## REGISTERED NUMBER: 03824397 (England and Wales) Integrated Accommodation Services Plc Strategic Report, Directors' Report and Audited Financial Statements for the Year Ended 31 December 2024 Contents of the Financial Statements for the Year Ended 31 December 2024 Page [Strategic Report1](#_TOC_250001) [Directors' Report4](#_TOC_250000) Independent Auditors' Report7 Statement of Comprehensive Income15 Statement of Financial Position16 Statement of Changes in Equity17 Notes to the Financial Statements18 ## Strategic Report for the Year Ended 31 December 2024 The directors present their Strategic report on Integrated Accommodation Services plc (“IAS or “the company”) for the year ended 31 December 2024. ## Principal activities and business review The company is engaged under a 30 year project agreement with the Secretary of State for Foreign, Commonwealth and Development Affairs, signed on 13 June 2000. Its registered number is 03824397. The agreement, under the Government Private Finance Initiative (PFI), 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 (2024: £0, 2023: £6,318). Turnover and cost of sales have increased in the period under review. Turnover and cost of sales are subject to annual indexation in line with RPI. The applicable indexation from April 2024 was 4.53%. 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 22 and 23 respectively to the financial statements. The profit for the year under review as set out in the statement of comprehensive income on page 15 relates to activities undertaken in respect of the project. The financial position remains strong with net current assets of £222,351k and net assets of £73,361k; 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. ## Macro economic factors The company borrowings are at fixed rates. Movements in interest rates only affect interest received on cash deposits. Recent interest rate rises have generated increased interest income from bank deposits. Under the terms of the Project Agreement under which IAS is engaged, the proportion of the income that covers operating costs is linked to RPI. As such increases in RPI have no detrimental effect on the results of the company. The same indexation is applied to the income, and the operator costs. Other costs, such as lifecycle, are subject to general inflation. Forecasts for the business include allowances for inflation, and the recent high levels of inflation do not adversely affect the results of the company. ## Strategic Report for the Year Ended 31 December 2024 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: 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 interests of the company's employees 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.  The need to foster the company's business relationships 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.  The impact of the company's operations on the community and the environment The company's operations are undertaken within a confined geographical area to which access is severely 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 contractor and client to ensure minimum disruption to the users of the facility and the safety of the contractor's employees. e.  The desirability of the company maintaining a reputation for high standards of business conduct The company's operations are undertaken in a location which is key to the UK's national security interests, consequently the ability of the company to operate in accordance with the highest levels of security and confidentiality protocols is essential. The company's management ensure that those required standards are met 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 As a wholly owned subsidiary of Accommodation Services (Holdings) Limited, the company has no fairness considerations to be considered during decision making. ## Strategic Report for the Year Ended 31 December 2024 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 subcontractor's 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 The company's project revenue and most of its costs were linked to inflation at the inception of the project, resulting 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. ## Key performance indicators ('KPIs') The company's operations are managed under the supervision of its shareholders and funders and are largely determined 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 business, the company's directors are of the opinion that further analysis using KPIs 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: ..........................................................................………………………………………….. B C J Dean - DirectorD Hardingham - Director Date:   .2..1...M...a..y..2..0..2..5..........................Date:  …21…/0…5/2…02…5 ….. ## Directors' Report for the Year Ended 31 December 2024 The directors present their report with the financial statements of the company for the year ended 31 December 2024. ## Dividends Dividends of £261.16 per ordinary share (2023: £177.49 per ordinary share) amounting to £14,363,716 (2023: £9,761,572) have been paid during the year (note 9). No final dividends are proposed for the year ended 31 December 2024 (2023: £nil). The amount transferred to reserves is set out in the statement of comprehensive income on page 15. ## Directors The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report. B C J Dean D R Hardingham Mrs G Birley Smith ## Going concern and post balance sheet events The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons: The directors have prepared cash flow forecasts covering a period of at least 12 months from the date of approval of the financial statements which indicate that the company will have sufficient funds to meet its liabilities as they fall due for that period. Those forecasts are dependent on the underlying customer continuing to meet its obligations under the Project Agreement and the directors expect these amounts to be received even in severe but plausible downside scenarios. The company continues to provide the assets in