The directors present the strategic report for the year ended 31 December 2025.
The Company delivers a comprehensive range of services encompassing asbestos abatement, demolition, remediation and passive fire protection.
The business is a leading provider of asbestos abatement services, comprising removal, encapsulation and where required environmentally conscious disposal of waste. The business is focused on providing a high quality, professional service offered on a nationwide basis from its network of UK offices.
Rhodar is recognised as a technical innovator and maintains industry‑leading standards in the highly regulated environment in which it operates. The business model is centred around establishing long-term relationships with blue‑chip clients across both private and public sectors. A significant proportion of revenue is generated through long-term agreements and frameworks, providing a stable foundation of recurring income.
A key strategic priority continues to be the expansion of the integrated enabling works offering across the Company’s four core disciplines: asbestos, demolition, remediation and passive fire protection. The successful rebranding of Rhodar has further strengthened its position as a comprehensive enabling works provider, enhancing cross‑divisional collaboration and broadening opportunities with major clients.
Amid a steadily evolving economic environment, and building on our strategic objectives, the Group delivered another strong performance in 2025. Turnover reached £69 million, exceeding prior‑year levels and outperforming profit expectations. This reflects the growth in asbestos abatement services as well as the excellent performance of the Demolition and Fire Protection divisions that have continued to deliver works with operational efficiency.
Reviewing the past year for the Company from the perspective of the four disciplines, highlights have been:
Asbestos:
The division delivered an exceptional year, achieving strong growth in both turnover and profit, driven by standout performance across the education, local authority, infrastructure, rail, defence, and nuclear sectors.
The award of Principal Contractor Status within the nuclear sector in late 2024 has been transformational, enabling the business to manage significantly larger schemes, and has established a robust platform for continued expansion into 2026 and beyond. In addition, activity within the defence sector exceeded expectations, delivering higher-than-anticipated revenues through large-scale projects across the air and maritime programmes.
We remain a Priority One Framework Contractor within the rail sector, working with major infrastructure clients and Tier One Contractors, with the framework agreement successfully extended through to March 2027. Our strong positioning in this sector has supported the successful delivery of major infrastructure projects, alongside our ongoing maintenance, property, and trackside programmes.
Across the defence sector, the Division has continued to deliver its core services, strengthening key relationships with strategic partners and securing extended framework agreements with major contractors. These relationships underpin a strong and visible pipeline of work extending into 2026.
Building on the strategic changes implemented in 2024, we continued to restructure our project delivery infrastructure into a national operating model. This has streamlined processes, clarified reporting lines, optimised resource allocation, and driven improved efficiency and consistency across project delivery.
Demolition:
The Demolition division delivered a strong performance in 2025, exceeding both turnover and profit targets and entering 2026 with a robust forward order book. Results were driven by a disciplined and selective bidding strategy, with a clear focus on higher‑quality opportunities secured through preferred contractor lists and framework arrangements.
During the year, the division secured and progressed several key projects across the residential and urban regeneration sectors, with major schemes commencing during 2025. In addition, further projects within the retail redevelopment and cultural infrastructure sectors were secured and are schedules to commence in 2026.
The division also continued to generate a steady pipeline of opportunities through strategic framework relationships, supporting consistent workflow and long-term visibility.
Remediation:
The division experienced a mixed year, beginning with sluggish new sales and lower‑than‑budgeted turnover due to challenging market conditions and delays in higher‑value enabling works, before seeing a strong uplift in workload from August onward.
Despite the slow start, key strategic initiative progressed, including investment in new plant to improve efficiency, establishment of a professional development programme for technical staff, and targeted recruitment to broaden services and increase capacity.
Project delivery included successful completion of works across the healthcare sector, alongside multiple remediation schemes addressing contaminated land and groundwater within urban regeneration environments. The division also delivered it's first DNAPL recovery project in the North East, demonstrating an advancing level of technical capability. In addition, major contract awards were secured across regional industrial and energy infrastructure sectors, including projects aligned to Net Zero initiatives.
Looking ahead, the division is focused on strengthening delivery procedures, enhancing the sales pipeline through improved pre‑contract and estimating resources, expanding in‑house civil engineering capability, and appointing a Project Director to reinforce governance and project oversight.
