Company Registration No. 03911760 (England and Wales)
SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
COMPANY INFORMATION
Directors
A. Anderson
D. J. Ison
L. A. Harrison
R. A. Moody
(Appointed 24 September 2024)
Company number
03911760
Registered office
Unit 9A Meadway Court, Meadway Technology Park
Rutherford Close
Stevenage
Hertfordshire
SG1 2EF
United Kingdom
Auditor
HW Fisher Audit
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
Bankers
HSBC Bank Plc
Customer Service Centre
BX8 1HB
SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report for the year ended 30 June 2024.

Fair review of the business

ServiceTec is pleased to report another successful year.

 

ServiceTec Airport Services International Limited and its subsidiaries in Europe and North America supply airport-wide IT infrastructure support services. The Group typically engages multi-disciplined, inhouse information technology professionals to assist with the development of the design, strategy and management of complete IT systems and large-scale implementation projects.

 

The company's results for the year are set out in the attached financial statements.

 

During nearly 36 years of trading, the Group has created long, trusted relationships with many clients. With their focus on the airports market place, and by targeting certain sectors, the Directors believe the Group will be well placed to assist the Group's current and future clients as they align their IT with the projected needs of their businesses. Managed services are an increasing requirement for clients and the Directors feel confident that the Group can meet those needs with comprehensive solutions, a confidence supported by being able to offer quality reference sites.

 

The Directors believe that the Group continues to be well placed within its industry for growth and profit in future years. The Group ended the year with sufficient reserves and sufficient financial facilities to fund future investments and growth.

 

The Directors believe that the range of opportunities that present themselves to the Group during and after the year form a reliable basis upon which to anticipate growth of revenues and operating profits in future years. The opportunities arise throughout the world, with a particular focus on North America and EMEA.

 

During the year and subsequently, the Group renewed a number of contracts at some of the world’s key airports, which extended the forward order book beyond 2030. The Group maintains its long-held strategy of land-and-expand, to create future growth opportunities. During the year, operations in both the United States and EMEA increased in scope and revenues, widening our technical expertise, extending the range of IT platforms and technologies supported. During the year, the Group took orders from customers who subsequently delayed their proposed start dates. These now look likely to benefit the Group from 2025 onwards.

 

During the year, the Group maintained its existing ISO accreditations and continued to expand its service management system. The Group's management system equips management with the resilience necessary to manage the increased number of sites, customers, employees and opportunities that the Group has won during the year.

 

The Group's growth demands recruitment of high-calibre individuals to maintain the strong ethos of professionalism, technical excellence, flexibility, reliability, and dependability of service that the Group's customers need in their always-busy airport environments. The Directors recognise that the Group is fortunate to have dedicated, skilful, highly-motivated and loyal staff throughout Europe and the Americas. The sense of duty with which the staff service customers is a defining hallmark of ServiceTec culture that the staff themselves have actively encouraged, and it permits the Group to claim that ServiceTec safeguards its customers' reputations and protects its customers' revenues. Amongst the Board of Directors, there were two changes after the year. Richard Moody joined the Board of Directors on 24 September 2024. On 20 October 2024, the Board was deeply saddened to lose its long-term colleague, friend and mentor Bryan Mills. The Directors would like to take this opportunity to express their most sincere thanks to all employees in the ServiceTec family.

 

The Directors will continue to invest strategically in initiatives which they consider to be in the interests of the long-term future of the group.

SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Principal risks and uncertainties

The Directors recognise that within the business there are a number of risks which may affect the performance of the Group. These risks are subject to regular review and where appropriate processes are established to minimise the level of exposure.

 

Markets

Successful implementation of the Group's business model depends upon the viability of the airport sector, itself dependent largely upon the airline sector. Being an independent specialist, the Group is able to offer its customers a range of services, which can provide sizable economies of scale. The Directors consider this gives the Group a competitive advantage.

 

Operations

Business continuity is the principal risk to the Group's operations. As a highly diversified business in terms of number of different locations, the Group has structured its service delivery to be as local to the site as possible, its revenue generating overheads to be mobile (specifically, not based at a single location) and has the lowest possible number of staff at each of its two head offices. The Group’s management is geographically distributed. The Group has had for a number of years a policy of distributed IT systems to ensure no single point of failure. The Group’s policy of health & safety remains at the centre of the Group’s operations, reinforced by the Group's training programme.

 

Financial

To finance its operations, the Group uses various financial instruments. The most significant such instruments are cash, trade debtors and trade creditors. The Group engages in no derivative transactions.

 

The Directors review the policies by which they manage financial risks. The principal policies are as follows.

 

Liquidity - The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

 

Currency - The Group manages translation and foreign exchange risk. To the maximum extent possible, the Group holds cash in the same currency in which its turnover arises to minimise the risk of transactional foreign exchange risk.

 

Credit - The Group's principal financial assets are cash and trade debtors. The Group's principal banker is HSBC Bank plc. The Group reduces its risk arising from trade debtors by contractual terms. The Group assesses each customer's credit risk by reference to its payment history, its ownership and references from third party sources.

