Registered number: 06253082
INFRA SAFETY SERVICES LABOUR LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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INFRA SAFETY SERVICES LABOUR LIMITED
COMPANY INFORMATION
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C J Cowan (appointed 31 August 2022)
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T Kirkham (appointed 1 September 2022)
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P H McNulty (resigned 31 August 2022)
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C M Chidley (resigned 31 August 2022)
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Suites 136 and 137 Lake View Drive
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Chartered Accountants & Statutory Auditor
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INFRA SAFETY SERVICES LABOUR LIMITED
CONTENTS
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Independent Auditors' Report
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Statement of Income and Retained Earnings
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Statement of Financial Position
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Notes to the Financial Statements
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INFRA SAFETY SERVICES LABOUR LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
I am delighted to report that Infra Safety Services Labour Limited ("ISS Labour Limited") has achieved an excellent year and remains a Tier 1 supplier of highly skilled labour, OLE, S&T, Trackside Lighting and latterly Ecology services to blue-chip rail and construction companies throughout the UK and are widely valued as an innovative, reliable, forward thinking supply chain partner. I am exceedingly proud of our exceptional safety and delivery record which has helped to retain our leading position within the marketplace.
I would like to thank our investors Baystone Associates and the ISSL senior management team for their faith and support in achieving a successful management buyout (MBO) in August of 2022. The outright purchase of the Company provided the business with secure long term financial backing and investment to meet our aspirations for significant growth and expansion within the rail and construction industries. Following the MBO the business has gone from strength to strength, and we have achieved an increase in revenues of 34% on the previous period. However, most importantly, we have continued to provide our workforce with a regular income stream to support them through the challenges presented by the energy and cost of living crisis and I would like to extend my thanks to them for their faith and loyalty.
With the continued support of our investors and senior management team, ISS Labour Limited is in a strong position to continue providing our clients with the highly skilled, reliable workforce they depend on to deliver their contracts. We are delighted to have maintained and secured several key frameworks which will continue to strengthen our position in a market that will see significant investment over the next five years with Network Rail expecting to invest Circa £44 billion on the UK infrastructure.
The Company generated turnover of £48,087,851 (2022: £35,996,483) and achieved an EBITDA of £1,322,447 (2022: £184,000 loss) during the year.
The Board is committed to the ongoing investment within the organisation to further strengthen our business in terms of developing highly skilled local talent pools and driving innovation through our portfolio of services and in this respect have made the decision not to declare a dividend in this financial year.
Corporate governance
We recognise that all members of our Senior Management Team have a critical role in shaping a positive culture within the business and for personally championing the behaviours we expect to see from others both within our business and within the supply chain. Our governance journey which is published on our website and is underpinned by our Core Values sets out what we stand for, what we expect from our workforce and how we intend to deliver our corporate responsibility strategy. Our Governance Journey is based around sets out our commitments to: Safety; Social Value; Health and Wellbeing; Customer Focus and Expectation; Code of Conduct and Accountability; Environmental Responsibility; Respect, Trust, and Integrity.
We rigorously enforce our policies around modern slavery; antibribery and corruption; equality, diversity, and inclusion; and health and safety and have a zero tolerance for breaches of the guidelines and expectations therein which is supported by regular awareness training. (These policies are published on our website).
Social responsibility
We strongly believe that as a successful business that can make an impact and leave a positive legacy within the communities we work amongst, it is important that we pro-actively seek out opportunities to implement our social value strategy. We are passionate about encouraging the next generation of workers into our industry and have strong engagement relationships with local, schools, colleges, and universities. We have a dedicated Social Value Champion who works closely with partner organisations to support individuals whose routes to recruitment can be more challenging.
