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COMPANY REGISTRATION NUMBER: 02185404
Road Maintenance Services Limited
Financial Statements
31 December 2024
Road Maintenance Services Limited
Financial Statements
Year ended 31 December 2024
Contents
Pages
Officers and professional advisers
1
Strategic report
2 to 3
Directors' report
4 to 5
Independent auditor's report to the members
6 to 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 to 21
Road Maintenance Services Limited
Officers and Professional Advisers
The board of directors
Mr A P Holland
Mr C W Barlow
Mr C Charlesworth
Mr S Fyfe
Registered office
Mowpen Brow
High Legh
Knutsford
Cheshire
WA16 6PB
Auditor
Champion Accountants LLP, Statutory Auditor
Chartered Accountants
1 Worsley Court
High Street
Worsley
Manchester
M28 3NJ
Bankers
Lloyds TSB Bank plc
53 King Street
Manchester
M2 4LQ
Road Maintenance Services Limited
Strategic Report
Year ended 31 December 2024
Road Maintenance Services Limited is the principal operating company within a family-owned group that also includes Road Maintenance Services (Preservations) Limited, both under the ownership of Road Maintenance Services (Holdings) Limited. All three businesses are managed and operated by a highly experienced and professional leadership team.
Business review
The core activity of Road Maintenance Services Limited is providing low-carbon preventative maintenance solutions for highways and airfields . Operating within competitive sectors, the company faces both trading and environmental risks, detailed below.
For the year, the company achieved a turnover of £35.17m (2023: £27.77m), with an operating profit of £2.25m (2023: £0.76m). The directors consider these key financial performance indicators to be significant.
People are the foundation of our business. We strive to be an employer of choice for both current and prospective employees. As a family business, we deeply value our staff; everyone contributes to our collective success.
The professional management of HSQE and legal compliance remains a central focus. The company continues to invest in skilled professionals and advisors to ensure our performance not only meets but exceeds the high standards we have already achieved.
We are committed to making a positive environmental impact through the management of our operations and the promotion of innovative, proprietary processes aimed at reducing carbon emissions.
The company's core values are:
o High Standards of HSQE o Legal Compliance o Professionalism o Efficiency
The company's performance in 2024 showed a marked improvement compared to 2023 driven by increased spending by Local Authority Clients, internal efficiency improvements and a developing range of services provided. The board is pleased with the financial results achieved.
Risks and uncertainties
While we view the prospects for the year ending 31 December 2025 as positive, all businesses face risks and uncertainties that could materially impact performance, causing results to deviate from expectations or historical trends. . Our processes are sensitive to fluctuations in oil prices, requiring vigilant cost management. Additionally, adverse weather conditions remain a significant risk to productivity and may necessitate remedial work. The seasonal nature of our operations - primarily from March to October - requires careful cash flow management. . This seasonality also dictates a blend of full-time and temporary staff, making the retention of skilled workers a key challenge. . RMS has always taken a careful and strategic approach to remedial provisioning, using a well-tested system for monitoring and analysis. This robust methodology remains unchanged and is reflected in our 2024 accounts. . The company maintains strong working capital levels to mitigate unexpected trading and market risks. Prudent business and financial management should ensure that our future prospects remain solid.
Outlook for 2025
In 2025, RMS will continue a comprehensive efficiency improvement programme, focusing on site operational improvements aligned with our core values. This initiative, part of a three-year improvement plan, aims to enhance efficiency across all areas of the business.. We remain confident in the outlook for the coming year, thanks to the innovative and adaptive leadership of our management team. We expect the financial outlook for 2025 to be positive, with reasonable prospects for the year ahead.
This report was approved by the board of directors on 18 September 2025 and signed on behalf of the board by:
Mr S Fyfe
Director
Road Maintenance Services Limited
Directors' Report
Year ended 31 December 2024
The directors present their report and the financial statements of the company for the year ended 31 December 2024 .
Directors
The directors who served the company during the year were as follows:
Mr A P Holland
Mr C W Barlow
Mr C Charlesworth
Mr S Fyfe
Results and dividends
The results for the year are set out on page 10. The directors do not recommend the payment of a dividend.
Research and development
The company undertakes research and development activities in connection with its principal activity.
