Company registration number 05980177 (England and Wales)
REDFLEX TRAFFIC SYSTEMS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
REDFLEX TRAFFIC SYSTEMS LIMITED
COMPANY INFORMATION
Directors
R J Moore
K J Black
R V Galia
Secretary
R V Galia
Company number
05980177
Registered office
Unit 20 Russell House
Chalcroft Business park
Burnetts Lane
West End Southampton
Hampshire
SO30 2PA
Auditor
CLA Evelyn Partners Limited
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
REDFLEX TRAFFIC SYSTEMS LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Statement of financial position
7
Statement of changes in equity
8
Notes to the financial statements
9 - 20
REDFLEX TRAFFIC SYSTEMS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Principal activities

The principal activity of the company continued to be that of the provision of traffic enforcement equipment and related services.

Results and dividends

The results for the year are set out on page 6.

Directors

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

R J Moore
E Stander
(Resigned 31 May 2024)
K J Black
R V Galia
(Appointed 31 May 2024)
Supplier payment policy

The company's current policy concerning the payment of trade creditors is to:

 

Trade creditors of the company at the year end were equivalent to 11 day's purchases, based on the average daily amount invoiced by suppliers during the year.

Auditor

CLA Evelyn Partners Limited 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 directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

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.

REDFLEX TRAFFIC SYSTEMS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
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.

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

Small companies exemption

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

On behalf of the board
K J Black
Director
26 March 2025
REDFLEX TRAFFIC SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF REDFLEX TRAFFIC SYSTEMS LIMITED
- 3 -
Opinion

We have audited the financial statements of Redflex Traffic Systems Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

REDFLEX TRAFFIC SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF REDFLEX TRAFFIC SYSTEMS LIMITED (CONTINUED)
- 4 -
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 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 are 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:

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

REDFLEX TRAFFIC SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF REDFLEX TRAFFIC SYSTEMS LIMITED (CONTINUED)
- 5 -

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.

Keir Singleton (Senior Statutory Auditor)
For and on behalf of CLA Evelyn Partners Limited
28 March 2025
Chartered Accountants
Statutory Auditor
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
REDFLEX TRAFFIC SYSTEMS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
2024
2023
Notes
£
£
Revenue
3
5,430,451
7,287,253
Cost of sales
(3,634,609)
(4,605,981)
Gross profit
1,795,842
2,681,272
Administrative expenses
(3,397,956)
(2,991,089)
Operating loss
4
(1,602,114)
(309,817)
Investment income
7
71,142
-
Finance costs
8
(12,551)
(10,681)
Loss before taxation
(1,543,523)
(320,498)
Tax on loss
9
(14,878)
6,479
Loss and total comprehensive income for the financial year
(1,558,401)
(314,019)

The income statement has been prepared on the basis that all operations are continuing operations.

REDFLEX TRAFFIC SYSTEMS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2024
30 June 2024
- 7 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
10
303,307
305,016
Current assets
Trade and other receivables
12
1,496,299
3,809,897
Cash and cash equivalents
2,908,664
1,080,038
4,404,963
4,889,935
Current liabilities
13
(3,871,655)
(3,529,189)
Net current assets
533,308
1,360,746
Total assets less current liabilities
836,615
1,665,762
Non-current liabilities
13
(163,770)
(182,710)
Provisions for liabilities
Deferred tax liabilities
17
(17,512)
(2,634)
Net assets
655,333
1,480,418
Equity
Called up share capital
20
201
200
Share premium account
21
555,215
-
0
Share based payment reserve
178,100
-
Retained earnings
(78,183)
1,480,218
Total equity
655,333
1,480,418

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 26 March 2025 and are signed on its behalf by:
K J Black
Director
Company registration number 05980177 (England and Wales)
REDFLEX TRAFFIC SYSTEMS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
Share capital
Share premium account
Share based payment reserve
Retained earnings
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
200
-
0
-
1,794,237
1,794,437
Year ended 30 June 2023:
Loss and total comprehensive income
-
-
-
(314,019)
(314,019)
Balance at 30 June 2023
200
-
0
-
1,480,218
1,480,418
Year ended 30 June 2024:
Loss and total comprehensive income
-
-
-
(1,558,401)
(1,558,401)
Transactions with owners:
Issue of share capital
20
1
555,215
-
-
555,216
Share based payment charge
-
-
178,100
-
0
178,100
Balance at 30 June 2024
201
555,215
178,100
(78,183)
655,333
REDFLEX TRAFFIC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
1
Accounting policies
Company information

Redflex Traffic Systems Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 20 Russell House, Chalcroft Business park, Burnetts Lane, West End Southampton, Hampshire, SO30 2PA. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS

 

Where required, equivalent disclosures are given in the group accounts of Redflex Holdings Limited. The group accounts of Redflex Holdings Limited are available to the public and can be obtained as set out in note 23.