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INFRA SAFETY SERVICES LABOUR LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Future developments
As we look to the future the outlook for the business remains extremely positive with the recent, strategic acquisition in the wider group of the PSR Group (post year-end) which complements our existing business and strengthens our local presence across the UK. Together our combined investment in technological advances puts us at the leading edge of modern labour supply and blue-chip project solutions. Craig Cowan, Baystone Associates, commented on the purchase of PSR Group “we are delighted with this acquisition, creating a combined entity with revenues of £120m. We invested in ISS Labour last year and this transaction is further evidence of our desire to work with and support superb management teams, creating value for all stakeholders".
We are progressing through our next reporting period with excitement for the opportunities ahead and look forward to achieving another successful year for our business and its stakeholders.
Principal risks and uncertainties
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We have a documented risk management process that clearly identifies, evaluates, prioritises, and puts in place mitigation strategies for key risks within the business. These are reviewed by the senior management team monthly and those that are deemed as a principal risk, due to their potential severity and impact, are escalated to the Board.
We consider the following potential risks using an ISO9001 approved model:
∙Strategic Risk e.g., work winning, concentration of clients;
∙Operational Risk e.g., Health and Safety failure, attraction and retention of key management employees, labour and skills shortages, contract performance and dispute;
∙Regulatory Risk e.g., violation or non-compliance with laws or regulations; and
∙Financial Risk e.g., Credit risk, liquidity risk, changes in minimum wage.
We take a proactive approach in the mitigation of risk and its potential impact though our documented management procedures, internal controls and lessons learned and commitment to continual improvement.
The Directors specifically recognise that the continued uncertainty created by inflationary pressures and potential interest rate rises are a risk in the short to medium term.
Financial key performance indicators
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The board monitors progress on the overall company strategy and the individual strategic elements by reference to monthly KPI reviews.
The KPI’s are turnover and EBITDA.
This report was approved by the board and signed on its behalf.
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INFRA SAFETY SERVICES LABOUR LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The directors present their report and the audited financial statements for the year ended 31 March 2023.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic Report, the Directors' Report and the audited financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare audited financial statements for each financial year. Under that law the directors have elected to prepare the audited financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the audited 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 audited financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the audited 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 to enable them to ensure that the audited 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of audited financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.
The principal activity of the Company is that of supplying labour to the railway industry.
The profit for the year, after taxation, amounted to £3,761,644 (2022 - loss £572,673).
No dividends were declared in the current year or prior year.
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INFRA SAFETY SERVICES LABOUR LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
The directors who served during the year were:
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C J Cowan (appointed 31 August 2022)
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T Kirkham (appointed 1 September 2022)
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P H McNulty (resigned 31 August 2022)
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C M Chidley (resigned 31 August 2022)
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Matters covered in the Strategic Report
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The Directors have chosen, in accordance with s414C of the Companies Act, to disclose the information relating to principal risk and uncertainties, review of the business, key performance indicators and future developments in the Strategic Report.
Disclosure of information to auditors
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
Mazars LLP resigned as auditors in the year and BKL Audit LLP were appointed were appointed in their stead. Under section 487(2) of the Companies Act 2006, BKL Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INFRA SAFETY SERVICES LABOUR LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INFRA SAFETY SERVICES LABOUR LIMITED
We have audited the financial statements of Infra Safety Services Labour Limited (the 'Company') for the year ended 31 March 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, 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 March 2023 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.
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 United Kingdom, including the Financial Reporting Council'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
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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.
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INFRA SAFETY SERVICES LABOUR LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INFRA SAFETY SERVICES LABOUR LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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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 Directors' Report.
We have nothing to report in respect of the following matters in relation to which 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
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As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 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 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.
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INFRA SAFETY SERVICES LABOUR LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INFRA SAFETY SERVICES LABOUR LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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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 Auditors' 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:
∙Enquiring of management and those charged with governance around actual and potential litigation and claims;
∙Enquiring of management and those charged with governance to identify any instances of non-compliance with laws and regulations;
∙Reviewing board meeting minutes for all meetings taking place throughout the year and indeed up until the date of signature of these financial statements;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Reviewing the general ledger in detail for all transactions with related parties;
∙Performing walk through testing to ensure systems and controls are operating as recorded where appropriate;
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
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INFRA SAFETY SERVICES LABOUR LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INFRA SAFETY SERVICES LABOUR LIMITED (CONTINUED)
∙Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 Auditors' 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.
