Financial Statements 2010 – Total Response Limited
Financial Statements 2011 – Total Response Limited
Total Response Limited Financial Statements for the year 1 April 2010 to 31 March 2011 Page
Contents
1
Chair’s Statement - review of activities
1
Directors’ Report
2–3
Statement of Board of Directors Responsibilities
4
Operating and Financial Review
5
Auditors’ Report
6
Income and Expenditure Account
7
Balance Sheet
8
Cash Flow Statement
9
Notes to the Cash Flow Statement
10 – 15
Notes to the Financial Statements
Registered Office The Gateway, The Auction Yard, Craven Arms, Shropshire SY7 9BW
Company Registration No. 6178863
Financial Statements 2011 – Total Response Limited Chair’s Statement This is Total Response Limited’s 4th trading period since formation and I am pleased to report that the company has produced a surplus of £7,588, in line with the business plan. The company turnover has grown by nearly 7% and private work by 14%. Private work is showing a deficit after overheads have been applied, however, it should be noted that this has contributed around £158,000 towards central overheads (£154,000 in 2010). The majority of work undertaken was on behalf of the Shropshire Housing Group. The work undertaken was £4,066,004, commissioned by South Shropshire Housing Association and Meres & Mosses Housing Association. This has once again enabled Total Response Limited to increase its workforce. It has been a challenging year for Total Response Limited with the imple-
mentation of a new computer system, which required a lot of effort for all those involved. This should now stand us in good stead to deliver an even greater service to our customers, through being able to offer appointments whilst providing better management information on profitability of each job undertaken in real time. Finally, I would like to thank both the staff at Total Response Limited and my fellow Directors for their dedication and commitment to the company and the drive for delivering an efficient, effective local maintenance service. It has been a demanding year and once again they have risen to the challenge admirably. John Stringer Chair 18th July 2011
=================================================== Directors’ Report Members of the Board
business operations in the county. This will include further work for Meres & Mosses Housing Association and investigating opportunities to increase its level of private works.
The members of the Board who served during the year were as follows: John Stringer (Chair) Martin Buxey Martin Holland Mick Platt (resigned 21st September 2010) Stephen Donkserley (nominated 16th November 2010)
Cashflow and Liquidity The cashflow from operating activities during the year was £18,449. By order of the Board
The Board reports that the company produced a surplus of £7,588, compared to the budgeted £9,161 at the latest revised stage. Turnover was over £5.187 million.
John Stringer Chair
Future developments
18th July 2011
The Board is looking to further extend its 1
Financial Statements 2011 – Total Response Limited Statement of Board of Directors Responsibilities The Directors are responsible for preparing the Directors’ Report and the financial statements in accordance with applicable law and regulations.
Directors’ Indemnity The Directors have confirmed that the company does have Directors and Officers Insurance in place.
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.
Internal Controls We have reviewed the effectiveness of the system of internal control, including the sources of assurance agreed by the Board as being appropriate for that purpose. On the basis of the evidence provided by the Assistant Director of Performance & Governance which has been considered by the Group Board on 27th May 2011, we are satisfied that there is sufficient evidence to confirm that adequate systems of internal control existed and operated throughout the year. We are also satisfied that those systems were aligned to an ongoing process for the management of the significant risks facing TRL and the Group as a whole. No weaknesses were identified which would have resulted in material misstatement or loss and which would have required disclosure in the financial statements.
In preparing these financial statements, the directors are required to: select suitable accounting policies and then apply them consistently; make judgments and accounting estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
Financial Instruments The company does not have any abnormal exposure to price, credit, liquidity and cash flow risks arising from its trading activities. The company does not enter into any hedging transactions and no trading in financial instruments is undertaken. Disclosure of Information to Auditors
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 safe-guarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In the case of each of the persons who are Directors of the company at the date when this report was approved: So far as each of the Directors is aware, there is no relevant audit information of which the company’s auditors are unaware; and
2
Financial Statements 2011 – Total Response Limited Each of the Directors has taken all the steps that they ought to have taken as a Director to make them aware of any relevant audit information and to establish that the company’s auditors are aware of that information. Going Concern After reviewing the company’s budget for 2011/2012 and based on normal business planning and control procedures, the Directors of the Board have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The financial statements have therefore been prepared on a going concern basis.
