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COMPANY REGISTRATION NUMBER: 11480193
RAPID RESPONSE TELECOMS LIMITED
FINANCIAL STATEMENTS
31 July 2024
RAPID RESPONSE TELECOMS LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 31 JULY 2024
CONTENTS
PAGE
Strategic report
1
Director's report
4
Independent auditor's report to the members
6
Statement of income and retained earnings
12
Statement of financial position
13
Statement of cash flows
15
Notes to the financial statements
16
RAPID RESPONSE TELECOMS LIMITED
STRATEGIC REPORT
YEAR ENDED 31 JULY 2024
The director presents his strategic report on the company for the year ended 31 July 2024.
PRINCIPAL ACTIVITIES AND BUSINESS REVIEW
The company's principal activity has continued to be the provision of telecommunications services. The company's year-end figures showed most impressive growth with turnover up 69% to £21,287,366, gross margin up from 62.3% to 69.3% and profit before tax up from £130,132 to £2,959,806. With regard to overheads, there were substantial increases in wages and salaries, motor expenses and depreciation but these also reflected the increase in the company's turnover in the year. The Company's net assets increased from £689,754 to £3,123,376 with bank balances increasing from £8,098 to £1,791,318, this is after investment in fixed assets of £1,224,592 in the year. The very much improved balance sheet position reflects the continued growth in the asset base of the company which gives security for the future and allows the company's current investment strategy to be implemented. Rapid Response Telecoms Limited was set up with the primary focus being the repair and maintenance of the broadband networks. However, the company has hugely benefited from the government's investment in the digital infrastructure to ensure that most of the population have access to fibre broadband. The year has not been without the challenges that would be expected from a period of such rapid growth. We have invested in our systems and personnel to ensure that we are well positioned to operate at this level and ready for further growth.
FUTURE DEVELOPMENTS
The landscape of the telecoms industry is changing, as network owners are transitioning their focus from network build to network operations. We are extremely well positioned for this changing of landscape and arguably couldn't be better positioned. We cover all disciplines and have vast experience of working on live mature network infrastructure which really is unique within the contracting marketplace. Over and above this we consider ourselves to be a solutions-based business for our clients and we have demonstrated this in a number of instances with the most prominent being vast stock logistics and storing for one of our clients once they have acquisitioned new networks. Network acquisitions amongst existing Network Operators will also present opportunities for ourselves given our positioning not just with existing clients but also in the marketplace as there is some major unpicking to be done once someone acquires a new network and we are well placed to do that intrusive survey work. Geographically we are steadily expanding our footprint, we have recently completed the development of a Satellite at Knaresborough and doubled the size of our premises in Rugby which correlates with our increased activities in these areas. Our next proposed move is to establish another depot further South, around the Andover/Thatcham area. There are some work opportunities available to us but we need to show some intent of regional presence before we can really progress those opportunities. As always though, our intention would be to start with little outlay and then into other areas to grow the project and location. Over and above the telecoms side we are also around halfway through the process to obtain National Electricity Registration Scheme (NERS) accreditation, which is an essential requirement to be able to work on electrical infrastructure i.e. Install and Maintain High Voltage cables. We believe that there will be contracting opportunities which present themselves upon account of the current requirement to upgrade electrical infrastructure across the UK. We are therefore continuing our growth strategy and the investment in new products and techniques. Quality of service remains important to us in addition to security of the business as the director remains optimistic of continuing growth and profitability in the future.
PRINCIPAL RISKS AND UNCERTAINTIES
The directors regularly review any risks facing the company and the necessary actions taken to address these risks. The principal risks are considered to be in respect of the company's products and services as far as competitive pricing together with the required quality of service. It is important that we manage the potential risk of over reliance on a small number of key customers.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The company's principal financial instruments are bank balances together with other financial assets and liabilities such as trade debtors and trade creditors which arise directly from the company's operations. The main financial risks are cash flow and customer credit risk which is well managed by effective, structured credit control policies. This existing controlled structure ensures that finance is readily available as required to meet the company's ongoing financial requirements.
This report was approved by the board of directors on 18 June 2025 and signed on behalf of the board by:
Mr C Wood
Director
Registered office:
Whaley Road
Barugh Green
Barnsley
S75 1HT
RAPID RESPONSE TELECOMS LIMITED
DIRECTOR'S REPORT
YEAR ENDED 31 JULY 2024
The director presents his report and the financial statements of the company for the year ended 31 July 2024 .
PRINCIPAL ACTIVITIES
The principal activity of the company during the year was provision of telecommunications services.
DIRECTOR
The director who served the company during the year was as follows:
Mr C Wood
DIVIDENDS
Particulars of recommended dividends are detailed in note 12 to the financial statements.
