REGISTERED NUMBER: 03824397 (England and Wales)
Integrated Accommodation Services plc
Annual report and financial statements
for the year ended 31 December 2021
Contents
Page
Strategic report for the year ended 31 December 2021 1
2021 4
Independent a report to the members of Integrated Accommodation Services plc 6
Statement of comprehensive income for the year ended 31 December 2021 12
Statement of financial position as at 31 December 2021 13
Statement of changes in equity for the year ended 31 December 2021 14
Notes to the financial statements for the year ended 31 December 2021 15
Integrated Accommodation Services plc
1
The directors present their Strategic report on Integrated Accommodation Services plc (the company) for the year ended
31 December 2021.
Principal activities and business review
The company is engaged under a 30 year project agreement with the Secretary of State for Foreign and Commonwealth
Affairs, signed on 13 June 2000. Its registered number is 03824397. The agreement, under the Government Private
Finance Initiative , provides for the design, construction, financing, service and maintenance of new facilities,
together with the service, maintenance and remediation of certain existing facilities for the Government Communications
Headquarters in Cheltenham, England. The company achieved its first phase practical completion of building works and
the certification of those works in June 2003, ahead of the original programme. The company continues to provide
services to these facilities and it has completed the phased clearance of the older sites which were released back to the
Secretary of State and sold. The operational performance of the company during the year has been good and performance
deductions have been low.
Turnover and cost of sales have decreased in the period under review. This reflects higher allocation of turnover allocated
to remunerate the contract debtor balance.
The company has also entered into sub-contracts to allocate, under its direction, the provision of those services noted
above. Details of the principal sub-contracts are shown within Commitments and Related party disclosures in notes 17
and 18 respectively to the financial statements.
The profit for the year under review as set out in the statement of comprehensive income on page 12 relates to activities
undertaken in respect of the project.
The financial position remains strong with net current assets of £292,179k and net assets of £71,457k; The directors
consider the performance of the company during the year and the financial position at the end of the year, to be in line
with the long term expected performance of the project.
COVID-19
The company has one customer, the Secretary of State for Foreign and Commonwealth Affairs (the customer). The
business is an essential service for the UK Government. The business continues despite the COVID 19 pandemic and is
not affected by Government restrictions in relation to business closures.
The directors have considered potential effects of COVID-19 on revenue streams, cost base, debtor recoverability, lender
covenants, capital allocation decisions, and liquidity and solvency.
The customer has committed to continue to pay the company in full during this time, relaxing the terms of SLAs to take
into account staff absences caused by self-isolating or sickness.
Given the continued receipt of revenues from the customer, the company expects no material adverse effect on revenue
streams, cost base, capital allocation decisions, covenants, or liquidity and solvency.
Section 172(1) Statement
Throughout the year the board has made due consideration during its discussions and decision-making of the matters set
out in section 172 of the Companies act 2006. Set out below is a description of how the directors have had regards to the
matters set out in section 172 (1) when performing their duties under section 172:
Integrated Accommodation Services plc
2
Strategic report
for the year ended 31 December 2021 (continued)
Section 172(1) Statement (continued)
a. The likely consequences of any decision in the long term
Supporting each decision, the Board are given access to management papers which set out the potential outcome
of decisions. The papers include diligence on the financial impact via forecasts, as well as non-financial factors
and how the decision fits with the strategy of the company. The company has a project life plan, which is a
financial plan supported by contracts, which is reviewed regularly to benchmark performance and achievements
against plan. Variable costs such as lifecycle are periodically reviewed via a full asset condition survey, and
plans amended accordingly. Where appropriate, the Board will take professional advice from Technical
Advisors and legal experts.
b.
The company has no employees and therefore is not required to consider matters of this regard. The company
does however, pay due regard to the interests and safety of all those engaged by contractors to the company to
perform services on its behalf.
c. tionships with suppliers, customers and others
The company is committed to upholding the underlying principle of PFI of working in partnerships with all
parties to the arrangement. The Company has one customer, a UK Government Department. Meetings are held
on a regular basis to ensure open communication and customer satisfaction. The main supplier is the FM
Contractor on site and the Company is able to communicate on a daily basis with this supplier to maintain good
relationships. The Company ensures good relationships with all suppliers and aims to ensure all suppliers are
paid within agreed terms. The board meet on a quarterly basis and receives reports from a financial, commercial,
and operational perspective, and uses this information to inform business decisions affecting the customer,
suppliers and other stakeholders.
d.
limited. Major maintenance expenditure is planned following asset condition surveys to maintain the asset at
the required contractual standards, and to ensure that the asset will meet the required contractual standards at
the end of the concession. The delivery of these works is carefully planned with the maintenance and operations
employees.
e. The desirability of the company maintaining a reputation for high standards of business conduct
consequently the ability of the company to operate in accordance with the highest levels of security and
confidentiality protocols is essential
by vetting key personnel and suppliers, monitoring suppliers through performance measures, and adhering to a
comprehensive anti-bribery and corruption policy.
f. The need to act fairly between members of the company
The company is jointly owned by two members who are represented equally in decisions and therefore has no
fairness considerations to be considered during decision making.
Integrated Accommodation Services plc
3
Strategic report
for the year ended 31 December 2021 (continued)
Principal risks and uncertainties
The company is risk averse in its principal activities as detailed above, as its trading relationships with its customer,
funders and sub-contractors are determined by the terms of their respective detailed PFI contracts. In extreme
circumstances, the company could be exposed to subcontractor failure to perform their obligations. The financial risks
(including subcontractor failure) and the measures taken to mitigate them are as detailed in the following sections.
Subcontractor failure
In the event of subcontractor failure, the company would directly manage the obligations, to ensure
continuity of service, until such time as a long term alternative solution is put in place.
Interest rate risk
The company manages its exposure to cash flow interest rate risk by using fixed interest rate financial liabilities. The
contract debtor attracts interest at a fixed property specific rate. As the fixed rate liabilities are not recorded at fair value
in the financial statements, fair value interest rate risk is not considered applicable.
Price risk
ulting in
the project being largely insensitive to movements in inflation rates over the life of the contract.
