Registration number:
Southern Ecological Solutions Limited
for the Period from 1 April 2024 to 6 April 2025
Southern Ecological Solutions Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Southern Ecological Solutions Limited
Company Information
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Directors |
J W Chillcott A Goddard F Herlihy S A L Mogford G Mooney A Pankhurst S J Pankhurst A A Ryder I H Strudwick |
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Company secretary |
S Evans |
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Registered office |
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Auditors |
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Southern Ecological Solutions Limited
Strategic Report for the Period from 1 April 2024 to 6 April 2025
The directors present their strategic report for the period from 1 April 2024 to 6 April 2025.
Principal activity
The principal activity of the company is the provision of consultancy and technical services, specifically relating to ecology, arboriculture, landscape and habitat management, for a wide range of clients across the UK.
Fair review of the business
Southern Ecological Solutions provides services to a wide customer base spread across many sectors including holistic ecological, habitat creation and management, arboriculture and landscape services. Thanks to the quality of service provided, the Company has an excellent reputation and enjoys a healthy level of repeat business.
The Company's main commercial operations comprise:
- Ecological assessments and surveys – residential development and nationally significant infrastructure projects
- Habitat creation and maintenance - including species-rich grasslands, ponds, wetlands, hedgerows, species-rich scrub land and woodlands.
- Arboriculture surveying services – include drone surveys, tree surveys for planning purposes, arboriculture impact assessments and arboriculture method statements.
-Landscape consultancy - from landscape planning and design to aftercare.
Since joining the RSK Group, Southern Ecological Solutions has benefited from cross selling opportunities, both inward and outward, and has utilised the services of RSK's many dedicated support teams. The company's Board also now includes members of both the RSK Group and Southern Ecological Solutions, providing additional knowledge and expertise to an already strong team.
The company works on around 400 projects each year, of various lengths and sizes, with some lasting just a few weeks and generating c. £5k revenue, to others lasting up to 6 years and generating in excess of £10m.
RSK Group Limited, the ultimate parent of the Company, is a holding company but through subsidiary companies the principal trading activity is that of research and consulting in the areas of environmental science, engineering agriculture, planning, and sustainability - together with the provision of related technical services. The Group is focused on providing services to clients that assist them in meeting the Sustainable Development Goals (SDGs) set by the United Nations.
Results for the year
Turnover was £5.5m (2024: £6.5m) with an operating profit of £1.3m (2024: £2.3m), giving an operating profit margin of 24% (2024: 35%). This decrease in profit was mainly due specific impacts in the financial year relating to nationally significant infrastructure projects winding down, senior staff turnover, and inflationary impacts on staff and sub-contractor costs. Despite these difficult trading conditions in 2024-25, the directors are confident that the company will continue to grow and contribute positively to the wider group.
Southern Ecological Solutions Limited
Strategic Report for the Period from 1 April 2024 to 6 April 2025
Corporate responsibility
The whole RSK Group fully supports the historic Paris Agreement on climate change which has been signed and acceded to by all 197 parties to the United Nations Framework Convention on Climate Change, and recognised that this will play a significant role in limiting global temperature increases to well below 2 degrees C above pre-industrialised levels.
Businesses of all sorts are embracing the 17 SDGs recognised by the United Nations in 2015, which represent a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity. It is not just about Climate Action, but it is also about providing affordable and clean energy, protecting life on land an on water, ending poverty and famine, and ensuring water supply and sanitation are available to all people.
These fundamental drivers will have great impact on RSK over the next 5 years, both on how we operate ourselves, but also how we support our clients as they evolve in support of the SDGs. To ensure consistent focus on the SDGs we have mapped our Corporate Responsibility and Sustainability Route Map against them.
We have never before seen such huge opportunity before us, and we can assist our clients in solving problems by utilising our consulting and technical skills and services.
Employees
The directors recognise that our people are the key to success, and we strive to engage with all our employees, making sure everyone is involved in the development of our business and feels pride in it.
