IRIS Accounts Production v24.3.2.46 03407923 Board of Directors 1.8.23 31.7.24 31.7.24 the recovery and repair of motor vehicles. true false true true false false true false Ordinary 1.00000 A Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh034079232023-07-31034079232024-07-31034079232023-08-012024-07-31034079232022-07-31034079232022-08-012023-07-31034079232023-07-3103407923ns15:EnglandWales2023-08-012024-07-3103407923ns14:PoundSterling2023-08-012024-07-3103407923ns10:Director12023-08-012024-07-3103407923ns10:Director22023-08-012024-07-3103407923ns10:PrivateLimitedCompanyLtd2023-08-012024-07-3103407923ns10:FRS1022023-08-012024-07-3103407923ns10:Audited2023-08-012024-07-3103407923ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-08-012024-07-3103407923ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-08-012024-07-3103407923ns10:FullAccounts2023-08-012024-07-3103407923ns10:OrdinaryShareClass12023-08-012024-07-3103407923ns10:OrdinaryShareClass22023-08-012024-07-3103407923ns10:Director32023-08-012024-07-3103407923ns10:Director42023-08-012024-07-3103407923ns10:CompanySecretary12023-08-012024-07-3103407923ns10:RegisteredOffice2023-08-012024-07-3103407923ns5:RetainedEarningsAccumulatedLosses2023-07-3103407923ns5:RetainedEarningsAccumulatedLosses2022-07-3103407923ns5:RetainedEarningsAccumulatedLosses2023-08-012024-07-3103407923ns5:RetainedEarningsAccumulatedLosses2022-08-012023-07-3103407923ns5:RetainedEarningsAccumulatedLosses2024-07-3103407923ns5:RetainedEarningsAccumulatedLosses2023-07-3103407923ns5:CurrentFinancialInstruments2024-07-3103407923ns5:CurrentFinancialInstruments2023-07-3103407923ns5:Non-currentFinancialInstruments2024-07-3103407923ns5:Non-currentFinancialInstruments2023-07-3103407923ns5:ShareCapital2024-07-3103407923ns5:ShareCapital2023-07-3103407923ns5:ShortLeaseholdAssetsns5:LandBuildings2023-08-012024-07-3103407923ns5:PlantMachinery2023-08-012024-07-3103407923ns5:MotorVehicles2023-08-012024-07-3103407923ns5:ReportableOperatingSegment12023-08-012024-07-3103407923ns5:ReportableOperatingSegment12022-08-012023-07-3103407923ns5:TotalReportableOperatingSegmentsIncludingAnyUnallocatedAmount2023-08-012024-07-3103407923ns5:TotalReportableOperatingSegmentsIncludingAnyUnallocatedAmount2022-08-012023-07-3103407923ns15:UnitedKingdom2023-08-012024-07-3103407923ns15:UnitedKingdom2022-08-012023-07-3103407923ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2023-08-012024-07-3103407923ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2022-08-012023-07-3103407923ns5:OwnedAssets2023-08-012024-07-3103407923ns5:OwnedAssets2022-08-012023-07-3103407923ns5:LeasedAssets2023-08-012024-07-3103407923ns5:LeasedAssets2022-08-012023-07-310340792312023-08-012024-07-310340792312022-08-012023-07-3103407923ns5:HirePurchaseContracts2023-08-012024-07-3103407923ns5:HirePurchaseContracts2022-08-012023-07-3103407923ns10:OrdinaryShareClass12022-08-012023-07-3103407923ns10:OrdinaryShareClass22022-08-012023-07-3103407923ns5:ShortLeaseholdAssetsns5:LandBuildings2023-07-3103407923ns5:PlantMachinery2023-07-3103407923ns5:MotorVehicles2023-07-3103407923ns5:ComputerEquipment2023-07-3103407923ns5:ComputerEquipment2023-08-012024-07-3103407923ns5:ShortLeaseholdAssetsns5:LandBuildings2024-07-3103407923ns5:PlantMachinery2024-07-3103407923ns5:MotorVehicles2024-07-3103407923ns5:ComputerEquipment2024-07-3103407923ns5:ShortLeaseholdAssetsns5:LandBuildings2023-07-3103407923ns5:PlantMachinery2023-07-3103407923ns5:MotorVehicles2023-07-3103407923ns5:ComputerEquipment2023-07-3103407923ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2023-07-3103407923ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-07-3103407923ns5:LeasedAssetsHeldAsLessee2023-07-3103407923ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2023-08-012024-07-3103407923ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-08-012024-07-3103407923ns5:LeasedAssetsHeldAsLessee2023-08-012024-07-3103407923ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2024-07-3103407923ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2024-07-3103407923ns5:LeasedAssetsHeldAsLessee2024-07-3103407923ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2023-07-3103407923ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-07-3103407923ns5:LeasedAssetsHeldAsLessee2023-07-3103407923ns5:CurrentFinancialInstrumentsns5:WithinOneYear2024-07-3103407923ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-07-3103407923ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2024-07-3103407923ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-07-3103407923ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2024-07-3103407923ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2023-07-3103407923ns5:HirePurchaseContracts2024-07-3103407923ns5:HirePurchaseContracts2023-07-3103407923ns5:DeferredTaxation2023-07-3103407923ns5:DeferredTaxation2024-07-3103407923ns10:OrdinaryShareClass12024-07-3103407923ns10:OrdinaryShareClass22024-07-31
REGISTERED NUMBER: 03407923 (England and Wales)















Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 July 2024

for

R S Recovery Limited

R S Recovery Limited (Registered number: 03407923)






Contents of the Financial Statements
for the Year Ended 31 July 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3 to 4

Report of the Independent Auditors 5 to 8

Statement of Income and Retained Earnings 9

Balance Sheet 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13 to 21


R S Recovery Limited

Company Information
for the Year Ended 31 July 2024







DIRECTORS: Mr A S Sanghera
Mr R S Rai
Mr J Rai
Mr I Sanghera


SECRETARY: Mr A S Sanghera


REGISTERED OFFICE: Unit 33 Conygree Industrial Estate
Tipton
West Midlands
DY4 8XP


REGISTERED NUMBER: 03407923 (England and Wales)


SENIOR STATUTORY AUDITOR: Frances Clapham


AUDITORS: CKCA Limited
Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH


BANKERS: Barclays Bank Plc
Leicester
LE87 2BB

R S Recovery Limited (Registered number: 03407923)

Strategic Report
for the Year Ended 31 July 2024

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

REVIEW OF BUSINESS
The Principal activity of the company continues to be that of countrywide motor vehicle recovery. The Directors are pleased to report another successful year. As for many businesses of this size, the business environment in which the company operates continues to be challenging and very competitive.
Given the competitive nature of the industry the Directors consider the company's results for the year to be satisfactory and believe the company is well placed to react quickly to any changes in trading conditions and to take advantage of any business opportunities that may rise.

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the execution of the company's strategies are subject to risks which are reviewed by the board of directors to ensure that appropriate processes are put in place to monitor these risks.

The directors continue to mitigate risks that have impacted the Company as follows:

* The company operates in a highly competitive environment and faces tough competition from other companies in the industry and it continues to provide a strong brand identity and investment into the future of the company.
* The company has a strict maintenance of compliance within their third party network by means of using independent third party accreditations and independent verification of insurance through brokers/insurers.
* Investments in modern and feature rich telecommunications systems to improve efficiency and service.
* Ongoing liaison with third party IT specialists and cyber insurers to ensure the company is protected from cyber security risks from both a technical and risk perspective.
* Achieving ISO: 9001 accreditation with a view to getting further accreditation

TRADING PERFORMANCE AND KEY PERFORMANCE INDICATORS
The directors consider the key performance indicators as those that communicate the financial performance and the strength of the company as a whole. KPIs relevant to the company have been calculated as follows:

31.7.24 31.7.23
£ £
Turnover 27,176,487 22,315,208
Gross Profit 7,535,956 5,048,719
Profit before taxation 3,747,521 2,591,757
Turnover for the year amounted to £27,176,487 (2023 - £22,315,208) an increase of 21.78%.
Gross profit margin has increased to 27.73% from 22.62% as a result of increase in prices.

