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REGISTERED NUMBER: 08622598 (England and Wales)















Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 July 2023

for

R S Recovery Holdings Ltd

R S Recovery Holdings Ltd (Registered number: 08622598)






Contents of the Consolidated Financial Statements
for the Year Ended 31 July 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3 to 4

Report of the Independent Auditors 5 to 8

Consolidated Statement of Income and Retained Earnings 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Cash Flow Statement 12

Notes to the Consolidated Cash Flow Statement 13

Notes to the Consolidated Financial Statements 14 to 25


R S Recovery Holdings Ltd

Company Information
for the Year Ended 31 July 2023







DIRECTORS: Mr A S Sanghera
Mr R S Rai



REGISTERED OFFICE: 91 Soho Hill
Hockley
Birmingham
West Midlands
B19 1AY



BUSINESS ADDRESS: Unit 33 Coneygre Industrial Estate
Birmingham New Road
Tipton
West Midlands
DY4 8XP



REGISTERED NUMBER: 08622598 (England and Wales)



SENIOR STATUTORY AUDITOR: Frances Clapham



AUDITORS: CKCA Limited
Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH

R S Recovery Holdings Ltd (Registered number: 08622598)

Group Strategic Report
for the Year Ended 31 July 2023

The directors present their strategic report of the company and the group for the year ended 31 July 2023.

REVIEW OF BUSINESS
The Principal activity of the group continues to be that of countrywide motor vehicle recovery. The Directors are pleased to report another successful year. As for many businesses of this size, the business environment in which the group operates continues to be challenging and very competitive.
Given the competitive nature of the industry the Directors consider the group's results for the year to be satisfactory and believe the group is well placed to react quickly to ant changes in trading conditions and to take advantage of any business opportunities that may rise.

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the execution of the group's strategies are subject to risks which are reviewed by the board of directors to ensure that appropriate processes are put in place to monitor these risks.

The directors continue to mitigate risks that have impacted the group as follows:

* The group operates in a highly competitive environment and faces tough competition from other companies in the industry and it continues to provide a strong brand identity and investment into the future of the company.
* The group has a strict maintenance of compliance within their third party network by means of using independent third party accreditation's independent verification of insurance through brokers/insurers.
* Investments in modern and feature rich Telecommunications systems to improve efficiency and service.
* Ongoing liaison with third party IT specialists and cyber insurers to ensure the company is protected from cyber security risks from both a technical and risk perspective.
* Achieving ISO: 9001 accreditation with a view to getting further accreditation

TRADING PERFORMANCE AND KEY PERFORMANCE INDICATORS
The directors consider the key performance indicators as those that communicate the financial performance and the strength of the group as a whole. KPIs relevant to the group have been calculated as follows:

31.7.23 31.7.22
£ £
Turnover 22,315,208 18,636,828
Gross Profit margin 5,088,719 4,556,903
Profit before taxation 2,616,997 2,627,772
Turnover for the year amounted to £22,315,208 (2022 - £18,636,828) an increase of 19.73%.
Gross profit margin has fallen to 22.8% from 24.45% as a result of soaring wages and purchases costs.

FUTURE DEVELOPMENTS
The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and that the risks that have been identified are being well managed. with careful focus on quality of service, as well as continuing review of the state of the market and the activities of the competitors, the directors are confident in the company's ability to maintain and build on this position.

ON BEHALF OF THE BOARD:





Mr A S Sanghera - Director


18 April 2024

R S Recovery Holdings Ltd (Registered number: 08622598)

Report of the Directors
for the Year Ended 31 July 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 July 2023.

PRINCIPAL ACTIVITY
The principal activity of the group is rental of recovery vehicles and motor vehicle recovery service.

DIVIDENDS
During the year the company paid an interim dividend of £10,500 (2022 £2,000) per share. The directors recommend that no final dividend be paid on these shares.

The total distribution of the dividends for the year ending 31 July 2023 will be £1,050,000 (2022- £ 200,000).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 August 2022 to the date of this report.