Liquidity risk
The company adopts a prudent approach to liquidity management by endeavouring to maintain sufficient cash and liquid
resources to meet its obligations as they fall due. Surplus cash is invested with its bankers on short term deposits. The
company is required to hold certain cash deposits in accordance with the Collateral Deed. This follows a standard
requirement of this type of financing arrangement.
Credit risk
The company receives all of its revenue and contract debtor remuneration from a government body and therefore is not
exposed to significant credit risk. Cash investments are with institutions of a suitable credit quality and are regularly
reviewed by the directors.
by the detailed terms of the PFI contract which stipulates key performance criteria on operational activities including
performance and availability. The board monitor these on a regular basis. Given the straightforward nature of the
s is not necessary for an understanding
of the development, performance or position of the business. The business success is linked to the delivery of the project
through achieving availability targets, minimising performance deductions, and meeting financial measures for Debt
Service Cover ratios, and Loan Life Cover ratios.
On behalf of the Board,
D Hardingham
Director
B C J Dean
Director
Date
20 April 2022
Integrated Accommodation Services plc
4
The directors present their report and the audited financial statements of the company for the year ended 31 December 2021.
Dividends and transfers to reserves
Dividends of £81.14 per ordinary share (2020: £59.70 per ordinary share) amounting to £4,462,652 (2020: £3,283,244) have
been paid during the year (note 15). No final dividends are proposed for the year ended 31 December 2021 (2020: £nil). The
amount transferred to reserves is set out in the statement of comprehensive income on page 12.
Directors
The directors of the company during the year ended 31 December 2021, and to the date of signing of the financial statements
were:
G Birley-Smith
B C J Dean
D Hardingham
Going concern and post balance sheet events
The directors are of the opinion that the company has adequate resources to continue in operation for the foreseeable future
and accordingly the financial statements have been prepared on a going concern basis. In assessing the company's ability to
continue as a going concern the directors have considered the impact of Covid-19, as described in the Strategic report.
Future developments
The directors continue to develop the business in line with the contract and there are no issues expected.
Corporate Governance
The board are appointed by the shareholders and meet quarterly to review the financial and operational performance of the
company. The company is a special purpose company specifically established to engage in a PFI project as noted in its
principal activities in the Strategic report. The
defined and restricted by the complex contracts which it has entered into. The board has an experienced operational
s
it sets and the key performance criteria stipulated under the detailed terms of the PFI contract.
Stakeholder engagement
The directors have identified the company, shareholders, customer and sub-contractors as the key stakeholders. The S172
statement in the Strategic Report sets out details of how the company works with those stakeholders.
Share capital structure
The company has a single class of ordinary shares, all of which rank equally. The company appoints directors nominated by
the shareholders of the holding company. The voting rights of those directors rank in proportion to the shareholdings in its
holding company. Current holdings are shown in note 19 of these financial statements.
Financial risk management
The company has exposures to a variety of financial risks which are managed with the purpose of minimising any potential
in the Strategic report. The company also reviews
the performance of the subcontractors on a monthly basis and takes action if the performance levels fall below the required
standard.
Streamlined energy and carbon reporting
The company is a low energy user, emitting and consuming less than 40MWh in the current and previous reporting
period. Energy emissions from activities, including greenhouse gases (GHG), and the consumption of energy for the
As an operator of a Government Private Finance
Initiative, the company:
does not incur any energy costs;
does not utilise any transportation;
had no employees during the year; and
services provided under the Project Agreement and related contracts are outsourced to the subcontractor.
As such, the company is not required to make detailed disclosures of energy and carbon information under the Companies
Act 2006.
Integrated Accommodation Services plc
5
report
for the year ended 31 December 2021 (continued)
Statement of directors' responsibilities in respect of the financial
statements
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law
and regulation.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have
prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United
mpany 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. In preparing the financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
state whether applicable United Kingdom Accounting Standards, comprising FRS 102, have been followed, subject
to any material departures disclosed and explained in the financial statements;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company
will continue in business.
The directors are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
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.
Directors' confirmations
Each of the directors, whose names and functions are listed in director's report confirm that, to the best of their knowledge:
the company financial statements, which have been prepared in accordance with United Kingdom Accounting
Standards, comprising FRS 102, give a true and fair view of the assets, liabilities, financial position and profit of the
company; and
the strategic report includes a fair review of the development and performance of the business and the position of
the company, together with a description of the principal risks and uncertainties that it faces.
so far as the director is aware, there is no relevant audit information of wh
and
they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any
tion.
Independent Auditors
The auditors, PricewaterhouseCoopers LLP, have indicated their willingness to continue in office and a resolution concerning
their re-appointment will be proposed at the Annual General Meeting.
On behalf of the Board,
D Hardingham B C J Dean
Director Director
Date
20 April 2022
Integrated Accommodation Services plc
6
members of Integrated Accommodation
Services Plc
Report on the audit of the financial statements
Opinion
financial statements:
December 2021 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom
applicable law); and
have been prepared in accordance with the requirements of the Companies Act 2006.
We have audit
comprise: Statement of Financial Position as at 31 December 2021; Statement of Comprehensive Income and Statement of Changes
in Equity for the year then ended; and the notes to the financial statements, which include a description of the significant accounting
policies.
Our opinion is consistent with our reporting to the Board of Directors.
Basis for opinion
We conducted our audit in accordan
responsibilities under ISAs (UK) financial statements section
of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial
statemented
our other ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by were not
provided.
We have provided no non-audit services to the company in the period under audit.
Our audit approach
Overview
Audit scope
We conducted a full scope audit of the company
Key audit matters
Accuracy of turnover and contract debtor
Materiality
Overall materiality: £608,000 (2020: £600,000) based on approximately 5% of profit before tax.
Performance materiality: £456,000 (2020: £450,000).
Integrated Accommodation Services plc
7
members of Integrated Accommodation
Services Plc (continued)
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements.
