Company registration number 06426331 (England and Wales)
RHODAR INDUSTRIAL SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
RHODAR INDUSTRIAL SERVICES LIMITED
COMPANY INFORMATION
Directors
J Davies
J M Davy
A de Graft-Hayford
J Ellis
A Fisk
P Humphries
D M Payne
M J Woods
A P Howard
(Appointed 25 March 2025)
Secretary
A de Graft-Hayford
Company number
06426331
Registered office
Unit C Astra Park
Parkside Lane
Leeds
West Yorkshire
United Kingdom
LS11 5SZ
Auditor
BHP LLP
Mayesbrook House
Lawnswood Business Park
Redvers Close
Leeds
LS16 6QY
RHODAR INDUSTRIAL SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 5
Directors' report
6 - 10
Directors' responsibilities statement
11
Independent auditor's report
12 - 14
Statement of comprehensive income
15
Balance sheet
16
Statement of changes in equity
17
Notes to the financial statements
18 - 30
RHODAR INDUSTRIAL SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Business review and principal activities

The Company is a provider of asbestos abatement services, demolition and remediation services, together with passive fire protection.

 

The business is a leading provider of asbestos abatement services, comprising removal, encapsulation and where required environmentally conscious disposal of waste. The business is focused on providing a high quality, professional service offered on a nationwide basis from its network of UK offices.

 

Rhodar is recognised as a market leader in innovation and maintains industry leading standards in the highly regulated market in which it operates. Our business model is focused on identifying and working with blue chip clients, covering the private and public sectors, across a range of industry sectors. We have a large number of long-term agreements and frameworks, ensuring repeat revenues form a significant part of our business.

 

Our continued focus as a Group has been to offer our major clients an ‘enabling works package’ comprising our four key skillsets of asbestos, demolition, remediation and passive fire protection. The Group has continued to build on the successful rebranding strategy for Rhodar to reposition the business as an enabling works provider, delivering an integrated service package. In 2024, the staged merger of Rhodar Limited into Rhodar Industrial Services Limited, was completed.

 

Despite ongoing economic challenges following the challenging economic conditions of 2023, the Company delivered a record-breaking performance in 2024, achieving a turnover of £68m and exceeding profit expectations. This reflects the growth of the asbestos abatement services as well as the excellent performance of the Demolition and Fire Protection divisions that have continued to deliver works with operational efficiency.

 

Reviewing the past year for the Company from the perspective of the four disciplines, highlights have been:

 

Asbestos:

The division had a financially strong year, with standout performance across sectors like education, local authorities, infrastructure, rail, defence, and nuclear. Growth was driven by key framework wins and renewals, both directly (TfL, BT, Yorkshire Water) and via national frameworks (NEPO, NHS, NEUPC).

A key strategic move within the division (made early in the year) has been to restructure our project delivery infrastructure in order to strengthen our national delivery capability. This involved creation of three regions (Scotland, Northern & Southern) – streamlining processes, reporting lines and resource allocations to maximise project delivery efficiencies. Each region delivered major projects for clients such as Scottish Water, BAE Systems, and Aspire Defence.

Focus areas included:

 

 

 

 

 

RHODAR INDUSTRIAL SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

Demolition:

The division has had a highly successful year in 2024, surpassing targets and securing a strong pipeline for 2025. Key factors contributing to their success include a disciplined bid qualification process focusing on fewer but higher-quality projects and a strategic emphasis on sectors like healthcare, education, defence, nuclear, rail, MOD/Defence, and utilities. They have expanded their portfolio through prestigious frameworks like Crown Commercial Services and Pagabo, with notable wins including projects for NWG, Gloucester Place, Scotland Excel, and Procure Public.

The division is increasingly involved as a Principal Contractor, directly engaging with clients and supporting multi-discipline enabling works projects, a significant growth area. Recent high-profile projects include the Darwin Tower demolition for Edinburgh University, the Findel Complex near Manchester, and the Cardiff Regeneration project for Vastint. Their achievements were highlighted by winning the UK Demolition Project of the Year (over £1m) at the British Demolition Awards, solidifying our Demolition Team’s leading position and reputation within the sector.

