Company registration number 06278727 (England and Wales)
RSS INFRASTRUCTURE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
RSS INFRASTRUCTURE LIMITED
CONTENTS
Page
Strategic report
2 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
RSS INFRASTRUCTURE LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr R Toy
Mr S Harrison
Company number
06278727
Registered office
Tech Block
Gee Business Centre
Holborn Hill
Aston
Birmingham
United Kingdom
B7 5JR
Auditor
Haslehursts Limited
88 Hill Village Road
Four Oaks
Sutton Coldfield
West Midlands
B75 5BE
RSS INFRASTRUCTURE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -

The directors present the strategic report for the year ended 30 September 2023.

Review of the business

We aim to present a brief but comprehensive review of our group. Our review is consistent with the size and nature of our company.

 

The company's strategic aim over the past year has been to further establish and develop each of our operational divisions, strengthening the diversification of the services that we offer and expand the range of support provided to the wider infrastructure sector. We are focussed on the development of long-term partnerships via our core beliefs of respect, professionalism, inclusivity and pushing the boundaries.

 

Overall, turnover for this financial year was relatively flat, with an increase of c.1% to £27.64m (2022 - £27.27m) which was considered a positive result given the significant impact the business felt in Q1 as a result of the RMT industrial action which affected the rail sector as a whole. The company is confident, that but for this impact, a revenue result greater than £30m would have been achieved for the first time.

 

The company is pleased to report that the overall gross margin achieved of 21.5% was in excess of the level achieved in 2022 (20.0%). This result was achieved despite the previously referenced challenges faced due to the RMT industrial action and also wider UK economic uncertainty.

 

The company delivered a solid operating profit result of £0.92m (2022 - £0.69m) which supported an improved net asset position of £3.48m (2022 - £2.80m).

 

During the year the company continued on a programme of capital investment, spending £0.63m across the period on predominately plant and equipment.

 

EBITDA generated for the year was £1.29m (2022 - £0.95m).

 

This financial year saw the rail sector enter the final year of the current five-year control period (CP6). This control period includes a record level of budget spend across the sector of £42 billion and continues to bring opportunities with both current and new clients. CP7, which is due to commence in April 2024 contains a similar level of budget spend.

 

Beyond the company’s traditional rail customer base, work continues to be delivered in support of some of the UK’s largest infrastructure projects, including HS2, TransPennine Route Upgrade and Transport for Wales (CVL Transformation).

 

The company has continued to invest across the year in our people and recruitment development programmes, supporting both our clients and our own social value strategy.

 

Principal risks and uncertainties

Statutory and regulatory changes to worker engagement continue to be monitored for potential impact on the group and the wider UK labour market.

 

Future targeted industrial action (RMT) impacting on the wider UK rail and construction sector remains a key risk and uncertainty. Experience in this financial year is that such action has a significant impact on not just the targeted entity, but also the supply chain that supports it.

 

UK economic uncertainty, in terms of high inflation and UK labour rates rising at levels beyond this due to sector specific skills shortages, continue to create a level of risk.

 

Timing issues within Network Rail in terms of the release of budget spend during the CP6 to CP7 transition period.

 

Key performance indicators

The directors of the company monitor key performance indicators on an ongoing basis, particularly in relation to sales growth, margin performance, customer concentration and EBITDA.

RSS INFRASTRUCTURE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -

On behalf of the board

Mr R Toy
Director
26 March 2024
RSS INFRASTRUCTURE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -

The directors present their annual report and financial statements for the year ended 30 September 2023.

Principal activities

The principal activity of the company in the year under review was that of the provision of civil engineering and support solutions to the rail industry and wider UK infrastructure sector.

Results and dividends

No dividends will be distributed for the year ended 30 September 2023.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr R Toy
Mr S Harrison
Auditor

The auditor, Haslehursts Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

RSS INFRASTRUCTURE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 5 -
On behalf of the board
Mr R Toy
Director
26 March 2024
RSS INFRASTRUCTURE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RSS INFRASTRUCTURE LIMITED
- 6 -
Opinion

We have audited the financial statements of RSS Infrastructure Limited (the 'company') for the year ended 30 September 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

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

RSS INFRASTRUCTURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RSS INFRASTRUCTURE LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Auditor's 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.

