Registered number: 05856998 | ||||||||
FOR THE 397 DAY PERIOD ENDED 31/07/2024 | ||||||||
R&S Recovery Services Limited | ||||||||
ACCOUNTS | ||||||||
FOR THE 397 DAY PERIOD ENDED 31/07/2024 | ||||||||
DIRECTORS | ||||||||
SECRETARY | ||||||||
REGISTERED OFFICE | ||||||||
Bucks. | ||||||||
COMPANY DETAILS | ||||||||
Private company limited by shares registered in EW - England and Wales, registered number 05856998 | ||||||||
R&S Recovery Services Limited | ||||||||
ACCOUNTS | ||||||||
FOR THE397 DAY PERIODENDED31/07/2024 | ||||||||
CONTENTS | ||||||||
Page | ||||||||
Directors' Report | - | |||||||
Statement Of Comprehensive Income | - | |||||||
Balance Sheet | 3 | |||||||
Notes To The Accounts | 4 | |||||||
The following do not form part of the statutory financial statements: | ||||||||
Trading And Profit And Loss Account | - | |||||||
Profit And Loss Account Summaries | - |
R&S Recovery Services Limited | ||||||||
BALANCE SHEET AT | ||||||||||
2024 | 2023 | |||||||||
Notes | £ | £ | ||||||||
FIXED ASSETS | ||||||||||
Intangible assets | 3 | |||||||||
Tangible assets | 4 | |||||||||
CURRENT ASSETS | ||||||||||
Stock | ||||||||||
Debtors | 6 | |||||||||
Cash at bank and in hand | ||||||||||
2,042,281 | 1 | |||||||||
CREDITORS: Amounts falling due within one year | 7 | |||||||||
NET CURRENT ASSETS | 1 | |||||||||
TOTAL ASSETS LESS CURRENT LIABILITIES | ||||||||||
CREDITORS: Amounts falling due after more than one year | 8 | 626,283 | - | |||||||
PROVISIONS FOR LIABILITIES AND CHARGES | 9 | |||||||||
NET ASSETS | ||||||||||
CAPITAL AND RESERVES | ||||||||||
Called up share capital | 10 | |||||||||
Share premium account | 11 | |||||||||
Profit and loss account | 137,645 | - | ||||||||
SHAREHOLDERS' FUNDS | ||||||||||
Approved by the board on | ||||||||||
............................. | ||||||||||
Director | ||||||||||
R&S Recovery Services Limited | ||||||||
NOTES TO THE ACCOUNTS | ||||||||||
FOR THE 397 DAY PERIOD ENDED 31/07/2024 | ||||||||||
1. ACCOUNTING POLICIES |
1a. Basis Of Accounting | ||||||||
The accounts have been prepared under the historical cost convention. | ||||||||
The accounts have been prepared in accordance with FRS102 section 1A - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006 . |
1b. Depreciation | ||||||||
Short Leasehold Properties | straight line33.33% | |||||||
Plant And Machinery | straight line20-50% | |||||||
Commercial Vehicles | straight line10-33.33% | |||||||
Fixtures And Fittings | straight line33.33% | |||||||
Equipment | straight line20-33.33% |
1c. Stocks | ||||||||
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell (net realisable value). Costs are based on the cost of purchased on a weighted average basis. Overheads are charged to profit or loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs. | ||||||||
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. |
1d. Goodwill | ||||||||
R&S Recovery Services Limited | ||||||||
1e. Impairment Of Fixed Assets And Goodwill | ||||||||
Fixed assets and goodwill are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows. Fixed assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased. | ||||||||
Where indicators exist for a decrease in an impairment loss previously recognised for assets other than goodwill, the prior impairment loss is tested to determine whether all or part of the impairment loss should be reversed. An impairment loss is reversed on an individual impaired asset to the extent that it does not increase the carrying amount of the asset above the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment been recognised. |
1f. Leased Assets Lessee | ||||||||
Where assets are financed by leasing agreements that give rights approximating to ownership (finance leases), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable over the term of the lease. The corresponding leasing commitments are shown as amounts payable to the lessor. Depreciation on the relevant assets is charged to the profit and loss account. | ||||||||
