REGISTERED NUMBER: 06553630 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
RIXIL SERVICES LIMITED |
REGISTERED NUMBER: 06553630 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
RIXIL SERVICES LIMITED |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
RIXIL SERVICES LIMITED |
COMPANY INFORMATION |
for the Year Ended 31 December 2023 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 December 2023 |
The director presents his strategic report of the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The group's principal activity is a multidisciplinary construction consultancy operating throughout Europe. |
The results for the year and the financial position of the group are shown in the financial statements, with a healthy balance sheet having retained shareholders' funds in the region of £9.7 million. |
We continue to have an excellent relationship with our key retained customers alongside new ones. |
Our core values and behaviours shared by all our teams continue to drive our vision. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and execution of our strategy are subject to the same risks encountered by most businesses. Going forward new working patterns have emerged for our colleagues and requirements for the built environment in certain sectors, however with our continued diversification we are well placed for the future, both in our existing and new market sectors. Risks and their effects are closely monitored to ensure we continue to achieve our short and long term goals. |
With regard to credit risks, it is group policy that we carefully monitor debtors by a mixture of external and internal review procedures in order to manage the extent to which the risk of customer bad debt may impact our liquidity and our ability to maintain positive cash balances. |
KEY FINANCIAL PERFORMANCE INDICATORS |
Whilst the group continues to seek to achieve growth via acquisitions, new territories, new sectors and new services, the core services of the group will continue to be in construction related design and management services. In the opinion of the board, the trading activities of the group are simple and straightforward and complex financial key performance indicators are not required in order to gain an understanding of its development, performance or market position. |
Net revenues generated, operating profits and staff utilisation are considered to be important key performance indicators and these are monitored on a monthly basis by the board. |
ON BEHALF OF THE BOARD: |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
REPORT OF THE DIRECTOR |
for the Year Ended 31 December 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 31 December 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
FUTURE DEVELOPMENTS |
The directors are proposing to maintain their current management policies which they envisage will lead to stability and future growth. |
DIRECTOR |
CHARITABLE DONATIONS |
During the year under review the group made donations of £4,884 (2022 - £10,943) to various charities in support of fundraising events held by its customers. |
CREDIT RISKS |
The group manages credit risk by obtaining external credit evaluations on customers and regular monitoring of the outstanding debt. The wide customer base mitigates significant exposure to any individual customer default. |
GOING CONCERN |
The financial statements are prepared under the going concern basis. The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the period of 12 months from the date of approval of these financial statements. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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. |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
REPORT OF THE DIRECTOR |
for the Year Ended 31 December 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is 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 he 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. |
AUDITORS |
The auditors, Paul Howley & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RIXIL SERVICES LIMITED |
Opinion |
We have audited the financial statements of Rixil Services Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, 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 December 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 director's 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RIXIL SERVICES LIMITED |
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 Director 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 Director 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 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 Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RIXIL SERVICES LIMITED |
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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
In planning and designing our audit tests, we identify and assess the risks of material misstatement within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the business and sector, the control environment and the business performance along with the results of our enquiries of management. |
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to 2006 Companies Act, relevant tax legislation, environmental and consumer rights regulation and anti-bribery and corruption legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls), and determined the principal risks. Audit procedures performed by the engagement team included: |
