Company registration number 08316332 (England and Wales)
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr L M Jones
Mr A B Robb
Mrs L Robb
Company number
08316332
Registered office
Unit 3a
Parc Pontypandy
Caerphilly
Mid Glamorgan
United Kingdom
CF83 3GX
Auditor
Azets Audit Services
Ty Derw, Lime Tree Court
Cardiff Gate Business Park
Cardiff
United Kingdom
CF23 8AB
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
15
Company statement of cash flows
14
Notes to the financial statements
16 - 31
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

FAIR REVIEW OF THE BUSINESS DEVELOPMENT AND PERFORMANCE

Market conditions across the UK remained indifferent as all business units are now fully operational following the tough period due to the Covid 19 pandemic.

 

This was largely due too different government policies in the devolved administrations and the effects of the PAS 2035 regime now been operational particularly in England and also parts of Wales.

 

Our Scotland business continued to be the strongest performing unit which helped our business in England and Wales gain traction. We have seen some very large long-term contracts secured and started with clients such as Bristol City Council, Hafod Housing Association and Cornwall council, however this was caveated with challenging contracts where prices had been kept from pre-covid times which had a negative impact on the total Gross Profit of £1.4 m compared to the previous year of £2.33.

 

Turnover however increased to £18 m compared to the previous year of £16.9m.

 

However the labour market continues to be very challenging in certain areas of the UK, particularly on schemes where different finishes and types of materials are specified. This element of the labour market is witnessing high rises in costs. Brexit has impacted heavily on the use of EU based labour and the UK immigration sponsorship route is notoriously difficult, however we have been successful in gaining accreditation.

 

The future of the industry remains very strong ,  different funding initiatives are available and SERS have a very strong UK brand . We operate across different initiatives including the Social Housing Decarbonisation Fund, The building Safety fund for high rise remediation works, ECO 4 Funding , Optimising Retrofit in Wales and Heep Abs in Scotland.

Key performance indicators

The company considers the following to be its key performance indicators.

KPI’s

2022

2021

Turnover

£18,060k

£16,951k

Gross Margin

22.3%

26.9%

Operating profit

£1,416k

£2,336k

Cash at bank and in hand

£5,490k

£5,789k

Working Capital Ratio

1.69

2.04

Other performance indicators

Despite the effects of the pandemic SERS financial position remains strong and remain at the forefront of its sector.

 

Opportunities within all parts of the business remain strong due to the focus on Insulation and the need to Decarbonise housing in Britain. The High Rise Recladding schemes are commencing and SERS have secured significant contracts in this area with other opportunities in the pipeline.

 

Economic Update

 

However the market remains challenging due to the impact of Covid 19 and Brexit with difficulties in labour availability, delays in material supplies and rising prices.

SERS ENERGY SOLUTIONS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

On behalf of the board

Mr L M Jones
Director
29 September 2023
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company and group continued to be that of the installation of external wall insulation to properties across the UK.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £1,450,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr L M Jones
Mr A B Robb
Mrs L Robb
Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the group will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr L M Jones
Director
29 September 2023
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SERS ENERGY SOLUTIONS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SERS ENERGY SOLUTIONS HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of SERS Energy Solutions Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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).

In our opinion the financial statements:

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 are independent of the group and parent 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, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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.

 

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 group's and parent 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

SERS ENERGY SOLUTIONS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SERS ENERGY SOLUTIONS HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. 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:

 

Responsibilities of directors

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 parent 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 parent 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