Finance lease payments are analysed between capital and interest components so that the interest element of the payment is charged to profit or loss over the term of the lease and is calculated so that it represents a constant proportion of the balance of capital repayments outstanding. The capital part reduces the amounts payable to the lessor. | ||||||||
All other leases are treated as operating leases. Annual rentals on operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease. |
1g. Financial Assets | ||||||||
Financial assets, other than investments and derivatives, are initially measured at transaction price (including transaction costs) and subsquently held at amortised cost, less any impairment. |
1h. Financial Liabilties And Equity | ||||||||
Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form. Financial liabilities, excluding convertible debt and derivatives, are initially measured at transaction price (after deducting transaction costs) and subsequently held at amortised cost. |
1i. Finance Costs | ||||||||
Finance costs are charged to profit or loss over the term of the debt using the effective interest rate method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
R&S Recovery Services Limited | ||||||||
1j. Holiday Pay Accrual | ||||||||
A liability is recognised to the extent of any unused holiday pay entitlement which has accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date. |
1k. Dividends | ||||||||
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
1l. Reserves | ||||||||
The Company's reserves are as follows: - Called up share capital reserve represents the nominal value of the shares issued - Share premium account includes the premium on issue of equity shares, net of any issue costs - Profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments. |
1m. Judgements In Applying Accounting Policies And Key Sources Of Estimation Uncertainty | ||||||||
In preparing these financial statements, the directors have made the following judgements: - Determining whether leases entered into by the Company as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. - Determining whether there are indicators of impairment of the Company's tangible and intangible assets, including goodwill. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset. | ||||||||
Other key sources of estimation uncertainty include tangible fixed assets. Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and mav vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, produce life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining lift of the asset and projected disposal values. |
2. EMPLOYEES | ||||||
2024 | 2023 | |||||
No. | No. | |||||
Average number of employees | - | |||||
R&S Recovery Services Limited | ||||||||
3. INTANGIBLE FIXED ASSETS | |||||||||
Purchased | |||||||||
Goodwill | Total | ||||||||
£ | £ | ||||||||
Cost | |||||||||
Additions | 758,977 | 758,977 | |||||||
At 31/07/2024 | 758,977 | 758,977 | |||||||
Depreciation | |||||||||
For the 397 day period | 167,793 | 167,793 | |||||||
At 31/07/2024 | 167,793 | 167,793 | |||||||
Net Book Amounts | |||||||||
At 31/07/2024 | |||||||||
On 1 August 2023, the entire trade and assets of Stephen Leslie T/A R&S Recovery Services, a sole trader entity, were incorporated into R&S Recovery Services Limited in exchange for 1,000 shares in the Company. In calculating the goodwill arising on the incorporation, the fair value of net assets of Stephen Leslie T/A R&S Recovery Services were assessed and adjustments from book value made where necessary. The book value of net assets was £2,336,718, comprised of Intangible assets £20,000; Tangible assets £2,694,030; Current assets £1,277,335; and Liabilities £1,654,647. Tangible fixed assets were revalued by £1,746,779 to £4,440,809 to reflect their fair market value at the date of acquisition. Deferred tax of £1,082,957 was recognised on the difference between the accounting and tax bases of tangible fixed assets. The fair value of the net assets acquired was £3,000,540. | |||||||||
