Audited Financial Statements for the Year Ended 31 December 2025
Contents of the Financial Statements for the Year Ended 31 December 2025
Page
Directors' Report4
Independent Auditors' Report8
Statement of Comprehensive Income16
Statement of Financial Position17
Statement of Changes in Equity18
Notes to the Financial Statements19
for the Year Ended 31 December 2025
The directors present their Strategic report on Integrated Accommodation Services plc (the company) for the year ended 31 December 2025.
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 2025 was 3.41%.
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 20 and 21 respectively to the financial statements.
The profit for the year under review as set out in the statement of comprehensive income on page 14 relates to activities undertaken in respect of the project.
The financial position remains strong with net current assets of £190,195k and net assets of £74,158k; 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.
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.
for the Year Ended 31 December 2025
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.
for the Year Ended 31 December 2025
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.
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.
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.
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B C J Dean - DirectorD Hardingham - Director
23 April 2026
Date:.2...3...A...p..r..i.l..2..0...2..6.....................Date:.............................................
The directors present their report with the financial statements of the company for the year ended 31 December 2025.
Dividends of £
The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.
Mrs
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. There are no post balance sheet events.
The directors continue to develop the business in line with the contract and there are no issues expected.
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 company has an Audit Committee, comprising of an independent chairman (non-executive director) and one further non-executive director, who are assessed to have the relevant competence in accounting. The Audit Committee is responsible for satisfying itself that the financial affairs of the company are conducted with openness, integrity and accountability, and in accordance with statutory and regulatory requirements. The primary duties of the Audit Committee are to:
- monitor the integrity of the financial statements of the company and to review significant judgements contained therein;
- monitor the level and effectiveness of internal financial controls;
- assess the scope and effectiveness of systems to identify, assess, manage, and monitor financial and non-financial risk;
- review and monitor the independence of the statutory auditor and the provision of additional services by the auditor to the company
The company has outsourced the financial reporting function to G4S Facilities Management (UK) Limited ("G4S"). Authority remains vested in the board members of the company. G4S reports regularly to the board of the company. The board received quarterly reports from G4S which specifically summarise and address the financial, contractual and commercial risks that the company is exposed to, and are pertinent to the industry in which the company operates. The board also receives quarterly management accounts with explanations of variances from annual budgets and forecasts, which are in turn compared to the Financial Model, which represents the long term business plan of the company and outlines its ability to comply with its debt obligations and covenants. Material deviations from the business plan are investigated and reported on. Supporting this process, G4S evaluates its performance under its own Corporate Governance framework. This process ensures that the project remains robust and viable throughout the life of the contact.
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.
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 18 of these financial statements.
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.
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.
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.
The auditors, BDO LLP, will have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
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B C J Dean
Date:......2...3...A...p..r..i.l..2..0...2..6................
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D Hardingham
Date:.......2..3...A..p..r.i.l..2..0..2..6...................
Opinion
In our opinion the financial statements:
• give a true and fair view of the state of the Company’s affairs as at 31 December 2025 and of the Company’s 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 2025 which comprise of the following:
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Statement of Comprehensive Income |
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Statement of Financial Position |
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Statement of Changes in Equity |
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Notes 1 - 22 to the financial statements |
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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).
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.
Independence
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 the FRC’s Ethical Standard were not provided to the Company and we remain independent of the Company in conducting our audit.
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 certain 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, after which headroom exists. 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 contract debtor by looking at the continued settlement of unitary charge invoices subsequent to year end. We evaluated the achievability of the actions the Directors consider they would take to improve the position should risks materialise. This evaluation considered the potential impact of the current economic conditions on contract performance, subcontractor performance and compliance with borrowing covenants; and
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. However, because not all future events or conditions can be predicted, this statement 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.
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Key audit matters |
20252024
Financial model in relation to revenue Yes Yes recognition Lifecycle costsNo * Yes Revenue recognition – serviceNo * Yes revenue
* in the prior year, separate key audit matters were included in respect of these items. In the current year, these were consolidated in the single key audit matter shown due to the inter-related nature of the key audit matters. |
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Materiality |
Company financial statements as a whole
£2,300,000 (2024: £2,618,000) based on 1% (2024: 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, the applicable financial reporting framework and the Company’s system of internal control. We then applied professional judgement to focus our audit procedures on the areas that posed the greatest risks to the financial statements. We continually assessed risks throughout our audit, revising the risks where necessary, with the aim of reducing the risk of material misstatement to an acceptable level, in order to provide a basis for our opinion.
