Company Registration No. 08187238 (England and Wales)
Britannia Parking Services Limited
Annual report and financial statements
for the period ended 31 December 2023
Britannia Parking Services Limited
Company information
Directors
S Rimmer
(Appointed 4 June 2024)
A Bidder
(Appointed 4 June 2024)
Secretary
S Rimmer
Company number
08187238
Registered office
7th Floor
County Gates House
300 Poole Road
Poole
Dorset
BH12 1AZ
Independent auditor
Saffery LLP
Midland House
2 Poole Road
Bournemouth
Dorset
BH2 5QY
Britannia Parking Services Limited
Contents
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Statement of income and retained earnings
8
Balance sheet
9
Notes to the financial statements
10 - 21
Britannia Parking Services Limited
Strategic report
For the period ended 31 December 2023
1
The directors present the strategic report for the period ended 31 December 2023.
Fair review of the business
The company is a wholly owned subsidiary of Britannia Parking Group Limited engaged in the management and operation of car parking facilities in major cities, town centres and shopping centres together with the provision of services for major retailers and national employers.
The company’s turnover for the period was £23.2m compared to £12.1m for 2022, a 91.7% increase over the previous year. The company’s profit before tax for the period was £2.8m (2022: £1.5m). The gross margin was 42% (2022: 41.6%) and net margin 9.6% (2022: 10.2%).
The company’s holding company continues to actively expand its portfolio and is currently in discussion over several new contracts together with renewing or extending several contracts on reviewed or enhanced terms. The blend of management contracts and leases provides comfort that the company is not adversely exposed to significant changes in the wider UK economy or UK legislation which in turn affect customer behaviour and user patterns. The focus on the use of technology also allows the company to control costs and remain competitive in the marketplace.
Principal risks and uncertainties
The company's approach to asset management is to develop added value be it through property related transactions or by managing third party car park assets or incomes. This is done by maintaining a cost-efficient focus and remaining consistent in the development of revenues. This is achieved by understanding and challenging both user patterns and market pricing whilst maintaining overall associated footfall quality. This approach is used on both owned sites and sites managed on behalf of partner and third-party clients.
In developing added value, the company adopts a clear objective test for each location.
S Rimmer
Director
18 September 2024
Britannia Parking Services Limited
Directors' report
For the period ended 31 December 2023
2
The directors present their annual report and financial statements for the period ended 31 December 2023.
Principal activities
The company is principally engaged in the ownership, operation and management of car parks and associated facilities.
Results and dividends
The results for the period are set out on page 8.
Ordinary dividends were paid amounting to £nil (2022: £1,500,000). The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
G Stuart
(Resigned 4 June 2024)
B Parker
(Resigned 4 June 2024)
K Oram
(Resigned 4 June 2024)
P Snowdon
(Resigned 4 June 2024)
S Rimmer
(Appointed 4 June 2024)
A Bidder
(Appointed 4 June 2024)
Auditor
Saffery LLP have expressed their willingness to continue in office.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
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.
On behalf of the board
S Rimmer
Director
18 September 2024
Britannia Parking Services Limited
Directors' responsibilities statement
For the period ended 31 December 2023
3
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:
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 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.
Britannia Parking Services Limited
Independent auditor's report
To the members of Britannia Parking Services Limited
4
Opinion
We have audited the financial statements of Britannia Parking Services Limited (the 'company') for the period ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet 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:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.
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.
Britannia Parking Services Limited
Independent auditor's report (continued)
To the members of Britannia Parking Services Limited
5
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 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.
Britannia Parking Services Limited
Independent auditor's report (continued)
To the members of Britannia Parking Services Limited
6
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
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. Also, 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, for example, forgery or intentional misrepresentations, or through collusion.
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.
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.