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to recognize non compliance with applicable laws and regulations; |
- Enquiries of the directors and management to identify any instances of non-compliance including consideration of known or suspected instances of fraud; |
- Evaluation of management's internal controls designed to prevent and detect irregularities; |
- Review of meeting minutes, and where applicable, correspondence with relevant regulatory authorities; |
- Performed analytical procedures to identify any unusual or unexpected relationships; |
- Performed physical verification of tangible fixed assets to confirm existence and ownership; |
- Investigated the rationale behind significant or unusual transactions; |
- Detailed testing of journal entries and assumptions made. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected it the financial statements. 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 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 |
RIXIL SERVICES LIMITED |
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. |
for and on behalf of |
42 Pitt Street |
Barnsley |
South Yorkshire |
S70 1BB |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER | 3 | 11,304,980 | 13,256,789 |
Cost of sales | 7,946,819 | 8,064,568 |
GROSS PROFIT | 3,358,161 | 5,192,221 |
Administrative expenses | 3,094,426 | 2,422,979 |
263,735 | 2,769,242 |
Other operating income | 19,200 | 19,525 |
OPERATING PROFIT | 6 | 282,935 | 2,788,767 |
Interest receivable and similar income | 377 | 919 |
283,312 | 2,789,686 |
Interest payable and similar expenses | 7 | 16,462 | 21,603 |
PROFIT BEFORE TAXATION | 266,850 | 2,768,083 |
Tax on profit | 8 | 180,984 | 545,024 |
PROFIT FOR THE FINANCIAL YEAR |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
CONSOLIDATED BALANCE SHEET |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | - | - |
Tangible assets | 11 | 1,735,477 | 1,794,242 |
Investments | 12 | - | - |
1,735,477 | 1,794,242 |
CURRENT ASSETS |
Debtors | 13 | 9,266,796 | 8,310,268 |
Cash at bank and in hand | 1,744,669 | 3,197,812 |
11,011,465 | 11,508,080 |
CREDITORS |
Amounts falling due within one year | 14 | 2,182,869 | 2,558,223 |
NET CURRENT ASSETS | 8,828,596 | 8,949,857 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
10,564,073 |
10,744,099 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(35,000 |
) |
(55,000 |
) |
PROVISIONS FOR LIABILITIES | 18 | (72,559 | ) | (76,452 | ) |
NET ASSETS | 10,456,514 | 10,612,647 |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
CONSOLIDATED BALANCE SHEET - continued |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 19 | 2 | 2 |
Revaluation reserve | 20 | 20,784 | 20,784 |
Retained earnings | 20 | 9,684,826 | 9,780,984 |
SHAREHOLDERS' FUNDS | 9,705,612 | 9,801,770 |
NON-CONTROLLING INTERESTS | 21 | 750,902 | 810,877 |
TOTAL EQUITY | 10,456,514 | 10,612,647 |
The financial statements were approved by the director and authorised for issue on 19 September 2024 and were signed by: |
C M Hibbert - Director |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
COMPANY BALANCE SHEET |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 18 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Revaluation reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 96,655 | 1,007,721 |
The financial statements were approved by the director and authorised for issue on |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Revaluation |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 January 2022 | 2 | 9,173,956 | 20,784 |
Changes in equity |
Total comprehensive income | - | 607,028 | - |
Balance at 31 December 2022 | 2 | 9,780,984 | 20,784 |
Changes in equity |
Total comprehensive income | - | (96,158 | ) | - |
Balance at 31 December 2023 | 2 | 9,684,826 | 20,784 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 January 2022 | 9,194,742 | 936,846 | 10,131,588 |
Changes in equity |
Dividends | - | (1,742,000 | ) | (1,742,000 | ) |
Total comprehensive income | 607,028 | 1,616,031 | 2,223,059 |
Balance at 31 December 2022 | 9,801,770 | 810,877 | 10,612,647 |
Changes in equity |
Dividends | - | (242,000 | ) | (242,000 | ) |
Total comprehensive income | (96,158 | ) | 182,025 | 85,867 |
Balance at 31 December 2023 | 9,705,612 | 750,902 | 10,456,514 |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 922,708 | 2,323,673 |
Interest paid | (16,462 | ) | (21,603 | ) |
Tax paid | (587,686 | ) | (1,006,179 | ) |
Taxation refund | 112,823 | 107,269 |
Net cash from operating activities | 431,383 | 1,403,160 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (78,720 | ) | (64,950 | ) |
Sale of tangible fixed assets | - | 4,874 |
Interest received | 377 | 918 |
Net cash from investing activities | (78,343 | ) | (59,158 | ) |
Cash flows from financing activities |
Loan repayments in year | (99,183 | ) | (98,877 | ) |
Loans to associated companies | (565,000 | ) | (2,625,500 | ) |
Amount introduced by directors | - | 100,000 |
Amount withdrawn by directors | (900,000 | ) | (300,000 | ) |
Dividends paid to minority interests | (242,000 | ) | (1,742,000 | ) |
Net cash from financing activities | (1,806,183 | ) | (4,666,377 | ) |
Decrease in cash and cash equivalents | (1,453,143 | ) | (3,322,375 | ) |
