Company registration number 03347263 (England and Wales)
R S RESPONSE LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
R S RESPONSE LTD
COMPANY INFORMATION
Directors
S J Birt
R J Birt
Secretary
Mrs Kate Lloyd-Birt
Company number
03347263
Registered office
Lumen House
Rockingham Drive
Linford Wood
Milton Keynes
MK14 6LY
Auditor
TC Group
1 Rushmills
Bedford Road
Northampton
NN4 7YB
R S RESPONSE LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 23
R S RESPONSE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Fair Review of Business

The company is a trading company and the principal activity continues to be the transaction of internal construction business, including design and build and maintenance, and it operates primarily within the United Kingdom. The business conducted is mainly electrical, lighting, HVAC, plumbing, fire, security, networks, internal constructions and development of energy management systems.

 

Results and Performance

The results of the company for the year has been set out in the following pages of this Financial Report. For the year ended 31 December 2023, the company has achieved a gross profit of £7,152,720 (2022: £7,116,206) and made a profit before tax of £319,123 (2022 - loss: £222,619), and the shareholder funds of the company totals £3,648,594 (2022: £4,102,583). The directors were pleased that despite a drop in turnover gross margin improved to 28.9% (2022: 26.1%). The company was able to streamline overheads, particularly staff costs, whilst retaining key staff members. 2023 was a year of consolidation following the loss in 2022 and the company is in strong position moving forward.

 

The company continued its excellent health and safety record with no significant incidents in 2023.

 

The company strives to be innovative in its design and installation projects for example by seeking energy efficient solutions. Technologies in these areas are constantly evolving and whilst delivering projects the company undertakes research and development to ensure they are offering market leading solutions. This research and development has previously led to successful claims being made under the Research and Development Tax Relief scheme and the company will make further claims in the future as and when qualifying expenditure is incurred.

 

Strategy

The company's success is dependent on the proper selection, pricing and ongoing management of the work it accepts. The business will continue to expand the products and services offered so as to provide a holistic and thorough service to clients. It is the company's belief that this will also help with client retention which contributes to business growth. The company constantly monitors its internal processes as it aims to improve efficiency in all areas of operations whilst providing quality customer service and products. In 2023 and 2024 the company is seeking to further improve its safety procedures and is the process of attaining Health & Safety Gold Standard.

Principal Risks and Uncertainties

As a response to the risk inherent in the construction industry, the company is focussed on providing and upholding exemplary Health & Safety standards. The process of risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls. All policies are subjected to the directors' approvals and ongoing review by internal management. Compliance with regulation, legal and ethical standards is a high priority for the company.

 

Future Development

The company continues to expand its range of services and its customer base and can expect satisfactory growth in both areas.

 

On behalf of the board

S J Birt
Director
2 October 2024
R S RESPONSE LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Principal activities

The principal activity of the company continued to be that of the transaction of internal construction business.

 

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £700,000. The directors do not recommend payment of a final dividend.

Directors

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

S J Birt
R J Birt
Financial instruments

The company operates a treasury function which is responsible for managing the liquidity and interest risks associated with the company’s activities.

 

The company’s principal financial instruments include derivative financial instruments, the purpose of which is to manage liquidity and interest rate risks arising from the company’s activities. In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations.

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Research and development

The company undertakes research and development activities when providing services to its clients. The total amount of the expenditure incurred by the company such activities is not readily identifiable, as the costs are typically included in the relevant project.

Auditor

TC Group were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

R S RESPONSE LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
S J Birt
Director
2 October 2024
R S RESPONSE LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR 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.

R S RESPONSE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF R S RESPONSE LTD
- 5 -
Opinion

We have audited the financial statements of R S Response Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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.

 

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 our audit:

R S RESPONSE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R S RESPONSE LTD
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

 

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:

 

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant so specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK.

 

• We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance.

 

• We assess the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets.

 

• Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above.

 

• We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

R S RESPONSE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R S RESPONSE LTD
- 7 -

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.

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.

