Registered Number 07320317
Asset Plus Energy Performance Limited
Annual report and financial statements
for the period ended 30 September 2022
Asset Plus Energy Performance Limited
Annual report and financial statements for the period ended
30 September 2022
Contents
Page
Strategic report
1
Directors' report
3
Independent auditor's report to the members of Asset Plus Energy Performance Limited
6
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13
Asset Plus Energy Performance Limited
Strategic report
The directors present their Strategic report on the company, for the period ended 30 September 2022.
Principal activities of business
The principal activities of the company are provision of energy reduction and zero carbon generation measures. The directors do not anticipate any significant changes to the company's operations or main markets for the foreseeable future.
Business review
The results for the period are given in the Statement of comprehensive income on page 10. This shows the company's sales increased by £39.4 million to £51.5 million in the period ended 30 September 2022 (Year ended 30 June 2021: £12.1 million) and operating profit increased by £5.3 million to an operating profit of £6.9 million (Year ended 30 June 2021: operating profit of £1.7 million).
The Statement of financial position shows that the net assets of the company increased by £5.8 million in the period. At the period end, net assets were £6.6 million (Year ended 30 June 2021: £0.8 million).
Future developments
The directors are not aware, at the date of this report, of any likely major changes in the company's activities in the next year.
Principal risks and uncertainties
Any of the following could materially and adversely impact the results of operations of our business, delays or difficulties in new product development; the introduction of similar or superior technologies; financial instability or market declines of our major customers or component suppliers; a significant decline in the construction of new commercial buildings requiring interior control systems; changes in energy costs or governmental regulations that would decrease the incentive for customers to update or improve their interior control systems and increased energy efficiency legislation requirements. All of these are mitigated through regular review by the directors.
The company requires risk management and operational policies and procedures to be implemented in all areas of the business. Furthermore, there is a robust supervision structure which allows management to account for the delivery of the company's contracts and to oversee relationships with its key stakeholders.
The directors consider cybersecurity threats and incidents range from individual attempts to gain unauthorised access to IT systems to advanced persistent threats, directed at the company, our products, customers and/or third party service providers. The potential consequences of a material cybersecurity incident include financial loss, reputational damage, litigation with third parties, theft of intellectual property, fines levied by the authority and increased protection and remediation costs. This could adversely affect competitiveness and results of operations of the business.
The company deploys measures to deter, prevent, detect, respond to and mitigate these threats, including identity and access controls, data protection, product software designs, continuous monitoring of IT networks and systems and maintenance of backup and protective systems.
1
Asset Plus Energy Performance Limited
Strategic report (cont'd)
Principal risks and uncertainties (cont'd)
The business is directly impacted by the effects of climate change. The directors recognise that timely adoption of comprehensive energy and climate legislation will reduce economic and regulatory uncertainty and allow the company to better manage both risks and opportunities related to climate change. These uncertainties include emission reduction requirements, energy price volatility, energy-intensive materials pricing, and the impact of building efficiency codes, standards and incentives. The highest priority action put in place by the group as a whole is to improve energy efficiency in buildings which represent the fastest, cleanest and most cost-effective way to reduce greenhouse gas emissions. Our products and services involve promoting energy efficiency and fire and security in buildings; and helping our customers find ways to improve their energy consumption. This encourages consumer behaviour changes to better appreciate the benefits of such products and services. In addition, the company continues to support a variety of market-based approaches to regulating carbon emissions.
On behalf of the board
J Earnshaw
Director
Date: 19 October 2023
2
Asset Plus Energy Performance Limited
Directors' report
The directors present their report and the audited financial statements of the company for the period ended 30 September 2022.
Future developments
The future developments of the company are noted in the Strategic report.
Dividends
During the period the company paid a dividend of £300,000 (2021: nil).
Going concern
The directors have considered the financial position, cash flow and liquidity position of the company and have prepared the financial statements on a going concern basis. The directors have received confirmation that the appropriate entity within the Johnson Controls group intends to support the company for at least one year after the financial statements are signed. The directors are therefore of the opinion that preparing the financial statements on the going concern basis is appropriate. Further details regarding the adoption of the going concern basis can be found in the accounting policies note in the financial statements.
Financial risk management objectives and policies
The company's activities expose it to a number of financial risks including credit risk, cash flow risk, exchange rate risk, price risk and liquidity risk. The company does not use derivative financial instruments.
