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Registered number: 00490674










TOTAL INTEGRATED SOLUTIONS LIMITED










Annual report and financial statements

For the year ended 31 December 2023

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

Company Information


Directors
J J Twigg 
C Sutton 




Registered number
00490674



Registered office
Hamilton Way
Oakham Business Park

Mansfield

Nottinghamshire

NG18 5BU




Independent auditors
PKF Smith Cooper Audit Limited
Statutory Auditors

2 Lace Market Square

Nottingham

NG1 1PB





 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

Contents



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 26


 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

Strategic report
for the year ended 31 December 2023

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

Business review
 
Total Integrated Solutions Limited aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties that we face.
The directors consider that the results for the year and the financial position at the end of the year were very good. The directors have continued with the business strategy of investment to support future growth. The economic climate remains challenging, however we remain pleased with our performance over the year.

Principal risks and uncertainties
 
The Company remains focussed and committed to managing the factors which affected our business over the last twelve months.
Now in the second full year of the private equity investment from KCP, we continue to deliver our growth plan. Growth is occurring across all revenue streams of installation, service and maintenance. Recurring revenue from service and maintenance is growing well and recurring spend on installations from long-term customers is also growing in line with expectations. We unfortunately continue to see some delays in the construction projects in our customer pipelines due to external economic factors, which is having an impact on the rate of revenue growth. 
The business remains well placed for accelerated growth into 2024 and beyond, with growth in key sectors forecast.
The executive team remain focussed on our growth strategy, with objectives and key results agreed at board level, to ensure our continued success and effective mitigation of associated risks. Focus will primarily continue on the vertical sectors that we understand integrally, enabling us to add pivotal value for our valued customers and enhance their business and secure our ongoing future partnerships.

Page 1

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

Strategic report (continued)
for the year ended 31 December 2023

Financial key performance indicators
 
We consider that our key financial performance indicators are those that communicate the financial performance and position of the company as a whole, these being revenue, pre tax profit and return on capital employed.
Revenue for the year is £19,468,542 compared to £17,284,659 in 2022. This is up by £2,183,883 which is a 12.6% increase.
Pre tax profit for the year was £1,628,851 which is 8.4% of our annual revenue. This compares to £1,620,579 in 2022 (9.4% of annual revenue).
Return on capital employed, defined as earnings before interest and tax divided by total assets less current liabilities, is 13.8% 
(2022 - 16.1%).
The business’ principal financial instruments comprise bank accounts, trade debtors and trade creditors. The main purpose of these instruments is to finance the business’ operations.
In respect of bank balances, all balances are managed in order to ensure our liabilities are met to terms.
Trade debtors are managed in respect of credit and cashflow risk by policies concerning the credit offered to or customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for bad and doubtful debtors.
Trade creditors’ liquidity risk is managed by ensuring that there are sufficient funds available to meet the amounts due.
The liquidity of the business remains a key focus of the management team. At 31 December 2023 the current ratio has been maintained at a strong level of 3.41 
(2022: 3.23).


This report was approved by the board and signed on its behalf.



................................................
J J Twigg
Director

Date: 22 November 2024

Page 2

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Directors' report
for the year ended 31 December 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The nature of the Company's operations and principal activities are the installation and maintenance of communication and security systems.

Results and dividends

The profit for the year, after taxation, amounted to £1,584,443 (2022 - £1,651,109).

During the year dividends amounting to £Nil (2022 - £Nil) were paid.

Directors

The directors who served during the year were:

J J Twigg 
C Sutton 

Qualifying third party indemnity provisions

A qualifying third party indemnity provision is in place for the directors of the company. This covers liability for the actions of the directors and officers of the company and associated costs including legal costs. No claim or notice of claim in respect of these indemnities has been received in the year. The qualifying indemnity provision was in force throughout the financial year and up to the date of approval of the Directors' Report.

Page 3

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Directors' report (continued)
for the year ended 31 December 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsPKF Smith Cooper Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
J J Twigg
Director

Date: 22 November 2024

Page 4

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Independent auditors' report to the members of Total Integrated Solutions Limited
 

Opinion


We have audited the financial statements of Total Integrated Solutions Limited (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 the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Independent auditors' report to the members of Total Integrated Solutions Limited (continued)


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the 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.


Page 6

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Independent auditors' report to the members of Total Integrated Solutions Limited (continued)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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:

Based on our understanding of the Company and industry, we identified that the principal risk of fraud or non-compliance with laws and regulations related to:
 
management bias in respect of accounting estimates and judgements made;
management override of control;
posting of unusual journals or transactions.
 