How Climate change affected the scope of our audit
The Company has determined that climate change does not currently have a material impact on its operations.
The management disclosures on page 6 form part of the directors’ report. Our responsibilities in relation to these disclosures are described in the relevant section of this report and our procedures on these disclosures therefore consisted solely of considering whether they are materially inconsistent with the financial statements or our knowledge obtained from the audit or otherwise appear to be materially misstated.
Key audit matters
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Key audit matter |
How the scope of our audit responded to the risk |
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Model risk – Revenue Note 3.5 Turnover |
The Company is in a service concession arrangement with the Secretary of State for Foreign, Commonwealth and Development Affairs. |
Our audit work included the following:
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Note 3.12 Contract Debtor
Note 4(b)(i) Key Accounting Estimates and Assumptions |
Turnover in the year of £80,108,000 (2024 - £80,081,000) consists of unitary charge income, offset by finance contract debtor amortisation, interest and other allocations.
Accounting for the service concession contract and finance contract debtor requires an allocation of unitary charge income based on estimation of service revenue, finance contract debtor interest and the associated amortisation profile, which is based on forecast results of the contract as assessed within the Finance Model (the Model). Given the level of estimation and judgement involved related to the key assumptions in the model, in particular the future lifecycle cost profile, we therefore consider this to be a significant risk of material misstatement due to fraud or error and a key audit matter. |
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evidence of contractual performance issues. Where issues were identified, we challenged |
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management on the completeness of forecasted costs to rectify the issues in the Model;
Key observations Based on the work performed we consider that the inputs and outputs to the financial model were appropriate and that management’s key estimates in respect of lifecycle costs are reasonable. |
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:
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Company financial statements |
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2025 £ |
2024 £ |
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Materiality |
£2,300,000 |
£2,618,000 |
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Basis for determining materiality |
1% of Total assets |
1% of Total assets |
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Rationale for the benchmark applied |
Given the principal activities of the Company, our judgement was that the users of the financial statements would be most concerned with the gross assets as the primary performance measure used by investors and is the key driver of shareholder value and ability to service the debt of the Company. We therefore considered the Company to be asset driven and that total assets to be the most appropriate basis for determining materiality. |
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Performance materiality |
£1,725,000 |
£1,701,000 |
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Basis for determining performance materiality |
75 % of Materiality |
65 % of Materiality |
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Rationale for the percentage applied to performance materiality |
The level of performance materiality applied was set after having considered a number of factors including expected level of likely misstatements based on past experience and management’s attitude towards proposed adjustments. |
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Specific materiality
We determined that for Cost of Operations 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 specific materiality for those items impacting Cost of Operations and Administrative Expenses of £1,100,000 (2024:
£1,120,000) based on 1.75% of these total costs (2024: 1.75% of total costs).
Reporting threshold
We agreed with the Board that we would report to them all individual audit differences in excess of £115,000 (2024:
£49,400) and for those items impacting Cost of Sales and Administrative Expenses £55,000 (2024: £52,000). We also agreed to report differences below these thresholds that, in our view, warranted reporting on qualitative grounds.
The Directors are responsible for the other information. The other information comprises the information included in the Strategic Report, Directors' Report and Audited Financial Statements 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.
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.
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Strategic report and Directors’ report |
In our opinion, based on the work undertaken in the course of the audit:
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. |
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Matters on which we are required to report by 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:
made; or
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As explained more fully in the Directors’ Responsibilities statement, 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.
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.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the Company and management.
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 the applicable accounting framework, corporation tax, VAT legislation and the Companies Act 2006.
Our procedures in respect of the above included:
Enquires of management whether there were any litigations and claims;
Review of minutes of meetings of those charged with governance for any instances of non-compliance with laws and regulations; and
Agreement of the financial statement disclosures to underlying supporting documentation.
