Company registration number 05103812 (England and Wales)
UNITECH SERVICES GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
UNITECH SERVICES GROUP LIMITED
COMPANY INFORMATION
Director
P Chesters
Company number
05103812
Registered office
Unit 5
Oakwood Close
Pen-Y-Fan Industrial Estate
Crumlin
Gwent
United Kingdom
NP11 3HY
Auditor
Azets Audit Services
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
United Kingdom
PE2 6FZ
Business address
Unit 5
Oakwood Close
Pen-Y-Fan Industrial Estate
Crumlin
Gwent
United Kingdom
NP11 3HY
UNITECH SERVICES GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Director's responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 25
UNITECH SERVICES GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

The director presents the strategic report for the year ended 31 August 2024.

Review of the business

The Oakdale facility has now been operating for over fifteen years and the business has seen a steady growth in revenue and profit over that period and is now entering a period of stability.

 

The Director has in place a series of operational and financial controls that will preserve that profitability for future years and have long-term contracts with major customers in the UK. This will provide security and the potential for further growth.

 

Following a good year, the Director is pleased to have renewed ISO27001 for Information Security, ISO45001 for Health and Safety, ISO9001 (Quality) and 14001 (Environment) certifications and have also qualified as a bronze status with EcoVadis for Sustainability.

Principal risks and uncertainties

The Director recognizes the inherent risks of operating within the nuclear industry and have in place strategies to minimize exposure in all areas where risk exists. Principal amongst those risks facing the business are:

 

The company continues to monitor and control its principal assets of stock, trade debtors and loans in such a manner as to maximize the company's operations in a volatile market.

 

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

 

Development and performance

The Balance Sheet shows improvement in the company's financial position over the past year. The Profit and Loss account shows a consolidation of the performance.

 

Details of debtors are shown in note 12 and details of creditors are shown in note 13 and 14.

UNITECH SERVICES GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
Key performance indicators

Commercial indicators

Revenue per pound of laundry processed

Number of respirators per hour processed

 

Direct sales and Lease

Development of Direct Sales

Increase the lease including Pool.

Develop new customers for all services.

Developing a new non-nuclear customer base.

 

Health and safety indicators

Number of workplace or reportable accidents

Lost time due to accidents in days

Maintain a healthy safety culture and reporting of near misses

 

Environment

Maintain and exceed all the environmental legislation that relates to the Company

Trending of gas, electric and water consumption per pound of laundry processed

Reduce the amount of waste going to landfill

Develop our EcoVadis sustainability qualification and documents.

 

Quality

Maintain ISO9001,14001, 27001 and ISO45001 accreditation

Undertake an annual customer satisfaction survey

Maintain rejects found at customer sites to below 0.1% of processing

 

Radiological indicators

Personal contamination events

Annual dose for all < 1 man/mSv per year

On behalf of the board

P Chesters
Director
13 December 2024
UNITECH SERVICES GROUP LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -

The director presents his annual report and financial statements for the year ended 31 August 2024.

Principal activities

The principal activity of the company continues to be the radiological decontamination and laundry of garments and other items associated with the nuclear industry. In addition to this the company has consolidated its scaffold monitoring and recycling service and developed a Pool service for our main client with plans to expand services to include storage, Transport and non-nuclear customers using our new flag ship technology Q-Pulse.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

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

S Sintros
(Resigned 4 April 2024)
M Bovino
(Resigned 4 April 2024)
P Chesters
Future developments

The director has consolidated Unitech Services Group Limited position for providing an efficient and effective laundry processing service in the nuclear industry and are the first contingency choice for facilities that are carrying out their own laundry processing. The long-term outlook for UniTech in the UK is good with the potential for new customers including HPC, Sellafield, Dounreay, possibly some NHS and alongside this the new services mentioned above.

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

Energy and carbon report

The figures below detail the annual GHG emissions (scope 1 and 2) from activities for which the company is directly responsible.

