Company registration number 04738635 (England and Wales)
SERVICES SUPPORT (AVON & SOMERSET) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SERVICES SUPPORT (AVON & SOMERSET) LIMITED
COMPANY INFORMATION
Directors
JS Gordon
KA Cunningham
G Connelly
MHBG Gansey
(Appointed 31 January 2024)
CH McLure
(Appointed 31 January 2025)
Secretary
Resolis Limited
Company number
04738635
Registered office
1 Park Row
Leeds
United Kingdom
LS1 5AB
Auditor
Johnston Carmichael LLP
Bishop's Court
29 Albyn Place
Aberdeen
AB10 1YL
SERVICES SUPPORT (AVON & SOMERSET) LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 16
SERVICES SUPPORT (AVON & SOMERSET) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Principal activities

The principal activity of the Company is to design, build, finance and operate new courts and offices in Bristol and Worle in accordance with an agreement with the Lord Chancellor on behalf of Her Majesty's Court Service.

    

Financial close was achieved on 23 August 2004. The concession period is until 18 March 2034. The completion certificate for the initial construction works was received on 28 September 2007.    

    

There have not been any significant changes in the Company's principal activities in the year under review. The Directors are not aware, at the date of this report, of any major changes in the Company's activities in the next year.

 

In September 2007, the Company completed construction on Bristol Courts, the final phase. Full unitary revenue has been received from Her Majesty's Court Service in monthly instalments since the site became fully operational, with only minor performance deductions suffered during the year.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £390,324. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

T Ryan
(Resigned 31 January 2024)
JS Gordon
CT Solley
(Resigned 31 January 2025)
KA Cunningham
G Connelly
MHBG Gansey
(Appointed 31 January 2024)
CH McLure
(Appointed 31 January 2025)
Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 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:

SERVICES SUPPORT (AVON & SOMERSET) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Going Concern

These financial statements have been prepared on the going concern basis for the reasons set out in the Accounting Policies.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
KA Cunningham
Director
19 June 2025
SERVICES SUPPORT (AVON & SOMERSET) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SERVICES SUPPORT (AVON & SOMERSET) LIMITED
- 3 -
Opinion

We have audited the financial statements of Services Support (Avon & Somerset) Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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

The other information comprises the information included in the annual report and financial statements other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report and financial statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

SERVICES SUPPORT (AVON & SOMERSET) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SERVICES SUPPORT (AVON & SOMERSET) LIMITED (CONTINUED)
- 4 -
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 directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on pages 1 and 2, the Directors are 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 Directors determine 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 Directors are 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 Directors either intend to liquidate the company or to cease operations, or have 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.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

 

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.

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

SERVICES SUPPORT (AVON & SOMERSET) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SERVICES SUPPORT (AVON & SOMERSET) LIMITED (CONTINUED)
- 5 -

We obtained an understanding of the legal and regulatory frameworks that are applicable to company and the sector in which it operates, focusing on provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

 

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of relevant correspondence with regulatory bodies and board meeting minutes.

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

 

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

 

SERVICES SUPPORT (AVON & SOMERSET) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SERVICES SUPPORT (AVON & SOMERSET) LIMITED (CONTINUED)
- 6 -

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.

Jenny Junnier (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
Statutory Auditor
Aberdeen, United Kingdom
19 June 2025
SERVICES SUPPORT (AVON & SOMERSET) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
2024
2023
Notes
£'000
£'000
Turnover
5,744
5,027
Cost of sales
(3,800)
(3,393)
Gross profit
1,944
1,634
Administrative expenses
(374)
(413)
Operating profit
1,570
1,221
Interest receivable and similar income
2,996
3,080
Interest payable and similar expenses
5
(3,106)
(3,285)
Profit before taxation
1,460
1,016
Tax on profit
(430)
(239)
Profit for the financial year
1,030
777
Other comprehensive income
Cash flow hedges gain/(loss) arising in the year
1,244
(387)
Tax relating to other comprehensive income
(312)
96
Total comprehensive income for the year
1,962
486