As directors we recognise our responsibilities and are committed to equal opportunities for all employees and applicants, opposing all forms of unlawful or unfair discrimination in relation to a protected characteristic. All employees and applicants, whether part time, full time or temporary, will be treated fairly and with respect.
The directors are committed to ensuring that every employee has a working environment that promotes dignity and respect, and where individual differences and contributions of employees are recognised and valued.
The Company is committed to equality, diversity and inclusion being core to our company culture. This is integral to the success of our business and supports our corporate responsibility and sustainability efforts.
As directors it is important to us that we look after the wellbeing of our employees and, along with companies across the RSK Group, have signed the Time to Change Employer pledge, demonstrating our commitment to change the way we all thing and act about mental health in the workplace.
Southern Ecological Solutions Limited
Strategic Report for the Period from 1 April 2024 to 6 April 2025
Risk and uncertainty
The directors are required to identify risks that might adversely affect the Company's business in the medium and long-term. The directors have considered the risks to the business and means to manage those risks. The primary risks, and means of risk management, are:
- Failure to maintain a sufficient employee resource at appropriate levels of seniority and experience. The directors recognise that having a sufficient resource to undertake projects is critical to the continued success of the Company. Skilled employees are in short supply with other industries within construction offering inflated rates making recruitment challenging. To that end, the directors are committed to all the components of Investors In People and seek to be an employer of choice. We aim to hire the most talented of people; we communicate widely and openly, share our Vision and Principles, we train our people and empower them. In this way we plan to look after our clients' needs in an exemplary fashion. The directors monitor people metrics, including retention statistics to identify any trends or issues. We support local schools and colleges in fostering interest in construction from an early age and we are now accredited with the National Centre for Diversity.
- Termination of projects or failure to win work in our core markets. We strive to delight our clients and keep abreast of their requirements and expectations through regular communication, project reviews, client satisfaction surveys and wider market assessments. We want to work to the highest technical and health and safety standards and to these ends, we operate in accordance with ISO 9001, ISO 14001 and ISO 45001 and, where applicable, comply with the various specific industry codes of practice and standards.
- Financial risk management. The company's operations expose it to a variety of financial risks and these risks need to be considered throughout the lifetime of a project. The directors operate an internal review process so that tenders are reviewed before submission to a client. Risk of late payment by clients and bad debts could result in the company having insufficient cash to pay suppliers in a timely fashion. The directors have considered this and have adequate working capital facilities, allowing for late payments by clients and pressure from creditors for more prompt settlement of accounts. A primary strategy employed by the directors to minimise financial risk is one of diversity of operations as set out above with a mix of services, clients, projects and geographical spread of operations.
- Global economy. Rising inflation and the risk of recession present risk to all businesses. To mitigate this risk, we remain as diverse as possible, strengthening our offer in sectors which we onsider most resilient. The Company is also very nimble, able to make decisions very quickly and pivot to different market sectors when required. We closely manage costs to remain competitive in the marketplace.
Southern Ecological Solutions Limited
Strategic Report for the Period from 1 April 2024 to 6 April 2025
Key Performance Indicators
The directors monitor several Key Performance Indicators (KPIs), and debate the company performance relative to those KPI at board meetings and divisional meetings. Examples of KPIs monitored include:
- Net fee income;
- Accidents and Near Misses;
- Positive Interventions to improve safety performance;
- Customer Feedback - both praise and complaints;
- Staff Turnover;
- Utilisation of Staff;
- Gender Pay Gap;
- Cash at Bank; and
- Debtor and Creditor days.
The directors are pleased to report that performance of the company in respect to all KPIs monitored is satisfactory.
Approved and authorised by the
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Southern Ecological Solutions Limited
Directors' Report for the Period from 1 April 2024 to 6 April 2025
The directors present their report and the financial statements for the period from 1 April 2024 to 6 April 2025.
Directors of the company
The directors who held office during the period were as follows:
The following directors were appointed after the period end:
Dividends
Dividends of £1,515,000 were paid in the year (2024: £5,000,000).