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
1,016,132
922,647
UNITECH SERVICES GROUP LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
162.00
140.00
- Fuel consumed for owned transport
167.00
125.00
329.00
265.00
Scope 2 - indirect emissions
- Electricity purchased
41.00
95.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
14.00
14.00
Total gross emissions
384.00
374.00
Intensity ratio
Tonnes CO2e per employee
11
11
Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

 

The scope 3 emissions for business travel have not been quantified as estimations show that they account for less than 5% of our scope 1 emissions and therefore are negligible.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.

Measures taken to improve energy efficiency

We are focussing on more efficient transport runs, and consolidation by working with customers to reduce the carbon footprint.

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 director has taken all the necessary steps that they ought to have taken as a director in order to make themself aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
P Chesters
Director
13 December 2024
UNITECH SERVICES GROUP LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 5 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

UNITECH SERVICES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF UNITECH SERVICES GROUP LIMITED
- 6 -
Opinion

We have audited the financial statements of Unitech Services Group Limited (the 'company') for the year ended 31 August 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 director 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 director is 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:

UNITECH SERVICES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UNITECH SERVICES GROUP LIMITED
- 7 -
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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

UNITECH SERVICES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UNITECH SERVICES GROUP LIMITED
- 8 -

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.

Tracey Richardson BSc (Hons) FCA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
16 December 2024
Chartered Accountants
Statutory Auditor
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
United Kingdom
PE2 6FZ
UNITECH SERVICES GROUP LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
4,388,985
4,321,475
Cost of sales
(2,101,001)
(2,149,077)
Gross profit
2,287,984
2,172,398
Distribution costs
(179,498)
(181,876)
Administrative expenses
(1,134,008)
(1,160,731)
Other operating income
21,923
9,355
Operating profit
5
996,401
839,146
Interest receivable and similar income
8
277,471
64,986
Interest payable and similar expenses
7
(2,013)
(256)
Profit before taxation
1,271,859
903,876
Tax on profit
9
(302,028)
(202,155)
Profit for the financial year
969,831
701,721

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

UNITECH SERVICES GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
2024
2023
£
£
Profit for the year
969,831
701,721
Other comprehensive income
-
-
Total comprehensive income for the year
969,831
701,721
UNITECH SERVICES GROUP LIMITED
BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,276,688
1,154,379
Current assets
Stocks
11
706,231
928,991
Debtors
12
1,457,372
1,212,452
Cash at bank and in hand
7,985,010
6,891,426
10,148,613
9,032,869
Creditors: amounts falling due within one year
13
(903,375)
(654,976)
Net current assets
9,245,238
8,377,893
Total assets less current liabilities
10,521,926
9,532,272
Creditors: amounts falling due after more than one year
14
(203,517)
(212,872)
Provisions for liabilities
Provisions
19
418,221
389,043
(418,221)
(389,043)
Net assets
9,900,188
8,930,357
Capital and reserves
Called up share capital
18
1,000
1,000
Share premium account
99,000
99,000
Profit and loss reserves
9,800,188
8,830,357
Total equity
9,900,188
8,930,357
The financial statements were approved by the board of directors and authorised for issue on 13 December 2024 and are signed on its behalf by:
P Chesters
Director
Company Registration No. 05103812
UNITECH SERVICES GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 September 2022
1,000
99,000
8,128,636
8,228,636
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
-
701,721
701,721
Balance at 31 August 2023
1,000
99,000
8,830,357
8,930,357
Year ended 31 August 2024:
Profit and total comprehensive income for the year
-
-
969,831
969,831
Balance at 31 August 2024
1,000
99,000
9,800,188
9,900,188
UNITECH SERVICES GROUP LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
1,331,982
672,958
Interest paid
(2,013)
(256)
Income taxes paid
(261,795)
(80,389)
Net cash inflow from operating activities
1,068,174
592,313
Investing activities
Purchase of tangible fixed assets
(253,388)
(138,304)
Proceeds from disposal of tangible fixed assets
1,327
4,650
Interest received
277,471
64,986
Net cash generated from/(used in) investing activities
25,410
(68,668)
Net increase in cash and cash equivalents
1,093,584
523,645
Cash and cash equivalents at beginning of year
6,891,426
6,367,781
Cash and cash equivalents at end of year
7,985,010
6,891,426
UNITECH SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 14 -
1
Accounting policies
Company information

Unitech Services Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 5, Oakwood Close, Pen-Y-Fan Industrial Estate, Crumlin, Gwent, United Kingdom, NP11 3HY.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Unitech Services Group Limited is a wholly owned subsidiary of Unifirst Corporation. The results of Unitech Services Group Limited are included in the consolidated financial statements of UniFirst Corporation, a company incorporated in the USA.