accordance with the contract and are available to be used. As a result, the company does not believe there is any likelihood of a material impact to the unitary payment. The directors have considered the potential impact of the current economic climate, which includes the company’s operating cash inflows which are largely dependent on the unitary charge payments. Throughout the current economic climate, all unitary charge payments have been received on time and in full and the directors expect this to continue. The directors have assessed the viability of its main sub-contractors and reviewed the contingency plans of the sub- contractors and are satisfied in their ability to provide the services in line with the contract without significant additional costs to the company, even in downside scenarios, due to the underlying contractual terms. However, in the unlikely event of a subcontractor failure, the company has its own business continuity plans to ensure that service provision will continue. Consequently, the directors at the time of approving the financial statements have a reasonable expectation that  the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to  adopt the going concern basis of accounting in preparing the financial statements. There are no post balance sheet events. ## 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 company’s business is confined to that project and its activities are clearly defined and restricted by the complex contracts which it has entered into. The board has an experienced operational management and financial team who monitor the company’s and its subcontractors’ compliance with those contracts. The project director leads that team and regularly reports to the board of directors the company’s performance against the budgets it sets and the key performance criteria stipulated under the detailed terms of the PFI contract. 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 t he shareholders of the holding company. The voting rights of those directors rank in proportion to the shareholdings in its hol ding company. Current holdings are shown in note 20 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 adverse effect on the company’s performance and these are summarised 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 company’s own use has been considered in making this assessment. 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 Directors' Report for the Year Ended 31 December 2024 Statement of directors' responsibilities 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 Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, 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. 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 the 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. In the case of each director in office at the date the Directors’ Report is approved: -  so far as the director is aware, there is no relevant audit information of which the company’s auditors are unaware; and -  they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information. ## Auditors The auditors, BDO LLP, were appointed during the year and have indicated their willingness to continue in office. A resolution concerning their re-appointment will be proposed at the Annual General Meeting. ## On behalf of the board: ..........................................................................…………………………………………… B C J Dean - DirectorD Hardingham - Director Date: 21 May 2025 21/05/2025 Date: ………………………. ## Integrated Accommodation Services Plc INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INTEGRATED ACCOMMODATION SERVICES PLC Opinion on the financial statements In our opinion, the financial statements:          give a true and fair view of the state of the Company’s affairs as at 31 December 2024 and of its profit 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 Integrated Accommodation Services Plc (“the Company”) for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, the Statement of Financial Position and the Statement of Changes in Equity and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). ## Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the 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. Our audit opinion is consistent with the additional report to the audit committee. Independence Following the recommendation of the Audit Committee, we were appointed by the Board of Directors on 26 September 2024 to audit the financial statements for the year ended 31 December 2024 and subsequent financial periods. The period of total uninterrupted engagement including retenders and reappointments is 1 year, covering the year ended 31 December 2024. We remain independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. The non-audit services prohibited by that standard were not provided to the Company. # Conclusions relating to going concern In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the Directors’ assessment of the Company’s ability to continue to adopt the going concern basis of accounting included:          We obtained a copy of the Directors’ cash flow forecast and agreed the inputs, including future lifecycle costs, to the reports from management’s expert, externally sourced data, and signed contractual agreements. The forecast was then recalculated to check the mathematical accuracy of the forecast.          We compared the previous forecasts to actual performance to assess the Directors’ forecasting abilities.          We performed further sensitivity analysis on the forecasts to check that sufficient cash reserves would be maintained to settle obligations. Furthermore, we recalculated the applicable debt ratios to assess if the debt covenants will continue to be met.          We assessed the recoverability of the finance debtor by looking at the continued settlement of unitary charge invoices subsequent to year end.          We assessed the adequacy of the going concern disclosure to check that it gives a complete and accurate description of the Directors’ assessment of going concern and is consistent with our understanding obtained from audit procedures performed. