ORS Contract Management Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02444391 (England and Wales)

ORS CONTRACT MANAGEMENT LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

30 JUNE 2019

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

T H Owen

E W Owen

SECRETARY:

R J Williams

REGISTERED OFFICE:

Dafen Industrial Estate

Dafen

Llanelli

Carmarthenshire

SA14 8QE

REGISTERED NUMBER:

02444391 (England and Wales)

AUDITORS:

Bevan Buckland LLP

Langdon House

Langdon Road

SA1 Swansea Waterfront

Swansea

SA1 8QY

FIXED ASSETS

Investment property

4

4,650,000

4,480,691

CURRENT ASSETS

Debtors

5

271,362

129,774

Cash at bank

15,932

4,576

287,294

134,350

CREDITORS

Amounts falling due within one year

6

1,971,763

1,540,945

NET CURRENT LIABILITIES

(1,684,469

)

(1,406,595

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,965,531

3,074,096

CREDITORS

Amounts falling due after more than one year

7

1,590,631

1,993,025

NET ASSETS

1,374,900

1,081,071

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

1,374,800

1,080,971

SHAREHOLDERS' FUNDS

1,374,900

1,081,071

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 26 June 2020 and were signed on its behalf by:

T H Owen - Director

1.	STATUTORY INFORMATION

ORS Contract Management Limited is a private company, limited by shares , registered in England

and Wales. The company's registered number and registered office address can be found on the

Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

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

Rental income arising from operating leases on investment properties is accounted for on a straight

line basis over the lease term.

Interest received is recognised on receipt.

Investment property

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial

recognition, investment property is shown at most recent valuation. Any aggregate surplus or deficit

arising from changes in fair value is recognised in the statement of comprehensive income. Deferred

tax is provided against these gains at the rate expected to apply when the property is sold. The

treatment is in line with the fair value provisions of the Companies Act.

Investment properties are derecognised when either they have been disposed of or when the

investment property is permanently withdrawn from use and no future economic benefit is expected

from its disposal.

Investment properties are reclassified as 'held for sale' assets from commencement of marketing for

disposal, provided that the directors have reasonable expectation that they will be sold within a period

of 12 months.

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.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors and provisions

Short term creditors are measured at the transaction price. Bank loans are measured initially at fair

value, net of transaction costs, and are measured subsequently at amortised cost using the effective

interest method.

Provisions for liabilities

Provisions are recognised when the company has a present obligation (legal or constructive) from a

past event that will probably result in the transfer of funds to a third party and the amount due to settle

the obligation can be measured or estimated reliably.

Functional and Presentation Currency

The Group's functional and presentation currency is GBP.

Going Concern

During the year the company has renegotiated and renewed leases for a term of 5 years with an

option to renew. This has impacted positively on rental income revenues enabling the company to

meet its current obligations without further support from its parent company Owens (Road Services)

Limited.

Based on this and the company's forecasts and projections, the directors have a reasonable

expectation that the company has adequate resources to continue in operational existence for the

foreseeable future. The company therefore continues to adopt the going concern basis in preparing its

financial statements.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2018 - NIL).

4.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 July 2018

4,480,691

Additions

136,922

Revaluations

32,387

At 30 June 2019

4,650,000

NET BOOK VALUE

At 30 June 2019

4,650,000

At 30 June 2018

4,480,691

Investment property owned by the group was valued on 8th October 2018 by an external valuer M V

Jones MRICS of Lambert Smith Hampton.

The valuation was prepared on the basis of market value as defined in the Royal Institution of

Chartered Surveyors Valuation - Professional Standards UK January 2014 (revised April 2015).

Significant assumptions used in preparing the valuation are:

-

A risk assessment has been undertaken and will be continued to be reviewed and updated if there are any alterations to the premises or changes to work practices or use of the premises.

The directors consider there to be no material change in valuation at the balance sheet date.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

237,325

95,737

Amounts owed by connected companies

34,037

34,037

271,362

129,774

A connected company is a company under common control. Dafen Service Station Limited is a

company under common control as the directors of the company are T H Owen, E W Owen and Mrs

C L Owen.

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts

390,640

381,375

Trade creditors

10,006

-

Amounts owed to group undertaking

1,417,477

970,334

Taxation and social security

54,656

89,454

Other creditors

98,984

99,782

1,971,763

1,540,945

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Bank loans

1,590,631

1,993,025

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

-

334,799

The company financed a loan facility with Santander for a period of 5 years, the facility amount being

£3,900,000 at which point it was due for review or a bullet repayment of £2,275,000 if terminated. A

fixed interest rate of 2.05% and a margin rate of 2.35% apply to the loan facility.

During the year end the company negotiated terms with Santander to continue the loan over the

original term profile and with a new fixed interest of 1.50% and a margin rate of £1.75% applying to

the loan facility. The company received no additional borrowings. The directors consider this to be a

continuation of the original loan facility, not on substantially different terms, and not an extinguishment

of the original financial liability.

8.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Bank loans

1,981,271

2,374,400

The company's banker Santander UK PLC holds the following security: -

Legal charge dated 12/09/13 over the freehold property Panasonic Building, Christchurch Road,

Baglan Industrial Park, Baglan.

Debenture dated 12/09/13 securing by way of a fixed charge by way of legal mortgage, all right, title,

estate and other interests of the Company on the property also by way of fixed charge the books

debts.

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Alison Vickers (Senior Statutory Auditor)

for and on behalf of Bevan Buckland LLP

10.	POST BALANCE SHEET EVENTS

There were no events after the reporting period that are material for disclosure in the financial

statements.

11.	ULTIMATE CONTROLLING PARTY

Mr. T. H. Owen is the ultimate controlling party by virtue of a 60% holding of Owens (Road Services)

Limited share capital.

12.	CONTINGENT LIABILITIES

ORS Contract Management Ltd cross guarantees the borrowings of its parent company Owens

(Road Services) Limited. At the 30 June 2019 the amount of borrowings cross guaranteed was

£1,731,050 (2018: £1,972,279). At the 30 June 2019 Owens (Road Services) Limited had net assets

of £10,874,528 (2018: £8,886,268).