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Registered number: SC161470
SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
COMPANY INFORMATION
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Sodexo Corporate Services (No.2) Limited
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Chartered Accountants and Statutory Auditor
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
CONTENTS
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Director's Responsibilities Statement
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Independent Auditor's Report
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Statement of Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
The director presents their Strategic Report and audited financial statements for the year ended 31 August 2024.
The principal activity of the Company is to act as a holding company. The Company holds a 55% shareholding in Sodexo Remote Sites Holdings Limited.
Performance of the business
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As shown in the Statement of Comprehensive Income, the Company’s profit after taxation for the year ended 31 August 2024 amounted to £5,591,000 (2023: £741,000), as a result of a dividend of £5,500,000 (2023: £715,000) received during the year from its subsidiary undertaking.
The Statement of Financial Position shows that the Company has net assets of £5,734,000 as at 31 August 2024 (2023: £5,643,000).
Dividends totalling £5,500,000 were declared and paid during the year (2023: £715,000) to its parent company.
The Company's principal activity continues to be that of a holding company and no future developments are expected.
Principal risks and uncertainties
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The Company is exposed to financial risk through its financial assets and liabilities. The key financial risk is that the proceeds from financial assets are not sufficient to fund the obligations arising from liabilities as they fall due.
Credit risk and Liquidity risk
The Company’s principal financial risk exposure is to a level of credit risk associated with its intercompany debtors, which the director considers to be normal. The director considers that no significant credit risk arises from such balances as they are supported by the wider group.
The Company forms a part of the Sodexo UK and Ireland group of companies, together the “UK&I Group”. The UK&I Group utilise a cash pooling facility that the Company can utilise and the director considers that this mitigates the liquidity risk.
This report was approved by the board and signed on its behalf.
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
The director presents their report and the financial statements for the year ended 31 August 2024.
Matters covered in the Strategic Report
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As permitted by paragraph 1A of Schedule 7 to the Large and Medium-Sized Companies and Groups (Accounts
and Reports) Regulations 2008 certain matters which are required to be disclosed in the Director's Report have
been omitted as they are included in the Strategic Report on page 1. These matters relate to the performance of
the business, future developments and principal risks and uncertainties as required by the Companies Act 2006.
The profit for the year, after taxation, amounted to £5,591,000 (2023: £741,000).
Dividends totalling £5,500,000 were paid in the year (2023: £715,000).
The directors who served during the year were:
Sean Haley (resigned 31 December 2024)
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The Company made no political donations or incurred any political expenditure during the year (2023: £Nil).
Post balance sheet events
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On 19 November 2024 the Company’s subsidiary, Sodexo Remote Sites Holdings Limited, declared an interim dividend payable to the Company amounting to £550,000. On 19 November 2024, the Company declared an interim dividend amounting to £500,000 payable to its immediate parent company, Sodexo Holdings Limited, a company registered in England and Wales, in respect of the year ending 31 August 2025.
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
The director continues to adopt the going concern basis in the preparation of the financial statements.
The Company forms part of the Sodexo UK and Ireland group of companies, together the "UK&I Group", which is part of the wider Sodexo Group headed by Sodexo S.A., a company incorporated in France. The principal activity of the UK&I Group is to provide facilities management and catering services across the UK and Ireland, operating across various segments such as education, sports and leisure, corporate services, government, and healthcare.
The Company meets its day to day working capital requirements from operational cash flows, cash pooling and intercompany loan arrangements within the UK&I Group. The UK&I Group has remained resilient throughout the adverse changes in the economic environment as a result of tight management of cash and balance sheet, and strong retention of existing contracts, alongside the spread of business across food and facilities management services, and across public and private sector clients as well as the strong inflation management processes in place. In addition, the UK&I Group continues to see opportunities for organic growth with new contracts in the pipeline. However, we remain prepared for further macro-economic impacts with agility, good commercial management, and careful cost control continuing to be critical.
To inform the basis of preparation of these accounts, the director has considered cash and profit forecasts for forward trade of the UK&I Group for a period of at least 12 months from the date of approval of these accounts, based on the facts they have as at the date of approval of these financial statements. These forecasts include a severe but plausible downside scenario which models a deterioration in gross margin as a result of operational performance, a downturn in revenues due to contracts of key clients not being renewed and the under recovery of inflation. The forecasts indicate that the UK&I Group will continue to be resilient in the current macroeconomic environment. Routine peaks in cash requirements during the trading cycle will be funded from an overdraft facility with the parent company, Sodexo S.A., if necessary. In a worst-case scenario, the Company could draw upon additional funding from its ultimate parent company to enable it to meet its liabilities as they fall due during the twelve-month period from the signing of these accounts.