1.2
Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

The directors have determined there to be sufficient support from the parent entity to support the going concern basis.

1.3
Revenue

Revenue is measured at the fair value of the consideration received or receivable for the sale of goods and the rendering of services in the normal course of business, and is shown net of discounts and VAT.

REDFLEX TRAFFIC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 10 -

Sale of goods

Revenue arises from the sale of traffic enforcement equipment and installation of camera traffic systems. Revenue is recognised when performance obligations in the contract are met as agreed by the customer. Projects are assessed individually and any costs which have been incurred ahead of performance obligations being met at the balance sheet date are included as contract costs recoverable.

Rendering of services

Revenue arises from the provision of traffic enforcement services. Revenue is recognised proportionally over the performance of the service contract, by reference to the stage of completion of the transaction at the end of the reporting period.

1.4
Property, plant and equipment

Property, plant and equipment are measured at cost, 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:

Land and buildings Leasehold
Over the life of the lease
Leasehold improvements
5 years straight line
Fixtures, fittings & equipment
2 years straight line
Plant and machinery
3 years straight line
Motor vehicles
7 years straight line

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 income statement.

1.5
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

 

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

 

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.

REDFLEX TRAFFIC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 11 -
1.6
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

Short term debtors are measured at transaction price less any provision for impairment. Loans receivable, including loans to fellow group companies are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method, less any provision for impairment.

1.7
Financial liabilities

Short term creditors are measured at transaction price. Other financial liabilities, including loans from fellow group companies, are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method.

1.8
Equity instruments

Equity instruments issued by the company 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 company.

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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

REDFLEX TRAFFIC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
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 inventories or non-current assets.

 

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

 

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

1.11
Retirement benefits

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

1.12
Share-based payments

The company participates in a group share-based payment arrangement, whereby equity instruments of its ultimate parent may be granted to its employees.  These equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted, for which a market price is readily ascertainable. 

 

The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

 

The equity instruments are restricted stock units in the ultimate parent's stock, and these typically vest over a four year period in equal instalments, with each instalment vesting on the anniversary of the grant date. These are then settled with the equity instruments, net of those required to settle the employee's tax liability.

1.13
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

REDFLEX TRAFFIC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

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
Critical accounting estimates and judgements

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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

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

Critical judgements
Contracts in progress

The company estimates the transaction price and amounts allocated to performance obligations used in revenue recognition, based on the terms of the contract and it's customary business practices. The company recognises that performance obligations have been met on agreement with the customer. Judgement is made based on historical outcomes to determine the value of costs associated with each project included as contract costs recoverable at the year end.

3
Revenue
2024
2023
£
£
Revenue analysed by class of business
Sale of goods
628,454
3,806,537
Services
4,775,704
3,443,274
Other
26,293
37,442
5,430,451
7,287,253
REDFLEX TRAFFIC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
3
Revenue
(Continued)
- 14 -
2024
2023
£
£
Revenue analysed by geographical market
UK
4,946,415
4,544,912
Other
484,036
2,742,341
5,430,451
7,287,253
4
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses
147,343
46,565
Depreciation of property, plant and equipment
66,462
64,187
Profit on disposal of property, plant and equipment
(703)
(2,643)
Share-based payments
178,100
-
5
Employees

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

2024
2023
Number
Number
Operations and administration
21
22

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,681,857
1,551,146
Social security costs
197,707
200,156
Pension costs
38,921
40,923
1,918,485
1,792,225
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
126,045
123,362
Company pension contributions to defined contribution schemes
3,669
4,002
129,714
127,364
REDFLEX TRAFFIC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
6
Directors' remuneration
(Continued)
- 15 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

7
Investment income
2024
2023
£
£
Interest income
Other interest income
71,142
-
0
8
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on lease liabilities
12,551
10,681
9
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of temporary differences
14,878
(6,479)

The charge for the year can be reconciled to the loss per the income statement as follows:

