Company Registration No. SC182224 (Scotland)
TECHNICAL RETAIL SERVICES LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
TECHNICAL RETAIL SERVICES LTD
COMPANY INFORMATION
Directors
Mr B McIntosh
Mr S Lees
Mr R Yule
Company number
SC182224
Registered office
26 - 28 Napier Court
Cumbernauld
G68 0LG
Auditor
Johnston Carmichael LLP
227 West George Street
Glasgow
G2 2ND
TECHNICAL RETAIL SERVICES LTD
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 22
TECHNICAL RETAIL SERVICES LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Fair review of the business and future developments

The principal activity of the company is the delivery of refrigeration, mechanical and electrical solutions to businesses throughout the UK.

 

The year to 31 March 2024 has seen an increase in profit from prior year. This decrease in prior year was primarily due to a number of external factors, i.e. cost of living crisis, war on Ukraine etc, these factors, amongst others, caused great uncertainty in the economic environment that caused or clients to withdraw on spending until markets settled, however this has recovered in the current year brining the company back to more normalised profits. The working capital of the company has stayed fairly steady throughout the year.

 

The company will continue to deliver refrigeration, mechanical and electrical solutions in the next year, with directors anticipating the business environment to remain competitive.

Principal risks and uncertainties

Business risks
The company is currently a preferred contractor for a number of large customers from which the vast majority of income is generated. Given the competitive nature of the trade, the company is currently exploring a number of diversification options as well as consistently bidding for new opportunities. Within the following year we have won a contract of service increasing the works within Aldi and we still remain a preferred refrigeration contractor with our key clients.

 

The reduction in sales is primarily due to the retail climate, with high inflation levels driving uncertainty and reduced customer spend.

 

Purchasing risk
Purchasing risks include delivery, quality and price risk related to vital supplies. The company manages these risks through careful selection and negotiations of order quantities and prices.

 

Credit risk
The company's credit risk is primarily attributable to its trade debtors. Credit risk is managed by monitoring the aggregate amount and duration of exposure to any one customer depending on credit rating.

Key performance indicators

 

2024

2023

 

 

 

Turnover (£’s)

11,736,907

10,081,043

Operating profit/(loss) (£’s)

953,417

(246,629)

Profit/(loss) after tax (£’s)

554,259

(187,593)

Equity shareholders’ funds (£’s)

3,935,982

3,381,723

 

 

 

Average number of employees

63

67

On behalf of the board

Mr S Lees
Director
7 October 2024
TECHNICAL RETAIL SERVICES LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of the delivery of refrigeration, electrical and mechanical solutions to businesses.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid (2023: £156,994). 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:

Mr B McIntosh
Mr S Lees
Mr R Yule
Matters addressed in the strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and financial risk management objectives and policies (where applicable).

Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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
Mr S Lees
Mr R Yule
Director
Director
7 October 2024
TECHNICAL RETAIL SERVICES LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors are responsible for preparing the strategic report, directors' 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 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.

TECHNICAL RETAIL SERVICES LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TECHNICAL RETAIL SERVICES LTD
- 4 -
Opinion

We have audited the financial statements of Technical Retail Services Ltd (the 'company') for the year ended 31 March 2024 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 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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:

 

TECHNICAL RETAIL SERVICES LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TECHNICAL RETAIL SERVICES LTD
- 5 -
Matters on which we are required to report by exception

In the light of our 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 and 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 set out on page 3, 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 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 for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent 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, 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 assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and the sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

TECHNICAL RETAIL SERVICES LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TECHNICAL RETAIL SERVICES LTD
- 6 -

Extent the audit was considered capable of detecting irregularities, including fraud (continued)

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of relevant correspondence with regulatory bodies.

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. We identified a heightened fraud risk in relation to:

 

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

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.