Sodexo S.A., which currently has a strong credit rating of Baa1 from Moody's Investors Service, has indicated its intention, by a letter of support, to continue to make available such funds as are needed by the Company during the going concern assessment period. As with any company placing reliance on other group entities for financial support, the director acknowledges that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.
Based on these analyses and facts, the director believes that the Company will be able to continue to meet its liabilities as they fall due for at least the twelve-month period following the date of approval of these accounts and therefore has prepared the financial statements on a going concern basis.
Qualifying third party indemnity provisions
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Qualifying indemnity insurance was in place for the director during the year which was also in force at the date of this report.
Disclosure of information to auditor
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Each of the persons who is a director at the time when this Director's Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
The auditor, Forvis Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 101 'Reduced Disclosure Framework'. Under company law the director 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 audited financial statements, the director is 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;
∙prepare the financial statements on the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
The director is 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 to 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.
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
Opinion
We have audited the financial statements of Sodexo Remote Sites Support Services Limited (“the Company”) for the year ended 31 August 2024 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and notes to the financial statements, including a summary of material accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework" (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
∙give a true and fair view of the state of the Company's affairs as at 31 August 2024 and of its profit for the year then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the “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 director's 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 director with respect to going concern are described in the relevant sections of this report.
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SODEXO REMOTE SITES SUPPORT SERVICES LIMITED (CONTINUED)
Other information
The other information comprises the information included in annual report, other than the financial statements and our auditor’s report thereon. The director is 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 the audit:
∙the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In 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 and Director's 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:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of director's remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SODEXO REMOTE SITES SUPPORT SERVICES LIMITED (CONTINUED)
Responsibilities of the director
As explained more fully in the Director's Responsibilities Statement set out on page 5, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or has 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 the financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
Based on our understanding of the Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: anti-money laundering regulation.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
∙Inquiring of management and, where appropriate, those charged with governance, as to whether the Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
∙Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
∙Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
∙Considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation and the Companies Act 2006.
In addition, we evaluated the director's and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to: posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions.
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SODEXO REMOTE SITES SUPPORT SERVICES LIMITED (CONTINUED)
Our audit procedures in relation to fraud included but were not limited to:
∙Making enquiries of the director and management on whether they had knowledge of any actual, suspected or alleged fraud;
∙Gaining an understanding of the internal controls established to mitigate risks related to fraud;
∙Discussing amongst the engagement team the risks of fraud; and
∙Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of the audit 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.
Richard Karmel (Senior statutory auditor)
for and on behalf of
Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
30 Old Bailey
London
EC4M 7AU
23 May 2025
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial year
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There was no other comprehensive income for 2024 (2023: £NIL).
All amounts relate to continuing operations.
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The notes on pages 13 to 23 form part of these financial statements.
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
REGISTERED NUMBER: SC161470
STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2024
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Investments in subsidiaries
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Debtors: amounts falling due after more than one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 23 form part of these financial statements.
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
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The notes on pages 13 to 23 form part of these financial statements.
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
Sodexo Remote Sites Support Services Limited, a private company limited by shares, registered in Scotland. The Company’s registered number is SC161470 and its registered office is 4th Floor, The Exchange No. 1, 62 Market Street, Aberdeen, Scotland, AB11 5PJ.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
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Financial Reporting Standard 101 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirements of IFRS 7 Financial Instruments: Disclosures;
∙the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
∙the requirements of IAS 7 Statement of Cash Flows;
∙the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;
∙the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures;
∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member; and
∙the requirements of IAS12 Income Taxes, paragraph 12.88B.
The Company is exempt by virtue of s401 of the Companies Act 2006 from the requirement to prepare group financial statements. These financial statements present information about the Company as an individual undertaking and not about its group.
The Company’s ultimate parent undertaking, Sodexo S.A., a company incorporated in France, includes the Company in its consolidated financial statements. The consolidated financial statements of Sodexo S.A. are prepared in accordance with International Financial Reporting Standards and are available to the public and may be obtained from The Secretary, Sodexo S.A., 255 quai de la Bataille de Stalingrad, 92130 Issy les Moulineaux, France.
As the consolidated financial statements of Sodexo S.A., included the disclosures equivalent to those required by FRS101, the Company has also taken the exemptions available in respect of the following disclosures:
∙the requirements paragraph 4(a) of IFRS10 Consolidated Financial Statements and elected not to prepare consolidated financial statements.
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements.
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
2.Accounting policies (continued)
The director continues to adopt the going concern basis in the preparation of the financial statements.
The Company forms part of the Sodexo UK and Ireland group of companies, together the "UK&I Group", which is part of the wider Sodexo Group headed by Sodexo S.A., a company incorporated in France. The principal activity of the UK&I Group is to provide facilities management and catering services across the UK and Ireland, operating across various segments such as education, sports and leisure, corporate services, government, and healthcare.