Disclosure of information in the strategic report
The directors have included the review of the business, future developments, key performance indicators and principal risk and uncertainties in the strategic report.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - 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. 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. Champion were appointed auditors to the company and in accordance with Section 385 of the Companies Act 2006, a resolution proposing their reappointment will be put to the Annual General Meeting.
This report was approved by the board of directors on 18 September 2025 and signed on behalf of the board by:
Mr S Fyfe
Director
Road Maintenance Services Limited
Independent Auditor's Report to the Members of Road Maintenance Services Limited
Year ended 31 December 2024
Opinion
We have audited the financial statements of Road Maintenance Services Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows 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 the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit 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 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 other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and 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.
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. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. - We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud. - We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102 and Companies Act 2006. - We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly. - Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment. The key procedures we undertook to detect irregularities including fraud during the course of the audit included: - Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual. - Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied. - Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to stock valuation & cut-off. - Assessing the extent of compliance, or lack of, with the relevant laws and regulations. - Testing key revenue lines, in particular cut-off, for evidence of management bias. - Performing a physical verification of key assets including stocktake attendance. - Obtaining third-party confirmation of material bank balances. - Documenting and verifying all significant related party balances and transactions. There are inherent limitations in the 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. The risk of not detecting a material misstatement resulting from fraud is higher than one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 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 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.
Gary Woodall FCCA
(Senior Statutory Auditor)
For and on behalf of
Champion Accountants LLP, Statutory Auditor
Chartered Accountants
1 Worsley Court
High Street
Worsley
Manchester
M28 3NJ
18 September 2025
Road Maintenance Services Limited
Statement of Comprehensive Income
Year ended 31 December 2024
2024
2023
Note
£
£
Turnover
4
35,174,639
27,768,229
Cost of sales
( 29,161,455)
( 23,777,390)
-------------
-------------
Gross profit
6,013,184
3,990,839
Administrative expenses
( 3,792,032)
( 3,250,883)
Other operating income
5
25,000
25,000
------------
------------
Operating profit
6
2,246,152
764,956
Income from other fixed asset investments
9
34,906
–
Other interest receivable and similar income
10
89,690
52,002
Interest payable and similar expenses
11
–
( 7,681)
------------
------------
Profit before taxation
2,370,748
809,277
Tax on profit
12
( 620,240)
( 215,993)
------------
---------
Profit for the financial year
1,750,508
593,284
------------
---------
Reclassification from revaluation reserve to profit and loss account
(25,780)
–
------------
---------
Total comprehensive income for the year
1,724,728
593,284
------------
---------
All the activities of the company are from continuing operations.
Road Maintenance Services Limited
Statement of Financial Position
31 December 2024
2024
2023
Note
£
£
£
Fixed assets
Investments
14
–
37,744
Current assets
Stocks
15
2,034,227
1,501,976
Debtors
16
14,484,357
10,823,758
Cash at bank and in hand
2,337,803
4,234,322
-------------
-------------
18,856,387
16,560,056
Creditors: amounts falling due within one year
17
6,626,645
6,074,940
-------------
-------------
Net current assets
12,229,742
10,485,116
-------------
-------------
Total assets less current liabilities
12,229,742
10,522,860
Provisions
Deferred taxation
18
( 11,366)
6,480
-------------
-------------
Net assets
12,241,108
10,516,380
-------------
-------------
Capital and reserves
Called up share capital
21
100
100
Revaluation reserve
22
–
25,780
Profit and loss account
22
12,241,008
10,490,500
-------------
-------------
Shareholders funds
12,241,108
10,516,380
-------------
-------------
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 September 2025 , and are signed on behalf of the board by:
Mr S Fyfe
Director
Company registration number: 02185404
Road Maintenance Services Limited
Statement of Changes in Equity
Year ended 31 December 2024
Called up share capital
Revaluation reserve
Profit and loss account
Total
£
£
£
£
At 1 January 2023
100
30,496
9,892,500
9,923,096
Profit for the year
593,284
593,284
Other comprehensive income for the year:
Reclassification from revaluation reserve to profit and loss account
–
(4,716)
4,716
–
----
--------
------------
------------
Total comprehensive income for the year
–
( 4,716)