Passive Fire Protection:
Over the past year, the division has focused on establishing a consistent operational approach while stabilising and strengthening the team through key strategic appointments. This has enhanced our internal expertise, supported steady growth, and reinforced strong relationships with preferred clients, resulting in valued repeat business across the education, healthcare, and mixed-use development sectors. The strategic direction prioritises controlled, well‑managed expansion, ensuring high standards, operational efficiency, and consistent client satisfaction across all projects. With planned growth in 2026, aligned with the updated Building Safety Act and supported by revised internal procedures to ensure full legislative compliance, the division is well positioned to further develop its role as a trusted Principal Contractor for large‑scale fire remediation projects.
Principal risks and uncertainties
The Company’s, and the wider Group’s, decision‑making framework remains firmly centred on maintaining a comprehensive understanding of the risks and exposures faced across the organisation. Identifying risks to the achievement of both business and strategic objectives - supported by detailed analysis to inform and prioritise mitigating actions - continues to be fundamental to ensuring that risk is managed in line with the Group’s defined risk appetite.
Operating within a highly regulated market, the potential loss of the Company’s HSE asbestos licence represents a key business risk. The Company currently holds a maximum three‑year licence, which is due to expire in September 2026. Ensuring that all operations are conducted safely, and that a Zero Harm environment is maintained for employees and stakeholders, remains paramount to sustaining compliance and protecting this critical licence. Based on the Company’s strong compliance record, established controls and ongoing engagement with the regulator, there is no reason to expect anything other than the renewal of the licence for a further three‑year period.
In the context of a competitive and evolving economic backdrop for the construction sector, securing work at acceptable margins continues to be a core business risk. The Company mitigates this through robust delegated authorities governing tendering activity and customer acceptance. Established processes and procedures ensure that all work is delivered in accordance with the required contractual conditions, helping to manage potential contractual and commercial exposures effectively.
Key performance indicators
The directors consider that our key performance indicators are those that communicate a summary of the performance and the strength of the Company as a whole; those being turnover, gross profit margin, operating profit and retained reserves.
| Year ended December 2025 £’000 | Year ended December 2024 £’000 |
Turnover | 69,118 | 67,645 |
Operating profit | 5,203 | 4,262 |
Profit and loss account reserve | 14,962 | 11,676 |
Gross profit margin | 31% | 28% |
Future developments
Following the rebrand and strategic realignment of Rhodar towards the delivery of integrated enabling works packages, we are now actively operating within this dynamic and growing market. Alongside the continued expansion of each of our four core service lines as standalone offerings, we are proactively identifying opportunities to combine multiple services into fully integrated solutions. This approach enables us to deliver enhanced value for our clients through improved cost efficiency, reduced programme risk, and more streamlined project delivery.
Our continued focus on securing targeted framework appointments is enhancing confidence in our medium- to long-term revenue outlook. This provides greater visibility for forward planning, supports improved operational forecasting, and underpins the sustained growth of the business.
The Group’s focus for the forthcoming financial period will be on the continued delivery of integrated enabling works solutions while maintaining disciplined cost control and risk management. Market conditions are expected to remain competitive, however demand for early-stage construction and enabling works—particularly within urban regeneration, infrastructure-led development, and funded residential schemes—is anticipated to remain resilient.
Our diversified sector exposure enables the Company to remain agile, allowing us to pivot and capitalise on the most compelling growth opportunities, especially during periods of uncertainty in other parts of the market. Ongoing investment in people, systems, and operational capability will support sustainable growth, margin protection, and the efficient execution of future projects. The Directors remain confident that the Company is well positioned to respond to changing market conditions and to capitalise on opportunities aligned with its strategic objectives.
Section 172 Companies Act 2006
This report sets out how the Directors comply with the requirements of Section 172 Companies Act 2006 and how these requirements have impacted the Board’s decision making throughout 2025.