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company’s ability to continue as  a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report. # Overview | | | | --- | --- | | Key audit matters | 2024   Financial model Lifecycle costs Revenue recognition-service revenue | | Materiality | Company financial statements as a whole ` £2,618,000 based on 1% of Total assets | An overview of the scope of our audit Our audit was scoped by obtaining an understanding of the Company and its environment, including the Company’s system of internal control, and assessing the risks of material misstatement in the financial statements. We also addressed the risk of management override of internal controls, including  assessing whether there was evidence of bias by the Directors that may have represented a risk of material misstatement. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified, 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 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. | | | | | --- | --- | --- | | Key audit matter | | How the scope of our audit addressed the key audit matter | | Financial Model | Management use a financial model to forecast the results of the Private Finance Initiative (‘PFI’) for the service concession agreement period. | Our audit work included the following: * We compared the current year actual results with the model used in 2023 to determine management’s forecasting ability. | | | The financial model drives a number of transactions and balances in the financial statements including the contract debtor, accrued income and interest receivable. There is a risk that inputs in the modelareinaccurate, compromising the integrity of the model, resulting in incorrect outputs and cash flow projections.   Based on the explanation above this is linked to significant risks and key audit matters discussed below and hence it is considered to be a key audit matter. | * We investigated key changes made to the model from 2023 to 2024. For any amendments identified, we obtained supporting evidence to evidence changes made to inputs. * We agreed the key inputs in the model to externally sourced data and signed contractual agreements. The key inputs were considered to be the completeness of the lifecycle profile and the allocation of the unitary charge payment to the finance debtor and revenue. * We reperformed the calculations to check the mathematical accuracy of the model. | | | | * We compared the results for the 2024 financial year with the projected results for 2025, to identify any anomalies that would be indicative of manipulation of the future profit margin. | | | | * We inspected the model to check the Contract debtor was forecast to fully amortise and the debt profile is settled over the life of the service concession agreement. | | | | Key observations: | | | | Based on the work performed we consider that the inputs and outputs to the financial model were accurate and appropriate. | | Lifecycle Costs   Refer to “Note 4 (ii) - Critical judgements and estimation uncertainty” | There is a risk that future lifecycle costs may not have been accurately forecast in the financial model for future periods, which could lead to incorrect determination of costs and revenue.   Determination of the lifecycle costs over the duration of the service concession agreement requires significant management judgement | Our audit work included the following: * We challenged management over the estimates of future lifecycle costs. In particular, this included assessing the reasonability of the long-term lifecycle plan, reviewing lifecycle budgets with reference to costs incurred to date and the overall condition of the core assets maintained by the Company as per contractual requirements. | | | and estimate.   As such, lifecycle costs represented a significant risk and key area of focus for our audit. | * We tested a sample of lifecycle costs to supporting documentation and challenged management as to whether the related work was completed at the year-end. This including testing a | | | | | | | | | | --- | --- | --- | | | | sample of lifecycle costs incurred pre and post year end by agreeing to support of work performed to determine if costs were recorded in the correct period. * We assessed the completeness of the lifecycle cost accruals by reviewing board minutes and discussions with operational management. * We inspected the financial model to check that the latest lifecycle plan has been appropriately reflected in the financial model. Key observations: Based on the work performed we consider that management’s key estimates in respect of lifecycle costs are reasonable. | | Revenue Recognition - Service Revenue Refer to “Note 3.5 and Note 4 (i) - Critical judgements and estimation uncertainty” | The determination of the amounts to allocate from the unitary charge payment to revenue and to settle part of the outstanding finance debtor, requires judgement and estimation in model as  it  is  mainly   driven   by   lifecycle cost. (see key audit matters above).  