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved and authorised by the
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Southern Ecological Solutions Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
Southern Ecological Solutions Limited
Independent Auditor's Report to the Members of Southern Ecological Solutions Limited
Opinion
We have audited the financial statements of Southern Ecological Solutions Limited (the 'company') for the period from 1 April 2024 to 6 April 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, 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 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:
• | give a true and fair view of the state of the company's affairs as at 6 April 2025 and of its profit for the period then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | 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 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 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
Southern Ecological Solutions Limited
Independent Auditor's Report to the Members of Southern Ecological Solutions Limited
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and 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 our 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 and the Directors' Report.
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, 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 Statement of Directors' Responsibilities [set out on page 7], 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 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:
Southern Ecological Solutions Limited
Independent Auditor's Report to the Members of Southern Ecological Solutions Limited
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 directors and other management, and from our cumulative audit and commercial knowledge and experience of the company and the sector;
- 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, including the Companies Act 2006, Taxation Legislation, General Data Protection Rules (GDPR), Anti-Bribery Act, Employment Law and Health & Safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected, and alleged fraud; and
- 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; and
- 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; and
- reviewing correspondence with HMRC and analysing legal costs to ascertain if there have been instances of non-compliance with laws and regulations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Southern Ecological Solutions Limited
Independent Auditor's Report to the Members of Southern Ecological Solutions Limited
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.
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For and on behalf of
Chartered Accountants and Registered Auditors
Suite I Windrush Court
Abingdon Business Park
Oxfordshire
OX14 1SY
Southern Ecological Solutions Limited
Profit and Loss Account for the Period from 1 April 2024 to 6 April 2025
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Note |
2025 |
2024 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
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Operating profit |
1,304,863 |
2,258,333 |
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Income from shares in group undertakings |
- |
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Other interest receivable and similar income |
- |
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Interest payable and similar expenses |
( |
( |
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(10,189) |
32,210 |
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Profit before tax |
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Tax on profit |
( |
( |
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Profit for the financial period |
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The above results were derived from continuing operations.
The company has no recognised gains or losses for the period other than the results above.
Southern Ecological Solutions Limited
(Registration number: 06192687)
Balance Sheet as at 6 April 2025
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Note |
2025 |
2024 |
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Fixed assets |
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Tangible assets |
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Investments |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
10,000 |
10,000 |
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Capital redemption reserve |
100 |
100 |
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Retained earnings |
4,584,733 |
4,860,434 |
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Shareholders' funds |
4,594,833 |
4,870,534 |
Approved and authorised by the
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Southern Ecological Solutions Limited
Statement of Changes in Equity for the Period from 1 April 2024 to 6 April 2025
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Share capital |
Capital redemption reserve |
Retained earnings |
Total |
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At 1 April 2023 |
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Profit for the period |
- |
- |
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Dividends paid |
- |
- |
( |
( |
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At 31 March 2024 |
10,000 |
100 |
4,860,434 |
4,870,534 |
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Share capital |
Capital redemption reserve |
Retained earnings |
Total |
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At 1 April 2024 |
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Profit for the period |
- |
- |
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Dividends paid |
- |
- |
( |
( |
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At 6 April 2025 |
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Southern Ecological Solutions Limited
Notes to the Financial Statements for the Period from 1 April 2024 to 6 April 2025
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as
disclosed in the accounting policies certain items are shown at fair value.
The financial statements are presented in sterling, which is the functional currency of the
company.
As permitted by the FRS 102 framework, the company has taken advantage of the disclosure
exemptions available under that standard in relation to presentation of a cashflow statement.
These accounts are consolidated into the accounts of RSK Group Ltd.
Southern Ecological Solutions Limited
Notes to the Financial Statements for the Period from 1 April 2024 to 6 April 2025
Going concern
The Directors have acknowledged the latest guidance on going concern from the Financial Reporting Council and considered various relevant matters noted here.