The Company meets its day to day working capital requirements from operational cash flows, cash pooling and intercompany loan arrangements within the UK&I Group. The UK&I Group has remained resilient throughout the adverse changes in the economic environment as a result of tight management of cash and balance sheet, and strong retention of existing contracts, alongside the spread of business across food and facilities management services, and across public and private sector clients as well as the strong inflation management processes in place. In addition, the UK&I Group continues to see opportunities for organic growth with new contracts in the pipeline. However, we remain prepared for further macro-economic impacts with agility, good commercial management, and careful cost control continuing to be critical.
To inform the basis of preparation of these accounts, the director has considered cash and profit forecasts for forward trade of the UK&I Group for a period of at least 12 months from the date of approval of these accounts, based on the facts they have as at the date of approval of these financial statements. These forecasts include a severe but plausible downside scenario which models a deterioration in gross margin as a result of operational performance, a downturn in revenues due to contracts of key clients not being renewed and the under recovery of inflation. The forecasts indicate that the UK&I Group will continue to be resilient in the current macroeconomic environment. Routine peaks in cash requirements during the trading cycle will be funded from an overdraft facility with the parent company, Sodexo S.A., if necessary. In a worst-case scenario, the Company could draw upon additional funding from its ultimate parent company to enable it to meet its liabilities as they fall due during the twelve-month period from the signing of these accounts.
Sodexo S.A., which currently has a strong credit rating of Baa1 from Moody's Investors Service, has indicated its intention, by a letter of support, to continue to make available such funds as are needed by the Company during the going concern assessment period. As with any company placing reliance on other group entities for financial support, the director acknowledges that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.
Based on these analyses and facts, the director believes that the Company will be able to continue to meet its liabilities as they fall due for at least the twelve-month period following the date of approval of these accounts and therefore has prepared the financial statements on a going concern basis.
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Impact of new international reporting standards, amendments and interpretations
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Standards, amendments and interpretations adopted in the current financial year ended 31 August 2024.
The adoption of the following mentioned standards, amendments and interpretations in the current year have not had a material impact on the Company's financial statements:
UK adopted and EU endorsed periods beginning on or after 1 January 2023
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
2.Accounting policies (continued)
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Impact of new international reporting standards, amendments and interpretations (continued)
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∙IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements: Amendments in relation to the disclosure of accounting policies.
∙IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Amendments in relation to the definition of accounting estimates.
∙IAS 12 Income Taxes: Amendments in relation to deferred tax related to assets and liabilities arising from a single transaction.
∙IFRS 17 Insurance Contracts and Amendments to IFRS 17 Insurance Contracts, including IFRS 17 Insurance Contracts: Amendments relation to the initial application of IFRS 17 and IFRS 9.
The accounting policies which follow set out those policies which were applied in preparing the financial statements for the year ended 31 August 2024.
Standards, amendments and interpretations in issue but not yet effective
The adoption of the following mentioned standards, amendments and interpretations in future years are not expected to have a material impact on the Company’s financial statements.
UK adopted and EU endorsed periods beginning on or after 1 January 2024
∙IFRS 16 Leases (Amendment): Lease Liability in a Sale and Leaseback.
∙IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments Disclosures (Amendment): Supplier Finance Arrangements.
∙IAS 1 Presentation of Financial Statements (Amendment): Classification of Liabilities as Current or Non-current and Classification of Non-current Liabilities with Covenants.
UK adopted (not EU endorsed) periods beginning on or after 1 January 2025
∙IAS 21 The Effects of Changes in Foreign Exchange Rates (Amendment): Lack of Exchangeability.
Subject to UK- adoption and EU endorsement periods beginning on or after 1 January 2026
∙IAS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures (Amendment): Classification and Measurement of Financial Instruments
Annual Improvements to IFRS Accounting Standards - Volume 11
∙IFRS 1 - First-time Adoption of International Financial Reporting Standards
∙IFRS 7 - Financial Instruments: Disclosures
∙IFRS 9 - Financial Instruments
∙IFRS 10 - Consolidated Financial Statements
∙IAS 7 - Statement of Cash Flows
Subject to UK- adoption and EU endorsement periods beginning on or after 1 January 2027
IFRS 18 Presentation and Disclosure in Financial Statements 1 January 2027
IFRS 19 Subsidiaries without Public Accountability: Disclosures 1 January 2027
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
2.Accounting policies (continued)
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Impact of new international reporting standards, amendments and interpretations (continued)
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New accounting standards and interpretations
The Company applied the same standards, interpretations and accounting policies in 2024 as applied in its financial statements for the year ended 31 August 2023, except for changes required to meet new IFRS requirements applicable from 1 January 2023.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP. All amounts are rounded to the nearest £1,000.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income. All other foreign exchange gains and losses are presented in Statement of Comprehensive Income within 'administrative expenses'.
