Company registration number 14348288 (England and Wales)
TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
COMPANY INFORMATION
Directors
K Walls
(Appointed 1 May 2023)
T Stewart
(Appointed 1 May 2023)
G J Book
(Appointed 1 May 2023)
A Do Nascimento-Hudson
(Appointed 1 May 2023)
Secretary
A Do Nascimento-Hudson
Company number
14348288
Registered office
Friars Gate (Third Floor)
1011 Stratford Road
Shirley
Solihull
B90 4BN
Auditor
Azets Audit Services
St Davids Court
Union Street
Wolverhampton
West Midlands
United Kingdom
WV1 3JE
TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 25
TUV RHEINLAND INDUSTRIAL 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.

Review of the business

 

The company began financial trading on 1st May 2023, hence this report covers the period from 1st May 2023 to 31st December 2023, prior to this period the company traded as part of ABB Limited and was divested from ABB to TUV Rheinland UK on 1st May 2023.

 

The company continues to provide a broad range of engineering and consultancy services, including Process Safety, Integrity Management, Inspection, Projects and Engineering, software and training. Each of these services has a business plan detailing growth opportunities, new servcies and strategic drivers.

 

The company has retained its client base in a range of energy, chemicals and industrial markets with a high proportion of repeat business.

 

The company has been successful in retaining its experienced personal and has recruited new staff at all experience levels during the period.

 

Results

 

The turnover for the period was £12,073,887 (prior period £4,626,431) and the profit before taxation for this period was £669,902 (prior period £23,656).

Principal risks and uncertainties

 

The principal risks to the business is loss of personnel and a reduction in demand for the servcies offered by the company.

 

The company has an excellent personnel retention rate, achieved by career deveopment, training and a good working environment. The servcies are continually reviewed and refreshed to ensure attractive market leading offerings.

 

Financial risk management objectives and policies

 

The company's principle financial instruments comprise of intra-group loans and cash to finance the company operations; along with trade and other receivables and trade creditors which arise directly fromm its operations. The main risks arising are interest rate risk, liquidity risk, foreign currency risk and credit risk. The board reviews and agrees policies for managing each of these risks.

 

Interest rate risk

 

The company's exposure to market risk for changes in interest rates relates primarily to the company's intercompany debt obligations. The company monitors the position closely and additional equity will be raised as required.

 

Liquidity risk

 

The company's objective is to maintain an appropriate balance between cash balances and intra group loans. The company prepares annual forecasts and reviews these on a regular basis.

 

Foreign currency risk

 

The company does not seek to hedge the exposure to this risk, although does monitor the situation regularly to minimise any risk.

 

Credit risk

 

The company trades with only recognised and credit worthy third parites. It is company policy that all customers who wish to trade on credit terms are subject to certain credit vetting procedures.

TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -

On behalf of the board

G J Book
Director
25 September 2024
TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the Period ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of product assurance certification.

Results and dividends

The results for the Period are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the Period and up to the date of signature of the financial statements were as follows:

C Prendergast
(Resigned 1 May 2023)
M Moussa
(Resigned 1 May 2023)
V Maclean
(Resigned 1 May 2023)
K Walls
(Appointed 1 May 2023)
T Stewart
(Appointed 1 May 2023)
G J Book
(Appointed 1 May 2023)
A Do Nascimento-Hudson
(Appointed 1 May 2023)
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.

On behalf of the board
G J Book
Director
25 September 2024
TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 4 -

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:

 

 

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.

TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
- 5 -

Qualified Opinion

We have audited the financial statements of TUV Rheinland Industrial Services Limited (the 'company') for the Period ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

Basis for qualified opinion

We were not appointed as auditors of the company until after 30 April 2023 and thus did not have access to the physical accounting records at the beginning through to the end of the comparative period. Furthermore, no accounting records were available in the prior period, due to the previous owners arrangements with a third party finance function provider. We were unable to satisfy ourselves by alternative means concerning the accounting records and corresponding supporting documentation for the period ending 30 April 2023. Consequently, we are unable to determine whether any adjustment to the comparative period are necessary.

 

In addition, were any adjustment to the comparative period to be required, the strategic report and directors’ report would also need to be amended.

 

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 qualified 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.

TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
- 6 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the comparative period. We have concluded that where the other information refers to the comparative period, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, 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 directors' report.

        

Arising solely from the limitation on the scope of our work relating to the comparative period above:

        

• we have not obtained all the information and explanations that we considered necessary for the purpose of

our audit; and

• we were unable to determine whether adequate accounting records had been maintained.

        

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:

• 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.

 

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.

TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
- 7 -
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.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
- 8 -

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 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.