Ryan Crilley (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
8 October 2024
Chartered Accountants
Statutory Auditor
227 West George Street
Glasgow
G2 2ND
TECHNICAL RETAIL SERVICES LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
11,736,907
10,081,043
Cost of sales
(8,800,394)
(8,469,483)
Gross profit
2,936,513
1,611,560
Administrative expenses
(2,062,927)
(1,905,212)
Other operating income
79,831
47,023
Operating profit/(loss)
4
953,417
(246,629)
Interest receivable and similar income
7
29,179
10,461
Interest payable and similar expenses
8
(489)
(17,006)
Decrease in fair value of investment property
12
(230,000)
-
Profit/(loss) before taxation
752,107
(253,174)
Tax on profit/(loss)
9
(197,848)
65,581
Profit/(loss) for the financial year
554,259
(187,593)
Other comprehensive income
Revaluation of tangible fixed assets
-
0
296,570
Tax relating to other comprehensive income
-
0
(51,501)
Total comprehensive (expenditure) / income for the year
554,259
57,476

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

TECHNICAL RETAIL SERVICES LTD
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
262,148
1,601
Investment properties
12
740,000
970,000
Investments
13
1
1
1,002,149
971,602
Current assets
Stocks
14
39,254
14,307
Debtors
15
2,024,268
1,332,451
Cash at bank and in hand
2,134,059
1,948,121
4,197,581
3,294,879
Creditors: amounts falling due within one year
16
(1,263,748)
(884,758)
Net current assets
2,933,833
2,410,121
Net assets
3,935,982
3,381,723
Capital and reserves
Called up share capital
19
1,000
1,000
Revaluation reserve
20
66,570
245,069
Capital redemption reserve
20
5,800
5,800
Profit and loss reserves
20
3,862,612
3,129,854
Total equity
3,935,982
3,381,723
The financial statements were approved by the board of directors and authorised for issue on 7 October 2024 and are signed on its behalf by:
Mr S Lees
Mr R Yule
Director
Director
Company Registration No. SC182224
TECHNICAL RETAIL SERVICES LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2022
1,000
-
0
5,800
3,474,441
3,481,241
Year ended 31 March 2023:
Loss for the year
-
-
-
(187,593)
(187,593)
Other comprehensive income:
Revaluation of tangible fixed assets
-
296,570
-
-
296,570
Tax relating to other comprehensive income
-
(51,501)
-
-
0
(51,501)
Total comprehensive income for the year
-
0
245,069
-
0
(187,593)
57,476
Dividends
10
-
-
-
(156,994)
(156,994)
Balance at 31 March 2023
1,000
245,069
5,800
3,129,854
3,381,723
Year ended 31 March 2024:
Profit and total comprehensive expense for the year
-
-
-
554,259
554,259
Transfers
-
(178,499)
-
178,499
-
Balance at 31 March 2024
1,000
66,570
5,800
3,862,612
3,935,982
TECHNICAL RETAIL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
1
Accounting policies
Company information

Technical Retail Services Ltd is a private company limited by shares incorporated in Scotland. The registered office and principal place of business is 26 - 28 Napier Court, Cumbernauld, G68 0LG.

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.

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 (where applicable):

 

 

The financial statements of the company are consolidated in the financial statements of TRS Group Holdings Limited. These consolidated financial statements are available from its registered office, 26-28 Napier Court, Cumbernauld, Glasgow, Scotland, G86 0LG.

1.2
Going concern

The directors have assessed the company’s ability to continue as a going concern by considering various factors, including but not limited to current and projected financial performance for a period of at least 12 months from approval of 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.true

1.3
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 and settlement discounts.

Revenue from contracts for the provision of professional and installation 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.

TECHNICAL RETAIL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -
1.4
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:

Buildings
2% straight line
Fixtures and fittings
25% reducing balance
Office equipment
33% 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 the statement of comprehensive income.

1.5
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in the statement of comprehensive income.

1.6
Fixed asset investments

Investments whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the statement of comprehensive income. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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 the statement of comprehensive income.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the statement of comprehensive income. Reversals of impairment losses are also recognised in the statement of comprehensive income.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

TECHNICAL RETAIL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
1.10
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 certain 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. 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. As the investment is not publicly traded, and it's fair value cannot be measured reliably, investments are measured at cost less impairment.

