Company Registration No. 04694217 (England and Wales)
SRC INFRASTRUCTURE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
LB GROUP
19th Floor
1 Westfield Avenue
London
E20 1HZ
SRC INFRASTRUCTURE LIMITED
COMPANY INFORMATION
Directors
Mr C Furbank
Mr C Perryman
Mr V Vernikos
Mr P Keegan
Company number
04694217
Registered office
19th Floor
1 Westfield Avenue
London
E20 1HZ
Auditor
LB Group (Stratford)
19th Floor
1 Westfield Avenue
London
E20 1HZ
SRC INFRASTRUCTURE LIMITED
CONTENTS
Page
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
The following pages do not form part of the financial statements
Detailed profit and loss account
Notes to the detailed profit and loss account
SRC INFRASTRUCTURE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of the business

The directors consider turnover and operating profit to be the key financial performance indicators of the business. The year ended 31 March 2024 remained challenging for transport and infrastructure operators, construction activity continued to be cautious and profitability remained under pressure. The ongoing cost of living crisis, as the country emerges from the Covid-19 pandemic, combined with the inflationary impact of the Russia-Ukraine war, has created significant uncertainty across the UK.

 

These challenges have particularly affected transport and infrastructure projects, with rising material costs, supply chain disruptions, and workforce constraints impacting project timelines and budgets. Additionally, infrastructure companies and public sector bodies responsible for delivering large-scale transport projects have faced increasing pressure to manage costs while maintaining high standards of service delivery. Budget constraints, regulatory requirements, and the need for long-term investment in sustainable transport solutions continue to shape decision-making in the sector.

 

By focusing on cost control, innovation, workforce development, and sustainability, SRC Infrastructure successfully overcame industry pressures and positioned itself for long-term growth. Through strategic partnerships with infrastructure companies and public sector bodies, the business secured a pipeline of projects while remaining agile in a rapidly changing economic environment.

 

The year saw the company work on existing projects and on new profitable projects during the year. Turnover increased in the year to £20.8m (2023: £15.07m) and operating profit increased to £1.56m (2023:£1.1m).

 

The company is exempt from the requirement to disclose details of non-financial key performance indicators.

Liquidity Risk

The company minimises its exposure to liquidity risk by managing cash generation by its operations with cash collection targets set. In this way the company ensures that sufficient funds are available for day-to-day operations and planned expansions. In addition the company ensures borrowing facilities are available when required.

Interest Risk

The company regularly reviews its borrowings when appropriate to minimise risk from fluctuating interest rates.

Credit Risk

As with any business, the company is exposed to a certain level of credit risk. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis, based on a combination of payment history and third party references.

Future Developments

The directors are satisfied with the results achieved in the year and are making every effort to source new contracts. Economic uncertainty continues to challenge the company's future growth, but in the directors' opinion the company is well placed to meet these challenges.

On behalf of the board

Mr V Vernikos
Director
14 March 2025
SRC INFRASTRUCTURE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company during the year was the provision of consultancy services to the rail industry, infrastructure operators such as airports, and public sector bodies including local councils. The company specialises in delivering strategic advisory, project management, and technical consultancy to support the planning, development, and operation of critical transport and infrastructure projects.

Directors

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

Mr C Furbank
Mr C Perryman
Mr V Vernikos
Mr P Keegan
Auditor

Affinia (Stratford) were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr V Vernikos
Director
14 March 2025
SRC INFRASTRUCTURE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

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.

SRC INFRASTRUCTURE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SRC INFRASTRUCTURE LIMITED
- 4 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 matters

In the previous accounting period the directors of the company took advantage of the audit exemption under S477 of the Companies Act. Therefore the comparative 2022 corresponding figures are unaudited.

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:

SRC INFRASTRUCTURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SRC INFRASTRUCTURE LIMITED
- 5 -
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 in relation to which 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:

 

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

SRC INFRASTRUCTURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SRC INFRASTRUCTURE LIMITED
- 6 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

 

 

 

 

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 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.