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

We obtained an understanding of the company's legal and regulatory framework and the industry in which it operates. We considered the risk of acts by the company that might have contravened applicable laws and regulations, including fraud. Our audit procedures were designed to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by way of forgery, intentional representations or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and third party company representatives. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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.

RSS INFRASTRUCTURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RSS INFRASTRUCTURE LIMITED
- 8 -
Stuart Penfold
Senior Statutory Auditor
For and on behalf of Haslehursts Limited
2 April 2024
Chartered Accountants
Statutory Auditor
88 Hill Village Road
Four Oaks
Sutton Coldfield
West Midlands
B75 5BE
RSS INFRASTRUCTURE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
27,640,495
27,268,367
Cost of sales
(21,710,323)
(21,827,749)
Gross profit
5,930,172
5,440,618
Administrative expenses
(5,005,549)
(4,753,678)
Operating profit
5
924,623
686,940
Interest payable and similar expenses
7
(10,202)
(4,192)
Profit before taxation
914,421
682,748
Tax on profit
8
(237,165)
(154,287)
Profit for the financial year
677,256
528,461

The income statement has been prepared on the basis that all operations are continuing operations.

RSS INFRASTRUCTURE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2023
30 September 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
701,607
400,553
Current assets
Stocks
11
227,100
230,958
Debtors
12
3,862,353
4,047,466
Cash at bank and in hand
1,862,642
791,361
5,952,095
5,069,785
Creditors: amounts falling due within one year
13
(2,939,707)
(2,570,857)
Net current assets
3,012,388
2,498,928
Total assets less current liabilities
3,713,995
2,899,481
Creditors: amounts falling due after more than one year
14
(60,505)
(22,544)
Provisions for liabilities
Deferred tax liability
16
175,402
76,105
(175,402)
(76,105)
Net assets
3,478,088
2,800,832
Capital and reserves
Called up share capital
18
100
100
Profit and loss reserves
3,477,988
2,800,732
Total equity
3,478,088
2,800,832

The notes on pages 12 to 23 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 26 March 2024 and are signed on its behalf by:
Mr R Toy
Director
Company registration number 06278727 (England and Wales)
RSS INFRASTRUCTURE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2021
100
2,272,271
2,272,371
Year ended 30 September 2022:
Profit and total comprehensive income
-
528,461
528,461
Balance at 30 September 2022
100
2,800,732
2,800,832
Year ended 30 September 2023:
Profit and total comprehensive income
-
677,256
677,256
Balance at 30 September 2023
100
3,477,988
3,478,088
RSS INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
1
Accounting policies
Company information

RSS Infrastructure Limited is a private company limited by shares incorporated in England and Wales. The registered office is Tech Block, Gee Business Centre, Holborn Hill, Aston, Birmingham, United Kingdom, B7 5JR.

1.1
Accounting convention

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Auctus Management Group Limited. These consolidated financial statements are available from its registered office, Tech Block, Gee Business Centre, Holborn Hill, Aston, Birmingham, B7 5JR.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover for labour based construction and service activities is recognised at the point in which the service has been provided in full and that income can be reliably measured.

Other turnover such as track warning systems are recognised at the point in which the goods have been delivered to the customer such that the significant risk and rewards of ownership have transferred to the buyer.

1.4
Intangible fixed assets - goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2018, is being amortised evenly over its estimated useful life of 3 and a half years.

RSS INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Patents & licences
33% straight line on cost
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
33% straight line on cost
Fixtures and fittings
33% straight line on cost
Motor vehicles
33% straight line on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

RSS INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.10
Financial instruments

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.

 

Financial instruments are recognised in the company's statement of financial position 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 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.

 

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

RSS INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

RSS INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.16

Short term debtors and creditors

Short term debtors are measured at transaction price, less any impairment. Loan's receivable is measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

RSS INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation and residual values

The Directors have reviewed the asset lives and associated residual values of all fixed asset calculations and has concluded that asset lives and residual values are appropriate.

Accrued income provisions

The Directors have reviewed the basis for the recognition of accrued income and have concluded that the provision is an accurate estimate of revenue earned in the current financial year, but invoiced to customers in the following year.

3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Rail and Construction Industry Services
27,640,495
27,268,367
4
Exceptional item
2023
2022
£
£
Expenditure
Intercompany loans written off
286,131
175,723

During the year the company has written off loans outstanding from group companies as the loans will not be repaid.