FUTURE DEVELOPMENTS
The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and that the risks that have been identified are being well managed. with careful focus on quality of service, as well as continuing review of the state of the market and the activities of the competitors, the directors are confident in the company's ability to maintain and build on this position.

ON BEHALF OF THE BOARD:





Mr A S Sanghera - Director


30 January 2025

R S Recovery Limited (Registered number: 03407923)

Report of the Directors
for the Year Ended 31 July 2024

The directors present their report with the financial statements of the company for the year ended 31 July 2024.

DIVIDENDS
Interim dividends per share were paid as follows:
Ordinary £1 shares £25,000 -
A Ordinary £1 shares £1,230 -


The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31 July 2024 will be £ 2,623,000 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 August 2023 to the date of this report.

Mr A S Sanghera
Mr R S Rai
Mr J Rai
Mr I Sanghera

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

R S Recovery Limited (Registered number: 03407923)

Report of the Directors
for the Year Ended 31 July 2024


AUDITORS
The auditors, CKCA Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr A S Sanghera - Director


30 January 2025

Report of the Independent Auditors to the Members of
R S Recovery Limited

Opinion
We have audited the financial statements of R S Recovery Limited (the 'company') for the year ended 31 July 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, 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 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:
-give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
R S Recovery Limited


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 or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

Report of the Independent Auditors to the Members of
R S Recovery Limited


Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified and assessed the risks of material misstatement of the financial statements, in respect of irregularities whether due to fraud or error, or non-compliance with laws and regulations and then designed and performed audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non- compliance with laws and regulations, our procedures included the following:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company by discussion and enquiry with the directors and management team and our general knowledge and experience of the vehicle recovery sector.
We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, employment, vehicle standards and health and safety legislation;

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing correspondence with relevant regulators and discussing with management;

Audit response to risks identified
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed included but were not limited to:
- Discussions with directors and management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
- Confirming our understanding of controls by performing a walkthrough test or observation and enquiry
- Performing analytical procedures to identify any unusual or unexpected relationships;
- Challenging assumptions and judgements made by management in its significant accounting estimates;
- Identifying and testing journal entries;
- Reviewing unusual or unexpected transactions; and
- Agreeing the financial statement disclosures to underlying supporting documentation.

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 for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
R S Recovery Limited


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 a Report of the Auditors 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.




Frances Clapham (Senior Statutory Auditor)
for and on behalf of CKCA Limited
Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH

3 February 2025

R S Recovery Limited (Registered number: 03407923)

Statement of Income and
Retained Earnings
for the Year Ended 31 July 2024

31.7.24 31.7.23
Notes £    £   

TURNOVER 3 27,176,487 22,315,208

Cost of sales 19,640,616 17,266,489
GROSS PROFIT 7,535,871 5,048,719

Administrative expenses 3,635,106 2,472,470
3,900,765 2,576,249

Other operating income - 195,611
OPERATING PROFIT 6 3,900,765 2,771,860

Interest receivable and similar income 808 213
3,901,573 2,772,073

Interest payable and similar expenses 7 154,052 180,316
PROFIT BEFORE TAXATION 3,747,521 2,591,757

Tax on profit 8 990,902 703,349
PROFIT FOR THE FINANCIAL YEAR 2,756,619 1,888,408

Retained earnings at beginning of year 3,827,281 3,248,873

Dividends 9 (2,623,000 ) (1,310,000 )

RETAINED EARNINGS AT END OF
YEAR

3,960,900

3,827,281

R S Recovery Limited (Registered number: 03407923)

Balance Sheet
31 July 2024

31.7.24 31.7.23
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 5,175,015 3,889,536

CURRENT ASSETS
Stocks 11 52,500 50,652
Debtors 12 5,465,129 5,002,545
Cash at bank and in hand 3,059,891 2,124,805
8,577,520 7,178,002
CREDITORS
Amounts falling due within one year 13 5,784,913 4,052,044
NET CURRENT ASSETS 2,792,607 3,125,958
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,967,622

7,015,494

CREDITORS
Amounts falling due after more than one year 14 (2,756,834 ) (2,285,680 )