Impairment of financial assets

Financial assets 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 the statement of comprehensive income.

 

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 the statement of comprehensive income.

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.

TECHNICAL RETAIL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities

Basic financial liabilities, including certain creditors and bank loans, are initially recognised at transaction. 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.

Derecognition of financial liabilities

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

1.11
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.

1.12
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 statement of comprehensive income 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 statement of comprehensive income, 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.

1.13
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.

TECHNICAL RETAIL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.14
Retirement benefits

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

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to the statement of comprehensive income 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.

1.16
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 the statement of comprehensive income.

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 contracts

Judgement is required in accounting for long term contracts particularly as regards to profit recognition and the assessment of future losses on contract.

 

The carrying value at the reporting date of amounts recoverable on long term contracts was £44k (2023 - £132k), and is included within prepayments and accrued income.

Fair value of investment property

Investment property is carried at fair value which is based on an open market value. In making their open market value assessment, the directors consider secure tenancy and rental yields as well as recently completed independent valuations. This directors acknowledge that there is inherent uncertainty in this assessment.

 

The fair value of investment property is outlined at note 12.

TECHNICAL RETAIL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Installation
5,928,250
6,429,262
Services
5,808,657
3,651,781
11,736,907
10,081,043
2024
2023
£
£
Other significant revenue
Interest income
29,179
10,461
Rental income
70,087
43,500
Sundry income
9,744
3,523

All sales were made in the United Kingdom during both the current and prior year.

4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging:
£
£
Exchange differences
25
360
Fees payable to the company's auditor for the audit of the company's financial statements
21,650
18,250
Depreciation of owned tangible fixed assets
3,377
17,767
(Profit)/loss on disposal of tangible fixed assets
-
7,195
Operating lease charges
280,727
273,446
5
Employees

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

2024
2023
Number
Number
Direct employees
50
51
Administrative
13
16
Total
63
67
TECHNICAL RETAIL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,355,289
3,156,453
Social security costs
396,014
383,530
Pension costs
180,403
141,263
3,931,706
3,681,246
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
385,205
335,161
Company pension contributions to defined contribution schemes
120,000
80,000
505,205
415,161

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
194,390
168,303
Company pension contributions to defined contribution schemes
60,000
40,000

 

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
29,179
10,461
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
489
17,006
TECHNICAL RETAIL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
191,132
-
0
Adjustments in respect of prior periods
-
0
(10,031)
Total current tax
191,132
(10,031)
Deferred tax
Origination and reversal of timing differences
6,716
(55,550)
Total tax charge/(credit)
197,848
(65,581)

The actual charge/(credit) 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:

2024
2023
£
£
Profit/(loss) before taxation
752,107
(253,174)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
188,027
(48,103)
Tax effect of expenses that are not deductible in determining taxable profit
5,542
2,761
Change in unrecognised deferred tax assets
3,921
-
0
Adjustments in respect of prior years
-
0
(10,031)
Effect of change in corporation tax rate
-
0
(13,333)
Other permanent differences
-
0
124
Fixed asset differences
358
3,001
Taxation charge/(credit) for the year
197,848
(65,581)

In addition to the amount charged/(credited) to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
51,501

A change in the UK Corporation tax rate to 25% took effect from 1 April 2023.

