Company Registration No. 05620948 (England and Wales)
PROPERTY SUPPORT SERVICES UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PROPERTY SUPPORT SERVICES UK LIMITED
COMPANY INFORMATION
Director
Mr Michael Rust
Secretary
Mr Michael Rust
Company number
05620948
Registered office
249 Cranbrook Road
Ilford
Essex
IG1 4TG
Auditor
Xeinadin Audit Ltd
249 Cranbrook Road
Ilford
Essex
IG1 4TG
PROPERTY SUPPORT SERVICES UK LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Income statement
8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 28
PROPERTY SUPPORT SERVICES UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The director presents the strategic report for the year ended 31 March 2024.
Fair review of the business
The company remains wholly in private ownership and maintains its pursuit of a policy of longer term investment and financial stability over short-term profit.
Development and performance
Turnover for the year is above forecast and performing well. Focus this year has been on inward investment, cost control and strengthening relationships with key clients.
Key performance indicators
Our commitment to Health & Safety, Sustainability and the Environment is driven from the top through our Chairman and Managing Director, and demonstrated through the awards and accolades we have achieved. PSS is the recipient of the Green Apple Award, A Green World Ambassador and Investor in People Accredited.
PSS is committed and has pledged to achieving Net Zero emissions by 2050, aiming to reduce its scope 1, 2 and selected 3 emissions significantly year on year and by 42% by 2030.
Debtors
The cash position of the business remains robust, and the company meets all its liabilities. Debtors are recovered on a timely basis. Bad debts and their control and management remain a risk against the wider economic backdrop.
Post balance sheet events
A focus on core services and cost control is firmly in place. Our reputation for outstanding customer service, a passion for the industry, innovation and commitment to the environment is what helps us stand out from others in our field.
We look forward to a good but challenging year ahead and to building on achievements in 2023/24.
Mr Michael Rust
Director
7 February 2025
PROPERTY SUPPORT SERVICES UK LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The director presents his annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of contract cleaning and property maintenance.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £97,000. The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr Michael Rust
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Auditor
The auditor Xeinadin Audit Ltd is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
PROPERTY SUPPORT SERVICES UK LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr Michael Rust
Director
7 February 2025
PROPERTY SUPPORT SERVICES UK LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
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:
select suitable accounting policies and then apply them consistently;
make judgements 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 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.
PROPERTY SUPPORT SERVICES UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PROPERTY SUPPORT SERVICES UK LIMITED
- 5 -
Opinion
We have audited the financial statements of Property Support Services UK Limited (the 'company') for the year ended 31 March 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, 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:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its loss 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.
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.
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:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
PROPERTY SUPPORT SERVICES UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PROPERTY SUPPORT SERVICES UK LIMITED
- 6 -
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:
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
ICAEW guidance relating to reporting on irregularities, November 2020, based on ISA 700 A39-1 to A39-5
The auditor’s explanation of its audit response will depend on the risks identified but may include:
- Enquiry of management, those charged with governance and the entity’s solicitors (or in-house legal team) around actual and potential litigation and claims.
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
- Reviewing minutes of meetings of those charged with governance.
- Reviewing internal audit reports.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
ICAEW guidance relating to reporting on irregularities, November 2020, based on ISA 700 A39-1 to A39-5
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.
PROPERTY SUPPORT SERVICES UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PROPERTY SUPPORT SERVICES UK LIMITED
- 7 -
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.
Barry Leibovitch (Senior Statutory Auditor)
For and on behalf of Xeinadin Audit Ltd
11 February 2025
Statutory Auditors
249 Cranbrook Road
Ilford
Essex
IG1 4TG
PROPERTY SUPPORT SERVICES UK LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Revenue
3
28,484,521
28,039,580
Cost of sales
(26,319,622)
(24,204,875)
Gross profit
2,164,899
3,834,705
Administrative expenses
(3,730,004)
(3,054,457)
Operating (loss)/profit
4
(1,565,105)
780,248
Investment income
7
13,119
Finance costs
8
(157,417)
(81,955)
Change in fair value of financial assets measured at FVTPL
9
117,617
(61,138)
(Loss)/profit before taxation
(1,591,786)
637,155
Tax on loss/profit
10
266,511
(141,204)
(Loss)/profit for the financial year
(1,325,275)
495,951
The income statement has been prepared on the basis that all operations are continuing operations.
