Company registration number 04778608 (England and Wales)
ASCOT SERVICES UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
ASCOT SERVICES UK LIMITED
COMPANY INFORMATION
Directors
S A Ashurst
J L Cunliffe
A P Worsfold
E L Wallbank
Secretary
A L Ashurst
Company number
04778608
Registered office
Kestrel House
Gibfield Park Avenue
Atherton
Manchester
M46 0SU
Auditor
Chadwick & Company (Manchester) Limited
Chartered Accountants
Statutory Auditors
Capital House
272 Manchester Road
Droylsden
Manchester
M43 6PW
Business address
Kestrel House
Gibfield Park Avenue
Atherton
Manchester
M46 OSU
Bankers
The Royal Bank of Scotland plc
Customer Service Centre
Drummond House
1 Redheughs Avenue
Edinburgh
EH12 9JN
The Co-Operative Bank Plc
PO Box 250
Delf House
Southway
Skelmersdale
Lancashire
WN8 6GH
ASCOT SERVICES UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of income and retained earnings
9
Balance sheet
10
Statement of cash flows
11
Notes to the financial statements
12 - 26
ASCOT SERVICES UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -
The directors present the strategic report for the year ended 31 May 2024.
Fair review of the business
During the year, the turnover of the company increased by 5.8% to £13.43 million. The gross profit margin is consistent at 14.9% (2023 - 14.9%) as the company monitored and kept control over its cost base.
The company continues to monitor Key Performance Indicators and overheads to ensure that the costs of the business are controlled and to ensure that the company is well placed in the market. The company continues to invest in its infrastructure so that it can continue to maintain and improve the service that it provides to its customers.
Key performance indicators
The company's key financial performance indicators include:
2024 2023
£'000's £'000's
Sales 13,433 12,694
Gross Profit 2,005 1,897
Work in Progress 213 162
At the year end, the company had shareholders' funds of £2,052,747 including distributable profits of £2,052,745. The directors therefore believe the company’s position to be satisfactory especially as the company’s net current assets exceed its current liabilities by £1,546,531.
The company's key non financial performance indicators are to:
Maintain existing turnover and margin whilst delivering and exceeding its client SLA's;
Development and retention of employees across all business areas;
Continual development and innovation within our market to improve employee and customer experience; and
Strategic growth with client partners
Principal risks and uncertainties
The continued strategy is to limit exposure to any individual area of business to a reasonable level in order to reduce the risk to the future of the company. The company continues to expand upon its range of customers which is considered important to maintain a secure future.
The company is in a strong position to utilise its expertise and reputation to exploit opportunities in their markets and looks to the future with confidence.
ASCOT SERVICES UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
Credit Risk
All customers who wish to trade on credit terms are subject to credit verification procedures. Robust credit controls in place ensure trade debtors are monitored on an ongoing basis using credit limits to minimise its exposure to external credit risk.
Interest Rate Risk
The company's borrowings during the year were principally the property bank loan. Financial liabilities, interest charges and cash flows can be affected by the movements in interest rates.
Development and performance
The directors expect the company to maintain a steady turnover in 2024/2025. It is the intention to expand the business over the coming years in line with the company's strategic growth plan.
S A Ashurst
Director
24 February 2025
ASCOT SERVICES UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 May 2024.
Principal activities
The principal activity of the company continued to be that of building services and facilities management.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £445,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
S A Ashurst
J L Cunliffe
A P Worsfold
E L Wallbank
Auditor
In accordance with the company's articles, a resolution proposing that Chadwick & Company (Manchester) Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
ASCOT SERVICES UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 4 -
Disclosure of information in the 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. It has done so in respect of Financial Risk Management Objectives and Policies.
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.
Fixed assets
In the opinion of the directors, the current market value of the company's freehold land and buildings is approximately £600,000 which is in excess of its net book value of £313,794 as shown within the financial statements.
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
S A Ashurst
Director
24 February 2025
ASCOT SERVICES UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ASCOT SERVICES UK LIMITED
- 5 -
Opinion
We have audited the financial statements of Ascot Services UK Limited (the 'company') for the year ended 31 May 2024 which comprise the statement of income and retained earnings, the balance sheet, 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 May 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
ASCOT SERVICES UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ASCOT SERVICES UK LIMITED
- 6 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
ASCOT SERVICES UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ASCOT SERVICES UK LIMITED
- 7 -
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
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
At the planning stage of the audit we gain an understanding of the laws and regulations which apply to the company and how management seek to comply with them. This helps us to make appropriate risk assessments.
During the audit we focus on relevant risk areas and review compliance with laws and regulations through making relevant enquiries and corroboration.
