Company Registration No. 04936619 (England and Wales)
SERVICETEC GLOBAL SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
SERVICETEC GLOBAL SERVICES LIMITED
COMPANY INFORMATION
Directors
A. Anderson
D. J. Ison
L. A. Harrison
A. P. Inkester
R. A. Moody
(Appointed 24 September 2024)
Secretary
L. A. Harrison
Company number
04936619
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 GLOBAL SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 31
SERVICETEC GLOBAL SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Principal activities and review of the business
ServiceTec is pleased to report another successful year.
ServiceTec Global Services 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 results for the year are set out in the attached financial statements.
During nearly 36 years of trading, the ServiceTec 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 GLOBAL SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Principal risks and uncertainties facing the business
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.
A. Anderson
Director
7 March 2025
SERVICETEC GLOBAL SERVICES 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.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £800,000. The directors do not recommend payment of a further 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
L. A. Harrison
B. E. Mills
(Retired 20 October 2024)
A. P. Inkester
R. A. Moody
(Appointed 24 September 2024)
Financial risk management
The truegroup 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 auditor of the company 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 auditor of the company is aware of that information.
On behalf of the board
A. Anderson
Director
7 March 2025
SERVICETEC GLOBAL SERVICES 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 group and company, and of the profit or loss of the group 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 on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
SERVICETEC GLOBAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SERVICETEC GLOBAL SERVICES LIMITED
- 5 -
Opinion
We have audited the financial statements of Servicetec Global Services Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2024 and of the group's 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our 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.
SERVICETEC GLOBAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SERVICETEC GLOBAL SERVICES LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent 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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' 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 parent 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:
We enquired of management the systems and controls the group has in place, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The group did not inform us of any known, suspected or alleged fraud.
We obtained an understanding of the legal and regulatory frameworks applicable to the group. We determined that the following were most relevant: FRS 102 and Companies Act 2006.
We considered the incentives and opportunities that exist in the group, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated.
Using our knowledge of the group, together with the discussions held with the group at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
Identifying and testing journal entries and the overall accounting records, in particular any that were significant and unusual.
Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
Testing key revenue lines, in particular cut-off, for evidence of management bias.
Obtaining third-party confirmation of bank balances.
Reviewing documentation such as the group board minutes.
Testing all material consolidation adjustments.
Documenting and verifying all significant related party balances and transactions.
SERVICETEC GLOBAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SERVICETEC GLOBAL SERVICES LIMITED
- 7 -
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.
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.
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.
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 GLOBAL SERVICES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
13,443,455
12,885,450
Cost of sales
(8,431,242)
(7,811,774)
Gross profit
5,012,213
5,073,676
Distribution costs
(849,054)
(779,513)
Administrative expenses
(3,817,596)
(4,057,760)
Other operating income
29,525
14,434
Operating profit
4
375,088
250,837
Interest receivable and similar income
8
56,086
53,556
Interest payable and similar expenses
9
(34,272)
(16,182)
Fair value gain on financial instruments
10
198,853
158,804
Profit before taxation
595,755
447,015
Tax on profit
11
(217,891)
(239,234)
Profit for the financial year
377,864
207,781
Other comprehensive income
Currency translation differences
40,239
(72,808)
Total comprehensive income for the year
418,103
134,973
Total comprehensive income for the year is all attributable to the owners of the parent company.