PROPERTY SUPPORT SERVICES UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
£
£
(Loss)/profit for the year
(1,325,275)
495,951
Other comprehensive income
-
-
Total comprehensive income for the year
(1,325,275)
495,951
PROPERTY SUPPORT SERVICES UK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Non-current assets
Goodwill
12
3,164
4,196
Property, plant and equipment
13
551,263
522,491
Investments
14
449,595
331,978
1,004,022
858,665
Current assets
Inventories
17
148,000
127,000
Trade and other receivables
18
9,302,263
7,187,251
Cash and cash equivalents
987,456
1,719,526
10,437,719
9,033,777
Current liabilities
19
(7,765,498)
(4,633,119)
Net current assets
2,672,221
4,400,658
Total assets less current liabilities
3,676,243
5,259,323
Non-current liabilities
20
(26,262)
(72,998)
Provisions for liabilities
Deferred tax liability
22
114,069
-
(114,069)
Net assets
3,649,981
5,072,256
Equity
Called up share capital
24
100
100
Retained earnings
3,649,881
5,072,156
Total equity
3,649,981
5,072,256
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 7 February 2025
Mr Michael Rust
Director
Company registration number 05620948 (England and Wales)
PROPERTY SUPPORT SERVICES UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 April 2022
100
4,736,205
4,736,305
Year ended 31 March 2023:
Profit and total comprehensive income
-
495,951
495,951
Dividends
11
-
(160,000)
(160,000)
Balance at 31 March 2023
100
5,072,156
5,072,256
Year ended 31 March 2024:
Loss and total comprehensive income
-
(1,325,275)
(1,325,275)
Dividends
11
-
(97,000)
(97,000)
Balance at 31 March 2024
100
3,649,881
3,649,981
PROPERTY SUPPORT SERVICES UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
29
(266,738)
779,663
Interest paid
(157,417)
(81,955)
Income taxes paid
(36,624)
(137,475)
Net cash (outflow)/inflow from operating activities
(460,779)
560,233
Investing activities
Purchase of property, plant and equipment
(178,108)
(201,294)
Proceeds from disposal of subsidiaries
(117,617)
95,952
Proceeds from disposal of investments
117,617
(61,138)
Repayment of loans
45,764
85,091
Interest received
13,119
Net cash used in investing activities
(119,225)
(81,389)
Financing activities
Payment of finance leases obligations
(55,066)
(17,289)
Dividends paid
(97,000)
(160,000)
Net cash used in financing activities
(152,066)
(177,289)
Net (decrease)/increase in cash and cash equivalents
(732,070)
301,555
Cash and cash equivalents at beginning of year
1,719,526
1,417,971
Cash and cash equivalents at end of year
987,456
1,719,526
PROPERTY SUPPORT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information
Property Support Services UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 249 Cranbrook Road, Ilford, Essex, IG1 4TG.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
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
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
1.4
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of 20 years.
1.5
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
PROPERTY SUPPORT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
25% Reducing balance
Fixtures, fittings & equipment
25% Reducing balance
Motor vehicles
25% Reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Non-current investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.
PROPERTY SUPPORT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.8
Inventories
Inventories 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 inventories to their present location and condition.
Inventories 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 inventories 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.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, 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.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position 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 trade and other receivables 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.
PROPERTY SUPPORT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
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.
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 trade and other payables, 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 payables 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 payables 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.
PROPERTY SUPPORT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.13
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
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 non-current 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.
PROPERTY SUPPORT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.17
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.
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.
