Rusdene Services Limited - Limited company accounts 18.2

REGISTERED NUMBER: 02040250 (England and Wales)

Rusdene Services Limited

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 30th September 2019

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

D R Lodge

O R Lodge

P S Lodge

REGISTERED OFFICE:

Units Hamble IV and V

Old Hambledon Racecourse Centre,

Wallops Wood, Sheardley Lane

Droxford

Hampshire

SO32 3QY

REGISTERED NUMBER:

02040250 (England and Wales)

AUDITORS:

Sheen Stickland

Chartered Accountants

Statutory Auditors

4 High Street

Alton

Hampshire

GU34 1BU

The directors present their strategic report for the year ended 30th September 2019.

REVIEW OF BUSINESS

The profit and loss account is set out on page 9 and shows turnover for the year of £23,059,720 (2018 -

£22,490,781) and profit before taxation for the year of £734,847 (2018 - £3,937,336).

Rusdene Services enjoyed another profitable year, where shop sales grew by 4.2% and fuel margins

remained strong. It is predicted that fuel margins for 19/20 will remain strong.

Further investment has been made in certain areas within its retail business and as a result successful

results have been achieved. Food-To-Go sales rose by 24%, and the business achieved sales of £250,000

after the investment in its e-cigarette business. Further investment in its Food-To-Go category will continue

for 19/20 in partnership with Country Choice.

2017/18 saw the installation of two electronic charging points in partnership with Instavolt at all of its

forecourts, this has proved popular with it's EV customers as well as demonstrating the company's

willingness to diversify and invest in new areas within the sector.

The Joint Venture operation, Gillhams Service Station was sold to a third party on 15th December 2017,

this is the reason for the large profit before tax in the prior year.

The company remains stable, without debt and committed to growing its sales and profits for the coming

year.

PRINCIPAL RISKS AND UNCERTAINTIES

The Company operates in a market that is highly competitive and profitability is determined both by fuel

costs and the prices charged by the large retail organisations. However, the Company has a very stable

balance sheet and its forecasts and projections, taking account of reasonable possible changes in trading

performance, show that it will have sufficient cash resources to meet its financial commitments as they fall

due. The Company also closely monitors the prices charged by its competitors so that it can retain its

market share.

ON BEHALF OF THE BOARD:

O R Lodge - Director

24th February 2020

The directors present their report with the financial statements of the company for the year ended 30th September 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the operation of petrol filling

stations, including related convenience stores and car valeting services.

DIVIDENDS

Dividends of £396,465 were paid throughout the year on the Ordinary £1 shares.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st October 2018 to the

date of this report.

D R Lodge

O R Lodge

P S Lodge

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and

explain the company's transactions and disclose with reasonable accuracy at any time the financial position

of the company and enable them to ensure that the financial statements comply with the Companies Act

2006. They are also responsible for safeguarding the assets of the company and hence for taking

reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the

Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the

steps that he ought to have taken as a director in order to make himself aware of any relevant audit

information and to establish that the company's auditors are aware of that information.

AUDITORS

Sheen Stickland will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

O R Lodge - Director

24th February 2020

Opinion

We have audited the financial statements of Rusdene Services Limited (the 'company') for the year ended

30th September 2019 which comprise the Income Statement, Other Comprehensive Income, 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 30th September 2019 and of its profit for the year 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 Auditors'

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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us

to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information

in the Strategic Report and the Report of the Directors, but does not include the financial statements and

our Report of the Auditors 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. We have nothing to report in

this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the

course of the audit, we have not identified material misstatements in the Strategic Report or the Report of

the Directors.

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 three, 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 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.

Auditors' 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 a Report of the Auditors 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.

A further description of our responsibilities for the audit of the financial statements is located on the

Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities . This description forms

part of our Report of the Auditors.

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 a Report of the Auditors 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.