We | Our audit work included the following: * We have assessed estimates made by management in the financial model around the amount of the unitary  charge that is allocated to the finance debtor and revenue by verifying the actual costs and reviewing consistency of approach with prior years. | | | therefore considered this to be an area of significant risk and key area of focus for our audit. | * We assessed the adequacy of the key inputs in the model to ensure accuracy. * We tested the allocation of the unitary charge payment to revenue recognised in the financial statements and repayment of finance debtor and investigated differences from the allocation applied in prior year. | | | | * As the finance debtor repayment and revenue is determined on an underlying forecast of future lifecycle costs, refer to the audit work performed in respect of the Lifecycle Costs in the key audit matter above. | | | | * We agreed the allocation of the unitary charge account between revenue, interest and amortisation of the finance debtor with reference to the financial model and compared the total unitary charge to contractual entitlements. | | | | Key observations: | | | | Based on the work performed, we consider that the revenue recognised is appropriate. | # Our application of materiality We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements. We consider  materiality to be the magnitude by which misstatements, including omissions,  could influence the economic decisions of reasonable users that are taken on the basis of the financial statements. In order to reduce to an appropriately low level the probability that any misstatements exceed materiality, we use a lower materiality level, performance materiality, to determine the extent of testing needed. Importantly, misstatements below these levels will not necessarily be evaluated as immaterial as we also take account of the nature of identified misstatements, and the particular circumstances of their occurrence, when evaluating their effect on the financial statements as a whole. Based on our professional judgement, we determined materiality for the financial statements as a whole and performance materiality as follows: | | | | --- | --- | | | 2024 £ | | Materiality | £2,618,000 | | Basisfordetermining materiality | 1% of Total assets | | Rationaleforthe benchmark applied | The PFI project is asset driven and the success of the project is measured through the overall return of the project, with the Finance Debtor representing the right for future distributions. | | Performance materiality | £1,701,000 | | Basisfordetermining performance materiality | 65% of financial statement materiality | | Rationale for the percentage applied to performance materiality | The level of performance materiality was set based on the nature of the activities and operations of the Company, including expectation level of likely misstatements based on risk assessment procedures carried out and past experience of the sector. | Lower testing threshold We determined that for Cost of Sales and Administrative Expenses, a misstatement of less than materiality for the financial statements as a whole, could influence users of the financial statements. As a result, we determined a lower testing threshold for those items impacting Cost of Sales and Administrative Expenses of £1,120,000 based on 1.75% of Total operating costs. Reporting threshold We agreed with the Audit Committee that we would report to them all individual audit differences in excess of £52,000. We also agreed to report differences below this threshold that, in our view, warranted reporting on qualitative grounds. # Other information The directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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 in this regard. # Other Companies Act 2006 reporting Based on the responsibilities described below and our work performed during the course of the audit, we are required by the Companies Act 2006 and ISAs (UK) to report on certain opinions and matters as described below. | | | | --- | --- | | Strategic report and Directors’ report | In our opinion, based on the work undertaken in the course of the audit: * the information given in the Strategic report and the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and * the Strategic report and the Directors’ report have been prepared in accordance with applicable legal requirements.   In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the Directors’ report. | | Matters on which we are required to reportby exception | We have nothing to report in respect of the following matters in relation to which 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. | # Responsibilities of Directors As explained more fully in the Statement of Directors’ responsibilities, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors 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 Directors are responsible for assessing the Company’s ability to continue as a going concern, 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. # Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance 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. Extent to which the audit was capable of detecting irregularities, including fraud 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: Non-compliance with laws and regulations Based on our understanding of the Company and the industry in which it operates, discussion with management and those charged with governance and obtaining an understanding of the Company’s policies and procedures regarding compliance with laws and regulations, we considered the significant laws and regulations to be FRS 102, Companies Act 2006, Corporate Tax and VAT legislation. Our procedures in respect of the above included:          Review of minutes of meetings of those charged with governance for any instances of non-compliance with laws and regulations;          Review of financial statement disclosures and agreeing to supporting documentation;          Involvement of tax experts in the audit;          Review of legal expenditure accounts to understand the nature of expenditure incurred; and          Making enquiries of Management, those charged with governance and those responsible for legal and compliance procedures as to whether there was any correspondence from relevant regulators in so far as the correspondence related to financial statements. Irregularities including fraud We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:          Enquiry with management and those charged with governance, including the Audit Committee, regarding any known or suspected instances of fraud;          Obtaining an understanding of the Company’s policies and procedures relating to: * Detecting and responding to the risks of fraud; and * Internal controls established to mitigate risks related to fraud.          