1.2
Going concern

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

 

1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

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.

Revenue from contracts for the provision of professional 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.

UNITECH SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -
1.4
Tangible fixed assets

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

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Freehold land and buildings
2.8%, 6.6% and 10% straight line
Plant and machinery
6.6%, 10% and 20% straight line
Fixtures, fittings and equipment
12.5%, 20% and 33.3% Straight line
Motor vehicles
20% straight line and 10% straight line

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 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 profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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. Reversals of impairment losses are also recognised in profit or loss.

 

Circulating inventory is being amortised over 15, 24 or 36 months.

UNITECH SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 16 -
1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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 and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

UNITECH SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 17 -
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 creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.9
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.

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.

UNITECH SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 18 -
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.
1.11
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.

 

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

1.12
Retirement benefits

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

1.13
Government grants

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

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

1.14
Foreign exchange

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

1.15
Asset decommissioning provision

The legal obligations of the nuclear industry require costs to be incurred in the future for the decommissioning of the plant. These costs can be forecasted based upon similar experiences within the group. In order to show a true and fair view and to be consistent with other companies in the group, the director has decided that provisions for decommissioning costs should be made in accordance with group policy. A provision is made in accordance with ASC 410-20 for consistency, this is not materially different to UK GAAP.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

UNITECH SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -
3
Turnover and other revenue

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

2024
2023
£
£
Turnover
Direct sales
520,190
618,007
Laundry processing and garment leasing and repair
3,868,795
3,703,468
4,388,985
4,321,475
Other significant revenue
Interest income
277,471
64,986
Grant amortisation
9,355
9,355
Turnover analysed by geographical market

The total turnover of the company for the year that is considered to be material has been derived from its principal activity wholly undertaken in the UK.

4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
11,800
11,000
For other services
Taxation compliance services
6,150
5,775
All other non-audit services
2,950
2,562
9,100
8,337
5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
3,372
3,842
Government grants
(9,355)
(9,355)
Depreciation of owned tangible fixed assets
130,598
139,971
(Profit)/loss on disposal of tangible fixed assets
(846)
10,089
Impairment of stocks recognised or reversed
281,711
259,944
UNITECH SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
6
Employees

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

2024
2023
Number
Number
Office and management
5
6
Sales staff
1
1
Production
29
30
Total
35
37

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,220,555
1,298,338
Social security costs
115,774
108,776
Pension costs
32,720
30,645
1,369,049
1,437,759
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2,013
256
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
277,471
64,986
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
302,010
190,007
Deferred tax
Origination and reversal of timing differences
18
12,148
Total tax charge
302,028
202,155
UNITECH SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
9
Taxation
(Continued)
- 21 -

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

2024
2023
£
£
Profit before taxation
1,271,859
903,876
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
317,965
194,514
Tax effect of expenses that are not deductible in determining taxable profit
7,208
7,968
Tax effect of income not taxable in determining taxable profit
(2,339)
(2,013)
Deferred tax movement
18
12,148
Capital allowances
(53,386)
(40,584)
Depreciation add back
32,562
30,122
Taxation charge for the year
302,028
202,155
10
Tangible fixed assets
Freehold land and buildings
Assets under construction
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 September 2023
3,980,146
-
0
2,531,338
137,055
69,249
6,717,788
Additions
108,031
77,290
24,925
5,681
37,461
253,388
Disposals
(16,027)
-
0
-
0
-
0
(16,990)
(33,017)
At 31 August 2024
4,072,150
77,290
2,556,263
142,736
89,720
6,938,159
Depreciation and impairment
At 1 September 2023
3,140,460
-
0
2,272,095
116,232
34,622
5,563,409
Depreciation charged in the year
53,192
-
0
58,733
6,722
11,951
130,598
Eliminated in respect of disposals
(16,027)
-
0
-
0
-
0
(16,509)
(32,536)
At 31 August 2024
3,177,625
-
0
2,330,828
122,954
30,064
5,661,471
Carrying amount
At 31 August 2024
894,525
77,290
225,435
19,782
59,656
1,276,688
At 31 August 2023
839,686
-
0
259,243
20,823
34,627
1,154,379

Freehold land and buildings includes capitalised finance costs of £131,039.

