Company registration number 06259559 (England and Wales)
EVOENERGY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
EVOENERGY LIMITED
COMPANY INFORMATION
Directors
M Salisbury
J Wakeford
M Wakeford
M Wilde
Company number
06259559
Registered office
27 Eldon Business Park
Beeston
Nottingham
United Kingdom
NG9 6DZ
Auditor
Azets Audit Services
2 Regan Way
Chetwynd Business Park
Chilwell
Nottingham
United Kingdom
NG9 6RZ
EVOENERGY LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Group profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 38
EVOENERGY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

Fair review of the business

The Directors are pleased to report that the period to March 2023 was a year of continuing operational profitability.

With a robust 5 year plan (2023:2028) agreed, the Directors have built further capacity and resilience during the year under review to further strengthen the company’s position as the number 1 in UK renewable energy consultancy, design, development, build, and post installation aftercare maintenance and asset management for clients. The Directors are committed to a holistic approach that invests in young talent, streamlines systems and processes, and invests in new infrastructure. Collectively this will further enhance the products and services that can be innovated and reliably delivered to keep EvoEnergy as the UK renewable energy partner of choice.

To support this plan, the intermediate holding company Aspen Evo Holdings subscribed for £1.3m of new share capital that has further strengthened the balance sheet of EvoEnergy, making the company one of the strongest in an industry that is dominated by financially weak businesses.

Current projects are performing with positive returns and good cash margins. The business has a good level of secured work going ahead in 2023-23 and an extensive qualified pipeline of quality and innovative project opportunities.

Principal risks and uncertainties

There remain a number of key risks which the Business must remain mindful of and structure its approach to manage. Thes include:

Market Risk

The Board has a portfolio approach of diversification into numerous technologies and services to provide a one stop shop to our clients individual and bespoke needs, and to reduce overall business risk.

The market dynamics are closely watched and the Board moves interchangeable staff expertise to respond and exploit opportunities and technologies as they arise.

People Risks

EvoEnergy employs leading experts in the industry to deliver innovative, timely and quality project solutions to clients to advance their renewable energy aspirations. We are at our core a family orientated business and our family-centric company values are at the heart of what we do. We are proud to have industry leading retention with one third of the team having over 7 years with the company, and this team have been collectively leaders in the development of UK renewable energy market.

With this tremendous foundation, the Board continues to be strong advocates of development of our teams from within and recruitment of young talent.

This can be seen in our staff under 25’s now accounting for nearly 30%. At the start of our benchmark 5 year plan at March 2018 they were 4%).

In a male dominated industry, we now have achieved one third of the team being female. At the start of our benchmark 5 year plan at March 2018 this was sub 15%.

We have also invested in widening our people reach with apprentices, University paid internships and other student paid experience opportunities.

EVOENERGY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Principal risks and uncertainties

Financial Risk Management

The group produces detailed monthly management accounts to monitor the performance of the group and to enable the Directors to have visibility of performance.

The group uses various financial instruments including cash, trade debtors, intergroup loans and trade creditors that arise directly from the Company’s operations. The existence of these financial instruments expose the group to a number of financial risks, including liquidity risk, interest rate risk, and credit risk which are managed as described below:

Liquidity risk – the group seeks to manage the liquidity risk by ensuring that there is sufficient liquidity available to meet foreseeable needs and to invest its cash assets safely.

Interest rate risk – The group finances its operations through a mixture of retained profits and cash balances. Cash is managed to maximise income from interest while avoiding inherent risks.

Credit risk – The group’s principal financial assets are cash, stock and trade debtors, the latter of which are prone to credit risk. Directors manage this through setting credit limits based on a combination of trading history and third-party credit agencies. The Directors also have trading terms aligned to the work undertaken and liabilities committed to individual projects.

