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Registration number: 06677841

Provide SESS Limited

Annual Report and Financial Statements

for the Year Ended 31 August 2022

 

Provide SESS Limited

Contents

Company Information

1

Strategic Report

2 to 4

Director's Report

5

Statement of Director's Responsibilities

6

Independent Auditor's Report

7 to 10

Profit and Loss Account

11

Statement of Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15 to 26

 

Provide SESS Limited

Company Information

Director

Mr Stuart Turnbull

Registered office

City Gate Business Park
95-107 Southampton Street
Reading
Berkshire
RG1 2QU

Solicitors

Darby Law
Tudor Chambers
Fore Street
St. Marychurch
Torquay
Devon
TQ1 4PR

Bankers

Barclays Bank Plc
Reading
90-93 Broad Street
Reading
RG1 2AP

Auditors

Forrester Boyd
Kingfisher Court
Plaxton Bridge Road
Woodmansey
Beverley
East Yorkshire
HU17 0RT

 

Provide SESS Limited

Strategic Report for the Year Ended 31 August 2022

The director presents his strategic report for the year ended 31 August 2022.

Principal activity

The principal activity of the company is security providers

Fair review of the business

The Director reports a decrease in turnover from £25.8m to £15.4m in the current year. The gross profit has decreased from £4.3m to £1.9m which has resulted in a decrease in the gross profit percentage (2022: 12.4% and 2021: 16.6%). Despite this decrease, reserves have increased by 2% from the prior year to £1.7m.

The directors are satisfied with the results for the financial year. The decrease in turnover was expected due to the nature of the contracts. In 2021 the increased turnover was mainly due to the COVID 19 contracts which were expected to be short term. These contracts started to reduce in October 2021 with the contracts ceasing in June 2022. The COVID 19 contracts were high volume and low profit margins. The rate for the COVID work was dropped midway through the contract however the company did not pass this rate cut onto the subcontractors, therefore a lower profit margin was realised.

In 2022 the company saw the return of the football contracts and major events that had been rescheduled from the pandemic.

The directors are optimistic that new opportunities will continue to arise, at the same time as maintaining existing relationships and contracts.

The directors are satisfied that the business remains viable and future growth is attainable without the COVID 19 contracts.

The management of the company continue to use a range of performance indicators to monitor and manage the business. The performance indicators include financial performance such as profit ratios, liquidity ratios, activity ratios and capital ratios.

Principal risks and uncertainties

The Company does not rely on the use of complex financial instruments, having established an acceptable level of reserves through a policy of strong financial disciplines. As such, the director does not consider there to be any significant exposure to financial risks. Those identified are discussed in the Director's report.

The non-financial risks assessed by management include the following
o Competitor pressure - management continue to build relationships with our existing clients whilst exploring different avenues to attract new business.
o Loss of key personnel - management continue to provide staff with professional development opportunities at all levels whilst ensuring that key staff are recognised by remunerating them at an appropriate level.

 

Provide SESS Limited

Strategic Report for the Year Ended 31 August 2022

Section 172(1) statement

Engagement with employees

The directors take every opportunity to engage with employees as they understand the importance of staff engagement in a service company.

Staff engagement includes post event meetings to discuss how the contract was delivered. In these meetings the positives and negatives are discussed with a view to continually make improvements. Also with event work, senior management are involved in the planning of these events.

Staff appraisals are conducted very six months.

Staff are offered additional training opportunities and these opprtunites can be identified in the appraisal meetings. Additional training could include financial training, management training etc.

In addition to the above a benefits platform is provided to employees, benefits include retail discounts, health benefits and financial coaching.

Engagement with suppliers, customers and other relationships

The company maintains good relationships with suppliers by being good payers and paying competitive rates. Annual events are held at the office for suppliers to further improve relationships.

The company understands the importance of customer relationships and as part of their audit process, they carry out a number of client appraisals, monitoring client satisfaction on the following aspects of our service
o Competitiveness of rates
o Knowledgeability of staff and management; punctuality and appearance
o Overall satisfaction of services provided.

Where possible the company tries to provide the same personnel at events so customers have a continuity of staff. Also the director attends the event to help with both customer and supplier relationships.