Review of minutes of meetings of those charged with governance for any known or suspected instances of fraud; and          Discussion amongst the engagement team as to how and where fraud might occur in the financial statements. Based on our risk assessment, we considered the areas most susceptible to fraud to be management’s bias in accounting estimates and posting inappropriate journal entries to manipulate the fair value of the Company’s assets. Our procedures in respect of the above included:          Testing a sample of journal entries throughout the year, which met a defined risk criteria, by agreeing to supporting documentation;          Challenging assumptions and judgements made by management in areas involving significant estimates, with the key sources of estimation identified as completeness and profiling of the lifecycle cost in the model and the allocation of the unitary charge payment to the finance debtor and revenue. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and  the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. A further description of our responsibilities is available on the Financial Reporting Council’s website at: [www.frc.org.uk/auditorsresponsibilities.](http://insite.bdo.co.uk/sites/audit/Documents/www.frc.org.uk/auditorsresponsibilities) This description forms part of our auditor’s report. # Use of our report 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. Cassie Forman Kotsapa (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor London, UK 21 May 2025 BDO LLP is a limited liability partnership registered in England and Wales (with registered number  OC305127). ## Integrated Accommodation Services Plc Statement of Comprehensive Income for the Year Ended 31 December 2024 20242023 | | | | | | --- | --- | --- | --- | | Notes | | £'000 | £'000 | | Turnover | 5 | 80,081 | 72,114 | | Cost of operations | | (64,109) | (58,116) | | Gross profit | | 15,972 | 13,998 | | Administrative expenses | | (1,167) | (1,101) | | Operating profit | 6 | 14,805 | 12,897 | | Interest receivable and similar income | 7 | 18,009 | 19,595 | | | | 32,814 | 32,492 | | Interest payable and similar expenses | 8 | (12,181) | (13,843) | | Profit before taxation | | 20,633 | 18,649 | | Tax on profit | 9 | (6,372) | (5,357) | | Profit for the financial year   Other comprehensive income | | 14,261        - | 13,292        - | | Total comprehensive income for the year | | 14,261 | 13,292 | | | | | | | | | | | --- | --- | --- | | Integrated Accommodation Services Plc (Registered number: 03824397)   Statement of Financial Position | | | | 31 December 2024 | | | 2024 | 2023 | | | | as restated | | Notes | £'000 | £'000 | | Current assets | | | | Debtors: amounts falling due within one year 12 | 38,369 | 35,450 | | Debtors: amounts falling due after more than | | | | one year12 | 173,673 | 204,510 | | Investments13 | 16,349 | 16,133 | | Cash at bank | 33,459 | 28,864 | | | 261,850 | 284,957 | | Creditors | | | | Amounts falling due within one year14 | (39,498) | (36,585) | | Net current assets | 222,352 | 248,372 | | Total assets less current liabilities | 222,352 | 248,372 | | Creditors | | | | Amounts falling due after more than one year 15 | (112,989) | (139,784) | | Provisions for liabilities19 | (36,002) | (35,124) | | Net assets | 73,361 | 73,464 | | Capital and reserves Called up share capital20 | 55 | 55 | | Retained earnings21 | 73,306 | 73,409 | | Shareholders' funds | 73,361 | 73,464 | | | | | The financial statements were approved by the Board of Directors and authorised for issue on   21 May 2025 and were signed on its behalf by: .......................................................................... B C J Dean - Director .......................................................................... D R Hardingham - Director | | | | | | --- | --- | --- | --- | | | Called up share capital | Retained earnings | Total equity | | Balance at 1 January 2023 | £'000 55 | £'000 69,879 | £'000 69,934 | | Changes in equity Profit for the year | - | 13,292 | 13,292 | | Total comprehensive income | - | 13,292 | 13,292 | | Dividends | - | (9,762) | (9,762) | | Balance at 31 December 2023 | 55 | 73,409 | 73,464 | | Changes in equity Profit for the year | - | 14,261 | 14,261 | | Total comprehensive income | - | 14,261 | 14,261 | | Dividends | - | (14,364) | (14,364) | | Balance at 31 December 2024 | 55 | 73,306 | 73,361 | ## 1.                General information The principal activity of Integrated Accommodation Services plc ("the company") continues to be 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 is Challenge House, International Drive, Tewkesbury Business Park, Tewkesbury, Gloucestershire GL20 8UQ, England. ## 2.                Statement of compliance The individual financial statements of the company have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The Financial Reporting Standard applicable  in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act 2006. ## 3.                Accounting policies Basis of preparing the financial statements A summary of the company's principal 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 round £'000. ## 3.2  Going concern The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons: The directors have prepared cash flow forecasts covering a period of at least 12 months from the date of approval of the financial statements which indicate that the company will have sufficient funds to meet its liabilities as they fall due for that period. Those forecasts are dependent on the underlying customer continuing to meet its obligations under the Project Agreement and the directors expect these amounts to be received even in severe but plausible downside scenarios. The company continues to provide the assets in accordance with the contract and are available to be used. As a result, the company does not believe there is any likelihood of a material impact to the unitary payment. The directors have considered the potential impact of the current economic climate, which includes the company’s operating cash inflows which are largely dependent on