Key audit matters
Key audit matters are
financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not
due to fraud) identified by the auditors, including those which had the greatest effect on: the overall audit strategy; the allocation of
resources in the audit; and directing the efforts of the engagement team. These matters, and any comments we make on the results
of our procedures thereon, were addressed in the context of our audit of the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
Covid 19, which was a key audit matter last year, is no longer included because of assessment of risk related to Covid 19 has been
deemed to be normal in the current year. Otherwise, the key audit matters below are consistent with last year.
Key audit matter
How our audit addressed the key audit matter
Accuracy of turnover and contract debtor
under a 30 year project agreement with the Secretary of
State for Foreign and Commonwealth Affairs signed on 13
June 2000. The agreement, under the Government Private
Finance Initiative provides for the design, construction,
financing, service and maintenance of new facilities,
together with service, maintenance and remediation of
certain existi
Government Communications Headquarters in
Cheltenham, England. The company reflects the
since the contractual position and expectation is that these
costs will be repaid via payments received from
charge payments are designed to both repay the contract
debtor over the life of the contract and to also contribute to
running costs of ongoing service obligations of the
company. The intention being that by the end of the
arrangement, the contract debtor is settled in full. The
determination of the amounts to allocate from the unitary
charge payment to settle part of the outstanding contract
debtor, and by implication what to leave as income in the
financial statements requires some judgement and
estimation in model. Given the estimations and the size of
the balances involved, this is an area of focus. The imputed
interest receivable on finance debtor amounting to
£21,143k and total finance debtor balance amounting to
£272,265k has been disclosed within Note 6 and Note 9 in
the financial statements.
Our audit addressed the key audit matter as follows:
Manage
finance debtor and interest receivable to satisfy
ourselves that any movements in these balances have
been appropriately calculated and reflected in the model.
inance debtor
from cash receipts in relation to the unitary charge are
driven by a financial model that is extensively reviewed
and is used to ensure the debtor is paid down over the
life of the contract whilst having regard to that element of
the unitary charge receipts which are required to cover
other items such as actual and expected operating
expense. We have confirmed that the allocations are
and that the allocations are reasonable having regard to
appropriate consideration of other matters which the
unitary charges are designed to cover such as lifecycle
provisions. By performing look back procedures, we have
checked the past accuracy of management's estimates
around expenditure and RPI rates (which drives finance
debtor and turnover). This has provided comfort over the
robustness of management's projections in the financial
model being used.
finance debtor. We found the calculations to be accurate.
inputs such as inflation and tax rate changes, have been
appropriately reflected in the model and financial
statements. We found the calculations to be accurate.
Integrated Accommodation Services plc
8
eport to the
members of Integrated Accommodation
Services Plc (continued)
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements
as a whole, taking into account the structure of the company, the accounting processes and controls, and the industry in which it
operates.
design, construction, financing, service and maintenance
of new facilities, together with the service, maintenance and remediation of certain existing facilities for the Government
Communications Headquarters in Cheltenham, England. We audited the complete financial information of the company, including all
material account balances, classes of transactions and financial statement disclosures.
Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These,
together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit
procedures on the individual financial statement line items and disclosures and in evaluating the effect of misstatements, both
individually and in aggregate on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Overall company
materiality
£608,000 (2020: £600,000).
How we determined it
approximately 5% of profit before tax
Rationale for
benchmark applied
We believe that profit before tax is the primary measure used by the shareholders in assessing
the performance of the entity, and is a generally accepted auditing benchmark.
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and
undetected misstatements exceeds overall materiality. Specifically, we use performance materiality in determining the scope of our
audit and the nature and extent of our testing of account balances, classes of transactions and disclosures, for example in determining
sample sizes. Our performance materiality was 75% (2020: 75%) of overall materiality, amounting to £456,000 (2020: £450,000) for
the company financial statements.
In determining the performance materiality, we considered a number of factors - the history of misstatements, risk assessment and
aggregation risk and the effectiveness of controls - and concluded that an amount at the upper end of our normal range was
appropriate.
We agreed with the Board of Directors that we would report to them misstatements identified during our audit above £30,000 (2020:
£30,000) as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.
Conclusions relating to going concern
ng
included:
We assessed internal control related to going concern;
We challenged management to assess if there are any indicators of possible management bias relating to going concern and
implications for the audit;
We evaluated significant judgements made in relation to whether or not a material uncertainty exists, appropriateness of
management's use of the basis of accounting and the appropriateness of management's disclosures.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
iof at least
twelve months from when the financial statements are authorised for issue.
Integrated Accommodation Services plc
9
members of Integrated Accommodation
Services Plc (continued)
he
preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the company's ability
to continue as a going concern.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this
report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our audit
thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other
information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any
form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are
required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material
misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.
With respect to the Strategic report and Directors' report, we also considered whether the disclosures required by the UK Companies
Act 2006 have been included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and
matters as described below.
In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and Di rectors'
report for the year ended 31 December 2021 is consistent with the financial statements and has been prepared in accordance with
applicable legal requirements.
In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we did not identify
any material misstatements in the Strategic report and Directors' report.
Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Statement of directors' responsibilities in respect of the financial statements, the directors are
responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that
they give a true and fair view. The directors are also responsible for such internal control as they determine is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either
intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Integrated Accommodation Services plc
10
members of Integrated Accommodation
Services Plc (continued)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and
regulations related to the UK tax legislation, and we considered the extent to which non-compliance might have a material effect on
the financia
statements (including the risk of override of controls), and determined that the principal risks were related to the Companies Act 2006.
Audit procedures performed by the engagement team included:
Discussions with management and those charged with governance including consideration of known or suspected instances of
non-compliance with laws and regulation and fraud;
Incorporated unpredictability into the nature, timing and/or extent of our testing;
Challenging assumptions and judgements made by management in their significant accounting estimates;
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations; and
Reviewing minutes of meetings of those charged with governance.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-
compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also,
the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud
may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Our audit testing might include testing complete populations of certain transactions and balances, possibly using data auditi ng
techniques. However, it typically involves selecting a limited number of items for testing, rather than testing complete populations. We
will often seek to target particular items for testing based on their size or risk characteristics. In other cases, we will use audit sampling
to enable us to draw a conclusion about the population from which the sample is selected.
www.frc.org.uk/auditorsresponsibilities. This desc
Integrated Accommodation Services plc
11
members of Integrated Accommodation
Services Plc (continued)
Use of this report
s a body in accordance with Chapter
3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility
for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly
agreed by our prior consent in writing.