Environmental matters

ISO 14001 accredited - environmental audit - acting environmentally friendly. Taking steps to reduce the environmental impact of the business.

The company monitors their compliance with ISO:14001 by setting KPIs in relation to their environmental impact from the head office. This includes the electric usage of their key holding and mobile response fleet and a month-on-month reduction of their office electricity consumption.

Policies for disabled employees
The company recognises that it has obligations towards all its employees to ensure that people with disabilities are afforded equal opportunities to enter employment and progress within the company. In addition to complying with legal requirements, the company follows procedures designed to provide for fair consideration and selection of disabled applicants and to satisfy their training and career development needs.

When an employee becomes disabled in the course of their employment, reasonable steps will be taken to accomodate their disablity by considering adjustments to working practices and arrangements, or by considering redeployment and appropriate retraining to enable them to remain in employment with the company wherever reasonably possible.

 

Provide SESS Limited

Strategic Report for the Year Ended 31 August 2022

Social and community issues

Each year the company makes donations to local charities as part of their social and community policy.

Approved and authorised by the director on 18 October 2023
 

.........................................
Mr Stuart Turnbull
Director

 

Provide SESS Limited

Director's Report for the Year Ended 31 August 2022

The director presents his report and the financial statements for the year ended 31 August 2022.

Director of the company

The director who held office during the year was as follows:

Mr Stuart Turnbull

Dividends

The director recommends a final dividend payment of £Nil be made in respect of the financial year ended 31 August 2022. This dividend has not been recognised as a liability in the financial statements.

Financial instruments

Price risk, credit risk, liquidity risk and cash flow risk

Financial risks identified include credit risk and liquidity risk.

Credit risk is the risk that a counterparty will be unable to pay amounts when they fall due. The Company carries out appropriate credit checks on potential customers before sales are made, and continually monitors and investigates aged debts.

Liquidity risk is the risk that cash may not be available to pay obligations as they fall due. The Director is satisfied that the Company is not subject to liquidity risk due to maintaining strong cash reserves and the financial support from the parent company if required.

Future developments

There are no particular matters that the director feels will significantly alter the ongoing development of the business in the short to medium term. The company aims to continue its policy of providing an exceptional level of service, in order to maintain existing customer relationships and build new ones.

Disclosure of information to the auditors

The director has taken 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. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.

Reappointment of auditors

The auditors Forrester Boyd are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the director on 18 October 2023
 

.........................................
Mr Stuart Turnbull
Director

 

Provide SESS Limited

Statement of Director's Responsibilities

The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Provide SESS Limited

Independent Auditor's Report to the Members of Provide SESS Limited

Opinion

We have audited the financial statements of Provide SESS Limited (the 'company') for the year ended 31 August 2022, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 31 August 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 auditor 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

However, because not all future events or conditions can be predicted this statements is not a guarantee as to the company's ability to continue as a going concern.

Other information

The director is responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Provide SESS Limited

Independent Auditor's Report to the Members of Provide SESS Limited

Other matters
The prior year's financial statements have not been audited.

Opinion on other matter 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Director's Report.

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 director's remuneration specified by law are not made; or

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

Responsibilities of the director

As explained more fully in the Statement of Director's Responsibilities [set out on page 6], the director is 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 director determines is 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.

 

Provide SESS Limited

Independent Auditor's Report to the Members of Provide SESS Limited

Auditor 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 an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Using our knowledge of the company and the industry in which it operates, we idenitfied the principal risks of non-compliance with laws and regulations and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and UK Tax legislation.

We assessed the susceptibility of the company's financial statements to material misstatement by considering the controls the company has established to address risks identified and how the directors monitor these controls and by evaluating the opportunity to commit fraud.