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 regarding any known or suspected instances of fraud;
Obtaining an understanding of the Company’s policies and procedures relating to:
Review of minutes of meetings of those charged with governance for any known or suspected instances of fraud; and
Discussion among 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 override of controls, management’s bias in accounting estimates in relation to lifecycle costs forecasted in the financial model of the counterparty; accurate recognition of service revenue.
Our procedures in respect of the above included:
Testing a sample of journal entries throughout the year, which met 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 calculation of service 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. This description forms part of our auditor’s report.
We were appointed by the shareholders at the Annual General Meeting on 25 April 2025 to audit the financial statements for the period ended 31 December 2025.
Our total uninterrupted period of engagement is 2 years, covering the periods ended 31 December 2024 to 31 December 2025.
Our audit opinion is consistent with the additional report to the audit committee.
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.
In due course, as required by the Financial Conduct Authority Disclosure Guidance and Transparency Rule 4.1.15R - 4.1.18R, these financial statements will form part of the Electronic Format Annual Financial Report filed on the National Storage Mechanism of the FCA in accordance with DTR 4.1.15R – DTR 4.1.18R. This auditor’s report provides no assurance over whether the Electronic Format Annual Financial Report has been prepared in compliance with DTR 4.1.15R – DTR 4.1.18R.
For and on behalf of BDO LLP, Statutory Auditor
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
Statement of Comprehensive Income for the Year Ended 31 December 2025
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2025 |
2024 |
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Notes |
£'000 |
£'000 |
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Turnover |
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Cost of operations |
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( |
( |
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Gross profit |
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Administrative expenses |
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( |
( |
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Operating profit |
5 |
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Interest receivable and similar income |
6 |
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31,016 |
32,814 |
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Interest payable and similar expenses |
7 |
( |
( |
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Profit before taxation |
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Tax on profit |
8 |
( |
( |
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Profit for the financial year |
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Other comprehensive income |
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- |
- |
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Total comprehensive income for the year |
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Integrated Accommodation Services Plc (Registered number: 03824397)
Statement of Financial Position
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2025 |
2024 |
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Notes |
£'000 |
£'000 |
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Current assets |
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Debtors: amounts falling due within one year 10 Debtors: amounts falling due after more than |
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one year10 |
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Investments11 |
- |
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Cash at bank |
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Creditors Amounts falling due within one year12 |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors |
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Amounts falling due after more than one year 13 |
( |
( |
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Provisions for liabilities17 |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital18 |
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Retained earnings19 |
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Shareholders' funds |
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The financial statements were approved by
and were signed on its behalf by:
..........................................................................
B C J Dean
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D R Hardingham
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Called up share capital |
Retained earnings |
Total equity |
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£'000 |
£'000 |
£'000 |
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Balance at 1 January 2024 |
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Changes in equity Profit for the year |
- |
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Total comprehensive income |
- |
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Dividends |
- |
( |
( |
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Balance at 31 December 2024 |
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Changes in equity |
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Profit for the year |
- |
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Total comprehensive income |
- |
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Dividends |
- |
( |
( |
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Balance at 31 December 2025 |
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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
Basis of preparing the financial statements
A summary of the company's principal accounting policies, which have been consistently applied, is set out below.
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.
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 22. 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.
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 £48.7m basic income (2024: £46.2m) and variation income of £31.4m (2024
£33.8m)
Transactions amounting to £3.0m (2024: £3.3m) 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.
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.
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.
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.
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.
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.
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
• the requirements of Section 7 Statement of Cash Flows.
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.
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.
i.
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.
£146,059). The recharges paid by the company in 2025 and 2024 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 £
£
20252024
|
|
|
£'000 |
£'000 |
|
Deposit account interest |
|
|
|
|
Imputed interest on contract debtor |
|
|
|
|
|
|
|
|
Interest is imputed on the contract debtor using a property specific rate of 7.57% (2024: 7.57%).