Key performance indicators

The company measures its financial performance for the year using the following measures:

Operating profit as a percentage of turnover represents 2.2% (2022: 2.8%)

Staff costs as percentage of turnover represents     12.6% (2022: 11.8%)

The company experienced no environmental or health and safety prosecutions (2022: Zero)

EVOENERGY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

Environmental, Social and Governance

EvoEnergy recognises its place as part of the community and to ensure its contribution to society our staff are provided full pay days to engage in volunteer days, and we ensure that all staff have opportunities to develop in a structured career path with readily available company funding for training.

The Group has policies that raise awareness of modern slavery, ethical trading and human rights.

The group has close and long standing relationships with its suppliers to guarantee superior service levels, product quality and availability, cost competitiveness, and timely deliveries.

We aim to exceed our customers expectations through our innovation of their bespoke renewable energy solutions, and to be the long term asset manager supporting their purpose built solution through the next two to three decades of the assets' lifetime.

EvoEnergy is an important job contributor to both directly employed staff, and our trusted and long term subcontract partners across the UK. We challenge ourselves to reduce our impact on the environment and we make huge impacts via our client renewable energy solutions.

Employee/Colleague involvement

The Directors ensure that all employees are aware of the objectives and results of the group through presentations and day to day conversations. The Directors have focused on providing a modern and positive work environment for all employees, and opportunities for all to grow and achieve their individual potential. Since COVID-19 the business has moved to a very flexible basis with use of technology to allow extensive home / collaborative working.

The Directors benchmark with comparable employers and believe the group is a fair emplloyer and rewards its staff appropriately.

Health and Safety

EvoEnergy pride itself on an excellent Health and Safety record allied to staff workforce and well-being. We are transparently with our clients and employ third party advisors to inspect and report on all our sites and to promote industry best practice. The Board review health, safety and wellbeing weekly and have a comprehensive package of wellbeing support in place.

Future Developments

The Directors anticipate the business environment will remain supportive whilst competitive, and they believe the company is in a good financial position to respond to any changes in market conditions.

The group will continue to look for further opportunities for growth in all areas of the business.

The Board continue to adopt a selective approach to tendering and incoming enquiries, selecting those to which its market leading skills base is best suited, and where terms and conditions do not impose unacceptable levels of construction or financing risk. All contracts are reviewed and negotiated in detail before a “Deal / No Deal” decision is made.

We will continue to operate across the UK and focus on service to our clients.

We are proud of our hard-earned reputation for innovation, quality and the meticulous efforts of our teams, and we continue to consistently deliver an excellent product /solution with a low level of latent defects.

We endeavor to be the long-term asset manager partner for our existing clients and others who require maintenance services, to provide a market leading comprehensive after care proposition and to identify opportunities with new emerging technologies.

Going Concern

The Directors have reviewed the detailed financial projections, including both profit and loss forecasts as well as cash-flow forecasts and considered all reasonably foreseeable potential scenarios and uncertainties. They have satisfied themselves that the group will continue in operational existence for a period of at least 12 months from the signing of these financial statements, and have therefore prepared the financial statements on a going concern basis and that no material uncertainty exists.

EVOENERGY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

On behalf of the board

M Wakeford
Director
25 July 2023
EVOENERGY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the company and group in the year under review was as premier UK renewable energy solutions partner for clients in decarbonising and powering their future. Our teams of renewable energy experts guide from start to finish and help businesses save money, reduce emissions and secure their future energy generation for years to come. We help clients via our consultancy services, the development of sites, design and installation of resultant solutions, and after care maintenance and monitoring of renewable energy technologies centred around clean renewable electricity. Our current technologies comprise solar PV, commercial battery storage, electric vehicle charging, HV/LV infrastructure and smart renewable energy grids. Sunshare Community Nottingham Plc is a solar energy generator to a portfolio of Nottingham City Council properties benefiting local schools.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £2,185. 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:

M Salisbury
J Wakeford
M Wakeford
M Wilde
T Wakeford
(Resigned 31 August 2022)
Auditor

Azets Audit Services were appointed as auditors during the year. Azets Audit Services are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of Financial Risk Management and Future developments.