598,000
593,284
At 31 December 2023
100
25,780
10,490,500
10,516,380
Profit for the year
1,750,508
1,750,508
Other comprehensive income for the year:
Reclassification from revaluation reserve to profit and loss account
–
(25,780)
–
(25,780)
----
--------
-------------
-------------
Total comprehensive income for the year
–
( 25,780)
1,750,508
1,724,728
----
--------
-------------
-------------
At 31 December 2024
100
–
12,241,008
12,241,108
----
--------
-------------
-------------
Road Maintenance Services Limited
Statement of Cash Flows
Year ended 31 December 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
1,750,508
593,284
Adjustments for:
Unrealised gain/(loss) on financial assets at fair value through profit or loss
–
5,548
Income from other fixed asset investments
( 34,906)
–
Other interest receivable and similar income
( 89,690)
( 52,002)
Interest payable and similar expenses
–
7,681
Tax on profit
620,240
215,993
Accrued income
( 31,943)
( 483,521)
Changes in:
Stocks
( 532,251)
( 97,898)
Trade and other debtors
( 3,660,599)
1,180,643
Trade and other creditors
( 3,699)
455,854
------------
------------
Cash generated from operations
( 1,982,340)
1,825,582
Interest paid
–
( 7,681)
Interest received
89,690
52,002
Tax paid
( 127,290)
( 743,633)
------------
------------
Net cash (used in)/from operating activities
( 2,019,940)
1,126,270
------------
------------
Cash flows from investing activities
Proceeds from sale of other investments
39,906
–
------------
------------
Net cash from investing activities
39,906
–
------------
------------
Cash flows from financing activities
Payments to/proceeds from loans from group undertakings
83,515
( 972,745)
------------
------------
Net cash from/(used in) financing activities
83,515
( 972,745)
------------
------------
Net (decrease)/increase in cash and cash equivalents
( 1,896,519)
153,525
Cash and cash equivalents at beginning of year
4,234,322
4,080,797
------------
------------
Cash and cash equivalents at end of year
2,337,803
4,234,322
------------
------------
Road Maintenance Services Limited
Notes to the Financial Statements
Year ended 31 December 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 Mowpen Brow, High Legh, Knutsford, Cheshire, WA16 6PB.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit or loss . The financial statements are prepared in sterling, which is the functional currency of the entity. Monetary amounts in these financial statements are rounded to the nearest £.
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Judgements and key sources of estimation uncertainty
In preparing these financial statements, the directors have made significant judgements in estimating the remedial provision required for ongoing and completed contracts. This provision is calculated by management for each contract based on their assessment of the total area, measured in square metres, that is expected to require remedial work. The estimated cost per square metre for such treatment is then applied to determine the total estimated remedial cost. This assessment involves a detailed review of the contracts, considering historical experience, current project conditions, and any specific contractual obligations. Given the inherent uncertainties in estimating the extent of remedial work and the associated costs, the actual outcomes may differ from these estimates. The remedial provision is reviewed regularly and adjusted where necessary to reflect the most current information available. The value of the remedial provision at 31 December 2024 was £3,489,439.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. Revenue from a contract to provide services is recognised by reference to the stage of completion of the contract. The stage of completion of the contract is determined by reference to the square metres worked as a proportion of total contract meterage to be worked at the reporting date. Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.
Income 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.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
100% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes being recognised initially in the profit and loss account and then transferred to the revaluation reserve as the change in fair value is not distributable until realised.
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.
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.
Pension 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.
4. Turnover
Turnover arises from:
2024
2023
£
£
Road resurfacing services
35,174,639
27,768,229
-------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2024
2023
£
£
Management charges receivable
25,000
25,000
--------
--------
6. Operating profit
Operating profit or loss is stated after charging:
2024
2023
£
£
Impairment of trade debtors
25,000
–
Fees payable for the audit of the financial statements
11,000
13,000
Fair value adjustments to investments
–
5,548
--------
--------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Administrative staff
44
41
Contracting staff
82
74
----
----
126
115
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
6,985,262
6,299,219
Social security costs
784,198
703,383
Other pension costs
219,014
224,018
------------
------------
7,988,474
7,226,620
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
429,575
427,789
Company contributions to defined contribution pension plans
48,109
48,603
---------
---------
477,684
476,392
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2024
2023
No.
No.