Richard Buckby FCA
Senior Statutory Auditor
For and on behalf of TC Group
3 October 2024
Chartered Accountants
Statutory Auditor
1 Rushmills
Bedford Road
Northampton
NN4 7YB
R S RESPONSE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
24,781,757
27,836,201
Cost of sales
(17,629,037)
(20,719,995)
Gross profit
7,152,720
7,116,206
Administrative expenses
(6,896,350)
(7,376,784)
Other operating income
62,753
38,000
Operating profit/(loss)
4
319,123
(222,578)
Interest payable and similar expenses
7
(10,529)
(41)
Profit/(loss) before taxation
308,594
(222,619)
Tax on profit/(loss)
8
(62,583)
(13,774)
Profit/(loss) for the financial year
246,011
(236,393)

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

R S RESPONSE LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
179,233
214,620
Current assets
Debtors
11
5,568,682
7,818,749
Cash at bank and in hand
861,968
808,275
6,430,650
8,627,024
Creditors: amounts falling due within one year
12
(2,916,481)
(4,700,383)
Net current assets
3,514,169
3,926,641
Total assets less current liabilities
3,693,402
4,141,261
Provisions for liabilities
Deferred tax liability
13
44,808
38,678
(44,808)
(38,678)
Net assets
3,648,594
4,102,583
Capital and reserves
Called up share capital
15
100
100
Profit and loss reserves
3,648,494
4,102,483
Total equity
3,648,594
4,102,583

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 2 October 2024 and are signed on its behalf by:
S J Birt
Director
Company registration number 03347263 (England and Wales)
R S RESPONSE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
7,038,876
7,038,976
Year ended 31 December 2022:
Loss and total comprehensive income
-
(236,393)
(236,393)
Dividends
9
-
(2,700,000)
(2,700,000)
Balance at 31 December 2022
100
4,102,483
4,102,583
Year ended 31 December 2023:
Profit and total comprehensive income
-
246,011
246,011
Dividends
9
-
(700,000)
(700,000)
Balance at 31 December 2023
100
3,648,494
3,648,594
R S RESPONSE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

R S Response Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Lumen House, Rockingham Drive, Linford Wood, Milton Keynes, MK14 6LY, company registration number 03347263.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

 

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for construction services and associated goods provided in the normal course of business, and is shown net of VAT.

 

The method of revenue recognition for construction contracts is detailed in 1.7.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
straight line over the life of the lease
Plant and machinery
25% reducing balance
Fixtures, fittings & equipment
25% reducing balance
Computer equipment
straight line over three years
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

R S RESPONSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use.

 

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset 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 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 in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

 

1.8
Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

R S RESPONSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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.

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.

R S RESPONSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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.

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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.10
Taxation

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

Current tax

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

R S RESPONSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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.

 

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

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Leases

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

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

R S RESPONSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.16

Exemptions

 

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Birt Holdings Limited. These consolidated financial statements are available from its registered office, Lumen House, Rockingham Drive, Linford Wood, Milton Keynes, MK14 6LY.

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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Amounts recoverable on long term contracts

The principal activity of the company relates to long term construction contracts. These contracts are accounted for in accordance with FRS102 which requires estimates to be made for contract costs and revenues.

 

Management bases its judgements of contract costs and revenues on the latest available information. In many cases the results reflect the expected outcome of long term contractual obligations. Contract costs and revenues are affected by a variety of uncertainties that depend on the outcome of future events and often need to be revised as events unfold and uncertainties are resolved. The estimates of contract costs and revenues are updated regularly and significant changes are highlighted through established internal review procedures. The impact of any changes in accounting estimates are reflected in ongoing results.

 

3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Construction contracts
24,781,757
27,836,201
R S RESPONSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 17 -
2023
2022
£
£
Other revenue
Grants received
7,000
-
Rent
38,000
38,000
4
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
11,834
(38,338)
Government grants
(7,000)
-
Fees payable to the company's auditor for the audit of the company's financial statements
24,000
21,000
Depreciation of owned tangible fixed assets
66,935
86,148
Loss/(profit) on disposal of tangible fixed assets
12,783
(6,200)
Operating lease charges
242,000
242,067
5
Employees

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

2023
2022
Number
Number
Site based staff
34
39
Office/administrative staff
79
90
Total
113
129

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
5,859,036
6,332,108
Social security costs
624,058
711,148
Pension costs
183,724
192,429
6,666,818
7,235,685
R S RESPONSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
315,535
329,278
Company pension contributions to defined contribution schemes
20,000
20,000
335,535
349,278

