Company No: 10662207 (England and Wales)

Contents

• Statement of Financial Position
• Notes to the Financial Statements

	Note	31.12.2022		31.12.2021
		£		£
Fixed assets
Tangible assets	3	132,237		77,407
		132,237		77,407
Current assets
Debtors	4	4,385,471		2,860,327
Cash at bank and in hand		1,821,087		1,724,610
		6,206,558		4,584,937
Creditors: amounts falling due within one year	5	( 3,612,502)		( 3,429,926)
Net current assets		2,594,056		1,155,011
Total assets less current liabilities		2,726,293		1,232,418
Provision for liabilities		( 27,801)		( 11,434)
Net assets		2,698,492		1,220,984
Capital and reserves
Called-up share capital	6, 9	1		1
Profit and loss account		2,698,491		1,220,983
Total shareholders' funds		2,698,492		1,220,984

For the financial year ending 31 December 2022 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The director acknowledges their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

The financial statements of SR2 Rec Limited (registered number: 10662207) were approved and authorised for issue by the Director on 21 September 2023. They were signed on its behalf by:

Mr C E Sheard Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial period, unless otherwise stated.

General information and basis of accounting

SR2 Rec Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Runway East Runway East, I Victoria Street, Bristol, BS1 6AA, England, United Kingdom.

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 items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The director has assessed the Statement of Financial Position and likely future cash flows at the date of approving these financial statements. The director has a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Reporting period length

In the previous reporting period. the directors elected to change the year end date to 31 December to coincide with the end of the calendar year. Therefore, the comparative figures are for the 4 month period ending 31 December 2021 which are not comparable with the current 12 month reporting period ending 31 December 2022.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Statement of Financial Position date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Statement of Income and Retained Earnings in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

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.

Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration. Turnover is recognised on a straight line basis over the length of the contract as this is the best estimate of when the customer takes control of the revenue based on the system available. Performance obligation is satisfied at the point where services are transferred to the customer regardless of the extent to which they consume this.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

Employee benefits

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Statement of Income and Retained Earnings in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Statement of Financial Position.

Finance costs

Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all tangible fixed assets, other than investment properties and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line basis over its expected useful life, as follows:

Land and buildings	3 years straight line
Vehicles	3 years straight line
Office equipment	3 years straight line
Computer equipment	3 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Leases

The Company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Statement of Income and Retained Earnings over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Statement of Financial Position date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Income and Retained Earnings as described below.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

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 creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Statement of Financial Position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2. Employees

	Year ended 31.12.2022		Period from 01.09.2021 to 31.12.2021
	Number		Number
Monthly average number of persons employed by the Company during the year, including the director	58		40

3. Tangible assets

	Land and buildings		Vehicles		Office equipment		Computer equipment		Total
	£		£		£		£		£
Cost
At 01 January 2022	38,298		0		9,910		71,477		119,685
Additions	200		108,371		0		22,246		130,817
At 31 December 2022	38,498		108,371		9,910		93,723		250,502
Accumulated depreciation
At 01 January 2022	8,770		0		5,902		27,606		42,278
Charge for the financial year	12,821		36,124		2,437		24,605		75,987
At 31 December 2022	21,591		36,124		8,339		52,211		118,265
Net book value
At 31 December 2022	16,907		72,247		1,571		41,512		132,237
At 31 December 2021	29,528		0		4,008		43,871		77,407

4. Debtors

	31.12.2022		31.12.2021
	£		£
Trade debtors	2,598,198		1,430,228
Amounts owed by associates	75,394		0
Amounts owed by director	78		0
Prepayments and accrued income	1,706,956		1,430,099
Other debtors	4,845		0
	4,385,471		2,860,327

5. Creditors: amounts falling due within one year

	31.12.2022		31.12.2021
	£		£
Trade creditors	58,722		73,421
Taxation and social security	1,043,864		869,698
Other creditors	2,509,916		2,486,807
	3,612,502		3,429,926

The other creditors balance includes a finance facility of £560,216 (2021: £1,135,304) secured in favour of the bank by way of a fixed and floating charge over all assets owned by the company.

6. Called-up share capital

	31.12.2022		31.12.2021
	£		£
Allotted, called-up and fully-paid
1,000 Ordinary A shares of £ 0.001 each	1.00		1.00
1 Ordinary B share of £ 0.001	0.00		0.00
1 Ordinary D share of £ 0.001	0.00		0.00
1 Ordinary C share of £ 0.001	0.00		0.00
1 Ordinary E share of £ 0.001	0.00		0.00
	1.00		1.00

7. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

	31.12.2022		31.12.2021
	£		£
- within one year	21,840		112,680

8. Related party transactions

Transactions with the entity's director

	31.12.2022		31.12.2021
	£		£
Amounts owed (to)/by the Director, at the balance sheet date	78		(483)

The balance is interest free and repayable on demand.

Other related party transactions

	31.12.2022		31.12.2021
	£		£
Amounts owed by companies under common control	75,394		0

The balance is interest free and repayable on demand.

9. Share option scheme

The Company has a share option scheme for all employees. On 24 February 2020, options were granted to 3 employees on unissued Ordinary A shares of £0.001 each with an exercise price of £33.38 per share. At 31 December 2022, there were 189 options place in respect of 3 employees who remained in employment with the company. Options are forfeited if the employee leaves the Company before the options vest.