The directors present the strategic report for the year ended 31 August 2024.
Pod-Trak is a well-established specialist contractor operating within the infrastructure sector. Since it was founded in 2007, Pod-Trak has grown in strength within the following disciplines:
Railway Infrastructure (Rail Systems)
Infrastructure Projects (Airports)
Network Services
The company's head office is based at Uxbridge with further offices in Doncaster and Manchester, enabling the company to service all regions throughout the UK.
In the year to 31 August 2024, the directors are satisfied with Pod-Trak’s result for the year despite a reduction in turnover of just over 15%. Within all our infrastructure works the company’s performance remains strong but 2025 will see challenges resulting from inflationary and treasury pressures, that will slow down some of the Infrastructure spend temporarily. However, we feel that with an appetite from our clients and end users to continue to invest in infrastructure, this will lead to an increased market share for Pod-Trak in all disciplines. We have continued to strategise in the diversification of our existing rail business to allow us to create a more sustainable business whilst still working within transferrable skills markets. The Board uses Key Performance Indicators (KPI’s) to monitor results to ensure the business remains efficient and competitive. These are achieved through a range of activities including timely management accounts, HSQES (Health & Safety Quality Environment Sustainability) monitoring, cash management, customer satisfaction and a number of other financial and non-financial measures.
Rail Infrastructure – This is the core business of Pod-Trak. Our success over the past number of years including 2023/24 is due to the desire by clients to invest progressively in Major and Minor Infrastructure Schemes throughout the UK. The business is well positioned, having invested in staff and business processes as we move towards the New Network Rail Control Period 7 frameworks, there has been a significant delay in funding for the workbank, resulting in a further projected decrease in turnover for 2024/25. Despite this, the company is anticipated to trade profitably throughout. Rail Infrastructure work has remained the core of our business in 2023/24 and was boosted again by client spend on enhancement projects nationally. With the end of the five-year control period (CP6) ending during the financial year, there was a push to get projects completed and utilise all available funding. Many projects that commenced prior to the end of the CP were still running out to the end of Q3 in the 2024 calendar year. The changeover period is proving to be much slower than anticipated across the industry due to a lack of Government funding and most schemes being in the early design stages
Infrastructure Projects – This division is progressing well however overall spend at Airports, in particular at Heathrow has been slow while budgets are being developed. Our tender activity has increased and there is good opportunity in this market in the coming years. Prospects have been boosted by securing specialist works for Train Operating Companies (TOC’s) supporting depot and TOC managed stations improvements which is funded separately to the Control Period that the Rail Infrastructure business relies on.
Network Services – Pod-Trak have seen a decline in this work in the current financial year due to completion of projects. Strong tender activity has secured a number of contracts within the Government backed broadband rollout and these will be realised in 2024/25 and beyond. The sector remains a key focus for the future as we look to secure further contracts within this market and develop further in Power and Multi Utilities
Through our continued growth, we have maintained a strong HSQES trend by continuing to invest in better ways of doing things, introducing data-driven analysis. We have also continued to roll out our PALS- (Plan, Attitude, Lead & Share) which we have now adapted to a Business Cultural programme, which has been a great success and has helped us promote and develop our staff's ability to speak up and work better as a team. HSQES is one of the main drivers for the company as we strive daily to keep our workforce and associates safe. Our year-on-year KPI’s demonstrate a strong business culture with a good improvement on safety submissions and an overall reduction in incidents and accidents.
One of the key concerns with the business is still inflation and world events that impact the UK and overseas markets. This continues to have an impact on resources, rising material costs and programme interruptions due to additional time required to ship materials and consumables to the UK. This is being monitored regularly by the company to avoid potential complications with managing projects. We will continue to closely monitor and manage these factors over the next 12 months and monitor our clients vigilantly to minimise such exposure in these turbulent times.
The company will continue to monitor its liquidity and we are confident that we are in a good position to continue to deliver quality and value for money to our clients and partners. The company has demonstrated throughout the year that it has systems in place to make it a very sustainable and scalable business. The directors are satisfied that this has been achieved and we are confident that we have successfully maintained our market share and commitments to our valued clients. Understanding the market conditions and the projections for the next financial year will see some scaling back to ensure we remain sustainable and ready to grow again when there is more confidence in the market and work is released.