2024
2023
£
£
Loss before taxation
(1,543,523)
(320,498)
Expected tax credit based on a corporation tax rate of 25.00% (2023: 25.00%)
(385,881)
(80,125)
Effect of expenses not deductible in determining taxable profit
611
592
Unutilised tax losses carried forward
403,624
73,030
Permanent capital allowances in excess of depreciation
-
(1,326)
Depreciation on assets not qualifying for tax allowances
2,339
1,350
Other permanent differences
(5,815)
-
Taxation charge/(credit) for the year
14,878
(6,479)
REDFLEX TRAFFIC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
10
Property, plant and equipment
Land and buildings Leasehold
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2023
252,830
34,940
90,399
21,255
51,260
450,684
Additions
-
0
23,132
39,803
-
0
-
0
62,935
Disposals
(34,225)
-
0
-
0
-
0
-
0
(34,225)
At 30 June 2024
218,605
58,072
130,202
21,255
51,260
479,394
Accumulated depreciation and impairment
At 1 July 2023
44,178
5,399
25,386
21,255
49,450
145,668
Charge for the year
23,261
9,357
32,034
-
0
1,810
66,462
Eliminated on disposal
(36,043)
-
0
-
0
-
0
-
0
(36,043)
At 30 June 2024
31,396
14,756
57,420
21,255
51,260
176,087
Carrying amount
At 30 June 2024
187,209
43,316
72,782
-
0
-
0
303,307
At 30 June 2023
208,652
29,541
65,013
-
0
1,810
305,016

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2024
2023
£
£
Net values at the year end
Property
187,209
208,652
Depreciation charge for the year
Property
23,261
33,748
11
Contracts with customers
2024
2023
£
£
Contracts in progress
Contract assets
176,964
437,881
Contract costs recoverable
205,200
245,841
REDFLEX TRAFFIC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
12
Trade and other receivables
2024
2023
£
£
Trade receivables
626,982
979,971
Contract assets (note 11)
176,964
437,881
Contract costs recoverable (note 11)
205,200
245,841
Corporation tax recoverable
-
32,254
Amounts owed by fellow group undertakings
456,142
2,102,978
Other receivables
-
2,963
Prepayments and accrued income
31,011
8,009
1,496,299
3,809,897
13
Liabilities
Current
Non-current
2024
2023
2024
2023
Notes
£
£
£
£
Trade and other payables
15
3,437,515
3,224,545
-
0
-
0
Taxation and social security
416,991
282,863
-
-
Lease liabilities
16
17,149
21,781
163,770
182,710
3,871,655
3,529,189
163,770
182,710
14
Fair value of financial liabilities

The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

15
Trade and other payables
2024
2023
£
£
Trade payables
47,880
64,333
Amount owed to parent undertaking
-
0
1,154,566
Amounts owed to fellow group undertakings
2,832,253
1,323,504
Accruals and deferred income
544,670
650,191
Other payables
12,712
31,951
3,437,515
3,224,545
REDFLEX TRAFFIC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
16
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
17,149
21,781
In two to five years
85,291
103,553
In over five years
78,480
79,157
Total undiscounted liabilities
180,920
204,491

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2024
2023
£
£
Current liabilities
17,149
21,781
Non-current liabilities
163,770
182,710
180,919
204,491
2024
2023
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
12,551
10,681

The average effective borrowing rate for the year was 6.127% and the lease term is 10 years.

REDFLEX TRAFFIC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Accelerated capital allowances
Retirement benefit obligations
Unpaid remuneration
Total
£
£
£
£
Liability at 1 July 2022
9,815
(702)
-
9,113
Deferred tax movements in prior year
Charge/(credit) to profit or loss
6,891
(112)
(13,258)
(6,479)
Liability at 1 July 2023
16,706
(814)
(13,258)
2,634
Deferred tax movements in current year
Charge/(credit) to profit or loss
1,490
130
13,258
14,878
Liability at 30 June 2024
18,196
(684)
-
17,512
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
38,921
40,923

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share-based payments
Expenses
Related to equity settled share based payments
178,100
-

Restricted Stock Units were granted on to employees for services to the company. These vest in quarterly instalments over four years. The equity-settled share-based payment transactions relate to the shares of the parent organisation Verra Mobility Corporation.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Authorised
Ordinary shares of £1 each
200
200
200
200
Issued and fully paid
Ordinary shares of £1 each
201
200
201
200

On 2 October 2023 the company issues a further £1 ordinary share for £555,216.

REDFLEX TRAFFIC SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
21
Share premium account
2024
2023
£
£
At the beginning of the year
-
0
-
0
Issue of new shares
555,215
-
At the end of the year
555,215
-
0
22
Related party transactions

The company is the wholly owned subsidiary of Verra Mobility Corporation Group. The company has taken advantage of the exemption from disclosing transactions with wholly owned members of the group.

23
Controlling party

Redflex Holdings Pty Limited, a company incorporated in Australia, is the immediate parent of the company. Consolidated group financial statements are available from its registered office, 31 Market Street, South Melbourne, Victoria 3205, Australia.

The ultimate parent undertaking of the company, which is also the controlling undertaking, is Verra Mobility Corporation, a company incorporated in the state of Delaware in the United States of America. Copies of Verra Mobility Corporation's annual report are available at www.verramobility.com or on written request from the Investor Relations Department, at the registered address Verra Mobility Corporation, 1150 North Alma School Road, Mesa, Arizona.

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