The total purchase consideration for the transaction was £3,739,517 settled by issuing 1,000 new shares in the Company with a share premium of £3,738,517. The difference between the purchase consideration and the fair value of the net assets acquired resulted in goodwill of £738,977. | |||||||||
The useful economic life of goodwill has been estimated to be 5 years. Included within goodwill are intangible assets that do not require separate recognition. These intangible assets relate to customer lists and customer relationships. | |||||||||
R&S Recovery Services Limited | ||||||||
4. TANGIBLE FIXED ASSETS | ||||||||||||
Short Leasehold | Plant and | Commercial | Fixtures | |||||||||
Properties | Machinery | Vehicles | and Fittings | Equipment | Total | |||||||
£ | £ | £ | £ | £ | £ | |||||||
Cost | ||||||||||||
Additions | 2,929 | 71,713 | 5,072,803 | 117 | 11,814 | 5,159,376 | ||||||
At 31/07/2024 | 2,929 | 71,713 | 5,072,803 | 117 | 11,814 | 5,159,376 | ||||||
Depreciation | ||||||||||||
For the 397 day period | 1,495 | 21,762 | 603,995 | 74 | 3,521 | 630,847 | ||||||
At 31/07/2024 | 1,495 | 21,762 | 603,995 | 74 | 3,521 | 630,847 | ||||||
Net Book Amounts | ||||||||||||
At 31/07/2024 | 1,434 | 4,528,529 | ||||||||||
Additions of tangible assets during the period include amounts acquired with the incorporation of Stephen Leslie T/A R&S Recovery Services of £4,440,809 comprised of Short Leasehold Properties £2,929; Plant & Machinery £48,622; Commercial Vehicles £4,383,014; Fixtures & fittings £117; and Equipment £6,127. | ||||||||||||
The net book value of commercial motor vehicles at 31 July 2024 includes an amount of £2,390,501 in respect of assets held under hire purchase contracts. When these hire purchase contracts end the Company pays a nominal sum to the lender so that the Company gains full unencumbered ownership of the asset. | ||||||||||||
5. STOCK | 2024 | 2023 | ||||
£ | £ | |||||
Stock comprises: | ||||||
Stock | ||||||
6. DEBTORS | 2024 | 2023 | ||||||
£ | £ | |||||||
Amounts falling due within one year | ||||||||
Trade debtors | 956,023 | - | ||||||
Other debtors | 49,390 | 1 | ||||||
Prepayments | 277,116 | - | ||||||
Accrued income | 59,049 | - | ||||||
1,341,578 | 1 | |||||||
R&S Recovery Services Limited | ||||||||
7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||||||||
2024 | 2023 | |||||||
£ | £ | |||||||
UK corporation tax | 98,120 | - | ||||||
VAT | 142,990 | - | ||||||
PAYE control | 41,724 | - | ||||||
Directors current account | 22,941 | - | ||||||
Hire purchase | 501,036 | - | ||||||
Trade creditors | 511,765 | - | ||||||
Other creditors | 4,764 | - | ||||||
Accruals | 77,621 | - | ||||||
1,400,961 | - | |||||||
8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR | ||||||||
2024 | 2023 | |||||||
£ | £ | |||||||
Hire purchase >1yr | 626,283 | - | ||||||
626,283 | - | |||||||
Finance leases and hire purchase contracts at 31 July 2024 include amounts due between 1 and 2 years of £305,325, between 2 and 5 years of £259,298 and due in more than 5 years of £61,660. | ||||||||
9. PROVISIONS FOR LIABILITIES | 2024 | 2023 | ||||||
£ | £ | |||||||
Deferred taxation | 1,257,587 | - | ||||||
1,257,587 | - | |||||||
R&S Recovery Services Limited | ||||||||
10. SHARE CAPITAL | 2024 | 2023 | ||||||
£ | £ | |||||||
Allotted, issued and fully paid: | ||||||||
1,001 | 1 | |||||||
1,001 | 1 | |||||||
New shares issued during period: | ||||||||
1,000 | 1,000 | |||||||
1,000 | - | |||||||
11. SHARE PREMIUM ACCOUNT | 2024 | 2023 | ||||
£ | £ | |||||
Share premium account | 3,738,517 | - |
12. RELATED PARTY TRANSACTIONS | |||||||||||||||||||||||||||||||||||||
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13. GUARANTEES AND OTHER FINANCIAL COMMITMENTS | ||||||||
At 31 July 2024, the Company had total commitments under non-cancellable operating leases over the remaining life of those leases of £761,736 (2023 - £nil). Of these leases £342,181 is due in 1 year and £419,556 in 2-5 years. There are no amounts due after 5 years. | ||||||||
The Company operates a defined contribution pension scheme for the employees. At 31 July 2024, £4,764 of unpaid contributions were due to the pension scheme. This amount is included within other creditors. | ||||||||