We focussed on those areas that could give rise to a material misstatement in the Company financial statements. Our procedures included, but were not limited to:
 
enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;
reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;
reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
 
It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Page 7

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Independent auditors' report to the members of Total Integrated Solutions Limited (continued)


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 2006Our 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 Auditors' 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.





James Bagley (Senior statutory auditor)
for and on behalf of
PKF Smith Cooper Audit Limited
Statutory Auditors
2 Lace Market Square
Nottingham
NG1 1PB

25 November 2024
Page 8

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

Statement of comprehensive income
for the year ended 31 December 2023

2023
2022
Note
£
£

  

Turnover
 4 
19,468,542
17,284,659

Cost of sales
  
(11,332,452)
(9,906,153)

Gross profit
  
8,136,090
7,378,506

Administrative expenses
  
(6,475,745)
(5,732,270)

Operating profit
 5 
1,660,345
1,646,236

Interest payable and similar expenses
 9 
(31,493)
(25,657)

Profit before tax
  
1,628,852
1,620,579

Tax on profit
 10 
(44,409)
30,530

Profit for the financial year
  
1,584,443
1,651,109

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 12 to 26 form part of these financial statements.

Page 9

 
TOTAL INTEGRATED SOLUTIONS LIMITED
Registered number: 00490674

Balance sheet
as at 31 December 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
1,519,070
1,370,659

Investments
 12 
1
1

  
1,519,071
1,370,660

Current assets
  

Stocks
 13 
632,209
671,627

Debtors: amounts falling due after more than one year
 14 
78,566
187,255

Debtors: amounts falling due within one year
 14 
13,095,693
11,399,334

Cash at bank and in hand
 15 
1,036,286
549,422

  
14,842,754
12,807,638

Creditors: amounts falling due within one year
 16 
(4,353,476)
(3,967,540)

Net current assets
  
 
 
10,489,278
 
 
8,840,098

Total assets less current liabilities
  
12,008,349
10,210,758

Creditors: amounts falling due after more than one year
 17 
(436,133)
(267,394)

Provisions for liabilities
  

Deferred tax
 20 
(339,552)
(295,143)

  
 
 
(339,552)
 
 
(295,143)

Net assets
  
11,232,664
9,648,221


Capital and reserves
  

Called up share capital 
 21 
118,015
118,015

Share premium account
 22 
10,496
10,496

Other reserves
 22 
14,489
14,489

Profit and loss account
 22 
11,089,664
9,505,221

  
11,232,664
9,648,221


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


................................................
J J Twigg
Director

Date: 22 November 2024

The notes on pages 12 to 26 form part of these financial statements.

Page 10

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

Statement of changes in equity
for the year ended 31 December 2023


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2022
118,015
10,496
14,489
7,854,112
7,997,112


Comprehensive income for the year

Profit for the year
-
-
-
1,651,109
1,651,109



At 1 January 2023
118,015
10,496
14,489
9,505,221
9,648,221


Comprehensive income for the year

Profit for the year
-
-
-
1,584,443
1,584,443


At 31 December 2023
118,015
10,496
14,489
11,089,664
11,232,664


The notes on pages 12 to 26 form part of these financial statements.

Page 11

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2023

1.


General information

Total Integrated Solutions Limited is a private company limited by shares incorporated in the United Kingdom. The address of the registered office is given in the company information of these financial statements. The nature of the company’s operations and principal activities are detailed in the directors' report. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention.
The Company is itself a subsidiary company and is exempt from the requirement to prepare group financial statements by virtue of section 400 of the Companies Act 2006. The financial statements therefore present information about the Company as an individual undertaking and not about its group.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1.

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).

This information is included in the consolidated financial statements of Skyfall Topco Limited as at 31 December 2023 and these financial statements may be obtained from Hamilton Way, Oakham Business Park, Mansfield, NG18 5BU.

Page 12

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts
For contracts with customers which have the characteristics of long term contracts, revenue represents the total amount receivable in respect of work done, including certified amounts recoverable on contracts. Profit on contracts is taken at the point the outcome of the contract can be estimated reliably, which is based on the level of completion of the contract at the balance sheet date.
Losses are recognised as soon as they are foreseeable.