TECHNICAL RETAIL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
10
Dividends
2024
2023
£
£
Final paid
-
0
156,994
11
Tangible fixed assets
Buildings
Fixtures and fittings
Office equipment
Total
£
£
£
£
Cost
At 1 April 2023
-
0
3,679
2,557
6,236
Additions
259,460
1,225
3,239
263,924
At 31 March 2024
259,460
4,904
5,796
270,160
Depreciation and impairment
At 1 April 2023
-
0
2,199
2,436
4,635
Depreciation charged in the year
1,297
1,277
803
3,377
At 31 March 2024
1,297
3,476
3,239
8,012
Carrying amount
At 31 March 2024
258,163
1,428
2,557
262,148
At 31 March 2023
-
0
1,480
121
1,601

 

12
Investment property
2024
£
Fair value
At 1 April 2023
970,000
Net gains or losses through fair value adjustments
(230,000)
At 31 March 2024
740,000

Investment property comprises buildings which are held for rental income purposes. The fair value of the investment property has been arrived at on the basis of an external valuation conducted by Whyte and Barrie Chartered Surveyors during 2024, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of rental levels for similar properties.

 

The carrying value on an historic cost basis of investment property is £658,316 (2023: £673,430), being cost of £755,685 (2023: £755,685) and accumulated depreciation of £97,369 (2023: £82,255).

TECHNICAL RETAIL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
13
Fixed asset investments
2024
2023
£
£
Unlisted investments
1
1
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
39,254
14,307
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,569,706
720,338
Corporation tax recoverable
9,118
-
0
Other debtors
162,781
435,310
Prepayments and accrued income
263,109
150,533
2,004,714
1,306,181
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 17)
19,554
26,270
Total debtors
2,024,268
1,332,451
16
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
661,436
496,712
Corporation tax
200,212
103
Other taxation and social security
324,709
255,630
Other creditors
1,142
29,370
Accruals and deferred income
76,249
102,943
1,263,748
884,758
TECHNICAL RETAIL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
17
Deferred taxation

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

Assets
Assets
2024
2023
Balances:
£
£
Fixed asset timing differences
16,054
20,211
Losses and other deductions
-
56,280
Capital gains
-
(51,501)
Short term timing differences
3,500
1,280
19,554
26,270
2024
Movements in the year:
£
Asset at 1 April 2023
(26,270)
Charge to profit or loss
6,716
Asset at 31 March 2024
(19,554)

At the reporting date, the company had estimated tax losses of £nil (2023: £225,118) available for offset against future trading profits.

18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
180,403
141,263

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.

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
TECHNICAL RETAIL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
20
Reserves
Revaluation reserve

The revaluation reserve records the unrealised value of asset revaluations for those assets measured at fair value.

Capital redemption reserve

The capital redemption reserve was created on the redemption of share capital.

Profit and loss reserves

The profit and loss reserve account represents the accumulated profits and losses of the company less distributions made to shareholders.

21
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:

2024
2023
£
£
Within one year
261,268
247,049
Between two and five years
425,088
95,971
686,356
343,020
Lessor

The operating leases represent the lease of a property to a third party. The lease is fixed until the review date at 20 October 2026.

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2024
2023
£
£
Within one year
87,000
43,500
Between two and five years
135,280
242,875
222,280
286,375
22
Events after the reporting date

On 7 August 2024, the Company completed the sale of its investment property for £740,000. The property was sold to a related party in an arm's length transaction, and the sale price was determined based on an independent market valuation.

 

The sale of the investment property does not have a material impact on the financial position of the Company as at 31 March 2024, but will be reflected in the financial statements for the year ending 31 March 2025.

TECHNICAL RETAIL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
23
Directors' transactions

Dividends totalling £0 (2023 - £156,994) were paid in the year in respect of shares held by the company's directors.

During the year the following amounts were advanced to (repaid by) company directors:

Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Mr S Lees -
-
14,500
(13,929)
571
Mr R Yule -
-
17,500
(16,929)
571
32,000
(30,858)
1,142
24
Ultimate controlling party

The ultimate parent company is TRS Group Holdings Limited.

 

The ultimate controlling parties are the directors by virtue of their interest in the share capital of the ultimate parent company. No individual can, in isolation, exercise complete control over the company.

The smallest group in which the results of the company are consolidated is that headed by TRS Group Holdings Limited. The registered office of TRS Group Holdings Limited is 26-28 Napier Court, Cumbernauld, Glasgow, Scotland, G68 0LG

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