DIRECTOR'S RESPONSIBILITIES STATEMENT
The director is responsible for preparing the strategic report, 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 the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.
In preparing these financial statements, the director is required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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 enable them to ensure that the financial statements comply with the Companies Act 2006. He is 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.
AUDITOR
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 18 June 2025 and signed on behalf of the board by:
Mr C Wood
Director
Registered office:
Whaley Road
Barugh Green
Barnsley
S75 1HT
RAPID RESPONSE TELECOMS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RAPID RESPONSE TELECOMS LIMITED
YEAR ENDED 31 JULY 2024
QUALIFIED OPINION
We have audited the financial statements of Rapid Response Telecoms Limited (the 'company') for the year ended 31 July 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements: " give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its loss for the year then ended; " have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; " have been prepared in accordance with the requirements of the Companies Act 2006.
BASIS FOR QUALIFIED OPINION
The comparative figures are unaudited. No detailed record of stock at 31 July 2023 was available and therefore we were unable to satisfy ourselves concerning stock quantities and the valuation of stocks held at the beginning of the year. In addition, we have not been able to obtain sufficient supporting evidence for trade creditor balances at 31 July 2023. Since opening stocks and creditors enter into the determination of the financial performance, we were unable to determine whether adjustments might have been necessary in respect of the profit for the year reported in the statement of comprehensive income. 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 qualified 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.
OTHER INFORMATION
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the 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 the director's report have been prepared in accordance with applicable legal requirements.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. Arising solely from the limitation on the scope of our work, referred to above: " we have not obtained all the information and explanations that we considered necessary for the purpose of our audit. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: " adequate accounting records have not been kept by the company; 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 the returns; or " certain disclosures of directors remuneration specified by law are not made.
RESPONSIBILITIES OF THE DIRECTOR
As explained more fully in the director's responsibilities statement, 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 these financial statements. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 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. 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 that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. " We identified the laws and regulations applicable to the company through discussions with the directors. " We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company. " We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting 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; " considering 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: " performed analytical procedures to identify any unusual or unexpected relationships;" tested journal entries to identify unusual transactions; " tested journal entries to identify unusual transactions; " investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: " agreeing financial statement disclosures to underlying supporting documentation; " enquiring of management as to actual and potential litigation and claims; " reviewing correspondence with relevant regulators. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 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 OUR REPORT
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
SALLY SHACKLOCK FCA
(Senior Statutory Auditor)
For and on behalf of
Streets Spenser Wilson (Yorkshire) Limited
Chartered accountants & statutory auditor
Equitable House
55 Pellon Lane
Halifax
West Yorkshire
HX1 5SP
18 June 2025
RAPID RESPONSE TELECOMS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
YEAR ENDED 31 JULY 2024
2024
2023
Note
£
£
TURNOVER
4
21,287,366
12,607,527
Cost of sales
6,531,101
4,755,746
---------------
---------------
GROSS PROFIT
14,756,265
7,851,781
Administrative expenses
11,507,850
7,721,537
---------------
--------------
OPERATING PROFIT
5
3,248,415
130,244
Other interest receivable and similar income
9
16,550
673
Interest payable and similar expenses
10
305,159
785
---------------
--------------
PROFIT BEFORE TAXATION
2,959,806
130,132
Tax on profit
11
402,184
24,775
--------------
-----------
PROFIT FOR THE FINANCIAL YEAR AND TOTAL COMPREHENSIVE INCOME
2,557,622
105,357
--------------
-----------
Dividends paid and payable
12
( 124,000)
( 21,250)
RETAINED EARNINGS AT THE START OF THE YEAR
689,753
605,646
--------------
-----------
RETAINED EARNINGS AT THE END OF THE YEAR
3,123,375
689,753
--------------
-----------
All the activities of the company are from continuing operations.