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
we have not obtained all the information and explanations we require for our audit; or
adequate accounting records have not been kept by the company, or returns adequate for our audit have not been received from
branches not visited by us; or
tion specified by law are not made; or
the financial statements are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Appointment
Following the recommendation of the Board of Directors, we were appointed by the members on 27 November 1999 to audit the
financial statements for the year ended 31 December 2000 and subsequent financial periods. The period of total uninterrupted
engagement is 20 years, covering the years ended 31 December 2000 to 31 December 2021.
Other matter
In due course, as required by the Financial Conduct Authority Disclosure Guidance and Transparency Rule 4.1.14R, these financial
statements will form part of the ESEF-prepared annual financial report filed on the National Storage Mechanism of the Financial
assurance over whether the annual financial report will be prepared using the single electronic format specified in the ESEF RTS.
Andrew Latham (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Bristol
20 April 2022
Integrated Accommodation Services plc
12
Note
2021
2020
Turnover
59,019
59,375
Cost of sales
(49,264)
(50,019)
Gross profit
9,755
9,356
Administrative expenses
(859)
(784)
Operating profit
5
8,896
8,572
Interest receivable and similar income
6
21,222
22,952
Interest payable and similar expenses
6
(17,262)
(18,977)
Profit before taxation
12,856
12,547
Tax on profit
7
(10,897)
(5,444)
Profit for the financial year
1,959
7,103
The company has been engaged solely in continuing activities in a single class of business within the United Kingdom for
both the current and prior year.
The notes on pages 15 to 32 form an integral part of the financial statements.
Integrated Accommodation Services plc
13
Note
2021
2020
Current assets
Debtors: amounts falling due within one year
8
31,108
28,575
Debtors: amounts falling due after more than one year
8
251,547
274,448
Cash at bank and in hand
44,656
44,765
327,311
347,788
Creditors: amounts falling due within one year
10
(35,132)
(37,565)
Net current assets
292,179
310,223
Total assets less current liabilities
292,179
310,223
Creditors: amounts falling due after more than one year
11
(188,507)
(212,449)
Provisions for liabilities
12
(32,215)
(23,814)
Net assets
71,457
73,960
Capital and reserves
Called up share capital
14
55
55
Retained earnings
71,402
73,905
Total equity
71,457
73,960
The financial statements on pages 12 to 32 were approved by the Board on and were signed on its behalf by:
D Hardingham
Director
B C J Dean
Director
Company registered number: 03824397
20 April 2022
Integrated Accommodation Services plc
14
Note
Called-up
share capital
Retained
earnings
Total
Equity
Balance as at 1 January 2020
55
70,085
70,140
Profit for the year
-
7,103
7,103
Dividends
15
-
(3,283)
(3,283)
Balance as at 31 December 2020
55
73,905
73,960
Balance as at 1 January 2021
55
73,905
73,960
Profit for the year
-
1,959
1,959
Dividends
15
-
(4,462)
(4,462)
Balance as at 31 December 2021
55
71,402
71,457
The notes on pages 15 to 32 form part of these financial statements.
Integrated Accommodation Services plc
15
1 General information
The principal activity of the design,
construction, financing, service and maintenance of new facilities, together with the service, maintenance and
remediation of certain existing facilities for the Government Communications Headquarters in Cheltenham,
England.
The company is a public company limited by shares and is incorporated and domiciled in the UK. The address
of its registered office Challenge House, International Drive, Tewkesbury Business Park, Tewkesbury,
Gloucestershire, United Kingdom GL20 8UQ.
2 Statement of compliance
The individual financial statements of the company have been prepared in compliance with United Kingdom
ies Act 2006.
3 Accounting policies
, which have been consistently applied, is set out
below.
3.1 Basis of preparation of 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" and the provision of the Large and
Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410) and under the
historical cost convention. Narrative disclosures of values in the notes to the financial statements are shown as
3.2 Going concern
The directors have assessed future cash flows and are satisfied that the company can meet its financial obligations
(including covenant compliance) as they fall due for the foreseeable future.
financial statements have been prepared on a going concern basis. In assessing the company's ability to continue
as a going concern the directors have considered the impact of Covid-19, as described in the Strategic report.
3.3 Financial Reporting Standard 102 reduced disclosure exemptions
FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions, which have been
complied with, including notification of, and no objection to, the use of exemptions by the c
shareholders. The company has taken advantage of the following exemptions:
from preparing a statement of cash flows. Integrated Accommodation Services plc is a wholly owned
subsidiary company of a group headed by Accommodation Services (Holdings) Limited and is included
in the consolidated financial statements of that company, which can be obtained from the address given
in note 19. Consequently, Integrated Accommodation Services plc has taken advantage of the
exemption under the terms of FRS 102 paragraph 1.12(b), from the requirements of Section 7 Statement
of Cash Flows and Section 3 Financial Statement Presentation paragraph 3.17(d).
from disclosing the company key management personnel compensation per FRS 102 paragraph 33.7.
3.4 Currency
The financial statements are presented in pound sterling and rounded to thousands.
Integrated Accommodation Services plc
16
3 Accounting policies (continued)
3.5 Turnover
Turnover represents the value of work done and services rendered, excluding sales related taxes. All turnover
originates in the United Kingdom. The company is engaged in only one class of business and operates solely
within the UK.
The company recognises income when it has fully fulfilled its contractual obligations under the terms of the
project agreement. In accordance with FRS 102 s23.3, the company includes sales and purchase transactions
related to variations under the original contract where the benefits and risks are retained by the company, within
the financial statements as turnover and cost of sales.
Turnover for the year consisted of £32.9m basic income (2020: £32.6m) and variation income of £26.1m (2020:
£26.8m).
