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Registered number: 04371939










SODEXO INVESTMENT SERVICES LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
COMPANY INFORMATION


Directors
Amolak Dhariwal (appointed 1 January 2025)
Jean Renton 
Stuart Carter 




Registered number
04371939



Registered office
One Southampton Row

London

United Kingdom

WC1B 5HA




Independent auditor
KPMG LLP, Statutory Auditor
Chartered Accountants

1 St Peter's Square

Manchester

M2 3AE





 
SODEXO INVESTMENT SERVICES LIMITED
 

CONTENTS



Page
Directors' Report
1 - 2
Directors' Responsibilities Statement
3
Independent Auditor's Report to the Members of Sodexo Investment Services Limited
4 - 7
Statement of Comprehensive Income
8
Statement of Financial Position
9
Statement of Changes in Equity
10
Notes to the Financial Statements
11 - 22


 
SODEXO INVESTMENT SERVICES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

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

Principal activity

Sodexo Investment Services Limited holds investments in companies involved in the Government's Public Private Partnerships and Private Finance Initiative.

Results and dividends

The profit for the year, after taxation, amounted to £13,742,000 (2023 - £3,903,000).

Dividends totalling £16,000,000 were declared and paid during the year (2023: £1,200,000). A further dividend of £9,500,000 was declared in respect of financial year 2024 and subsequently paid post year-end on 22 November 2024 to Sodexo Holdings Limited, the 100% shareholder to the Company. 

The directors have not proposed any further final ordinary dividend in respect of the current financial year.

During the year, the Company disposed of interests in investments for a total consideration  of £8,267,000 and recognised a profit of £7,895,000. This profit includes accrued interest and expenses directly related to the disposal.

Directors

The directors who served during the year were:

Jean Renton 
Stuart Carter 

On 1 January 2025, Amolak Dhariwal was appointed as a director of the Company.

Going concern

The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.
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’s cash flows are therefore dependent on the continuation, volume, and pricing of those operations.
  
The Company meets its day to day working capital requirements from operational cash flows 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, the UK&I Group remain prepared for further macro-economic impacts with agility, good commercial management, and careful cost control continues to be critical.
To inform the basis of preparation of these accounts, the directors have considered cash and profit forecasts for forward trade of the UK&I Group for at least 12 months following the date of approval of these accounts, based on the facts we 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
Page 1

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

performance, a downturn in revenues due to contracts of key clients not being renewed and the under recovery 

Going concern (continued)

of inflation. The forecasts indicate that the UK&I Group will continue to be resilient in the current macroeconomic environment.
 
There are no detailed forecasts prepared for Sodexo Investment Services Limited as the company is an intermediary holding company and does not trade. At 31st August 2024, the company is in a net current assets position and is able to meet its liabilities as they fall due.
 
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' 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.

Post balance sheet events

A further dividend of £9,500,000 was declared in respect of financial year 2024 and subsequently paid post year-end on 22 November 2024 to Sodexo Holdings Limited, the 100% shareholder to the Company.  

Auditor

The auditor, KPMG LLP, Statutory Auditorwill be proposed for reappointment in accordance with section 487 of the Companies Act 2006.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Amolak Dhariwal
Director

Date: 23 May 2025

One Southampton Row
London
United Kingdom
WC1B 5HA

Page 2

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
DIRECTORS’ RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 101 ‘Reduced Disclosure Framework’. 
 
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 judgments 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;

assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and 

use 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 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 to enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.



Page 3

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SODEXO INVESTMENT SERVICES LIMITED
 

Opinion
 
 
We have audited the financial statements of Sodexo Investment Services Limited (“the Company”) for the year ended 31 August 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and related notes, including the accounting policies in note 2.

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 UK accounting standards, including FRS 101 'Reduced  Disclosure Framework';  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 are described below.  We have fulfilled our ethical responsibilities under, and are independent of the Company in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

Going concern
 
The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Company or to cease its operations, and as they have concluded that the Company’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

In our evaluation of the directors’ conclusions, we considered the inherent risks to the Company’s business model and analysed how those risks might affect the Company’s financial resources or ability to continue operations over the going concern period.

Our conclusions based on this work:

we consider that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate;

we have not identified, and concur with the directors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for the going concern period. 

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Company will continue in operation.
Page 4

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SODEXO INVESTMENT SERVICES LIMITED (CONTINUED)


Fraud and breaches of laws and regulations – ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included enquiring of directors and inspection of policy documentation as to the group’s high-level policies and procedures to prevent and detect fraud that apply to this group company as well as enquiring whether the directors have knowledge of any actual, suspected or alleged fraud.