Harriet Sergeant (Senior Statutory Auditor)

for and on behalf of Sheen Stickland

Chartered Accountants

Statutory Auditors

4 High Street

Alton

Hampshire

GU34 1BU

5th March 2020

REVENUE

23,059,720

22,490,781

Cost of sales

20,247,733

19,921,571

GROSS PROFIT

2,811,987

2,569,210

Administrative expenses

2,114,389

2,071,672

697,598

497,538

Other operating income

148,646

269,579

OPERATING PROFIT

846,244

767,117

Profit/loss on sale of invest

5

-

3,203,653

846,244

3,970,770

Income from joint venture

-

40,000

Interest receivable and similar income

6

-

6

40,000

846,250

4,010,770

Interest payable and similar expenses

6

111,403

73,434

PROFIT BEFORE TAXATION

7

734,847

3,937,336

Tax on profit

8

164,489

172,276

PROFIT FOR THE FINANCIAL YEAR

570,358

3,765,060

PROFIT FOR THE YEAR

570,358

3,765,060

OTHER COMPREHENSIVE INCOME

Deferred tax on revaluation

15,231

35,011

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

15,231

35,011

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

585,589

3,800,071

FIXED ASSETS

Property, plant and equipment

10

6,137,393

5,991,678

CURRENT ASSETS

Inventories

11

555,701

592,694

Debtors

12

4,377,503

4,343,824

Cash at bank and in hand

2,685,223

3,124,964

7,618,427

8,061,482

CREDITORS

Amounts falling due within one year

13

3,197,520

3,575,246

NET CURRENT ASSETS

4,420,907

4,486,236

TOTAL ASSETS LESS CURRENT LIABILITIES

10,558,300

10,477,914

CREDITORS

Amounts falling due after more than one year

14

(1,190,000

)

(1,310,000

)

PROVISIONS FOR LIABILITIES

18

(783,838

)

(772,576

)

NET ASSETS

8,584,462

8,395,338

CAPITAL AND RESERVES

Called up share capital

19

100

100

Revaluation reserve

20

3,173,301

3,241,477

Retained earnings

20

5,411,061

5,153,761

SHAREHOLDERS' FUNDS

8,584,462

8,395,338

The financial statements were approved by the Board of Directors on 24th February 2020 and were signed on its behalf by:

O R Lodge - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1st October 2017

100

1,546,506

3,289,873

4,836,479

Changes in equity

Dividends

-

(241,212

)

-

(241,212

)

Total comprehensive income

-

3,765,060

35,011

3,800,071

Amount released

-

83,407

(83,407

)

-

Balance at 30th September 2018

100

5,153,761

3,241,477

8,395,338

Changes in equity

Dividends

-

(396,465

)

-

(396,465

)

Total comprehensive income

-

570,358

15,231

585,589

Amount released

-

83,407

(83,407

)

-

Balance at 30th September 2019

100

5,411,061

3,173,301

8,584,462

1.	STATEMENT OF COMPLIANCE

Rusdene Services Limited is a private company, limited by shares, incorporated in England and

Wales. The address of the registered office is Unit IV and V, The Old Hambledon Racecourse Centre,

Wallops Wood, Sheardley Lane, Droxford, England, SO32 3QY. The registration number is 02040250.

The financial statements are presented in sterling which is the functional currency of the company

and rounded to the nearest pound.The financial statements have been prepared in compliance with

FRS 102 as it applied to the financial statements for the year ended 30th September 2019.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102

'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies

Act 2006.

The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial

statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and

Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard

102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose

related party transactions with wholly owned subsidiaries within the group.

Turnover

Revenue is measured at the fair value of the consideration received or receivable, excluding

discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

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

Freehold property

-

2% on cost or revalued amount

Plant and machinery

-

25% on cost and 5% on cost

Land and Building

The company took advantage of the arrangements under Financial Reporting Standard 35.10c on

transition to FRS 102, where the freehold property is revalued on transition and this then becomes

the deemed cost. The freehold property is then depreciated over its revised useful of 50 years. The

valuation was carried out by Derek Lodge a qualified quantity surveyor. The effective date of the

revaluation was 1st October 2014, the transitional date to FRS 102.

Stocks

Inventories are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income

Statement, except to the extent that it relates to items recognised in other comprehensive income

or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed

at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured

using tax rates and laws that have been enacted or substantively enacted by the year end and that

are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is

probable that they will be recovered against the reversal of deferred tax liabilities or other future

taxable profits.