Transactions amounting to £4.3m (2020: £4.9m) of revenue and the same value of cost of sales to which the
company does not have access to all of the significant benefits or exposure to the significant risks are excluded
from the statement of comprehensive income in accordance with FRS 102 s23.4, as in the opinion of the
Directors, the company is acting as an agent for these transactions. The company does not receive any
commissions on these transactions from the customer.
3.6 Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the
statement of financial position date, where transactions or events that result in an obligation to pay more tax in
the future or a right to pay less tax in the future have occurred at the statement of financial position date.
Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing
differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted
by the statement of financial position sheet date. Deferred tax is measured on a non-discounted basis.
Deferred tax assets are only recognised when it is considered more likely than not that there will be suitable
taxable profits from which the future reversal of underlying timing differences can be deducted.
3.7 Leased assets
Leases that do not transfer substantially all the risks and rewards of ownership are classified as operating leases.
Payments under operating leases are charged to the statement of comprehensive income on a straight-line basis
over the lease term.
3.8 Dividend policy
Final dividends and other distributions to the
statements in the period in which the dividends and other distributions are
shareholders. Interim dividends are recognised when paid. These amounts are recognised in the statement of
changes in equity.
3.9 Financial liabilities
The company accounts for and discloses its financial liabilities in accordance with Financial Reporting Standard
102 s11. Management has determined its financial liabilities as being borrowings, trade creditors and accruals.
All of the items are classified as financial liabilities measured at amortised cost in accordance with FRS 102 s11.
They are recognised initially at fair value net of transaction costs and subsequently carried at amortised cost
using the effective interest method.
Discounts, premia and related costs of debt issue are charged to the statement of comprehensive income over the
life of the instrument to which they relate, based upon the effective interest rate calculated in measuring amortised
cost.
Integrated Accommodation Services plc
17
3 Accounting policies (continued)
3.10 Financial assets
Basic financial assets are initially recognised at transaction price, unless the arrangement constitutes a financing
transaction, where the transaction is measured at the present value of the future receipts discounted at a market
rate of interest. Management has determined its financial assets as being cash, trade debtors, accrued income,
and contract debtors.
Impairments for financial assets are recognised if there is evidence as a result of one or more events that occurred
after the initial recognition of the asset which impacts upon estimated future cash flows or the financial assets.
3.11 Trade debtors
Amounts recoverable are measured initially at transaction price and subsequently carried at amortised cost using
the effective interest method. As described in the business review, all revenue is received from a government
body and there are currently no provisions for impairment.
3.12 Contract debtor
The company meets the conditions to treat its contract debtor as a Service Concession Arrangement under FRS
102 s34.12 (Accounting by Operator as a Financial Asset), however, as the company entered into this concession
prior to transition to FRS 102, under FRS 102 s35.10 (i), it is permitted to, and continues to account for the
contract debtor using the same accounting policies being applied at the date of the transition.
Amounts recoverable under long term Private Finance Initiative contracts are transferred to a contract debtor.
The amounts receivable (which may include the costs of construction of related assets) are treated as a long-term
contract debtor from the certification of the project facilities, with a proportion of the contractual net operating
revenue arising from the project being allocated to remunerate the contract debtor. Imputed interest receivable
is allocated to the contract debtor using a property specific rate to generate a constant rate of return over the life
of the contract. Over the course of the contract term, the contract debtor is expected to be fully repaid. Impairment
has been considered by the board taking into account that all income is received from a government body.
The fair value disclosure of the contract debtor uses a discounted cashflow method as described in note 9.
3.13 Cash and bank deposits
Bank deposits relate to short term deposits held for not more than three months in term accounts with the
3.14 Trade creditors
Trade creditors are measured initially at transaction price and subsequently measured at amortised cost using the
effective interest method.
3.15 Current taxation
Current tax comprises tax payable on current year profits, adjusted for non-tax deductible or non-taxable items,
and any adjustments to tax payable in respect of previous years. Current tax is recognised in the income statement
unless it relates to items which are recognised in other comprehensive income.
3.16 Related parties
The Company discloses transactions with related parties which are not wholly owned within the same Group.
Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the directors, separate
disclosure is necessary to understand the effect of the transactions on the Company financial statements. As a
wholly owned subsidiary of Accommodation Services (Holdings) Limited the company has taken advantage of
the exemption under FRS 102 s33 Related party disclosures of the requirement to disclose transactions with it.
Integrated Accommodation Services plc
18
4 Critical accounting judgements and estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the circumstances.
a) Critical judgements in applying the c
Concession arrangements - The Concession arrangements undertaken by the company are considered to fall
within the scope of FRS 102 s34.12. This judgement has been based on a consideration of the nature and
terms of the agreement and the existence of an option for the grantor to purchase the property.
b) Key accounting estimates and assumptions
i. Finance receivables The amounts receivable (which may include the costs of construction of
related assets) are treated as a long-term contract debtor from the certification of the project
facilities, with a proportion of the contractual net operating revenue arising from the project,
being allocated to remunerate the contract debtor. Imputed
interest receivable is allocated to the contract debtor using a property specific rate to generate a
constant rate of return over the life of the contract. The accounting for the contract debtor
requires estimation of contract debtors interest rates and associated amortisation profile which
are based on the forecast results of the PFI contracts over the respective concession length.
5 Operating profit
The company had no employees during the year (2020: none). None of the directors received any emoluments
paid directly from the company in either the current or previous year. The following management recharges were
made by the shareholders in respect of the services of directors to the company; Semperian Joint Ventures
Limited £113,833 (2020: £112,287), and Innisfree Limited £113,833 (2020: £112,287). The recharges paid by
the company in 2021 and 2020 do not reflect the amounts personally received by the directors in either year.
The audit fee in respect of the company for the year was £27,000 (2020: £24,000). In addition, the company bore
£3,000 (2020: £3,000) in respect of the audit fee of its parent company and non-audit services of £nil (2020:
£nil) during the year.
Integrated Accommodation Services plc
19
6 Net interest
2021
2020
Bank interest receivable
79
294
Imputed interest on contract debtor
21,143
22,658
Interest receivable and similar income
21,222
22,952
Interest payable and similar expenses on bonds
(14,105)
(15,812)
Interest payable and similar expenses on loan stock
(3,157)
(3,165)
Interest payable and similar expenses
(17,262)
(18,977)
Net interest receivable
3,960
3,975
Interest is imputed on the contract debtor using a property specific rate of 7.57% (2020: 7.57%).
