REGISTERED NUMBER: |
Soil Engineering Geoservices Limited |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2023 |
REGISTERED NUMBER: |
Soil Engineering Geoservices Limited |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2023 |
Soil Engineering Geoservices Limited (Registered number: 02727976) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
Soil Engineering Geoservices Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
71/73 Hoghton Street |
Southport |
Merseyside |
PR9 0PR |
Soil Engineering Geoservices Limited (Registered number: 02727976) |
Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The Company's principal activity is ground investigation and stabilisation. This includes: |
- Drilling and Grouting |
- Site Investigation |
- Specialist drilling |
- Laboratory testing |
BUSINESS MODEL |
The Company is one of the UK's leading geotechnical contractors with a proven capability in all elements of ground investigation and stabilisation. The Company is part of the worldwide foundation group, Soletanche Bachy, itself one of the largest and most diverse foundation engineering company in the world. |
The Company employs a skilled workforce and owns a modern plant fleet. The Company carries out projects nationally for a wide range of major clients. |
The Company views health, safety and training as priority areas to ensure the wellbeing and development of its human resources. The Company is also focused on reducing its environmental impact whilst delivering the services required by our clients effectively. |
BUSINESS REVIEW |
Economic conditions have continued to be challenging in the year and the market has remained very competitive. Despite this the Company has had another successful year. Turnover has decreased by £2.6m as works on a number of the HS2 projects are coming to an end. This decrease in turnover has resulted in a decrease in operating profit also. |
The Company continues to work on the High Speed 2 project along with other key infrastructure projects and some of these works are carried over into 2024. |
KEY PERFORMANCE INDICATORS |
The Company views turnover and profitability as the main indicators in the business. |
Turnover has decreased in 2023 by 9% to £27.1m (2022: £29.7m) which resulted in an operating profit of £481k compared to an operating profit of £2.2m in 2022. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The key challenge ahead will be ensuring a consistent workload is secured and carried out safely and profitably. There is an inherent risk of competition in the market and the Company is always looking to provide the best technological solution at the best value for the client. |
Another main risk is the non-payment of client debts and the Company regularly monitors the financial health of its clients to ensure bad debts are not a significant issue in the Company. |
Soil Engineering Geoservices Limited (Registered number: 02727976) |
Strategic Report |
for the Year Ended 31 December 2023 |
SECTION 172(1) STATEMENT |
The Board confirm they have carried out their s.172 duties under the Companies Act 2006. The Board have developed a detailed strategic action plan which focuses on 6 key areas, Health & Safety, Sustainability and environment, increased profitability, productivity, People and Innovation. |
These areas whilst having independent actions are also interdependent and the success of the action plan will provide benefits to multiple stakeholders ensuring our staff are valued, rewarded and motivated to provide innovative and quality solutions to our clients. |
Employee engagement statement |
The Company makes full use of its intranet, regular news flashes and in-house magazines, with contributions from employees, to communicate matters of interest to as wide an audience as possible. |
The company offers an employee share ownership scheme which allows employees to purchase shares in the Company's ultimate parent company Vinci SA. Under the terms of this scheme the Company will match the shares purchased by the employee. |
It is the Company's policy to give full and fair consideration to the employment of disabled people wherever possible, in as much as their abilities allow. Efforts are and will continue to be made to retain employees who become disabled whilst in service, and to afford them whatever training they may need to take on new challenges in the Company. |
Engagement with other key stakeholders |
Customers |
The Company works closely and collaboratively with our customers to ensure the most cost effective and efficient solutions are produced to deliver our works in accordance with our customer's needs. We believe open communication at all stages of the works is vital to ensure our customers receive the end result they are happy with. We carry out satisfaction surveys following completion of our works to understand the areas that went well and review where improvements can be made. |
Suppliers |
The Company has a number of national framework contracts with key suppliers which provides visibility and consistency for those suppliers as well as ensuring we have access to the key products and services we require. We have regular meetings with our suppliers to ensure the expectations of both parties are being met and where they are not action plans are put in place to address any issues. |
The Company also recognises the importance of working with local smaller suppliers ensuring the local regions will benefit economically from our presence there. |
Community |
The Company works nationally and provide employment opportunities through our local offices, depot and worksites. We have a well-established apprenticeship programme providing an excellent training programme. The Company and employees will provide support and donations to local charities including through the Group charity. Vinci Foundation. |