Lee Meredith BFP ACA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
25 September 2024
Chartered Accountants
Statutory Auditor
St Davids Court
Union Street
Wolverhampton
West Midlands
United Kingdom
WV1 3JE
TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 9 -
Period
Period
ended
ended
31 December
30 April
2023
2023
as restated
Notes
£
£
Turnover
3
12,073,887
4,626,431
Cost of sales
(2,011,199)
(3,772,067)
Gross profit
10,062,688
854,364
Administrative expenses
(9,392,786)
(830,708)
Profit before taxation
669,902
23,656
Tax on profit
7
(57,107)
53,480
Profit for the financial Period
612,795
77,136

The profit and loss account has been prepared on the basis that all operations are continuing operations.

TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 10 -
Period
Period
ended
ended
31 December
30 April
2023
2023
as restated
£
£
Profit for the Period
612,795
77,136
Other comprehensive income
-
-
Total comprehensive income for the Period
612,795
77,136
TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
31 December 2023
30 April 2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
8
1,729
-
0
Tangible assets
9
251,604
266,177
253,333
266,177
Current assets
Debtors
10
8,131,182
3,780,712
Cash at bank and in hand
824,541
3,677,770
8,955,723
7,458,482
Creditors: amounts falling due within one year
11
(3,854,970)
(2,983,368)
Net current assets
5,100,753
4,475,114
Net assets
5,354,086
4,741,291
Capital and reserves
Called up share capital
15
4,664,155
4,664,155
Profit and loss reserves
689,931
77,136
Total equity
5,354,086
4,741,291
The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
G J Book
Director
Company Registration No. 14348288
TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 30 April 2023:
Balance at 9 September 2022
-
0
-
0
-
Period ended 30 April 2023:
Profit and total comprehensive income for the period
-
77,136
77,136
Issue of share capital
15
4,664,155
-
4,664,155
Balance at 30 April 2023
4,664,155
77,136
4,741,291
Period ended 31 December 2023:
Profit and total comprehensive income for the period
-
612,795
612,795
Balance at 31 December 2023
4,664,155
689,931
5,354,086
TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 13 -
2023
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
19
(2,838,440)
(682,584)
Income taxes paid
-
0
(5,393)
Net cash outflow from operating activities
(2,838,440)
(687,977)
Investing activities
Purchase of intangible assets
(1,831)
-
0
Purchase of tangible fixed assets
(12,958)
(298,408)
Net cash used in investing activities
(14,789)
(298,408)
Financing activities
Proceeds from issue of shares
-
0
4,664,155
Net cash (used in)/generated from financing activities
-
4,664,155
Net (decrease)/increase in cash and cash equivalents
(2,853,229)
3,677,770
Cash and cash equivalents at beginning of Period
3,677,770
-
0
Cash and cash equivalents at end of Period
824,541
3,677,770
TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

TUV Rheinland Industrial Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Friars Gate (Third Floor), 1011 Stratford Road, Shirley, Solihull, B90 4BN.

1.1
Reporting period

The reporting period has been shortened to 7 months in order to align the year end with parent company, therefore the figures are not entirely comparable to the prior year. The comparative period is from 9 September 2022 to 30 April 2023.

1.2
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.The principal accounting policies adopted are set out below.

1.3
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.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
Straight Line over 3 years
TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.6
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:

Freehold land and buildings
Straight line basis over 20 years
Plant and equipment
Reducing balance basis over 5 to 15 years

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.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

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.

1.8
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.

1.9
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.

TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

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

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
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.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.12
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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
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.

Critical judgements
Accrued Income

Amounts are recognised as accrued income where work has been performed as part of a service agreement that has not yet been billed, which is calculated using the terms of customer contracts.

3
Turnover

An analysis of the company's turnover is as follows:

2023
2023
£
£
Turnover analysed by class of business
Technical engineering and consultancy services
12,073,887
4,626,431
TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
3
Turnover
(Continued)
- 19 -
2023
2023
£
£
Turnover analysed by geographical market
United Kingdom
10,674,367
4,017,157
Europe
790,670
351,886
Rest of World
608,850
257,388
12,073,887
4,626,431
4
Operating profit
2023
2023
Operating profit for the period is stated after charging:
£
£
Exchange (gains)/losses
-
0
299
Fees payable to the company's auditor for the audit of the company's financial statements
26,000
-
0
Depreciation of owned tangible fixed assets
27,531
32,231
Amortisation of intangible assets
102
-
Operating lease charges
408,638
21,322
5
Employees

The average monthly number of persons (including directors) employed by the company during the Period was:

2023
2023
Number
Number
117
117

Their aggregate remuneration comprised:

2023
2023
£
£
Wages and salaries
4,381,431
539,568
Social security costs
483,852
47,595
Pension costs
970,100
95,744
5,835,383
682,907
TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 20 -
6
Directors' remuneration
2023
2023
£
£
Remuneration for qualifying services
163,629
-
0
Company pension contributions to defined contribution schemes
41,680
-
205,309
-
0

No remuneration was paid to the directors in the comparative period.

