Company Registration No. 01661817 (England and Wales)
R.S. AQUA LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 AUGUST 2023
PAGES FOR FILING WITH REGISTRAR
The Granary
Hones Yard
1 Waverley Lane
Farnham
Surrey
GU9 8BB
R.S. AQUA LIMITED
CONTENTS
Page
Company information
1
Director's report
2 - 3
Balance sheet
4 - 5
Notes to the financial statements
6 - 12
Schedule of administrative expenses
R.S. AQUA LIMITED
COMPANY INFORMATION
- 1 -
Director
Mr M. M. Stemp
Secretary
Mrs R. Stemp
Company number
01661817
Registered office
The Granary
Hones Yard
1 Waverley Lane
Farnham
Surrey
GU9 8BB
Accountants
TC Group
The Granary
Hones Yard
1 Waverley Lane
Farnham
Surrey
GU9 8BB
R.S. AQUA LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -
The director presents his annual report and financial statements for the year ended 31 August 2023.
Principal activities
The principal activity of the company during the year was the sale of oceanic equipment.
Directors Report for RS Aqua Group of Companies
Financial Year 2023 was defined by sustained growth in all categories, and well-executed progress against all key objectives. A continued focus on our customer segments of Science, Energy, Fisheries and Defence has proven once again to be a positive and productive strategy to deepen our impact and build the business across the ocean technology economy.
The team has grown with new, key members added, significant and impactful investments in our supportive culture, and new skills developed within the business.
We succeeded against all key objectives:
Financial Performance – 14% year on year revenue growth, 50% increase in annual recurring revenue (ARR), net increase in profit margins.
Rental business grew ~90% within the year, with most rental projects secured on multi-year terms. We are now delivering rental projects to aquaculture producers domestically, and offshore energy contractors internationally.
Secured major R&D grant funding for our MARLIN AI project, to develop software, IOT and embedded computing capability for underwater noise applications. The MARLIN project is a ~£900k, 2.5 year project funded by Innovate UK, lead by RS Aqua, with our collaborator University of Southampton.
New people joined RS Aqua in key roles including a Head of Sales and Marketing, and an Aquaculture Specialist based in Scotland. Staff churn remains low.
Significant investment in team and culture to provide significantly more days off, greater investment in training and stronger financial rewards for the team.
The Senior Management Team remain positive that 2024 will bring further investments in the team, that we will build revenue and ARR into our diverse and mature customer base, and that our R&D / product development projects including MARLIN AI will yield new IPR and positive outcomes for RS Aqua in the near term.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr M. M. Stemp
R.S. AQUA LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 3 -
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr M. M. Stemp
Director
22 April 2024
R.S. AQUA LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2023
31 August 2023
- 4 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
391,785
111,276
Current assets
Stocks
51,818
71,224
Debtors
4
843,322
610,026
Cash at bank and in hand
840,954
784,652
1,736,094
1,465,902
Creditors: amounts falling due within one year
5
(1,397,156)
(951,607)
Net current assets
338,938
514,295
Total assets less current liabilities
730,723
625,571
Creditors: amounts falling due after more than one year
6
(22,094)
(30,833)
Provisions for liabilities
(95,208)
(21,459)
Net assets
613,421
573,279
Capital and reserves
Called up share capital
1,000
1,000
Capital redemption reserve
1,000
1,000
Profit and loss reserves
611,421
571,279
Total equity
613,421
573,279
R.S. AQUA LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 AUGUST 2023
31 August 2023
- 5 -
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 August 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 22 April 2024
Mr M. M. Stemp
Director
Company Registration No. 01661817
The notes on pages 6 to 12 form part of these financial statements
R.S. AQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 6 -
1
Accounting policies
Company information
R.S. Aqua Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Granary, Hones Yard, 1 Waverley Lane, Farnham, Surrey, GU9 8BB.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.4
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.
R.S. AQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 7 -
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:
Leasehold improvements
3 years straight line
Plant & machinery
3,5 & 7 years straight line
Fixtures, fittings & equipment
3 years straight line
Computer equipment
5 years straight line
Motor vehicles
3 years straight line
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.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.6
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
1.7
Cash at bank and in hand
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.
1.8
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 balance sheet 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.
R.S. AQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 8 -
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.
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.
Basic financial liabilities
Basic financial liabilities, including creditors, 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.
1.9
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.
1.10
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 profit and loss account 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.