The company participates in the Group’s centralised treasury arrangements and so shares banking arrangements with its subsidiaries. As at 6 April 2025 the funds comprised a £1bn committed acquisition facility and a £150m revolving credit facility (which was increased from the prior £50m during March 2025). These facilities were extended from 2028 to 2030 in September 2024. In September 2024 the Group received £520m preferred equity investment from a consortium of investors.
The facilities will finance growth, both organic and acquisitive and associated working capital requirements.
After a thorough review, the Group's consolidated business plan, forecasts and projections show that it is expected to operate within its facilities.
The Group has established contracts and master service agreements with several customers across a wide range of sectors and markets and has a significant pipeline of committed work, tenders in progress and opportunities. The Directors believe that the Group will continue to manage its business risks successfully despite uncertain economic conditions in some business sectors and countries.
After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue to operate for the foreseeable future, being a period of at least twelve months after the date on which the report and financial statements are signed. Accordingly, they have continued to adopt a going concern basis in the preparation of the annual report and financial statements.
Judgements
No significant judgements have had to be made by management in preparing these financial.
Key sources of estimation uncertainty
The company makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates and
assumptions that have the greatest level of uncertainty are addressed below:
(i) Amounts recoverable on contracts - £676,754 (2024: £494,733)
The company’s revenue policies (set out in revenue recognition policy below) are fundamental to
how the Group values the work it has carried out in each reporting period. Contracts are assessed
on a contract by contract basis, and estimations are made regarding amounts not invoiced based on
the stage of completion of the service.
(ii) Impairment of debtors - £448,963 (2024: £840,281)
The company makes an estimate of the recoverable value of trade and other debtors. When
assessing impairment of trade and other debtors, management considers factors including the
current credit rating of the debtor, the ageing profile of debtors and historical experience.
Southern Ecological Solutions Limited
Notes to the Financial Statements for the Period from 1 April 2024 to 6 April 2025
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of
services in the ordinary course of the Company's activities. Turnover is shown net of sales/value
added tax, returns, rebates and discounts and after eliminating sales within the company.
In respect of long-term contracts for on-going services, turnover represents the value of work done
in the period, including estimates of amounts not invoiced. Turnover in respect of long-term
contracts and contracts for on-going services is recognised by reference to the stage of completion.
Turnover from a contract to provide services is recognised in the period in which the services are
provided in accordance with the stage of completion of the contract when all of the following
conditions are satisfied:
- the amount of turnover can be measured reliably;
- it is probable that the company will receive the consideration due under the contract;
- the stage of completion of the contract at the end of the reporting period can be measured
reliably; and
- the costs incurred and the costs to complete the contract can be measured reliably.
Long-term contracts are assessed on a contract by contract basis and reflected in the profit and
loss account by recording turnover and related costs as contract activity progresses. Turnover
represents the value of work done in the period, including estimates of amounts not invoiced, and
is recognised by reference to the stage of completion. Operating profit includes attributable profit
on long-term completed contracts and amounts recoverable on uncompleted contracts, the latter
being included within debtors due within one year.
Southern Ecological Solutions Limited
Notes to the Financial Statements for the Period from 1 April 2024 to 6 April 2025
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit
and loss account, except that a change attributable to an item of income and expense recognised
as other comprehensive income or to an item recognised directly in equity is also recognised in
other comprehensive income or directly in equity respectively.
Current tax
The current income tax charge is calculated on the basis of tax rates and laws that have been
enacted or substantively enacted by the balance sheet date in the countries where the Company
operates and generate income.
