ORS Contract Management Ltd - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 02444391 (England and Wales)

ORS CONTRACT MANAGEMENT LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

30 JUNE 2022

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

T H Owen

E W Owen

R I Owen

REGISTERED OFFICE:

Owens Group Head Office

Yspitty Road

Bynea

Llanelli

Carmarthenshire

SA14 9TG

REGISTERED NUMBER:

02444391 (England and Wales)

AUDITORS:

Bevan Buckland LLP

Ground Floor

Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

FIXED ASSETS

Investment property

4

7,467,938

7,467,938

CURRENT ASSETS

Debtors

5

353,310

288,751

Cash at bank

173,670

164,960

526,980

453,711

CREDITORS

Amounts falling due within one year

6

2,279,928

2,274,342

NET CURRENT LIABILITIES

(1,752,948

)

(1,820,631

)

TOTAL ASSETS LESS CURRENT LIABILITIES

5,714,990

5,647,307

CREDITORS

Amounts falling due after more than one year

7

(432,774

)

(864,339

)

PROVISIONS FOR LIABILITIES

9

(600,825

)

(606,660

)

NET ASSETS

4,681,391

4,176,308

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

10

4,681,291

4,176,208

SHAREHOLDERS' FUNDS

4,681,391

4,176,308

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 6 December 2022 and were signed on its behalf by:

R I 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.

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.

The parent company is Owens (Road Services) Limited, company number 01301976.

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 company's functional and presentation currency is GBP.

Going Concern

After reviewing 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 (2021 - NIL).

4.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 July 2021

and 30 June 2022

7,467,938

NET BOOK VALUE

At 30 June 2022

7,467,938

At 30 June 2021

7,467,938

Investment property was valued on 3 November 2021 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 were:

-

The building has a remaining economic life of at least 30 years, provided an adequate and suitable programme of maintenance and repair is followed.

-

It has been assumed a fire risk assessment and asbestos report has been undertaken.

The directors consider the valuation at this date to not materially differ to the year end value.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

243,770

179,714

Amounts owed by connected companies

109,540

109,037

353,310

288,751

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

2022

2021

£

£

Bank loans and overdrafts

432,449

419,351

Amounts owed to group undertaking

1,671,677

1,692,739

Taxation and social security

38,093

28,887

Other creditors

137,709

133,365

2,279,928

2,274,342

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans

432,774

864,339

The company has a loan facility repaid in monthly installments and fully repaid in March 2024. The facility is subject to a fixed interest rate of 1.50% and a margin rate of 1.75%.

8.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Bank loans

865,223

1,283,690

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.	PROVISIONS FOR LIABILITIES

2022

2021

£

£

Deferred tax

600,825

606,660

Deferred

tax

£

Balance at 1 July 2021

606,660

Credit to Income Statement during year

(5,835

)

Balance at 30 June 2022

600,825

Deferred tax relates to the revaluation of investment property.

10.

RESERVES

Retained

earnings

£

At 1 July 2021

4,176,208

Profit for the year

505,083

At 30 June 2022

4,681,291

Included in reserves are profits of £2,719,308 (2021: £2,719,308) that are non-distributable profits relating to revaluation gains of investment property.

11.	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

12.	POST BALANCE SHEET EVENTS

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

13.	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.

14.	CONTINGENT LIABILITIES

ORS Contract Management Ltd cross guarantees the borrowings of its parent company Owens (Road Services) Limited. At the 30 June 2022 the amount of borrowings cross guaranteed was £3,194,433 (2021: £3,558,538). At the 30 June 2022 Owens (Road Services) Limited had net assets of £18,434,431 (2021: £16,794,240).