 

Remediation:

The division has consolidated its position in the market over the past twelve months, cementing its reputation as a turnkey enabling works provider with a number of high profile repeat business clients. With broader capability and increased capacity through both continued strategic hires and purchase of further new equipment the division has delivered almost £9M of multi-disciplinary projects across the defence, civil infrastructure and development sectors.

These have included construction of a car park at Lynfield Mount Hospital for the NHS trust and support of infrastructure and accommodation upgrades at St George’s Barracks. We have also secured a position on the prestigious Northern Gas Networks Remediation Framework and increased our profile with local authorities, including City of York Council, to further diversify our client portfolio and range of enterprise activities.

 

Passive Fire Protection:

The past year has been focused on developing the scale and technical competence of our delivery team, recruiting and training at all levels to position ourselves to maximise on this rapidly expanding sector. Our strategy has been based on structured, regionalised growth, leveraging on introductions via our other divisions to existing group clients and through targeted marketing campaigns so we continue to grow in a sustained way.

Work underpinned by increasing roster of Frameworks and a developing and trusted supplier base for specialist and time-critical components. We have developed strong relationships within Higher Education and NHS Trusts and targeting Councils, Hospitality/Hotels, Retail/Developers.

Recent success in winning major project work at the UKRIA through competitive tender has been a key testament to the divisions development and positioning within the sector. Whilst being a highly competitive and saturated marketplace, our steady delivery of a quality service, delivered by highly competent and professional operatives is being noticed within the industry and we are winning more and more work by referral.

 

Principal risks and uncertainties

The Company, and wider Group’s, decision making remains centred on a comprehensive and detailed understanding of the exposures faced by the organisation. The identification of risks to achieving business and strategic objectives, alongside the use of detailed analysis to inform and prioritise responses, remains key to balancing risk taken in line with risk appetite.

Within its highly regulated marketplace, loss of the Company’s HSE asbestos licence is a key business risk. The Company has a maximum three-year term licence that expires in September 2026. Conducting business in a safe away and providing a Zero Harm environment for our employees and stakeholders is paramount.

Given the current challenging economic environment for the construction sector generally, continuing to secure work at acceptable margins in open market conditions is a key business risk. The Company seeks to manage potential contractual risk transfer through delegated authorities that govern tenders and acceptance of customers. The Company has processes and procedures to ensure that work is undertaken in accordance with the corresponding contractual conditions.

RHODAR INDUSTRIAL SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Key performance indicators

The directors consider that our key performance indicators are those that communicate a summary of the performance and the strength of the company as a whole; those being turnover, gross profit margin, operating profit and retained reserves.

 

Year ended

December 2024

£’000

Year ended

December 2023

£’000

Turnover

67,645

56,609

Operating profit

4,263

2,879

Profit and loss account reserve

11,676

8,477

Gross profit margin

28%

24%

 

Future developments

 

With the rebrand and strategic realignment of Rhodar focused on combined enabling works packages, we are now actively delivering in this dynamic area. While continuing to grow each of our four core service lines independently, we will also identify opportunities to integrate multiple services into a single solution - offering clients enhanced value through improved cost efficiency and streamlined delivery.

 

Our ongoing strategy of securing targeted framework wins is strengthening our medium to long-term revenue confidence, enabling more effective horizon planning and supporting the continued growth of the business.

 

As part of our enabling strategy with developers and main contractors, we are placing strategic focus on urban regeneration projects—particularly those backed by government initiatives and secured funding streams, such as the Build to Rent (BTR) and Purpose-Built Student Accommodation (PBSA) sectors. This approach is proving to be a highly effective route for future work winning.

 

Our broad sector coverage allows the Group to strategically pivot and capitalise on the strongest growth opportunities, particularly during periods of uncertainty in other areas of the market. Key growth sectors for the Group are:

 

 

Section 172 Companies Act 2006

This report sets out how the Directors comply with the requirements of Section 172 Companies Act 2006 and how these requirements have impacted the Board’s decision making throughout 2024.

The Board’s primary responsibility is to promote the long-term success of the Company by creating and delivering sustainable value as well as contributing to wider society. The successful delivery of the long-term plans relies on key inputs and positive relationships with a wide range of stakeholders. The Board seeks to achieve this by setting out its strategy, monitoring performance against the Company’s strategic objectives and reviewing the implementation of the strategy. The Board also monitors the effectiveness of the Company’s systems of internal control, governance and risk management.