Britannia Parking Services Limited
Independent auditor's report (continued)
To the members of Britannia Parking Services Limited
7
Roger Wareham
Senior Statutory Auditor
For and on behalf of Saffery LLP
18 September 2024
Statutory Auditors
Midland House
2 Poole Road
Bournemouth
Dorset
BH2 5QY
Britannia Parking Services Limited
Statement of income and retained earnings
For the period ended 31 December 2023
8
Period
Year
ended
ended
31 December
30 June
2023
2022
Notes
£
£
Turnover
3
23,282,804
12,097,534
Cost of sales
(13,511,900)
(7,068,836)
Gross profit
9,770,904
5,028,698
Administrative expenses
(6,923,140)
(3,532,178)
Other operating income
32,437
Operating profit
4
2,847,764
1,528,957
Interest payable and similar expenses
6
(10,005)
Profit before taxation
2,847,764
1,518,952
Tax on profit
7
(617,506)
(285,371)
Profit for the financial period
2,230,258
1,233,581
Retained earnings brought forward
74,519
340,938
Dividends
8
(1,500,000)
Retained earnings carried forward
2,304,777
74,519
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Britannia Parking Services Limited
Balance sheet
As at 31 December 2023
9
31 December 2023
30 June 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
1,341,088
953,072
Current assets
Debtors
10
9,601,214
6,280,537
Cash at bank and in hand
1,069,084
1,106,315
10,670,298
7,386,852
Creditors: amounts falling due within one year
11
(9,436,545)
(8,104,273)
Net current assets/(liabilities)
1,233,753
(717,421)
Total assets less current liabilities
2,574,841
235,651
Provisions for liabilities
Deferred tax liability
12
269,964
161,032
(269,964)
(161,032)
Net assets
2,304,877
74,619
Capital and reserves
Called up share capital
15
100
100
Profit and loss reserves
16
2,304,777
74,519
Total equity
2,304,877
74,619
The financial statements were approved by the board of directors and authorised for issue on 18 September 2024 and are signed on its behalf by:
S Rimmer
Director
Company Registration No. 08187238
Britannia Parking Services Limited
Notes to the financial statements
For the period ended 31 December 2023
10
1
Accounting policies
Company information
Britannia Parking Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is 7th Floor, County Gates House, 300 Poole Road, Poole, Dorset, BH12 1AZ.
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 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 certain financial instruments at fair value. 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:
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Britannia Parking Group Limited. These consolidated financial statements are available from its registered office, 7th Floor, County Gates House, 300 Poole Road, Poole, Dorset, BH12 1AZ.
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
Reporting period
The reporting period has been extended by 6 months from 30 June 2022 to 31 December 2023. This means the prior year results are not entirely comparable with the current period.
Britannia Parking Services Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
1
Accounting policies (continued)
11
1.4
Turnover
Turnover is recognised when it is probable that the economic benefits will flow to the company and the revenue there from can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable for the sale of goods and services, net of trade discount and VAT.
(a) Gross income
Including managed site owner income represents the combined turnover of the company acting as principal and agent on behalf of landholders.
(b) Sales of services
Revenue is recognised in the accounting period in which the services are rendered by reference to stage of completion of the specific transaction assessed on the basis of the actual service provided as a proportion of the total services to be provided.
Parking services and parking revenue is recognised on date of the entitlement to park. Revenue from season tickets is recognised over the life of the respective ticket in accordance with the day or days to which the ticket gives a valid entitlement to park. Season ticket monies received in advance of the entitlement to park date(s) are recorded as deferred income in the balance sheet.
Income from parking charge notices is recognised when it is probable that the income will be received.
Management services revenue is recognised when the service has been provided and is matched to the period of service provision.
(c) Sales of goods
Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer and the amount of revenue can be measured reliably.
1.5
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:
Car park setup costs
20% straight line
Fixtures, fittings & equipment
20% and 25% reducing balance
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.
1.6
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.
Britannia Parking Services Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
1
Accounting policies (continued)
12
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
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.
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.
Basic financial assets
Basic financial assets, which include debtors, 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.
Britannia Parking Services Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
1
Accounting policies (continued)
13
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.
Basic financial liabilities
Other financial liabilities, including debt instruments that do not meet the definition of a basic financial instrument, are measured at fair value through profit or loss.
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 may be designated as being measured at fair value though 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.
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.
Britannia Parking Services Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
1
Accounting policies (continued)
14
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
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 period. 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.
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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the period they are payable.
Britannia Parking Services Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
1
Accounting policies (continued)
15
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 leased 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.
2
Critical accounting 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.
Fees from parking charge notices (PCNs) are recognised on the date of infraction, based upon the expected value of receipts derived from historical collection rates and ageing. At the period end, the estimated value of accrued revenue from PCNs is £2,093,247 (2022: £975,976).
3
Turnover and other revenue
2023
2022
£
£
Other revenue
Grants received
-
32,437
The total turnover of the group for the period has been derived from its principal activity wholly undertaken in the United Kingdom.