RAPID RESPONSE TELECOMS LIMITED
STATEMENT OF FINANCIAL POSITION
31 July 2024
2024
2023
Note
£
£
£
£
FIXED ASSETS
Tangible assets
13
1,943,136
1,257,887
CURRENT ASSETS
Stocks
14
198,041
283,088
Debtors
15
2,604,674
1,976,684
Cash at bank and in hand
1,791,318
8,098
--------------
--------------
4,594,033
2,267,870
CREDITORS: amounts falling due within one year
17
2,585,367
2,539,395
--------------
--------------
NET CURRENT ASSETS/(LIABILITIES)
2,008,666
( 271,525)
--------------
--------------
TOTAL ASSETS LESS CURRENT LIABILITIES
3,951,802
986,362
CREDITORS: amounts falling due after more than one year
18
388,451
168,283
PROVISIONS
20
439,975
128,325
--------------
-----------
NET ASSETS
3,123,376
689,754
--------------
-----------
RAPID RESPONSE TELECOMS LIMITED
STATEMENT OF FINANCIAL POSITION (continued)
31 July 2024
2024
2023
Note
£
£
£
£
CAPITAL AND RESERVES
Called up share capital
23
1
1
Profit and loss account
3,123,375
689,753
--------------
-----------
SHAREHOLDERS FUNDS
3,123,376
689,754
--------------
-----------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 18 June 2025 , and are signed on behalf of the board by:
Mr C Wood
Director
Company registration number: 11480193
RAPID RESPONSE TELECOMS LIMITED
STATEMENT OF CASH FLOWS
YEAR ENDED 31 JULY 2024
2024
2023
Note
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the financial year
2,557,622
105,357
Adjustments for:
Depreciation of tangible assets
428,210
208,705
Other interest receivable and similar income
( 16,550)
( 673)
Interest payable and similar expenses
305,159
785
Loss on disposal of tangible assets
28,621
Tax on profit
402,184
24,775
Accrued expenses
182,487
9,563
Changes in:
Stocks
85,047
( 283,088)
Trade and other debtors
( 627,990)
( 616,520)
Trade and other creditors
( 553,452)
1,188,513
--------------
--------------
Cash generated from operations
2,791,338
637,417
Interest paid
( 305,159)
( 785)
Interest received
16,550
673
Tax received/(paid)
313,046
( 24,180)
--------------
-----------
Net cash from operating activities
2,815,775
613,125
--------------
-----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of tangible assets
( 1,224,592)
( 901,139)
Proceeds from sale of tangible assets
82,512
--------------
-----------
Net cash used in investing activities
( 1,142,080)
( 901,139)
--------------
-----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
( 10,264)
( 9,584)
Payments of finance lease liabilities
301,974
196,551
Dividends paid
( 124,000)
( 21,250)
--------------
-----------
Net cash from financing activities
167,710
165,717
--------------
-----------
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
1,841,405
( 122,297)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
(50,087)
72,210
--------------
---------
CASH AND CASH EQUIVALENTS AT END OF YEAR
16
1,791,318
( 50,087)
--------------
---------
RAPID RESPONSE TELECOMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 JULY 2024
1. GENERAL INFORMATION
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Whaley Road, Barugh Green, Barnsley, S75 1HT.
2. STATEMENT OF COMPLIANCE
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are not considered to be any judgements or accounting estimates or assumptions that have a significant impact on the financial statements.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Current and deferred tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
15% reducing balance
Motor vehicles
-
25% reducing balance
Fixtures, fittings and equipment
-
33% reducing balance
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. TURNOVER
Turnover arises from:
2024
2023
£
£
Rendering of services
21,287,366
12,607,527
---------------
---------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. OPERATING PROFIT
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Depreciation of tangible assets
428,210
208,705
Loss on disposal of tangible assets
28,621
Impairment of trade debtors
(62,000)
-----------
-----------
6. AUDITOR'S REMUNERATION
2024
2023
£
£
Fees payable for the audit of the financial statements
27,500
---------
-----
Fees payable to the company's auditor and its associates for other services:
Other non-audit services
7,500
12,045
---------
---------
7. STAFF COSTS
The average number of persons employed by the company during the year, including the director, amounted to:
2024
2023
No.
No.
Management staff
160
94
-----
-----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
6,882,602
4,756,988
Social security costs
768,545
518,664
Other pension costs
136,408
94,980
--------------
--------------
7,787,555
5,370,632
--------------
--------------
8. DIRECTOR'S REMUNERATION
The director's aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
45,000
45,000
Company contributions to defined contribution pension plans
1,163
1,163
---------
---------
46,163
46,163
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2024
2023
No.
No.
Defined contribution plans
1
1
-----
-----
9. OTHER INTEREST RECEIVABLE AND SIMILAR INCOME
2024
2023
£
£
Interest on cash and cash equivalents
16,550
673
---------
-----
10. INTEREST PAYABLE AND SIMILAR EXPENSES
2024
2023
£
£
Interest on banks loans and overdrafts
547
785
Interest on obligations under finance leases and hire purchase contracts
49,788
Other interest payable and similar charges
254,824
-----------
-----
305,159
785
-----------
-----
11. TAX ON PROFIT
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
410,579
Adjustments in respect of prior periods
( 320,045)
-----------
-----
Total current tax
90,534
-----------
-----
Deferred tax:
Origination and reversal of timing differences
311,650
24,775
-----------
---------
Tax on profit
402,184
24,775
-----------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 25 %).