Integrated Accommodation Services plc
20
7 Tax on profit
2021
2020
Analysis of charge in year
Current tax
UK corporation tax on profits of the year
2,496
2,211
Total current tax charge
2,496
2,211
Deferred tax
Origination and reversal of timing differences
669
812
Impact of change in tax rate on timing differences carried forward
11,582
4,067
Impact of change in tax rate on losses carried forward
(3,850)
(1,646)
Total deferred tax charge (note 12)
8,401
3,233
Tax on profit
10,897
5,444
The deferred tax charge for 2021 and 2020 relates entirely to timing differences.
Integrated Accommodation Services plc
21
7 Tax on profit (continued)
Reconciliation of tax charge
The tax assessed for the year is higher (2020: higher) than the standard effective rate of corporation tax in the
UK for the year ended 31 December 2021 of 19.00% (2020: 19.00%). The differences are explained below:
2021
2020
Profit before tax
12,856
12,547
Profit on ordinary activities multiplied by the standard rate in the UK of 19.00%
(2020: 19.00%)
2,443
2,384
Amortisation of non-qualifying expenditure
722
639
Impact of change in tax rate on timing differences carried forward
11,582
4,067
Impact of change in tax rate on losses carried forward
(3,850)
(1,646)
Tax on profits
10,897
5,444
Factors that may affect future tax charges
The government has passed legislation increasing the UK corporation tax rate from 19% to 25% from 1 April
2023. The deferred tax provision is expected to reverse after this rate increase, so the provision has been
calculated using the 25% rate. The effect of this rate change was a £7,732k increase in the deferred tax provision.
The company has incurred significant expenditure in the construction of the facility on which it has claimed tax
relief through capital allowances and claims for interest and loan related expenditure during the construction
period. It has used these claims to offset its current liabilities and retains tax losses to offset liabilities in future
years. As amounts are recovered to remunerate these costs they will be brought into current taxation in the year
in which they are received. As a result of these claims there exist significant timing differences, which are
expected to reverse over the life of the project agreement.
The company will continue to utilise tax losses to cover the maximum permitted proportion of its expected
taxable profits in future financial periods. As a result of the Finance (No 2) Act 2017, the amount of annual profit
earned after 1 April 2017 that can be relieved by brought forward losses is limited to 50%, subject to a £5 million
allowance per group. No reversal of deferred tax liabilities is expected in the next financial period.
Integrated Accommodation Services plc
22
8 Debtors
2021
2020
Amounts falling due within one year
Trade debtors
559
328
Contract debtor
20,718
20,002
Corporation tax
413
-
Prepayments and accrued income
9,418
8,245
31,108
28,575
Amounts falling due after more than one year
Contract debtor
251,547
274,448
The fair values of debtors are as follows:
2021
2020
(restated)
Trade debtors
559
328
Contract debtor
340,568
377,490
Corporation tax
413
-
Prepayments and accrued income
9,418
8,245
350,958
386,063
The fair value of the contract debtor for 2020 has been corrected for consistency with the methodology used to
calculate the 2021 fair value. This has resulted in a decrease of £6,170,000 in the fair value of the contract debtor,
changing the contract debtor as at 31 December 2020 from £383,660,000 to £377,490,000.
Integrated Accommodation Services plc
23
9 Financial assets
As described in the accounting policies, trade debtors are not considered to be impaired. Trade debtors include
invoices amounting to £559,000 (2020: £328,000), where the company does not have access to all of the
significant risks and benefits of the transactions. Accordingly, those transactions are excluded from the statement
of comprehensive income as explained in the accounting policies. The company bears no notable financial risk
as a corresponding amount is included within trade creditors. As of 31 December 2021, trade debtors of £55,000
(2020: £41,000) were past their due date. These balances relate to customers where there is no history of default.
The ageing of trade debtors is as follows: up to 3 months overdue £52,000 (2020: £21,000), 3-6 months overdue
£nil (2020: £5,000) and over 6 months overdue £3,000 (2020: £15,000).
The fair value of the contract debtor is based on cash flows over the life of the contract discounted using a rate
of 6.19% based on the weighted average rate of return on the borrowings when measured at fair value (2020
restated: 5.64%). The rate for 2020 has been recalculated for consistency with the methodology used to calculate
the 2021 fair value. The fair values of trade debtors, and accrued income equal their book values.
Trade debtors, accrued income, contract debtor and cash which are classified as that are
neither past due nor impaired are shown by their credit risk below.
2021
2020
Counterparties with external credit rating
Cash and term deposit accounts at bank
Investor Services
44,656
44,765
Counterparties with no external credit rating
Trade debtors
504
287
Corporation tax
413
-
Accrued income
8,500
8,097
Contract debtor
272,265
294,450
Total neither past due nor impaired
326,338
347,599
None of those financial assets that are neither past due nor impaired have had their terms renegotiated. The
ca is denominated in sterling for both financial years.
Included in cash and term deposit accounts at bank are cash reserves, the use of which is restricted under
agreements with the trustees of the Guaranteed Secured Bonds and Mezzanine Secured Notes, and amounts
restricted for future maintenance costs by the lenders. The value of this restricted cash at 31 December 2021 was
£36,693,000 (2020: £36,275,000).
Integrated Accommodation Services plc
24
10 Creditors: amounts falling due within one year
2021
2020
6.48% Guaranteed Secured Bonds due 2029
23,090
25,159
Less: issue costs
(349)
(400)
10.14% Mezzanine Secured Notes due 2028
1,226
1,109
Less: issue costs
(10)
(12)
Trade creditors
3,616
3,886
Other taxation and social security
1,741
1,709
Corporation tax
-
63
Accruals and deferred income
5,818
6,051
35,132
37,565
Information relating to the nature of the Guaranteed Secured Bonds and Mezzanine Secured Notes is contained
in note 11.