As a result of the above, the company fundamentals remain solid. The directors believe that the company is well placed to continue to deliver profits and are confident of its future. Looking forward to 2024/25, we forecast that there will be a reduction in turnover due to some key factors such as the change in government with a new spending plan, Control Period 6 to Control Period 7 changeover, the continued global unsettlement and the direct effect this has on rising costs. The directors are confident that the business will adapt to suit the changing market and continue to provide the service our clients expect. The order book for the first six months of 2024/25 is projected to be stronger than the second half of the year but this is being closely monitored. We are working through our cost base to ensure that it is managed in line with market conditions and we are confident that the company will continue to deliver larger projects successfully and safely for its clients within the sectors in which it operates.
Principal risks and uncertainties
There are a number of potential risks and uncertainties which could impact the Company’s performance, and these are considered by the Board on a regular basis. The Board of Directors and the relevant management teams consider the risks of all significant business decisions and changes in the external environment and in the company’s operations. The key risks affecting the business are as follows:
Operating Risk - the company manages this risk by providing added value services to its clients, having fast response times not only in supplying products and services but also in handling all client queries and by maintaining strong relationships with clients. The company's operating risk is reduced due to the market share of their clients as many of the company's clients are long standing market leaders in their field. The company has spread its operating risk by not only actively seeking to widen its client base but also through continued expansion of its activities in the South and North of England.
Market Risk - the company operates in a specialised market and seeks to maintain a competitive advantage by offering an appropriate and relevant service range and providing a high level of customer service from professional and dedicated staff. The company keeps abreast of developments in the market through maintaining strong relationships with its clients and monitoring the wider economic environment.
Personnel Risk – the Company is a privately-owned business and places great emphasis on recruiting, training, rewarding and retaining high quality people. The Directors consider staff resourcing and on a regular basis. We promote from within whenever we can to maintain the company culture. We also embrace new people from elsewhere as they bring fresh ideas and the benefits of their experience. The Board have tried to ensure that the knowledge base of the operational management team is shared as much as possible throughout the company.
Taxation risk -the company is exposed to financial risks from increases in tax rates and changes to the basis of taxation including corporation tax and VAT. Principal controls to mitigate this risk include regular monitoring of legislative proposals and the engagement of experienced executives and the use of experienced sector-specific professional advisers to mitigate the impact of any changes and ensure compliance.
Financial Risk- the Company is principally funded from retained profits. Financial monitoring, forecasting, and planning are ever present processes with the care taken to achieve a reasonable profit margin and investment in resources whilst maintaining delivery of a high-quality service to its clients - see also Financial instruments.
Information Technology – the Company relies heavily on systems to operate its business, ordering goods, paying suppliers, ensuring health and safety records are accurate, accounting and payroll. The risk of Cyber-attacks is ever present and an increasing risk to every business. Ensuring we have robust and up to date Cyber security measures and vigilant users is critical to the successful running of these systems, as well as employing appropriately skilled and experienced staff and external specialist support as required.
Economic risk - the directors have identified and evaluated risks and uncertainties and have controls in place to mitigate these. Responsibility for management of each key risk is identified and delegated. The company is exposed to the economic risks that could lower the company's revenues and operating results in the future. However, actions continue to be taken to maximise the company's performance in all aspects of the business.
The balance sheet on page 14 of the financial statements shows that the company's financial position at the year end is, in terms of both net assets and liquidity, an improvement over the previous year.
The key financial and non financial performance indicators used to determine the progress and performance of the company are set out below:
2024 2023
Turnover £68,939,060 £81,613,182
Gross profit £7,842,064 £10,578,903
Gross margin 11.4% 13.0%
Operating profit £3,675,486 £4,851,486
Operating profit as a % of sales 5.3% 6.0%
Cash flow £2,890,830 £(3,930,351)
Net cash balance £7,386,842 £4,496,012
Market Share
The company is a large privately owned construction company based in England. Although difficult to quantify the company is estimated to have a strong market share.
Cash measure
The net cash balance (cash and cash equivalents less borrowings) is a measure of the strength of the balance sheet and to confirm that the group has the funds necessary to continue to fund its operations and to continue to grow organically.
Net cash balance of £7,386,842 (2023: £4,496,012), an increase of £2,890,830 on the previous year.
We measure and analyse a number of non-financial criteria in order to monitor our performance and to help identify trends, good or bad, including:
Health and Safety performance - the directors also view safety performance as a KPI and strive to ensure that all incidents and accidents are reduced as much as possible. RIDDOR accidents, minor accidents, Toolbox talks, Near Miss reports, Service Strikes and rolling Accident Frequency Rate (AFR) statistics are regularly monitored at management meetings and the company uses Close Call reporting and trend analysis to monitor performance.
Staff turnover – employees who leave and the reasons thereto.
Tenders - enquiry success rate for tenders and price estimates.