 

Engaging with stakeholders to deliver long term success is a key area of focus for the Board and all decisions take into account the impact on stakeholders. Obviously, stakeholders are impacted by, or benefit from, decisions made by the Board in different ways. However, it is the Board’s priority to ensure that the Directors have acted both individually and collectively in the way that they consider, in good faith, would be most likely to promote the success of the Company for the benefit of the members as a whole with regard to all its stakeholders and to the matters set out in paragraphs a-f of Section 172 of the Companies Act 2006.

RHODAR INDUSTRIAL SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

Engagement with employees

 

The Group goal is to provide an engaging and highly motivated environment, attractive career paths and benefits and empowerment to own and drive our vision. The Group recognises the importance of engaging employees to help them make their fullest contribution to the business, which is fundamental to achieving the Group’s strategy and long-term objectives. This is supported by our retention of our Investors in People status.

Employment of disabled persons

At Rhodar, as part of the wider Group, we are fully committed to equality in the workplace and engage, promote and train staff on the basis of their capabilities, qualifications and experience without discrimination of any kind. This is underpinned by the policies and practices embedded within the Company. All employees receive equal opportunity to progress within the Company ensuring we have access to the widest talent pool. We make reasonable adjustments to the business premises and working arrangements for disabled applicants and employees, including employees who become disabled during their employment.

Employee involvement

At Rhodar, employee engagement is very important to us and we actively seek the views and opinions of our staff throughout an employee engagement survey. Staff participation is encouraged at many levels, such as recognising colleagues for our values awards. Our performance management standard: In Pursuit of Excellence (IPOE) encompasses all aspects of our employee’s development, from performance management and management training to leadership development and charitable fundraising.

Staff Wellbeing

Staff wellbeing is a cornerstone of our organisational success and a key focus in fostering a positive and productive work environment. We are committed to supporting the physical, mental, and emotional health of our employees through comprehensive wellbeing initiatives, including flexible working arrangements, access to wellness programs, and promoting a healthy work-life balance. By investing in staff wellbeing, we aim to reduce stress, increase job satisfaction, and enhance overall employee engagement.

 

Engagement with suppliers, customers and others

The Board regularly reviews how the Group maintains positive relationships with all its stakeholders, including suppliers, customers, community and others.

Suppliers

The Directors understand the importance of the Group’s supply chain in delivering the long-term plans of the Group. One of the ways we can ensure effective relationships with our supply chain is to pay them on time.

We understand the importance of paying suppliers and subcontractors in a timely and professional manner and are committed to this practice. We adopt a flexible approach which matches payment terms to the requirements and capabilities of our suppliers, and consider the option of early payment to suppliers who are experiencing financial constraints.

Customers

Our broad customer base spans several sectors, industries and businesses and believe in strong collaborative relationships borne out of a mutual and beneficial understanding of process, procedure and communication. We work closely with our customers to understand their evolving needs so we can improve and adapt to meet them.

We have continued to deliver our ‘Built Environment’ Knowledge Seminars Roadshows, showcasing our four core services and the advantages of combined delivery within an enabling package to the built environment sector. These roadshows, delivered at venues across the UK, positioned Rhodar as leading subject-matter experts and solutions provider, reaching hundreds of existing and new clients, providing a unique opportunity for face-to-face interaction and knowledge share.

RHODAR INDUSTRIAL SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

Community

Social value and Sustainability have continued to be a strong feature of our activities through our extensive charitable activities. Our commitment to social responsibility is reflected in a range of impactful charity and sponsorship initiatives. The “Charity 6” campaign, driven by staff, sees six charities selected each year and supported through various fundraising efforts, engaging the entire business. We also support local causes, including the Blackburn & Darwen and Bradford NHS “You’re a Star” events, among many others. The 2024 “Crosspoint Challenge” in the Lake District raised £10,000 for WellChild, which takes our contribution to £55,000 for the charity in total over the years. Looking ahead, we’re excited to launch the “Yorkshire 3 Peaks Challenge” in 2025 for Martin House Children’s Hospice.