SERS ENERGY SOLUTIONS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SERS ENERGY SOLUTIONS HOLDINGS LIMITED
- 7 -

Extent to which the audit was considered 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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Craig Yearsley FCCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
29 September 2023
Chartered Accountants
Statutory Auditor
Ty Derw, Lime Tree Court
Cardiff Gate Business Park
Cardiff
United Kingdom
CF23 8AB
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
2022
2021
Notes
£
£
Turnover
3
18,059,939
16,951,445
Cost of sales
(14,038,367)
(12,400,816)
Gross profit
4,021,572
4,550,629
Administrative expenses
(2,665,541)
(2,477,149)
Other operating income
60,097
263,452
Operating profit
4
1,416,128
2,336,932
Interest receivable and similar income
8
7,498
413
Interest payable and similar expenses
9
(19,291)
(16,310)
Profit before taxation
1,404,335
2,321,035
Tax on profit
10
(157,853)
(552,183)
Profit for the financial year
1,246,482
1,768,852
Profit for the financial year is attributable to:
- Owners of the parent company
827,977
1,128,209
- Non-controlling interests
418,505
640,643
1,246,482
1,768,852
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
2022
2021
£
£
Profit for the year
1,246,482
1,768,852
Other comprehensive income
-
-
Total comprehensive income for the year
1,246,482
1,768,852
Total comprehensive income for the year is attributable to:
- Owners of the parent company
827,977
1,128,209
- Non-controlling interests
418,505
640,643
1,246,482
1,768,852
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 10 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
12
681,147
562,660
Current assets
Stocks
15
54,382
54,382
Debtors
16
3,492,295
3,509,088
Cash at bank and in hand
5,489,945
5,788,837
9,036,622
9,352,307
Creditors: amounts falling due within one year
17
(5,357,557)
(4,587,753)
Net current assets
3,679,065
4,764,554
Total assets less current liabilities
4,360,212
5,327,214
Creditors: amounts falling due after more than one year
18
(453,426)
(311,828)
Provisions for liabilities
Deferred tax liability
21
10,759
15,841
(10,759)
(15,841)
Net assets
3,896,027
4,999,545
Capital and reserves
Called up share capital
23
191
191
Share premium account
2,439,822
2,439,822
Profit and loss reserves
919,021
1,541,044
Equity attributable to owners of the parent company
3,359,034
3,981,057
Non-controlling interests
536,993
1,018,488
3,896,027
4,999,545
The financial statements were approved by the board of directors and authorised for issue on 29 September 2023 and are signed on its behalf by:
29 September 2023
Mr L M Jones
Director
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 11 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investments
13
2,487,482
2,487,482
Current assets
Debtors
16
329,880
352,151
Cash at bank and in hand
659,448
3,453
989,328
355,604
Creditors: amounts falling due within one year
17
(37,836)
(48,700)
Net current assets
951,492
306,904
Net assets
3,438,974
2,794,386
Capital and reserves
Called up share capital
23
191
191
Share premium account
2,439,822
2,439,822
Profit and loss reserves
998,961
354,373
Total equity
3,438,974
2,794,386