|
7.Interest payable and similar expenses |
|
|
|
|
2025 |
2024 |
|
|
£'000 |
£'000 |
|
Interest Payable on Bonds |
|
|
|
Sub debt interest payable |
|
|
|
Amortisation of issue costs |
|
|
|
|
|
|
|
8.Taxation |
|
|
|
Analysis of the tax charge The tax charge on the profit for the year was as follows: |
|
|
|
|
2025 |
2024 |
|
|
£'000 |
£'000 |
|
Current tax: |
|
|
|
UK corporation tax |
|
|
|
Deferred tax: |
|
|
|
Origination and reversal of |
|
|
|
timing differences |
( |
|
|
Tax on profit |
|
|
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 |
2025 £'000
|
|
2024 £'000
|
|
Profit multiplied by the standard rate of corporation tax in the UK of |
|
|
|
|
Effects of: Amortisation of non-qualifying expenditure |
|
|
|
|
on timing differences carried on losses carried forward |
|
|
|
|
Total tax charge |
|
|
|
|
Factors that may affect future tax charges |
|
|
|
|
9.Dividends |
|
||
|
Dividend of £ |
2025 £'000 |
|
2024 £'000 |
|
reserves |
|
|
|
|
10.Debtors |
2025 |
|
2024 |
|
Amounts falling due within one year: |
£'000 |
|
£'000 |
|
Trade debtors Finance receivable on contract debtor |
|
|
|
|
Prepayments and accrued income |
|
|
|
|
|
|
|
|
|
Amounts falling due after more than one year: Finance receivable on contract debtor |
|
|
|
|
|
|
|
|
|
Aggregate amounts |
|
|
|
As described in the accounting policies, trade debtors are not considered to be impaired. Trade debtors include invoices amounting to £258,000 (2024: £473,000), 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 2025, trade debtors of £11,000 (2024:
£135,000) 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 £7,000 (2024: £64,000), 3-6 months overdue £3,000 (2024: £70,000) and over 6 months overdue £1,000 (2024: £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.
|
|
2025 |
2024 |
|
£'000 |
£'000 |
|
|
Counterparties with external credit rating |
|
|
|
Cash and term deposit accounts bank |
49,176 |
49,808 |
|
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 |
282 |
473 |
|
Accrued income |
11,124 |
10,917 |
|
Contract debtor |
169,408 |
200,406 |
|
Total neither past due nor impaired |
|
|
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 2025 was £15,527,000 (2024:
£39,035,000).
Current asset investments
£'000£'000
Bank deposits -
-
|
12. |
Creditors: amounts falling due within one year |
|
|
|
|
|
2025 |
2024 |
|
|
|
£'000 |
£'000 |
|
|
Trade creditors |
|
|
|
|
Corporation Tax Liability |
|
|
|
|
VAT |
|
|
|
|
6.48% Guaranteed Secured Bonds |
|
|
|
|
due 2029 |
25,769 |
25,364 |
|
|
Less: issue costs |
(152) |
(205) |
|
|
10.14% Mezzanine Secured Notes |
|
|
|
|
due 2028 |
1,833 |
1,658 |
|
|
Less: issue costs |
(4) |
(6) |
|
|
Accruals and deferred income |
|
|
|
|
|
|
|
Information relating to the nature of the Guaranteed Secured Bonds and Mezzanine Secured Notes is contained in note 14.
Accruals and deferred income includes £796,000 (2024 £796,000) of interest accrued on the subordinated loan notes due 2030.
|
13.Creditors: amounts falling due after more than one year |
2025 |
2024 |
|
|
£'000 |
£'000 |
|
Subordinated debt (see note 14) |
|
|
|
Bank loans (see note 14) |
|
|
|
|
|
|
|
14.Loans |
|
|
|
An analysis of the maturity of loans is given below: |
|
|
|
Amounts falling due between one and two years: |
2025 £'000 |
2024 £'000 |
|
6.48% Guaranteed Secured Bonds due 2029 |
23,248 |
25,769 |
|
Less: issue costs |
(101) |
(152) |
|
10.14% Mezzanine Secured Notes due 2028 |
2,026 |
1,833 |
|
Less: issue costs |
(2) |
(4) |
|
|
|
|
|
14. |
Loans - continued |
2025 |
2024 |
|
|
Amounts falling due between two and five years: |
£'000 |
£'000 |
|
|
14.00% Subordinated Loan Notes due 2030 |
22,548 |
- |
|
|
Less: issue costs 6.48% Guaranteed Secured Bonds due 2029 |
(19)
36,836 |
-
60,084 |
|
|
Less: issue costs 10.14% Mezzanine Secured Notes due 2028 |
(69)
1,092 |
(171)
3,119 |
|
|
Less: issue costs |
- |
(3) |
|
|
|
|
|
|
|
Amounts falling due in more than five years: |
|
|
|
|
Repayable by instalments 14.00% Subordinated Loan Notes due 2030 |
- |
22,548 |
|
|
Less: issue costs |
- |
(34) |
|
|
|
- |
|
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 2025, £85,853,000 (2024: £111,217,000) 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 2025, £4,951,000 (2024: £6,609,000) remains outstanding.
