Company Registration No. 01661817 (England and Wales)
R.S. AQUA LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 AUGUST 2021
PAGES FOR FILING WITH REGISTRAR
The Granary
Hones Yard
1 Waverley Lane
Farnham
Surrey
GU9 8BB
R.S. AQUA LIMITED
CONTENTS
Page
Company information
1
Director's report
2 - 3
Balance sheet
4 - 5
Notes to the financial statements
6 - 12
R.S. AQUA LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2021
- 2 -
The director presents his annual report and financial statements for the year ended 31 August 2021.
Principal activities
The principal activity of the company
during the year was the sale of oceanic equipment.
Directors Report for RS Aqua Group of Companies
The first full year of living with the pandemic has brought many highs and few lows for RS Aqua. We are very pleased with the execution of our strategy and continued growth of the team. Our key objectives for the year were achieved, including:
-
Financial performance exceeded targets
-
New technology systems were brought to market
– new robotic platforms, cameras and other sensors.
-
R
ental service business was launched
– focused on high-value systems for our aquaculture clients but now rolled out through other client groups.
-
We significantly developed our brand and marketing strategy
– including an
o
ptimised and segmented web presence and visual identify, with much positive market and customer feedback.
Our team has successfully navigated the nuances of dispersed working and the complexities of onboarding new people and new technologies, all whilst increasing client and market engagement. Further highlights of the year included the launch of several major technology Innovation projects (grant funded and inward investment) and the opening of RS Aqua’s remote sales office in Aberdeenshire, Scotland.
Three new high-performing people joined the business during the year (net headcount grew from 12 to 14) further diversifying and developing our collective skills and capabilities. Building on the trend from last year, our new teammates have made an immediate and positive impact on the business.
Financial Performance
Revenue and margin performance exceeded internal targets once again. Significant inward investment in people, technology and R&D activities squeezed net margin below last year, however net asset position remains very strong and we greatly exceed our financial resilience KPIs.
Future Objectives
Our objectives over the year ahead align with our longer-term ambitions, and include:
-
Establish new international distribution channels
for our products.
-
Wider rollout of our rental and service contracts
.
-
Increased investment in our R&D project pipeline
.
-
Move all digital assets and information to secure web platforms
.
-
Host our own impactful end-user events
to better share our expertise.
R.S. AQUA LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
- 3 -
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr M. M. Stemp
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr M. M. Stemp
Director
23 May 2022
R.S. AQUA LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2021
31 August 2021
- 4 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
3
106,300
83,111
Current assets
Stocks
77,562
25,532
Debtors
4
826,745
433,646
Cash at bank and in hand
620,223
947,628
1,524,530
1,406,806
Creditors: amounts falling due within one year
5
(960,119)
(790,582)
Net current assets
564,411
616,224
Total assets less current liabilities
670,711
699,335
Creditors: amounts falling due after more than one year
6
(70,101)
(59,479)
Provisions for liabilities
(14,541)
(8,302)
Net assets
586,069
631,554
Capital and reserves
Called up share capital
1,000
1,000
Capital redemption reserve
1,000
1,000
Profit and loss reserves
584,069
629,554
Total equity
586,069
631,554
R.S. AQUA LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 AUGUST 2021
31 August 2021
- 5 -
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 August 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 23 May 2022
Mr M. M. Stemp
Director
Company Registration No. 01661817
The notes on pages 6 to 12 form part of these financial statements
R.S. AQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
- 6 -
1
Accounting policies
Company information
R.S. Aqua Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
The Granary, Hones Yard, 1 Waverley Lane, Farnham, Surrey, GU9 8BB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
R.S. AQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
1
Accounting policies
(Continued)
- 7 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
5 years straight line
Plant & machinery
33% straight line
Fixtures, fittings & equipment
15% reducing balance
Computer equipment
5 years straight line
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
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
1.7
Cash at bank and in hand
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
R.S. AQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
1
Accounting policies
(Continued)
- 8 -
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, 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
paymen
ts 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. A
m
ounts 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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
R.S. AQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
1
Accounting policies
(Continued)
- 9 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
R.S. AQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
1
Accounting policies
(Continued)
- 10 -
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
14
12
3
Tangible fixed assets
Leasehold improvements
Plant & machinery
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 September 2020
47,113
53,943
56,716
1,430
159,202
Additions
55,181
2,885
58,066
At 31 August 2021
47,113
109,124
59,601
1,430
217,268
Depreciation and impairment
At 1 September 2020
8,920
35,978
30,907
286
76,091
Depreciation charged in the year
9,423
12,315
12,853
286
34,877
At 31 August 2021
18,343
48,293
43,760
572
110,968
Carrying amount
At 31 August 2021
28,770
60,831
15,841
858
106,300
At 31 August 2020
38,193
17,965
25,809
1,144
83,111
R.S. AQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
- 11 -
4
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
439,730
249,762
Other debtors
387,015
183,884
826,745
433,646
5
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans
40,610
25,000
Trade creditors
340,669
240,575
Corporation tax
89,625
107,516
Other taxation and social security
10,562
7,172
Other creditors
478,653
410,319
960,119
790,582
6
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
70,101
59,479
7
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
58,333
78,333
R.S. AQUA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
- 12 -
8
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Dividends
2021
2020
£
£
Entities with control, joint control or significant influence over the company
450,000
266,778
During the year the company recharged costs totalling £195,512 (2020 - £71,023) to a group company R.S. Aqua Technical Services Limited. At the balance sheet date R.S. Aqua Technical Services Limited owed the company £162,841 (2020 - £80,419).
A bad debt provision of £52,000 (2020 - Nil) has been made in relation to the amount owed by R.S. Aqua Technical Services Limited.
9
Parent company
During the current and previous year, the company was under the control of the director by virtue of his majority shareholding in the ultimate parent company, R.S. Aqua Holdings Limited, a company incorporated in England and Wales.