The Group Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
SERVICETEC GLOBAL SERVICES LIMITED
GROUP BALANCE SHEET
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
13
286,372
458,885
Other intangible assets
13
18,956
18,956
Total intangible assets
305,328
477,841
Tangible assets
14
25,992
45,750
331,320
523,591
Current assets
Debtors
18
2,152,782
2,162,307
Investments
19
1,012,257
1,279,370
Cash at bank and in hand
821,107
1,365,023
3,986,146
4,806,700
Creditors: amounts falling due within one year
20
(835,654)
(1,253,862)
Net current assets
3,150,492
3,552,838
Total assets less current liabilities
3,481,812
4,076,429
Creditors: amounts falling due after more than one year
21
(1,807)
(13,007)
Accruals and deferred income
25
(973,263)
(1,254,834)
Net assets
2,506,742
2,808,588
Capital and reserves
Called up share capital
28
749
749
Other reserves
29
(30,841)
(30,841)
Profit and loss reserves
2,536,834
2,838,680
Total equity
2,506,742
2,808,588
The financial statements were approved by the board of directors and authorised for issue on
7 March 2025
07 March 2025
and are signed on its behalf by:
L. A. Harrison
Director
SERVICETEC GLOBAL SERVICES LIMITED
COMPANY BALANCE SHEET
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
13
18,956
18,956
Tangible assets
14
2,458
1,041
Investments
15
958,693
708,693
980,107
728,690
Current assets
Debtors
18
272,609
247,126
Cash at bank and in hand
65,648
7,530
338,257
254,656
Creditors: amounts falling due within one year
20
(869,704)
(717,436)
Net current liabilities
(531,447)
(462,780)
Total assets less current liabilities
448,660
265,910
Accruals and deferred income
25
(12,810)
(13,201)
Net assets
435,850
252,709
Capital and reserves
Called up share capital
28
749
749
Profit and loss reserves
435,101
251,960
Total equity
435,850
252,709
As permitted by s408 Companies Act 2006, the Company has not presented its own profit and loss account and related notes. The Company’s profit for the year was £983,141 (2023: Loss of £165,223).
The financial statements were approved by the board of directors and authorised for issue on
7 March 2025
07 March 2025
and are signed on its behalf by:
L. A. Harrison
Director
Company Registration No. 4936619
SERVICETEC GLOBAL SERVICES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022
749
(30,841)
2,928,691
2,898,599
Year ended 30 June 2023:
Profit for the year
-
-
207,781
207,781
Other comprehensive income:
Currency translation differences
-
-
(72,808)
(72,808)
Total comprehensive income for the year
-
-
134,973
134,973
Dividends
12
-
-
(224,984)
(224,984)
Balance at 30 June 2023
749
(30,841)
2,838,680
2,808,588
Year ended 30 June 2024:
Profit for the year
-
-
377,864
377,864
Other comprehensive income:
Currency translation differences
-
-
40,239
40,239
Total comprehensive income for the year
-
-
418,103
418,103
Dividends
12
-
-
(719,949)
(719,949)
Balance at 30 June 2024
749
(30,841)
2,536,834
2,506,742
SERVICETEC GLOBAL SERVICES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
749
667,183
667,932
Year ended 30 June 2023:
Loss and total comprehensive income for the year
-
(165,223)
(165,223)
Dividends
12
-
(250,000)
(250,000)
Balance at 30 June 2023
749
251,960
252,709
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
983,141
983,141
Dividends
12
-
(800,000)
(800,000)
Balance at 30 June 2024
749
435,101
435,850
SERVICETEC GLOBAL SERVICES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
32
(258,989)
525,026
Interest paid
(34,272)
(16,182)
Income taxes paid
(130,577)
(426,031)
Net cash (outflow)/inflow from operating activities
(423,838)
82,813
Investing activities
Purchase of tangible fixed assets
(7,305)
(13,173)
Purchase of current asset investments
(331,646)
(431,897)
Proceeds on disposal of investments
761,826
199,453
Interest received
334
786
Dividends received
55,752
52,770
Net cash generated from/(used in) investing activities
478,961
(192,061)
Financing activities
Payment of finance leases obligations
(4,970)
(4,619)
Dividends paid to equity shareholders
(719,949)
(224,984)
Net cash used in financing activities
(724,919)
(229,603)
Net decrease in cash and cash equivalents
(669,796)
(338,851)
Cash and cash equivalents at beginning of year
1,365,023
1,732,350
Effect of foreign exchange rates
76,092
(28,476)
Cash and cash equivalents at end of year
771,319
1,365,023
Relating to:
Cash at bank and in hand
821,107
1,365,023
Bank overdrafts included in creditors payable within one year
(49,788)
-
SERVICETEC GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
1
Accounting policies
Company information
ServiceTec Global Services Limited (“the Company”) is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is Unit 9A Meadway Court, Meadway Technology Park, Rutherford Close, Stevenage, Hertfordshire, United Kingdom, SG1 2EF.