Our audit procedures included the following;

o testing management override controls including journal testing and reviewing accounting estimates for reasonableness
o enquires of management of actual and potential litigation claims
o enquires of management including fraud and associated risks
o discussions with management, including consideration of known or suspected instances of non-compliance
o challenging assumptions and judgements made within significant accounting estimates and judgements
o reviewing legal and professional fees for any potential litigation claims
o testing focussing on the areas of the financial statements most susceptible to material error including completeness of income and review to ensure correct matching of revenue and costs

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

 

Provide SESS Limited

Independent Auditor's Report to the Members of Provide SESS Limited

......................................
Michael Beckett BA FCA (Senior Statutory Auditor)
For and on behalf of Forrester Boyd , Statutory Auditor

Kingfisher Court
Plaxton Bridge Road
Woodmansey
Beverley
East Yorkshire
HU17 0RT

18 October 2023

 

Provide SESS Limited

Profit & Loss Account for the Year Ended 31 August 2022

Note

2022
£

2021
£

Turnover

3

15,416,251

25,846,861

Cost of sales

 

(13,500,658)

(21,561,013)

Gross profit

 

1,915,593

4,285,848

Administrative expenses

 

(1,136,827)

(1,209,695)

Other operating income

4

76,187

96,461

Operating profit

6

854,953

3,172,614

Other interest receivable and similar income

7

46

-

Interest payable and similar expenses

8

(5,287)

(3,767)

   

(5,241)

(3,767)

Profit before tax

 

849,712

3,168,847

Tax on profit

12

(169,688)

(602,608)

Profit for the financial year

 

680,024

2,566,239

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Provide SESS Limited

Statement of Comprehensive Income for the Year Ended 31 August 2022

2022
£

2021
£

Profit for the year

680,024

2,566,239

Total comprehensive income for the year

680,024

2,566,239

 

Provide SESS Limited

(Registration number: 06677841)
Statement of Financial Position as at 31 August 2022

Note

2022
£

2021
£

Fixed assets

 

Tangible assets

13

166,834

227,694

Current assets

 

Debtors

14

2,375,278

4,700,021

Cash at bank and in hand

 

595,900

2,209,838

 

2,971,178

6,909,859

Creditors: Amounts falling due within one year

16

(1,295,745)

(5,269,396)

Net current assets

 

1,675,433

1,640,463

Total assets less current liabilities

 

1,842,267

1,868,157

Creditors: Amounts falling due after more than one year

16

(112,815)

(159,581)

Provisions for liabilities

18

(31,390)

(40,538)

Net assets

 

1,698,062

1,668,038

Capital and reserves

 

Called up share capital

100

100

Retained earnings

21

1,697,962

1,667,938

Shareholders' funds

 

1,698,062

1,668,038

Approved and authorised by the director on 18 October 2023
 

.........................................
Mr Stuart Turnbull
Director

 

Provide SESS Limited

Statement of Changes in Equity for the Year Ended 31 August 2022

Share capital
£

Retained earnings
£

Total
£

At 1 September 2021

100

1,667,938

1,668,038

Profit for the year

-

680,024

680,024

Dividends

-

(650,000)

(650,000)

At 31 August 2022

100

1,697,962

1,698,062

Share capital
£

Retained earnings
£

Total
£

At 1 September 2020

100

601,699

601,799

Profit for the year

-

2,566,239

2,566,239

Dividends

-

(1,500,000)

(1,500,000)

At 31 August 2021

100

1,667,938

1,668,038

 

Provide SESS Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

1

General information

The company is a private company limited by share capital, incorporated in United Kingdom.

The address of its registered office is:
City Gate Business Park
95-107 Southampton Street
Reading
Berkshire
RG1 2QU

These financial statements were authorised for issue by the director on 18 October 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements have been presented in GBP and are rounded to the nearest pound.

Summary of disclosure exemptions

The Company has taken advantage of the exemption from disclosing the following information, as permitted by the reduced disclosure regime within FRS 102:

a) Section 7 ''Statement of Cash Flows'' - Presentation of a statement of cash flow and related notes and disclosures
b) Section 33 ''Related Party Disclosures'' - related party transactions with other members of the Watermans Group
.

Going concern

The financial statements have been prepared on a going concern basis, which assumes that the company will continue in operational existence for the foreseeable future. The directors are of the opinion that the company will trade profitably in the foreseeable future and therefore believes that it is appropriate for the financial statements to be prepared on a going concern basis.