Mr A S Sanghera
Mr R S Rai

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

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

R S Recovery Holdings Ltd (Registered number: 08622598)

Report of the Directors
for the Year Ended 31 July 2023


AUDITORS
The auditors, CKCA Limited, were appointed during the year and will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:




Mr A S Sanghera - Director


18 April 2024

Report of the Independent Auditors to the Members of
R S Recovery Holdings Ltd

Opinion
We have audited the financial statements of R S Recovery Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2023 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 July 2023 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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

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

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

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 the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
R S Recovery Holdings Ltd


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

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

Report of the Independent Auditors to the Members of
R S Recovery Holdings Ltd


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We identified and assessed the risks of material misstatement of the financial statements, in respect of irregularities whether due to fraud or error, or non-compliance with laws and regulations and then designed and performed audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non- compliance with laws and regulations, our procedures included the following:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group by discussion and enquiry with the directors and management team and our general knowledge and experience of the vehicle recovery sector.

We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, employment, vehicle standards and health and safety legislation;

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing correspondence with relevant regulators and discussing with management;

Audit response to risks identified
We assessed the susceptibility of the Group's financial statements to material misstatement, including how fraud might occur. Audit procedures performed included but were not limited to:
- Discussions with directors and management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
- Confirming our understanding of controls by performing a walkthrough test or observation and enquiry
- Performing analytical procedures to identify any unusual or unexpected relationships;
- Challenging assumptions and judgements made by management in its significant accounting estimates;
- Identifying and testing journal entries;
- Reviewing unusual or unexpected transactions; and
- Agreeing the financial statement disclosures to underlying supporting documentation.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
R S Recovery Holdings Ltd


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Frances Clapham (Senior Statutory Auditor)
on behalf of CKCA Limited
Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH

18 April 2024

R S Recovery Holdings Ltd (Registered number: 08622598)

Consolidated
Statement of Income and
Retained Earnings
for the Year Ended 31 July 2023

31.7.23 31.7.22
Notes £    £   

TURNOVER 3 22,315,208 18,636,828

Cost of sales 17,226,489 14,079,925
GROSS PROFIT 5,088,719 4,556,903

Administrative expenses 2,487,146 1,824,234
2,601,573 2,732,669

Other operating income 195,611 4,097
OPERATING PROFIT 6 2,797,184 2,736,766

Interest receivable and similar income 213 -
2,797,397 2,736,766

Interest payable and similar expenses 7 180,400 108,993
PROFIT BEFORE TAXATION 2,616,997 2,627,773

Tax on profit 8 695,869 473,506
PROFIT FOR THE FINANCIAL YEAR 1,921,128 2,154,267

Retained earnings at beginning of year 3,379,599 2,059,933

Dividends 10 (1,050,000 ) (200,000 )

RETAINED EARNINGS FOR THE
GROUP AT END OF YEAR

4,250,727

4,014,200

Profit attributable to:
Owners of the parent 1,421,924 1,519,667
Non-controlling interests 499,204 634,600
1,921,128 2,154,267

R S Recovery Holdings Ltd (Registered number: 08622598)

Consolidated Balance Sheet
31 July 2023

31.7.23 31.7.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 - (52,242 )
Tangible assets 12 4,229,828 2,665,175
Investments 13 - -
4,229,828 2,612,933

CURRENT ASSETS
Stocks 14 50,652 35,209
Debtors 15 5,818,262 3,817,902
Cash at bank and in hand 2,857,184 3,986,653
8,726,098 7,839,764
CREDITORS
Amounts falling due within one year 16 4,066,646 3,730,473
NET CURRENT ASSETS 4,659,452 4,109,291
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,889,280

6,722,224

CREDITORS
Amounts falling due after more than one year 17 (2,285,680 ) (1,297,065 )

PROVISIONS FOR LIABILITIES 19 (938,140 ) (420,826 )
NET ASSETS 5,665,460 5,004,333

CAPITAL AND RESERVES
Called up share capital 20 100 100
Retained earnings 21 3,751,523 3,379,600
SHAREHOLDERS' FUNDS 3,751,623 3,379,700