PROVISIONS FOR LIABILITIES 17 (1,249,688 ) (902,333 )
NET ASSETS 3,961,100 3,827,481

CAPITAL AND RESERVES
Called up share capital 18 200 200
Retained earnings 19 3,960,900 3,827,281
SHAREHOLDERS' FUNDS 3,961,100 3,827,481

The financial statements were approved by the Board of Directors and authorised for issue on 30 January 2025 and were signed on its behalf by:





Mr R S Rai - Director


R S Recovery Limited (Registered number: 03407923)

Cash Flow Statement
for the Year Ended 31 July 2024

31.7.24 31.7.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 5,522,744 2,471,460
Interest paid (9,054 ) (137 )
Interest element of hire purchase payments paid (144,998 ) (180,179 )
Tax paid (169,795 ) (301,844 )
Net cash from operating activities 5,198,897 1,989,300

Cash flows from investing activities
Purchase of tangible fixed assets (2,679,855 ) (2,625,333 )
Sale of tangible fixed assets 160,259 240,924
Reclassification of assets 12,917 -
Interest received 808 213
Net cash from investing activities (2,505,871 ) (2,384,196 )

Cash flows from financing activities
Capital repayments in year 866,409 1,352,125
Amount introduced by directors 296,000 811,000
Amount withdrawn by directors (297,349 ) (811,684 )
Equity dividends paid (2,623,000 ) (1,310,000 )
Net cash from financing activities (1,757,940 ) 41,441

Increase/(decrease) in cash and cash equivalents 935,086 (353,455 )
Cash and cash equivalents at beginning of
year

2

2,124,805

2,478,260

Cash and cash equivalents at end of year 2 3,059,891 2,124,805

R S Recovery Limited (Registered number: 03407923)

Notes to the Cash Flow Statement
for the Year Ended 31 July 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.7.24 31.7.23
£    £   
Profit before taxation 3,747,521 2,591,757
Depreciation charges 1,228,368 914,671
Profit on disposal of fixed assets (7,170 ) (5,844 )
Finance costs 154,052 180,316
Finance income (808 ) (213 )
5,121,963 3,680,687
Increase in stocks (1,848 ) (15,443 )
Increase in trade and other debtors (462,582 ) (1,184,645 )
Increase/(decrease) in trade and other creditors 865,211 (9,139 )
Cash generated from operations 5,522,744 2,471,460

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 July 2024
31.7.24 1.8.23
£    £   
Cash and cash equivalents 3,059,891 2,124,805
Year ended 31 July 2023
31.7.23 1.8.22
£    £   
Cash and cash equivalents 2,124,805 2,478,260


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.8.23 Cash flow At 31.7.24
£    £    £   
Net cash
Cash at bank and in hand 2,124,805 935,086 3,059,891
2,124,805 935,086 3,059,891
Debt
Finance leases (3,382,358 ) (866,409 ) (4,248,767 )
(3,382,358 ) (866,409 ) (4,248,767 )
Total (1,257,553 ) 68,677 (1,188,876 )

R S Recovery Limited (Registered number: 03407923)

Notes to the Financial Statements
for the Year Ended 31 July 2024

1. STATUTORY INFORMATION

R S Recovery Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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

The principal accounting policies are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

R S Recovery Limited is a subsidiary of R S Recovery Holdings Limited and the results of R S Recovery Limited are included in the consolidated financial statements of R S Recovery Holdings Limited which can be obtained from Companies House, Cardiff.

Significant judgements and estimates
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 the period, or in the period of the revision and future periods where the revision affects both the current and future periods.

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.

Useful economic lives of the motor vehicle assets
The annual depreciation charge for motor vehicle assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates.

Turnover
Turnover is recognised at the fair value of the consideration received or receivable for motor vehicle recovery services provided in the normal course of business, which is recognised on the date of the recovery net of VAT and trade discounts.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - 2% on cost
Plant and machinery - 15% on reducing balance
Motor vehicles - 25% on reducing balance

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

R S Recovery Limited (Registered number: 03407923)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

2. ACCOUNTING POLICIES - continued

Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method.

The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.