Credit risk
The company's principal financial assets are bank balances and cash, trade and other debtors. The company's credit risk is primarily attributable to its trade debtors. The amounts presented in the Statement of financial position are net of allowances for doubtful debts. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.
The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.
The company's policy is to use financial institutions authorised by Johnson Controls International plc who actively manage the global banking facilities. All cash held on deposit is pooled at a European level to mitigate risk.
Exchange rate risk
Potential exposure to currency exchange rate fluctuations is managed internally within the Group treasury function. The Group enter into forward exchange contracts on behalf of the company to the value of its future multi currency cash flows. Consequently, exchange rate risk is not significant.
Price risk
The directors recognise the price risk associated with the Building Technologies & Solutions business is subject to market forces and will impact the prices for product and project management services. To help minimise this risk, prices for large contracts are set on a contract by contract basis. Prices on multi-year contracts are reviewed on an annual basis where possible.
3
Asset Plus Energy Performance Limited
Directors' report (cont'd)
Financial risk management objectives and policies (cont'd)
Liquidity and interest rate risk
Cash balances held with external institutions form part of the Johnson Controls International plc group global cash pool arrangement which minimises any interest rate exposure. If funding is required, then this is achieved by either an internal loan from a Johnson Controls International plc group company or through cash pooling arrangements. As a result, interest rate risk is largely managed as there is no external funding requirement at year end.
All Group risk is closely managed by the corporate risk management team, which is controlled by the ultimate parent company Johnson Controls International plc.
Directors
The following directors served during the period and up to the date of signing this report, unless otherwise stated:
Ch Aldred (Resigned 3 May 2022)
P K Burnett (Resigned 3 May 2022)
K S Hick (Resigned 3 May 2022)
J C Paul (Resigned 3 May 2022)
M Ayre (Appointed 3 May 2022, resigned 18 August 2023)
J Earnshaw (Appointed 3 May 2022)
R Hilton-Jones (Appointed 3 May 2022, resigned 1 October 2022)
A Ellis (Appointed 3 May 2022, resigned 1 October 2022)
D Lloyd (Appointed 9 November 2022)
R Lek (Appointed 9 November 2022, resigned 1 March 2023)
Directors' indemnities
As permitted by the Articles of Association, the directors have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial period and is currently in force. The group also purchased and maintained throughout the financial period Directors' and Officers' liability insurance in respect of itself and its directors.
Statement of directors' responsibilities
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 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).
4
Asset Plus Energy Performance Limited
Directors' report (cont'd)
Statement of directors' responsibilities (cont'd)
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 year. In preparing these financial statements, the directors are required to:
•
select suitable accounting policies and then apply them consistently;
•
state whether applicable United Kingdom Accounting Standards, comprising FRS102 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 responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006.
Directors' confirmations
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.
Independent auditors
The auditors, TC Group, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the next Directors' Board Meeting.
On behalf of the Board
J Earnshaw
Director
Date: 19 October 2023
5
Asset Plus Energy Performance Limited
Independent auditor's report to the members of Asset Plus Energy Performance Limited
Opinion
We have audited the financial statements of Asset Plus Energy Performance Limited (the 'company') for the period ended 30 September 2022 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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 FRS 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:
*
give a true and fair view of the state of the company's affairs as at 30 September 2022 and of its profit for the period 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.
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 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
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.
6
Asset Plus Energy Performance Limited
Independent auditor's report to the members of Asset Plus Energy Performance Limited (cont'd)
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
*
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
*
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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 and the directors' report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
*
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
*
the financial statements are not in agreement with the accounting records and returns; or
*
certain disclosures of directors' remuneration specified by law are not made; or
*
we have not received all the information and explanations we require for our audit.
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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
7
Asset Plus Energy Performance Limited
Independent auditor's report to the members of Asset Plus Energy Performance Limited (cont'd)
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
Our approach was as follows:
*
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
*
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
*
We considered the nature of the industry, the control environment and business performance, including the key drivers for management's remuneration;
*
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
*
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
8
Asset Plus Energy Performance Limited
Independent auditor's report to the members of Asset Plus Energy Performance Limited (cont'd)
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.