Soil Engineering Geoservices Limited (Registered number: 02727976) |
Strategic Report |
for the Year Ended 31 December 2023 |
DEVELOPMENTS |
The Company will continue promoting its behavioural safety initiative which places safe practices and behaviour at the forefront of all we do. |
The Company continues to look at ways to increase its profitability through increased market share, improved site productivity and long term relationships with key clients and partners. With a good level of secured works heading into the 2024 financial year, the Board are confident of another positive year. |
ON BEHALF OF THE BOARD: |
Soil Engineering Geoservices Limited (Registered number: 02727976) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of ground investigation and stabilisation. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2023 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
EMPLOYEES |
It is the Company's policy to give full and fair consideration to the employment of disabled people wherever possible, in as much as their abilities allow. Efforts are and will continue to be made to retain employees who become disabled whilst in service, and to afford them whatever training they may need to take on new challenges in the Company. |
The Company makes full use of regular news flashes and in-house magazines, with contributions from employees, to communicate matters of interest to as wide an audience as possible. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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. |
Soil Engineering Geoservices Limited (Registered number: 02727976) |
Report of the Directors |
for the Year Ended 31 December 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Soil Engineering Geoservices Limited |
Opinion |
We have audited the financial statements of Soil Engineering Geoservices Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 company's affairs as at 31 December 2023 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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. |
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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Soil Engineering Geoservices Limited |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, 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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the 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. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- Enquiry of management and those charged with governance around actual and potential litigation and claims; |
- Enquiry of senior management to identify any instances of non-compliance with laws and regulations; |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and reviewing accounting estimates for bias. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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 |
Soil Engineering Geoservices 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 |
Statutory Auditor |
71/73 Hoghton Street |
Southport |
Merseyside |
PR9 0PR |
Soil Engineering Geoservices Limited (Registered number: 02727976) |
Statement of Comprehensive Income |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £'000 | £'000 |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
535 | 2,245 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Soil Engineering Geoservices Limited (Registered number: 02727976) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £'000 | £'000 | £'000 | £'000 |
FIXED ASSETS |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Soil Engineering Geoservices Limited (Registered number: 02727976) |
Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£'000 | £'000 | £'000 |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
Soil Engineering Geoservices Limited (Registered number: 02727976) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Soil Engineering Geoservices Limited (the "Company") is a company limited by shares and incorporated, domiciled and registered in England in the UK. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements were prepared in accordance with Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland ("FRS 102"). The presentation currency of these financial statements is sterling. All amounts in the financial statements have been rounded to the nearest £1,000. |
The financial statements are prepared on the historical cost basis. |
The Company's ultimate parent undertaking, Vinci S.A. includes the Company in its consolidated financial statements. The consolidated financial statements of Vinci S.A. are prepared in accordance with International Financial Reporting Standards as adopted by the EU and are available to the public and may be obtained from the address given in note 16. In these financial statements, the Company is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS 102 in respect of the following disclosures: |
- Reconciliation of the number of shares outstanding from the beginning to end of the period; |
- Cash Flow Statement and related notes; and |
- Key Management Personnel compensation. |
As the consolidated financial statements of Vinci S.A. include the equivalent disclosures, the Company has also taken the exemptions under FRS 102 available in respect of the following disclosures: |
- Certain disclosures required by FRS 102.26 Share Based Payments; and, |
- The disclosures required by FRS 102.11 Basic Financial Instruments and FRS 102.12 Other Financial Instrument Issues in respect of financial instruments not falling within the fair value accounting rules of Paragraph 36(4) of Schedule 1. |
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements. |
The Company proposes to continue to adopt the reduced disclosure framework of FRS 102 in its next financial statements. |
Related parties |