 

Interest rate - The Group finances its operations through a mixture of retained profits, finance leases, credit lines and credit cards.

Key performance indicators

The Directors consider that the key performance indicators of the development, performance or position of the business relate primarily to the financial results of the group, which are disclosed in these financial statements.

On behalf of the board

A. Anderson
Director
7 March 2025
SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company continues to be the supply of IT Infrastructure support services, including managing, supporting and maintaining all IT networks and systems in an airport environment.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £1,000,000. 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:

A. Anderson
D. J. Ison
B. E. Mills
(Deceased 20 October 2024)
L. A. Harrison
R. A. Moody
(Appointed 24 September 2024)
The directors are also directors of the ultimate parent company.
Financial risk managment

The company has set out its policy on financial instruments/financial risk management in the strategic 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.

On behalf of the board
A. Anderson
Director
7 March 2025
SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -

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:

 

 

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.

SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
- 5 -
Opinion

We have audited the financial statements of Servicetec Airport Services International Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our 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:

SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF SERVICETEC AIRPORT SERVICES INTERNATIONAL 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 and the directors' report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

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.

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.

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.

As part of our planning process:

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
- 7 -

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.

Use of our report

This report is made solely to the company's member 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 member 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 member for our audit work, for this report, or for the opinions we have formed.

 

 

Gilles Siow (Senior Statutory Auditor)
For and on behalf of HW Fisher Audit
Chartered Accountants
Statutory Auditor
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
7 March 2025
SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
1,890,500
1,895,148
Cost of sales
(1,200,421)
(1,163,418)
Gross profit
690,079
731,730
Distribution costs
(207,862)
(198,642)
Administrative expenses
(635,889)
(658,586)
Operating loss
4
(153,672)
(125,498)
Interest receivable and similar income
6
1,191,422
182
Interest payable and similar expenses
7
(2,422)
(1,918)
Profit/(loss) before taxation
1,035,328
(127,234)
Tax on profit/(loss)
8
-
0
-
0
Profit/(loss) for the financial year
1,035,328
(127,234)

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

SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
6,227
11,855
Investments
11
738,458
738,458
744,685
750,313
Current assets
Debtors
13
1,085,847
584,859
Cash at bank and in hand
1,768
247,764
1,087,615
832,623
Creditors: amounts falling due within one year
14
(1,134,622)
(1,161,168)
Net current liabilities
(47,007)
(328,545)
Total assets less current liabilities
697,678
421,768
Creditors: amounts falling due after more than one year
15
(552)
(1,586)
Accruals and deferred income
17
(391,446)
(399,830)
Net assets
305,680
20,352
Capital and reserves
Called up share capital
19
260,000
10,000
Profit and loss reserves
45,680
10,352
Total equity
305,680
20,352
The financial statements were approved by the board of directors and authorised for issue on 7 March 2025 and are signed on its behalf by:
L. A. Harrison
Director
Company Registration No. 03911760
SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
10,000
137,586
147,586
Year ended 30 June 2023:
Loss and total comprehensive income for the year
-
(127,234)
(127,234)
Balance at 30 June 2023
10,000
10,352
20,352
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
1,035,328
1,035,328
Issue of share capital
19
250,000
-
250,000
Dividends
9
-
(1,000,000)
(1,000,000)
Balance at 30 June 2024
260,000
45,680
305,680
SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
1
Accounting policies
Company information

Servicetec Airport Services International Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 9A Meadway Court, Meadway Technology Park, Rutherford Close, Stevenage, Hertfordshire, United Kingdom, SG1 2EF.

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 on the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of ServiceTec Global Services Limited. These consolidated financial statements are available from its registered office, Unit 9A Meadway Court, Meadway Technology Park, Rutherford Close, Stevenage, Hertfordshire, United Kingdom, SG1 2EF.

1.2
Going concern

The directors are confident that with the ongoing support of the parent company, the company can continue as a going concern for the period of at least twelve months from the date of approval of these financial statements. The directors have a reasonable expectation that with the support of the parent company, there are adequate resources for the company to continue in operation for the foreseeable future. Therefore the directors continued to adopt the going concern basis in preparing these financial statements.true

1.3
Turnover

Turnover comprises the invoiced amount of goods sold and services provided during the year, stated net of Value Added Tax attributable entirely to the principal activity of the company as disclosed in the Directors' Report.

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 for the provision of support services is recognised in accordance with the service level terms defined in the contracts or as agreed with the customer.

1.4
Tangible fixed assets

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

SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings & equipment
Over 3 - 5 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Fixed asset investments

Interests in subsidiaries 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.

1.6
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.

1.7
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand.

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. Financial assets classified as receivable within one year are not amortised.

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.

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.

SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and amounts from fellow group companies, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable.

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.

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.

SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.12
Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable 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.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the standard rates of exchange set by the company at the start of the reporting period. At the end of the reporting period, for items in the profit and loss, these translated amounts are compared to the client's average rate for the year and subsequently revalued. Any gains or losses arising on the revaluation are included in the profit or loss for the period.

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.