The Board’s primary responsibility is to promote the long-term success of the Company by creating and delivering sustainable value as well as contributing to wider society. The successful delivery of the long-term plans relies on key inputs and positive relationships with a wide range of stakeholders. The Board seeks to achieve this by setting out its strategy, monitoring performance against the Company’s strategic objectives and reviewing the implementation of the strategy. The Board also monitors the effectiveness of the Company’s systems of internal control, governance and risk management.
Engaging with stakeholders to deliver long term success is a key area of focus for the Board and all decisions take into account their impact on stakeholders. Obviously, stakeholders are impacted by, or benefit from, decisions made by the Board in different ways. However, it is the Board’s priority to ensure that the Directors have acted both individually and collectively in the way that they consider, in good faith, would be most likely to promote the success of the Company for the benefit of the members as a whole with regard to all its stakeholders and to the matters set out in paragraphs a-f of Section 172 of the Companies Act 2006.
Rhodar remains committed to fostering an engaging, inclusive and high‑performing working environment in which employees can build rewarding careers and contribute meaningfully to the Group’s long‑term success. Our aim is to provide clear career pathways, competitive benefits, and a culture that empowers colleagues to take ownership of our shared vision.
Employee engagement continues to play a vital role in achieving the Company’s strategy, reflected in our ongoing accreditation with Investors in People, which recognises our commitment to people development and organisational excellence.
Employment of disabled persons
At Rhodar, as part of the wider Group, we are fully committed to equality, fairness and inclusion in all aspects of employment. Recruitment, promotion and training decisions are made solely on the basis of capability, qualifications and experience. Our policies - embedded consistently across the Company -ensure that all employees have equal opportunities to develop and progress.
We actively support applicants and employees with disabilities, making reasonable adjustments to working practices, environments and equipment where required. Adjustments are also made for any employee who becomes disabled during the course of their employment to ensure continued inclusion and support.
Employee involvement
Employee involvement is integral to our culture, and we continuously seek staff views through ongoing engagement activities. Participation is encouraged at every level of the organisation, including through recognition initiatives such as our Values Awards.
Our performance management framework, In Pursuit of Excellence (IPOE), supports employees in their development journey. IPOE encompasses performance appraisal, management and leadership training, and opportunities for wider personal development such as charitable participation and community initiatives.
Staff Wellbeing
Staff wellbeing remains a cornerstone of our organisational success and a priority for maintaining a positive, productive workplace. Rhodar is committed to supporting the physical, mental and emotional health of employees through a broad range of wellbeing initiatives. These include flexible working arrangements, access to wellbeing and mental‑health support programmes, and initiatives that promote a healthy work–life balance.
By investing in wellbeing, we aim to reduce stress, enhance job satisfaction and strengthen overall engagement across the workforce.
Engagement with suppliers, customers and others
The Directors regularly review how the Company maintains constructive and collaborative relationships with suppliers, customers, community stakeholders and other external partners, recognising the importance of these relationships to the Company’s long‑term success.
Suppliers
The Directors acknowledge the critical role played by the Company’s supply chain in delivering long‑term plans. Maintaining strong relationships with suppliers begins with ensuring payments are made on time and in accordance with agreed terms.
Rhodar adopts a flexible approach to payment practices, aligning terms with the needs and capabilities of individual suppliers. Where appropriate, the Company also considers early payment to suppliers experiencing financial pressure, helping to sustain continuity and resilience within the supply chain.
Customers
Our diverse customer base spans multiple sectors, and we place great emphasis on strong, collaborative relationships built on clear communication, transparency and mutual understanding. Engaging with customers closely enables us to respond to evolving needs and continuously enhance our service offering.
During the year, we continued to deliver our Built Environment Knowledge Seminar Roadshows, showcasing our four core services and demonstrating the advantages of integrated enabling works packages. Held at venues across the UK, these events positioned Rhodar as a leading subject‑matter expert and trusted solutions provider. They reached hundreds of existing and prospective clients, offering valuable opportunities for face‑to‑face interaction, technical knowledge sharing and relationship building.
Community and Social Value
Rhodar remains committed to delivering meaningful social value and supporting the communities in which we operate. Throughout 2025, we undertook a broad programme of charitable fundraising, community engagement and environmental initiatives, reflecting our ongoing commitment to social responsibility and our culture of giving back.