The Group consists of ServiceTec Global Services Limited and all of its subsidiaries.
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 Group and the Company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared on the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The 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 for parent company information presented within the consolidated financial statements:
Section 7 'Statement of Cash Flows': Presentation of a statement of cash flow and related notes and disclosures;
Section 11' Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues': Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 'Related Party Disclosures': Compensation for key management personnel.
1.2
Basis of consolidation
The consolidated financial statements incorporate those of ServiceTec Global Services Limited and all of its subsidiaries (i.e. entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
All financial statements are made up to 30 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the Group.
1.3
Going concern
At the time of approving these financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors rationale for this expectation is summarised within the strategic report. Thus the directors continue to adopt the going concern basis of accounting in preparing these financial statements.
1.4
Turnover
Turnover comprises the net 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 Group as disclosed in the Strategic Report.
SERVICETEC GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
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.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life of 20 years. Please see further detail of this consideration in note 2.
Goodwill is reviewed by management on an annual basis for any evidence of impairment, or more frequently when there is an indication that impairment may be required.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
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 to 10 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 recognised in the profit and loss account.
1.8
Fixed asset investments
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.9
Impairment of fixed assets
At each reporting end date, the Group 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 Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
SERVICETEC GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
1.10
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 and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The Group 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 Group's statement of financial position when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
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 group 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 Group after deducting all of its liabilities.
Basic financial liabilities, including trade and other payables, bank loans and loans from group companies, are initially recognised at transaction price.
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. Accounts 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
SERVICETEC GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
1.12
Equity instruments
Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
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 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 Group’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 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 if, and only if, there is 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 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 Group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Certain Group companies contribute to a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
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 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 leased asset are consumed.
SERVICETEC GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
1.17
Government grants
Government grants, which include amounts received under programmes in a number of countries intending to support on-going employment during lockdowns and amounts received from local authority grants, are recognised at the fair value of the grant received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
1.18
Foreign exchange
The results of overseas subsidiary undertakings are translated at the average rates applying during the year. The closing balance sheets of overseas subsidiary undertakings and foreign currency assets and liabilities are translated at the year-end rates. Exchange differences arising from the re-statement of opening balance sheets and results of overseas subsidiary undertakings to closing rates are dealt with through reserves. All other exchange differences are dealt with through the profit and loss account.
1.19
Sales commission
The sales team's commission arises on the first invoicing of a successful sale. The cost of the commission is recognised over the duration of the contract won. The commission is paid to the employee on an agreed timescale following the first invoicing of the successful sale. There is a mechanism to account for events subsequent to the successful sale that might result in a reduction or a repayment of commission payable. The amount paid to the employee is therefore treated as an advanced payment of commission and disclosed as prepayments.
2
Judgements and key sources of estimation uncertainty
In the application of the Group’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.
Critical judgements
Goodwill
The directors determine that goodwill has a finite useful economic life of 20 years from February 2006. Goodwill is amortised on a systematic basis over its finite useful life.