NON-CONTROLLING INTERESTS 22 1,913,837 1,624,633
TOTAL EQUITY 5,665,460 5,004,333

The financial statements were approved by the Board of Directors and authorised for issue on 18 April 2024 and were signed on its behalf by:





Mr R S Rai - Director


R S Recovery Holdings Ltd (Registered number: 08622598)

Company Balance Sheet
31 July 2023

31.7.23 31.7.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 - -
Tangible assets 12 340,292 251,222
Investments 13 100 100
340,392 251,322

CURRENT ASSETS
Debtors 15 1,387,083 107,640
Cash at bank and in hand 732,380 1,508,393
2,119,463 1,616,033
CREDITORS
Amounts falling due within one year 16 585,968 16,748
NET CURRENT ASSETS 1,533,495 1,599,285
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,873,887

1,850,607

PROVISIONS FOR LIABILITIES 19 35,807 43,006
NET ASSETS 1,838,080 1,807,601

CAPITAL AND RESERVES
Called up share capital 20 100 100
Retained earnings 21 1,837,980 1,807,501
SHAREHOLDERS' FUNDS 1,838,080 1,807,601

Company's profit for the financial year 1,080,479 942,825

The financial statements were approved by the Board of Directors and authorised for issue on 18 April 2024 and were signed on its behalf by:





Mr R S Rai - Director


R S Recovery Holdings Ltd (Registered number: 08622598)

Consolidated Cash Flow Statement
for the Year Ended 31 July 2023

31.7.23 31.7.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,798,320 3,601,512
Interest paid (221 ) (13 )
Interest element of hire purchase payments paid (180,179 ) (108,980 )
Tax paid (301,760 ) (317,727 )
Net cash from operating activities 1,316,160 3,174,792

Cash flows from investing activities
Purchase of tangible fixed assets (2,625,333 ) (26,621 )
Sale of tangible fixed assets 89,050 -
Interest received 213 -
Net cash from investing activities (2,536,070 ) (26,621 )

Cash flows from financing activities
Capital repayments in year 1,352,125 (710,961 )
Amount introduced by directors 1,861,000 328,211
Amount withdrawn by directors (1,862,684 ) (267,767 )
Equity dividends paid (1,050,000 ) (200,000 )
Dividends paid to minority interests (210,000 ) (110,000 )
Net cash from financing activities 90,441 (960,517 )

(Decrease)/increase in cash and cash equivalents (1,129,469 ) 2,187,654
Cash and cash equivalents at beginning of
year

2

3,986,653

1,798,999

Cash and cash equivalents at end of year 2 2,857,184 3,986,653

R S Recovery Holdings Ltd (Registered number: 08622598)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 31 July 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31.7.23 31.7.22
£    £   
Profit before taxation 2,616,997 2,627,773
Depreciation charges 925,232 578,936
Profit on disposal of fixed assets (5,844 ) -
Finance costs 180,400 108,993
Finance income (213 ) -
3,716,572 3,315,702
Increase in stocks (15,443 ) (20,209 )
Increase in trade and other debtors (2,000,361 ) (64,733 )
Increase in trade and other creditors 97,552 370,752
Cash generated from operations 1,798,320 3,601,512

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 July 2023
31.7.23 1.8.22
£    £   
Cash and cash equivalents 2,857,184 3,986,653
Year ended 31 July 2022
31.7.22 1.8.21
£    £   
Cash and cash equivalents 3,986,653 1,798,999


3. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.8.22 Cash flow At 31.7.23
£    £    £   
Net cash
Cash at bank and in hand 3,986,653 (1,129,469 ) 2,857,184
3,986,653 (1,129,469 ) 2,857,184
Debt
Finance leases (2,030,233 ) (1,352,125 ) (3,382,358 )
(2,030,233 ) (1,352,125 ) (3,382,358 )
Total 1,956,420 (2,481,594 ) (525,174 )