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial

instruments.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and are initially

recognised at the transaction price. At the end of each reporting period financial assets are assessed

for objective evidence of impairment. Any impairment loss is recognised in profit or loss.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables and bank loans and are initially

recognised at the transaction price.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern

The directors believe that the company will continue as a going concern for the foreseeable future,

due to its large cash balance and large reserves balance as at 30th September 2019.

The directors are not aware of any material uncertainties to the company's ability to continue as a

going concern over the next 12 months of trading after the date of approval of the financial

statements for the year ended 30th September 2019.

3.	EMPLOYEES AND DIRECTORS

2019

2018

£

£

Wages and salaries

1,142,780

1,051,330

Social security costs

78,891

76,975

Other pension costs

14,808

9,821

1,236,479

1,138,126

The average number of employees during the year was as follows:

2019

2018

Office and administration

5

5

Sales and management

59

55

64

60

4.	DIRECTORS' EMOLUMENTS

2019

2018

£

£

Directors' remuneration

47,000

9,203

5.	EXCEPTIONAL ITEMS

2019

2018

£

£

Profit/loss on sale of invest

-

3,203,653

The company sold its subsidiary undertaking and joint venture in 2018 creating a profit on disposal.

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2019

2018

£

£

Bank loan interest

-

1,456

Directors' loan account

interest

111,403

71,978

111,403

73,434

7.	PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

2019

2018

£

£

Depreciation - owned assets

162,292

186,720

Profit on disposal of fixed assets

-

(163

)

Auditors' remuneration

16,950

16,950

Other non- audit services

1,312

-

Operating lease expense

72,000

72,000

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2019

2018

£

£

Current tax:

UK corporation tax

137,996

145,210

Deferred tax

26,493

27,066

Tax on profit

164,489

172,276

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The

difference is explained below:

2019

2018

£

£

Profit before tax

734,847

3,937,336

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2018 - 19%)

139,621

748,094

Effects of:

Expenses not deductible for tax purposes

4,827

5,507

Capital allowances in excess of depreciation

(6,452

)

-

Depreciation in excess of capital allowances

-

1,097

Income from joint venture in excess of share of taxable profit

-

(763

)

SSE exemption on sale of investments

-

(608,725

)

Deferred tax movement

26,493

27,066

Total tax charge

164,489

172,276

Tax effects relating to effects of other comprehensive income

2019

Gross

Tax

Net

£

£

£

Deferred tax on revaluation

15,231

-

15,231

2018

Gross

Tax

Net

£

£

£

Deferred tax on revaluation

35,011

-

35,011

9.

DIVIDENDS

2019

2018

£

£

Final

361,111

241,212

Interim

35,354

-

396,465

241,212

10.	PROPERTY, PLANT AND EQUIPMENT

Freehold

Plant and

property

machinery

Totals

£

£

£

COST

At 1st October 2018

6,235,984

1,086,386

7,322,370

Additions

124,174

183,833

308,007

Disposals

-

(21,258

)

(21,258

)

At 30th September 2019

6,360,158

1,248,961

7,609,119

DEPRECIATION

At 1st October 2018

419,999

910,693

1,330,692

Charge for year

105,840

56,452

162,292

Eliminated on disposal

-

(21,258

)

(21,258

)

At 30th September 2019

525,839

945,887

1,471,726

NET BOOK VALUE

At 30th September 2019

5,834,319

303,074

6,137,393

At 30th September 2018

5,815,985

175,693

5,991,678

Included in cost of land and buildings is freehold land of £ 1,038,112 (2018 - £ 985,984 ) which is not

depreciated.

The freehold property was valued on 1 October 2014 by Derek Lodge, a qualified quantity surveyor,

who is also a director of the company.

The company elected to apply the transitional provisions in section 35.10(c) of FRS 102 to use this

valuation as the deemed cost of the freehold property at the transition date.

If the freehold property had not have been revalued it would have been included at the following

historical cost:

2019

2018

£

£

Cost

2,189,832

2,065,657

Accumulated depreciation

294,608

272,174

Historical cost net book value

1,895,223

1,793,483