UNITECH SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
11
Stocks
2024
2023
£
£
Finished goods and goods for resale
706,231
928,991
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,058,271
792,063
Amounts owed by group undertakings
15,744
20,338
Prepayments and accrued income
241,466
258,142
1,315,481
1,070,543
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 15)
141,891
141,909
Total debtors
1,457,372
1,212,452
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
274,207
120,831
Amounts owed to group undertakings
99,226
58,880
Corporation tax
150,222
110,007
Other taxation and social security
88,797
116,101
Other creditors
5,890
5,874
Accruals and deferred income
285,033
243,283
903,375
654,976
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Government grants
16
203,517
212,872
UNITECH SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 23 -
15
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
23,068
28,042
Other timing differences
118,823
113,867
141,891
141,909
2024
Movements in the year:
£
Asset at 1 September 2023
141,909
Charge to profit or loss
(18)
Asset at 31 August 2024
141,891

The deferred tax asset set out above is expected to reverse within the forseeable future and relates to the utilisation of tax losses against future expected profits of the same period.

16
Government grants
2024
2023
£
£
Arising from government grants
203,517
212,872

The company received a £300,000 Single Investment Fund grant in 2009 and an additional £70,968 RSA grant in 2013. The grants received are shown as deferred income in the balance sheet and released to the profit and loss account over the expected useful life of the asset for which they were provided being 35 years.

 

Refer to note 5 operating profit for amounts credited to profit and loss in the year.

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
32,720
30,645

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.

UNITECH SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 24 -
18
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
19
Provisions for liabilities
2024
2023
£
£
Asset decommissioning provision
418,221
389,043
Movements on provisions:
Asset decommissioning provision
£
At 1 September 2023
389,043
Unwinding of discount
29,178
At 31 August 2024
418,221

Refer to accounting policy 1.15 for information regarding the asset decommissioning provision.

20
Operating lease commitments

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
108,107
19,264
Between two and five years
336,848
4,684
444,955
23,948
21
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel including employer's pension contributions is as follows.

 

2024
2023
£
£
Aggregate compensation
141,734
139,375
UNITECH SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
21
Related party transactions
(Continued)
- 25 -
Other information

 

As a wholly-owned subsidiary undertaking, the company has taken advantage of the exemption contained in Section 33 of FRS102 and has not disclosed transactions or balances with entities which form part of the group.

 

There were no other related party transactions during the year.

22
Ultimate controlling party

On 29 July 2024 the shares in UniTech Services Group Ltd were transferred from Unitech Services Group Inc. which is registered in the United States, to UniTech Holding SE, which is registered is Netherlands and which became the immediate parent.

 

The ultimate parent company is UniFirst Corporation, which is registered in the United States.

 

No one individual has a controlling interest in the company.

23
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
969,831
701,721
Adjustments for:
Taxation charged
302,028
202,155
Finance costs
2,013
256
Investment income
(277,471)
(64,986)
(Gain)/loss on disposal of tangible fixed assets
(846)
10,089
Depreciation and impairment of tangible fixed assets
130,598
139,971
Increase in provisions
29,178
27,142
Movements in working capital:
Decrease in stocks
222,760
20,933
Increase in debtors
(244,938)
(259,683)
Increase/(decrease) in creditors
208,184
(95,284)
Decrease in deferred income
(9,355)
(9,356)
Cash generated from operations
1,331,982
672,958
24
Analysis of changes in net funds
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
6,891,426
1,093,584
7,985,010
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