R S Recovery Holdings Ltd (Registered number: 08622598)

Notes to the Consolidated Financial Statements
for the Year Ended 31 July 2023

1. STATUTORY INFORMATION

R S Recovery Holdings Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The group consists of R S Recovery Holdings Limited and its subsidiary.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with the Financial Reporting Standards 102, the financial Reporting Standards applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The Company has taken advantage of the exemption allowed under Section 408 of the Companies Act 2006 and has not presented its own Statement of Income and Retained Earnings in these financial statements.
The financial statements have been prepared in sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Basis of consolidation
The consolidated financial statements present the results of the company and its subsidiaries(ie entities that the group group controls through its power to govern the financial and operating policies so as to obtain economic benefits) as if they form single entity. Intercompany transactions and balances between the group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of the acquired operations are included in the Consolidated statement of income and retained earnings from the date on which control is obtained.

Significant judgements and estimates
In the application of the group'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 the period, or in the period of the revision and future periods where the revision affects both the 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.

Useful economic lives of the motor vehicle assets
The annual depreciation charge for motor vehicle 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.

Turnover
Turnover is recognised at the fair value of the consideration received or receivable for motor vehicle recovery services provided in the normal course of business, which is recognised on the date of the recovery net of VAT and trade discounts.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2014, is being amortised evenly over its estimated useful life of ten years.

R S Recovery Holdings Ltd (Registered number: 08622598)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 July 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - 2% on cost
Plant and machinery - 15% on reducing balance
Motor vehicles - 25% on reducing balance

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

Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method.

Financial instruments
Financial instruments are recognised in the company balance sheet when the company becomes party to the contractual provisions of the instrument.

Debtors and creditors with no stated interest rate and receivable or payable within one year are measured at transaction price. Any losses arising from impairment are recognised in the profit and loss account.

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

Current or deferred taxation assets and liabilities are not discounted.

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

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

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

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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

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

The interest is calculated on an effective interest rate basis.

R S Recovery Holdings Ltd (Registered number: 08622598)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 July 2023

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme for its employees. A defined contribution plan is a plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. Amounts not paid are shown as creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds,

Going concern
The directors have assessed the group's ability to continue as a going concern. As a result of this assessment, no material uncertainties have been identified that cast doubt about the ability of the company or the group to continue as going concern.
The group meets its day to day working capital requirements through group banking facilities and the directors are confident that the current facilities will continue to be made available to the group.

3. TURNOVER

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

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

31.7.23 31.7.22
£    £   
Motor vehicle recovery 22,315,208 18,636,828
22,315,208 18,636,828

An analysis of turnover by geographical market is given below:

31.7.23 31.7.22
£    £   
United Kingdom 22,315,208 18,636,828
22,315,208 18,636,828

R S Recovery Holdings Ltd (Registered number: 08622598)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 July 2023

4. EMPLOYEES AND DIRECTORS

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

Group Group Company Company
2023 2022 2023 2022
Number Number Number Number
Directors 4 4 2 2
Administration 49 36
Productive 97 63
150 103 2 2

Their aggregate remuneration comprised
Group Group Company Company
2023 2022 2023 2022
Number Number Number Number
Wages 4,285,935 3,284,972 - -
Social Security Costs 428,870 338,147 - -
Pension costs 88,607 70,990 - -
4,803,412 3,694,109 - -


5. DIRECTORS' EMOLUMENTS

Directors Remuneration
2023 2022
£ £
Directors Emoluments 51,687 47,214
Directors Pensions 380 384
52,067 47,598
During the year retirement benefits were accruing to 2 directors £380 (2022- 384) in respect of defined contribution pension schemes.