SRC INFRASTRUCTURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SRC INFRASTRUCTURE LIMITED
- 7 -
Mark Middleton
Senior Statutory Auditor
For and on behalf of LB Group Limited (Stratford)
14 March 2025
Chartered Accountants
Statutory Auditor
19th Floor
1 Westfield Avenue
London
E20 1HZ
SRC INFRASTRUCTURE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023 Unaudited
Notes
£
£
Turnover
3
20,814,247
15,066,965
Cost of sales
(15,484,117)
(10,798,715)
Gross profit
5,330,130
4,268,250
Administrative expenses
(3,769,360)
(3,459,195)
Other operating income
1,565
287,597
Operating profit
4
1,562,335
1,096,652
Interest receivable and similar income
8
-
0
67
Interest payable and similar expenses
9
(54,294)
(31,261)
Profit before taxation
1,508,041
1,065,458
Tax on profit
10
(307,237)
(155,550)
Profit for the financial year
1,200,804
909,908

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

SRC INFRASTRUCTURE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
40,668
41,664
Current assets
Debtors
12
3,136,519
1,951,460
Cash at bank and in hand
2,795,638
1,356,612
5,932,157
3,308,072
Creditors: amounts falling due within one year
13
(3,186,638)
(1,766,604)
Net current assets
2,745,519
1,541,468
Total assets less current liabilities
2,786,187
1,583,132
Provisions for liabilities
(10,167)
(7,916)
Net assets
2,776,020
1,575,216
Capital and reserves
Called up share capital
15
1,200
1,200
Profit and loss reserves
2,774,820
1,574,016
Total equity
2,776,020
1,575,216

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 14 March 2025 and are signed on its behalf by:
Mr V  Vernikos
Director
Company registration number 04694217 (England and Wales)
SRC INFRASTRUCTURE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022 (Unaudited)
1,200
664,108
665,308
Year ended 31 March 2023: (Unaudited)
Profit and total comprehensive income
-
909,908
909,908
Balance at 31 March 2023 (Unaudited)
1,200
1,574,016
1,575,216
Year ended 31 March 2024:
Profit and total comprehensive income
-
1,200,804
1,200,804
Balance at 31 March 2024
1,200
2,774,820
2,776,020
SRC INFRASTRUCTURE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023 Unaudited
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
18
1,653,320
(85,376)
Interest paid
(54,294)
(31,261)
Income taxes paid
(150,001)
(43,835)
Net cash inflow/(outflow) from operating activities
1,449,025
(160,472)
Investing activities
Purchase of tangible fixed assets
(15,442)
(35,749)
Proceeds from disposal of tangible fixed assets
5,443
-
0
Interest received
-
0
67
Net cash used in investing activities
(9,999)
(35,682)
Financing activities
Repayment of bank loans
-
0
(43,688)
Net cash used in financing activities
-
(43,688)
Net increase/(decrease) in cash and cash equivalents
1,439,026
(239,842)
Cash and cash equivalents at beginning of year
1,356,612
1,596,454
Cash and cash equivalents at end of year
2,795,638
1,356,612
SRC INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

SRC Infrastructure Limited is a private company limited by shares incorporated in England and Wales. The registered office is 19th Floor, 1 Westfield Avenue, London, E20 1HZ.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Turnover

The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.3
Tangible fixed assets

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

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

Plant and machinery
- 25% Reducing Balance
Computer equipment
- 25% Reducing Balance

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

1.4
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.

SRC INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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

1.5
Cash and cash equivalents

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

1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

Other financial assets

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

SRC INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Other financial liabilities

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

 

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

SRC INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

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

1.7
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.

1.8
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.9
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exceptions:

 

Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on disposal of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet date, there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold.

 

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

 

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

 

SRC INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

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

1.11
Retirement benefits

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

1.12
Leases

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.

1.13
Government grants

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

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.14
Foreign exchange

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

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.

SRC INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Accrued Income

In respect of long-term contracts and contracts for on-going services, accrued income represents the value of work done in the year for amounts not invoiced. Accrued income in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion. This method requires the project managers to confirm the level of service performed at each reporting as a proportion of the total services to be performed.

3
Turnover and other revenue

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

2024
2023 Unaudited
£
£
Turnover analysed by class of business
Consulting services
20,814,247
15,066,965
2024
2023 Unaudited
£
£
Turnover analysed by geographical market
United Kingdom
20,814,247
15,066,965
2024
2023 Unaudited
£
£
Other income
Interest income
-
67
Grants received
-
261,379
Other operating income
1,565
217,626
4
Operating profit
2024
2023 Unaudited
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(261,379)
Depreciation of owned tangible fixed assets
10,994
6,543
Operating lease charges
283,974
195,882
SRC INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
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 company
10,000
-
0
6
Employees

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

2024
2023
Unaudited as restated
Number
Number
Directors
4
4
Employees
67
60
Total
71
64

Their aggregate remuneration comprised:

2024
2023 Unaudited
£
£
Wages and salaries
2,047,430
1,309,578
Social security costs
215,585
135,362
Pension costs
49,305
34,932
2,312,320
1,479,872
7
Directors' remuneration
2024
2023 Unaudited
£
£
Remuneration for qualifying services
23,059
50,000
Social security costs
1,566
4,621
Pension costs
375
-
0
8
Interest receivable and similar income
2024
2023 Unaudited
£
£
Interest on bank deposits
67
SRC INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
9
Interest payable and similar expenses
2024
2023 Unaudited
£
£
Interest on bank overdrafts and loans
-
550
Interest on invoice finance arrangements
54,185
29,680
Other interest on financial liabilities
109
1,031
54,294
31,261
10
Taxation
2024
2023 Unaudited
£
£
Current tax
UK corporation tax on profits for the current period
304,986
150,001
Deferred tax
Origination and reversal of timing differences
2,251
5,549
Total tax charge
307,237
155,550

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 Unaudited
£
£
Profit before taxation
1,508,041
1,065,458
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
377,010
202,437
Tax effect of expenses that are not deductible in determining taxable profit
4,881
1,351
Depreciation
2,748
1,243
Pension
(3,053)
1,230
Research and Development additional deduction
(72,740)
(47,430)
Net capital allowance
(3,860)
(8,830)
Measurement of deferred tax
2,251
5,549
Taxation charge for the year
307,237
155,550
SRC INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 20 -

The UK Government announced in the 2021 budget that from 1 April 2023, the rate of corporation tax in the United Kingdom has increased from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase.

11
Tangible fixed assets
Plant and machinery
Computer equipment
Total
£
£
£
Cost
At 1 April 2023
28,602
109,443
138,045
Additions
240
15,202
15,442
Disposals
(28,149)
(67,098)
(95,247)
At 31 March 2024
693
57,547
58,240
Depreciation and impairment
At 1 April 2023
26,801
69,581
96,382
Depreciation charged in the year
74
10,920
10,994
Eliminated in respect of disposals
(26,603)
(63,201)
(89,804)
At 31 March 2024
272
17,300
17,572
Carrying amount
At 31 March 2024
421
40,247
40,668
At 31 March 2023
1,802
39,862
41,664
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
866,152
120,428
Other debtors
2,270,367
1,831,032
3,136,519
1,951,460
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,404,437
1,006,775
Taxation and social security
498,161
193,235
Other creditors
1,284,040
566,594
3,186,638
1,766,604
SRC INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
13
Creditors: amounts falling due within one year
(Continued)
- 21 -

A fixed and floating charge dated 25 January 2010 exists between the company and HSBC Bank Plc over the undertaking and all property and assets present and future, including goodwill, book debts, uncalled capital, buildings, fixtures, fixed plant & machinery.

 

A charge dated 10 September 2019 exists between the company and HSBC Invoice Finance (UK) Ltd in relation to the company debt included in other creditors.

 

A charge dated 29 May 2020 exists between the company and HSBC Bank Plc in relation to a legal assignment of contract monies.

 

A charge dated 17 January 2024 exists between the company and HSBC Bank Plc in relation to a legal assignment of contract monies.

14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023 Unaudited
Balances:
£
£
Accelerated capital allowances
10,167
7,916
2024
Movements in the year:
£
Liability at 1 April 2023
7,916
Charge to profit or loss
2,251
Liability at 31 March 2024
10,167
15
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
1,200
1,200
1,200
1,200
SRC INFRASTRUCTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
16
Related party transactions

The company was under the joint control of Mr V Vernikos and Mr P Keegan throughout the current year and previous year.

 

During the year design and engineering services of £4,613,237 were supplied to SRC Infrastructure Limited by companies under the control of Mr Vernikos and or Mr P Keegan.  The balance owed by these companies at the year end was £118,205.

17
Ultimate controlling party

The entity has been controlled throughout the year by Dr V Vernikos and Mr PJ Keegan, directors of the company, by virtue of their shareholding in the entity.

18
Cash generated from/(absorbed by) operations
2024
2023 Unaudited
£
£
Profit for the year after tax
1,200,804
909,908
Adjustments for:
Taxation charged
307,237
155,550
Finance costs
54,294
31,261
Investment income
-
0
(67)
Depreciation and impairment of tangible fixed assets
10,994
6,543
Movements in working capital:
Increase in debtors
(1,185,059)
(163,976)
Increase/(decrease) in creditors
1,265,050
(1,024,595)
Cash generated from/(absorbed by) operations
1,653,320
(85,376)
19
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
1,356,612
1,439,026
2,795,638
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