We raised over £40,000 for Martin House Children’s Hospice through the Yorkshire Three Peaks Challenge, supported by 61 colleagues and partners. Our Charity‑6 programme also returned, raising funds for six employee‑nominated charities through a series of colleague‑led events, including a record £10,135 for Zoe’s Place Baby Hospice.
In Scotland, we supported several education, environmental and community programmes, including Water Safety Awareness training and biodiversity projects delivered through WGM Engineering’s APM Challenge. As part of our social value commitments on the University of Edinburgh’s Darwin Tower project, we contributed over £40,000 to local organisations over the year.
The Group is proud of the collective effort shown across all regions and remains committed to delivering meaningful social value in the year ahead.
Sustainability
As a Group operating under ISO 14001, we continue to maintain robust environmental management programmes across the business. Building on this foundation, 2025 saw significant progress in strengthening our sustainability capabilities. Working alongside our Sustainability Consultancy partner - appointed in 2024 - we advanced the development of our long‑term carbon emissions reduction strategy and enhanced our internal carbon management processes.
This partnership has supported improvements in data collection, reporting accuracy and the upskilling of colleagues across key operational areas. To further embed sustainability and social value across the organisation, we also appointed our first dedicated Sustainability Coordinator in 2025. This role provides focused support for meeting increasing legislative requirements, strengthening project‑specific sustainability inputs during bidding and delivery, and helping drive the Group’s long‑term environmental and social commitments.
Further information is included within the Directors Report, where we have disclosed our Energy and Carbon Report for the year ended 31 December 2025.
Going Concern
The Company is a subsidiary of the Lexia Solutions Group Limited group (the “Group”) and has access to the group’s current banking facilities.
The Company, and the wider Group, continue to recognise the economic and trading uncertainties arising from ongoing geopolitical tensions. While the direct impact of the conflict in Ukraine has reduced compared with prior years, it continues to exert some influence on global commodity markets and supply chains. Although the Group does not trade outside the UK, disruption to the supply of key materials and ongoing price volatility - especially in metals, energy‑intensive products, and other construction inputs - may continue to impact the supply chain. The wider construction industry remains sensitive to geopolitical shocks, with global disruptions still presenting risks of increased costs and delays.
After considering the factors and sensitivities outlined above for a range of scenarios, the Directors consider that the Group has adequate resources to continue operating for the foreseeable future. Uncertainties and risk inherent in the construction industry may impact future performance, and management remain vigilant in monitoring and addressing these challenges proactively.
The Directors regularly review the working capital requirements of the Company, and wider Group, while reviewing sensitivities to future performance. The Directors have reviewed budgets and future forecasts and have satisfied themselves that the Company has sufficient financial and liquid resources to continue to operate for a period of at least 18 months from the date these financial statements are signed.
Overall, the Directors remain confident in their strategy and the strength of the business.
Accordingly, the Directors continue to adopt the going concern basis in preparing the Company and the wider Group accounts. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2025.
The results for the year are set out on page 16.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Interest rate risk
The Company's interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Company to cash flow interest rate risk. Borrowings issued at fixed rates expose the Company to fair value interest rate risk. During 2025, the Company's borrowings were denominated solely in Sterling.
The Company manages its cash flow interest rate risk by using fixed interest rate borrowings where possible.
Credit risk is managed on a Company basis. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks, as well as exposure to outstanding receivables. The Company's policy is to manage credit exposure to trading counterparties within defined trading limits. All of the Company's significant counterparties are assigned internal credit limits.
If any of the Company's customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, the Company assesses the credit quality of the customer taking into account its financial position, past experience and other factors.
The Company's objectives when managing capital are to safeguard its ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders. The objectives are also to maintain an optimal capital structure to reduce the cost of capital in the Company and to ensure financial covenants contained in the bank facility agreement are met throughout the year. In order to maintain or adjust the capital structure, the Company may vary the amount of dividends paid to shareholders.
Business relationships and employee engagement
The Company is committed to ensuring it maintains strong relationships with all stakeholders (including employees) and actively engages with them on an ongoing basis. Further details are provided in the Strategic Report.