We are also proud to support major regional projects like Darwin Tower for The University of Edinburgh, with over £35,000 donated. Our focus on local employment and resourcing for key projects further strengthens our ties to the communities we serve, making a lasting impact in the areas where we operate.

Sustainability

As a Group, operating to ISO 14001, we already have well-developed environmental programmes across the business. In 2024 we appointed a Sustainability Consultancy advisory partner to support the Group in developing and delivering our long-term carbon emissions reduction strategy (“Carbon Reduction Flightpath”). This partnership will ensure we meet our legislative/statutory obligations, train/upskill our staff, and provide project-specific support either part of the bid process or delivery phase.

Further information is included within the Directors Report, where we have disclosed our Energy and Carbon Report for the year ended 31 December 2024.

 

Going Concern

 

The Company is a subsidiary of the Lexia Solutions Group Limited group (the “Group”) and has access to the group’s current banking facilities.

The Company, and wider Group, continues to recognise the economic and trading uncertainties resulting from the conflict in Ukraine, which continue to be closely monitored. Although the Group do not trade outside the UK, interruption to commodity supplies and rising prices due to the reduced supply is likely to impact the supply chain. After considering the factors and sensitivities outlined above for a range of scenarios, the Directors consider that the Group has adequate resources to continue in operational existence for the foreseeable future. Uncertainties and risk inherent in the construction industry may impact future performance, and management remain vigilant in monitoring and addressing these challenges proactively.

The Directors regularly review the working capital requirements of the Company, and wider Group, while reviewing sensitivities to future performance. The Directors have reviewed budgets and future forecasts and have satisfied themselves that the Company has sufficient financial and liquid resources to continue to operate for a period of at least 18 months from the date these financial statements are signed.

Overall, the Directors remain confident in their strategy and the strength of the business.

Accordingly, the Directors continue to adopt the going concern basis in preparing the Company and the wider Group accounts. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

On behalf of the board

J M Davy
Director
23 May 2025
RHODAR INDUSTRIAL SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -

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

Principal activities

The principal activity of the company continued to be that of asbestos abatement services, demolition and remediation services, together with passive fire protection.

Results and dividends

The results for the year are set out on page 15.

Ordinary dividends were paid amounting to £1,000,000. The directors do not recommend payment of a further dividend.

Directors

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

J Davies
J M Davy
A de Graft-Hayford
J Ellis
A Fisk
D P Hart
(Resigned 1 January 2025)
P Humphries
D M Payne
M J Woods
A P Howard
(Appointed 25 March 2025)
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Financial instruments

Interest rate risk

 

The Company's interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Company to cash flow interest rate risk. Borrowings issued at fixed rates expose the Company to fair value interest rate risk. During 2024, the Company's borrowings were denominated solely in Sterling.

 

The Company manages its cash flow interest rate risk by using fixed interest rate borrowings where possible.

Credit risk

Credit risk is managed on a Company basis. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks, as well as exposure to outstanding receivables. The Company's policy is to manage credit exposure to trading counterparties within defined trading limits. All of the Company's significant counterparties are assigned internal credit limits.

 

If any of the Company's customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, the Company assesses the credit quality of the customer taking into account its financial position, past experience and other factors.

RHODAR INDUSTRIAL SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
Capital risk management

The Company's objectives when managing capital are to safeguard its ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders. The objectives are also to maintain an optimal capital structure to reduce the cost of capital in the Company and to ensure financial covenants contained in the bank facility agreement are met throughout the year. In order to maintain or adjust the capital structure, the Company may vary the amount of dividends paid to shareholders.

 

Business relationships and employee engagement

 

The Company is committed to ensuring it maintains strong relationships with all stakeholders (including employees) and actively engages with them on an ongoing basis. Further details are provided in the Strategic Report.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The Company is committed to ensuring it maintains strong relationships with all stakeholders (including employees) and actively engages with them on an ongoing basis. Further details are provided in the Strategic Report.

Auditor

BHP LLP 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.