Nick Bishop FCA (Senior Satutory Auditor)
for and on behalf of
BKL Audit LLP
Chartered Accountants
Statutory Auditor
London
16 November 2023
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INFRA SAFETY SERVICES LABOUR LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2023
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Retained earnings at the beginning of the year
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Profit/(loss) for the year
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Retained earnings at the end of the year
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There were no recognised gains and losses for 2023 or 2022 other than those included in the Statement of Income and Retained Earnings.
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The notes on pages 11 to 25 form part of these financial statements.
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INFRA SAFETY SERVICES LABOUR LIMITED
REGISTERED NUMBER: 06253082
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Net current assets/(liabilities)
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Total assets less current liabilities
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 25 form part of these financial statements.
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INFRA SAFETY SERVICES LABOUR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The principal activity of the Company is that of supplying labour to the railway industry.
The Company is a private company limited by shares and registered in England and Wales.
The Registered Office address is Pure Offices, Suites 136 and 137 Lake View Drive, Annesley, Nottingham, NG15 0DT.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland ('FRS 102') and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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Financial Reporting Standard 102 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of ISS Labour Group Holdings Limited as at 31 March 2023 and these financial statements may be obtained from the registered office.
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Exemption from preparing consolidated financial statements
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The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
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INFRA SAFETY SERVICES LABOUR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
The financial statements have been prepared on the going concern basis, which assumes that the Company will continue to trade for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements, and will be able to meet its debts as they fall due.
The directors have a reasonable expectation, based on their assessment of the Company’s financial
position and resources that it will continue in operational existence for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements, and will be able to meet its debts as they fall due. The directors therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Revenue represents income from provison of temporary labour which is recognised at the end of the completed working week based on hours worked multiplied by the contracted rates and also income from hire of safety critical equipment which is recognised at the end of the completed working week based on contracted rates. In each case, revenue is only recognised when the service has been provided and the Company is contractually entitled to the revenue. Amounts invoiced by the Company in respect of sales completed during the year, exclude value added tax. Sales are wholly attributed to activities within the UK.
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Operating leases: the Company as lessor
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Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.
Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.
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INFRA SAFETY SERVICES LABOUR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Finance costs are charged to Statement of Income and Retained Earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in Statement of Income and Retained Earnings except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
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 income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
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INFRA SAFETY SERVICES LABOUR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in Statement of Income and Retained Earnings.
Investments in subsidiaries are measured at cost less accumulated impairment.
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Associates and joint ventures
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Associates and Joint Ventures are held at cost less impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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INFRA SAFETY SERVICES LABOUR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
(i) Financial assets
Basic financial assets, including fixed asset investment, trade and other debtors, are initially recognised at transaction price, unless the arrangement consitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the Statement of Income and Retained Earnings.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, 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 receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
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INFRA SAFETY SERVICES LABOUR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
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Financial instruments (continued)
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(iii) Offsetting
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are reasonable under the circumstances. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 14 for the carrying amount of the tangible assets, and accounting policy note 2.10 for the useful economic lives of each class of asset.
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All turnover arose within the United Kingdom.
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COVID-19 government grant
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INFRA SAFETY SERVICES LABOUR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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The operating profit/(loss) is stated after charging:
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Depreciation of tangible assets
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Other operating lease rentals
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During the year, the Company obtained the following services from the Company's auditors:
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Fees payable to the Company's auditors for the audit of the Company's financial statements
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The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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INFRA SAFETY SERVICES LABOUR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Company contributions to defined contribution pension schemes
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The highest paid director received remuneration of £405,174 (2022 - £300,515).