Safety, health and environmental policies
Pod-Trak has a fully integrated Health and Safety policy. The company continues to strive to improve its safety, health and environmental standards and performance. These are monitored regularly throughout the year and reviewed in response to performance and changes in legislation.
Health and safety
The company recognises the significance of health and safety in the workplace to ensure its work force is free from risk, through investment in continuing improvement in the occupational health and safety field.
In recognising the significance of health and safety, the company has made significant investment in, occupational health, a behavioural culture programme, ongoing external monitoring, evaluation of environmental impact, risk reduction methods, the employment of professionally qualified personnel and full-time safety officers.
Pod-Trak also has a commitment to the CSCS scheme. All new operatives receive full CSCS training and that their accreditation is appropriate to the work that they do. At Pod-Trak the belief is that all accidents are preventable with proper planning, information, training and adherence to Method Statements and Works Package Plans. Regular Toolbox Talks and Task Briefs also ensure continual development and sharing of information relevant to the works carried out, offering a forum for the workforce to get involved and provide feedback important to a healthy working environment.
In addition, the monitoring of the employees' health and welfare through regular site visits on each of its projects and the continuation of an extensive training programme, ensuring competency in the workplace, continue to play a major part in protecting the company's workforce, and the company's reputation.
Environment
The company recognises the importance of its environmental responsibilities, monitors its impact on the environment and designs and implements policies to reduce any damage that might be caused by the company's activities. Initiatives designed to minimise the company's impact on the environment include safe disposal of any product waste, recycling and reducing energy consumption.
Accreditations and memberships
The company has been assessed and has achieved the following accreditations and awards and is a member of the following :
- Quality Management System (ISO 9001: 2015);
- Environmental Management System (ISO 14001: 2015);
- Health & Safety Management System (BS OHSAS 45001: 2018 SSIP);
- Constructionline - Gold Member;
- Network Rail Ontrack Plant Operations Scheme Approval;
- Membership of CIRAS;
- FORS Silver accredited (Perivale and Manchester);
- Member of the Rail Industry Contractors Association (RICA);
- Member of the Construction Plant-Hire Association (CPA);
- Member of the Rail Plant Association (RPA);
- Member of the Freight Transport Association (FTA);
- Verified supplier - Railway Industry Supplier Qualification Scheme (RISQS);
- Registered as an upper tier waste carrier with the Environment Agency;
- Member of the Royal Society for the Prevention of Accidents (ROSPA);
- Approved Contractor Scheme - NICEIC;
- Network Rail - Principal Contractor Licence Management Systems Accepted;
- Cyber Essentials Scheme compliant.
- Member of the Supply Chain Sustainability School
The directors are of the opinion that these memberships, certifications and accreditations will ensure the continued efficiency of its internal and external processes, and aid the company's commitment to working towards health, safety and environmental best practice across the business.
Employee involvement and policy
The company continues to make significant investment in its human resources both in terms of necessary increases and strengthening of its management teams, supervisory personnel and work force.
Details of the number of employees and related costs can be found in note 6 to the financial statements.
The Company's employment policies respect the individual and offer career opportunities regardless of gender, race or religion. The company engages, promotes and trains staff on the basis of their capabilities, qualifications and experience without discrimination, giving all employees an equal opportunity to progress within the company.
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment with the company continues and that appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical with that of other employees.
The company is owned by Pod-Trak (Holdings) Limited. Within the legal Group of companies is fellow subsidiary Pod-Trak Infrastructure Limited, based in Ireland. Pod-Trak (Holdings) Limited is owned by two shareholders. Other associated companies owned by the same shareholders provide labour and plant hire services to the Group.
The principal activity of Pod-Trak Limited is that of specialist rail contractors and electrical installations. The management define the success of the business as long-term value creation for all parts of the Pod-Trak Group and associated companies. Working together to provide efficient solutions that can use all elements of the group of companies’ resources, contracting, labour supply and plant hire.
The Board is committed to and actively encourages effective relationships and communications with all the company’s stakeholders to obtain a greater understanding of each other’s needs and objectives. This way we can optimise the long-term value creation and success of the company. The company has identified the following key stakeholders and explains how the Board considers their interests.
Shareholders
The company is a wholly-owned subsidiary of Pod-Trak (Holdings) Limited that is owned by two shareholders who both take an active role in managing the business along with the Executives and senior management. The Board has a very close dialogue with the shareholders through regular discussions, Board meetings and routine financial and operational reporting. These processes ensure the long-term strategy of the business is aligned with their expectations. Detailed budgets, sales forecasts and cash flows are prepared and regularly updated as well as tracking of tenders, all of which are regularly reviewed and discussed by senior management and directors, to ensure that they align to the shareholders’ goals.