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
M Wakeford
Director
25 July 2023
EVOENERGY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -

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.

EVOENERGY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EVOENERGY LIMITED
- 7 -
Opinion

We have audited the financial statements of Evoenergy Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 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:

EVOENERGY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EVOENERGY LIMITED
- 8 -
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.

EVOENERGY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EVOENERGY LIMITED
- 9 -

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.

Other matters which we are required to address

In the previous accounting period, the Directors of the company took advantage of audit exemption under S477 of the Companies Act. Therefore, the prior period financial statements were not subject to audit.

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.

Mr Mitesh Thakrar (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
25 July 2023
Chartered Accountants
Statutory Auditor
2 Regan Way
Chetwynd Business Park
Chilwell
Nottingham
United Kingdom
NG9 6RZ
EVOENERGY LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
2023
2022
as restated
Notes
£
£
Turnover
3
17,706,900
14,052,469
Cost of sales
(14,539,304)
(11,628,573)
Gross profit
3,167,596
2,423,896
Administrative expenses
(2,979,313)
(2,032,510)
Other operating income
204,702
7,383
Operating profit
4
392,985
398,769
Interest receivable and similar income
8
36,959
-
0
Interest payable and similar expenses
9
(42,056)
(32,225)
Profit before taxation
387,888
366,544
Tax on profit
10
106,796
251,529
Profit for the financial year
494,684
618,073
Profit for the financial year is all attributable to the owners of the parent company.

The notes on pages 18 to 38 form part of these financial statements.

EVOENERGY LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
2023
2022
as restated
£
£
Profit for the year
494,684
618,073
Other comprehensive income
-
-
Total comprehensive income for the year
494,684
618,073
Total comprehensive income for the year is all attributable to the owners of the parent company.

The notes on pages 18 to 38 form part of these financial statements.

EVOENERGY LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 12 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
12
55,248
61,386
Other intangible assets
12
2,116
4,231
Total intangible assets
57,364
65,617
Tangible assets
13
660,196
685,369
717,560
750,986
Current assets
Stocks
16
4,660,273
887,272
Debtors
17
5,160,247
3,215,687
Cash at bank and in hand
7,809,130
4,338,246
17,629,650
8,441,205
Creditors: amounts falling due within one year
18
(13,826,200)
(6,615,032)
Net current assets
3,803,450
1,826,173
Total assets less current liabilities
4,521,010
2,577,159
Creditors: amounts falling due after more than one year
19
702,693
749,458
Provisions for liabilities
21
535,894
337,777
Called up share capital
23
2,449,561
1,149,561
Share premium account
15,000
15,000
Profit and loss reserves
817,862
325,363
Total Equity
3,282,423
1,489,924
4,521,010
2,577,159

The notes on pages 18 to 38 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 25 July 2023 and are signed on its behalf by:
25 July 2023
M Wakeford
Director
EVOENERGY LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 13 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
12
2,116
4,231
Tangible assets
13
279,909
265,308
Investments
14
12,500
12,500
294,525
282,039
Current assets
Stocks
16
4,660,273
887,272
Debtors
17
5,211,812
3,334,499
Cash at bank and in hand
7,634,503
4,114,185
17,506,588
8,335,956
Creditors: amounts falling due within one year
18
(13,771,493)
(6,576,262)
Net current assets
3,735,095
1,759,694
4,029,620
2,041,733
Creditors: amounts falling due after more than one year
19
228,149
228,149
Provisions
21
535,894
337,777
Called up share capital
23
2,449,561
1,149,561
Share premium account
15,000
15,000
Profit and loss reserves
801,016
311,246
Total equity
3,265,577
1,475,807
4,029,620
2,041,733

The notes on pages 18 to 38 form part of these financial statements.

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 £491,955 (2022 - £617,197 profit).

