Response Engineering Solutions Limited - Accounts to registrar (filleted)

REGISTERED NUMBER: 06452013 (United Kingdom)

Unaudited Financial Statements for the Year Ended 31 December 2024

for

RESPONSE ENGINEERING SOLUTIONS LIMITED

Page

Balance Sheet

1

Notes to the Financial Statements

3

FIXED ASSETS

Intangible assets

4

19,333

23,333

Tangible assets

5

476,287

743,179

495,620

766,512

CURRENT ASSETS

Stocks

6

100,978

296,078

Debtors

7

547,498

791,725

Cash at bank

80,501

76,824

728,977

1,164,627

CREDITORS

Amounts falling due within one year

8

697,636

1,395,107

NET CURRENT ASSETS/(LIABILITIES)

31,341

(230,480

)

TOTAL ASSETS LESS CURRENT LIABILITIES

526,961

536,032

CREDITORS

Amounts falling due after more than one year

9

(649,203

)

(435,469

)

PROVISIONS FOR LIABILITIES

(31,398

)

(75,423

)

NET (LIABILITIES)/ASSETS

(153,640

)

25,140

CAPITAL AND RESERVES

Called up share capital

12

100

Share premium

24,970

Capital redemption reserve

70

Retained earnings

(178,780

)

-

SHAREHOLDERS' FUNDS

(153,640

)

25,140

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2025 and were signed on its behalf by:

Mr D Jones - Director

1.	STATUTORY INFORMATION

Response Engineering Solutions Limited is a private company, limited by shares , registered in United Kingdom. The company's registered number and registered office address are as below:

Registered number:

06452013

Registered office:

Unit 9 Hirwaun Industrial Estate

Hirwaun

Aberdare

Mid Glamorgan

CF44 9UP

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

During the year, the company made a pre-tax loss in the period of £222,805 (2023: £74,607) and as at 31st December 2024 had net liabilities of £153,640 (2023: £25,140).

The company has restructured its debts and is meeting its liabilities as they fall due, and maintains the continued support of the directors and its financial institutions. Therefore it is considered appropriate to prepare the financial statements on a going concern basis.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2019, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

No depreciation charged

Improvements to property

-

20% Straight line

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Trade debtors

Trade debtors are amounts due form customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability of the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company's shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Financial Instruments

Classification

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Debt instruments are subsequently measured at amortised cost.

Impairment

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assess individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 39 (2023 - 54 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2024

and 31 December 2024

40,000

AMORTISATION

At 1 January 2024

16,667

Amortisation for year

4,000

At 31 December 2024

20,667

NET BOOK VALUE

At 31 December 2024

19,333

At 31 December 2023

23,333

5.	TANGIBLE FIXED ASSETS

Improvements

Freehold

to

Plant and

property

machinery

£

COST

At 1 January 2024

351,008

134,193

417,358

Additions

-

2,533

9,097

Disposals

(177,499

)

-

(70,819

)

At 31 December 2024

173,509

136,726

355,636

DEPRECIATION

At 1 January 2024

-

119,331

243,912

Charge for year

-

3,500

21,297

Eliminated on disposal

-

(62,446

)

At 31 December 2024

-

122,831

202,763

NET BOOK VALUE

At 31 December 2024

173,509

13,895

152,873

At 31 December 2023

351,008

14,862

173,446

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

COST

At 1 January 2024

2,853

663,871

44,607

1,613,890

Additions

-

1,917

13,547

Disposals

-

(77,812

)

-

(326,130

)

At 31 December 2024

2,853

586,059

46,524

1,301,307

DEPRECIATION

At 1 January 2024

1,741

471,884

33,843

870,711

Charge for year

278

46,467

2,812

74,354

Eliminated on disposal

-

(57,599

)

-

(120,045

)

At 31 December 2024

2,019

460,752

36,655

825,020

NET BOOK VALUE

At 31 December 2024

834

125,307

9,869

476,287

At 31 December 2023

1,112

191,987

10,764

743,179

The total above includes assets at a cost of £131,980 (2023: £449,514) carried at a net book value of £103,597 (2023: £226,443) financed under hire purchase agreements. The depreciation charged during the year was £7,847 (2023: £50,549).

The total balance of hire purchase liabilities stands at £52,155 (2023: £96,184)

6.

STOCKS

2024

2023

£

Stocks

100,978

296,078

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

Trade debtors

423,631

461,932

Other debtors

100,367

261,958

Prepayments

23,500

67,835

547,498

791,725

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

Bank loans and overdrafts (see note 10)

45,798

178,088

Hire purchase contracts

21,829

45,897

Trade creditors

120,057

340,666

Social security and other taxes

152,789

405,343

Other creditors

328,542

344,581

Accrued expenses

28,621

80,532

697,636

1,395,107

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

Bank loans (see note 10)

213,723

385,182

Hire purchase contracts

30,326

50,287

Social security and other taxes

405,154

-

649,203

435,469

2024

2023

£

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

30,532

87,417

10.

LOANS

An analysis of the maturity of loans is given below:

2024

2023

£

Amounts falling due within one year or on demand:

Bank loans

45,798

178,088

Amounts falling due between two and five years:

Bank loans - 2-5 years

183,191

297,765

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

30,532

87,417

11.	SECURED DEBTS

The following secured debts are included within creditors:

2024

2023

£

Other creditors

270,206

308,057

Bank loans

259,521

302,885

529,727

610,942

On the 15th March 2011, the company entered into a factoring agreement with its bankers. Included within other creditors is the sum of £270,206 (2023: £308,057) owed to Lloyds TSB. All monies due, or to become due, from the company to Lloyds TSB Commercial Finance Ltd on any account whatsoever are secured by an all assets debenture dated 15 March 2011.

A charge was created on the loan for the Hirwaun premises by Lloyds Bank on 22nd September 2015. The loan was settled in full on 19th December 2024. The closing loan balance at the prior year-end - 31st December 2023 - was £31,772 .

A charge was created on the loans for the purchase of the Cheddar premises by Lloyds Bank on the 15th March 2017. The closing loan balance at 31st December 2024 was £259,521 (2023: £271,113).

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

50

Ordinary A

£1

50

Ordinary B

£1

50

100