Integrated Accommodation Services plc
25
11 Creditors: amounts falling due after more than one year
2021
2020
More than one year but less than two years
6.48% Guaranteed Secured Bonds due 2029
22,702
23,090
Less: issue costs
(304)
(349)
10.14% Mezzanine Secured Notes due 2028
1,356
1,226
Less: issue costs
(9)
(11)
23,745
23,956
More than two years but less than five years
6.48% Guaranteed Secured Bonds due 2029
74,906
71,839
Less: issue costs
(613)
(765)
10.14% Mezzanine Secured Notes due 2028
4,990
4,513
Less: issue costs
(18)
(23)
79,265
75,564
More than five years
6.48% Guaranteed Secured Bonds due 2029
60,085
85,854
Less: issue costs
(172)
(323)
10.14% Mezzanine Secured Notes due 2028
3,119
4,951
Less: issue costs
(3)
(6)
14.00% Subordinated Loan Notes due 2028 (due to parent undertaking)
22,548
22,548
Less: issue costs
(80)
(95)
85,497
112,929
188,507
212,449
Integrated Accommodation Services plc
26
11 Creditors: amounts falling due after more than one year (continued)
Guaranteed Secured Bonds due 2029 of £406,850,000 were issued in 2000. Interest is payable on these bonds at
six-monthly intervals. Scheduled redemption by way of principal repayments commenced on 30 September
2006. These bonds are listed on the London Stock Exchange. As at 31 December 2021, £180,783,000 (2020:
£205,942,000) remains outstanding.
Mezzanine Secured Notes due 2028 relate to £22,610,000 issued in 2000. Interest is payable on these bonds at
six-monthly intervals. Scheduled redemption by way of principal repayments commenced on 30 September
2006. These notes are unlisted. As at 31 December 2021, £10,691,000 (2020: £11,799,000) remains outstanding.
Subordinated Loan Notes due 2028 relate to £22,548,000 issued in 2005 to the shareholder. 14% interest is
payable on these Subordinated Loan Notes at six monthly intervals commencing 1 January 2005. The company
anticipates commencing redemption by way of principal repayment in June 2028. These notes are unlisted and
unsecured.
The Guaranteed Secured Bonds rank in seniority to the Mezzanine Secured Notes, which in turn rank in seniority
to the Subordinated Loan Notes. The Guaranteed Secured Bonds and Mezzanine Secured Notes are secured by
a fixed charge over all leasehold interests, book debts, project accounts and intellectual property of the company
nt undertaking, Accommodation Services (Holdings) Limited, has subscribed for
£22,548,000 of Subordinated Loan Notes due 2028 in the company. Accommodation Services (Holdings)
Limited has in turn issued corresponding loan notes, which are held by its shareholders in proportion to their
shareholdings.
Issue costs of £1,558,000 (2020: £1,984,000) have been offset against bond and other loan liabilities and are
being amortised over the term of the related borrowings in accordance with the provisions of Financial Reporting
Standard 102 s11.
12 Provisions for liabilities
2021
2020
Provision for deferred tax
Accelerated capital allowances
32,911
26,926
Other timing differences
4,072
3,259
Losses
(16,045)
(15,640)
Accelerated finance costs
11,277
9,269
Total provision for deferred tax
32,215
23,814
Provision at 1 January
23,814
20,581
Deferred tax charge in statement of comprehensive income for the year (note
7)
8,401
3,233
Provision at 31 December
32,215
23,814
Unprovided deferred tax at 31 December 2021 totalled £nil (2020: £nil).
Integrated Accommodation Services plc
27
13 Financial instruments
Funding and liquidity
The company funds its operations through finance raised by the issue of fixed rate bonds and loan notes. At 31
December 2021, 40.2 percent (2020: 47.2 percent) of the outstanding bonds and loan notes were due for
repayment in more than 5 years.
The company invests cash surplus to immediate needs with its bankers in term deposits with maturities arranged
to meet its cash flow needs. Interest rates receivable are directly related to the corresponding monthly LIBOR.
The company is required to hold certain cash reserves in accordance with the Collateral Deed. This follows a
standard requirement of this type of financing arrangement.
Short-term flexibility is obtained by maintaining current account balances with Integrated Accommodation
Services plc
2021
2020
Financial assets at amortised cost
The company held the following categories of sterling financial assets
Sterling monetary assets
Cash at bank
13,521
13,215
Bank deposits
31,135
31,550
44,656
44,765
Trade debtors
559
328
Accrued income
8,500
8,097
Contract debtor
272,265
294,450
Total financial assets
325,980
347,640
Bank deposits relate to short term deposits held for not more than three months in separate term accounts with
bankers. Interest is payable periodically at a rate linked to LIBOR. The bank deposits are secured
under a fixed charge to the security trustee for the secured bonds. Deposits mature at regular intervals to comply
with the requirement to hold reserves and to pay operating and finance costs.
Reserves in the form of separate cash and term bank accounts held in accordance with the Collateral Deed amount
to £44,656,000 (2020: £44,765,000).
Other than cash at bank, bank and cash deposits, trade debtors, accrued income and the contract debtor balance
the company has no other financial assets.
Integrated Accommodation Services plc
28
13 Financial instruments (continued)
Financial liabilities
Maturity analysis of financial instruments held to finance Integrated Accommodation Services plc operations:
Bond liabilities
2021
Amount
Weighted
average
interest rate
Weighted average
period for which
rate is fixed
Maturity of financial liabilities (before issue costs)
In less than one year
24,316
6.66%
1
In more than one year but not less than two years
24,058
6.73%
1
In more than two years but not more than five years
79,896
6.61%
3
In more than five years
85,752
9.21%
4
Total
214,022
7.98%
9
Bond liabilities
2020
Amount
Weighted
average
interest rate
Weighted average
period for which
rate is fixed
Maturity of financial liabilities (before issue costs)
In less than one year
26,268
7.43%
1
In more than one year but not less than two years
24,316
7.53%
1
In more than two years but not more than five years
76,352
7.81%
3
In more than five years
113,353
8.84%
5
Total
240,289
7.86%
10
Integrated Accommodation Services plc
29
13 Financial instruments (continued)
2021
2020
Financial liabilities at amortised cost
The company held the following categories of financial liabilities
Trade creditors
3,616
3,886
Accruals
5,698
5,917
6.48% Guaranteed Secured Bonds due 2029
180,783
205,942
10.14% Mezzanine Secured Notes due 2028
10,691
11,799
14.00% Subordinated Loan Notes due 2028
22,548
22,548
Total financial liabilities
223,336
250,092
2021
2020
Book value
Fair value
Book value
Fair value
(restated)
Fair values of financial assets and liabilities
Primary financial instruments held or issued to
Financial assets (including cash at bank)
325,980
395,614
347,640
430,828
Financial liabilities (including trade creditors and
accruals)
(223,336)
(259,640)
(250,092)
(302,682)
The fair value of the contract debtor for 2020 has been corrected for consistency with the methodology used to
calculate the 2021 fair value. This has resulted in a decrease of £6,170,000 in the fair value of the contract debtor,
changing the contract debtor as at 31 December 2020 from £383,660,000 to £377,490,000.