RHODAR INDUSTRIAL SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
Energy and carbon report
RHODAR INDUSTRIAL SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -

Lexia Solutions Group GHG emissions and energy use data for period 1st January 2023 to 31st December 2024:

Annual Energy Consumption (kWh)

Current Reporting Year

Comparison Year

01/01/2024 - 31/12/2024

01/01/2023 - 31/12/2023

Scope 1

13,102,969

16,972,295

Stationary Combustion

200,284

163,102

Mobile Combustion

12,902,685

16,809,193

Process Emissions

N/A

N/A

Fugitive Emissions

N/A

N/A

Scope 2

315,042

374,033

Purchased Electricity

315,042

374,033

Purchased Steam, Heat, Cooling

-

-

Scope 3 (Grey Fleet)

20,628

21,127

Grey Fleet

20,628

21,127

Total

13,438,640

17,367,455

 

Annual Carbon Emissions (tCO2e)

Current Reporting Year

Comparison Year

01/01/2024 - 31/12/2024

01/01/2023 - 31/12/2023

Scope 1

3,231

4,257

Stationary Combustion

37

30

Mobile Combustion

3,195

4,227

Process Emissions

-

-

Fugitive Emissions

-

-

Scope 2 (Location Based)

65

77

Scope 2 (Market Based)

65

77

Purchased Electricity
(Location Based)

65

77

Purchased Electricity
(Market Based)

65

77

Purchased Steam, Heat, Cooling

-

-

Scope 3 (Grey Fleet)

6.3

6.5

Grey Fleet

6.3

6.5

Total (Location Based)

3,303

4,341

Total (Market Based)

3,303

4,341

Direct Biogenic Emissions

286

291

RHODAR INDUSTRIAL SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -

Mandatory Greenhouse Gas Report intensity ratios are calculated by dividing emissions by an organisation-specific metric.

In the case of Lexia Solutions Group, the metrics chosen to normalise emissions: Turnover (GBP), FTE (FTE).

The intensity ratios as well as the business metrics are detailed below. The intensity ratio is calculated based on total emissions (location based).

Carbon Emissions per Business Metric

Current Reporting Year

Comparison Year

01/01/2024 - 31/12/2024

01/01/2023 - 31/12/2023

Emission per Turnover
(kgCO2e/GBP)

0.1

0.1

Emission per FTE
(kgCO2e/FTE)

6,978

9,239

 

Business Metric

Current Reporting Year

Comparison Year

01/01/2024 - 31/12/2024

01/01/2023 - 31/12/2023

Turnover (GBP)

67,645,000

56,609,000

FTE (FTE)

500

487

Please note that the year 1st January 2023 to 31st December 2023 (Lexia Solutions Group’s emissions reporting baseline) was re-calculated and re-baselined with a more accurate dataset in 2025, resulting in new energy and emissions figures compared to the previous SECR report for 2023.

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.

On behalf of the board
J M Davy
Director
23 May 2025
RHODAR INDUSTRIAL SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -

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.

RHODAR INDUSTRIAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RHODAR INDUSTRIAL SERVICES LIMITED
- 12 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other 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:

RHODAR INDUSTRIAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RHODAR INDUSTRIAL SERVICES LIMITED (CONTINUED)
- 13 -
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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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;

 

RHODAR INDUSTRIAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RHODAR INDUSTRIAL SERVICES LIMITED (CONTINUED)
- 14 -

To address the risks of fraud through management bias and override 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 director’s and other management and the inspection of regulatory and legal correspondence.

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

Chris Neale (Senior Statutory Auditor)
For and on behalf of BHP LLP, Statutory Auditor
Chartered Accountants
Mayesbrook House
Lawnswood Business Park
Redvers Close
Leeds
LS16 6QY
23 May 2025
RHODAR INDUSTRIAL SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
2024
2023
Notes
£000
£000
Turnover
3
67,645
56,609
Cost of sales
(48,716)
(43,020)
Gross profit
18,929
13,589
Administrative expenses
(14,666)
(10,710)
Operating profit
4
4,263
2,879
Interest payable and similar expenses
8
(50)
(107)
Profit before taxation
4,213
2,772
Tax on profit
9
(14)
1,356
Profit for the financial year
4,199
4,128