Cash and cash equivalents at beginning of year |
2 |
3,197,812 |
6,520,187 |
Cash and cash equivalents at end of year |
2 |
1,744,669 |
3,197,812 |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation | 266,850 | 2,768,083 |
Depreciation charges | 137,487 | 143,024 |
Profit on disposal of fixed assets | - | (4,874 | ) |
Finance costs | 16,462 | 21,603 |
Finance income | (377 | ) | (919 | ) |
420,422 | 2,926,917 |
(Increase)/decrease in trade and other debtors | (339,402 | ) | 427,144 |
Increase/(decrease) in trade and other creditors | 841,688 | (1,030,388 | ) |
Cash generated from operations | 922,708 | 2,323,673 |
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 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 1,744,669 | 3,197,812 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 3,197,812 | 6,520,187 |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 December 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,197,812 | (1,453,143 | ) | 1,744,669 |
3,197,812 | (1,453,143 | ) | 1,744,669 |
Debt |
Debts falling due within 1 year | (100,074 | ) | 79,182 | (20,892 | ) |
Debts falling due after 1 year | (55,000 | ) | 20,000 | (35,000 | ) |
(155,074 | ) | 99,182 | (55,892 | ) |
Total | 3,042,738 | (1,353,961 | ) | 1,688,777 |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Rixil Services Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
All monetary values stated within these financial statements are rounded to the nearest £. |
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. |
Going concern |
Management have prepared forecasts that have been sensitised to reflect plausible downside scenarios which have been reviewed by the directors. These forecasts demonstrate that the group will generate profits and positive cash returns in the year ended 31 December 2024 and beyond and that the group will have sufficient cash reserves to enable it to meet all obligations as they fall due for a period of at least 12 months from the date of signing these financial statements. |
Having considered the above the directors are satisfied that the group has adequate resources to continue to operate for the foreseeable future. For this reason, they continue to adopt the going concern basis for preparing these financial statements. |
Basis of consolidation |
The consolidated profit and loss account and balance sheet include the financial statements of the company and its subsidiary undertakings made up to 31 December 2023. |
A subsidiary is an entity controlled by the company by virtue of ownership, directly or via another subsidiary, of more than 50% of the voting rights in the subsidiary entity. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
The results of subsidiaries sold or acquired are included in the profit and loss account up to, or from the date control passes except where a sale or acquisition transaction is based upon financial statements to a specific date and that the right to enjoy income either commences or ceases at the date of those financial statements; in such cases, the results are included up to, or from the date that the right to enjoy income passes. All unrealised intra-group profits and losses have been eliminated on consolidation. |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key estimates |
The preparation of the Company's financial statements includes the use of estimates and assumptions. Although the estimates used are based on management's best information about current circumstances and future events and actions, actual results may differ from those estimates. |
The most significant estimates and judgements are: |
Recoverability of intercompany debtors - the Company assesses the recoverability of intercompany debtors on an annual basis, and make any provision where necessary in the financial statements.The financial results and forward looking cashflows of intercompany debtors are used as part of this assessment. |
Turnover |
Turnover represents net invoiced sales of professional services, excluding value added tax. |
Revenue is recognised when the company has been judged to have achieved the right to consideration resulting from a level of completed performance under individual contracts but only to the extent that the outcome of such contracts can be assessed with reasonable certainty. |
Goodwill |
Goodwill on consolidation arising from the acquisition of Barraclough English and Wright Limited in 2016, has been fully amortised. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
i. Financial assets |
Basic financial assets, including trade and other receivables, cash and bank, are initially recognised at transaction price. |
Other financial assets 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 the profit and loss. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled; or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party; or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
ii. Financial liabilities |
Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loans and amortised over the term of the loan. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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. |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Gains or losses on translation are included in the profit and loss account. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Hire purchase and leasing commitments |