7
Taxation
2023
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
5,393
Deferred tax
Origination and reversal of timing differences
57,107
(58,873)
Total tax charge/(credit)
57,107
(53,480)

The actual charge/(credit) 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
2023
£
£
Profit before taxation
669,902
23,656
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
167,476
5,914
Tax effect of expenses that are not deductible in determining taxable profit
198
-
0
Group relief
(174,362)
-
0
Permanent capital allowances in excess of depreciation
5,264
(59,394)
Under/(over) provided in prior years
58,531
-
0
Taxation charge/(credit) for the period
57,107
(53,480)
TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 21 -
8
Intangible fixed assets
Software
£
Cost
At 1 May 2023
-
0
Additions
1,831
At 31 December 2023
1,831
Amortisation and impairment
At 1 May 2023
-
0
Amortisation charged for the Period
102
At 31 December 2023
102
Carrying amount
At 31 December 2023
1,729
At 30 April 2023
-
0
9
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Total
£
£
£
Cost
At 1 May 2023
138,771
159,637
298,408
Additions
-
0
12,958
12,958
At 31 December 2023
138,771
172,595
311,366
Depreciation and impairment
At 1 May 2023
5,521
26,710
32,231
Depreciation charged in the Period
11,043
16,488
27,531
At 31 December 2023
16,564
43,198
59,762
Carrying amount
At 31 December 2023
122,207
129,397
251,604
At 30 April 2023
133,250
132,927
266,177
TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 22 -
10
Debtors
2023
2023
Amounts falling due within one year:
£
£
Trade debtors
6,580,987
1,429,604
Amounts owed by group undertakings
210,022
-
0
Other debtors
129,014
981,013
Prepayments and accrued income
1,209,393
1,311,222
8,129,416
3,721,839
2023
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 12)
1,766
58,873
Total debtors
8,131,182
3,780,712
11
Creditors: amounts falling due within one year
2023
2023
Notes
£
£
Trade creditors
1,476,735
11,766
Amounts owed to group undertakings
28,008
-
0
Taxation and social security
732,941
726,692
Deferred income
13
489,824
708,262
Other creditors
102,355
278,059
Accruals and deferred income
1,025,107
1,258,589
3,854,970
2,983,368
12
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2023
2023
Balances:
£
£
Accelerated capital allowances
(2,748)
58,873
Provisions
4,514
-
1,766
58,873
TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
12
Deferred taxation
(Continued)
- 23 -
2023
Movements in the Period:
£
Asset at 1 May 2023
(58,873)
Charge to profit or loss
57,107
Asset at 31 December 2023
(1,766)

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

13
Deferred income
2023
2023
£
£
Other deferred income
489,824
708,262
14
Retirement benefit schemes
2023
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
970,100
95,744

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
2023
2023
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of of £1 each
2,000,001
2,000,001
2,000,001
2,000,001
Other Ordinary shares of of £1 each
2,000,002
2,000,002
2,664,154
2,664,154
4,000,003
4,000,003
4,664,155
4,664,155
TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 24 -
16
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
2023
£
£
Within one year
42,263
6,862
Between two and five years
101,117
18,870
143,380
25,732
17
Ultimate controlling party

The immediate parent company is TUV Rheinland UK Limited, a company incorporated in the United Kingdom.

 

The company which heads up the smallest and largest group of undertakings for which group financial statements are drawn up is TUV Rheinland AG, a company incorporated in Germany.

 

The ultimate parent undertaking and ultimate controlling party is TUV Rheinland Berlin Brandenburg Pfalz e.V, an unincorporated body.

 

The financial statements of TUV Rheinland AG, the operational holding comapny, can be obtained from TUV International GmbH, AM Grauen Stein, D-51105. Cologne, Germany.

18
Prior period adjustment

The prior period adjustments relates to a re-statement of share capital from share premium, re-statement of accrued income from work in progress and the re-statement trade creditors from the bank, which had been incorrectly classified in the prior period.