Subordinated Loan Notes due 2030 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 £328,000 (2024: £575,000) 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.
The company has entered into an operating lease and has an annual commitment under leases for land and buildings of £
The company funds its operations through finance raised by the issue of fixed rate bonds and loan notes. At 31 December 2025, 0 percent (2024: 16.1 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's bankers.
|
Financial assets at amortised cost
The company held the following categories of sterling financial assets Sterling monetary assets |
2025 £'000 |
2024 £'000 |
|
Cash at bank |
|
|
|
Bank deposits |
- |
|
|
|
|
|
|
Trade debtors |
|
|
|
Accrued income |
|
|
|
Contract debtor |
|
|
|
Total financial assets |
|
|
Bank deposits relate to short term deposits held for not more than three 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
£49,176,000 (2024: £49,808,000).
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.
Maturity analysis of financial instruments held to finance Integrated Accommodation Services plc operations:
|
Bond liabilities Maturity of financial liabilities (before issue costs) |
2025 Amount £'000 |
Weighted average interest rate |
Weighted average period for which rate is fixed |
|
In less than one year |
|
6.53% |
1 |
|
In more than one year but less than two years |
|
6.56% |
1 |
|
In more than two years but not more than five years |
|
11.12% |
3 |
|
In more than five years |
|
0% |
0 |
|
Total |
|
9.83% |
5 |
|
Bond liabilities Maturity of financial liabilities (before issue costs) |
2025 Amount £'000 |
Weighted average interest rate |
Weighted average period for which rate is fixed |
|
In less than one year |
|
6.59% |
1 |
|
In more than one year but less than two years |
|
6.53% |
1 |
|
In more than two years but not more than five years |
|
6.78% |
3 |
|
In more than five years |
|
14.00% |
1 |
|
Total |
|
8.91% |
6 |
|
Financial liabilities at amortised cost The company held the following categories of financial liabilities |
2025 £'000 |
2024 £'000 |
|
Trade creditors |
|
|
|
Accruals |
|
|
|
6.48% Guaranteed Secured Bonds due 2029 |
85,853 |
111,217 |
|
10.14% Mezzanine Secured Notes due 2028 |
4,951 |
6,609 |
|
14.00% Subordinated Loan Notes due 2030 |
22,548 |
22,548 |
|
Total financial liabilities |
|
|
Full descriptions of the bonds are given in note 14. Credit margins on long term bonds (both guaranteed and secured notes) vary in accordance with market demand and other factors.
Deferred tax
£'000£'000
Accelerated capital allowances
Other timing differences
|
Balance at 1 January 2025 |
£'000
|
|
Provided during year |
( |
|
Balance at 31 December 2025 |
|
18. Called up share capital
Allotted and fully paid
20242023
£'000£'000
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.
Retained earnings
£'000
At 1 January 2025
Profit for the year
Dividends(
At 31 December 2025
Under the terms of an operating agreement with G4S Facilities Management (UK) 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 2025 were £30,419,000 (2024: £29,737,000). 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 £5,179,000 (2024: £5,550,000).
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
£626,000 (2024: £592,000).
Under the terms of a consultancy services agreement with Semperian Technical Management Limited (formerly 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 2025 were £1,070,000 (2024: £728,000).
At the year end there was £4,174,586 (2024: £4,363,122) payable to G4S Facilities Management Limited, and
£151,429 (2024: £74,143) payable to Semperian Technical Management Limited.
£
At the year end there was £nil (2024: £nil) payable to Semperian Joint Ventures Limited (formerly G4S Joint Ventures Limited), £nil (2024: £nil) payable to Innisfree 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.
The company is a wholly owned subsidiary of