Assets acquired under finance leases are capitalised and the outstanding future lease obligations are shown in creditors. Operating lease rentals are charged to the profit and loss account on a straight line basis over the period of the lease. |
Amounts recoverable on contracts |
To the extent that amounts recoverable on contracts are considered to be in excess of amounts invoiced to date, those sums are included in debtors. To the extent that amounts invoiced to date are considered to be in excess of amounts recoverable on contracts, those sums are included in creditors. |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
31.12.23 | 31.12.22 |
£ | £ |
United Kingdom | 10,309,862 | 12,205,158 |
Europe | 975,782 | 1,046,569 |
Asia | 14,983 | 3,331 |
North America | 4,353 | 1,731 |
11,304,980 | 13,256,789 |
4. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries | 6,068,857 | 5,894,514 |
Social security costs | 644,366 | 667,468 |
Other pension costs | 306,927 | 205,844 |
7,020,150 | 6,767,826 |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Directors | 7 | 6 |
Fee earners | 106 | 106 |
Management and administrative staff | 17 | 17 |
The above values relate to the group as a whole. |
The average number of employees during the year for Rixil Services Limited as an individual company was 15 (2022 - 15). |
5. | DIRECTORS' EMOLUMENTS |
31.12.23 | 31.12.22 |
£ | £ |
Director's remuneration | 382,442 | 322,299 |
Director's pension contributions to money purchase schemes | 32,328 | 30,628 |
There are no directors in the company or the group whose emoluments exceed £200,000 |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
£ | £ |
Depreciation - owned assets | 137,485 | 143,022 |
Profit on disposal of fixed assets | - | (4,874 | ) |
Auditors' remuneration | 21,308 | 18,908 |
Foreign exchange differences | (12,992 | ) | (15,771 | ) |
Rentals paid under operating leases | 291,376 | 270,297 |
Fees payable to the company's auditor are solely for the audit of the financial statements. |
Exceptional items |
During the year the group provided working capital to a company associated by common control to facilitate that company in providing goods and services that the group do not provide. Unfortunately, the enterprise has not proved successful and as a consequence, an amount of £365,000 has been provided for in the Profit and Loss statement as being irrecoverable at the year end and due to the nature of the debt, no tax relief can be enjoyed on the amounts so provided. |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Bank interest | 824 | 1,074 |
Bank loan interest | 3,297 | 3,484 |
Other interest | 12,341 | 17,045 |
16,462 | 21,603 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax | 184,877 | 552,851 |
Deferred tax | (3,893 | ) | (7,827 | ) |
Tax on profit | 180,984 | 545,024 |
UK corporation tax has been charged at 23.50 % . |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
8. | TAXATION - continued |
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: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax | 266,850 | 2,768,083 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.500 % (2022 - 19 %) |
62,710 |
525,936 |
Effects of: |
Expenses not deductible for tax purposes | 100,304 | 13,928 |
Depreciation in excess of capital allowances | 12,992 | 13,894 |
Utilisation of tax losses | 6,688 | - |
(Profit)/loss on disposal of fixed assets | - | (907 | ) |
Other tax adjustments | 4,003 | - |
Increase/(decrease) in deferred tax provision | (3,893 | ) | (7,827 | ) |
Adjustment in tax on profit due rate difference | (1,820 | ) | - |
Total tax charge | 180,984 | 545,024 |
The UK corporation tax rate increased from 19% to 25% with effect from 1 April 2023. |
9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
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. |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 70,414 |
AMORTISATION |
At 1 January 2023 |
and 31 December 2023 | 70,414 |
NET BOOK VALUE |
At 31 December 2023 | - |
At 31 December 2022 | - |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
11. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Short | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1 January 2023 | 1,692,046 | 287,386 | 78,740 |
Additions | - | - | - |
Disposals | - | - | - |
At 31 December 2023 | 1,692,046 | 287,386 | 78,740 |
DEPRECIATION |
At 1 January 2023 | 166,536 | 161,622 | 78,329 |
Charge for year | 31,854 | 27,766 | 260 |
Eliminated on disposal | - | - | - |
At 31 December 2023 | 198,390 | 189,388 | 78,589 |
NET BOOK VALUE |
At 31 December 2023 | 1,493,656 | 97,998 | 151 |
At 31 December 2022 | 1,525,510 | 125,764 | 411 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 182,445 | 35,500 | 695,440 | 2,971,557 |
Additions | - | - | 78,720 | 78,720 |
Disposals | - | (12,000 | ) | - | (12,000 | ) |
At 31 December 2023 | 182,445 | 23,500 | 774,160 | 3,038,277 |
DEPRECIATION |
At 1 January 2023 | 141,088 | 16,406 | 613,334 | 1,177,315 |
Charge for year | 12,908 | 5,875 | 58,822 | 137,485 |
Eliminated on disposal | - | (12,000 | ) | - | (12,000 | ) |
At 31 December 2023 | 153,996 | 10,281 | 672,156 | 1,302,800 |
NET BOOK VALUE |
At 31 December 2023 | 28,449 | 13,219 | 102,004 | 1,735,477 |