3
Financial Statements 2011 – Total Response Limited Operating and Financial Review Background
Continuous Improvement
Total Response Limited (TRL) is an independent private limited company (registration number 6178863) formed in June 2007 to provide high quality maintenance services to Shropshire Housing Group and external customers, and any other enterprises within the communities of Shropshire and Herefordshire.
We are committed to achieving excellent performance across the whole of our business and services. The Group has a comprehensive Performance Management framework which ensures a clear focus on performance improvement and clear responsibility for scrutiny on performance at various levels.
Operating Review
The Performance Management Group monitors benchmarked data together with performance indicators, reports and best practice visits. The group is made up mainly of senior managers from across the Shropshire Housing Group.
On 1st June 2007 Total Response Limited was established as a private limited company. It has delivered a quality repairs service to South Shropshire Housing Association and Meres and Mosses as well as private individuals. On 30th July 2007 it became a wholly owned subsidiary of the Shropshire Housing Group.
Risks and uncertainties Shropshire Housing Group uses risk modelling software to help embed risk management to all levels of the Group.
During the current year the company has managed the Facilities Management contract for the Gateway at Craven Arms and has won over £736k worth of private works. This has contributed around £158k to central overhead costs and has allowed a cost effective service to be delivered to the tenants of Meres & Mosses and South Shropshire Housing Associations.
Financial Review In 2010/2011 the company has achieved a surplus of £7,588, in line with the revised budget. The pricing structure which was revised in 2009/2010 is now implemented, and a new IT system in place to provide real time management information.
Reporting Structure The Board comprises up to 5 members. The Board is responsible for the company’s continuing strategy and policy framework. It delegates the day to day management and implementation of that framework to the Senior Management team. The Board now meets quarterly.
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Financial Statements 2011 – Total Response Limited Independent report of the Auditors to the members of Total Response Limited give a true and fair view of the state of the company’s affairs as at 31st March 2011 and of its surplus 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.
We have audited the financial statements of Total Response Limited for the year ended 31st March 2011 which comprise the Income and Expenditure Account, Balance Sheet, Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Opinion on the other matter prescribed by the Companies Act 2006
Respective responsibilities of the Board and Auditors
In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
As explained more fully in the Directors’ Responsibilities Statement set out on page 2, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors. 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 an auditor’s report 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.
Matters on which we are required to report by exception 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.
Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the APB's website at www.frc.org.uk/apb/scope/private.ofm.
Glen Jones (Senior statutory auditor) for and on behalf of Mazars LLP, Chartered Accountants (Statutory auditor)
Opinion on the financial statements
45 Church Street Birmingham B3 2RT
In our opinion the financial statements;
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Financial Statements 2011 – Total Response Limited Income and Expenditure Account for the year ended 31st March 2011 2011 £
2010 ÂŁ
Note Turnover Operating costs
2 2
5,187,934 (5,180,524)
4,866,807 (4,932,062)
Operating surplus / (deficit)
2
7,410
(65,255)
-
(32)
7,410
(65,287)
3
178 (-)
135 (-)
Surplus / (deficit) on ordinary activities before taxation
4
7,588
(65,152)
Taxation on surplus / (deficit) on ordinary activities
6
-
-
Surplus / (deficit) for the year charged to reserves
13
7,588
(65,152)
Loss on sale of fixed assets Surplus / (deficit) on ordinary activities before interest Interest receivable and similar income Interest payable and similar charges
All of the above relate to continuing activities.
There are no recognised gains or losses other than those included in profit or loss.
