RIQC_LIMITED - Accounts
RIQC_LIMITED - Accounts
RIQC Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2 St Georges House, Vernon Gate, Derby, United Kingdom, DE1 1UQ.
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 £.
At 31 December 2020, the company had net liabilities of £86,785 and is reliant on the support of the parent undertaking to enable it to meet its liability as they fall due. The directors have reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price and are subsequently carried at amortised less impairment.
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, and loans from fellow group companies, are initially recognised at transaction price and subsequently measured at amortised cost.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Equity instruments issued by the company are recorded at the proceeds received. 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.
The average monthly number of persons (including directors) employed by the company during the year was:
The company operated two defined contributions pension schemes during the year, one scheme ceased in July 2020 leaving one remaining scheme at the year end. The assets of the scheme are held separately from those of the company in an independently administered fund. Part of the pension cost charge represents contributions payable by the company to the fund and amounted to £2,323 (2019 - £2,325). There were no outstanding contributions to the fund at the balance sheet date.
The group operates a Defined benefit pension scheme, which is funded.
The assets of the scheme are held separately from those of the group, being managed by the trustees of the scheme.
A number of employees are members of the Group’s section of the Railway Pension Scheme which is an industry-wide contributory scheme with defined benefits based on average final salary. Those employees who were employees of the British Railways Board at 5 November 1993 have statutory protection of pension rights under the Railway Act 1993 and are entitled to the same pension rights for all future continuous employment.
Contributions to the scheme are based on pension costs across the group as a whole. The company is unable to identify its share of the underlying assets and liabilities of the scheme and therefore these are not reflected in the accounts of the company. The company's contribution to the scheme for the year amounted to £19,286 (2019: £19,020).
The pension cost and provision for the year ending 31 December 2020 are based on the advice of a professional qualified actuary. The most recent formal valuation is dated 31 December 2020 which has been updated to reflect conditions at the balance sheet date. The results of this valuation showed that the assets of the Group’s section of the Scheme were £11.03m and the actuarial valuation of those assets represented 74.5% of the benefits accrued to members after allowing for future increases in earnings. The assumptions that have the most significant effect on the valuation are those related to the rate of return on investments and the rate of increase in salaries and pensions. It was assumed that the discount rates for pre and post retirement would be 1.2% per annum, but salary increases would average 4.0% p.a. in 2021 followed by 2.5% p.a. thereafter.
The pension charge for the year ended 31 December 2020 was £49,000 (2019: £40,000) plus administration charges of £73,000 (2019: £53,000) calculated using the Projected Unit Method. The contributions of the Company and employees were 60% and 40% of their Future Service Joint Contribution Rate (FSJCR) of their section pay.
The Defined Benefit Scheme is closed to new members and so, under the Projected Unit Method, the current service cost would be expected to increase over time as a percentage of pay as members of the Scheme age but is expected to then gradually reduce to zero as members of the Scheme approach retirement.
The latest formal valuation was updated to 31 December 2020 by a qualified independent actuary. From this, the results for the group indicated that at that date there was a deficit in the scheme of £3,770,000.
The company is a party, together with other group companies, to a debenture in favour of the Royal Bank of Scotland PLC as security for overdraft facilities. The security is in the form of fixed and floating charges over the company and all property and assets. There are also cross guarantees between companies within the group. Total group net borrowings at 31 December 2020 were £Nil (2019: £Nil). The contingent liability of RIQC Limited was £Nil (2019: £Nil).
During the year and continuing since the year end, the spread of COVID-19 has severely impacted many local economies around the globe. In many countries, businesses are being forced to cease or limit operations for long or indefinite periods of time, the Company has been fortunate enough to be able to postpone some of its non essential contracts whilst servicing others remotely.
Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of non-essential services have triggered significant disruptions to businesses worldwide, resulting in an economic slowdown. Governments and central banks have responded with monetary and fiscal interventions to stabilise economic conditions and the Company has utilised the Furlough measures introduced by the Government.
The Company has determined that these events are non-adjusting subsequent events. Accordingly, the financial position and results of operations as of and for the year ended 31 December 2020 have not been adjusted to reflect their impact. The duration and impact of the COVID-19 pandemic, as well as the effectiveness of government and central bank responses, remains unclear at this time. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the Company for future periods.