Deferred tax
Deferred tax balances are recognised in respect of all timing differences that have originated but
not reversed by the balance sheet date, except that:
• The recognition of deferred tax assets is limited to the extent that it is probable that they will be
recovered against the reversal of deferred tax liabilities or other future taxable profits; and
• Any deferred tax balances are reversed if and when all conditions for retaining associated tax
balances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of
business combinations, when deferred tax is recognised on the differences between the fair values
of assets acquired and the future tax deductions available for them and the different between the
fair value of liabilities acquired and the amount that will be assessed for tax. Deferred tax is
determined using tax rates and laws that have been enacted or substantively enacted by the
balance sheet date.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they
will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Plant and machinery |
20% straight line |
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Fixtures and fittings |
20% straight line |
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Office equipment |
33% straight line |
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Motor vehicles |
25% straight line |
Southern Ecological Solutions Limited
Notes to the Financial Statements for the Period from 1 April 2024 to 6 April 2025
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Debtors
Short-term debtors are measured at transaction price, less any impairment.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Creditors
Creditors are recognised initially at fair value and subsequently measured at amortised cost using
the effective interest rate 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.
Southern Ecological Solutions Limited
Notes to the Financial Statements for the Period from 1 April 2024 to 6 April 2025
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 the 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 to 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.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expenses when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Southern Ecological Solutions Limited
Notes to the Financial Statements for the Period from 1 April 2024 to 6 April 2025
Financial instruments
Financial assets and liabilities are recognised in the company’s balance sheet when the company
becomes party to the contractual provisions of the instrument.
Financial assets
Basic financial assets, including trade and other receivables, loans receivable from other Group
companies, investments in subsidiary companies and cash and cash equivalents, are initially
recognised at transaction price, unless the arrangement constitutes a financing transaction, where
the transaction is measured at the present value of future receipts discounted at the market rate of
interest. Such assets are subsequently carried at amortised cost using the effective interest
method, less any provision for impairment.
Impairment of financial assets
At each reporting date the company assesses whether there is objective evidence that a financial
asset is impaired. If such evidence exists, the company recognises an impairment loss which is
measured as the difference between the carrying amount and the present value of the future
cashflows, discounted at the original effective interest rate. Impairment losses are recognised in
profit or loss.
Impairment losses are reversed if the reversal can be objectively related to an event occurring
after the impairment was recognised. The reversal of the impairment will be recognised in profit or
loss.
Financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, hire purchase contracts
and loans payable to other Group companies, are initially recognised at transaction price, unless
the arrangement constitutes a financing transaction, where the debt instrument is measured at the
present value of future payments discounted at the market rate of interest.
Debt instruments are subsequently carried at amortised cost using the effective interest method.
Derecognition of financial instruments
A financial asset is derecognised when the contractual rights to the cash flows from the financial
asset expire, or the company transfers the financial asset and substantially all the risks and rewards
of ownership have been transferred.
A financial liability is derecognised when the obligation specified in the contract is discharged,
cancelled, or expires.
|
Turnover |
The analysis of the company's turnover for the period from continuing operations is as follows:
|
2025 |
2024 |
|
|
Rendering of services |
|
|
Southern Ecological Solutions Limited
Notes to the Financial Statements for the Period from 1 April 2024 to 6 April 2025
|
Other operating income |
The analysis of the company's other operating income for the period is as follows:
|
2025 |
2024 |
|
|
R&D tax credits |
|
|
|
Other gains and losses |
The analysis of the company's other gains and losses for the period is as follows:
|
2025 |
2024 |
|
|