James Blake FCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
Date: 19 October 2023
Office: Portsmouth
9
Asset Plus Energy Performance Limited
Statement of comprehensive income for the period ended 30 September 2022
Period ended 30 September 2022
Year ended June 2021
Note
£
£
Turnover
4
51,456,458
12,076,563
Cost of sales
(41,805,446)
(9,392,584)
Gross profit
9,641,012
2,683,979
Administrative expenses
(2,712,602)
(1,029,765)
Operating profit
5
6,938,411
1,654,214
Interest receivable and similar income
125
-
Interest payable and similar expenses
(3,108)
-
Profit before taxation
6,935,428
1,654,214
Tax charge on profit
6
(878,216)
(315,618)
Profit for the financial period
6,057,212
1,338,596
Other comprehensive income
-
-
Total comprehensive income for the period
6,057,212
1,338,596
All amounts relate to continuing operations.
10
Asset Plus Energy Performance Limited
Statement of financial position as at 30 September 2022
30 September 2022
30 June 2021
Note
£
£
Fixed assets
Tangible assets
8
6,622
7,493
6,622
7,493
Current assets
Debtors
9
27,585,988
10,482,876
Cash at bank and in hand
146,807
10,879,396
27,732,795
21,362,272
Creditors - amounts falling due within one year
10
(21,165,149)
(20,552,464)
Net current assets
6,567,646
809,808
Total assets less current liabilities
6,574,268
817,301
Provision for liabilities
(1,179)
(1,424)
Net assets
6,573,089
815,877
Capital and reserves
Called up share capital
11
1,000
1,000
Retained earnings
6,572,089
814,877
Total equity
6,573,089
815,877
The notes on pages 13 to 21 are an integral part of these financial statements.
The financial statements on pages 10 to 21 were approved by the Board of directors on
19 October 2023
19 October 2023
and were signed on its behalf by:
J Earnshaw
Director
Asset Plus Energy Performance Ltd
Registered Number 07320317
11
Asset Plus Energy Performance Limited
Statement of changes in equity for the period ended 30 September 2022
Called up share capital
Retained earnings
Total equity
£
£
£
Balance as at 1 June 2020
1,000
(523,719)
(522,719)
Profit for the financial year
—
1,338,596
1,338,596
Balance as at 30 June 2021
1,000
814,877
815,877
Dividend paid
—
(300,000)
(300,000)
Profit for the financial year
—
6,057,212
6,057,212
Balance as at 30 September 2022
1,000
6,572,089
6,573,089
Retained earnings represents accumulated comprehensive income for the current financial period and prior financial periods.
12
Asset Plus Energy Performance Limited
Notes to the financial statements for the period ended 30 September 2022
1 General information
Asset Plus Energy Performance Limited is a private company limited by shares, domiciled and incorporated in the United Kingdom under the Companies Act 2006. The address of its registered office is 9/10, The Briars, Waterberry Drive, Waterlooville, Hampshire, England, PO7 7YH. The company's' trading address is Abbey House, 282 Farnborough Road, Farnborough, England GU14 7NA.
The principal activities of the company are provision of energy reduction and zero carbon generation measures.
2 Statement of compliance
These financial statements have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (FRS 102) and in accordance with the Companies Act 2006.
3 Summary of significant accounting policies
The principal accounting policies, which have been applied in the preparation of these financial statements are set out below. These policies have been consistently applied to both the years/periods presented, unless otherwise stated. The company has applied FRS 102 in these financial statements.
Basis of preparation
These financial statements are prepared on the going concern basis, under the historical cost convention as modified by the recognition of certain financial assets and liabilities at fair value. If the company needs additional liquidity, the directors have received assurances from another group company that the company will be able to draw additional funding via the treasury centre that is operated.
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. There are no areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to these financial statements.
Reporting length period
The financial statements of the current period presents the 15 month period ended 30 September 2022. The financial statements of the prior period shows the 12 month period ended 30 June 2021 and consequently the comparative financial information is not directly comparable.
13
Asset Plus Energy Performance Limited
Notes to the financial statements for the period ended 30 September 2022 (cont'd)
3 Summary of significant accounting policies (cont'd)
Reduced disclosures
In accordance with FRS 102, the company has taken advantage of the exemptions from the following disclosure requirements on the basis that the information is provided in the consolidated financial statements of Johnson Controls International plc, which is registered in Cork Ireland. Johnson Controls International plc prepares consolidated financial statements which are publicly available and can be obtained from the address given in note 12.