the unitary charge payments. Throughout the current economic climate, all unitary charge payments have been received on time and in full and the directors expect this to continue. The directors have assessed the viability of its main sub-contractors and reviewed the contingency plans of the sub- contractors and are satisfied in their ability to provide the services in line with the contract without significant additional costs to the company, even in downside scenarios, due to the underlying contractual terms. However, in the unlikely event of a subcontractor failure, the company has its own business continuity plans to ensure that service provision will continue. Consequently, the directors at the time of approving the financial statements have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements. ## 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 company's 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 23. 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. ## 3.5  Turnover Turnover represents the value of 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. ## 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 company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the company's 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. ## 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 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. ## 3.13    Cash and bank deposits Cash at bank relates to balances held in current accounts with the company's bankers. Bank deposits relate to short term deposits held for not more than three months in term accounts with the company's bankers. ## 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. ## 3.17  Interest expense Interest expense represents interest payable on the Guaranteed Secured Bonds, Mezzanine Secured Notes and Subordinated Loan Notes at six-monthly intervals. Further details can be found in Note 16. ## 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 company's accounting policies 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.   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, known as the "unitary charge", 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. ii.  Lifecycle expenditure is a key estimate in the future performance of the company. The company bears all the risk associated with lifecycle expenditure. The latest forecast for future lifecycle expenditure is based on a full condition survey of the asset, leading to detailed costings for future expenditure, including a prudent level of contingency. Expenditure against plan is measured, and the plan amended annually via a desktop review to ensure adequacy of the future plan. A further full condition survey of the asset is planned for 2028. The plan is reviewed by an independent Technical Adviser on behalf of the controlling creditor before seeking approval of the plan by the controlling creditor. Management believe the current forecast is a realistic estimate of future lifecycle expenditure, and do not believe that future lifecycle costs will adversely affect the future results of the company. ## 5.                Turnover Turnover for the year consisted of £46.2m service income (2023: £46.3m) and variation income of £33.8m (2023 £25.8m). Transactions amounting to £3.3m (2023: £3.9m) 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. ## 6.                Operating profit The company had no employees during the year (2023: 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 (formerly G4S Joint Ventures Limited) £146,059 (2023: £139,219), and Innisfree Limited £146,059 (2023: £139,219). The recharges paid by the company in 2024 and 2023 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 £56,000 (2023: £40,000). In addition, the company bore £12,000 (2023: £3,000) in respect of the audit fee of its parent company and non-audit services of £nil (2023: £nil) during the year. ## 7.                Interest receivable and similar income 20242023 | | | | | | --- | --- | --- | --- | | £'000 | | £'000 | | | Deposit account interest1,901 | | 1,712 | | | Imputed interest on contract debtor 16,108 | | 17,883 | | | 18,009 | | 19,595 | | | Interest is imputed on the contract debtor using a property specific rate of 7.57% (2023: | 7.57%). | | | | 8.Interest payable and similar expenses | 2024 | | 2023 | | | £'000 | | £'000 | | Interest Payable on Bonds | 8,737 | | 10,358 | | Sub debt interest payable | 3,165 | | 3,157 | | Amortisation of issue costs | 279 | | 328 | | | 12,181 | | 13,843 | | 9.Taxation | | | | | Analysis of the tax charge The tax charge on the profit for the year was as follows: | 2024 | | 2023 | | Current tax: | £'000 | | £'000 | | UK corporation tax | 5,494 | | 3,772 | | Deferred tax: Origination and reversal of timing differences | 878 | | 1,585 | | Tax on profit | 6,372 | | 5,357 | | | | | | ## 9.Taxation - continued Reconciliation of total tax charge included in profit and loss The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: | | | | | | --- | --- | --- | --- | | Profit before tax | 2024   £'000   20,633 | | 2023   £'000 18,649 | | Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.500%) | 5,159 | | 4,382 | | Effects of: Amortisation of non-qualifying expenditure | 1,213 | | 880 | | Impact of change in tax rate on timing differences carried forward | - | | (222) | | Impact of change in tax rate on losses carried forward | - | | 317 | | Total tax charge | 6,372 | | 5,357 | | Factors that may affect future tax charges | | | | 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. | | | | | --- | --- | --- | | Reversal of deferred tax liabilities is expected to begin in the next financial period.   