3
Turnover
An analysis of the group's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Fees receivable from services
13,296,867
12,776,082
Sale of goods
146,588
109,368
13,443,455
12,885,450
SERVICETEC GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
3
Turnover
(Continued)
- 19 -
2024
2023
£
£
Turnover analysed by geographical market
North America
9,249,161
8,872,091
Europe, The Middle East and Africa
4,194,294
4,013,359
13,443,455
12,885,450
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
23,021
16,386
Government grants
(29,525)
(14,434)
Depreciation of owned tangible fixed assets
21,288
27,221
Depreciation of tangible fixed assets held under finance leases
5,604
-
Loss on disposal of tangible fixed assets
5,689
-
Amortisation of intangible assets
172,513
172,513
Operating lease charges
45,487
44,952
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
6,706
8,021
Audit of the financial statements of the company's subsidiaries
46,446
48,697
53,152
56,718
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Engineering
182
166
-
-
Sales and distribution
5
4
-
-
Administration
20
19
4
4
Total
207
189
4
4
SERVICETEC GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
6
Employees
(Continued)
- 20 -
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
9,811,209
9,416,437
401,823
402,163
Social security costs
828,211
753,620
50,213
50,893
Pension costs
199,445
182,400
4,714
4,714
10,838,865
10,352,457
456,750
457,770
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,025,790
1,104,287
Group pension contributions to defined contribution schemes
72,128
73,482
1,097,918
1,177,769
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
459,371
534,819
Group pension contributions to defined contribution schemes
48,120
48,467
The number of directors for whom retirement benefits are accruing under defined benefit contribution schemes amounted to 3 (2023: 3).
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
46
182
Other interest income
288
604
Total interest revenue
334
786
Other income from investments
Dividends received
55,752
52,770
Total income
56,086
53,556
SERVICETEC GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
25,432
8,134
Interest on finance leases and hire purchase contracts
4,037
4,710
Other interest
4,803
3,338
Total finance costs
34,272
16,182
10
Fair value gains/(losses) on financial instruments
2024
2023
£
£
Change in value of financial assets held at fair value through profit or loss
164,327
158,804
Gain on disposal of current asset investments
34,526
-
198,853
158,804
11
Taxation
2024
2023
£
£
Current tax
Foreign current tax on profits
203,729
279,437
Deferred tax
Origination and reversal of timing differences
14,162
(40,203)
Total tax charge
217,891
239,234
SERVICETEC GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
11
Taxation
(Continued)
- 22 -
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
595,755
447,015
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
148,939
89,403
Tax effect of expenses that are not deductible in determining taxable profit
14,569
27,697
Tax effect of utilisation of tax losses not previously recognised
(6,401)
21,409
Change in unrecognised deferred tax assets
46,992
59,743
Permanent capital allowances in excess of depreciation
(149)
(217)
Other non-reversing timing differences
(2,878)
Other permanent differences
43,127
34,503
Effect of overseas tax rates
(35,142)
(301)
Under/(over) provided in prior years
(2,251)
44,495
Other adjustments
(348)
Deferred tax movements
14,162
(40,203)
Movement in short term timing differences
(3,436)
2,705
Foreign taxation
707
-
Taxation charge
217,891
239,234
12
Dividends
Group
Company
Recognised as distributions to equity holders:
2024
2023
2024
2023
£
£
£
£
Interim paid
719,949
224,984
800,000
250,000
The total for the Group excludes a dividend of £80,051 (2023: £25,016) paid to a group member which has been eliminated on consolidation.