6
Financial Statements 2011 – Total Response Limited Registered No 6178863 Balance Sheet at 31st March 2011 2010
2011 Note Tangible fixed assets Tangible assets cost Less Depreciation
Current assets Stock Debtors Investments Cash at bank and in hand Creditors: amounts falling due within one year
£
£
£
364,170 (314,962) 49,208
7 7
£ 352,770 (227,337) 125,433
8 9 10
131,598 337,153 52,193 26,274 547,218
127,560 208,347 52,193 43,910 432,010
11
(705,617)
(674,222)
Net current liabilities
(158,399)
(242,212)
Total assets less current liabilities
(109,191)
(116,779)
Capital and reserves Called up share capital Revenue reserve
1 (109,192)
1 (116,780)
(109,191)
(116,779)
12 13
These financial statements were approved by the Board of Management on 18th July 2011 and were signed on its behalf by
John Stringer Chair
Jen Hayball Secretary
7
Financial Statements 2011 – Total Response Limited Cash Flow Statement for the year ended 31st March 2011 2010
2011 Net cash inflow from operating activities
Notes (a)
£
£
£
£
18,449
Returns on investments and servicing of finance Interest received Interest paid
178 -
63,119
135 178
Capital expenditure Proceeds on disposal of fixed assets Purchase of other tangible fixed assets
-
135
1,347
(12,764)
(19,750) (12,764)
(18,403)
Taxation Financing Principal lease repayments Net shares issued
(23,499) -
(36,658) (23,499) (36,658)
(Decrease) / Increase in cash
(17,636)
(c)
8
8,193
Financial Statements 2011 – Total Response Limited Notes to the Cash Flow Statement for the year ended 31st March 2011 (a)
Reconciliation of operating surplus / (deficit) to net cash inflow from operating activities 2011 £ 7,410 87,625 (128,806) (4,038) 56,258 18,449
Operating surplus / (deficit) Depreciation (Increase) in debtors (Increase) in stock Increase in creditors Net cash inflow from operating activities
(b)
2010 £ (65,255) 85,416 (46,820) (22,498) 112,276 63,119
Reconciliation of net cashflow to movement in net funds 2011 £
2010 £
(Decrease) / Increase in cash in the year Housing loans received
(17,636) -
8,193 -
Change in net funds Net funds brought forward
(17,636) 43,910
8,193 35,717
26,274
43,910
Net funds carried forward
(c)
Analysis of changes in net funds At 31st March 2010 £
Investments Cash at bank and in hand
Debt due after 5 years Total
At 31st March 2011 £
Cash Flow £
43,910 43,910
(17,636) (17,636)
26,274 26,274
-
-
-
43,910
(17,636)
26,274
9
Financial Statements 2011 – Total Response Limited Notes (forming part of the financial statements) 1
Accounting policies
The financial statements have been prepared in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). A summary of the more important accounting policies, which have been consistently applied, is set out below. The accounting policies were reviewed by the Shropshire Housing Limited Board on 27th May 2011 in accordance with FRS18. Accounting convention The financial statements are prepared under the historical cost convention. Turnover Turnover represents work done on behalf of other members of Shropshire Housing Group and external work done for other entities or private individuals, together with facilities management for the Gateway. Fixed assets and depreciation Other tangible fixed assets are stated at cost and are written down to their residual value over their expected useful life on a straight line basis at the following annual rates: Office equipment, fixtures & fittings Plant & machinery Vehicles
- 15% to 25% - 15% to 25% - 25%
Stock Stock is stated at the lower of cost and net realisable value. Operating leases Rentals payable under operating leases are charged on a straight-line basis over the term of the lease. Finance leases Assets acquired under finance leases are capitalised and interest charged to revenue. Pension costs Contributions payable to the company’s pension scheme are charged to the income and expenditure account so as to spread the cost of pensions over the service lives of employees in the schemes. FRS 17 is followed. Taxation The charge for taxation is based on the results for the year and takes into account taxation deferred (or accelerated) because of timing differences between the treatment of certain items for taxation and accounting purposes. Provision is made for deferred tax on a full provision basis.
10
Financial Statements 2011 – Total Response Limited Notes (continued)
2
Turnover, operating costs and operating surplus / (deficit) 2011
External work of TRL Internal work of TRL Facilities Management
3
2010
Turnover
Operating Costs
Operating (Deficit) / Surplus
Turnover
£
£
£
£
736,088 4,066,004 385,842 5,187,934
(794,728) (3,999,954) (385,842) (5,180,524)
(58,640) 66,050 7,410
643,205 3,799,916 423,686 4,866,807
£ 32,631 (97,886) (65,255)
Interest receivable and similar income 2011 £ 178
Interest receivable from bank deposits
4
Operating Surplus / (Deficit)
2010 £ 135
Surplus / (Deficit) on ordinary activities before taxation 2011 £
2010 £
Surplus / (Deficit) on ordinary activities before taxation is stated after charging: Depreciation of tangible fixed assets Auditors’ remuneration (including VAT):(This item is shown within group costs) In their capacity as auditors In respect of other services Amounts payable in respect of hire of plant and machinery Amounts payable in respect of rents of land and buildings
11
87,625
85,416
130,097 106,252
122,995 104,350
Financial Statements 2011 – Total Response Limited Notes (continued) 5
Staff costs 2011 £ 2,162,483 170,614 102,307 2,435,404
2010 £ 2,107,176 173,663 88,213 2,369,052
Average number of full-time equivalent persons employed during the year
97
95
These were categorised as: Office Teams Operatives
16 81
18 77
97
95
Wages and salaries Social security costs Other pension costs
No directors received payments from Total Response Limited during the year.