2024
2023
£
£
Profit on ordinary activities before taxation
2,959,806
130,132
--------------
-----------
Profit on ordinary activities by rate of tax
739,952
32,533
Effect of expenses not deductible for tax purposes
87,935
14,844
Effect of capital allowances and depreciation
146,206
( 152,001)
Utilisation of tax losses
( 129,399)
Unused tax losses
129,399
Effects of Research and Development allowances
( 442,510)
--------------
-----------
Tax on profit
402,184
24,775
--------------
-----------
12. DIVIDENDS
2024
2023
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
124,000
21,250
-----------
---------
13. TANGIBLE ASSETS
Plant and machinery
Motor vehicles
Fixtures, fittings and equipment
Total
£
£
£
£
Cost
At 1 August 2023
453,328
1,055,732
82,235
1,591,295
Additions
391,841
748,914
83,837
1,224,592
Disposals
( 47,981)
( 124,891)
( 172,872)
-----------
--------------
-----------
--------------
At 31 July 2024
797,188
1,679,755
166,072
2,643,015
-----------
--------------
-----------
--------------
Depreciation
At 1 August 2023
82,845
230,351
20,212
333,408
Charge for the year
82,774
314,374
31,062
428,210
Disposals
( 4,416)
( 57,323)
( 61,739)
-----------
--------------
-----------
--------------
At 31 July 2024
161,203
487,402
51,274
699,879
-----------
--------------
-----------
--------------
Carrying amount
At 31 July 2024
635,985
1,192,353
114,798
1,943,136
-----------
--------------
-----------
--------------
At 31 July 2023
370,483
825,381
62,023
1,257,887
-----------
--------------
-----------
--------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Motor vehicles
£
At 31 July 2024
297,180
-----------
At 31 July 2023
220,376
-----------
14. STOCKS
2024
2023
£
£
Raw materials and consumables
198,041
283,088
-----------
-----------
15. DEBTORS
2024
2023
£
£
Trade debtors
2,403,650
1,503,873
Prepayments and accrued income
91,059
19,882
Other debtors
109,965
452,929
--------------
--------------
2,604,674
1,976,684
--------------
--------------
16. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise the following:
2024
2023
£
£
Cash at bank and in hand
1,791,318
8,098
Bank overdrafts
( 58,185)
--------------
---------
1,791,318
( 50,087)
--------------
---------
17. CREDITORS: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
9,200
67,385
Trade creditors
582,518
447,176
Accruals and deferred income
208,084
25,597
Corporation tax
410,579
6,999
Social security and other taxes
1,217,321
1,855,739
Obligations under finance leases and hire purchase contracts
121,744
49,138
Director loan accounts
35
1,099
Other creditors
35,886
86,262
--------------
--------------
2,585,367
2,539,395
--------------
--------------
The following liabilities disclosed under creditors falling due within one year are secured by the company:
2024
2023
£
£
Obligations under finance leases and hire purchase contracts
121,744
49,138
-----------
---------
18. CREDITORS: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
11,670
20,870
Obligations under finance leases and hire purchase contracts
376,781
147,413
-----------
-----------
388,451
168,283
-----------
-----------
The following liabilities disclosed under creditors falling due after more than one year are secured by the company:
2024
2023
£
£
The following liabilities disclosed under creditors falling due after more than one year are secured by the company:
376,781
147,413
-----------
-----------
19. FINANCE LEASES AND HIRE PURCHASE CONTRACTS
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
£
£
Not later than 1 year
121,744
49,138
Later than 1 year and not later than 5 years
376,781
147,413
-----------
-----------
498,525
196,551
-----------
-----------
20. PROVISIONS
Deferred tax (note 21)
£
At 1 August 2023
128,325
Additions
311,650
-----------
At 31 July 2024
439,975
-----------
21. DEFERRED TAX
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 20)
439,975
128,325
-----------
-----------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
439,975
128,325
-----------
-----------
22. EMPLOYEE BENEFITS
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 136,408 (2023: £ 94,980 ).
23. CALLED UP SHARE CAPITAL
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
1
1
1
1
-----
-----
-----
-----
24. ANALYSIS OF CHANGES IN NET DEBT
At 1 Aug 2023
Cash flows
At 31 Jul 2024
£
£
£
Cash at bank and in hand
8,098
1,783,220
1,791,318
Bank overdrafts
(58,185)
58,185
Debt due within one year
(59,437)
(71,542)
(130,979)
Debt due after one year
(168,283)
(220,168)
(388,451)
-----------
--------------
--------------
( 277,807)
1,549,695
1,271,888
-----------
--------------
--------------
25. OPERATING LEASES
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
138,533
70,000
Later than 1 year and not later than 5 years
313,650
202,521
-----------
-----------
452,183
272,521
-----------
-----------
26. DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES
The directors loan account was in credit throughout the year. The loan is repayable on demand and no interest is charged.