As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries. Based on our risk assessment, no high-risk journal entries were identified. On this audit we do not believe there is a fraud risk related to revenue recognition because there are no revenue transactions. We did not identify any additional fraud risks.

Identifying and responding to risks of material misstatement related to compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors (as required by auditing standards), and discussed with the directors the policies and procedures regarding compliance with laws and regulations.  

The company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.  

This company, as a holding company, is not subject to other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.  

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
Page 5

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SODEXO INVESTMENT SERVICES LIMITED (CONTINUED)


Directors’ report
  
The directors are responsible for the directors’ report. Our opinion on the financial statements does not cover that report and we do not express an audit opinion thereon.  

Our responsibility is to read the directors’ report and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:

we have not identified material misstatements in the strategic report and the directors’ report;  
in our opinion the information given in that report for the financial year is consistent with the financial statements; and  
in our opinion that report have been prepared in accordance with the Companies Act 2006.

Matters on which we are required to report by exception
  
Under the Companies Act 2006 we are required 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 the branches not visited by us; or 
the financial statements are not in agreement with the accounting records and returns; or  
certain disclosures of directors’ remuneration specified by law are not made; or  
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to take advantage of the small companies exemption from the requirement to prepare a strategic report.

We have nothing to report in these respects. 
 
Directors’ responsibilities  
 
As explained more fully in their statement set out on page 3, the directors are responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; 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 they either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. 

Auditor’s responsibilities
 
 
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 our opinion in an auditor’s report.  Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.  
  
A fuller description of our responsibilities is provided on the FRC’s website at 
www.frc.org.uk/auditorsresponsibilities.
 
Page 6

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SODEXO INVESTMENT SERVICES LIMITED (CONTINUED)


The purpose of our audit work and to whom we owe our responsibilities
  
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.
 





Hannah Johnston (Senior Statutory Auditor)
  
for and on behalf of
KPMG LLP, Statutory Auditor
 
Chartered Accountants
  
1 St Peter's Square
Manchester
M2 3AE

23 May 2025
Page 7

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
Note
£000
£000

  

Administrative expenses
  
(8)
-

Other operating income
 4 
436
488

Operating profit
  
428
488

Income from fixed assets investments
 7 
3,679
2,017

Profit on disposal of investments
 8 
7,895
-

Interest receivable and similar income
 9 
2,488
1,916

Interest payable and similar expenses
 10 
(29)
-

Profit before tax
  
14,461
4,421

Tax on profit
 11 
(719)
(518)

Profit for the financial year
  
13,742
3,903

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 11 to 22 form part of these financial statements.

Page 8

 
SODEXO INVESTMENT SERVICES LIMITED
REGISTERED NUMBER: 04371939

STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2024

2024
2023
Note
£000
£000

  

Fixed assets
  

Investments
 12 
14,705
14,876

  
14,705
14,876

Current assets
  

Debtors: amounts falling due within one year
 13 
1,724
1,493

Cash at bank and in hand
  
9,979
11,593

  
11,703
13,086

Creditors: amounts falling due within one year
 14 
(2,783)
(2,079)

Net current assets
  
 
 
8,920
 
 
11,007

Total assets less current liabilities
  
23,625
25,883

  

  

  

Net assets
  
23,625
25,883


Capital and reserves
  

Called up share capital 
 15 
-
-

Profit and loss account
  
23,625
25,883

  
23,625
25,883


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Amolak Dhariwal
Director

Date: 23 May 2025

The notes on pages 11 to 22 form part of these financial statements.

Page 9

 
SODEXO INVESTMENT SERVICES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024


Called up share capital
Profit and loss account
Total equity

£000
£000
£000


At 1 September 2022
-
23,180
23,180



Profit for the year
-
3,903
3,903

Dividends: Equity capital
-
(1,200)
(1,200)



At 1 September 2023
-
25,883
25,883



Profit for the year
-
13,742
13,742

Dividends: Equity capital
-
(16,000)
(16,000)


At 31 August 2024
-
23,625
23,625


The notes on pages 11 to 22 form part of these financial statements.

Page 10

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

1.


General information

Sodexo Investment Services Limited (the “Company”) is a company registered, incorporated and domiciled in the UK. The company's registered number is 04371939 and its registered office is One Southampton Row, London, WC1B 5HA.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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' ("FRS101").

The presentational currency of these financial statements is sterling. All amounts in the financial
statements have been rounded to the nearest £1,000.

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 (see note 3).

The Company is exempt by virtue of s400 of the Companies Act 2006 from the requirement to prepare group accounts. These financial statements present information about the Company as an individual undertaking and not about its group. The results of the Company are included in the consolidated financial statements of Sodexo S.A., incorporated in France.