The Company is committed to ensuring it maintains strong relationships with all stakeholders (including employees) and actively engages with them on an ongoing basis. Further details are provided in the Strategic Report.
Sumer Auditco Limited were appointed as auditor to the Company following BHP LLP becoming part of the Sumer Group on 31 December 2025, which required a change in audit firm to comply with applicable regulatory requirements.
In accordance with section 487(2) of the Companies Act 2006, Sumer Auditco Limited are deemed to be reappointed annually.
In accordance with The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, Lexia Solutions Group (and its subsidiaries) have prepared an Energy & Carbon Report for the year ended 31 December 2025. With ever-increasing focus from customers and consumers on sustainability, this measurement and reporting of environmental performance will drive direct benefits for the business such as lower energy and resource costs as well as improved understanding of exposure to the risks of climate change.
Lexia Solutions Group’s main energy efficiency project completed during the 2025 reporting period was the opening of a new, highly efficient regional hub in Warrington, Lexia House. In particular, the building incorporates a 43.2 kWp grid-connected solar PV system and electric vehicles. Solar generation is expected to reduce annual grid electricity consumption by 28,448 kWh through direct use and EV charging, avoiding an estimated 7.769 tCO2e per year.
Previous actions also taken in recent years and now in place include:
Introducing a temperature policy in offices to ensure AC is used efficiently.
Disconnecting an old heating system in the HQ warehouse that was no longer required.
Began implementing driver training to encourage more efficient driving behaviours.
Improving the utilisation of telematics software to optimise routing and fuel efficiency.
The business continues to invest in new, more efficient machinery, as well as continuing efforts to transition the company vehicle fleet to hybrid and electric vehicles.
Compared to the 2024 reporting period, there has been a 17.8% increase in Scope 1 and 2 emissions year-on-year, due to an increase in fleet and plant fuel usage. However, 2024 emissions were affected by a specific mix of projects taking place during the year, which required less fuel combustion across operations. Despite rising, 2025 emissions overall remain lower than the 2023 baseline year.
Annual Carbon Emissions (tCO2e) | Current Reporting Year | Comparison Year |
01/01/2025 - 31/12/2025 | 01/01/2024 - 31/12/2024 | |
Scope 1 | 3,985 | 3,378 |
Stationary Combustion | 33 | 34 |
Mobile Combustion | 3,952 | 3,344 |
Process Emissions | - | - |
Fugitive Emissions | - | - |
Scope 2 (Location Based) | 74 | 67 |
Scope 2 (Market Based) | 44 | 43 |
Purchased Electricity | 75 | 67 |
Purchased Electricity | 44 | 43 |
Purchased Steam, Heat, Cooling | - | - |
Scope 3 (Grey Fleet) | 143 | 35 |
Employee-owned vehicles used for business travel | 143 | 35 |
Total (Location Based) | 4,203 | 3,480 |
Total (Market Based) | 4,172 | 3,455 |
Direct Biogenic Emissions | 283 | 298 |
Mandatory Greenhouse Gas Report intensity ratios are calculated by dividing emissions by an organisation-specific metric.
In the case of Lexia Solutions Group, the metrics chosen to normalise emissions: Turnover (GBP), FTE (FTE).
The intensity ratios as well as the business metrics are detailed below. The intensity ratio is calculated based on total emissions (location based).
Carbon Emissions per Business Metric | Current Reporting Year | Comparison Year |
01/01/2025 - 31/12/2025 | 01/01/2024 - 31/12/2024 | |
Emission per Turnover | 58.69 | 51.45 |
Emission per FTE | 8.02 | 6.96 |
Business Metric | Current Reporting Year | Comparison Year |
01/01/2025 - 31/12/2025 | 01/01/2024 - 31/12/2024 | |
Turnover (MGBP) | 71.60 | 67.64 |
FTE (FTE) | 524 | 500 |
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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.
We have audited the financial statements of Rhodar Industrial Services Limited (the 'Company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
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 commercial knowledge and experience of the trade;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company;
we assessed the extent of compliance with the laws and regulations considered above through making enquiries of management; 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 risks of fraud through management bias and override controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; 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;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
discussions with senior management regarding relevant regulations and reviewing the Company’s legal and professional fees.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence.
