Company registration number 01494701 (England and Wales)
TECHNICAL SERVICE CONSULTANTS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
PAGES FOR FILING WITH REGISTRAR
TECHNICAL SERVICE CONSULTANTS LIMITED
BALANCE SHEET
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,154,362
1,271,964
Current assets
Stocks
593,615
588,237
Debtors
5
2,541,870
2,249,154
Cash at bank and in hand
1,559,205
992,333
4,694,690
3,829,724
Creditors: amounts falling due within one year
6
(698,754)
(364,769)
Net current assets
3,995,936
3,464,955
Total assets less current liabilities
5,150,298
4,736,919
Creditors: amounts falling due after more than one year
7
(33,266)
(44,218)
Provisions for liabilities
(250,000)
(278,000)
Net assets
4,867,032
4,414,701
Capital and reserves
Called up share capital
4,000
4,000
Other reserves
8
(29,436)
(29,436)
Profit and loss reserves
8
4,892,468
4,440,137
Total equity
4,867,032
4,414,701
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered 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 3 April 2025 and are signed on its behalf by:
J R Rainbow
Director
Company Registration No. 01494701
TECHNICAL SERVICE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
1
Accounting policies
Company information
Technical Service Consultants Limited is a private company limited by shares incorporated in England and Wales. The registered office is Microbiology House, Fir Street, Heywood, Lancashire, United Kingdom, OL10 1NW.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors have considered the financial stability of the company for a period of at least 12 months from the date of signing these accounts. They have assessed financial performance since the year end and ensured that the company remains profitable and has sufficient cash reserves. These factors demonstrate that the company will remain sustainable.true
The directors consider it appropriate that the accounts are prepared on the going concern basis. These accounts do not include any adjustments that may be required should the going concern basis of preparation not be appropriate.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred.
1.5
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.
TECHNICAL SERVICE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 3 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold property
2% per annum on cost
Plant and equipment
10-15% per annum reducing balance
Fixtures and fittings
25% per annum reducing balance
Motor vehicles
20% per annum reducing balance
Leasehold property improvements
Over the period of the lease
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.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. 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.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand.
1.9
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.
TECHNICAL SERVICE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 4 -
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 and loans from fellow group companies are recognised at transaction price.
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.
1.10
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.
1.11
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 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.
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
1.14
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.
TECHNICAL SERVICE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 5 -
1.15
The company is deemed to have control of assets, liabilities, income and costs of its Employee Benefit Trust ("EBT"). The shares held by the EBT are treated as a deduction in arriving at shareholders' funds, rather than a fixed asset investment.
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Recoverability of group balances
The company has a significant outstanding debtor balance due from it's parent. This balance is unsecured, accrues no interest and is classified as falling due within one year. In the absence of a repayment date the balance is, by default, treated as being repayable on demand, although the directors do not anticipate recovery within twelve months of the balance sheet date.
The company has distribiutable reserves which could be paid to the parent company via a dividend, and then used to settle the balance, if and when required. The financial performance of the company may, therefore, impact the extent to which, and the timing in which, the balance is recoverable as this could affect the likelihood of future dividends taking place. With this in mind the balance will be periodically reviewed for indicators of impairment going forward, with adjustments made in respect of any impairment indicators should they arise.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
47
49
TECHNICAL SERVICE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 6 -
4
Tangible fixed assets
Freehold property
Plant and equipment
Fixtures and fittings
Motor vehicles
Leasehold property improvements
Total
£
£
£
£
£
£
Cost
At 1 June 2023
396,533
2,932,814
185,059
34,113
493,414
4,041,933
Additions
41,306
41,306
At 31 May 2024
396,533
2,974,120
185,059
34,113
493,414
4,083,239
Depreciation and impairment
At 1 June 2023
122,340
2,095,171
179,482
6,368
366,608
2,769,969
Depreciation charged in the year
5,484
131,995
1,806
5,549
14,074
158,908
At 31 May 2024
127,824
2,227,166
181,288
11,917
380,682
2,928,877
Carrying amount
At 31 May 2024
268,709
746,954
3,771
22,196
112,732
1,154,362
At 31 May 2023
274,193
837,643
5,577
27,745
126,806
1,271,964
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
774,460
619,573
Amounts owed by group undertakings
1,620,466
1,558,433
Other debtors
146,944
71,148
2,541,870
2,249,154
Amounts owed by group undertakings is unsecured, accrues no interest and is classified as falling due within one year. In the absence of a repayment date the balance is, by default, treated as being repayable on demand, although the directors do not anticipate recovery within twelve months of the balance sheet date. The company's reserves are sufficient to enable the balance to be settled by way of dividends if required (see also note 2).
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
9,480
9,246
Trade creditors
280,801
104,341
Taxation and social security
194,227
77,098
Other creditors
214,246
174,084
698,754
364,769
TECHNICAL SERVICE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
6
Creditors: amounts falling due within one year
(Continued)
- 7 -
The bank loan is denominatd in GBP and bears interest at 3% per annum. The loan is repayable in instalments with the final instalment due in May 2027. This loan is secured by fixed and floating charges over the company's properties and other assets.
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans
33,266
44,218
The bank loan is denominatd in sterling and bears interest at 3% per annum. The loan is repayable over the period with the final instalment due May 2027. This loan is secured by fixed and floating charges over the company's properties and other assets.
8
Reserves
Parent shares held reserves - 'Other reserves'
Ordinary shares in Cobco (266) Limited are held by an Employee Benefit Trust ("EBT") for the purpose of granting share options to key members of staff.
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Jonathan Ward
Statutory Auditor:
Azets Audit Services
10
Financial commitments, guarantees and contingent liabilities
The total amount of guarantees not included in the balance sheet is £378,783 (2023 - £408,269). These cross guarantees are in respect of parent company borrowings.
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
219,528
317,117
12
Parent company
The company's immediate and ultimate parent is Cobco (266) Limited, incorporated in England and Wales.