At 31 December 2022 | 41,357 | 19,094 | 82,106 | 1,794,242 |
Included in cost of land and buildings is freehold land of £100,000 (2022 - £100,000) which is not depreciated. |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Company |
Freehold | Motor | Computer |
property | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Included in cost of land and buildings is freehold land of £ 100,000 (2022 - £ 100,000 ) which is not depreciated. |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Quayside House, Furnival Road, Sheffield, S4 7YA |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Quayside House, Furnival Road, Sheffield, S4 7YA |
Nature of business: |
% |
Class of shares: | holding |
13. | DEBTORS |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 2,878,560 | 2,822,915 |
Amounts owed by group undertakings | - | - |
Amounts due under contracts | 263,361 | 227,540 |
Other debtors | 5,699,016 | 4,940,143 |
Tax | 52,124 | - |
Prepayments | 373,735 | 319,670 |
9,266,796 | 8,310,268 |
Amounts falling due after more than one | year: |
Amounts owed by group undertakings | - | - |
Aggregate amounts | 9,266,796 | 8,310,268 |
Amounts owed by group undertakings are unsecured, have no fixed date of repayment, no interest charge and are repayable on demand. |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 20,892 | 100,074 |
Trade creditors | 543,061 | 156,754 |
Amounts owed to group undertakings | - | - |
Tax | - | 237,860 |
Social security and other taxes | 248,179 | 234,448 |
VAT | 611,616 | 317,966 | 79,730 | 57,303 |
Other creditors | 330,488 | 321,328 |
Directors' current accounts | 85,598 | 985,598 | 81,598 | 381,598 |
Accrued expenses | 343,035 | 204,195 |
2,182,869 | 2,558,223 |
Amounts owed to group undertakings are unsecured, have no fixed date of repayment, no interest charge and are repayable on demand. |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans (see note 16) | 35,000 | 55,000 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 20,892 | 100,074 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 20,000 | 20,000 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 15,000 | 35,000 |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable | operating leases |
31.12.23 | 31.12.22 |
£ | £ |
Within one year | 281,482 | 273,707 |
Between one and five years | 360,816 | 659,031 |
642,298 | 932,738 |
18. | PROVISIONS FOR LIABILITIES |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Deferred tax | 72,559 | 76,452 | 44,719 | 46,900 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 76,452 |
Accelerated capital allowances | (3,893 | ) |
Balance at 31 December 2023 | 72,559 |
Company |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Accelerated capital allowances | (2,181 | ) |
Balance at 31 December 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary | £1 | 2 | 2 |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
19. | CALLED UP SHARE CAPITAL - continued |
Rights, preferences and restriction relation to ordinary shares |
Ordinary shares have the right to attend and vote at members' meetings and on members' written resolutions, with one vote per share on a poll or a written resolution, and one vote each on a show of hands. |
Ordinary shares are eligible for full dividends as well as any distribution including on winding up. |
Ordinary shares are not redeemable. |
20. | RESERVES |
Group |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 9,780,984 | 20,784 | 9,801,768 |
Deficit for the year | (96,158 | ) | (96,158 | ) |
At 31 December 2023 | 9,684,826 | 20,784 | 9,705,610 |
Company |
Revaluation |
reserve |
£ |
At 1 January 2023 |
and 31 December 2023 |
21. | NON-CONTROLLING INTERESTS |
Minority interest represents the share of the group's subsidiaries owned by other shareholders. |
22. | RELATED PARTY DISCLOSURES |
Entities over which the entity has control, joint control or significant influence |
31.12.23 | 31.12.22 |
£ | £ |
Sales of professional services to subsidiaries | 565,200 | 593,700 |
Interest charges to subsidiaries | - | 55,800 |
Rent & serviced office charges to subsidiaries | 170,400 | 170,400 |
Amounts due to parent company from subsidiaries | 482,923 | 863,781 |
Amounts due from parent company to subsidiaries | 2,285 | - |
RIXIL SERVICES LIMITED (REGISTERED NUMBER: 06553630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
22. | RELATED PARTY DISCLOSURES - continued |
Other related parties |
31.12.23 | 31.12.22 |
£ | £ |
Sales of professional services to other related parties | 156,860 | 175,701 |
Purchases of professional services from other related parties | 350,910 | 370,178 |
Rent & serviced office charges to other related parties | 195,763 | 204,956 |
Amounts due to parent company from other related parties | 5,573,097 | 4,918,168 |
Amounts due to subsidiaries from other related parties | 461,342 | 315,150 |
Transactions with other related parties relate to transactions with companies under common control. |
In some cases, office space is provided to and by related parties at no charge. All other transactions between the company and related parties including fellow group companies are concluded under normal market conditions. |
23. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is C M & J Hibbert by virtue of their 100% interest in the issued share capital of the Rixil Services Limited. |