People
The company recognises that its people are the key to delivering sustainable success. We continue to engage and develop Via our Business Cultural programme, Briefings of HSQES matters and continued training and mentoring.
Appraisals are a key driver within the business which allows all staff to sit with their manager one to one and tailor a plan so that the individual has all the tools to excel at their job.
The company continues to attract new talent and employ apprentices to start on the journey with the business and allow them to aspire to be managers of the future.
Wellbeing of our employees is key to the business, and we continue to support and promote our Employee Assistance Programme.
Community and environment
Environment – The Company seek to procure materials from a sustainable source and look to recycle and reuse materials to reduce the amount disposed off site.
Community – The company is involved with numerous local and industry charities at the locations we work. As part of our sustainable programme, we continue to engage and measure the social impact that we have on local communities.
Stakeholders
The Company carefully maintains good relationships with its stakeholders who continue to support the business.
Clients – The company and its Directors regularly engage with its clients through site visits, meetings and regular communications. Clients have direct access to Directors and management so that any changing circumstances can be dealt with in a positive and effective manner.
Supply Chain – The company recognises that our supply chain remain a key part of the long term success of the business, we engage with our supply chain in regular account review meetings. The Directors also monitor the treatment of supply chain to ensure that they are paid within the terms and treated fairly.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 August 2024.
The results for the year are set out on page 13.
Ordinary dividends were paid amounting to £2,000,000. The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Objectives and policies
The company's principal financial instruments comprise bank balances, trade creditors, trade debtors, hire purchase creditors and loans to and from related companies. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.
Cash flow and liquidity risk
In respect of bank balances the liquidity risk is managed by maintaining a balance between continuity of funding and flexibility through and agreed payment policy. Strict payment terms are negotiated with the company's customers which enables it to ensure that it is paid promptly once an application has been issued. This policy ensures that sufficient funds are available to meet amounts due to trade creditors. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding.
In respect of loans to and from related companies, these are unsecured, interest-free with no fixed date for repayment.
The company sees R&D activity as a vital part of sustaining competitive advantage and when presented with technical challenges, will seek to develop the optimal solution.
During the year the company undertook several Research and Development (‘R&D’) projects that sought to achieve advancements in technology in carrying out various railway systems and infrastructure projects.
The company remains in a strong position and is working closely with its customers, partners and people to continue to hold and grow its market share in the sectors in which we work, This will allow the company to focus on strengthening its financial performance in the industry by concentrating on current customer base retention, looking out for new clients by developing long-term relationships, while at the same time keeping a firm control of both direct and indirect costs in line with turnover. While a reduction in turnover is projected for 2024/25 due to factors detailed within the Strategic Report, the Directors remain confident that this will recover as confidence in the market continues to grow.
The company will continue to focus on securing profitable work and while doing this we will continue to develop the new markets that we have secured work within, (in particular the Utilities and Aviation sectors), which will help us to diversify the business to help us become more sustainable in the overall Infrastructure sector within which we operate. This will allow us to continue to increase our market share by expanding our customer base throughout the UK and abroad, and to seek to diversify the work we undertake within our core sectors.
The company currently has secured orders of £60m and the directors anticipate that in 2024/25 and going forward into 2025/26. The company will continue to be focused on further developing its market share within the infrastructure sectors and mainly focusing on expanding within the infrastructure markets in which we operate, and continue to develop our market share going forward.
The auditor, Goldblatts, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
The company has consumed more than 40,000 kWh of energy in this reporting period and has therefore prepared a SECR report for the financial year to August 2024 on its emissions, energy consumption and energy efficiency activities. The information from this report has been included in the consolidated accounts prepared by Pod-Trak (Holdings) Limited.
The company is also committed to achieving Net Zero by 2040. ten years in advance of the UK government requirements. Through a series of targets set through quantifiable data, Pod-Trak has been able to baseline its carbon footprint and implement solutions to deliver this plan. This plan will be reviewed yearly to ensure that it remains on track.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Pod-Trak Limited (the 'company') for the year ended 31 August 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows;
the engagement partner ensured the engagement team had the appropriate competence, capabilities and skills to identify or recognise possible non-compliance with applicable laws and regulations.
we identified significant laws and regulations applicable to the company through discussions with directors, along with our commercial knowledge and experience of the construction sector in which our client operates.
we focused on specific laws and regulations which we consider may have a material effect on the financial statements or operations of the company, including the Companies Act 2006, taxation legislation, data protection, health and safety, and employment law.