The financial statements were approved by the board of directors and authorised for issue on 25 July 2023 and are signed on its behalf by:
25 July 2023
M Wakeford
Director
Company Registration No. 06259559
EVOENERGY LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 March 2022:
Balance at 1 April 2021
45,000
15,000
(292,710)
(232,710)
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
618,073
618,073
Issue of share capital
23
1,104,561
-
0
-
1,104,561
Balance at 31 March 2022
1,149,561
15,000
325,363
1,489,924
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
494,684
494,684
Issue of share capital
23
1,300,000
-
0
-
1,300,000
Dividends
11
-
-
(2,185)
(2,185)
Balance at 31 March 2023
2,449,561
15,000
817,862
3,282,423

The notes on pages 18 to 38 form part of these financial statements.

EVOENERGY LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 March 2022:
Balance at 1 April 2021
45,000
15,000
(305,951)
(245,951)
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
617,197
617,197
Issue of share capital
23
1,104,561
-
0
-
1,104,561
Balance at 31 March 2022
1,149,561
15,000
311,246
1,475,807
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
491,955
491,955
Issue of share capital
23
1,300,000
-
0
-
1,300,000
Dividends
11
-
-
(2,185)
(2,185)
Balance at 31 March 2023
2,449,561
15,000
801,016
3,265,577

The notes on pages 18 to 38 form part of these financial statements.

EVOENERGY LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
27
2,314,264
(1,106,651)
Interest paid
(42,056)
(32,224)
Income taxes refunded
-
0
172,029
Net cash inflow/(outflow) from operating activities
2,272,208
(966,846)
Investing activities
Purchase of tangible fixed assets
(93,049)
(249,842)
Proceeds on disposal of tangible fixed assets
(2)
-
Interest received
36,959
-
0
Net cash used in investing activities
(56,092)
(249,842)
Financing activities
Proceeds from issue of shares
1,300,000
1,104,561
Repayment of debentures
(43,047)
(136,103)
Repayment of borrowings
-
(905,943)
Dividends paid to equity shareholders
(2,185)
-
Net cash generated from financing activities
1,254,768
62,515
Net increase/(decrease) in cash and cash equivalents
3,470,884
(1,154,173)
Cash and cash equivalents at beginning of year
4,338,246
5,492,419
Cash and cash equivalents at end of year
7,809,130
4,338,246

The notes on pages 18 to 38 form part of these financial statements.

EVOENERGY LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
2,284,778
(1,299,324)
Interest paid
(12,630)
-
0
Income taxes refunded
-
0
172,029
Net cash inflow/(outflow) from operating activities
2,272,148
(1,127,295)
Investing activities
Purchase of tangible fixed assets
(93,049)
(249,842)
Proceeds on disposal of tangible fixed assets
(2)
-
0
Interest received
43,406
3,724
Net cash used in investing activities
(49,645)
(246,118)
Financing activities
Proceeds from issue of shares
1,300,000
1,104,561
Repayment of borrowings
-
(905,943)
Dividends paid to equity shareholders
(2,185)
-
Net cash generated from financing activities
1,297,815
198,618
Net increase/(decrease) in cash and cash equivalents
3,520,318
(1,174,795)
Cash and cash equivalents at beginning of year
4,114,185
5,288,980
Cash and cash equivalents at end of year
7,634,503
4,114,185

The notes on pages 18 to 38 form part of these financial statements.

EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
1
Accounting policies
Company information

Evoenergy Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 27 Eldon Business Park, Attenborough, Nottingham, United Kingdom, NG9 6DZ.

 

The group consists of Evoenergy 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. 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.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Evoenergy Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 March 2023. 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

In the year under review we continued to enhance our position in the UK with blue chip and multi-site partners.

In August 2022, a further £1.3m share capital was issued further strengthening the group.

The Directors have reviewed the detailed financial projections, including both profit and loss forecasts as well as cash-flow forecasts and considered all reasonably foreseeable potential scenarios and uncertainties. They have satisfied themselves that the group will continue in operational existence for a period of at least 12 months from the signing of these financial statements, and have therefore prepared the financial statements on a going concern basis and that no material uncertainty exists.

EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover is recognised when it and the associated costs can be measured reliably, future economic benefits are probable, and the risks and rewards of ownership have been transferred to the customer. Sales of goods are recognised when goods are delivered, and legal title has passed and the group has no continuing managerial involvement associated with ownership or effective control of the goods sold. This is generally when goods have been checked and accepted by customers on delivery at the specified location.

Sale of installation services

 

Turnover from contracts for the provision of installation services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is assessed by project managers. Where the outcome cannot be estimated reliably, turnover is recognised only to the extent of the expenses recognised as recoverable. Turnover relating to retentions and warranties is recognised once it is deemed recoverable.

Energy contract supply agreements and Feed in Tariffs (FIT)

Turnover relating to the energy supplied and generation tariffs is accrued as generated. Management has adopted the policy of recognising FIT turnover, based on the price for the relevant period

Consultancy services

Turnover relating to consultancy services is recognised as the service is provided to the customer.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 14 years.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Website development costs
10% straight line
1.8
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.

EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -

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:

Plant and equipment
5% - 33% straight line
Fixtures and fittings
20% straight line
Motor vehicles
25% straight line

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.

1.9
Fixed asset investments

In the parent company financial statements, investments in subsidiaries 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.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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).

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined on a first in first out basis.

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.

1.12
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the contract managers.

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
1.14
Financial instruments

The group only has financial instruments that are classified as basic financial instruments.

 

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

 

Financial assets and liabilities are offset, with 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 ,cash and bank balances and amounts due from contract customers are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets 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.

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.

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, and amounts due to contract customers re initially recognised at transaction. 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.

1.15
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.

EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 22 -
1.16
Taxation

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

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.

1.17
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.18
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.

1.19
Leases

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.

EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 23 -
1.20
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.

Contract revenue and cost recognition

Turnover and costs in relation to installation contracts are recognised based on the stage of completion of each contract. Project costs are forecast using the contract plan of works and expected timeframe of the project.The stage of completion of each such contract requires an estimation of the proportion of services performed to date as a percentage of the overall contract.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock provision

Stocks are valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, including forecast consumer demand, and the promotional, competitve and ecomonic environment in which the company operates. The stock provision included in the financial statements at 31 March 2023 is £26,974 (2022: £23,842).

Warranty provision

When turnover is recognised for the sale of goods or installation services, a provision is made for the estimated cost of any warranty obligation. This provision is measured based on the probability weighting of possible outcomes, taking industry specific knowledge into consideration. At the 31 March 2023 the warranty provision was £496,329 (2022: £298,212).

Bad debt provision

Trade debtors are stated at invoice price less an appropriate estimate for bad and doubtful debts. Calculation of the amount of this provision requires judgement of the Directors, based on their assessment of the creditworthiness of each customer. At the 31 March 2023 the bad debt provision was £52,207 (2022: £46,770).

EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Installation services
17,706,900
14,052,469
2023
2022
£
£
Other revenue
Interest income
36,959
-
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
111,587
90,061
Loss on disposal of tangible fixed assets
6,637
-
Amortisation of intangible assets
8,253
8,253
Operating lease charges
81,323
121,111
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
20,500
-
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Direct labour
9
7
9
7
Administration
35
31
35
31
Total
44
38
44
38
EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Employees
(Continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,802,105
1,430,629
1,802,105
1,430,629
Social security costs
214,110
131,655
214,110
131,655
Pension costs
216,583
101,645
216,583
101,645
2,232,798
1,663,929
2,232,798
1,663,929
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
217,377
228,414
Company pension contributions to defined contribution schemes
107,380
13,734
324,757
242,148

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
115,712
120,614
Company pension contributions to defined contribution schemes
96,365
7,828
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
36,959
-
0