Integrated Accommodation Services plc
30
13 Financial instruments (continued)
Full descriptions of the bonds are given in note 11. The basis of the fair values for financial assets is disclosed
in note 9. The fair values for trade creditors and accruals are equal to their book values. Credit margins on long
term bonds (both guaranteed and secured notes) vary in accordance with market demand and other factors. The
fair value of the guaranteed secured bonds has been determined by reference to listed prices available from the
markets on which the instruments involved are traded. Although the secured notes are not currently traded on
any markets, the fair value for 31 December 2021 and 31 December 2020 has been determined by a valuation
performed by M&G Investments.
ertaking has been valued at par. A range of fair
values has been computed using discount rates between 12% and 16% which place the value between
£26,081,000 and £21,875,000. As there is no market in which they may currently be traded, fair value at par
represents the net present value of future anticipated payments, discounted at the coupon rate of 14%, on the
assumption that they are held to maturity. The directors are of the opinion that this is a representative market
discount rate given the restrictions imposed on the terms of the notes.
14 Called up share capital
2021
2020
Allotted and fully paid
55,000 (2020: 55,000) ordinary shares of £1 each
55
55
All terms in
Subject to the Act and these Articles, the Board may pay dividends if justified by the available profits in
respect of the relevant period among the Ordinary Shares
The holders of the Ordinary Shares shall have the right to vote at all general meetings of the Company and to
receive and vote on proposed written resolutions of the Company.
15 Dividends
2021
2020
Dividend of £81.14 per share (2020: £59.70) paid from distributable reserves
4,462
3,283
Integrated Accommodation Services plc
31
16 Obligations under leases
The company has entered into an operating lease and has an annual commitment under leases for land and
buildings of £1 (2020: £1) expiring after five years. The total commitment at 31 December 2021 was £9 (2020:
£10).
17 Commitments and contingent liabilities
Under the terms of an operating agreement with G4S Facilities Management Limited (formerly G4S Integrated
Services (UK) Limited) dated 22 June 2000, the company is committed to the payment of fixed and variable fees
based on services provided in the contract term which includes services provided during the period of
construction. Payments made in the year to 31 December 2021 were £22,822,000 (2020: £22,697,000). G4S
Facilities Management Limited also provided services to the company under short term contractual variations to
the operating contract for miscellaneous works and fittings at a cost of £7,268,000 (2020: £7,771,000).
Under the terms of a management services agreement dated 22 June 2000, administrative and technical services
were provided by G4S Facilities Management Limited at a cost of £484,000 (2020: £467,000).
Under the terms of a consultancy services agreement with Imagile Professional Services Limited dated 13
November 2018, the group is committed to the payment of fixed and variable fees based on services provided in
the contract term. Payments made in the year to 31 December 2021 were £908,000 (2020: £616,000).
At the year end there was £3,446,060 (2020: £3,345,182) payable to G4S Facilities Management Limited, and
£70,335 (2020: £nil) payable to Imagile Professional Services Limited.
Integrated Accommodation Services plc
32
18 Related party disclosures
Semperian Joint Ventures Limited, a shareholder in Accommodation Services (Holdings) Ltd (the parent
company of Integrated Accommodation Services plc), provided administrative and technical services at a cost
of £113,833 (2020: £112,287).
Innisfree Limited, a company related to Innisfree PFI Secondary Fund, a shareholder in Accommodation
Services (Holdings) Ltd (the parent company of Integrated Accommodation Services plc), and Innisfree PFI
Secondary Fund 2 (a shareholder in Accommodation Services (Holdings) Ltd (the parent company of Integrated
Accommodation Services plc), (through their nominee Innisfree Nominees Limited), provided administrative
and technical services at a cost of £113,833 (2020: £112,287).
Imagile Professional Services Limited, a company related to Semperian Joint Ventures Limited, provided
administrative and technical services at a cost of £908,000 (2020: £616,000).
At the year end there was £nil (2020: £nil) payable to Semperian Joint Ventures Limited, £nil (2020: £nil)
payable to Innisfree Limited and £70,336 (2020:£nil) payable to Imagile Professional Services Limited.
As a wholly owned subsidiary of Accommodation Services (Holdings) Limited the company has taken advantage
of the exemption under FRS 102 s33 Related party disclosures of the requirement to disclose transactions with
it.
19 Parent undertakings
The company is a wholly owned subsidiary of Accommodation Services (Holdings) Limited (which is the largest
and smallest group to consolidated these financial statements), a company which prepares consolidated financial
statements which are available from its registered office: Challenge House, International Drive, Tewkesbury
Business Park, Tewkesbury, Gloucestershire, GL20 8UQ, England. Fifty percent of the share capital of
Accommodation Services (Holdings) Limited is held by Semperian Joint Ventures limited (formerly G4S Joint
Ventures Limited), twenty percent is held by Innisfree PFI Secondary Fund and thirty percent is held by Innisfree
PFI Secondary Fund 2 (through their nominee Innisfree Nominees Limited). All shareholders are companies
incorporated in England and Wales.
Accommodation Services (Holdings) Limited does not consider that it has one ultimate controlling party.