3
Revenue
An analysis of the company's revenue is as follows:
2024
2023
£
£
Revenue analysed by class of business
Sales
28,484,521
28,039,580
2024
2023
£
£
Other revenue
Interest income
13,119
-
PROPERTY SUPPORT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Revenue
(Continued)
- 19 -
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
28,422,241
27,859,808
Spain
-
2,717
The Republic of Ireland
62,280
176,025
Holland
-
590
Others
-
440
28,484,521
28,039,580
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
11,046
(5,304)
Fees payable to the company's auditor for the audit of the company's financial statements
13,500
12,000
Depreciation of owned property, plant and equipment
149,337
167,330
(Profit)/loss on disposal of property, plant and equipment
-
906
Amortisation of intangible assets
1,032
1,032
Operating lease charges
396,554
289,457
Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to £11,046 (2023 - £5,304).
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Director
1
1
Office
29
27
Managers
34
32
Cleaners
1,088
1,070
Total
1,152
1,130
PROPERTY SUPPORT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 20 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
19,171,550
17,681,258
Social security costs
1,323,784
1,256,104
Pension costs
299,214
244,190
20,794,548
19,181,552
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
128,074
127,234
7
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
13,119
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
13,119
8
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on invoice finance arrangements
132,089
76,307
Other finance costs:
Interest on finance leases and hire purchase contracts
7,295
6,770
Other interest
18,033
(1,122)
157,417
81,955
9
Other gains and losses
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Gain/(loss) on financial assets held at fair value through profit or loss
117,617
(61,138)
PROPERTY SUPPORT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(114,605)
146,561
Adjustments in respect of prior periods
(37,837)
Total current tax
(152,442)
146,561
Deferred tax
Origination and reversal of timing differences
(114,069)
(5,357)
Total tax (credit)/charge
(266,511)
141,204
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(1,591,786)
637,155
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(397,947)
121,059
Tax effect of expenses that are not deductible in determining taxable profit
87,841
(2,585)
Unutilised tax losses carried forward
167,746
Adjustments in respect of prior years
(37,837)
Effect of change in corporation tax rate
36,189
Double tax relief
(5,880)
Permanent capital allowances in excess of depreciation
(8,434)
(3,870)
Deferred tax adjustments in respect of prior years
(114,069)
32,480
Taxation (credit)/charge for the year
(266,511)
141,204
11
Dividends
2024
2023
£
£
Final paid
97,000
160,000
PROPERTY SUPPORT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
12
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
20,721
Amortisation and impairment
At 1 April 2023
16,525
Amortisation charged for the year
1,032
At 31 March 2024
17,557
Carrying amount
At 31 March 2024
3,164
At 31 March 2023
4,196
13
Property, plant and equipment
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
883,396
250,413
93,175
1,226,984
Additions
140,097
38,011
178,108
At 31 March 2024
1,023,493
288,424
93,175
1,405,092
Depreciation and impairment
At 1 April 2023
467,294
209,245
27,953
704,492
Depreciation charged in the year
119,255
13,777
16,305
149,337
At 31 March 2024
586,549
223,022
44,258
853,829
Carrying amount
At 31 March 2024
436,944
65,402
48,917
551,263
At 31 March 2023
416,101
41,168
65,222
522,491
14
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
15
449,595
331,978
PROPERTY SUPPORT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
14
Fixed asset investments
(Continued)
- 23 -
Movements in non-current investments
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023
331,978
Valuation changes
117,617
At 31 March 2024
449,595
Carrying amount
At 31 March 2024
449,595
At 31 March 2023
331,978
15
Subsidiaries
These financial statements are separate company financial statements for Property Support Services (UK) Ltd.
Details of the company's subsidiaries at 31 March 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Property Support Services Inc.
United States of America
Contract cleaning
Ordinary
100.00
Property Support Services Deutschland GmbH
Germany
Contract cleaning
Ordinary
100.00
EURL Property Support Services France
France
Contract cleaning
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Property Support Services Inc.
338,858
(38,090)
Property Support Services Deutschland GmbH
98,000
EURL Property Support Services France
12,737
16
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at cost
7,250,795
5,723,447
Carrying amount of financial liabilities
Financial liabilities measured at cost
6,371,221
3,428,009
PROPERTY SUPPORT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
16
Financial instruments
(Continued)
- 24 -
Financial assets measured at cost
Financial assets that are debt instruments measured at cost comprise trade debtors, amounts owed by group undertakings and other debtors.