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
160,329
160,062
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
-
41
Other interest
10,529
-
0
10,529
41
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
56,453
-
0
Deferred tax
Origination and reversal of timing differences
6,130
13,774
Total tax charge
62,583
13,774
R S RESPONSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 19 -

The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit/(loss) before taxation
308,594
(222,619)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
77,149
(42,298)
Tax effect of expenses that are not deductible in determining taxable profit
16,407
16,515
Deferred tax
6,130
13,774
Change in corporation tax rate
(3,551)
-
0
Losses brought forward/carried forward
(33,552)
25,783
Taxation charge for the year
62,583
13,774

There are no factors affecting the current or total tax charges in respect of future periods.

9
Dividends
2023
2022
£
£
Interim paid
700,000
2,700,000
R S RESPONSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
10
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
59,061
192,488
106,461
413,700
396,873
1,168,583
Additions
-
0
1,104
-
0
49,727
-
0
50,831
Disposals
-
0
(100,357)
(29,483)
(299,345)
(32,300)
(461,485)
At 31 December 2023
59,061
93,235
76,978
164,082
364,573
757,929
Depreciation and impairment
At 1 January 2023
59,061
146,489
93,561
381,580
273,272
953,963
Depreciation charged in the year
-
0
11,569
3,225
21,394
30,747
66,935
Eliminated in respect of disposals
-
0
(88,713)
(27,688)
(298,139)
(27,662)
(442,202)
At 31 December 2023
59,061
69,345
69,098
104,835
276,357
578,696
Carrying amount
At 31 December 2023
-
0
23,890
7,880
59,247
88,216
179,233
At 31 December 2022
-
0
45,999
12,900
32,120
123,601
214,620
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
4,210,109
6,088,582
Gross amounts owed by contract customers
1,012,306
1,370,275
Other debtors
24,401
11,136
Prepayments and accrued income
163,365
189,167
5,410,181
7,659,160
2023
2022
Amounts falling due after more than one year:
£
£
Trade debtors
158,501
159,589
Total debtors
5,568,682
7,818,749
R S RESPONSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
12
Creditors: amounts falling due within one year
2023
2022
£
£
Payments received on account
7,329
1,010,344
Trade creditors
1,075,489
1,965,318
Amounts owed to group undertakings
978,215
769,891
Corporation tax
56,453
-
0
Other taxation and social security
428,575
362,048
Other creditors
39,799
32,711
Accruals and deferred income
330,621
560,071
2,916,481
4,700,383
13
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
44,808
38,678
2023
Movements in the year:
£
Liability at 1 January 2023
38,678
Charge to profit or loss
6,130
Liability at 31 December 2023
44,808

Of the deferred tax liability set out above, £12,437 is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
183,724
192,429

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.

At the balance sheet date the amount of contributions outstanding totalled £39,799 (2022 - £28,954)

R S RESPONSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
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
2022
£
£
Within one year
50,000
50,000
Between two and five years
200,000
200,000
In over five years
37,500
87,500
287,500
337,500
R S RESPONSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
17
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sale of construction services
2023
2022
£
£
Other group companies
1,048,059
2,299,223
Rent paid and other services
2023
2022
£
£
Other related parties
242,000
242,000

Other related parties refers to a pension fund for the benefit of the directors and their families and a company, RSR Commercial Limited, a company controlled by the directors.

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts owed to related parties
£
£
Other group companies
978,215
903,347

Guarantees

 

The company had given guarantees to GBF Capital Limited in respect of loans made to the directors, Richard Birt and Stephen Birt, which were secured by a fixed charge over the company's interest in, and income from, Dean Close LLP. The maximum liability under the guarantee is £220,000. The charge was satisfied on 26 March 2024.

18
Ultimate parent company

The immediate parent company is Birt Holdings Limited, who prepares group financial statements and copies can be obtained from Lumen House, Rockingham Drive, Linford Wood, Milton Keynes, MK14 6LY.

 

The R S Response Employee Ownership Trust is the ultimate controlling party on the basis that it holds 60% of the issued share capital of Birt Holdings Limited. The trust holds the controlling stake in the company for the benefit of the employees.

 

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