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

RHODAR INDUSTRIAL SERVICES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 16 -
2024
2023
Notes
£000
£000
£000
£000
Fixed assets
Tangible assets
11
2,615
1,856
Current assets
Stocks
12
240
177
Debtors
13
19,321
15,332
Cash at bank and in hand
722
32
20,283
15,541
Creditors: amounts falling due within one year
14
(11,222)
(8,732)
Net current assets
9,061
6,809
Total assets less current liabilities
11,676
8,665
Creditors: amounts falling due after more than one year
15
-
0
(188)
Net assets
11,676
8,477
Capital and reserves
Called up share capital
19
-
0
-
0
Profit and loss reserves
11,676
8,477
Total equity
11,676
8,477
The financial statements were approved by the board of directors and authorised for issue on 23 May 2025 and are signed on its behalf by:
J M Davy
Director
Company registration number 06426331 (England and Wales)
RHODAR INDUSTRIAL SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
Share capital
Profit and loss reserves
Total
Notes
£000
£000
£000
Balance at 1 January 2023
-
0
5,599
5,599
Year ended 31 December 2023:
Profit and total comprehensive income
-
4,128
4,128
Dividends
10
-
(1,250)
(1,250)
Balance at 31 December 2023
-
0
8,477
8,477
Year ended 31 December 2024:
Profit and total comprehensive income
-
4,199
4,199
Dividends
10
-
(1,000)
(1,000)
Balance at 31 December 2024
-
0
11,676
11,676
RHODAR INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
1
Accounting policies
Company information

Rhodar Industrial Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit C Astra Park, Parkside Lane, Leeds, West Yorkshire, United Kingdom, LS11 5SZ.

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.

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 £000.

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Lexia Solutions Group Limited. These consolidated financial statements are available from its registered office, Unit C, Astra Park, Parkside Lane, Leeds, West Yorkshire, England, LS11 5SZ.

1.2
Going concern

The Company is a subsidiary of the Lexia Solutions Group Limited group (the “Group”) and has access to the group’s current banking facilities. true

 

The uncertainty as to the future impact on the Company, and the wider Group, of the UK economy and the wider macroeconomic conditions has been separately considered as part of the Director’s consideration of the going concern basis of preparation.

 

The Directors have prepared cash flow forecasts, based on a series of current trading forecasts and taking into account current borrowing facilities, for a period of 18 months from the date of approval of these financial statements, which indicate that the Group will have sufficient funds to meet its liabilities as they fall due for that period. Under this scenario there would be no breach of working capital facility as there is sufficient headroom. There are no material capital repayments of debt falling due within the forecast period.

 

The Directors believe that it remains appropriate to prepare the financial statements on a going concern basis.

RHODAR INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
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 contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Tangible fixed assets

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

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

Short-term leasehold property
Straight line over the term of the lease
Plant and equipment
20% reducing balance
Office equipment
20-33% per annum reducing balance
Motor vehicles
20% per annum 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 credited or charged to profit or loss.

1.5
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. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

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

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

RHODAR INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.6
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.

1.7
Cash and cash equivalents

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

1.8
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

RHODAR INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.9
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.

1.10
Taxation

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

RHODAR INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 22 -
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. Such assets and liabilities are not recognised if the timing 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 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. 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.

1.11
Retirement benefits

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

 

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

Amounts due from lessees under finance leases are recognised as receivables at the amount of the company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the company’s net investment outstanding in respect of leases.

RHODAR INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
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.

Debtor recoverability

Whilst there are controls in place, debtor recoverability is inherently susceptible to the financial stability of the respective customers. Management must therefore make estimates for provision levels to be made.

 

The judgements, estimates and associated assumptions necessary to calculate the above provisions are based on historical experiences, current industry knowledge and other reasonable factors.

Amounts recoverable on contracts

The Company conducts a significant portion of its business under contracts with customers. The Company accounts for revenue on projects as performance on contracts progresses. This method places considerable importance on accurate estimates of the extent of progress towards completion and may involve estimates on the scope of deliveries and services required for fulfilling the contractually defined obligations. These significant estimates include total contract costs, total contract revenues, contract risks and other judgements. Such changes in estimates may lead to an increase or decrease of revenues.

3
Turnover
2024
2023
£000
£000
Turnover analysed by class of business
Demolition & Remediation
19,864
21,969
Fire Protection
3,677
1,867
Asbestos Abatement
44,104
32,773
67,645
56,609

All of the turnover arose solely within the United Kingdom.