10.Dividends | | | | Dividend of £261.16 per share (2023: £177.49) paid from distributable | 2024 £'000 | 2023 £'000 | | reserves | 14,364 | 9,762 | | 11.Prior year adjustment | | | | | | | In the prior year £16,133,000 of fixed term deposits were incorrectly included in cash at bank and in hand. The statement of financial position has been restated to reclassify the deposits as investments within current assets. | | | | | | | --- | --- | --- | --- | --- | | 12. | Debtors | 2024 | | 2023 | | | Amounts falling due within one year: | £'000 | | £'000 | | | Trade debtors Finance receivable on contract debtor | 473   26,734 | | 590   24,219 | | | Corporation tax debtor | - | | 165 | | | Prepayments and accrued income | 11,162 | | 10,476 | | | | 38,369 | | 35,450 | | | Amounts falling due after more than one year: Finance receivable on contract debtor | 173,673 | | 204,510 | | | | 173,673 | | 204,510 | | | Aggregate amounts | 212,042 | | 239,960 | ## 12.Debtors - continued Financial assets As described in the accounting policies, trade debtors are not considered to be impaired. Trade debtors include invoices amounting to £473,000 (2023: £590,000), 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 2024, trade debtors of £135,000 (2023: £2,000) 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 £64,000 (2023: £2,000), 3-6 months overdue £70,000 (2023: £nil) and over 6 months overdue £nil (2023: £nil). Trade debtors, accrued income, contract debtor and cash which are classified as 'loans and receivables' that are neither past due nor impaired are shown by their credit risk below. | | | | | --- | --- | --- | | | 2024 | 2023 | | £'000 | £'000 | | Counterparties with external credit rating | | | | Cash and term deposit accounts bank | 49,808 | 44,997 | | The company's bankers are rates "A" with Standard and Poor's and A2 with | | | | Moodys Investor Services | | | | Counterparties with no external credit rating | | | | Trade debtors | 473 | 590 | | Corporation tax | - | - | | Accrued income | 10,917 | 10,236 | | Contract debtor | 200,406 | 228,729 | | Total neither past due nor impaired | 261,604 | 284,552 | None of those financial assets that are neither past due nor impaired have had their terms renegotiated. The carrying amount of the company's financial assets 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 2024 was £39,035,000 (2023: £37,035,000). | | | | | --- | --- | --- | | 13.Current asset investments | 2024 | 2023 | | Current asset investments | £'000 | as restated £'000 | | Bank deposits | 16,349 | 16,133 | | | 16,349 | 16,133 | | 14.Creditors: amounts falling due within one year | 2024 | 2023 | | | £'000 | £'000 | | Trade creditors | 4,600 | 4,615 | | Corporation Tax Liability | 693 | - | | VAT | 2,098 | 1,758 | | 6.48% Guaranteed Secured Bonds due 2029 | 25,364 | 23,773 | | Less: issue costs | (205) | (256) | | 10.14% Mezzanine Secured Notes due 2028 | 1,658 | 1,499 | | Less: issue costs | (6) | (8) | | Accruals and deferred income | 5,296 | 5,202 | | | 39,498 | 36,583 | Information relating to the nature of the Guaranteed Secured Bonds and Mezzanine Secured Notes is contained in note 16. Accruals and deferred income includes £796,000 (2023 £796,000) of interest accrued on the subordinated loan notes due 2030. ## 15.             Creditors: amounts falling due after more than one year | | | | | | --- | --- | --- | --- | | | | 2024 | 2023 | | £'000 | £'000 | | | Subordinated debt (see note 16) | 22,514 | 22,499 | | | Bank loans (see note 16) | 90,475 | 117,285 | | | | 112,989 | 139,784 | | | | | | | | | | | | --- | --- | --- | --- | | 16. | Loans   An analysis of the maturity of loans is given below: | | | | | | 2024 | 2023 | | | Amounts falling due between one and two years: | £'000 | £'000 | | | 6.48% Guaranteed Secured Bonds due 2029 | 25,769 | 25,364 | | | Less: issue costs 10.14% Mezzanine Secured Notes due 2028 | (152)   1,833 | (205)   1,658 | | | Less: issue costs | (4) | (6) | | | | 27,446 | 26,811 | | | Amounts falling due between two and five years: 6.48% Guaranteed Secured Bonds due 2029 | 60,084 | 75,006 | | | Less: issue costs 10.14% Mezzanine Secured Notes due 2028 | (171)   3,119 | (302)   4,951 | | | Less: issue costs | (3) | (7) | | | | 63,029 | 79,648 | | | Amounts falling due in more than five years: | | | | | Repayable by instalments 14.00% Subordinated Loan Notes due 2028 | 22,548 | 22,548 | | | Less: issue costs 6.48% Guaranteed Secured Bonds due 2029 | (34)   - | (49)   10,847 | | | Less: issue costs | - | (21) | | | | 22,514 | 33,325 | | | | | | 16.             Loans - 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 2024, £111,217,000 (2023: £134,990,000) 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 2024, £6,609,000 (2023: £8,108,000) 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 2030. 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 and by a floating charge over the company's undertakings and assets. The company's parent undertaking, Accommodation Services (Holdings) Limited, has subscribed for £22,548,000 of Subordinated Loan Notes due 2030 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 £575,000 (2023: £854,000) 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. ## 17.             Leasing agreements The company has entered into an operating lease and has an annual commitment under leases for land and buildings of £1 (2023: £1) expiring after five years. The total commitment at 31 December 2024 was £7 (2023: £7). ## 18.             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 2024, 16.1 percent (2023: 20.2 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 Services's bankers. | balances | with | Integrated | Accommodation | | Financial assets at amortised cost | | | 2024 £'000 | 2023 £'000 | | The company held the following categories of sterling financial assets Sterling monetary assets Cash at bank | | | 33,459 | 28,863 | | Bank deposits | | | 16,349 | 16,133 | | | | | 49,808 | 44,996 | | Trade debtors | | | 473 | 588 | | Accrued income | | | 10,917 | 10,236 | | Contract debtor | | | 200,406 | 228,729 | | Total financial assets | | | 261,604 | 284,549 | Bank deposits relate to short term deposits held for not more than six months in separate term accounts with the company's 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 £49,808,000 (2023: £44,996,000). 