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The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £19,741 (2022 - £9,840).
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The total accrued pension provision of the highest paid director at 31 March 2023 amounted to £NIL (2022 - £NIL).
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The loan payable to a related party has been waived during the year (2022: £nil).
During the year, a dividend of £1,000,000 (2022: £nil) was declared by Fencing & Lighting Contractors.
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Interest on amounts owed to parent undertakings
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INFRA SAFETY SERVICES LABOUR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Effect of change in tax rate on opening balance
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Factors affecting tax charge for the year
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The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:
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Profit/(loss) on ordinary activities before tax
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Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
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Fixed asset timing differences
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Expenses not deductible for tax purposes
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Adjustments to tax charge in respect of prior periods
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Profit on sale of fixed assets
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Total tax charge for the year
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INFRA SAFETY SERVICES LABOUR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
12.Taxation (continued)
Factors that may affect future tax charges
On 3 March 2021, the UK Government announced its intention to increase the rate of UK corporation tax from 19% to 25% with effect from 1 April 2023. The increase in the rate of UK corporation tax was enacted in the Finance Act 2021 which received Royal Assent on 10 June 2021.
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INFRA SAFETY SERVICES LABOUR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Investments in subsidiary companies
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Investments in associates
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The following was a subsidiary undertaking of the Company:
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Fencing and Lighting Contractors Limited
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Suites 136 And 137 Pure Offices Lake View Drive, Annesley, Nottingham, England, NG15 0DT
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The aggregate of the share capital and reserves as at 31 March 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:
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Aggregate of share capital and reserves
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Fencing and Lighting Contractors Limited
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The carrying value of the investment in MITA Joint Venture Limited of £26,500 has been fully impaired as at 31 March 2023, as the company has been struck off.
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INFRA SAFETY SERVICES LABOUR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Amounts owed by group undertakings
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Prepayments and accrued income
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Amounts owed by group undertakings are interest free, unsecured and repayable on demand.
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Amounts owed to group undertakings are interest free, unsecured and repayable on demand.
Other creditors include a balance of £nil (2022: £78,753) which relates to an invoice discounting facility which is secured over the Company's trade debtors. The account was closed the year ended 31 March 2023.
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INFRA SAFETY SERVICES LABOUR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Charged to profit or loss
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The deferred taxation balance is made up as follows:
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Accelerated capital allowances
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INFRA SAFETY SERVICES LABOUR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Authorised, allotted, called up and fully paid
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740 (2022 - 740) Ordinary Shares of £1.00 each
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Profit and loss account
The profit and loss account represents total undistributed profits less losses.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £167,534 (2022 - £136,918). Contributions totalling £52,738 (2022 - £32,301) were payable to the fund at the reporting date and are included in creditors.
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Commitments under operating leases
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At 31 March 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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The Company has taken advantage of the exemption conferred by FRS 102 section 33.1A from the requirement to disclose transactions with other wholly owned group undertakings.
The Company purchased services worth £4,436,690 (2022: £nil) from an associated company during the year on behalf of itself and its related parties. Sales worth £4,436,691 (2022: £nil) were made to this associated company during the year. The balance owed to the Company at year end was £1.
During the year, there was no sales to MITA Joint Venture Limited (2022: £204,648). At 31 March 2023, there was no trade debtor (2022: £56,472) relating to these transactions.
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INFRA SAFETY SERVICES LABOUR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The Company's immediate parent company is ISS Labour Group Limited, a company incorporated in England & Wales.
The Registered Office and principal place of business of ISS Labour Group Limited is Pure Offices, Suites 136 And 137 Lake View Drive, Annesley, Nottingham, England, NG15 0DT.
The ultimate parent is ISS Labour Group (Holdings) Limited, a company registered in England & Wales.
The Registered Office and principal place of business of ISS Labour Group (Holdings) Limited is 134 Buckingham Palace Road, London, United Kingdom, SW1W 9SA.
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