 
2.4

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Motor vehicles
-
25% reducing balance
Fixtures and fittings
-
12.5% straight line
Office equipment
-
10%-33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.5

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 13

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2023

2.Accounting policies (continued)

 
2.6

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. The cost of finished goods and work-in-progress comprises raw materials, direct labour, other direct costs and related production overheads (based on normal operating capacity). Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.7

Short term debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the Statement of comprehensive income in other administrative expenses.

 
2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

  
2.9

Foreign currency translation

Functional and presentational currency
The company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rate at the date of the transaction.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.10

Leased assets

Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method.  The related obligations, net of future finance charges, are included in creditors.
Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Page 14

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2023

2.Accounting policies (continued)

 
2.11

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.13

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Page 15

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. There are no significant judgements (apart from those involving estimates) which have had an effect on amounts recognised in the financial statements.
The key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities include:
Sales provisions
Profit recognition is based on an assessment of the stage of completion of the contract. The profit recognised reflects that part of the total profit estimated to arise over the duration of the contract that fairly represents the profit attributable to the work performed at the accounting date.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.
Depreciation
Depreciation rates are assigned to each asset category based on the useful economic lives of the assets of that type. These rates are applied to all assets until they are fully written down.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Commercial
11,474,719
10,913,859

Maintenance and service
5,497,053
4,699,560

MoD
2,496,770
1,671,240

19,468,542
17,284,659


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets - owned
202,323
196,722

Depreciation of tangible fixed assets - financed
231,067
234,032

Operating lease rentals
391,741
373,991

Defined contribution pension cost
190,339
184,058

Page 16

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2023

6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
12,000
11,895

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
6,102,279
5,619,682

Social security costs
637,104
584,227

Cost of defined contribution scheme
190,339
184,058

6,929,722
6,387,967


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Administration
64
50



Technical
13
16



Management
23
25



Engineers
71
73

171
164

Page 17

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2023

8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
274,534
161,561

Company contributions to defined contribution pension schemes
6,372
10,000

280,906
171,561


During the year retirement benefits were accruing to 2 directors (2022 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £169,073 (2022 - £171,561).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £2,500 (2022 - £10,000).


9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
3,360
1,543

Finance leases and hire purchase contracts
28,133
24,114

31,493
25,657


10.


Taxation


2023
2022
£
£



Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
44,409
(30,530)

Total deferred tax
44,409
(30,530)


Taxation on profit on ordinary activities
44,409
(30,530)
Page 18

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,628,852
1,620,579


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
383,115
307,910

Effects of:


Expenses not deductible for tax purposes
13,097
18,132

Fixed asset differences
3,190
(16,054)

Non-taxable income
(307)
-

Adjustment in research and development tax credit leading to a decrease in the tax charge
(265,416)
(256,702)

Remeasurement of deferred tax for changes in tax rates
2,628
(7,327)

Group relief
(91,898)
(76,489)

Total tax charge for the year
44,409
(30,530)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 19

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2023

11.


Tangible fixed assets





Motor vehicles
Fixtures and fittings
Office equipment
Total

£
£
£
£



Cost


At 1 January 2023
1,539,337
613,161
1,108,795
3,261,293


Additions
508,119
58,280
89,021
655,420


Disposals
(298,297)
-
-
(298,297)



At 31 December 2023

1,749,159
671,441
1,197,816
3,618,416



Depreciation


At 1 January 2023
817,883
390,453
682,298
1,890,634


Charge for the year on owned assets
1,818
78,724
121,781
202,323


Charge for the year on financed assets
231,067
-
-
231,067


Disposals
(224,678)
-
-
(224,678)



At 31 December 2023

826,090
469,177
804,079
2,099,346



Net book value



At 31 December 2023
923,069
202,264
393,737
1,519,070



At 31 December 2022
721,454
222,708
426,497
1,370,659

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Motor vehicles
909,977
715,710

Page 20

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2023

12.


Fixed asset investments





Investments in subsidiary companies

£



Cost


At 1 January 2023
1



At 31 December 2023
1





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Television Installation Services (Mansfield) Limited
Hamilton Way, Oakham Business Park, Mansfield, NG18 5BU
Dormant
Ordinary
100%


13.


Stocks

2023
2022
£
£

Work in progress
-
213,139

Finished goods and goods for resale
632,209
458,488

632,209
671,627


Stocks are stated after provisions for impairment of £Nil (2022 - £Nil).

Page 21

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2023

14.