Loss on disposal of tangible assets |
- |
( |
|
Operating profit |
Arrived at after charging/(crediting)
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Loss on disposal of property, plant and equipment |
- |
|
|
Other interest receivable and similar income |
|
2025 |
2024 |
|
|
Interest income on bank deposits |
- |
|
|
Interest payable and similar expenses |
|
2025 |
2024 |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
|
- |
|
|
|
Southern Ecological Solutions Limited
Notes to the Financial Statements for the Period from 1 April 2024 to 6 April 2025
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Other short-term employee benefits |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the period, analysed by category was as follows:
|
2025 |
2024 |
|
|
Administration and support |
|
|
|
Operational |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the period was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Auditors' remuneration |
|
2025 |
2024 |
|
|
Audit of the financial statements |
|
|
Southern Ecological Solutions Limited
Notes to the Financial Statements for the Period from 1 April 2024 to 6 April 2025
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
- |
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the period is lower than the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2025 |
2024 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
(Decrease)/increase in UK and foreign current tax from adjustment for prior periods |
( |
|
|
Effect of revenues exempt from taxation |
- |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
( |
|
Tax increase from effect of adjustment in research and development tax credit |
|
- |
|
Total tax charge |
|
|
Southern Ecological Solutions Limited
Notes to the Financial Statements for the Period from 1 April 2024 to 6 April 2025
|
Tangible assets |
|
Fixtures and fittings |
Plant and machinery |
Office equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
|||||
|
At 1 April 2024 |
|
|
|
|
|
|
Additions |
- |
|
|
|
|
|
At 6 April 2025 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 April 2024 |
|
|
|
|
|
|
Charge for the period |
|
|
|
|
|
|
At 6 April 2025 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 6 April 2025 |
|
|
|
|
|
|
At 31 March 2024 |
|
|
|
|
|
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2025 |
2024 |
|
|
Motor vehicles |
206,617 |
134,661 |
|
Plant and machinery |
62,545 |
- |
|
269,162 |
134,661 |
|
Investments |
|
2025 |
2024 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 April 2024 |
|
|
Provision |
|
|
Carrying amount |
|
|
At 6 April 2025 |
|
|
At 31 March 2024 |
|
Southern Ecological Solutions Limited
Notes to the Financial Statements for the Period from 1 April 2024 to 6 April 2025
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2025 |
2024 |
|||
|
Subsidiary undertakings |
||||
|
|
Spring Lodge
|
|
|
|
|
Stocks |
|
2025 |
2024 |
|
|
Other inventories |
|
|
|
Debtors |
|
2025 |
2024 |
|
|
Trade debtors |
|
|
|
Amounts owed by related parties |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Accrued income |
|
|
|
Corporation tax receivable |
|
- |
|
|
|
|
Cash and cash equivalents |
|
2025 |
2024 |
|
|
Cash at bank |
|
|
Southern Ecological Solutions Limited
Notes to the Financial Statements for the Period from 1 April 2024 to 6 April 2025
|
Creditors |
|
Note |
2025 |
2024 |
|
|
Due within one year |
|||
|
Trade creditors |
|
|
|
|
Loans and borrowings |
|
|
|
|
Amounts due to related parties |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other payables |
|
|
|
|
Accruals |
|
|
|
|
Corporation tax creditor |
- |
19,068 |
|
|
Group relief payable |
268,069 |
529,524 |
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 April 2024 |
|
|
|
Increase in existing provisions |
|
|
|
At 6 April 2025 |
|
|
|
|
||
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
Ordinary share of £1 each |
10,000 |
10,000 |
10,000 |
10,000 |
Southern Ecological Solutions Limited
Notes to the Financial Statements for the Period from 1 April 2024 to 6 April 2025
|
Loans and borrowings |
Non-current loans and borrowings
|
2025 |
2024 |
|
|
Hire purchase contracts |
|
|
Current loans and borrowings
|
2025 |
2024 |
|
|
Hire purchase contracts |
|
|
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the period was £
|
Dividends |
Interim dividends paid
|
2025 |
2024 |
|||
|
Interim dividend of £151.50 (2024 - £500.00) per each Ordinary share |
1,515,000 |
5,000,000 |
||
|
Contingent liabilities |
The company is party to cross guarantee arrangements relating to a borrowing facility provided by Ares Management to RSK Group Limited. The amount borrowed under this agreement at 6 April 2025 is £831,936,000 (2024: £1,060,136,000).
The company is also a guarantor of any trading and other obligations of any RSK Group member that may be a Junior Creditor in the related Subordination Deed.
Southern Ecological Solutions Limited
Notes to the Financial Statements for the Period from 1 April 2024 to 6 April 2025
|
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
These financial statements are available upon request from Companies House, Crown Way, Cardiff, CF14 3UZ.