Financial liabilities measured at cost
Financial liabilities measured at cost comprise trade creditors and other creditors.
17
Inventories
2024
2023
£
£
Finished goods and goods for resale
148,000
127,000
18
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
6,563,539
4,765,308
Corporation tax recoverable
114,605
Amounts owed by group undertakings
516,129
715,859
Other receivables
171,127
242,280
Prepayments and accrued income
1,936,863
1,463,804
9,302,263
7,187,251
19
Current liabilities
2024
2023
Notes
£
£
Obligations under finance leases
21
32,657
40,987
Trade payables
2,259,853
1,806,785
Other creditors
39,235
26,832
Corporation tax
57,014
131,475
Other taxation and social security
1,363,525
1,146,633
Other payables
3,568,355
1,312,548
Accruals and deferred income
444,859
167,859
7,765,498
4,633,119
20
Non-current liabilities
2024
2023
Notes
£
£
Obligations under finance leases
21
26,262
72,998
PROPERTY SUPPORT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
21
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
32,657
37,653
In two to five years
26,262
76,332
58,919
113,985
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is two years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
22
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:
Liabilities
Liabilities
2024
2023
Balances:
£
£
ACAs
-
114,069
2024
Movements in the year:
£
Liability at 1 April 2023
114,069
Credit to profit or loss
(114,069)
Liability at 31 March 2024
-
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
299,214
244,190
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.
PROPERTY SUPPORT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
24
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
25
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
142,561
110,833
Between two and five years
168,365
121,831
310,926
232,664
26
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
672,000
595,000
Transactions with related parties
PROPERTY SUPPORT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
26
Related party transactions
(Continued)
- 27 -
The following amounts were outstanding at the reporting end date:
2024
Balance
Amounts owed by related parties
£
Entities with control, joint control or significant influence over the company
8,283
Entities over which the entity has control, joint control or significant influence
362,326
Other related parties
145,520
715,859
2023
Balance
Amounts owed in previous period
£
Entities with control, joint control or significant influence over the company
305,793
Entities over which the entity has control, joint control or significant influence
264,546
Other related parties
145,520
715,859
No guarantees have been given or received.
27
Directors' transactions
Interest free loans have been granted by the company to its directors as follows:
Description
Opening Balance
Amounts Advanced
Interest Charged
Amounts Repaid
Closing Balance
£
£
£
£
£
Mr Michael Rust -
45,764
-
-
(45,764)
-
45,764
-
-
(45,764)
-
28
Ultimate controlling party
The ultimate parent company is PSSG Group Limited, a company registered in England and Wales. The ultimate controlling party is M J RUST.
The following are the parents of the largest and smallest groups in which this company's results are consolidated:
Largest group
PSSG Group Ltd
Smallest group
N/A
The entity is consolidated into PSSG Group Limited Annual Consolidated Report.
PROPERTY SUPPORT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
29
Cash (absorbed by)/generated from operations
2024
2023
£
£
(Loss)/profit for the year after tax
(1,325,276)
495,951
Adjustments for:
Taxation (credited)/charged
(266,511)
141,204
Finance costs
157,417
81,955
Investment income
(13,119)
(Gain)/loss on disposal of property, plant and equipment
-
906
Amortisation and impairment of intangible assets
1,032
1,032
Depreciation and impairment of property, plant and equipment
149,337
167,330
Other gains and losses
(117,617)
61,138
Movements in working capital:
Increase in inventories
(21,000)
(22,000)
(Increase)/decrease in trade and other receivables
(2,046,171)
69,457
Increase/(decrease) in trade and other payables
3,215,170
(217,310)
Cash (absorbed by)/generated from operations
(266,738)
779,663
30
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
1,719,526
(732,070)
987,456
Obligations under finance leases
(113,985)
55,066
(58,919)
1,605,541
(677,004)
928,537
PROPERTY SUPPORT SERVICES UK LIMITED
MANAGEMENT INFORMATION
FOR THE YEAR ENDED 31 MARCH 2024
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