinvested | (19,103 | ) | - |
Net cash from investing activities | (519,697 | ) | (1,120,479 | ) |
Cash flows from financing activities |
Amount introduced by directors | 130,000 | 388,845 |
Amount withdrawn by directors | (194,661 | ) | (369,669 | ) |
Equity dividends paid | (80,305 | ) | - |
Net cash from financing activities | (144,966 | ) | 19,176 |
Increase/(decrease) in cash and cash equivalents | 164,321 | (1,071,420 | ) |
Cash and cash equivalents at beginning of year |
2 |
3,028,633 |
4,100,053 |
Cash and cash equivalents at end of year | 2 | 3,192,954 | 3,028,633 |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 30 April 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.4.23 | 30.4.22 |
£ | £ |
(Loss)/profit before taxation | (94,972 | ) | 23,624 |
Depreciation charges | 523,667 | 569,545 |
Finance income | (60,047 | ) | (40,318 | ) |
368,648 | 552,851 |
Increase in stocks | (27,409 | ) | (28,662 | ) |
Increase in trade and other debtors | (211,246 | ) | (214,186 | ) |
Increase/(decrease) in trade and other creditors | 779,248 | (165,600 | ) |
Cash generated from operations | 909,241 | 144,403 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 April 2023 |
30.4.23 | 1.5.22 |
£ | £ |
Cash and cash equivalents | 3,192,954 | 3,028,633 |
Year ended 30 April 2022 |
30.4.22 | 1.5.21 |
£ | £ |
Cash and cash equivalents | 3,028,633 | 4,100,053 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.5.22 | Cash flow | At 30.4.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,028,633 | 164,321 | 3,192,954 |
3,028,633 | 164,321 | 3,192,954 |
Liquid resources |
Current asset investments | 1,049,745 | 19,103 | 1,068,848 |
1,049,745 | 19,103 | 1,068,848 |
Total | 4,078,378 | 183,424 | 4,261,802 |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 30 April 2023 |
1. | STATUTORY INFORMATION |
SRS Rail System (Holdings) Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated accounts are prepared under the equity method of consolidation. All subsidiaries are included in the consolidated accounts. |
Significant judgements and estimates |
In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimate and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
Simple financial instruments of less than one year are recognised at cost as this is deemed to be fair value. There are no items that require a significant estimation uncertainty. |
Turnover |
Turnover is measured at fair value for the consideration receivable excluding discounts, rebates and value added tax. It is recognised at the point a job or service is completed or, if not fully completed, to the percentage of completion at that point in time that the group is entitled to receive. |
Intangible fixed assets |
Amortisation is provided at the following annual rates in order to write off each asset over its estimated life. |
useful |
Trade Marks - 10% on cost |
Tangible fixed assets |
Plant and machinery | - |
Motor vehicles | - |
Specialist rail vehicles | - |
The gross amount of fixed assets are shown at historical cost as management consider this to be fair value. |
Capitalised costs of Specialist Inspection Vehicles include all associated costs incurred in bringing vehicles to their current locations and conditions. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost comprises all costs of purchase, cost of conversion and other costs incurred bringing the inventories to their present condition. |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. |
Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. |
Pension costs and other post-retirement benefits |
The Company operates a self self administered defined contribution scheme. The assets of the scheme are held separately from those of the company. Contributions for the year are charged in the profit and loss account. |
3. | EMPLOYEES AND DIRECTORS |
30.4.23 | 30.4.22 |
£ | £ |
Wages and salaries | 1,833,383 | 1,406,329 |
Social security costs | 208,202 | 144,752 |
Other pension costs | 37,205 | 29,992 |
2,078,790 | 1,581,073 |
The average number of employees during the year was as follows: |
30.4.23 | 30.4.22 |
Administration staff | 13 | 13 |
Operating staff | 33 | 32 |