 

Provide SESS Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Critical Judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

a) Depreciation

Depreciation is charged to the profit and loss account based on the useful economic life selected, which involves an estimation of the period and profile over which the company expects to consume future economic benefits embodied in the assets.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

Revenue is recognised for the provision of services as the contractual activity progresses.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

25% Straight Line

Office equipment

33.33% Straight Line

Fixtures and fittings

25% Reducing Balance

Motor vehicles

25% Reducing Balance

Impairment of Fixed Assets

 

Provide SESS Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Fixed assets are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable or as otherwise required by relevant accounting standards. Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of net realisable value and value-in-use, are recognised as impairments.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

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

Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set of the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaeously.

 

Provide SESS Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Basic financial assets
Basic financial assets, which include trade and other debtors are amounts due from customers for services performed in the ordinary course of business.

Basic financial assets, which include trade and other debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest rate method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Basic financial liabilities
Basic financial liabilties, which include trade and other creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2022
 £

2021
 £

Rendering of services

15,416,251

25,846,861

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2022
 £

2021
 £

Miscellaneous other operating income

76,187

96,461

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2022
 £

2021
 £

Gain/loss on disposal of property, plant and equipment

(21,820)

(1,795)

 

Provide SESS Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

6

Operating profit

Arrived at after charging/(crediting)

2022
 £

2021
 £

Depreciation expense

63,297

31,925

Operating lease expense - property

27,000

24,345

Loss on disposal of property, plant and equipment

21,820

1,795

7

Other interest receivable and similar income

2022
 £

2021
 £

Interest income on bank deposits

46

-

8

Interest payable and similar expenses

2022
 £

2021
 £

Interest on bank overdrafts and borrowings

4,817

3,012

Interest on obligations under finance leases and hire purchase contracts

470

755

5,287

3,767

9

Staff costs

The aggregate payroll costs (including director's remuneration) were as follows:

2022
 £

2021
 £

Wages and salaries

3,517,303

5,644,417

Social security costs

259,630

410,065

Pension costs, defined contribution scheme

61,104

63,085

Other employee expense

119,678

206,681

3,957,715

6,324,248

The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:

2022
No.

2021
No.

Administration and support

10

11

Sales

257

312

267

323

 

Provide SESS Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

10

Director's remuneration

The director's remuneration for the year was as follows:

2022
 £

2021
 £

Remuneration

13,006

9,479

11

Auditors' remuneration

2022
 £

2021
 £

Audit of the financial statements

9,750

-


 

 

Provide SESS Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

12

Taxation

Tax charged/(credited) in the income statement

2022
 £

2021
 £

Current taxation

UK corporation tax

178,836

578,003

Deferred taxation

Arising from changes in tax rates and laws

(9,148)

24,605

Tax expense in the income statement

169,688

602,608

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2021 - the same as the standard rate of corporation tax in the UK) of 19% (2021 - 19%).

The differences are reconciled below:

2022
 £

2021
 £

Profit before tax

849,712

3,168,847

Corporation tax at standard rate

161,445

602,081

Effect of expense not deductible in determining taxable profit (tax loss)

8,071

1,965

Tax increase (decrease) from effect of capital allowances and depreciation

(94)

(1,876)

Other tax effects for reconciliation between accounting profit and tax expense (income)

266

438

Total tax charge

169,688

602,608

Deferred tax

Deferred tax assets and liabilities

2022

Asset
£

Liability
£

Accelerated capital allowances

-

31,390

-

31,390

2021

Asset
£

Liability
£

Accelerated capital allowances

-

40,538

-

40,538

 

Provide SESS Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

13

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 September 2021

112,193

234,008

346,201

Additions

1,657

22,599

24,256

Disposals

(56,893)

(12,917)

(69,810)

At 31 August 2022

56,957

243,690

300,647

Depreciation

At 1 September 2021

46,732

71,775

118,507

Charge for the year

19,541

43,755

63,296

Eliminated on disposal

(39,184)

(8,806)

(47,990)

At 31 August 2022

27,089

106,724

133,813

Carrying amount

At 31 August 2022

29,868

136,966

166,834

At 31 August 2021

65,461

162,233

227,694

14

Debtors

Current

Note

2022
£

2021
£

Trade debtors

 