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 101 - reduced disclosure exemptions

In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of UK-adopted international accounting standards (“UK-adopted IFRS”), but makes amendments where necessary in order to comply with Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure exemptions.

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 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

This information is included in the consolidated financial statements of Sodexo S.A. as at 31 August 2024 and these financial statements may be obtained from The Secretary, Sodexo
S.A., 225 Quai de la Bataille de Stalingrad, 92866 Issy-Les-Moulineaux, France.

Page 11

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.3

Going concern

The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.
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’s cash flows are therefore dependent on the continuation, volume, and pricing of those operations.
  
The Company meets its day to day working capital requirements from operational cash flows 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, the UK&I Group remain prepared for further macro-economic impacts with agility, good commercial management, and careful cost control continues to be critical.
To inform the basis of preparation of these accounts, the directors have considered cash and profit forecasts for forward trade of the UK&I Group for at least 12 months following the date of approval of these accounts, based on the facts we 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.
 
There are no detailed forecasts prepared for Sodexo Investment Services Limited as the company is an intermediary holding company and does not trade. At 31st August 2024, the company is in a net current assets position and is able to meet its liabilities as they fall due.
 
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

 
2.4

Interest receivable and similar income

Interest income is recognised in profit or loss using the effective interest method.

 
2.5

Interest payable and similar costs

Finance costs are charged to profit or loss 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.

Page 12

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

  
2.6

Other operating income

Other operating income contains director fees which are amounts receivable by the Company in respect of the services provided by the Company's directors. Other operating income is recognised net of VAT.

 
2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss 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 balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 13

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

  
2.8

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are initially recognised at fair value and subsequently measured at amortised cost using the effective interest (EIR) method, less impairment. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. 
The Company recognises loss allowances for expected credit losses (ECLs) on financial assets measured at amortised cost.
EIR amortisation is included in interest receivable and similar income in the Statement of Comprehensive Income. Losses arising from impairment are recognised in other operating expenses.
Bank and cash balances
Bank and cash balances comprise cash at banks and in hand as well as short term deposits.
Investments in subsidiaries
The Company holds participating interests in a number of entities involved in the bidding and operation of contracts under the Government's Public Private Partnerships and Private Finance Initiative. These interests are in the form of both share capital and long-term loan funding. Investments in participating interests are recognised at cost less provision for any permanent impairment in value.
Impairment of assets - investments in subsidiaries
Assets that are subject to depreciation or amortisation, such as investments in subsidiaries, are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised as an item of other expenditure in the Statement of Comprehensive Income for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or cash-generating unit (CGU's)) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

Page 14

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.9

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

  
2.10

Trade and other debtors / creditors

Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors.

  
2.11

Disposal of investment

Disposal of invetsments are recognised at fair value less cost to sell, any profit/loss on disposal are recognised in statement of comprehensive income.

 
2.12

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation..
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
 

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company’s accounting policies the directors are required to make judgements, estimates and assumptions about the carrying 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 directors do not believe that there are any accounting policies that would be likely to produce materially different results should there be a change to the underlying judgements, estimates and assumptions.

Page 15

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

4.


Other operating income

2024
2023
£000
£000

Director's fees receivable
436
488

436
488



5.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor and their associates:


2024
2023
£000
£000

Fees payable to the Company's auditor and their associates for the audit of the Company's financial statements
12
10


Fees payable to the Company's auditor are borne by other related undertakings.





6.


Employees




The Company has no employees other than the directors, who did not receive any remuneration (2023 - £NIL).

The remuneration for the directors has been borne by another group company. The services provided by the directors to this company are incidental to their services for the wider group.


7.


Income from fixed asset investments

2024
2023
£000
£000





Dividends received from investments
3,679
2,017

3,679
2,017


Page 16

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

8.


Profit on disposal of investments

2024
2023
£000
£000



Profit on disposal of investments
7,895
-

7,895
-


9.


Interest receivable and similar income

2024
2023
£000
£000


Interest receivable on loans
2,419
1,862

Other interest receivable
69
54

2,488
1,916


10.


Interest payable and similar expenses

2024
2023
£000
£000


Bank interest payable
27
-

Interest payable to group undertakings
2
-

29
-

Page 17

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

11.


Taxation


2024
2023
£000
£000

Corporation tax


Current tax on profits for the year
719
498


719
498


Total current tax
719
498

Deferred tax


Origination and reversal of timing differences
-
17

Changes to tax rates
-
3

Total deferred tax
-
20


Taxation on profit on ordinary activities
719
518

Factors affecting tax charge for the year

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.
The effective tax rate for the year is lower than (
2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 21.515%). The differences are explained below:

2024
2023
£000
£000


Profit on ordinary activities before tax
14,461
4,421


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 21.515%)
3,616
951

Effects of:


Dividend from UK companies
(920)
(436)

Non taxable income
(1,977)
-

Impact of rate change
-
3

Total tax charge for the year
719
518

Page 18

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

12.