As the Company is a wholly-owned subsidiary of Soletanche Freyssinet S.A., the Company has taken advantage of the exemption contained in FRS 102.33.1A and has therefore not disclosed transactions or balances with wholly-owned entities which form part of that group. |
Going concern |
The Company's business model results in a positive working capital cycle which generates sufficient cash flows to fund the business. The Company also shows a net asset position at 31 December 2023. The directors have reviewed the current performance and prepared cash flow forecasts for the next 12 months. The realisation of these forecasts may be affected by a number of factors, including changes in customer behaviour, however, the directors are confident that the Company has adequate resources to continue its operations for the foreseeable future. |
For these reasons, they continue to adopt the going concern basis in preparing the financial statements. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate. |
Soil Engineering Geoservices Limited (Registered number: 02727976) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover has been calculated on the basis of the value of work done during the year including the settlement of monetary claims on contracts completed in previous years, and includes the Company's share of any turnover from joint arrangements, net of VAT where appropriate. |
Construction contracts |
The amount of profit attributable to the stage of completion of a long term contract is recognised when the outcome of the contract can be foreseen with reasonable certainty. Turnover for such contracts is stated at the cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous years. Provision is made for any losses as soon as they are foreseen. |
Contract work in progress is stated at costs incurred, less those transferred to the profit and loss, after deducting foreseeable losses and payments on account not matched to turnover. |
Construction contract debtors |
Construction contract debtors represent the gross unbilled amount for contract work performed to date. They are measured at cost plus profit recognised to date less a provision for foreseeable losses and less progress billings. Variations are included in contract revenue when they are reliably measurable and it is probable that the customer will approve the variation itself and the revenue arising from the variation. Claims are included in contract revenue only when they are reliably measurable and negotiations have reached an advanced stage such that it is probable that the customer will accept the claim. Cost includes all expenditure related directly to specific projects and an allocation of fixed and variable overheads incurred in the entity's contract activities based on normal operating capacity. |
Construction contract debtors are presented as part of debtors in the balance sheet. If payments received from customers exceed the income recognised, then the difference is presented as accruals and deferred income in the balance sheet. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. |
Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate items of tangible fixed assets, for example land is treated separately from buildings. |
The Company assesses at each reporting date whether tangible fixed assets are impaired. |
Depreciation is charged to the profit and loss account on a straight-line basis over the estimated useful lives of each part of an item of tangible fixed assets. Leased assets are depreciated over the shorter of the lease term and their useful lives. Land is not depreciated. The estimated useful lives are as follows: |
Land and buildings | - 10 years |
Plant and machinery | - 3 to 10 years |
Fixtures, fittings, tools and equipment | - 4 to 5 years |
Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since the last annual reporting date in the pattern by which the Company expects to consume an asset's future economic benefits. |
Soil Engineering Geoservices Limited (Registered number: 02727976) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. |
Impairment excluding stocks and deferred tax assets |
Financial assets (including trade and other debtors) |
A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. |
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. For financial instruments measured at cost less impairment an impairment is calculated as the difference between its carrying amount and the best estimate of the amount that the Company would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount. Impairment losses are recognised in profit or loss. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. |
Financial instruments |
Trade and other debtors / creditors |
Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash balances and call deposits. |
Taxation |
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income. |
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Transactions in foreign currencies are translated to the Company's functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at the dates the fair value was determined. Foreign exchange differences arising on translation are recognised in the profit and loss account. |
Soil Engineering Geoservices Limited (Registered number: 02727976) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Employee benefits |
A defined contribution plan is a post-employment benefit plan under which the Company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees. |
Provisions |
A provision is recognised in the balance sheet when the entity has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date. |
Expenses |
Operating lease |
Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit and loss account on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation; in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in profit and loss over the term of the lease as an integral part of the total lease expense. |