SERVICETEC GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
13
Intangible fixed assets
Group
Goodwill
Intellectual Property
Total
£
£
£
Cost
At 1 July 2023 and 30 June 2024
3,391,125
18,956
3,410,081
Amortisation and impairment
At 1 July 2023
2,932,240
2,932,240
Amortisation charged for the year
172,513
172,513
At 30 June 2024
3,104,753
3,104,753
Carrying amount
At 30 June 2024
286,372
18,956
305,328
At 30 June 2023
458,885
18,956
477,841
Company
Intellectual Property
£
Cost
At 1 July 2023 and 30 June 2024
18,956
Amortisation and impairment
At 1 July 2023 and 30 June 2024
Carrying amount
At 30 June 2024
18,956
At 30 June 2023
18,956
SERVICETEC GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
14
Tangible fixed assets
Group
Fixtures, fittings & equipment
£
Cost
At 1 July 2023
332,150
Additions
7,305
Disposals
(27,448)
Exchange adjustments
(471)
At 30 June 2024
311,536
Depreciation and impairment
At 1 July 2023
286,400
Depreciation charged in the year
21,288
Eliminated in respect of disposals
(21,759)
Exchange adjustments
(385)
At 30 June 2024
285,544
Carrying amount
At 30 June 2024
25,992
At 30 June 2023
45,750
Company
Fixtures, fittings & equipment
£
Cost
At 1 July 2023
17,682
Additions
2,434
At 30 June 2024
20,116
Depreciation and impairment
At 1 July 2023
16,641
Depreciation charged in the year
1,017
At 30 June 2024
17,658
Carrying amount
At 30 June 2024
2,458
At 30 June 2023
1,041
SERVICETEC GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
14
Tangible fixed assets
(Continued)
- 25 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Fixtures, fittings & equipment
7,645
13,251
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
958,693
708,693
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 July 2023
708,693
Additions
250,000
At 30 June 2024
958,693
Carrying amount
At 30 June 2024
958,693
At 30 June 2023
708,693
SERVICETEC GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
16
Subsidiaries
Details of the company's subsidiaries at 30 June 2024, all of which have been included in the consolidated accounts, are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
SASI Airport Services Limited
1
Ordinary
0
100.00
ServiceTec Airport Operations Germany GmbH
3
Ordinary
0
100.00
ServiceTec Airport Operations Netherlands BV
2
Ordinary
0
100.00
ServiceTec Airport Operations Norway AS
4
Ordinary
0
100.00
ServiceTec Airport Services International Limited
5
Ordinary
100.00
-
ServiceTec Employee Share Scheme Co. Limited
5
Ordinary
100.00
-
ServiceTec Global Services Inc.
6
Ordinary
100.00
-
ServiceTec International Inc.
6
Ordinary
0
100.00
Registered Office addresses:
1 510 West Georgia Street, Suite 1800, Vancouver, British Columbia, V6B 0M3, Canada
2 Vertrekpassage 3, Terminal-West Kamer C636-640, 1118AP Schiphol, Netherlands
3 c/o Warth & Klein Grant Thornton, Ganghoferstrasse 31, 80339 München, Germany
4 c/o Nitschke Consult AS, Vollsveien 17B, Grantoss Business Park, Lysaker, Norway
5 Unit 9a, Meadway Court, Meadway Technology Park, Rutherford Close, Stevenage, Hertfordshire, SG1 2EF, United Kingdom
6 950 Herndon Parkway, Suite 380, Herndon 20170, VA, United States of America
17
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
1,012,257
1,279,370
-
-
SERVICETEC GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,033,007
878,376
Corporation tax recoverable
212,230
292,374
Other debtors
100,060
93,249
5,973
4,762
Prepayments and accrued income
769,542
845,242
266,636
242,364
2,114,839
2,109,241
272,609
247,126
Amounts falling due after more than one year:
Deferred tax asset (note 24)
37,943
53,066
Total debtors
2,152,782
2,162,307
272,609
247,126
19
Current asset investments
Group
Company
2024
2023
2024
2023
£
£
£
£
Listed investments
1,012,257
1,279,370
-
-
20
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
22
49,788
Obligations under finance leases
23
10,874
4,644
Trade creditors
50,774
150,460
Amounts owed to group undertakings
806,206
445,321
Corporation tax payable
211,388
219,341
Other taxation and social security
239,389
269,181
14,233
14,006
Other creditors
273,441
610,236
49,265
258,109
835,654
1,253,862
869,704
717,436
21
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
23
1,807
13,007
SERVICETEC GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 28 -
22
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank overdrafts
49,788
Payable within one year
49,788
23
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
10,874
4,644
In two to five years
1,807
13,007
12,681
17,651
-
-
24
Deferred taxation
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Assets
Assets
2024
2023
Group
£
£
Other
37,943
53,066
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 July 2023
(53,066)
-
Charge to profit or loss
15,123
-
Asset at 30 June 2024
(37,943)
-
SERVICETEC GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
25
Accruals and deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Accruals and deferred income
973,263
1,254,834
12,810
13,201
26
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
199,445
182,400
A defined contribution pension scheme is operated for all qualifying employees in the UK, Norway, Canada and the US. The assets of the scheme are held separately from those of the group in an independently administered fund.