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
Considered the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
have performed analytical procedures to identify any unusual variances
reviewed and tested journal entries and other adjustments to identify any unusual transactions
assessed judgements and assumptions used in determining the accounting estimates which could indicated any potential bias
investigated the rational behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
reviewing disclosures in the financial statements and testing to supporting documentation.
reviewing meeting minutes where available
discussions with management regarding actual or potential litigations and / or claims.
reviewing correspondence with HMRC and other relevant regulators
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from the financial transactions, the less likely it is that we would become aware or any possible non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of directors and other management and the inspection of regulatory and legal correspondence, if any.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Pod-Trak Limited is a private company limited by shares incorporated in England and Wales. The registered office is Rivermead, 1 Oxford Road, Uxbridge, UB9 4BF.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Revenue recognition is a key area of judgement especially in companies operating in the construction industry. The calculation of contract turnover, gross amounts due from customers and work in progress is contingent on the accurate measurement of work done and internal valuations by key management personnel. The amounts due from contract customers requires the company to make a judgement in relation to the stage of completion of the contracts ongoing at the year end. Management are provided with internal valuations by experienced personnel based on the costs incurred to date and the terms and conditions of the contract.
The directors have ensured that generally accepted industry practices and methodologies are followed by all relevant personnel and that accounting and quality management systems are regularly evaluated and certified.
Management regularly review intercompany balances for recoverability.
An analysis of the company's turnover is as follows:
During the prior year the company incurred an exceptional bad debt in the sum of £1,695,168 relating to a customer that went into Administration.
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
The amounts owed by group undertakings are unsecured, interest-free, have no fixed date of repayment and are repayable on demand.
Included in other debtors are amounts due from related parties that are unsecured, interest-free and with no fixed repayment dates.
Included in other creditors are amounts due to related parties that are unsecured, interest-free and with no fixed repayment dates.
There is a Debenture dated 4 July 2013 in favour of the company's bankers, Barclays Bank Plc, to secure banking facilities. This comprises fixed and floating charges over the undertaking and all property and all fixed and current assets present and future, The Debenture contains a negative pledge.
There is a Legal Charge dated 7 September 2017, in favour of Metro Bank Plc, to secure leasehold property subject to a lease between the company and a related company. This comprises fixed and floating charges in connection with the leasehold property present and future, The Legal Charge contains a negative pledge.
There is a Legal charge dated 10 June 2024 being a Debenture and Cross Guarantee in favour of the company's bankers, Barclays Bank Plc, to secure a bank loan of a related company. This comprises first fixed charge over all vested land and fixed assets and all intellectual property rights of the company, both present and future and a floating charge over all the property or undertaking of the company. The Charge contains a negative pledge.
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Of the above deferred tax liability set out above, £86,432 is expected to reverse within the next 12 months and relates to accelerated capital allowances and structural buildings allowances that are expected to mature within the same period
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
The company has one class of ordinary shares which carry no right to fixed income.
The company has provided guarantees in respect of unpaid hire purchase liabilities of a related company. At 31 August 2024, the outstanding hire purchase liabilities in that related company, which are not included in the company's balance sheet, amounted to £1,979,865 (2023: £436,650) - see also Note 22 ' Related party transactions'.
During the year, the company, in conjunction with its ultimate parent undertaking, entered into a cross guarantee arrangement with the company's bankers Barclays Bank Plc, to provide additional security for a loan taken out by a related company, with an additional charge registered at Companies House - see Creditors Note 16. At 31 August 2024, the maximum amount of the potential liabillity amounted to £3.957m (2023: £0).
Operating lease payments represent rentals payable by the company for office equipment and business premises. Leases are negotiated for a range of periods from 1 year to 5 years.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year the company entered into the following transactions with related parties:
The loan interest received is inline with the loan agreement.
The following amounts were outstanding at the reporting end date:
The amounts owed to related parties are unsecured, interest-free, have no fixed dates of repayment and are repayable on demand.
The following amounts were outstanding at the reporting end date:
The amounts owed by related parties are unsecured, interest-free, have no fixed dates of repayment and are repayable on demand.
The amounts outstanding are unsecured and will be settled in cash.
As mentioned in Note 20, at 31st August 2024:
a) The company has guaranteed the unpaid finance lease commitments of a related company to a maximum of £1,979,865 (2023: £436,650).
b) The company has guaranteed the bank loan of a related company to a maximum of £3.957m (2023: £0).
The smallest and largest group financial statements that consolidate this company is Pod-Trak (Holdings) Limited. Copies of the group accounts are available to the public from the parent company's registered office at Rivermead, 1 Oxford Road, Uxbridge, UB9 4BF.