6. OPERATING PROFIT

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

31.7.23 31.7.22
£    £   
Depreciation - owned assets 141,498 150,938
Depreciation - assets on hire purchase contracts 835,977 480,242
Profit on disposal of fixed assets (5,844 ) -
Goodwill amortisation (52,242 ) (52,242 )
Auditors' remuneration 17,050 12,500

R S Recovery Holdings Ltd (Registered number: 08622598)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 July 2023

7. INTEREST PAYABLE AND SIMILAR EXPENSES
31.7.23 31.7.22
£    £   
Other interest 221 13
Hire purchase 180,179 108,980
180,400 108,993

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.7.23 31.7.22
£    £   
Current tax:
UK corporation tax 178,555 307,236

Deferred tax 517,314 166,270
Tax on profit 695,869 473,506

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.7.23 31.7.22
£    £   
Profit before tax 2,616,997 2,627,773
Profit multiplied by the standard rate of corporation tax in the UK of 21 %
(2022 - 19 %)

549,569

499,277

Effects of:
Income not taxable for tax purposes (10,430 ) (9,926 )
Utilisation of tax losses 1,275 7,711
Adjustments to tax charge in respect of previous periods (749 ) (5,000 )
Origination and reversal of timing differences 156,204 (19,306 )
Overprovision - 750

Total tax charge 695,869 473,506

9. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


R S Recovery Holdings Ltd (Registered number: 08622598)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 July 2023

10. DIVIDENDS

2023 2022
£ £
Ordinary paid 1,050,000 200,000

11. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 August 2022
and 31 July 2023 (522,419 )
AMORTISATION
At 1 August 2022 (470,177 )
Amortisation for year (52,242 )
At 31 July 2023 (522,419 )
NET BOOK VALUE
At 31 July 2023 -
At 31 July 2022 (52,242 )

12. TANGIBLE FIXED ASSETS

Group
Capital
Short Plant and Motor work in
leasehold machinery vehicles progress Totals
£    £    £    £    £   
COST
At 1 August 2022 23,818 720,330 4,327,012 - 5,071,160
Additions - 148,240 2,464,176 12,917 2,625,333
Disposals - - (129,935 ) - (129,935 )
At 31 July 2023 23,818 868,570 6,661,253 12,917 7,566,558
DEPRECIATION
At 1 August 2022 3,790 419,087 1,983,107 - 2,405,984
Charge for year 476 67,422 909,577 - 977,475
Eliminated on disposal - - (46,729 ) - (46,729 )
At 31 July 2023 4,266 486,509 2,845,955 - 3,336,730
NET BOOK VALUE
At 31 July 2023 19,552 382,061 3,815,298 12,917 4,229,828
At 31 July 2022 20,028 301,243 2,343,905 - 2,665,176

R S Recovery Holdings Ltd (Registered number: 08622598)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 July 2023

12. TANGIBLE FIXED ASSETS - continued

Group

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 August 2022 3,500,711
Additions 2,431,050
Disposals (806,048 )
At 31 July 2023 5,125,713
DEPRECIATION
At 1 August 2022 1,418,085
Charge for year 835,977
Eliminated on disposal (570,968 )
At 31 July 2023 1,683,094
NET BOOK VALUE
At 31 July 2023 3,442,619
At 31 July 2022 2,082,626

Company
Motor
vehicles
£   
COST
At 1 August 2022 583,830
Additions 151,874
At 31 July 2023 735,704
DEPRECIATION
At 1 August 2022 332,608
Charge for year 62,804
At 31 July 2023 395,412
NET BOOK VALUE
At 31 July 2023 340,292
At 31 July 2022 251,222

R S Recovery Holdings Ltd (Registered number: 08622598)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 July 2023

13. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 August 2022
and 31 July 2023 100
NET BOOK VALUE
At 31 July 2023 100
At 31 July 2022 100

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

R S Recovery Limited
Registered office: Unit 33 Coneygree Industrial Estate, Tipton, England, DY4 8XP.
Nature of business: Recovery and repair of motor vehicles
%
Class of shares: holding
Ordinary 50.00

The company holds 100% of the voting rights in the subsidiary.