R.S. AQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 9 -
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 profit and loss account, 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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
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.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
R.S. AQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 10 -
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
16
15
3
Tangible fixed assets
Leasehold improvements
Plant & machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 September 2022
47,113
162,040
56,716
1,430
267,299
Additions
289,445
1,720
20,664
24,995
336,824
Disposals
(2,316)
(2,316)
Transfers
(51,768)
51,768
At 31 August 2023
47,113
399,717
58,436
71,546
24,995
601,807
Depreciation and impairment
At 1 September 2022
27,766
70,787
56,612
858
156,023
Depreciation charged in the year
9,422
36,983
821
6,475
298
53,999
Transfers
(46,478)
46,478
At 31 August 2023
37,188
61,292
57,433
53,811
298
210,022
Carrying amount
At 31 August 2023
9,925
338,425
1,003
17,735
24,697
391,785
At 31 August 2022
19,347
91,253
104
572
111,276
R.S. AQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 11 -
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
701,164
451,014
Other debtors
142,158
159,012
843,322
610,026
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
10,294
42,279
Trade creditors
271,994
496,477
Taxation and social security
294,816
251,138
Other creditors
820,052
161,713
1,397,156
951,607
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans
22,094
30,833
7
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
32,083
67,083
8
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
R.S. AQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
8
Related party transactions
(Continued)
- 12 -
Dividends
Management charges
2023
2022
2023
2022
£
£
£
£
Entities with control, joint control or significant influence over the company
540,000
486,814
80,000
-
2023
2022
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
112,723
188,211
9
Parent company
During the current and previous year, the company was under the control of the director by virtue of his majority shareholding in the ultimate parent company, R.S. Aqua Holdings Limited, a company incorporated in England and Wales.
2023-08-312022-09-01false22 April 2024CCH SoftwareCCH Accounts Production 2024.100No description of principal activityMr M. M. StempMrs R. Stempfalsefalse016618172022-09-012023-08-3101661817bus:Director12022-09-012023-08-3101661817bus:CompanySecretary12022-09-012023-08-3101661817bus:RegisteredOffice2022-09-012023-08-31016618172023-08-31016618172022-08-3101661817core:LeaseholdImprovements2023-08-3101661817core:PlantMachinery2023-08-3101661817core:FurnitureFittings2023-08-3101661817core:ComputerEquipment2023-08-3101661817core:MotorVehicles2023-08-3101661817core:LeaseholdImprovements2022-08-3101661817core:PlantMachinery2022-08-3101661817core:FurnitureFittings2022-08-3101661817core:ComputerEquipment2022-08-3101661817core:MotorVehicles2022-08-3101661817core:CurrentFinancialInstrumentscore:WithinOneYear2023-08-3101661817core:CurrentFinancialInstrumentscore:WithinOneYear2022-08-3101661817core:CurrentFinancialInstruments2023-08-3101661817core:CurrentFinancialInstruments2022-08-3101661817core:Non-currentFinancialInstruments2023-08-3101661817core:Non-currentFinancialInstruments2022-08-3101661817core:ShareCapital2023-08-3101661817core:ShareCapital2022-08-3101661817core:CapitalRedemptionReserve2023-08-3101661817core:CapitalRedemptionReserve2022-08-3101661817core:RetainedEarningsAccumulatedLosses2023-08-3101661817core:RetainedEarningsAccumulatedLosses2022-08-3101661817core:LeaseholdImprovementscore:LeasedAssetsHeldAsLessee2022-09-012023-08-3101661817core:PlantMachinery2022-09-012023-08-3101661817core:FurnitureFittings2022-09-012023-08-3101661817core:ComputerEquipment2022-09-012023-08-3101661817core:MotorVehicles2022-09-012023-08-31016618172021-09-012022-08-3101661817core:LeaseholdImprovements2022-08-3101661817core:PlantMachinery2022-08-3101661817core:FurnitureFittings2022-08-3101661817core:ComputerEquipment2022-08-3101661817core:MotorVehicles2022-08-31016618172022-08-3101661817core:LeaseholdImprovements2022-09-012023-08-3101661817core:WithinOneYear2023-08-3101661817core:WithinOneYear2022-08-3101661817bus:PrivateLimitedCompanyLtd2022-09-012023-08-3101661817bus:SmallCompaniesRegimeForAccounts2022-09-012023-08-3101661817bus:FRS1022022-09-012023-08-3101661817bus:AuditExemptWithAccountantsReport2022-09-012023-08-3101661817bus:FullAccounts2022-09-012023-08-31xbrli:purexbrli:sharesiso4217:GBP