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SERVICES SUPPORT (AVON & SOMERSET) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 8 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Current assets
Debtors falling due after more than one year
7
37,213
39,880
Debtors falling due within one year
7
3,997
3,694
Investments
8
2,000
2,750
Cash at bank and in hand
2,703
2,077
45,913
48,401
Creditors: amounts falling due within one year
9
(4,619)
(4,683)
Net current assets
41,294
43,718
Creditors: amounts falling due after more than one year
10
(36,320)
(40,316)
Net assets
4,974
3,402
Capital and reserves
Called up share capital
50
50
Hedging reserve
(984)
(1,916)
Profit and loss reserves
5,908
5,268
Total equity
4,974
3,402

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 19 June 2025 and are signed on its behalf by:
KA Cunningham
Director
Company registration number 04738635 (England and Wales)
SERVICES SUPPORT (AVON & SOMERSET) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
Share capital
Hedging reserve
Profit and loss reserves
Total
£'000
£'000
£'000
£'000
Balance at 1 January 2023
50
(1,625)
4,654
3,079
Year ended 31 December 2023:
Profit
-
-
777
777
Other comprehensive income:
Cash flow hedges gains
-
(387)
-
(387)
Tax relating to other comprehensive income
-
96
-
0
96
Total comprehensive income
-
(291)
777
486
Dividends
-
-
(163)
(163)
Balance at 31 December 2023
50
(1,916)
5,268
3,402
Year ended 31 December 2024:
Profit
-
-
1,030
1,030
Other comprehensive income:
Cash flow hedges gains
-
1,244
-
1,244
Tax relating to other comprehensive income
-
(312)
-
0
(312)
Total comprehensive income
-
932
1,030
1,962
Dividends
-
-
(390)
(390)
Balance at 31 December 2024
50
(984)
5,908
4,974
SERVICES SUPPORT (AVON & SOMERSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
1
Accounting policies
Company information

Services Support (Avon & Somerset) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Park Row, Leeds, United Kingdom, LS1 5AB.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The directors note the company's net assets of £4,974,000 (2023: £3,402,000).true

 

In assessing the going concern status of the company the directors have reviewed the company's projected cash flows by reference to a financial model covering accounting periods up to March 2034. The financial model has been prepared on the basis of a detailed analysis of the company's finances and contracts.

 

Having examined the current status of the Company's principal contracts and likely developments in the foreseeable future, the directors consider that the company will be able to settle its liabilities as they fall due and accordingly the financial statements have been prepared on a going concern basis. More information is provided in the notes to the financial statements.

1.3
Turnover

Turnover represents the services' share of the management services income received by the company for the provision of a PFI (Private Finance Initiative) asset to the customer. This income is received over the life of the concession period. Management service income is allocated between Turnover, finance debtor interest and reimbursement of finance debtor so as to generate a constant rate of return in respect of the finance debtor over the life of the contract. [Service revenue is recognised as a margin on non pass through operating[ and maintenance costs]. The Unitary Charge Control Account recognises differences between costs incurred and those forecast. The margin is recalculated, based on future costs forecast, to result in a nil Unitary Charge Control Account at the end of concession.] Variations and pass through income under the Project Agreement are included within Turnover.

Turnover is shown net of VAT and other sales related taxes.

The company is accounting for the concession asset based on the ability to substantially transfer all the risks and rewards of ownership to the customer, with this arrangement the costs incurred by the company on the design and construction of the assets have been treated as a finance debtor within these financial statements.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

SERVICES SUPPORT (AVON & SOMERSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 11 -

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

 

The Company is obligated to keep a separate cash reserves in respect of future maintenance costs, a lifecycle reserve and change in law reserve. This restricted cash balance, which is shown at the reporting date within the "cash at bank and in hand" and "short term deposits" balance, amounts to £3,164,000 at the year end (2023: £3,619,000)

1.5
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

SERVICES SUPPORT (AVON & SOMERSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.6
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.7
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.8

Lifecycle costs

Costs relating to lifecycle expenditure are expensed on actual spend on lifecycle costs, and an accrual is recognised for profiled lifecycle expenditure which was included as part of the financial close modelling.

2
Judgements 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 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

SERVICES SUPPORT (AVON & SOMERSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 13 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was nil (2023: nil).

4
Directors' remuneration
2024
2023
£'000
£'000
Remuneration paid to directors
166
150

No directors received any remuneration for services to the Company during the year (2023: £nil)

 

Fees for directors services were paid to Aberdeen Infrastructure Limited £63,618 (2023: £60,994), Jura Acquisition Limited £63,618 (2023: £60,994), Amey Investments Limited £3,156 (2023: £5,767) and DIF Infra Yield 1 UK Limited £35,851 (2023: £22,188)

 

The Company is managed by an external Management Service Provider that reports to the Directors.