4
Operating profit
2023
2022
Operating profit for the period is stated after charging/(crediting):
£
£
Government grants
-
(32,437)
Fees payable to the company's auditor for the audit of the company's financial statements
17,168
12,870
Depreciation of owned tangible fixed assets
353,237
193,627
Loss on disposal of tangible fixed assets
40,180
113,542
Operating lease charges
481,699
346,324
Britannia Parking Services Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
16
5
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
2022
Number
Number
Parking attendants and supervisors
92
82
Business development and operational management
1
1
Total
93
83
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,215,953
1,843,235
Social security costs
209,501
100,903
Pension costs
60,766
37,864
3,486,220
1,982,002
6
Interest payable and similar expenses
2023
2022
£
£
Other interest
10,005
Britannia Parking Services Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
17
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
508,574
274,073
Deferred tax
Origination and reversal of timing differences
108,932
11,298
Total tax charge
617,506
285,371
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
2,847,764
1,518,952
Expected tax charge based on the standard rate of corporation tax in the UK of 22.04% (2022: 19.00%)
627,647
288,601
Tax effect of expenses that are not deductible in determining taxable profit
8,744
21,352
Permanent capital allowances in excess of depreciation
(127,924)
(35,639)
Movement in deferred tax
108,932
11,298
Movement in pension provision
107
(241)
Taxation charge for the period
617,506
285,371
8
Dividends
2023
2022
£
£
Final paid
1,500,000
Britannia Parking Services Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
18
9
Tangible fixed assets
Car park setup costs
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 July 2022
188,085
1,664,545
1,852,630
Additions
72,807
709,680
782,487
Disposals
(7,701)
(189,219)
(196,920)
At 31 December 2023
253,191
2,185,006
2,438,197
Depreciation and impairment
At 1 July 2022
129,600
769,958
899,558
Depreciation charged in the period
40,670
312,567
353,237
Eliminated in respect of disposals
(4,952)
(150,734)
(155,686)
At 31 December 2023
165,318
931,791
1,097,109
Carrying amount
At 31 December 2023
87,873
1,253,215
1,341,088
At 30 June 2022
58,485
894,587
953,072
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
970,056
367,751
Amounts owed by group undertakings
6,186,822
3,676,258
Other debtors
250,474
1,134,609
Prepayments and accrued income
2,193,862
1,101,919
9,601,214
6,280,537
11
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
2,715,677
2,258,598
Corporation tax
757,123
274,073
Other taxation and social security
390,402
Other creditors
38,134
70,382
Accruals and deferred income
5,535,209
5,501,220
9,436,545
8,104,273
Britannia Parking Services Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
19
12
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
269,964
161,032
2023
Movements in the period:
£
Liability at 1 July 2022
161,032
Charge to profit or loss
108,932
Liability at 31 December 2023
269,964
The deferred tax liability set out above relates to accelerated capital allowances.
13
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
12
269,964
161,032
269,964
161,032
14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
60,766
37,864
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.
15
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
The company has one class of shares which carry no right to fixed income.
Britannia Parking Services Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
20
16
Reserves
Profit and loss reserves
The profit and loss reserves relates to accumulated profits and losses net of dividends.
17
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
368,947
37,500
Between two and five years
1,487,083
68,836
1,856,030
106,336
18
Related party transactions
Transactions with related parties
During the period the company entered into the following transactions with related parties:
During the period the company received services totalling £160,400 (2022: £34,013) from companies controlled by G Stuart, a director of the company, as well as providing services totally £316,422 (2022: £nil) to these same companies. At the period end, £nil (2022: £13,200) was owed to connected companies, and £59,036 (2022: £nil) was owed from connected companies. The balance of £59,036 was subsequently written off following the year end.
A group set-off is held in respect of the company's bank balances.
A third party guarantee has been given by one of the directors in respect of the company's bank balances.
The company has taken advantage of the exemption available in FRS102 section 33 from the requirement to disclose transactions with group companies on the grounds that the company is a wholly owned subsidiary within the group.
Britannia Parking Services Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
21
19
Controlling party
During the period, the ultimate parent undertaking of the largest and smallest group of undertakings for which the group accounts are presented is Britannia Parking Group Limited and the ultimate controlling party is G Stuart.
The financial statements of the company are consolidated in the financial statements of Britannia Parking Group Limited. These consolidated financial statements are available from its registered office, 7th Floor, County Gates House, 300 Poole Road, Poole, Dorset, BH12 1AZ.
Post year end, on 25 July 2024, Q-Park UK Limited acquired 100% of the share capital of Britannia Parking Group Limited. Following the acquisition, the Company's immediate parent undertaking is Q-Park UK Limited, of Leeds, United Kingdom, LS1 2AD.
The Company's ultimate parent undertaking is Q-Park Holding B.V.
The Company's controlling party, due to a majority shareholding in the ultimate group is KKR Byzantium Infrastructure Aggregator LP a limited partnership registered in Canada.
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