Company registration number 02011635 (England and Wales)
SYSTEM RENTAL UK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
PAGES FOR FILING WITH REGISTRAR
SYSTEM RENTAL UK LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
SYSTEM RENTAL UK LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
2,210,229
1,927,715
Current assets
Stocks
120,128
103,826
Debtors
4
433,767
162,344
Cash at bank and in hand
139,082
145,765
692,977
411,935
Creditors: amounts falling due within one year
5
(555,948)
(389,118)
Net current assets
137,029
22,817
Total assets less current liabilities
2,347,258
1,950,532
Provisions for liabilities
(309,494)
(292,641)
Net assets
2,037,764
1,657,891
Capital and reserves
Called up share capital
6
400
400
Profit and loss reserves
2,037,364
1,657,491
Total equity
2,037,764
1,657,891
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 28 October 2024
Mr D R Hamer
Director
Company registration number 02011635 (England and Wales)
SYSTEM RENTAL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
1
Accounting policies
Company information
System Rental UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2 Rough Hey Road, Grimsargh, Preston, PR2 5AR.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 on the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of signing these financial statements the director is continuing to respond to the business challenges currently being faced because of the current economic climate. The management team are reviewing operational, HR and financial impacts on a regular basis and are taking appropriate corrective actions to protect the business, whilst the finance team continue to monitor cash flow closely.true
It is expected with the challenges within the current economy, that the rental businesses will develop and increase both in contacts and revenue. In return this will help the manufacturing division as opportunities for new work arise.
Considering the measures implemented and following a review of the company's financial position, the director is satisfied that the company will have adequate resources to continue to operate for the foreseeable future. As such the director has concluded that it remains appropriate to prepare these financial statements on the going concern basis.
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. 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.
Rental income is recognised on a straight line basis over the rental period. Turnover also includes the sale of ex-rental stock.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
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.
SYSTEM RENTAL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 3 -
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and machinery
15% straight line, with 10% residual value
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.
1.5
Impairment of fixed assets
At each reporting 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. 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 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 the profit or loss account.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to refurbish 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 profit or loss.
1.7
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include deposits held at call with banks
1.8
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, amounts due from fellow group undertakings 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.
SYSTEM RENTAL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 4 -
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 profit or loss.
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 amounts due to fellow group undertakings are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. 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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
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.
Deferred tax
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
Deferred tax assets are only provided to the extent it is expected that there will be future taxable profits against which the asset will be relieved.
SYSTEM RENTAL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 5 -
1.11
Intercompany sales and purchases
Rental machines are manufactured by Pakawaste Limted, a fellow subsidiary. If a customer approaches the Pakawaste Group and elects to rent a machine rather than purchase outright, Pakawaste Limited sells the machine to System Rental UK Limited or Kelpack Hire Limited, at the price quoted to the customer for a direct sale.
When a machine is no longer on rental it is retained in stock. When a new sale or rental is agreed it is sold to Pakawaste Limited for refurbishment at book value. Pakawaste Limited then sell to the third party or back to System Rental UK Limited, in the case of a new rental. The purchase price for System Rental UK Limited is equal to the price quoted to the customer for a direct sale.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
3
Tangible fixed assets
Plant and machinery
£
Cost
At 1 February 2023
5,736,746
Additions
855,664
Disposals
(350,905)
At 31 January 2024
6,241,505
Depreciation and impairment
At 1 February 2023
3,809,031
Depreciation charged in the year
530,621
Eliminated in respect of disposals
(308,376)
At 31 January 2024
4,031,276
Carrying amount
At 31 January 2024
2,210,229
At 31 January 2023
1,927,715
SYSTEM RENTAL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 6 -
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
165,597
152,084
Amounts owed by group undertakings
263,200
5,192
Other debtors
4,970
5,068
433,767
162,344
5
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
320
Amounts owed to group undertakings
223,100
292,830
Taxation and social security
140,333
62,573
Other creditors
192,515
33,395
555,948
389,118
Included within other creditors are other loans of £145,000 which are secured by fixed charges on the relevant assets
6
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
400
400
400
400
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Lee Van Houplines FCA
Statutory Auditor:
MHA
SYSTEM RENTAL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 7 -
8
Financial commitments, guarantees and contingent liabilities
The company has entered into an unlimited Inter-Company Guarantee dated 18 June 2021 (the “Agreement”), which is held as security for the Group bank facilities. Each participating related company (Pakawaste Limited, Pakawaste Engineering Services Limited, System Rental UK Limited and Kelpack Hire Limited) has provided a guarantee to Clydesdale Bank Plc. Under the terms of the Agreement, Clydesdale Bank Plc is authorised to allow set-off for interest purposes and in certain circumstances to seize credit balances and apply them in reduction of liabilities including debit balances within the Composite Accounting System. The maximum potential liability arising under this guarantee at the year end was £nil (2023: £nil).
The Group bank facilities are also secured by debentures in all of the above participating companies.
9
Related party transactions
In accordance with FRS 102 Section 1AC.35, exemption has been taken from disclosing any transactions with the parent and fellow subsidiary undertakings.
10
Parent company
The company is a wholly owned subsidiary of Pakawaste Holdings Limited, a company registered in England and Wales. The registered office of Pakawaste Holdings is Rough Hey Road, Grimsargh, Preston, Lancashire, PR2 5AR
The ultimate parent company is Brask and Cece Holdings Limited, a company registered in England and Wales. The registered office of Brask and Cece Holdings Limited is 2 Rough Hey Road, Grimsargh, Preston, PR2 5AR.
The largest and smallest group in which the results of the company are consolidated is that headed by Brask and Cece Holdings Limited. The consolidated financial statements of this group are available to the public and may be obtained from Companies House, Cardiff or its registered office.