As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Rhodar Industrial Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit C Astra Park, Parkside Lane, Leeds, West Yorkshire, United Kingdom, LS11 5SZ.
The financial statements are prepared in sterling, which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest £000.
This Company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The Company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel and group companies.
The financial statements of the Company are consolidated in the financial statements of Lexia Solutions Group Limited. These consolidated financial statements are available from its registered office, Unit C, Astra Park, Parkside Lane, Leeds, West Yorkshire, England, LS11 5SZ.
The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the Company’s contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the Company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the Company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
In the application of the Company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Whilst there are controls in place, debtor recoverability is inherently susceptible to the financial stability of the respective customers. Management must therefore make estimates for provision levels to be made.
The judgements, estimates and associated assumptions necessary to calculate the above provisions are based on historical experience, current industry knowledge and other reasonable factors.
The Company conducts a significant portion of its business under contracts with customers. The Company accounts for revenue on projects as performance on contracts progresses. This method places considerable importance on accurate estimates of the extent of progress towards completion and may involve estimates on the scope of deliveries and services required for fulfilling the contractually defined obligations. These significant estimates include total contract costs, total contract revenues, contract risks and other judgements. Such changes in estimates may lead to an increase or decrease of revenues.
All of the turnover arose solely within the United Kingdom.
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
During the year retirement benefits were accruing to 8 Directors (2024: 7) in respect of defined contribution pension schemes.
The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Factors that may affect future tax charges
The Company has tax losses of £10.0m as at 31 December 2025 (2024: £14.5m). A deferred tax asset of £1,857k (2024: £1,356k) in respect of £7,428k (2024: £5,424k) of those losses has been recognised based on forecast taxable profits. There is uncertainty in use of other losses hence no further asset has been recognised other than a deferred tax asset of £631,000 (2024: £531,000) has been recognised to offset the deferred tax liability of £631,000 (2024: £531,000) in respect of fixed asset and other timing differences.
Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:
All assets previously held under hire purchase contracts have now been disposed of.
During the year assets were transferred in at net book value from other group companies. This has been included within cost and accumulated depreciation. These assets will continue to be depreciated in line with their useful lives.
There is no material difference between the value of stock above and the replacement cost.
All amounts owed by group undertakings are interest free and are repayable on demand.
All amounts owed to group undertakings are interest free, carry no security and are repayable on demand.
The obligations under finance lease agreements are secured against the asset to which they relate.
When in a creditor position the invoice discounting facility accrues interest at a rate of 2% above Base Rate.
The obligations under finance lease agreements are secured against the asset to which they relate.
The following are the major deferred tax liabilities and assets recognised by the Company and movements thereon:
Whilst there are controls in place around the determination of the Deferred Tax Asset, the balance recognised by the Company is subject to a high degree of estimation and uncertainty given the nature of how it is determined.
The judgement and estimation is based on the assumptions made on the forecasted future profits of the business. The Company will prepare future budgets and forecasts over a 2-5 year period. The estimated profitability is used to then determine the recoverability on the deferred tax asset.
The Company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.
The rights of the shares are as follows:
a. Each share is entitled to receive notice of, attend at and vote at general meetings of the Company.
b. Each share is entitled to participate in the assets available for distribution to the Company's shareholders on a winding up of the Company.
c. Each share is entitled to receive dividends.
d. The shares are non-redeemable.
The Company is party to a cross guarantee in relation to the Group's bank borrowings, which at 31 December 2025 amounted to a debtor balance of £1,645,000 (2024: £3,154,000).
At the reporting end date the Company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The Company has taken advantage of the available exemption under Section 33.1A of FRS 102 not to disclose transactions with wholly owned members of the Group.
During the year, the Company entered into transactions with OMD Properties Limited, a wholly owned company of the ultimate controlling party, J M Davy, for a total value of £124,702 (2024: £nil). The balance outstanding at the year-end in relation to these transactions was £6,784 (2024: £Nil).