 

The directors believe there are no any key sources of estimation uncertainty.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Recovery of intercompany debtor

It is management's judgement that an intercompany debtor of £33,904 will be recoverable based on the budgeted growth and long term trading opportunities in the country.

SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Fees receivable from services
1,841,236
1,841,558
Sales of goods
49,264
53,590
1,890,500
1,895,148
2024
2023
£
£
Other significant revenue
Interest income
-
182
Dividends received
1,191,422
-
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
1,890,500
1,895,148
4
Operating loss
2024
2023
Operating loss for the year is stated after charging:
£
£
Exchange differences
22,839
28,667
Fees payable to the company's auditor for the audit of the company's financial statements
8,864
11,039
Depreciation of tangible fixed assets
5,628
6,115
Operating lease charges
41,860
41,399
5
Employees

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

2024
2023
Number
Number
Engineering
35
35
Sales and distribution
1
1
Administration
7
7
Total
43
43
SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
5
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,525,199
1,507,814
Social security costs
136,121
138,513
Pension costs
37,592
36,527
1,698,912
1,682,854
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
-
0
182
Income from fixed asset investments
Income from shares in group undertakings
1,191,422
-
0
Total income
1,191,422
182
7
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
2,422
1,918
SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
8
Taxation

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

2024
2023
£
£
Profit/(loss) before taxation
1,035,328
(127,234)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
258,832
(26,083)
Tax effect of expenses that are not deductible in determining taxable profit
94
379
Change in unrecognised deferred tax assets
38,930
32,825
Permanent capital allowances in excess of depreciation
-
0
(188)
Effect of overseas tax rates
-
0
(5,914)
Dividend income
(297,856)
-
0
Deferred tax movements
-
0
(1,019)
Taxation charge for the year
-
-
9
Dividends
2024
2023
£
£
Interim paid
1,000,000
-
0
10
Tangible fixed assets
Fixtures, fittings & equipment
£
Cost
At 1 July 2023 and 30 June 2024
101,996
Depreciation and impairment
At 1 July 2023
90,141
Depreciation charged in the year
5,628
At 30 June 2024
95,769
Carrying amount
At 30 June 2024
6,227
At 30 June 2023
11,855
SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
738,458
738,458
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 July 2023 & 30 June 2024
738,458
Carrying amount
At 30 June 2024
738,458
At 30 June 2023
738,458
12
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office key
shares held
Direct
Indirect
SASI Airport Services Ltd
4
Provision of IT support services in the airport industry
Ordinary
0
100.00
ServiceTec Airport Operations Germany GmbH
1
Provision of IT support services in the airport industry
Ordinary
100.00
0
ServiceTec Airport Operations Netherlands BV
2
Provision of IT infrastructure support services
Ordinary
100.00
0
ServiceTec Airport Operations Norway AS
3
Provision of IT support services in the airport industry
Ordinary
100.00
0
ServicTec International Inc.
5
Provision of IT support services in the airport industry
Ordinary
100.00
0
Registered Office addresses:
1
c/o Warth & Klein Grant Thornton, Ganghoferstrasse 31, 80339 München, Germany
2
Vertrekpassage 3, Terminal-West Kamer C636-640, 1118AP Schiphol, Netherlands
3
c/o Nitschke Consult AS, Vollsveien 17B, Grantoss Business Park, Lysaker, Norway
4
510 West Georgia Street, Suite 1800, Vancouver, British Columbia, V6B 0M3, Canada
5
950 Herndon Parkway, Suite 380, Herndon 20170, VA, United States of America

The company owns each of its subsidiaries in full and, where applicable, intermediate holding companies hold their direct subsidiaries in full.

SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
188,716
15,295
Amounts owed by group undertakings
743,151
284,069
Other debtors
10,164
10,164
Prepayments and accrued income
143,816
275,331
1,085,847
584,859
14
Creditors: amounts falling due within one year
2024
2023
£
£
Bank overdrafts
16
115,436
-
0
Obligations under finance leases
1,034
939
Trade creditors
40,684
129,682
Amounts owed to group undertakings
821,609
749,041
Other taxation and social security
110,902
107,731
Other creditors
44,957
173,775
1,134,622
1,161,168

 

15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
552
1,586
16
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
115,436
-
0
Payable within one year
115,436
-
0

ServiceTec Airport Services International Limited is party to a joint bank overdraft facility agreement with several fellow group undertakings. Fixed and floating charges over the company's assets exist as security to the bank.

SERVICETEC AIRPORT SERVICES INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
17
Accruals and deferred income
2024
2023
£
£
Accruals and deferred income
391,446
399,830
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
37,592
36,527

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
260,000
10,000
260,000
10,000

During the year, the company increased its share capital base by £250,000.

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
16,940
35,042
Between two and five years
-
0
16,940
16,940
51,982
21
Controlling party

The company's ultimate parent company and controlling entity is ServiceTec Global Services Limited incorporated in England and Wales. Its registered office is Unit 9a Meadway Court, Meadway Technology Park, Rutherford Close, Stevenage, Hertfordshire, SG1 2EF. Copies of the financial statements for this company and the group can be obtained from Companies House public registry. It is the largest entity in which the results of the company are consolidated.

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