 

5
Interest payable and similar expenses
2024
2023
£'000
£'000
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2,108
2,235
Interest payable to group undertakings
1,006
1,051
Commitment fee on undrawn loan facility
23
18
3,137
3,304
Other finance costs:
Finance costs for financial instruments measured at fair value through profit or loss
(47)
(36)
Amortised debt issue costs
16
17
3,106
3,285
SERVICES SUPPORT (AVON & SOMERSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
6
Financial instruments
2024
2023
£'000
£'000
Carrying amount of financial assets include:
Instruments measured at fair value through profit or loss
2,000
2,750
Carrying amount of financial liabilities include:
Measured at fair value through profit or loss
- Other financial liabilities
1,312
2,556
Financial instruments measured at fair value

The fair value of interest rate swaps is based on broker quotes. Those quotes are tested for reasonableness by discounting estimated future cash flows based on the terms and maturity of each contract and using market interest rates for a similar instrument the measurement date.

Hedge accounting

Derivative financial instruments designated as hedges of variable interest rate risk on an interest rate swap.

 

To hedge the potential movement in the interest cash flows associated with the SONIA rate used for the bank term loan, the Company has entered into fixed interest rate swap with a nominal value equal to the initial borrowings with the same term as the loans and interest payment dates. These results in the Company paying 5.37% per annum and receiving SONIA.

 

The derivatives are accounted for as a cash flow hedge in accordance with FRS 102 section 1A small entities and have the fair values. The cashflows arising from the interest rate swaps will continue until their maturity in 2032, coincidental with the repayment of the term loans. The change in fair value in the period was a decrease of £1,244,000 (2023: £386,000 increase) with the entire change being recognised in other comprehensive income as the swaps are considered to be 100% effective.

7
Debtors
2024
2023
Amounts falling due within one year:
£'000
£'000
Trade debtors
1,051
1,038
Finance debtor
2,785
2,599
Prepayments and accrued income
161
57
3,997
3,694
2024
2023
Amounts falling due after more than one year:
£'000
£'000
Finance debtor
36,885
39,241
Deferred tax asset
328
639
Total debtors
41,210
43,574

The finance debtor represents payments due from in respect of the Project Agreement. These payments are received over the remaining life of the agreement.

 

SERVICES SUPPORT (AVON & SOMERSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
8
Current asset investments
2024
2023
£'000
£'000
Short term deposits
2,000
2,750
9
Creditors: amounts falling due within one year
2024
2023
£'000
£'000
Bank loans
2,752
2,482
Trade creditors
680
576
Corporation tax
86
112
Other taxation and social security
462
285
Accruals and deferred income
639
1,228
4,619
4,683
10
Creditors: amounts falling due after more than one year
2024
2023
£'000
£'000
Bank loans and overdrafts
28,194
30,946
Other borrowings
6,814
6,814
Derivative financial instruments
1,312
2,556
36,320
40,316

The secured senior loan represents amounts borrowed under the Facility Agreement with a syndicate of banks in order to finance the construction of the project.

 

The loan is secured by a fixed and floating charge over all the shares of the Services Support (Avon & Somerset) Limited.

The loan is repayable in instalments based on an agreed percentage amount of the total facility per annum until September 2032.

 

Interest on the facility is charged at rates linked to SONIA.

Amounts included above which fall due after five years are as follows:
Payable by instalments
14,193
18,159
Payable other than by instalments
6,814
6,814
21,007
24,973
SERVICES SUPPORT (AVON & SOMERSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
11
Parent company

As a wholly owned subsidiary of Services Support (Avon & Somerset) Holdings Limited.

The Company’s ultimate and immediate parent company and controlling entity, and the largest and smallest group in which its results are consolidated is Service Support (Avon & Somerset) Holdings Limited, a company incorporated and registered in England and Wales. Copies of the parent company accounts are available from Companies House, Crown Way, Cardiff, CF14 3UZ.

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Related party transactions

As a wholly owned subsidiary of Services Support (Avon & Somerset) Holdings Limited, the Company has taken advantage of the exemption under Financial Reporting Standard 102 not to provide information on related party transactions with other undertakings within the Services Support (Avon & Somerset) Holdings Limited Group.

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