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
36,959
-
EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
376
-
Other interest on financial liabilities
41,680
32,225
42,056
32,225
10
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(106,955)
-
0
Deferred tax
Origination and reversal of timing differences
159
(251,529)
Total tax credit
(106,796)
(251,529)

The actual credit 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:

2023
2022
£
£
Profit before taxation
387,888
366,544
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
73,699
69,643
Tax effect of expenses that are not deductible in determining taxable profit
4,137
3,485
Change in unrecognised deferred tax assets
(5,479)
(85,727)
Effect of change in corporation tax rate
472
20,575
Permanent capital allowances in excess of depreciation
(2,445)
(3,404)
Other permanent differences
-
0
(109)
Under/(over) provided in prior years
(106,955)
-
0
Deferred tax adjustments in respect of prior years
-
0
(255,992)
R&D tax credit relief at 4.5%
48,066
-
0
R&D expenditure enhancement
(273,170)
-
0
R&D tax credit not recognised
154,879
-
0
Taxation credit
(106,796)
(251,529)
EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
2,185
-
12
Intangible fixed assets
Group
Goodwill
Website development costs
Total
£
£
£
Cost
At 1 April 2022 and 31 March 2023
85,938
21,153
107,091
Amortisation and impairment
At 1 April 2022
24,552
16,922
41,474
Amortisation charged for the year
6,138
2,115
8,253
At 31 March 2023
30,690
19,037
49,727
Carrying amount
At 31 March 2023
55,248
2,116
57,364
At 31 March 2022
61,386
4,231
65,617
Company
Website development costs
£
Cost
At 1 April 2022 and 31 March 2023
21,153
Amortisation and impairment
At 1 April 2022
16,922
Amortisation charged for the year
2,115
At 31 March 2023
19,037
Carrying amount
At 31 March 2023
2,116
At 31 March 2022
4,231
EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
13
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
1,660,367
49,843
97,628
1,807,838
Additions
42,908
530
49,611
93,049
Disposals
(642,080)
(50,373)
-
0
(692,453)
At 31 March 2023
1,061,195
-
0
147,239
1,208,434
Depreciation and impairment
At 1 April 2022
1,026,469
47,543
48,457
1,122,469
Depreciation charged in the year
76,014
530
35,043
111,587
Eliminated in respect of disposals
(640,812)
(48,073)
3,067
(685,818)
At 31 March 2023
461,671
-
0
86,567
548,238
Carrying amount
At 31 March 2023
599,524
-
0
60,672
660,196
At 31 March 2022
633,898
2,300
49,171
685,369
Company
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
864,882
49,843
97,628
1,012,353
Additions
42,908
530
49,611
93,049
Disposals
(642,080)
(50,373)
-
0
(692,453)
At 31 March 2023
265,710
-
0
147,239
412,949
Depreciation and impairment
At 1 April 2022
651,045
47,543
48,457
747,045
Depreciation charged in the year
36,240
530
35,043
71,813
Eliminated in respect of disposals
(640,812)
(48,073)
3,067
(685,818)
At 31 March 2023
46,473
-
0
86,567
133,040
Carrying amount
At 31 March 2023
219,237
-
0
60,672
279,909
At 31 March 2022
213,837
2,300
49,171
265,308
EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
12,500
12,500
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
12,500
Carrying amount
At 31 March 2023
12,500
At 31 March 2022
12,500
15
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Sunshare Community Nottingham Plc
27 Eldon Business Park, Chilwell, Nottingham, NG9 6DZ
Ordinary
100.00
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Contract work in progress
3,309,710
390,119
3,309,710
390,119
Finished goods and goods for resale
1,350,563
497,153
1,350,563
497,153
4,660,273
887,272
4,660,273
887,272
EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,138,828
843,633
3,140,274
837,359
Gross amounts owed by contract customers
1,038,415
1,051,726
1,038,415
1,051,726
Corporation tax recoverable
124,049
17,094
124,049
17,094
Amounts owed by group undertakings
-
-
-
21,228
Other debtors
396,034
19,094
394,646
19,094
Prepayments and accrued income
216,598
1,037,658
131,577
1,011,593
4,913,924
2,969,205
4,828,961
2,958,094
Deferred tax asset (note 22)
246,323
246,482
255,992
255,992
5,160,247
3,215,687
5,084,953
3,214,086
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
126,859
120,413
Total debtors
5,160,247
3,215,687
5,211,812
3,334,499
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Debenture loans
20
44,345
44,345
-
0
-
0
Trade creditors
2,584,912
2,199,791
2,577,550
2,199,857
Gross amounts owed to contract customers
7,524,059
3,293,368
7,524,059
3,293,368
Other taxation and social security
1,235,779
114,618
1,235,779
114,618
Other creditors
340,021
66,479
340,021
65,675
Accruals and deferred income
2,097,084
896,431
2,094,084
902,744
13,826,200
6,615,032
13,771,493
6,576,262
EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Debenture loans
20
386,126
429,173
-
0
-
0
Other borrowings
20
228,149
228,149
228,149
228,149
Accruals and deferred income
88,418
92,136
-
0
-
0
702,693
749,458
228,149
228,149
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Debenture loans
430,471
473,518
-
0
-
0
Loans from related parties
228,149
228,149
228,149
228,149
658,620
701,667
228,149
228,149
Payable within one year
44,345
44,345
-
0
-
0
Payable after one year
614,275
657,322
228,149
228,149