Debtors

2023
2022
£
£

Due after more than one year

Trade debtors
78,566
187,255


2023
2022
£
£

Due within one year

Trade debtors
2,237,302
2,880,992

Amounts owed by group undertakings
8,847,884
7,229,247

Other debtors
186,433
163,009

Prepayments and accrued income
1,824,074
1,126,086

13,095,693
11,399,334


Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
Trade debtors are stated after provisions for impairment of £7,426 (
2022 - £21,829).


15.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,036,286
549,422


Page 22

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2023

16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
2,570,572
2,282,254

Amounts owed to group undertakings
192,927
-

Other taxation and social security
351,269
331,739

Obligations under finance lease and hire purchase contracts
262,386
232,202

Other creditors
1,880
8,767

Accruals and deferred income
974,442
1,112,578

4,353,476
3,967,540


Secured creditors
Creditors falling due within one year on which security has been given by the Company include obligations under hire purchase contracts of £262,386 (2022 - £232,202).
The net obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.


17.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
436,133
267,394


Secured creditors
Creditors falling due after more than one year on which security has been given by the Company include obligations under hire purchase contracts of £436,133 (2022 - £267,394).
The net obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.


18.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
262,386
232,202

Between 1-5 years
436,133
267,394

698,519
499,596

Page 23

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2023

19.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at amortised cost
11,350,185
10,460,503


Financial liabilities


Financial liabilities measured at amortised cost
(3,463,898)
(2,790,617)


Financial assets measured at amortised cost comprise trade debtors, amounts owed by group undertakings and other debtors.


Financial liabilities measured at amortised cost comprise trade creditors, amounts owed to group undertakings, obligations under hire purchase contracts and other creditors.


20.


Deferred taxation




2023


£






At beginning of year
(295,143)


Charged to profit or loss
(44,409)



At end of year
(339,552)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Fixed asset timing differences
(343,544)
(298,881)

Short term timing differences
3,992
3,738

(339,552)
(295,143)


21.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



118,015 (2022 - 118,015) Ordinary shares of £1.00 each
118,015
118,015


Page 24

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2023

22.


Reserves

Share premium account

The share premium represents the amount raised on the issue of shares in excess of their par value.

Capital redemption reserve

The capital redemption reserve represents the nominal value of shares redeemed by the Company.

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends.


23.


Capital commitments


At 31 December 2023 the Company had capital commitments as follows:

2023
2022
£
£


Contracted for but not provided in these financial statements
235,365
-

The Company is also committed to annual costs of £49,470 for the next 5 years from the date of installation.


24.


Pension commitments

The Company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the Company to the scheme, and amounted to £190,339 (2022 - £184,058).
Contributions totalling £28,557 (
2022 - £26,722) were payable to the fund at the balance sheet date and are included in creditors.


25.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
382,554
424,045

Later than 1 year and not later than 5 years
779,697
379,141

1,162,251
803,186

Page 25

 
TOTAL INTEGRATED SOLUTIONS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2023

26.Other financial commitments

The Company has given cross corporate guarantees with Total Integrated Solutions (Holdings) Limited to its bank.
There is a fixed and floating charge over the property and undertaking of the Company dated 22 December 2021 in favour of TC Loans Limited. There is a fixed and floating charge over the property and undertaking of the Company dated 6 April 2021 in favour of Key Capital Partners LLP. 


27.


Related party transactions

The Company has taken advantage of the exemption under FRS 102 Section 33.1A Related Party Disclosures from disclosing transactions with other members of the group.
The Company has taken advantage of the exemption under FRS 102 Section 1.12 Reduced Disclosures for Subsidiaries from disclosing key management personnel compensation in total.
During the year the Company made purchases of £55,183 (
2022 - £63,835) from a company in which a director is a partner. At the balance sheet date, the amount due to this related party was £14,304 (2022 - £10,186).
During the year the Company made purchases of £26,474 (
2022 - £27,291) from a company in which a director is a partner. 
Included within other debtors is £2,183 due from a director (
2022 - £2,433). Amounts advanced to this director during the year totalled £11,925 (2022 - £6,293) and amounts repaid during the year totalled £12,174 (2022 - £4,177). No interest was charged on the loan. 


28.


Controlling party

The Company is controlled by its ultimate parent undertaking Skyfall Topco Limited, a company incorporated in the United Kingdom. The ultimate controlling party is J J Twigg. 
Consolidated financial statements are available from Hamilton Way, Oakham Business Park, Mansfield, Nottinghamshire, NG18 5BU.


Page 26