30.4.23 | 30.4.22 |
£ | £ |
Directors' remuneration | - | - |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
4. | OPERATING LOSS |
The operating loss is stated after charging: |
30.4.23 | 30.4.22 |
£ | £ |
Hire of plant and machinery | 114,552 | 112,817 |
Depreciation - owned assets | 523,665 | 569,545 |
Auditors' remuneration | 23,600 | 30,320 |
Auditors' remuneration for non audit work | 15,227 | 16,686 |
5. | TAXATION |
Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
30.4.23 | 30.4.22 |
£ | £ |
Current tax: |
UK corporation tax | 84,593 | 78,893 |
Deferred tax: |
Reversal of timing differences | (73,138 | ) | (74,365 | ) |
Differences in tax rates | 4,860 | - |
Total deferred tax | (68,278 | ) | (74,365 | ) |
Tax on (loss)/profit | 16,315 | 4,528 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
30.4.23 | 30.4.22 |
£ | £ |
(Loss)/profit before tax | (94,972 | ) | 23,624 |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
(18,045 |
) |
4,489 |
Effects of: |
Expenses not deductible for tax purposes | 27,829 | - |
Depreciation in excess of capital allowances | 71,299 | - |
Deferred tax movements | (68,278 | ) | - |
Non trading company losses | 40 | 39 |
Change in tax rate during period | 3,470 | - |
Total tax charge | 16,315 | 4,528 |
Tax effects relating to effects of other comprehensive income |
30.4.23 |
Gross | Tax | Net |
£ | £ | £ |
Reserves contributed to incentive scheme | (519,694 | ) | - | (519,694 | ) |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
5. | TAXATION - continued |
30.4.22 |
Gross | Tax | Net |
£ | £ | £ |
Reserves contributed to incentive scheme |
6. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
7. | DIVIDENDS |
30.4.23 | 30.4.22 |
£ | £ |
Interim | 80,305 | - |
8. | INTANGIBLE FIXED ASSETS |
Group |
Trade |
marks |
£ |
COST |
At 1 May 2022 |
and 30 April 2023 | 2,878 |
AMORTISATION |
At 1 May 2022 |
and 30 April 2023 | 2,878 |
NET BOOK VALUE |
At 30 April 2023 | - |
At 30 April 2022 | - |
Intangible Fixed Assets have been valued at cost. |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
9. | TANGIBLE FIXED ASSETS |
Group |
Specialist |
Plant and | Motor | rail |
machinery | vehicles | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 May 2022 |
and 30 April 2023 | 857,901 | 587,163 | 8,196,555 | 9,641,619 |
DEPRECIATION |
At 1 May 2022 | 743,971 | 384,660 | 6,494,493 | 7,623,124 |
Charge for year | 28,482 | 50,625 | 444,558 | 523,665 |
At 30 April 2023 | 772,453 | 435,285 | 6,939,051 | 8,146,789 |
NET BOOK VALUE |
At 30 April 2023 | 85,448 | 151,878 | 1,257,504 | 1,494,830 |
At 30 April 2022 | 113,930 | 202,503 | 1,702,062 | 2,018,495 |
10. | FIXED ASSET INVESTMENTS |
Group |
Unlisted |
investments |
£ |
COST |
At 1 May 2022 | 989,955 |
Additions | 40,945 |
At 30 April 2023 | 1,030,900 |
NET BOOK VALUE |
At 30 April 2023 | 1,030,900 |
At 30 April 2022 | 989,955 |
Company |
Unlisted |
investments |
£ |
COST |
At 1 May 2022 |
Additions |
At 30 April 2023 |
NET BOOK VALUE |
At 30 April 2023 |
At 30 April 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
10. | FIXED ASSET INVESTMENTS - continued |
Registered office: Unit 3 Riverside Way, Gateway Business Park, Bolsover, Chesterfield, Derbyshire S44 6GA. |
Nature of business: |
% |
Class of shares: | holding |
30.4.23 | 30.4.22 |
£ | £ |
Aggregate capital and reserves |
(Loss)/profit for the year | ( |
) |
Registered office: Unit 3 Riverside Way, Gateway Business Park, Bolsover, Chesterfield, Derbyshire, S44 6GA. |
Nature of business: |
% |
Class of shares: | holding |
30.4.23 | 30.4.22 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
Registered office: Unit 3 Riverside Way, Gateway Business Park, Bolsover, Chesterfield, Derbyshire, S44 6GA |
Nature of business: |
% |
Class of shares: | holding |
30.4.23 | 30.4.22 |
£ | £ |
Aggregate capital and reserves |
Fixed Asset Investments comprise of the shareholdings in the three subsidiary companies valued at cost all detailed above. Also included is an additional investment made during the period via an investment company in a Partnership. The value in the accounts has been calculated using the valuation per the investment providers report at the year end date. |
11. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 May 2022 |
and 30 April 2023 | 1,014,062 |
NET BOOK VALUE |
At 30 April 2023 | 1,014,062 |
At 30 April 2022 | 1,014,062 |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
11. | INVESTMENT PROPERTY - continued |
Company |
Total |
£ |
COST |
At 1 May 2022 |
and 30 April 2023 |
NET BOOK VALUE |
At 30 April 2023 |
At 30 April 2022 |
The investment property has been included at cost including all related fees. As the property is rented to another group entity the directors have taken the decision under Section 17 to use the cost model. |
12. | STOCKS |
Group |
30.4.23 | 30.4.22 |
£ | £ |
Stocks | 109,437 | 82,028 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.4.23 | 30.4.22 | 30.4.23 | 30.4.22 |
£ | £ | £ | £ |
Trade debtors | 1,045,050 | 782,999 |
Other debtors | 2,000 | 751 |
Due from related company | - | - | 36,908 | - |
Directors' current accounts | 53,867 | - | - | - |
Tax | 8,993 | 3,202 |
Prepayments and accrued income | 346,629 | 398,683 |
1,456,539 | 1,185,635 |
14. | CURRENT ASSET INVESTMENTS |
Group |
30.4.23 | 30.4.22 |
£ | £ |
Current asset investments | 1,068,848 | 1,049,745 |
Investments have been included as current assets due to the nature of the investments. These investments are liquid in nature and can be withdrawn from the current position within the next year. |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.4.23 | 30.4.22 | 30.4.23 | 30.4.22 |
£ | £ | £ | £ |
Trade creditors | 189,271 | 99,873 | ( |
) |
Tax | 20,590 | 10,463 |
Social security and other taxes | 57,012 | 45,722 |
VAT | 70,165 | 84,234 | - | - |
Other creditors | 52,222 | - |
Due to related company | - | - | 200 | 77,463 |
Directors' current accounts | - | 10,794 | - | - |
Accruals and deferred income | 789,378 | 148,971 |
1,178,638 | 400,057 |
16. | PROVISIONS FOR LIABILITIES |
Group |
30.4.23 | 30.4.22 |
£ | £ |
Deferred tax | 120,160 | 188,438 |
Group |
Deferred |
tax |
£ |
Balance at 1 May 2022 | 188,438 |
Timing differences | (73,138 | ) |
Rate movement | 4,860 |
Balance at 30 April 2023 | 120,160 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.4.23 | 30.4.22 |
value: | £ | £ |
Ordinary | £1 | 90,000 | 90,000 |
All shares have equal rights with respect to voting, dividends and the repayment of capital. |
18. | RESERVES |
Group |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 May 2022 | 8,673,725 | 6,333 | 10,000 | 8,690,058 |
Deficit for the year | (111,287 | ) | (111,287 | ) |
Dividends | (80,305 | ) | (80,305 | ) |
Reserves contributed to incentive scheme |
(519,694 |
) |
- |
- |
(519,694 |
) |
At 30 April 2023 | 7,962,439 | 6,333 | 10,000 | 7,978,772 |
SRS RAIL SYSTEM (HOLDINGS) LIMITED (REGISTERED NUMBER: 03046824) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
18. | RESERVES - continued |
Company |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 May 2022 | 1,853,942 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 30 April 2023 | 1,938,978 |
19. | CONTINGENT LIABILITIES |
The trading subsidiary operates a Trust based incentive scheme. In some cases these schemes have been challenged by HMRC. The directors and Trust advisors are of the opinion that the scheme is being operated correctly and no provision has been made, or is considered necessary, in the financial statements for any potential tax liabilities arising from its' use. |
20. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 30 April 2023 and 30 April 2022: |
30.4.23 | 30.4.22 |
£ | £ |
S J Whatley |
Balance outstanding at start of year | (10,794 | ) | 8,382 |
Amounts advanced | 194,661 | 369,669 |
Amounts repaid | (130,000 | ) | (388,845 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 53,867 | (10,794 | ) |
At the year end, there was a loan outstanding due from a director to the company totalling £53,867 (2022 - the loan was due to a director from the company totalling £10,794). This loan is interest free and repayable on demand. |
21. | RELATED PARTY DISCLOSURES |
During the year, expenses totalling £642,980 (2022 - £102,834) were paid to a company under common control. |