1,033,030

4,058,609

Amounts owed by related parties

25

878,669

-

Other debtors

 

18,353

49,847

Prepayments

 

28,439

28,441

Accrued income

 

416,787

563,124

   

2,375,278

4,700,021

 

Provide SESS Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

15

Cash and cash equivalents

2022
 £

2021
 £

Cash on hand

5,657

141,124

Cash at bank

590,243

2,068,714

595,900

2,209,838

16

Creditors

Note

2022
 £

2021
 £

Due within one year

 

Loans and borrowings

17

46,798

46,530

Trade creditors

 

405,966

2,676,826

Amounts due to related parties

25

-

495,142

Social security and other taxes

 

101,724

160,579

Other creditors

 

3,350

5,877

Accrued expenses

 

559,106

1,306,446

Corporation tax liability

12

178,801

577,996

 

1,295,745

5,269,396

Due after one year

 

Loans and borrowings

17

112,815

159,581

 

Provide SESS Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

17

Loans and borrowings

2022
 £

2021
 £

Non-current loans and borrowings

Bank borrowings

112,815

153,750

Hire purchase liabilities

-

5,831

112,815

159,581

2022
 £

2021
 £

Current loans and borrowings

Bank borrowings

40,967

41,000

Hire purchase liabilities

5,831

5,530

46,798

46,530

Barclays Security Trustee Limited hold a fixed and floating charge over the assets of the company in the form of a debenture dated 20th May 2020. The charge is held over the undertaking and all property and assets, present and future.

Financial Instruments

Note

2022
£

2021
 £

Carrying amount of financial assets

 

Measured at undiscounted amount receivable

 

-

-

• Trade and other debtors

14

2,375,278

4,700,020

• Cash at bank and in hand

15

595,900

2,209,838

space

 

-

-

Carrying amount of financial liabilities

 

-

-

Measured at amortised cost

 

-

-

• Loans payable

17

159,613

206,111

• Trade and other creditors

16

968,422

4,484,291

 

-

-

Equity instruments measured at cost less impairment

 

-

-

Called up share capital

20

100

100

 

Provide SESS Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

18

Provisions for liabilities

Deferred tax
£

Total
£

At 1 September 2021

40,538

40,538

Increase (decrease) in existing provisions

(9,148)

(9,148)

At 31 August 2022

31,390

31,390

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £61,104 (2021 - £63,085).

Contributions totalling £- (2021 - £Nil) were payable to the scheme at the end of the year and are included in creditors.

20

Share capital

Allotted, called up and fully paid shares

 

2022

2021

 

No.

£

No.

£

Ordinary of £1 each

100

100

100

100

         

21

Reserves

The retained earnings reserve represents cumulative profits or losses, net of dividends paid and other adjustments.

22

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2022
£

2021
£

Not later than one year

27,000

27,000

Later than one year and not later than five years

54,000

81,000

81,000

108,000

 

Provide SESS Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

23

Dividends

   

2022

 

2021

   

£

 

£

Final dividend of £6,500.00 (2021 - £15,000.00) per ordinary share

 

650,000

 

1,500,000

         

24

Analysis of changes in net debt

At 1 September 2021
£

Financing cash flows
£

At 31 August 2022
£

Cash and cash equivalents

Cash

2,209,838

(1,613,938)

595,900

Borrowings

Long term borrowings

159,581

(46,766)

112,815

Short term borrowings

46,530

268

46,798

206,111

(46,498)

159,613

 

2,415,949

(1,660,436)

755,513

25

Related party transactions

Key management personnel
Key management personnel are the directors.

The Company has taken advantage of the exemption in section 33 of FRS 102 ‘Related Party Disclosures’ from disclosing transactions with other members of the group.

26

Parent and ultimate parent undertaking

The company's immediate parent is Watermans Group Limited, incorporated in England and Wales.

 The most senior parent entity producing publicly available financial statements is Watermans Group Limited. These financial statements are available upon request from Unit 4, City Limits, Danehill, Reading, Berkshire, RG6 4UP

 

27

Non adjusting events after the financial period

On the 31st March 2023 the group was restructured and Provide SESS Limited is now a 100% subsidiary of Provide Security Group Ltd.