4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£000
£000
Depreciation of owned tangible fixed assets
127
43
Depreciation of tangible fixed assets held under finance leases
170
214
Operating lease charges
4,605
3,579
RHODAR INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the company
28
28
6
Employees

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

2024
2023
Number
Number
Administration staff
289
259
Production staff
157
147
Total
446
406

Their aggregate remuneration comprised:

2024
2023
£000
£000
Wages and salaries
22,438
17,048
Social security costs
2,284
1,845
Pension costs
634
843
25,356
19,736
7
Directors' remuneration
2024
2023
£000
£000
Remuneration for qualifying services
887
852
Company pension contributions to defined contribution schemes
151
88
1,038
940
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£000
£000
Remuneration for qualifying services
191
170
Company pension contributions to defined contribution schemes
60
41
RHODAR INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
7
Directors' remuneration
(Continued)
- 25 -

During the year retirement benefits were accruing to 7 Directors (2023: 7) in respect of defined contribution pension schemes.

8
Interest payable and similar expenses
2024
2023
£000
£000
Interest on bank overdrafts and loans
4
59
Interest on finance leases and hire purchase contracts
46
48
50
107
9
Taxation
2024
2023
£000
£000
Current tax
UK corporation tax on profits for the current period
37
(23)
Deferred tax
Origination and reversal of timing differences
(23)
(1,333)
Total tax charge/(credit)
14
(1,356)

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£000
£000
Profit before taxation
4,213
2,772
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
1,053
652
Tax effect of expenses that are not deductible in determining taxable profit
38
31
Group relief
(74)
(169)
Deferred tax adjustments in respect of prior years
-
0
(3)
Movement in deferred tax not recognised
(1,084)
(1,876)
Adjustments to tax charge in respect of previous periods
-
0
(23)
Remeasurement of deferred tax for changes in tax rates
-
0
32
Other tax adjustments, reliefs and transfers
81
-
0
Taxation charge/(credit) for the year
14
(1,356)
RHODAR INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Taxation
(Continued)
- 26 -

Factors that may affect future tax charges

 

The Company has tax losses of £14.1m as at 31 December 2024 (2023: £17.3m). A deferred tax asset of £1,356k (2023: £1,333k) in respect of £5,424k (2023: £5,332k) of those losses has been recognised based on forecast taxable profits. There is uncertainty in use of other losses hence no further asset has been recognised other than a deferred tax asset of £531,000 (2023: £251,000) has been recognised to offset the deferred.

 

10
Dividends
2024
2023
£000
£000
Final paid
1,000
1,250
11
Tangible fixed assets
Short-term leasehold property
Plant and equipment
Office equipment
Motor vehicles
Total
£000
£000
£000
£000
£000
Cost
At 1 January 2024
51
2,525
42
20
2,638
Additions
14
681
38
-
0
733
Transfers
130
922
-
0
-
0
1,052
At 31 December 2024
195
4,128
80
20
4,423
Depreciation and impairment
At 1 January 2024
12
717
33
20
782
Depreciation charged in the year
20
272
5
-
0
297
Transfers
97
632
-
0
-
0
729
At 31 December 2024
129
1,621
38
20
1,808
Carrying amount
At 31 December 2024
66
2,507
42
-
0
2,615
At 31 December 2023
39
1,808
9
-
0
1,856

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£000
£000
Plant and equipment
1,277
1,856

During the year assets were transferred in at NBV from other group companies. This has been included within cost and accumulated depreciation. These assets will continue to be depreciated in line with their useful lives.

RHODAR INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
12
Stocks
2024
2023
£000
£000
Raw materials and consumables
240
177

There is no material difference between the value of stock above and the replacement cost.

13
Debtors
2024
2023
Amounts falling due within one year:
£000
£000
Trade debtors
7,868
7,944
Gross amounts owed by contract customers
5,287
4,664
Corporation tax recoverable
-
0
23
Amounts owed by group undertakings
1,528
1,081
Invoice discounting facility
2,957
-
0
Other debtors
15
34
Prepayments and accrued income
310
253
17,965
13,999
Deferred tax asset (note 17)
1,356
1,333
19,321
15,332

All amounts owed by group undertakings are interest free and are repayable on demand.