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

Debtors and creditors with no stated interest rate and receivable or payable within one year are measured at transaction price. Any losses arising from impairment are recognised in the profit and loss account.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

R S Recovery Limited (Registered number: 03407923)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.7.24 31.7.23
£    £   
Motor vehicle recovery 27,176,487 22,315,208
27,176,487 22,315,208

An analysis of turnover by geographical market is given below:

31.7.24 31.7.23
£    £   
United Kingdom 27,176,487 22,315,208
27,176,487 22,315,208

4. EMPLOYEES AND DIRECTORS
31.7.24 31.7.23
£    £   
Wages and salaries 5,469,807 4,285,935
Social security costs 570,104 428,870
Other pension costs 113,810 88,607
6,153,721 4,803,412

The average number of employees during the year was as follows:
31.7.24 31.7.23

Directors 4 4
Administration 62 46
Productive 72 74
138 124

5. DIRECTORS' EMOLUMENTS

Directors Remuneration
2024 2023
£ £
Directors Emoluments 53,158 51,687
Directors Pensions 380 380
53,538 52,067
During the year retirement benefits were accruing to 2 directors £380 (2023- 380) in respect of defined contribution pension schemes.

R S Recovery Limited (Registered number: 03407923)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.7.24 31.7.23
£    £   
Depreciation - owned assets 84,983 78,693
Depreciation - assets on hire purchase contracts 1,143,387 835,977
Profit on disposal of fixed assets (7,170 ) (5,844 )
Auditors' remuneration 12,250 15,950

7. INTEREST PAYABLE AND SIMILAR EXPENSES
31.7.24 31.7.23
£    £   
Other interest 9,054 137
Hire purchase 144,998 180,179
154,052 180,316

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.7.24 31.7.23
£    £   
Current tax:
UK corporation tax 643,547 178,836

Deferred tax 347,355 524,513
Tax on profit 990,902 703,349

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.7.24 31.7.23
£    £   
Profit before tax 3,747,521 2,591,757
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 21%)

936,880

544,269

Effects of:
Expenses not deductible for tax purposes 5,637 1,275
Adjustments to tax charge in respect of previous periods - 2
Origination and reversal of timing differences 48,385 157,803
Total tax charge 990,902 703,349

R S Recovery Limited (Registered number: 03407923)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

9. DIVIDENDS
31.7.24 31.7.23
£    £   
Ordinary shares of £1 each
Interim 2,500,000 1,100,000
A Ordinary shares of £1 each
Interim 123,000 210,000
2,623,000 1,310,000

10. TANGIBLE FIXED ASSETS
Capital
Short Plant and Motor work in
leasehold machinery vehicles progress Totals
£    £    £    £    £   
COST
At 1 August 2023 23,818 868,570 5,197,768 12,917 6,103,073
Additions 29,115 474,109 1,921,581 255,050 2,679,855
Disposals - (6,075 ) (439,632 ) - (445,707 )
Transfer to ownership - 24,736 (24,736 ) - -
Reclassification/transfer - - - (12,917 ) (12,917 )
At 31 July 2024 52,933 1,361,340 6,654,981 255,050 8,324,304
DEPRECIATION
At 1 August 2023 4,266 486,509 1,722,762 - 2,213,537
Charge for year 1,059 86,830 1,140,481 - 1,228,370
Eliminated on disposal - (2,344 ) (290,274 ) - (292,618 )
Transfer to ownership - 15,569 (15,569 ) - -
At 31 July 2024 5,325 586,564 2,557,400 - 3,149,289
NET BOOK VALUE
At 31 July 2024 47,608 774,776 4,097,581 255,050 5,175,015
At 31 July 2023 19,552 382,061 3,475,006 12,917 3,889,536

R S Recovery Limited (Registered number: 03407923)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

10. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 August 2023 - 5,125,713 5,125,713
Additions 276,137 1,879,957 2,156,094
Disposals - (427,792 ) (427,792 )
Transfer to ownership - (24,736 ) (24,736 )
At 31 July 2024 276,137 6,553,142 6,829,279
DEPRECIATION
At 1 August 2023 - 1,683,094 1,683,094
Charge for year 17,259 1,126,128 1,143,387
Eliminated on disposal - (287,314 ) (287,314 )
Transfer to ownership - (15,569 ) (15,569 )
At 31 July 2024 17,259 2,506,339 2,523,598
NET BOOK VALUE
At 31 July 2024 258,878 4,046,803 4,305,681
At 31 July 2023 - 3,442,619 3,442,619

11. STOCKS

Stock Analysis
20232023
££
Consumables and spares52,50050,652
52,50050,652

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.24 31.7.23
£    £   
Trade debtors 5,361,155 4,204,344
Amounts owed by group undertakings - 571,367
Other debtors 38,037 149,597
Prepayments and accrued income 65,937 77,237
5,465,129 5,002,545

R S Recovery Limited (Registered number: 03407923)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.24 31.7.23
£    £   
Hire purchase contracts (see note 15) 1,491,933 1,096,678
Trade creditors 2,397,723 2,152,372
Amounts owed to group undertakings 380,160 -
Tax 652,585 178,833
Social security and other taxes 577,415 440,561
Other creditors 92,302 29,802
Directors' current accounts 531 1,880
Accruals and deferred income 192,264 151,918
5,784,913 4,052,044

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.7.24 31.7.23
£    £   
Hire purchase contracts (see note 15) 2,756,834 2,285,680

15. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

31.7.24 31.7.23
£    £   
Net obligations repayable:
Within one year 1,491,933 1,096,678
Between one and five years 2,756,834 2,285,680
4,248,767 3,382,358

16. SECURED DEBTS

The following secured debts are included within creditors:

31.7.24 31.7.23
£    £   
Hire purchase contracts 4,248,767 3,382,358

Debenture on the bank standard form dated 31 May 2002

Barclays Bank Plc hold fixed and floating charges over all property or undertaking of the company dated 20 November 2017.

17. PROVISIONS FOR LIABILITIES
31.7.24 31.7.23
£    £   
Deferred tax 1,249,688 902,333

R S Recovery Limited (Registered number: 03407923)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

17. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 August 2023 902,333
Accelerated capital allowances 347,355
Balance at 31 July 2024 1,249,688

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.7.24 31.7.23
value: £    £   
100 Ordinary £1 100 100
100 A Ordinary £1 100 100
200 200

Ordinary shares have right to dividends, distributions and voting.
Ordinary A shares have rights to dividends and distributions only, but with no voting rights

19. RESERVES
Retained
earnings
£   

At 1 August 2023 3,827,281
Profit for the year 2,756,619
Dividends (2,623,000 )
At 31 July 2024 3,960,900

20. PENSION COMMITMENTS

20242023
££
Charge to profit or loss in respect of defined contribution schemes114,19088,607


21. CAPITAL COMMITMENTS
31.7.24 31.7.23
£    £   
Contracted but not provided for in the
financial statements 917,600 634,452

22. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

Limited guarantee given by Mr Rashpal Singh Rai for £15,000 dated 29/06/2000.

R S Recovery Limited (Registered number: 03407923)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

23. RELATED PARTY DISCLOSURES

During the year, total dividends of £61,500 (2023 - £105,000) were paid to the directors .

The company occupies premises owned by the directors at a rental of £96,000pa (2023- £96,000).

The Company also rents its other premises from a company under common control at a rental of £240,000 (2023 - £96,000) and included in other creditors is an amount of £78,061(2023 - £75,002 - debtor) owed by the same.

The company also rents Motor Vehicles from R S Holdings Limited, a company with significant control over the company, at a rental of £40,000pa (2023- £40,000) and included within creditors is an Amount Owed by Group Undertakings of £380,160 (2023 - £571,366 - debtor).During the year the company sold assets at Net Book Value of £127,418 (2023- £ 151,874) to the same.

During the year, a total of key management personnel compensation of £ 469,362 (2023 - £ 415,093 ) was paid.

24. ULTIMATE CONTROLLING PARTY

The controlling party is R S Recovery Holdings Limited.

The directors Mr R S Rai and Mr A S Sanghera together with their spouses are the ultimate controlling party.