Registered number:
For the year ended
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TOTAL INTEGRATED SOLUTIONS LIMITED
Company Information
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TOTAL INTEGRATED SOLUTIONS LIMITED
Contents
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TOTAL INTEGRATED SOLUTIONS LIMITED
Strategic report
for the year ended 31 December 2023
The directors present their strategic report for the year ended 31 December 2023.
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.
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
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TOTAL INTEGRATED SOLUTIONS LIMITED
Strategic report (continued)
for the year ended 31 December 2023
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.
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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.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
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 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.
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.
The directors who served during the year were:
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TOTAL INTEGRATED SOLUTIONS LIMITED
Directors' report (continued)
for the year ended 31 December 2023
There have been no significant events affecting the Company since the year end.
The auditors, PKF Smith Cooper Audit Limited, will 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.
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TOTAL INTEGRATED SOLUTIONS LIMITED
Independent auditors' report to the members of Total Integrated Solutions Limited
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 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).
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.
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.
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 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.
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TOTAL INTEGRATED SOLUTIONS LIMITED
Independent auditors' report to the members of Total Integrated Solutions Limited (continued)
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.
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.
Page 6
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TOTAL INTEGRATED SOLUTIONS LIMITED
Independent auditors' report to the members of Total Integrated Solutions Limited (continued)
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.
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TOTAL INTEGRATED SOLUTIONS LIMITED
Independent auditors' report to the members of Total Integrated Solutions Limited (continued)
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 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.
for and on behalf of
Statutory Auditors
2 Lace Market Square
NG1 1PB
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TOTAL INTEGRATED SOLUTIONS LIMITED
Statement of comprehensive income
for the year ended 31 December 2023
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TOTAL INTEGRATED SOLUTIONS LIMITED
Registered number: 00490674
Balance sheet
as at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 12 to 26 form part of these financial statements.
Page 10
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TOTAL INTEGRATED SOLUTIONS LIMITED
Statement of changes in equity
for the year ended 31 December 2023
Page 11
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TOTAL INTEGRATED SOLUTIONS LIMITED
Notes to the financial statements
for the year ended 31 December 2023
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
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.
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.
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TOTAL INTEGRATED SOLUTIONS LIMITED
Notes to the financial statements
for the year ended 31 December 2023
2.Accounting policies (continued)
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.
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:
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.
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TOTAL INTEGRATED SOLUTIONS LIMITED
Notes to the financial statements
for the year ended 31 December 2023
2.Accounting policies (continued)
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. 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.
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TOTAL INTEGRATED SOLUTIONS LIMITED
Notes to the financial statements
for the year ended 31 December 2023
2.Accounting policies (continued)
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
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TOTAL INTEGRATED SOLUTIONS LIMITED
Notes to the financial statements
for the year ended 31 December 2023
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.
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TOTAL INTEGRATED SOLUTIONS LIMITED
Notes to the financial statements
for the year ended 31 December 2023
Page 17
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TOTAL INTEGRATED SOLUTIONS LIMITED
Notes to the financial statements
for the year ended 31 December 2023
Page 18
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TOTAL INTEGRATED SOLUTIONS LIMITED
Notes to the financial statements
for the year ended 31 December 2023
10.Taxation (continued)
There were no factors that may affect future tax charges.
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TOTAL INTEGRATED SOLUTIONS LIMITED
Notes to the financial statements
for the year ended 31 December 2023
Page 20
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TOTAL INTEGRATED SOLUTIONS LIMITED
Notes to the financial statements
for the year ended 31 December 2023
Page 21
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TOTAL INTEGRATED SOLUTIONS LIMITED
Notes to the financial statements
for the year ended 31 December 2023
Page 22
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TOTAL INTEGRATED SOLUTIONS LIMITED
Notes to the financial statements
for the year ended 31 December 2023
Page 23
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TOTAL INTEGRATED SOLUTIONS LIMITED
Notes to the financial statements
for the year ended 31 December 2023
Page 24
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TOTAL INTEGRATED SOLUTIONS LIMITED
Notes to the financial statements
for the year ended 31 December 2023
Share premium account
Capital redemption reserve
Profit and loss account
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.
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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.
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.
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