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,094,588 (2021 - £696,745 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 29 September 2023 and are signed on its behalf by:
29 September 2023
Mr L M Jones
Director
Company Registration No. 08316332
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2021
160
2,439,822
304,463
2,744,445
1,186,217
3,930,662
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
1,128,209
1,128,209
640,643
1,768,852
Issue of share capital
23
31
-
0
-
31
-
31
Dividends
11
-
-
(400,000)
(400,000)
(300,000)
(700,000)
Other movements
-
-
508,372
508,372
(508,372)
-
Balance at 31 December 2021
191
2,439,822
1,541,044
3,981,057
1,018,488
4,999,545
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
827,977
827,977
418,505
1,246,482
Dividends
11
-
-
(1,450,000)
(1,450,000)
(900,000)
(2,350,000)
Balance at 31 December 2022
191
2,439,822
919,021
3,359,034
536,993
3,896,027
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2021
160
2,439,822
57,628
2,497,610
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
696,745
696,745
Issue of share capital
23
31
-
0
-
31
Dividends
11
-
-
(400,000)
(400,000)
Balance at 31 December 2021
191
2,439,822
354,373
2,794,386
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
2,094,588
2,094,588
Dividends
11
-
-
(1,450,000)
(1,450,000)
Balance at 31 December 2022
191
2,439,822
998,961
3,438,974
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
9,734
(249,988)
Investing activities
Proceeds on disposal of subsidiaries
-
0
(47,500)
Receipts arising from loans made
(4,729)
-
0
Interest received
990
2
Dividends received
2,100,000
700,000
Net cash generated from investing activities
2,096,261
652,502
Financing activities
Proceeds from issue of shares
-
31
Dividends paid to equity shareholders
(1,450,000)
(400,000)
Net cash used in financing activities
(1,450,000)
(399,969)
Net increase in cash and cash equivalents
655,995
2,545
Cash and cash equivalents at beginning of year
3,453
908
Cash and cash equivalents at end of year
659,448
3,453
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
2,681,965
3,308,065
Interest paid
(19,291)
(16,310)
Income taxes paid
(542,586)
(330,392)
Net cash inflow from operating activities
2,120,088
2,961,363
Investing activities
Purchase of tangible fixed assets
(240,745)
(67,059)
Proceeds on disposal of tangible fixed assets
6,809
19,163
Receipts arising from loans made
(4,729)
-
Interest received
7,498
413
Net cash used in investing activities
(231,167)
(47,483)
Financing activities
Proceeds from issue of shares
-
31
Payment of finance leases obligations
154,687
(57,980)
Dividends paid to equity shareholders
(1,442,500)
(355,000)
Dividends paid to non-controlling interests
(900,000)
(300,000)
Net cash used in financing activities
(2,187,813)
(712,949)
Net (decrease)/increase in cash and cash equivalents
(298,892)
2,200,931
Cash and cash equivalents at beginning of year
5,788,837
3,587,906
Cash and cash equivalents at end of year
5,489,945
5,788,837
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
1
Accounting policies
Company information

SERS Energy Solutions Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 3a, Parc Pontypandy, Caerphilly, Mid Glamorgan, United Kingdom, CF83 3GX.

 

The group consists of SERS Energy Solutions Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company SERS Energy Solutions Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

SERS ENERGY SOLUTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 17 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Long term contract balances are assessed on a contract by contract basis and are reflected in the profit and loss account as contract activity progresses. Any expected losses on long term contact balances are recognised immediately and are written off to the profit and loss account. Where it is considered that the outcome of a long term contract can be assessed with reasonable certainty before its conclusion, the prudently calculated attributable profit is recognised in the profit and loss account as the difference between reported turnover and related costs for that contract.

On short term contracts turnover and profits are recognised when invoices are raised for certified work undertaken.

The amount by which recorded turnover is in excess of payments on account is classified as "amounts recoverable on long-term contracts" and separately disclosed within debtors. Where progress payments are in excess of recognised turnover, the excess is included in creditors as "payments received on account".

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
4% on cost
Plant and equipment
25% on cost
Fixtures and fittings
25% reducing balance / 33% on cost
Computers
33% on cost
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

SERS ENERGY SOLUTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 18 -
1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

SERS ENERGY SOLUTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

SERS ENERGY SOLUTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 20 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

SERS ENERGY SOLUTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 21 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

SERS ENERGY SOLUTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 22 -
1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Depreciation of fixed assets

The estimates and underlying assumptions applied to determine depreciation are reviewed on an on-going basis. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant.

Long term contract accounting

The estimates and associated assumptions used to determine contract provisions are based on knowledge of individual contracts and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed continuously.