Debentures were issued by the subsidiary company in 2014. The debentures carry a fixed rate of interest of 6.5% and are repayable in equal instalments. Amounts falling due by instalment over five years total £208,745 (2022: £251,792).

21
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Warranties
496,329
298,212
496,329
298,212
Dilapidations
39,565
39,565
39,565
39,565
535,894
337,777
535,894
337,777
EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
21
Provisions for liabilities
(Continued)
- 32 -
Movements on provisions:
Warranties
Dilapidations
Total
Group
£
£
£
At 1 April 2022
298,212
39,565
337,777
Additional provisions in the year
442,535
-
442,535
Reversal of provision
606
-
606
Utilisation of provision
(245,024)
-
(245,024)
At 31 March 2023
496,329
39,565
535,894
Warranties
Dilapiations
Total
Company
£
£
£
At 1 April 2022
298,212
39,565
337,777
Additional provisions in the year
442,535
-
442,535
Reversal of provision
606
-
606
Utilisation of provision
(245,024)
-
(245,024)
At 31 March 2023
496,329
39,565
535,894
22
Deferred taxation

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

Assets
Assets
2023
2022
Group
£
£
Accelerated capital allowances
(9,669)
(9,510)
Tax losses
255,992
255,992
246,323
246,482
Assets
Assets
2023
2022
Company
£
£
Tax losses
255,992
255,992
EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
22
Deferred taxation
(Continued)
- 33 -
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 April 2022
(246,482)
(255,992)
Charge to profit or loss
159
-
Asset at 31 March 2023
(246,323)
(255,992)
23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,449,561
1,149,561
2,449,561
1,149,561
24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
79,432
66,494
79,432
66,494
Between two and five years
202,102
109,648
202,102
109,648
281,534
176,142
281,534
176,142
EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 34 -
25
Related party transactions
Transactions with related parties

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

Other operating income
Other operating income
2023
2022
£
£
Group
Other related parties
162,842
-
Company
Other related parties
162,842
-
Management charges
Interest payable
2023
2022
2023
2022
£
£
£
£
Group
Other related parties
225,460
-
12,254
-
Company
Other related parties
225,460
-
12,254
-

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Other related parties
415,863
228,149
Company
Other related parties
415,863
228,149
EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
25
Related party transactions
(Continued)
- 35 -

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Other related parties
21,000
-
Company
Other related parties
21,000
-
26
Controlling party

The group and company's immediate and ultimate parent undertaking is Aspen Evo Holdings Limited, a company incorporated in England and Wales. The financial statements of this group are included in the consolidated financial statements of Aspen Evo Holdings Limited whose registered office is 27 Eldon Business Park, Beeston, Nottingham, NG9 6DZ. The consolidated financial statements of Aspen Evo Holdings Limited are available from Companies House.