We assess the risk of material misstatement in the financial statements including as a result of fraud and undertake procedures including:
I. Review of controls set in place by management
II. Enquiry of management as to whether they consider fraud or other irregularities may have occurred or where such opportunity might exist
III. Challenge of management assumptions with regard to accounting estimates
IV. Identification and testing of journal entries, particularly those which may appear to be unusual
by size or nature.
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 regulations. 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, international omissions, misrepresentations, or the override of internal control.
ASCOT SERVICES UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ASCOT SERVICES UK LIMITED
- 8 -
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.
Michael Royle BA(Hons)FCA (Senior Statutory Auditor)
For and on behalf of Chadwick & Company (Manchester) Limited
Chartered Accountants
Statutory Auditors
Capital House
272 Manchester Road
Droylsden
Manchester
M43 6PW
24 February 2025
ASCOT SERVICES UK LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
13,433,174
12,693,691
Cost of sales
(11,427,884)
(10,796,156)
Gross profit
2,005,290
1,897,535
Administrative expenses
(1,402,634)
(1,312,716)
Operating profit
4
602,656
584,819
Interest payable and similar expenses
7
(16,141)
(15,406)
Profit before taxation
586,515
569,413
Tax on profit
8
(154,316)
(115,803)
Profit for the financial year
432,199
453,610
Retained earnings brought forward
2,065,546
1,963,936
Dividends
9
(445,000)
(352,000)
Retained earnings carried forward
2,052,745
2,065,546
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ASCOT SERVICES UK LIMITED
BALANCE SHEET
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
587,420
627,127
Current assets
Stocks
11
212,719
161,674
Debtors
12
1,828,503
3,489,231
Cash at bank and in hand
2,113,020
1,573,810
4,154,242
5,224,715
Creditors: amounts falling due within one year
13
(2,607,711)
(3,593,234)
Net current assets
1,546,531
1,631,481
Total assets less current liabilities
2,133,951
2,258,608
Creditors: amounts falling due after more than one year
14
(20,924)
(127,039)
Provisions for liabilities
Deferred tax liability
17
60,280
66,021
(60,280)
(66,021)
Net assets
2,052,747
2,065,548
Capital and reserves
Called up share capital
19
2
2
Profit and loss reserves
2,052,745
2,065,546
Total equity
2,052,747
2,065,548
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 24 February 2025 and are signed on its behalf by:
S A Ashurst
J L Cunliffe
Director
Director
Company registration number 04778608 (England and Wales)
ASCOT SERVICES UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,246,395
281,852
Interest paid
(16,141)
(15,406)
Income taxes paid
(120,762)
(35,571)
Net cash inflow from operating activities
1,109,492
230,875
Investing activities
Purchase of tangible fixed assets
(33,829)
(21,620)
Proceeds from disposal of tangible fixed assets
825
8,616
Net cash used in investing activities
(33,004)
(13,004)
Financing activities
Repayment of bank loans
(18,737)
(15,437)
Payment of finance leases obligations
(73,541)
(66,488)
Dividends paid
(445,000)
(352,000)
Net cash used in financing activities
(537,278)
(433,925)
Net increase/(decrease) in cash and cash equivalents
539,210
(216,054)
Cash and cash equivalents at beginning of year
1,573,810
1,789,864
Cash and cash equivalents at end of year
2,113,020
1,573,810
ASCOT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
1
Accounting policies
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
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
ASCOT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 13 -
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.
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:
Freehold buildings
2.5% per annum on cost
Plant and equipment
33% per annum straight line
Fixtures and fittings
15% per annum net book value
Computers
20% per annum straight line
Motor vehicles
25% per annum net book value
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Freehold land is not depreciated.
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.
ASCOT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 14 -
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.
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.
1.7
Cash at bank and in hand
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.
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.
ASCOT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 15 -
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.
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.
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.
ASCOT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 16 -
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 profit and loss account, 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.
1.11
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
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 balance sheet 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.
ASCOT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 17 -
1.14
Company information
Ascot Services UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kestrel House, Gibfield Park Avenue, Atherton, Manchester, M46 0SU.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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
Turnover
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
13,433,174
12,693,691
Turnover is derived from the company's principal trading activities of building services and facilities management.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
11,500
13,200
Depreciation of owned tangible fixed assets
58,206
51,265
Depreciation of tangible fixed assets held under finance leases
35,907
41,060
Loss/(profit) on disposal of tangible fixed assets
878
(35)
Operating lease charges
69,052
84,225
ASCOT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 18 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration, management and operatives
126
81
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
4,280,539
2,904,871
Social security costs
395,113
320,000
Pension costs
82,672
65,051
4,758,324
3,289,922
ASCOT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 19 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
214,780
200,417
Company pension contributions to defined contribution schemes
1,666
2,107
216,446
202,524
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
91,945
86,062
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
6,109
7,063
Other finance costs:
Interest on finance leases and hire purchase contracts
10,032
8,343
16,141
15,406
ASCOT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 20 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
160,057
120,762
Deferred tax
Origination and reversal of timing differences
(5,741)
(4,959)
Total tax charge
154,316
115,803
From 1 April 2023 the corporation tax rate for larger businesses increased to 25%.