3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
18,059,939
16,951,445
2022
2021
£
£
Other revenue
Interest income
7,498
413
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
4
Operating profit
2022
2021
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
57,080
56,234
Depreciation of tangible fixed assets held under finance leases
60,149
45,639
Profit on disposal of tangible fixed assets
(1,780)
(8,009)
Operating lease charges
30,842
25,246
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
756
2,034
Audit of the financial statements of the company's subsidiaries
28,351
17,055
29,107
19,089
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
184,297
64,956
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
62
63
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
2,582,051
2,581,292
-
0
-
0
Social security costs
123,480
115,162
-
0
-
0
Pension costs
26,135
26,694
-
0
-
0
2,731,666
2,723,148
-
0
-
0
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
8
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
7,498
413

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
7,498
413
9
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
43
588
Dividends on redeemable preference shares not classified as equity
7,500
7,500
7,543
8,088
Other finance costs:
Interest on finance leases and hire purchase contracts
11,748
8,222
Total finance costs
19,291
16,310
10
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
243,730
536,342
Adjustments in respect of prior periods
(80,795)
-
0
Total current tax
162,935
536,342
Deferred tax
Origination and reversal of timing differences
(5,082)
15,841
Total tax charge
157,853
552,183
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
10
Taxation
(Continued)
- 25 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Profit before taxation
1,404,335
2,321,035
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
266,824
440,997
Tax effect of expenses that are not deductible in determining taxable profit
26,269
6,211
Tax effect of income not taxable in determining taxable profit
-
0
(30,085)
Effect of change in corporation tax rate
(14,993)
(163,544)
Under/(over) provided in prior years
80,795
-
0
Deferred tax not recognised
(201,129)
298,787
Enhanced capital allowances
87
(196)
Transition adjustments
-
13
Taxation charge
157,853
552,183
11
Dividends
2022
2021
Recognised as distributions to equity holders:
£
£
Final paid
1,450,000
400,000
Preference dividends in arrears total £0 (2021 - £0)
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 26 -
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2022
331,210
276,632
316,615
41,270
429,111
1,394,838
Additions
-
0
2,500
(20,203)
26,259
232,189
240,745
Disposals
-
0
-
0
-
0
-
0
(5,473)
(5,473)
At 31 December 2022
331,210
279,132
296,412
67,529
655,827
1,630,110
Depreciation and impairment
At 1 January 2022
50,572
228,002
272,695
30,943
249,966
832,178
Depreciation charged in the year
10,699
14,517
6,006
12,848
73,159
117,229
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(444)
(444)
At 31 December 2022
61,271
242,519
278,701
43,791
322,681
948,963
Carrying amount
At 31 December 2022
269,939
36,613
17,711
23,738
333,146
681,147
At 31 December 2021
280,638
48,630
43,920
10,327
179,145
562,660
The company had no tangible fixed assets at 31 December 2022 or 31 December 2021.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2022
2021
2022
2021
£
£
£
£
Motor vehicles
296,883
141,716
-
0
-
0
13
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
2,487,482
2,487,482
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
13
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2022 and 31 December 2022
2,487,482
Carrying amount
At 31 December 2022
2,487,482
At 31 December 2021
2,487,482
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
SERS (Solar & Renewable Technologies) Holdings Limited
UK
Ordinary
0
100.00
SERS (Solar & Renewable Technologies) Wales Limited
UK
Ordinary
0
70.00
SERS Energy Solutions (Scotland) Limited
UK
Ordinary
70.00
-
SERS Energy Solutions Group Limited
UK
Ordinary
100.00
-
SERS Energy Solutions Limited
UK
Ordinary
0
100.00

On 5th October 2021, SERS Energy Solutions Holdings Limited obtained 100% ownership of SERS Energy Solutions Group Limited by way of share for share exchange.

 

On 5th October 2021, SERS Energy Solutions Holdings Limited obtained 70 ordinary shares of £1.00 each in SERS Energy Solutions (Scotland) Limited by way of transfer from SERS Energy Solutions Group Limited.

The investments in associates are all stated at cost.