Interest receivable and Interest payable |
Interest payable and similar charges include interest payable, finance charges on shares classified as liabilities and finance leases recognised in profit or loss using the effective interest method, unwinding of the discount on provisions, and net foreign exchange losses that are recognised in the profit and loss account (see foreign currency accounting policy). |
Other interest receivable and similar income include interest receivable on funds invested and net foreign exchange gains. |
Interest income and interest payable are recognised in profit or loss as they accrue, using the effective interest method. Dividend income is recognised in the profit and loss account on the date the entity's right to receive payments is established. Foreign currency gains and losses are reported on a net basis. |
3. | TURNOVER |
The company has only one class of business and operates solely in the UK. |
Soil Engineering Geoservices Limited (Registered number: 02727976) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | EMPLOYEES AND DIRECTORS |
The average number of persons employed by the Company (including directors) during the year, analysed by category, was as follows: |
Number of employees |
2023 | 2022 |
Administration / management | 106 | 106 |
Site personnel | 69 | 65 |
175 | 171 |
The aggregate payroll costs of these persons were as follows: |
2023 | 2022 |
£'000 | £'000 |
Wages and salaries | 7,149 | 6,778 |
Social security costs | 825 | 745 |
Other pension costs | 284 | 259 |
8,258 | 7,782 |
5. | DIRECTORS' EMOLUMENTS |
2023 | 2022 |
£'000 | £'000 |
Directors remuneration | 148 | 119 |
Company contribution to money purchase pension | 7 | 6 |
155 | 125 |
2023 | 2022 |
Number of directors |
Number of directors |
Retirement benefits are accruing to the following number of directors under:Money purchase schemes |
1 |
1 |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£'000 | £'000 |
Other operating leases |
Depreciation - owned assets |
Auditors' remuneration |
Soil Engineering Geoservices Limited (Registered number: 02727976) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£'000 | £'000 |
Bank loan interest |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£'000 | £'000 |
Current tax: |
UK corporation tax | ( |
) |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£'000 | £'000 |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
surrendered |
Total tax charge | 96 | 455 |
9. | DIVIDENDS |
2023 | 2022 |
£'000 | £'000 |
Final |
Soil Engineering Geoservices Limited (Registered number: 02727976) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | TANGIBLE FIXED ASSETS |
Freehold | Plant and | Computer |
property | machinery | equipment | Totals |
£'000 | £'000 | £'000 | £'000 |
COST |
At 1 January 2023 |
Additions |
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 the above value of freehold land and buildings at 31 December 2023 is £nil (2022: £nil) relating to freehold land which has not been depreciated. |
11. | STOCKS |
2023 | 2022 |
£'000 | £'000 |
Stocks |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£'000 | £'000 |
Trade debtors |
Tax |
Prepayments |
Trade debtors include retentions of £63k (2022: £172k) relating to construction contracts in progress. |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£'000 | £'000 |
Bank loans and overdrafts (see note 14) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 323 | 660 |
Accrued expenses |
Soil Engineering Geoservices Limited (Registered number: 02727976) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£'000 | £'000 |
Amounts falling due within one year or on demand: |
Bank overdrafts |
15. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£'000 | £'000 |
Deferred tax | 375 | 242 |
Deferred |
tax |
£'000 |
Balance at 1 January 2023 |
Provided during year |
Balance at 31 December 2023 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £'000 | £'000 |
Ordinary | £1 | 1,200 | 1,200 |
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. |
17. | RESERVES |
Retained |
earnings |
£'000 |
At 1 January 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2023 |
18. | PENSION COMMITMENTS |
The Company operates a defined contribution pension plan and makes contributions to a group defined benefits scheme on the basis set out in the accounting policy notes. |
The total pension expense relating to these plans in the current year was £284k (2022: £259k). |
Soil Engineering Geoservices Limited (Registered number: 02727976) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
19. | ULTIMATE PARENT COMPANY |
The Company is a subsidiary undertaking of Soletanche Freyssinet S.A. The ultimate parent company at the balance sheet date is Vinci S.A, incorporated in France. |
The largest group in which the results of the Company are consolidated is that headed by Vinci S.A., incorporated in France. The smallest group in which they are consolidated is that headed by Soletanche Freyssinet S.A, incorporated in France. The consolidated financial statements, of these groups are available to the public and may be obtained from Soletanche Freyssinet S.A., Rueil Malmaison Cedex, France. |
20. | CAPITAL COMMITMENTS |
2023 | 2022 |
£'000 | £'000 |
Contracted but not provided for in the |
financial statements |
21. | COMMITMENTS |
Non-cancellable operating lease rentals are payable as follows: |
2023 | 2023 | 2022 | 2022 |
Land & Buildings | Other | Land & Buildings | Other |
£'000 | £'000 | £'000 | £'000 |
Less than one year | 49 | 110 | 55 | 85 |
Between one and five years | 73 | 153 | 121 | 113 |
More than five years | - | - | - | - |
121 | 263 | 176 | 197 |
During the year £217k was recognised as an expense in the profit and loss account in respect of operating leases (2022: £325k). |