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
586,515
569,413
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
146,629
113,883
Tax effect of expenses that are not deductible in determining taxable profit
4,513
2,965
Permanent capital allowances in excess of depreciation
3,174
(1,045)
Taxation charge for the year
154,316
115,803
9
Dividends
2024
2023
£
£
Interim paid
445,000
352,000
ASCOT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 21 -
10
Tangible fixed assets
Freehold buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 June 2023
408,660
25,654
121,064
113,379
316,423
985,180
Additions
10,491
23,339
22,279
56,109
Disposals
(4,296)
(10,096)
(14,392)
At 31 May 2024
408,660
36,145
121,064
132,422
328,606
1,026,897
Depreciation and impairment
At 1 June 2023
86,400
19,730
50,917
70,532
130,474
358,053
Depreciation charged in the year
8,466
5,895
17,951
18,470
43,331
94,113
Eliminated in respect of disposals
(4,146)
(8,543)
(12,689)
At 31 May 2024
94,866
25,625
68,868
84,856
165,262
439,477
Carrying amount
At 31 May 2024
313,794
10,520
52,196
47,566
163,344
587,420
At 31 May 2023
322,260
5,924
70,147
42,847
185,949
627,127
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
137,469
171,612
11
Stocks
2024
2023
£
£
Work in progress
212,719
161,674
ASCOT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 22 -
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,754,834
3,403,928
Other debtors
147
Prepayments and accrued income
73,669
85,156
1,828,503
3,489,231
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
15
109,363
22,501
Obligations under finance leases
16
64,823
115,568
Trade creditors
1,439,240
2,488,101
Corporation tax
160,057
120,762
Other taxation and social security
387,233
351,355
Other creditors
23,161
11,866
Accruals and deferred income
423,834
483,081
2,607,711
3,593,234
Obligations under finance lease and hire purchase contracts are secured on the assets on which they relate to.
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
105,599
Obligations under finance leases
16
20,924
21,440
20,924
127,039
Obligations under finance lease and hire purchase contracts are secured on the assets on which they relate to.
ASCOT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 23 -
15
Loans and overdrafts
2024
2023
£
£
Bank loans
109,363
128,100
Payable within one year
109,363
22,501
Payable after one year
105,599
The bank loan is secured by a legal charge on the company's freehold land and building. The bank loan was repaid after the year end.
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
64,823
115,568
In two to five years
20,924
21,440
85,747
137,008
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 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
ASCOT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 24 -
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
60,280
66,021
2024
Movements in the year:
£
Liability at 1 June 2023
66,021
Credit to profit or loss
(5,741)
Liability at 31 May 2024
60,280
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
82,672
65,051
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.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
ASCOT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 25 -
20
Operating lease commitments
Lessee
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
22,113
65,819
Between two and five years
2,191
24,304
24,304
90,123
21
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
216,446
202,524
22
Directors' transactions
Included in other creditors are directors' loan accounts due from the company amounting to £462 (2023: £191). The maximum amount owed to the company during the year was £121,704. No interest was paid on these loans in the period.
23
Ultimate controlling party
The company is controlled by Mr S A Ashurst and Mr J L Cunliffe, directors of the company, by virtue of their owning 100% of the issued share capital of the company.
ASCOT SERVICES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 26 -
24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
432,199
453,610
Adjustments for:
Taxation charged
154,316
115,803
Finance costs
16,141
15,406
Loss/(gain) on disposal of tangible fixed assets
878
(35)
Depreciation and impairment of tangible fixed assets
94,113
92,325
Movements in working capital:
(Increase)/decrease in stocks
(51,045)
37,730
Decrease/(increase) in debtors
1,660,728
(1,736,710)
(Decrease)/increase in creditors
(1,060,935)
1,303,723
Cash generated from operations
1,246,395
281,852
25
Analysis of changes in net funds
1 June 2023
Cash flows
New finance leases
31 May 2024
£
£
£
£
Cash at bank and in hand
1,573,810
539,210
-
2,113,020
Borrowings excluding overdrafts
(128,100)
18,737
-
(109,363)
Obligations under finance leases
(137,008)
73,541
(22,280)
(85,747)
1,308,702
631,488
(22,280)
1,917,910
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