The Group contributes to insured defined benefit schemes for all Dutch employees. Contributions take the form of an insurance premium paid to the relevant company to provide a defined benefit at retirement age. As there is no designated pool of assets to be subject to an actuarial valuation, the schemes are not accounted for as defined benefit schemes. Liabilities shown in the balance sheet are the outstanding premiums owed at the balance sheet date.
27
Share-based payment transactions
ServiceTec Employee Share Scheme Company Limited ("SESSC") was established as a subsidiary of the Company to facilitate the recruitment, retention and motivation of the Group's employees, former employees and their representatives. SESSC acts as the trustee of the ServiceTec Employee Share Trust 1998, dated 27 March 1998 and amended on 15 December 2016.
The directors of SESSC may allocate and distribute share options at their discretion in their capacity as trustees of the trust fund. The trustees hold the trust fund and its income for the benefit of the beneficiaries in accordance with the trust deed. The trustees are required to keep accurate accounts of the trust fund and may engage qualified and registered auditors to perform an annual audit on the accounts. The trustees are not required to engage in the management or conduct of the Group. The trustees may pay any expenses relating to the fund's administration out of the fund's capital or income.
SESSC retains the right to these options until the Group is floated, whereupon the entitlement to exercise them transfers from the trustee company to the then eligible employees. The nominal value of the investment in own shares relating to the share option scheme is £75 (2023: £75).
As at 30 June 2024 the subsidiary, ServiceTec Employee Share Scheme Company Limited, had granted the following options:
Group
Number of share options
2024
2023
Number
Number
Outstanding at 1 July 2023
6,974
7,357
Expired
(100)
(383)
Outstanding at 30 June 2024
6,874
6,974
Exercisable at 30 June 2024
-
-
SERVICETEC GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
28
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
74,900
74,900
749
749
10% of the parent company's share capital is held by its subsidiary, ServiceTec Employee Share Scheme Company Limited.
29
Reserves
Other reserves
Other reserves relates to shares held in ServiceTec Global Services Limited by ServiceTec Employee Share Scheme Limited.
30
Financial commitments, guarantees and contingent liabilities
The company has a cross guarantee bank loan with its subsidiaries. At the year end, the outstanding liability was £115,436 (2023: £nil). The bank has fixed and floating charges over both the assets of the company and those group members included within the agreement.
31
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
57,761
77,583
-
-
Between two and five years
193,305
230,398
-
-
In over five years
-
21,013
-
-
251,066
328,994
-
-
SERVICETEC GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
32
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit for the year after tax
377,864
207,781
Adjustments for:
Taxation charged
217,891
239,234
Finance costs
34,272
16,182
Investment income
(56,086)
(53,556)
Loss on disposal of tangible fixed assets
5,689
-
Amortisation and impairment of intangible assets
172,513
172,513
Depreciation and impairment of tangible fixed assets
21,288
27,221
Gain on sale of investments
(34,526)
-
Movement in carrying value of current investments
(164,327)
(158,804)
Movements in working capital:
Increase in debtors
(85,723)
(290,084)
(Decrease)/increase in creditors
(712,249)
181,326
(Decrease)/increase in deferred income
(35,595)
183,213
Cash (absorbed by)/generated from operations
(258,989)
525,026
33
Analysis of changes in net funds - group
1 July 2023
Cash flows
Exchange rate movements
30 June 2024
£
£
£
£
Cash at bank and in hand
1,365,023
(620,008)
76,092
821,107
Bank overdrafts
(49,788)
-
(49,788)
1,365,023
(669,796)
76,092
771,319
Obligations under finance leases
(17,651)
4,970
-
(12,681)
1,347,372
(664,826)
76,092
758,638
2024-06-302023-07-01falsefalseCCH SoftwareCCH Accounts Production 2024.310A. AndersonD. J. IsonB. E. MillsA. P. InkesterR. A. MoodyMoodyL. A. 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