15
Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Raw materials and consumables
54,382
54,382
-
0
-
0
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 28 -
16
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,910,305
3,066,539
-
0
-
0
Corporation tax recoverable
5,000
5,000
-
0
-
0
Amounts owed by group undertakings
-
-
300,120
352,120
Other debtors
334,251
162,862
29,760
31
Prepayments and accrued income
242,739
274,687
-
0
-
0
3,492,295
3,509,088
329,880
352,151
17
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Obligations under finance leases
20
75,142
48,712
-
0
-
0
Trade creditors
3,660,366
3,105,725
336
1,200
Amounts owed to group undertakings
-
0
-
0
37,500
47,500
Corporation tax payable
87,895
467,546
-
0
-
0
Other taxation and social security
205,417
298,449
-
-
Dividends payable
52,500
45,000
-
0
-
0
Other creditors
933,245
166,100
-
0
-
0
Accruals and deferred income
342,992
456,221
-
0
-
0
5,357,557
4,587,753
37,836
48,700

Included within other creditors are Directors Loan Balances of £130,139. The balances are not secured against any assets of the company and are non-interest bearing.

18
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Obligations under finance leases
20
190,085
61,828
-
0
-
0
Other borrowings
19
250,000
250,000
-
0
-
0
Other creditors
13,341
-
0
-
0
-
0
453,426
311,828
-
-

Included within other creditors is £250,000 relating to irredeemable preferences shares. The preference shares have a contractual obligation to pay a 3% fixed cumulative dividend in relation to the holding.

SERS ENERGY SOLUTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 29 -
19
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Preference shares
250,000
250,000
-
0
-
0
Payable after one year
250,000
250,000
-
0
-
0
20
Finance lease obligations
Group
Company
2022
2021
2022
2021
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
75,142
48,712
-
0
-
0
In two to five years
190,085
61,828
-
0
-
0
265,227
110,540
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2022
2021
Group
£
£
Accelerated capital allowances
10,759
15,841
The company has no deferred tax assets or liabilities.
Group
Company
2022
2022
Movements in the year:
£
£
Liability at 1 January 2022
15,841
-
Credit to profit or loss
(5,082)
-
Liability at 31 December 2022
10,759
-
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
21
Deferred taxation
(Continued)
- 30 -

The deferred tax liability set out above is expected to reverse in line with the appropriate depreciation policy and relates to accelerated capital allowances that are expected to mature within the same period.

22
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
26,135
26,694

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
191
191
191
191

On 5th October 2021 the company issued 31 ordinary shares each with a nominal value of £1 per share for total consideration of £31.

24
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2022
2021
2022
2021
£
£
£
£
Group
Other related parties
470,036
312,897
1,472,458
1,252,127

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2022
2021
£
£
Group
Other related parties
710,565
308,116
SERS ENERGY SOLUTIONS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
24
Related party transactions
(Continued)
- 31 -

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2022
2021
Balance
Balance
£
£
Group
Other related parties
33,314
10,735
25
Cash generated from group operations
2022
2021
£
£
Profit for the year after tax
1,246,482
1,768,852
Adjustments for:
Taxation charged
157,853
552,183
Finance costs
19,291
16,310
Investment income
(7,498)
(413)
Gain on disposal of tangible fixed assets
(1,780)
(8,009)
Depreciation and impairment of tangible fixed assets
117,229
101,873
Movements in working capital:
Increase in stocks
-
(32,802)
Decrease in debtors
21,522
1,197,554
Increase/(decrease) in creditors
1,128,866
(198,783)
Decrease in deferred income
-
(88,700)
Cash generated from operations
2,681,965
3,308,065
26
Analysis of changes in net funds - group
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
5,788,837
(298,892)
5,489,945
Borrowings excluding overdrafts
(250,000)
-
(250,000)
Obligations under finance leases
(110,540)
(154,687)
(265,227)
5,428,297
(453,579)
4,974,718
27
Analysis of changes in net funds - company
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
3,453
655,995
659,448
2022-12-312022-01-01falseCCH SoftwareCCH Accounts Production 2023.100Mr L M JonesMr A B RobbMrs L 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