5
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,164
8,359
Depreciation of owned tangible fixed assets
327,030
266,700
Profit on disposal of tangible fixed assets
-
(56,000)
Amortisation of intangible assets
-
3,677
Operating lease charges
184,150
152,821
RSS INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 18 -
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Direct
110
121
Administration
44
40
Total
154
161

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
8,451,521
8,389,307
Social security costs
861,027
915,113
Pension costs
136,914
172,349
9,449,462
9,476,769
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
10,202
4,192
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
137,868
166,676
Deferred tax
Origination and reversal of timing differences
99,297
(12,389)
Total tax charge
237,165
154,287

On 1st April 2023, the corporation tax rate in the UK increased from 19% to 25%. The effective tax rate calculated for the financial year is 22.01% and is based on 182 days chargeable at 19% and 183 days chargeable at 25%.

 

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows.

RSS INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
8
Taxation
(Continued)
- 19 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
914,421
682,748
Expected tax charge based on the standard rate of corporation tax in the UK of 22.01% (2022: 19.00%)
201,264
129,722
Tax effect of expenses that are not deductible in determining taxable profit
1,278
1,402
Group relief
(47,831)
-
0
Permanent capital allowances in excess of depreciation
(79,820)
2,164
Deferred tax charge / (credit)
99,297
(12,389)
Intercompany write off
62,977
33,388
Taxation charge for the year
237,165
154,287
9
Intangible fixed assets
Goodwill
Patents & licences
Total
£
£
£
Cost
At 1 October 2022
100,000
4,752
104,752
Disposals
-
0
(4,752)
(4,752)
At 30 September 2023
100,000
-
0
100,000
Amortisation and impairment
At 1 October 2022
100,000
4,752
104,752
Disposals
-
0
(4,752)
(4,752)
At 30 September 2023
100,000
-
0
100,000
Carrying amount
At 30 September 2023
-
0
-
0
-
0
At 30 September 2022
-
0
-
0
-
0
RSS INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 20 -
10
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2022
1,043,085
127,664
1,321
1,172,070
Additions
605,708
22,376
-
0
628,084
Disposals
(62,282)
(36,414)
-
0
(98,696)
At 30 September 2023
1,586,511
113,626
1,321
1,701,458
Depreciation and impairment
At 1 October 2022
697,871
72,325
1,321
771,517
Depreciation charged in the year
293,128
33,902
-
0
327,030
Eliminated in respect of disposals
(62,282)
(36,414)
-
0
(98,696)
At 30 September 2023
928,717
69,813
1,321
999,851
Carrying amount
At 30 September 2023
657,794
43,813
-
0
701,607
At 30 September 2022
345,214
55,339
-
0
400,553
11
Stocks
2023
2022
£
£
Raw materials and consumables
227,100
230,958
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,618,385
2,830,155
Amounts owed by group undertakings
-
0
158,338
Other debtors
3,049
3,159
Prepayments and accrued income
1,240,919
1,055,814
3,862,353
4,047,466
RSS INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 21 -
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
15
170,384
98,881
Trade creditors
1,461,574
1,288,266
Amounts owed to group undertakings
99,720
160,818
Corporation tax
137,868
166,357
Other taxation and social security
231,690
231,235
Other creditors
181,932
286,427
Accruals and deferred income
656,539
338,873
2,939,707
2,570,857

Personal guarantees totalling £100,000 have been given by the directors in connection with the invoice discounting facility. As at the year end, the balance payable in relation to the invoice discounting facility is £Nil (2022 - £Nil).

14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
15
60,505
22,544
15
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
170,384
98,881
In two to five years
60,505
22,544
230,889
121,425

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

The finance lease obligations are secured against the applicable asset(s) of the company.

RSS INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 22 -
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
175,402
76,105
2023
Movements in the year:
£
Liability at 1 October 2022
76,105
Charge to profit or loss
99,297
Liability at 30 September 2023
175,402
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
136,914
172,349

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
19
Financial commitments, guarantees and contingent liabilities

Cross guarantees exist between the company and Auctus Management Group Limited under which each company has guaranteed certain debts of the other.

RSS INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 23 -
20
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
53,200
61,950
Between two and five years
53,900
107,100
107,100
169,050
21
Ultimate controlling party

The company is a wholly owned subsidiary of Auctus Management Group Limited, a company registered in England and Wales.

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