Changes to the balance sheet
As previously reported
Adjustment
As restated at 30 Apr 2023
£
£
£
Current assets
Stocks
1,264,001
(1,264,001)
-
Debtors due within one year
2,516,711
1,264,001
3,780,712
Creditors due within one year
Loans and overdrafts
550,800
(550,800)
-
0
Other creditors
(2,099,214)
550,800
(1,548,414)
Net assets
4,741,291
-
4,741,291
Capital and reserves
Share capital
4,000,003
664,152
4,664,155
Share premium
664,152
(664,152)
-
0
Total equity
4,741,291
-
4,741,291
TUV RHEINLAND INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
18
Prior period adjustment
(Continued)
- 25 -
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
Analysis of the effect upon equity
Share capital
-
664,152
Share premium
-
(664,152)
-
-
19
Cash absorbed by operations
2023
2023
£
£
Profit for the Period after tax
612,795
77,136
Adjustments for:
Taxation charged/(credited)
57,107
(53,480)
Amortisation and impairment of intangible assets
102
-
0
Depreciation and impairment of tangible fixed assets
27,531
32,231
Movements in working capital:
Increase in debtors
(4,407,577)
(3,721,839)
Increase in creditors
1,090,040
2,275,106
(Decrease)/increase in deferred income
(218,438)
708,262
Cash absorbed by operations
(2,838,440)
(682,584)
20
Analysis of changes in net funds
1 May 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
3,677,770
(2,853,229)
824,541
2023-12-312023-05-01falseCCH SoftwareCCH Accounts Production 2024.210C PrendergastM MoussaV MacleanK WallsT StewartG J BookA Do Nascimento-HudsonA Do Nascimento-HudsonA Do Nascimento-Hudsonfalsefalse143482882023-05-012023-12-3114348288bus:Director42023-05-012023-12-3114348288bus:Director52023-05-012023-12-3114348288bus:Director62023-05-012023-12-3114348288bus:Director72023-05-012023-12-3114348288bus:CompanySecretary12023-05-012023-12-3114348288bus:Director12023-05-012023-12-3114348288bus:Director22023-05-012023-12-3114348288bus:Director32023-05-012023-12-3114348288bus:Director82023-05-012023-12-3114348288bus:RegisteredOffice2023-05-012023-12-31143482882023-12-31143482882022-09-092023-04-3014348288core:RetainedEarningsAccumulatedLosses2022-09-092023-04-3014348288core:RetainedEarningsAccumulatedLosses2023-05-012023-12-3114348288core:OtherResidualIntangibleAssets2023-12-3114348288core:OtherResidualIntangibleAssets2023-04-3014348288core:ComputerSoftware2023-12-3114348288core:ComputerSoftware2023-04-30143482882023-04-3014348288core:LandBuildingscore:OwnedOrFreeholdAssets2023-12-3114348288core:PlantMachinery2023-12-3114348288core:LandBuildingscore:OwnedOrFreeholdAssets2023-04-3014348288core:PlantMachinery2023-04-3014348288core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3114348288core:CurrentFinancialInstrumentscore:WithinOneYear2023-04-3014348288core:CurrentFinancialInstruments2023-12-3114348288core:CurrentFinancialInstruments2023-04-3014348288core:ShareCapital2023-12-3114348288core:ShareCapital2023-04-3014348288core:RetainedEarningsAccumulatedLosses2023-12-3114348288core:RetainedEarningsAccumulatedLosses2023-04-3014348288core:ShareCapital2022-09-0814348288core:RetainedEarningsAccumulatedLosses2022-09-0814348288core:ShareCapitalOrdinaryShares2023-12-3114348288core:ShareCapitalOrdinaryShares2023-04-3014348288core:SharePremium2023-04-3014348288core:ShareCapital2022-09-092023-04-30143482882023-04-30143482882022-09-0814348288core:IntangibleAssetsOtherThanGoodwill2023-05-012023-12-3114348288core:ComputerSoftware2023-05-012023-12-3114348288core:LandBuildingscore:OwnedOrFreeholdAssets2023-05-012023-12-3114348288core:PlantMachinery2023-05-012023-12-3114348288core:UKTax2023-05-012023-12-3114348288core:UKTax2022-09-092023-04-301434828812023-05-012023-12-311434828812022-09-092023-04-3014348288core:ComputerSoftware2023-04-3014348288core:ComputerSoftwarecore:ExternallyAcquiredIntangibleAssets2023-05-012023-12-3114348288core:LandBuildingscore:OwnedOrFreeholdAssets2023-04-3014348288core:PlantMachinery2023-04-3014348288core:Non-currentFinancialInstruments2023-12-3114348288core:Non-currentFinancialInstruments2023-04-3014348288core:WithinOneYear2023-12-3114348288core:WithinOneYear2023-04-3014348288core:BetweenTwoFiveYears2023-12-3114348288core:BetweenTwoFiveYears2023-04-3014348288bus:PrivateLimitedCompanyLtd2023-05-012023-12-3114348288bus:FRS1022023-05-012023-12-3114348288bus:Audited2023-05-012023-12-3114348288bus:FullAccounts2023-05-012023-12-31xbrli:purexbrli:sharesiso4217:GBP