27
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
494,684
618,073
Adjustments for:
Taxation credited
(106,796)
(251,529)
Finance costs
42,056
32,225
Investment income
(36,959)
-
0
Loss on disposal of tangible fixed assets
6,637
-
Amortisation and impairment of intangible assets
8,253
8,253
Depreciation and impairment of tangible fixed assets
111,587
90,061
Increase in provisions
198,117
43,080
Movements in working capital:
(Increase)/decrease in stocks
(3,773,001)
918,867
(Increase)/decrease in debtors
(1,837,764)
505,737
Increase/(decrease) in creditors
7,207,450
(3,071,418)
Cash generated from/(absorbed by) operations
2,314,264
(1,106,651)
EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 36 -
28
Cash generated from/(absorbed by) operations - company
2023
2022
£
£
Profit for the year after tax
491,955
617,197
Adjustments for:
Taxation credited
(106,955)
(255,992)
Finance costs
12,630
-
0
Investment income
(43,406)
(3,724)
Loss on disposal of tangible fixed assets
6,637
-
Amortisation and impairment of intangible assets
2,115
2,115
Depreciation and impairment of tangible fixed assets
71,813
50,287
Increase in provisions
198,117
43,080
Movements in working capital:
(Increase)/decrease in stocks
(3,773,001)
918,867
(Increase)/decrease in debtors
(1,770,358)
484,617
Increase/(decrease) in creditors
7,195,231
(3,155,771)
Cash generated from/(absorbed by) operations
2,284,778
(1,299,324)
29
Analysis of changes in net funds - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
4,338,246
3,470,884
7,809,130
Borrowings excluding overdrafts
(701,667)
43,047
(658,620)
3,636,579
3,513,931
7,150,510
30
Analysis of changes in net funds - company
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
4,114,185
3,520,318
7,634,503
Borrowings excluding overdrafts
(228,149)
-
(228,149)
3,886,036
3,520,318
7,406,354
31
Prior period adjustment
Reconciliation of changes in equity - group
The prior period adjustments do not give rise to any effect upon equity.
EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
31
Prior period adjustment
(Continued)
- 37 -
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Total adjustments
-
Profit as previously reported
618,073
Profit as adjusted
618,073
Changes to the balance sheet - company
As previously reported
Adjustment
As restated at 31 Mar 2022
£
£
£
Current assets
Stocks
1,044,132
(156,860)
887,272
Debtors due within one year
3,177,639
156,860
3,334,499
Net assets
1,475,807
-
1,475,807
Capital and reserves
Total equity
1,475,807
-
1,475,807
Changes to the profit and loss account - company
As previously reported
Adjustment
As restated
Period ended 31 March 2022
£
£
£
Turnover
14,460,164
(513,401)
13,946,763
Cost of sales
(12,141,974)
513,401
(11,628,573)
Profit after taxation
617,197
-
617,197
Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Total adjustments
-
Profit as previously reported
617,197
Profit as adjusted
617,197
EVOENERGY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
31
Prior period adjustment
(Continued)
- 38 -
Notes to reconciliation

The prior year adjustment relates to the presentation of contract work in progress in the Balance Sheet. Previously amounts due from contract customers totalling £1,051,726 were incorrectly classified as Work In Progress totalling £546,979 and other debtors of £504,747. Contract work in progress totalling £390,119 was previously incorrectly classified as prepayments. Amounts due to contract customers totalling £3,293,368 were previously incorrectly classified as accruals and deferred income.

 

The impact on the profit and loss account was to decrease turnover by £513,401 and decrease cost of sales by £513,401.

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