14
Creditors: amounts falling due within one year
2024
2023
Notes
£000
£000
Obligations under finance leases
16
188
609
Invoice discounting facility
-
0
612
Trade creditors
2,623
1,943
Amounts owed to group undertakings
2,416
111
Corporation tax
37
-
0
Other taxation and social security
1,966
2,128
Other creditors
305
249
Accruals and deferred income
3,687
3,080
11,222
8,732

All amounts owed to group undertakings are interest free, carry no security and are repayable on demand.

 

The obligations under finance lease agreements are secured against the asset to which they relate.

 

The invoice discounting facility accrues interest at a rate of 2% above Base Rate.

RHODAR INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£000
£000
Obligations under finance leases
16
-
0
188

The obligations under finance lease agreements are secured against the asset to which they relate.

16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£000
£000
Within one year
188
609
In two to five years
-
0
188
188
797

The obligations under finance lease agreements are secured against the asset to which they relate.

17
Deferred taxation

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

Assets
Assets
2024
2023
Balances:
£000
£000
Fixed asset timing difference
(552)
(339)
Short term timing difference
21
88
Losses and other deductions
531
251
Deferred tax losses
1,356
1,333
1,356
1,333
2024
Movements in the year:
£000
Asset at 1 January 2024
(1,333)
Credit to profit or loss
(23)
Asset at 31 December 2024
(1,356)
RHODAR INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
17
Deferred taxation
(Continued)
- 29 -

Whilst there are controls in place around the determination of the Deferred Tax Asset, the balance recognised by the company is subject to a high degree of estimation and uncertainty given the nature of how it is determined.

 

The judgement and estimation is based on the assumptions made on the forecasted future profits of the business. The company will prepare future budgets and forecasts over a 2-5 year period. The estimated profitability is used to then determine the recoverability on the deferred tax asset.

18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
634
843

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 capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£000
£000
Issued and fully paid
Ordinary shares of £1 each
100
100
-
0
-
0

The rights of the shares are as follows:

 

a. Each share is entitled to receive notice of, attend at and vote at general meetings of the Company.

b. Each share is entitled to participate in the assets available for distribution to the Company's shareholders on a winding up of the Company.

c. Each share is entitled to receive dividends.

d. The shares are non-redeemable.

20
Financial commitments, guarantees and contingent liabilities

The Company is party to a cross guarantee in relation to the Group's bank borrowings, which at 31 December 2024 amounted to a debtor balance of £3,154,000 (2023: £1,834,000).

21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£000
£000
Within one year
1,470
969
Between two and five years
2,267
2,208
In over five years
623
-
0
4,360
3,177
RHODAR INDUSTRIAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
22
Related party transactions

The company has taken advantage of the available exemption conferred by Section 33.1A of FRS102 not to disclose transactions with wholly owned members of the Group.

 

During the year the Company acquired services from Tradeslink Asbestos Services Limited, a wholly owned company of the ultimate controlling party, J M Davy, for a total value of £460,000 (2023: £408,000). The balance outstanding at the year end in relation to these transactions was £Nil (2023: £Nil).

 

During the year the Company acquired services from East Riding Laboratories Limited, connected to key management of the Company, for a total value of £3,000 (2023: £4,000). The balance outstanding at the year end in relation to these transactions was £100 (2023: £Nil).

23
Ultimate controlling party

The immediate parent undertaking of the Company is Lexia Solutions Group Limited (05035069), a company incorporated in the United Kingdom.

 

Lexia Solutions Group Limited is the parent undertaking of the smallest and largest group of undertakings to consolidate these financial statements at 31 December 2024. The consolidated financial statements of Lexia Solutions Group Limited are available from their registered office at Unit C, Astra Park, Parkside Lane, Leeds, LS11 5SZ.

 

Lexia Solutions Trustees Limited is considered to be the ultimate controlling party. Lexia Solutions Trustees Limited (12903620) is a company limited by guarantee incorporated in the United Kingdom with registered office at Unit C Astra Park, Parkside Lane, Leeds, West Yorkshire, United Kingdom, LS11 5SZ.

 

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