Fixed asset investments





Participating interests
Loans to participating interests
Investments other than loans
Other loans
Total

£000
£000
£000
£000
£000



Cost or valuation


At 1 September 2023
76
8,020
35
6,745
14,876


Additions
-
-
-
658
658


Repayment
-
(42)
-
(515)
(557)


Disposals
(23)
(249)
-
-
(272)


Reclassification
(20)
(2,713)
20
2,713
-



At 31 August 2024
33
5,016
55
9,601
14,705




In the opinion of the directors, the value of the investments is not less than the net book value shown above. Investments other than loans and Other loans represent investments and loan balances with entities where the Company's investment is less than 20%.

During the year, the Company disposed of interests in investments for a total consideration of £8,267,000 and recognised a profit of £7,895,000. This profit includes accrued interest and expenses directly related to the disposal.


13.


Debtors

2024
2023
£000
£000


Trade debtors
103
389

Other debtors
1,548
1,063

Prepayments and accrued income
73
41

1,724
1,493


Page 19

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

14.


Creditors: Amounts falling due within one year

2024
2023
£000
£000

Amounts owed to group undertakings
1,262
740

Corporation tax
1,400
1,239

Other taxation and social security
74
64

Accruals and deferred income
47
36

2,783
2,079


All amounts owed to group undertakings are repayable on demand, unsecured and interest free. 


15.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1 (2023 - 1) Ordinary share of £1.00
1
1



16.


Related party transactions

The group has taken exemption contained in paragraph 8 (k) of FRS 101 from disclosure of intra-group transactions and balances as these are eliminated on consolidation in the financial statements of the ultimate parent undertaking.

During the year, the Company disposed of interests in investments for a total consideration of £8,267,000 and recognised a profit of £7,895,000. This profit includes accrued interest and expenses directly related to the disposal.

During the year, the Company carried out transactions with related parties in the standard course of business. The names of the related party, nature of transaction and total value is show below:


2024
2023
£000
£000

Transactions with Ashford Prison Services Holdings Limited in which the Company has a 15% shareholding at the year end
Loan
336
365
Other income
45
42
Interest
69
47

Page 20

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
2024
2023
£000
£000

Transactions with Peterborough Prison Management Holdings Limited in which the Company has a 15% shareholding at the year end


Loan
380
350

Other income
44
42

Interest
111
31

2024
2023
£000
£000

Transactions with Addiewell Prison Holdings Limited in which the Company has a 33% shareholding at the year end


Loan
2,577
2,609

Other income
45
42

Interest
443
320

2024
2023
£000
£000

Transactions with Mercia Healthcare (Holdings) Limited in which the Company has a 25% shareholding at the year end


Loan
2,439
2,439

Other income
37
34

Interest
388
376

2024
2023
£000
£000

Transactions with Healthcare Support (North Staffs) Limited in which the Company has a 10% shareholding at the year end


Loan
2,547
2,547

Other income
38
34

Interest
510
255

2024
2023
£000
£000

Transactions with HPC Kings College Hospital (Holdings) Limited in which the Company has a 10% shareholding at the year end


Loan
166
425

Other income
59
56

Interest
86
60

Page 21

 
SODEXO INVESTMENT SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
2024
2023
£000
£000

Transactions with Catalyst Healthcare (Roehampton) Holdings Limited in which the Company has a 10% shareholding at the year end


Loan
328
328

Other income
28
26

Interest
49
34

2024
2023
£000
£000

Transactions with Catalyst Healthcare (Manchester) Holdings Limited in which the Company has a 10% shareholding at the year end


Loan
5,130
4,988

Other income
46
42

Interest
658
613

2024
2023
£000
£000

Transactions with RMPA Holdings Limited in which the Company has a 2% shareholding at the year end


Loan
319
319

Other income
31
17

Interest
61
43

2024
2023
£000
£000

Transactions with Enterprise Education Conwy Limited in which the Company has a 10% shareholding at the year end


Loan
394
394

Other income
34
29

Interest
43
52


17.


Controlling party

The Company’s immediate parent undertaking and controlling party is Sodexo Holdings Limited, a company incorporated in England and Wales.

The Company’s ultimate parent company and controlling party is Sodexo S.A., a company incorporated in France.  This is the smallest group of undertakings for which consolidated financial statements are prepared.  Copies of the consolidated financial statements can be obtained from The Secretary, Sodexo S.A., 255 Quai de la Bataille de Stalingrad, 92866 Issy-Les-Moulineaux, France.

Page 22