The directors present the strategic report for the year ended 31 December 2024.
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:
Rail: Expansion of the team, framework renewals, key projects like Lords Covered Way and Mersey Tunnels.
Nuclear/Defence: Growth at AWE and Sellafield with specialist, security-cleared teams. Recent ‘Principal Contractor Status at AWE – major springboard to expanding our activities on this site.
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.
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:
Nuclear / Nuclear Defence: AWE and Sellafield are seen as areas for targeted growth over the next 2 years
Defence: Defence Estate Optimisation (DEO) and existing frameworks
Network Rail: Infrastructure, focus on facility delivery teams
Government Funding Initiatives: Carbon reduction programmes in public buildings
Scotland: Energy and Utilities (Scottish Power, etc)
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.
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.
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
The directors present their annual report and financial statements for the year ended 31 December 2024.
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.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
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 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.
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.
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.
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.
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 | 65 | 77 |
Purchased Electricity | 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 |
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 | 0.1 | 0.1 |
Emission per 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.
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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.
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).
Basis for 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience of the trade;
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;
we assessed the extent of compliance with the laws and regulations considered above through making enquiries of management; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risks of fraud through management bias and override controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
discussions with senior management regarding relevant regulations and reviewing the company’s legal and professional fees.
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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
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.
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.
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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel and group companies.
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.
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.
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, 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.
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.
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, 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.
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.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
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.
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.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
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.
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.
All of the turnover arose solely within the United Kingdom.
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
During the year retirement benefits were accruing to 7 Directors (2023: 7) in respect of defined contribution pension schemes.
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:
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.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
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.
There is no material difference between the value of stock above and the replacement cost.
All amounts owed by group undertakings are interest free and are repayable on demand.
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.
The obligations under finance lease agreements are secured against the asset to which they relate.
The obligations under finance lease agreements are secured against the asset to which they relate.
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
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.
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.
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.
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).
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:
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).