6
Taxation
Surplus / (Deficit) on ordinary activities before tax Tax on surplus / (deficit) on ordinary activities at 26% (2010 28%) Costs not deductible for tax purposes (primarily depreciation on tangible fixed assets) Capital allowances (restricted claim) Unrelieved tax losses utilised Current charge on the accounts
12
2011 £ 7,588
(65,152)
1,972
(18,242)
22,782 (5,281) (19,473)
23,916 (20,134) 14,460
-
-
2010
Financial Statements 2011 – Total Response Limited Notes (continued) 7
Tangible fixed assets Office equipment, fixtures & fittings
Plant and machinery & vehicles
Total
£
£
£
Cost At beginning of year Additions Disposals
27,764 6,414 -
325,006 4,986 -
352,770 11,400 -
At end of year
34,178
329,992
364,170
At beginning of year Charge for the year Eliminated on disposals
10,156 5,127 -
217,181 82,498 -
227,337 87,625 -
At end of year
15,283
299,679
314,962
18,895
30,313
49,208
17,608
107,825
125,433
Depreciation
Net book value st At 31 March 2011 st
At 31 March 2010
Assets held under finance lease accounts: 2011 £ 210,627 (157,970) 52,657
Cost Accumulated depreciation Next book value
8
Stock 2011 £ 131,598
Consumable maintenance stock
9
Debtors 2011 £ 337,153 337,153
Due within one year Prepayments and accrued income
10
2010 £ 127,560
2010 £ 208,347 208,347
Current asset investments 2011 £ 52,193
Land held for development / resale
13
2010 £ 52,193
Financial Statements 2011 – Total Response Limited Notes (continued) 11
Creditors: amounts falling due within one year 2011 £ 225,080 359,126 102,600 18,811 705,617
Trade creditors Accruals and deferred income Finance leases VAT
12
2010 £ 285,880 237,394 139,258 11,690 674,222
Called up share capital 2011 £
Issued and fully paid shares of £1 each: At beginning of year Issued during the year Relinquished during the year At end of year
13
2010 £ 1 1
1 1
Reserves Revenue reserve £ (116,780)
Balance brought forward
7,588
Surplus in the year
(109,192)
Balance carried forward
14
Pension obligations
All employees working within Total Response Limited are employed by South Shropshire Housing Association or Meres & Mosses Housing Association and, as such, they are members of the Social Housing Pension Scheme (SHPS) or the Shropshire County Council Pension Scheme. Full details and actuarial valuations of these schemes are disclosed in South Shropshire Housing Association’s, and Meres & Mosses Housing Association’s Financial Statements and Shropshire Housing Limited group accounts.
15
Capital commitments
Capital expenditure contracted for but not provided in the financial statements Capital expenditure authorised by the Board of Management but not yet under contract This will be financed from internal funds.
14
2011 £
2010 £
-
-
62,000
-
Financial Statements 2011 – Total Response Limited Notes (continued) 16
Other financial commitments
The company was committed to making the following annual payments under non-cancellable operating leases:
Operating leases which expire: 2011 ÂŁ
Within 1 year 1 - 2 years 2 - 5 years over 5 years
17
2010 ÂŁ
Property
Plant
Total
Total
9,225 97,027 106,252
73,013 18,549 38,535 130,097
73,013 27,774 38,535 97,027 236,349
12,245 87,410 34,939 95,125 229,719
Contingent liabilities
There were no contingent liabilities at 31st March 2010 or 31st March 2011.
18
Legislative provisions
The company is incorporated as a private limited company under the Companies Act 2006, Registered No. 6178863. The company has taken advantage of FRS8 exemption not to disclose intra-group transactions. The ultimate parent undertaking is Shropshire Housing Limited, an Industrial and Provident Society regulated by the Tenant Services Authority.
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