Section 4 ‘Statement of Financial Position'
Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows'
Presentation of a Statement of Cash Flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments' & Section 12 ‘Other Financial Instrument Issues'
Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in the statement of comprehensive income;
Section 33 ‘Related Party Disclosures'
Paragraphs 33.7 and 33.1A, Disclosure of compensation for key management personnel and related party transaction.
Turnover
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts. The company recognizes revenue when:
The amount of revenue can be reliably measured,
It is probable, that future economic benefits will flow to the entity,
And specific criteria have been met of each of the company's activities.
Revenue is recognised as the provision of services is performed. Revenue from installation contracts is recognised proportionally to the state of completion of the individual contracts, measured on a cost incurred to total forecast cost basis. Revenue and profit on project variations are included in the calculation of the percentage of the total contract value completed once they have been agreed with the customer or whose recovery is considered probable.
Taxation
The tax charge represents the sum of the current tax charge and deferred tax charge.
Current tax
Current tax is the amount of income tax payable in respect of the taxable profits for the year or prior years at the standard effective rate of corporation tax in the UK.
14
Asset Plus Energy Performance Limited
Notes to the financial statements for the period ended 30 September 2022 (cont'd)
3 Summary of significant accounting policies (cont'd)
Taxation (cont'd)
Deferred tax
Taxable profits differ from comprehensive income in that, it excludes items of income or expense that are taxable or deductible in other periods. Tax deferred or accelerated as a result of timing differences between the treatment of certain items for taxation and for accounting purposes is provided in full with certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured at rates that are expected to apply in the periods which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the date of the statement of financial position. Deferred tax is measured on an undiscounted basis.
Deferred tax is recognised on income or expenses from subsidiaries, associates, branches and interests in jointly controlled entities, that will be assessed to or allow for tax in a future period except where the company is able to control the reversal of the timing difference and it is probable that the timing difference will not reverse in the foreseeable future.
Tangible assets and depreciation
Tangible assets are stated at cost, which is the original purchase price plus incidental expenses, less accumulated depreciation. Depreciation is calculated to write off the cost, less estimated residual value of each asset evenly over its expected useful economic life, as follows:
Asset class
Amortisation method and rate
Office equipment
25% reducing balance
The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.
Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown in creditors due within one year.
Provisions
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
Financial instruments
Financial assets
Basic financial assets, including debtors, cash and bank balances and loans to fellow group companies 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.
15
Asset Plus Energy Performance Limited
Notes to the financial statements for the period ended 30 September 2022 (cont'd)
3 Summary of significant accounting policies (cont'd)
Financial instruments (cont'd)
Such assets are subsequently carried at amortised cost using the effective interest rate method and are assessed annually for objective evidence of impairment. Any impairment loss or reversal of an impairment loss is recognised in the Statement of comprehensive income.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) despite having retained some significant risks and rewards of ownership, the control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities
Basic financial liabilities, including trade creditors and other payables, bank loans and loans from fellow group companies, 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. Such debt instruments are subsequently carried at amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classed as current liabilities if payment is due within one year or less.
Employee benefits
The company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements, defined contribution pension plans. Short term benefits, including annual bonus, holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.
Defined contribution pension plan
A defined contribution plan is pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recongnised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognized as a prepayment.
Related party transactions
The company discloses transactions with related parties which are not wholly owned within the same group. It does not disclose transactions with members of the same group that are wholly owned.
16
Asset Plus Energy Performance Limited
Notes to the financial statements for the period ended 30 September 2022 (cont'd)
3 Summary of significant accounting policies (cont'd)
Critical accounting judgements and key sources of estimation uncertainty
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that
have significant risk of causing a material adjustment to the carrying value of assets and liabilities within the next financial year are addressed below:
Revenue recognition
Earned installation fees are recognised proportionally to the stage of completion of the individual contracts, measured on a cost incurred to total forecast cost basis. This is sensitive to changes in the forecast being estimated. Revenue relating to future periods are deferred.
4 Turnover
All turnover relates to the provision of energy reduction and zero carbon generation measures.
All turnover is derived within the United Kingdom.
5 Operating profit
2022
2021
£
£
Directors' remuneration
592,838
489,648
Directors' pension contribution to money purchase schemes
17,785
32,258
Depreciation of tangible fixed assets
3,195
2,371
Auditors' remuneration
24,500
-
Rent
37,982
15,523
17
Asset Plus Energy Performance Limited
Notes to the financial statements for the period ended 30 September 2022 (cont'd)
6 Tax charge on profit
There is no tax charge for the current or prior financial year.