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. ## Financial liabilities Maturity analysis of financial instruments held to finance Integrated Accommodation Services plc operations: | | | | | | --- | --- | --- | --- | | Bond liabilities Maturity of financial liabilities (before issue costs) | 2024 Amount £'000 | Weighted average interest rate | Weighted average period for which rate is fixed | | In less than one year | 27,021 | 6.59% | 1 | | In more than one year but not less than two years | 27,602 | 6.53% | 1 | | In more than two years but not more than five years | 63,203 | 6.78% | 3 | | In more than five years | 22,548 | 14.00% | 1 | | Total | 140,374 | 8.91% | 6 | | | | | | | | | --- | --- | --- | --- | --- | --- | | Bond liabilities Maturity of financial liabilities (before issue costs) | | 2023 Amount £'000 | Weighted average interest rate | Weighted average period for which rate is fixed | | | In less than one year | | 25,272 | 6.68% | 1 | | | In more than one year but not less than two years | | 27,021 | 6.59% | 1 | | | In more than two years but not more than five years | | 79,957 | 5.94% | 3 | | | In more than five years | | 33,395 | 14.00% | 2 | | | Total | | 165,645 | 8.30%7 | | | | | Financial liabilities at amortised cost | | | 2024 £'000 | 2023 £'000 | | | The company held the following categories of financial liabilities Trade creditors | | | 4,600 | 4,615 | | | Accruals | | | 5,221 | 5,112 | | | 6.48% Guaranteed Secured Bonds due 2029 | | | 111,217 | 134,990 | | | 10.14% Mezzanine Secured Notes due 2028 | | | 6,609 | 8,108 | | | 14.00% Subordinated Loan Notes due 2028 | | | 22,548 | 22,548 | | | Total financial liabilities | | | 150,195 | 175,373 | | 19. | Provisions for liabilities | | | 2024 | 2023 | | | Deferred tax | | | £'000 | £'000 | | | Accelerated capital allowances | | | 24,418 | 27,839 | | | Tax losses carried forward | | | - | (5,849) | | | Other timing differences | | | 11,584 | 13,134 | | | | | | 36,002 | 35,124 | | | | | | | Deferred | | Balance at 1 January 2024 | | tax £'000 35,124 | | | | | Provided during year | | 878 | | | | | Balance at 31 December 2024 | | 36,002 | | | | | | | | | | | ## 20.             Called up share capital Allotted and fully paid 20242023 £'000£'000 55,000 (2023: 55,000) ordinary shares of £1 each5555 All terms in this statement of capital, unless otherwise defined, are as defined in the Company's articles of association ("Articles") 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. ## 21.             Reserves Retained earnings £'000 At 1 January 202473,409 Profit for the year14,261 Dividends(14,364) At 31 December 202473,306 ## 22.             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 2024 were £29,737,000 (2023: £28,409,000). G4S Facilities Management Limited (formerly G4S Integrated Services (UK) 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 £5,550,000 (2023: £4,619,000). Under the terms of a management services agreement dated 22 June 2000, administrative and technical services were provided by G4S Facilities Management Limited (formerly G4S Integrated Services (UK) Limited) at a cost of £592,000 (2023: £564,000). 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 2024 were £728,000 (2023: £556,000). At the year end there was £4,363,122 (2023: £4,434,930) payable to G4S Facilities Management Limited, and £74,143 (2023: £60,053) payable to Imagile Professional Services Limited. ## 23.             Related party disclosures Semperian Joint Ventures Limited (formerly G4S Joint Ventures Limited), a shareholder in Accommodation Services Ltd (the parent company of Integrated Accommodation Services plc), provided administrative  and technical services at a cost of £146,059 (2023: £139,219). Innisfree Limited, a company related to Innisfree PFI Secondary Fund, a shareholder in Accommodation Services Ltd (the parent company of Integrated Accommodation Services plc), and Innisfree PFI Secondary Fund 2 (a shareholder in Accommodation Services Ltd (the parent company of Integrated Accommodation Services plc), (through their nominee Innisfree Nominees Limited), provided administrative and technical services at a cost of £146,059 (2023: £139,219). Imagile Professional Services Limited, a company related to Semperian Joint Ventures Limited (formerly G4S Joint Ventures Limited), provided administrative and technical services at a cost of £728,000 (2023: £566,000). Capitec Limited, a company related to Semperian Joint Ventures Limited, provided administrative and technical services at a cost of £26,893 (2023: £28,112). At the year end there was £nil (2023: £nil) payable to Semperian Joint Ventures Limited (formerly G4S Joint Ventures Limited), £nil (2023: £nil) payable to Innisfree Limited, £74,143 (2023: £60,053) payable to Imagile Professional Services Limited and £2,436 (2023: £nil) payable to Capitec 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. ## 24.             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. EndDateForPeriodCoveredByReport StartDateForPeriodCoveredByReport EntityDormantTruefalse EntityNoLongerTradingButTradedInPast UKCompaniesHouseRegisteredNumber PY\_S2023-01-01 CY\_S2024-01-01 PPY2022-12-31 PY2023-12-31 CY2024-12-31 Company03824397 The company is a wholly owned subsidiary of (which is the largest and smallest group to consolidated these financial statements), 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. 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: . 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 . The company is a wholly owned subsidiary of Accommodation Services (Holdings) Limited (which is the largest and smallest group to consolidated these financial statements), 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 . 1 1 1 •              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 23. 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. LegalForm – Scope Accounts – Accounting Standards  – Audited - AccountsType – Principal Currency – List Subsidiaries  - Yes Strategic Report - Going Concern - Directors Report Consistent - UltimateControllingParty – Yes