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
2.Accounting policies (continued)
Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial recognition of goodwill; the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised.
Investments in subsidiaries are measured at cost less accumulated impairment.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset, and the net amount reported in the Statement of Financial Position when there is an 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.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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Non-derivative financial instruments
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Non-derivative financial instruments comprise investments in equity and debt securities, trade and other debtors, cash and cash equivalents, loans and borrowings, and trade and other creditors.
Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders.
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
2.Accounting policies (continued)
At each reporting date, the Company reviews the carrying value of its investments 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.
The 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 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. Any resulting changes are recognised in the Statement of Comprehensive Income in the period to which they relate.
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Judgements in applying accounting policies and key sources of estimation uncertainty
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In the application of the Company’s accounting policies the director is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. These estimates and 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 if the revision only affects that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and judgements that have the most material impact on the financial performance and position of the Company are as follows:
(i) Impairment of investments in subsidiary undertakings
Impairment is made where there is a permanent diminution in value of the investment in subsidiary undertakings. This impairment assessment requires management judgement in calculating the future profitability of the subsidiary undertakings and an impairment is made where circumstances exist that indicate there is a permanent diminution of the investment value. Management carries out an impairment assessment where there are indicators, such as losses or changes in market conditions, that an impairment may be required.
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Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
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The Company has no employees other than the directors, who did not receive any remuneration (2023 - £NIL).
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Dividends received from group undertakings
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Interest receivable and similar income
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Interest receivable from group undertakings
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Interest payable and similar expenses
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Other loan interest payable
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Current tax on profits for the year
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Taxation on profit on ordinary activities
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
9.Taxation (continued)
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Factors affecting tax charge for the year
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The company is a member of the Sodexo S.A. Group which is expected to be a MNE within the scope of Pillar Two. The Group has carried out preliminary work and does not anticipate any significant impact from this measure in the UK. As at 31 August 2024, no deferred tax has been recognised in application of the amendment to IAS 12 concerning the mandatory exemption from recognition of deferred tax in the financial statements in relation to Pillar Two income tax.
The total tax charge is lower (2023 - charge is lower) than the standard rate of corporation tax of 25% (2023 - 21.515%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 21.5%)
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Income not subject to tax
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Expenditure not deductible for tax purposes
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Total tax charge for the year
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Investments in subsidiary companies
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
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The following was a subsidiary undertaking of the Company:
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Sodexo Remote Sites Holdings Limited
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4th Floor
The Exchange No 1
62 Market Street
Aberdeen
AB11 5PJ
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The principal activity of the company was that of a holding company.
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Debtors: Amounts falling due after more than one year
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Amounts owed by group undertakings
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Included within amounts owed by group undertakings is a total of £7,225,000 of intercompany loans repayable in October 2026 on which interest is charged at a rate of 0.5% + Bank of England base rate.
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Disclosure of the terms and conditions attached to the non-equity shares is made in note 13.
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SODEXO REMOTE SITES SUPPORT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
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Creditors: Amounts falling due after more than one year
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Share capital treated as debt
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The share capital treated as debt relate to 2,877,845 cumulative 6% preference shares of £1 each. The preference shares are not redeemable in any situation other than a winding up of the company. The cumulative 6% preference shares carry a fixed cumulative preferential dividend at the rate of 6%.
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Shares classified as equity
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Allotted, called up and fully paid
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2 (2023 - 2) Ordinary shares of £1.00 each
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The Company has one class of equity ordinary shares and each share carries one voting right per share, but no right to fixed income.
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Shares classified as debt
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Allotted, called up and fully paid
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2,877,845 (2023 - 2,877,845) Preference shares of £1.00 each
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Post balance sheet events
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On 19 November 2024 the Company’s subsidiary, Sodexo Remote Sites Holdings Limited, declared an interim dividend payable to the Company amounting to £550,000. On 19 November 2024, the Company declared an interim dividend amounting to £500,000 payable to its immediate parent company, Sodexo Holdings Limited, a company registered in England and Wales, in respect of the year ended 31 August 2025.
The Company is a wholly owned subsidiary of Sodexo Holdings Limited, a company registered in England and Wales.
The smallest group in which the results of the Company are consolidated is that headed by Sodexo S.A.
The ultimate parent company is Sodexo S.A., a company incorporated in France. Copies of the consolidated financial statements of Sodexo S.A. may be obtained from The Secretary, Sodexo S.A., 255 quai de la Bataille de Stalingrad, 92130 Issy les Moulineaux, France.
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