Reconciliation of tax charge
The tax assessed for the year is lower (2021: lower) than the standard rate of corporation tax in the United Kingdom of 19% (2021:19%). The differences are explained below:
2022
2021
£
£
Profit before taxation
6,935,428
1,654,214
Profit before taxation multiplied by the standard rate of corporation tax of 19% (2021: 19%)
1,317,731
314,301
Expenses not deductible for tax purposes
613
53
Group relief received for nil consideration
(440,411)
-
Adjustments in respect of prior periods
-
1,264
Impact of change in corporation tax rate on timing differences
283
-
Total tax charge for the year
878,216
315,618
The rate of UK corporation tax is currently 19%. In its 2022 spring budget, the UK government announced that from 1 April 2023 the corporation tax rate will increase to 25%. This was substantively enacted for UK GAAP purposes on 10 June 2022.
Temporary differences at the Statement of financial position date have been measured using the enacted deferred tax rate of 25% and reflected in these financial statements.
7 Directors and employees
The average number of persons employed by the company during the year was 9 (2021 – 7)
2022
2021
£
£
Wages and salaries
2,001,614
782,793
Social security costs
193,989
73,025
Pension costs
53,621
40,178
2,249,224
895,996
18
Asset Plus Energy Performance Limited
Notes to the financial statements for the period ended 30 September 2022 (cont'd)
7 Directors and employees (cont'd)
2022
2021
Directors' emoluments
£
£
Remuneration
592,838
489,648
Pension costs
17,785
32,258
610,623
521,906
2022
2021
Highest paid director
£
£
Remuneration
292,951
170,680
Pension costs
8,789
5,120
38,080
175,800
Post 3 May 2022, no directors were remunerated through the company, as their services as directors to the company were incidental to the other services they provide within the Johnson Controls International plc group of companies. Directors' remuneration costs were borne by other members of the Johnson Controls International plc group of companies. It was not possible to determine an allocation of costs to this company.
8 Tangible assets
Office equipment
Total
£
£
Cost
At 1 July 2021
10,624
10,624
Additions
2,325
2,325
At 30 September 2022
12,949
12,949
Accumulated depreciation
At 1 July 2021
3,131
3,131
Charge for the year
3,196
3,196
At 30 September 2022
6,327
6,327
Net book value
At 30 September 2022
6,622
6,622
At 30 June 2021
7,493
7,493
9 Debtors
19
Asset Plus Energy Performance Limited
Notes to the financial statements for the period ended 30 September 2022 (cont'd)
2022
2021
Amounts falling due within one year
£
£
Trade debtors
11,038,046
8,908,844
Amounts owed by group undertakings
4,350,000
519,022
Taxation and social security
519,644
-
Other debtors
11,678,297
1,055,010
27,585,988
10,482,876
Amounts owed by group undertakings includes a loan of £4.4 million (2021: nil) where interest is charged at a fixed rate of 3.63 % per annum (2021: interest was not charged). This loan was repaid in full in October 2022.
10 Creditors – amounts falling due within one year
2022
2021
Due within one year
£
£
Trade creditors
5,153,717
3,628,780
Taxation and social security
393,102
1,385,048
Accruals and deferred income
14,699,517
15,219,627
Other creditors
918,813
319,009
21,165,149
1,098,377
11 Called up share capital
2022
2021
Allotted, called-up and fully paid
£
£
1,000 (2021:1,000) ordinary shares of £1 each
1,000
1,000
1,000
1,000
20
Asset Plus Energy Performance Limited
Notes to the financial statements for the period ended 30 September 2022 (cont'd)
12 Ultimate parent undertaking and controlling party
The company's immediate parent undertaking is Johnson Controls Building Efficiency UK Limited, a company incorporated in the United Kingdom.
Effective 03 May 2022, the ultimate parent undertaking and controlling party is Johnson Controls International plc, a company incorporated in Cork, Ireland. Johnson Controls International plc is the parent undertaking of the smallest and largest group of undertakings to consolidate these financial statements for the period ended 30 September 2022. The consolidated financial statements of Johnson Controls International plc are available from:
Johnson Controls International plc
1 Albert Quay
Cork
Ireland
21
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