Defined contribution plans
3
3
----
----
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
164,500
164,047
Company contributions to defined contribution pension plans
40,000
40,000
---------
---------
204,500
204,047
---------
---------
9. Income from other fixed asset investments
2024
2023
£
£
Profit on disposal of investments
34,906
–
--------
----
10. Other interest receivable and similar income
2024
2023
£
£
Interest on cash and cash equivalents
89,690
52,002
--------
--------
11. Interest payable and similar expenses
2024
2023
£
£
Other interest payable and similar charges
–
7,681
----
-------
12. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
631,123
212,215
Adjustments in respect of prior periods
( 1)
–
---------
---------
Total current tax
631,122
212,215
---------
---------
Deferred tax:
Origination and reversal of timing differences
( 10,882)
3,778
---------
---------
Tax on profit
620,240
215,993
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 23.52 %).
2024
2023
£
£
Profit on ordinary activities before taxation
2,370,748
809,277
------------
---------
Profit on ordinary activities by rate of tax
592,687
190,343
Adjustment to tax charge in respect of prior periods
( 1)
–
Effect of expenses not deductible for tax purposes
28,776
24,899
Effect of different UK tax rates on some earnings
–
5
Benefit of tax reliefs
( 1,221)
–
Effect of change in rate for deferred tax
–
273
Unequalised deferred tax
( 1)
473
------------
---------
Tax on profit
620,240
215,993
------------
---------
13. Intangible assets
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
35,000
--------
Amortisation
At 1 January 2024 and 31 December 2024
35,000
--------
Carrying amount
At 31 December 2024
–
--------
At 31 December 2023
–
--------
14. Investments
Other investments other than loans
£
Cost or valuation
At 1 January 2024
37,744
Disposals
( 39,906)
Revaluations
2,162
--------
At 31 December 2024
–
--------
Impairment
At 1 January 2024 and 31 December 2024
–
--------
Carrying amount
At 31 December 2024
–
--------
At 31 December 2023
37,744
--------
The market value of the listed investments at 31 December 2024 was £nil (2023 £37,744).
15. Stocks
2024
2023
£
£
Raw materials and consumables
2,034,227
1,501,976
------------
------------
16. Debtors
2024
2023
£
£
Trade debtors
3,198,061
1,253,928
Amounts owed by group undertakings
11,286,296
9,536,095
Other debtors
–
33,735
-------------
-------------
14,484,357
10,823,758
-------------
-------------
17. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,310,510
1,392,748
Amounts owed to group undertakings
291,938
208,423
Accruals and deferred income
4,118,208
4,150,151
Corporation tax
622,934
119,102
Social security and other taxes
283,055
204,516
------------
------------
6,626,645
6,074,940
------------
------------
18. Provisions
Deferred tax (note 19)
£
At 1 January 2024
6,480
Additions
( 17,846)
--------
At 31 December 2024
( 11,366)
--------
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 18)
( 11,366)
6,480
--------
-------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Other revaluations
–
6,964
Deferred tax - other timing differences
( 11,366)
( 484)
--------
-------
(11,366)
6,480
--------
-------
20. Employee benefits
Pension plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 219,014 (2023: £ 224,018 ).
21. Called up share capital
Authorised share capital
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
250,000
250,000
250,000
250,000
---------
---------
---------
---------
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
22. Reserves
Revaluation reserves - This reserve records the value of investment revaluations which are not distributable until realised. Deferred tax is calculated on revaluation reserve movements. The movements on the reserve in the current year are set out below reflecting the realisation of the investment:
2024
£
Opening balance at 1 January 2024 25,780
Movement in the year (32,744)
Deferred tax movement 6,964
--------
Closing balance at 31 December 2024 –
--------
Profit and loss account - This reserve records retained earnings and accumulated losses.
23. Analysis of changes in net debt
At 1 Jan 2024
Cash flows
At 31 Dec 2024
£
£
£
Cash at bank and in hand
4,234,322
(1,896,519)
2,337,803
Debt due within one year
(208,423)
(83,515)
(291,938)
------------
------------
------------
4,025,899
( 1,980,034)
2,045,865
------------
------------
------------
24. Related party transactions
The company has taken advantage of the exemption conferred by FRS 102 section 33 not to disclose transactions and amounts due to and from fellow group companies that are wholly owned by the ultimate parent company, Road Maintenance Services (Holdings) Limited.
25. Controlling party
The directors consider Road Maintenance Services (Holdings) Limited , a company incorporated in England and Wales, to be the company's parent and ultimate parent undertaking. The parent company operates from the same registered office address as this company.