14. STOCKS

Group
31.7.23 31.7.22
£    £   
Stocks 50,652 35,209

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
31.7.23 31.7.22 31.7.23 31.7.22
£    £    £    £   
Trade debtors 4,204,344 3,709,217 - -
Amounts owed by group undertakings - - - 107,640
Other debtors 1,536,681 48,033 1,387,083 -
Prepayments and accrued income 77,237 60,652 - -
5,818,262 3,817,902 1,387,083 107,640

R S Recovery Holdings Ltd (Registered number: 08622598)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 July 2023

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
31.7.23 31.7.22 31.7.23 31.7.22
£    £    £    £   
Hire purchase contracts (see note 18) 1,096,678 733,168 - -
Trade creditors 2,152,373 2,131,800 - -
Amounts owed to group undertakings - - 571,367 -
Tax 184,981 308,186 6,148 6,345
Social security and other taxes 442,561 472,537 2,000 2,000
Other creditors 29,802 11,322 - -
Directors' current accounts 3,233 4,917 1,353 2,353
Accruals and deferred income 157,018 68,543 5,100 6,050
4,066,646 3,730,473 585,968 16,748

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
31.7.23 31.7.22
£    £   
Hire purchase contracts (see note 18) 2,285,680 1,297,065

18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
31.7.23 31.7.22
£    £   
Net obligations repayable:
Within one year 1,096,678 733,168
Between one and five years 2,285,680 1,297,065
3,382,358 2,030,233

19. PROVISIONS FOR LIABILITIES

Group Company
31.7.23 31.7.22 31.7.23 31.7.22
£    £    £    £   
Deferred tax 938,140 420,826 35,807 43,006

R S Recovery Holdings Ltd (Registered number: 08622598)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 July 2023

19. PROVISIONS FOR LIABILITIES - continued

Group
Deferred
tax
£   
Balance at 1 August 2022 420,826
Accelerated capital allowances 517,314
Balance at 31 July 2023 938,140

Company
Deferred
tax
£   
Balance at 1 August 2022 43,006
Credit to Income Statement during year (7,199 )
Balance at 31 July 2023 35,807

20. CALLED UP SHARE CAPITAL



Allotted, issued and fully paid:
Number: Class: Nominal 31.7.23 31.7.22
value: £    £   
100 Ordinary £1 100 100

21. RESERVES

Group
Retained
earnings
£   

At 1 August 2022 3,379,599
Profit for the year 1,421,924
Dividends (1,050,000 )
At 31 July 2023 3,751,523

R S Recovery Holdings Ltd (Registered number: 08622598)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 July 2023

21. RESERVES - continued

Company
Retained
earnings
£   

At 1 August 2022 1,807,501
Profit for the year 1,080,479
Dividends (1,050,000 )
At 31 July 2023 1,837,980


22. NON-CONTROLLING INTERESTS

2023
£   
Issued Share capital 100
Retained profits
At 01/08/2022 1,624,533
Profit for the year 499,204
Dividends (210,000 )
At 31 July 2023 1,913,837

23. CAPITAL COMMITMENTS
31.7.23 31.7.22
£    £   
Contracted but not provided for in the
financial statements 634,452 26,250

24. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 July 2023 and 31 July 2022:

31.7.23 31.7.22
£    £   
A S Sanghera and R S Rai
Balance outstanding at start of year - 55,527
Amounts repaid - (55,527 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - -

The loan advanced is repayable within 1 year and no interest is chargeable.

25. RELATED PARTY DISCLOSURES

During the year, a total of key management personnel compensation of £ 415,093 (2022 - £ 310,383 ) was paid.

R S Recovery Holdings Ltd (Registered number: 08622598)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 July 2023

25. RELATED PARTY DISCLOSURES - continued

The Group occupies premises owned by the directors at a rental of £96,000pa (2022- £46,360).

The Group also rents its other premises from a company under common control at a rental of £96,000 (2022 - £96,000) and included in other debtors is an amount of £75,002 (2022 - £41,733) owed by the same.