Company registration number 13905791 (England and Wales)
ASPEN EVO HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
ASPEN EVO HOLDINGS LIMITED
COMPANY INFORMATION
Directors
J R Wakeford
(Appointed 13 April 2022)
M R Wakeford
Company number
13905791
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
ASPEN EVO HOLDINGS 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
Notes to the financial statements
17 - 34
ASPEN EVO HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

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

Review of the business

Aspen Evo Holdings Limited was incorporated on 10 February 2022 as part of a restructuring programme relating to Evoenergy Limited and Aspen Retirement Limited.

These financial statements present the financial information of these subsidiary companies (together with their subsidiaries) for the 12 months to 31 March 2023 under merger accounting methodolgy.

Review of Evoenergy Limited

The Directors of Evoenergy 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 of Evoenergy 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.

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.

Review of Aspen Retirement Limited

Aspen Retirement has had a quiet year. With a slow housing market, disrupted by changing Government policy impacting on mortgages and the general housing market we have seen fewer than normal property sales and few shared equity staircasing repayments. We have been able to maintain the value of our shared equity through these difficult times.

We continue to consider new development opportunities as they arise and consider the brand and intellectual property of the designs and leases remain exemplary in the market place.

The Directors look to use their knowledge and Aspen brand to build future turnover and profit.

 

 

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

There remain a number of key risks which the Group must remain mindful of and structure its approach to manage. These 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.

The market risk associated with development in Extra Care is linked to the general housing market supporting property sales and availability of land at an appropriate value. We are managing the movement in this risk profile by holding back on any current development opportunity.

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.

Aspen Retirement does not have any employees and contracts out some management services, managing the “people risk” appropriately.

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.

ASPEN EVO HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
Key performance indicators

The group measures its financial performance for the period using the following measures:

Operating profit as a percentage of turnover represents 2.18% (2022: 2.18%)

Staff costs as percentage of turnover represents 12.51% (2022: 11.81%)

The group experienced no environmental or health and safety prosecutions

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.

 

ASPEN EVO HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
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, and will consider opportunities abroad if there is an obvious solution where our expertise and intellectual property can add value and generate a suitable return, and the risks can be appropriately managed.

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.

On behalf of the board

J R Wakeford
Director
11 October 2023
ASPEN EVO HOLDINGS 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. The company was incorporated on 10 February 2022 and began trading on 22 August 2022.

 

The company assumed control of Evoenergy Limited and Aspen Retirement Limited on 22 August 2022 via a share for share exchange. Merger accounting was applied in respect of that transaction and as such, the group accounts present the full results for both the current and comparative years as if Aspen Evo Holdings Limited had always existed and had control of the group.

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.

 

In addition via Aspen Retirement Limited, the Group is engaged in developing retirement apartments.

Results and dividends

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

During the year, ordinary dividends of £2,000 were paid by subsidiaries to former shareholders. 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:

J R Wakeford
(Appointed 13 April 2022)
M R Wakeford
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.

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
J R Wakeford
Director
11 October 2023
ASPEN EVO HOLDINGS 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.

ASPEN EVO HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ASPEN EVO HOLDINGS LIMITED
- 7 -
Opinion

We have audited the financial statements of Aspen Evo Holdings 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 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:

ASPEN EVO HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ASPEN EVO HOLDINGS 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.

ASPEN EVO HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ASPEN EVO HOLDINGS 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.

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
11 October 2023
Chartered Accountants
Statutory Auditor
2 Regan Way
Chetwynd Business Park
Chilwell
Nottingham
United Kingdom
NG9 6RZ
ASPEN EVO HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
17,847,802
14,092,916
Cost of sales
(14,606,588)
(11,665,733)
Gross profit
3,241,214
2,427,183
Administrative expenses
(3,067,611)
(2,127,056)
Other operating income
214,776
7,383
Operating profit
4
388,379
307,510
Interest receivable and similar income
7
42,022
570
Interest payable and similar expenses
8
(42,056)
(38,995)
Profit before taxation
388,345
269,085
Tax on profit
9
106,983
251,529
Profit for the financial year
495,328
520,614
Profit for the financial year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 17 to 34 form part of these financial statements.

ASPEN EVO HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
2023
2022
£
£
Profit for the year
495,328
520,614
Other comprehensive income
-
-
Total comprehensive income for the year
495,328
520,614
Total comprehensive income for the year is all attributable to the owners of the parent company.

The notes on pages 17 to 34 form part of these financial statements.

ASPEN EVO HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
55,248
61,386
Other intangible assets
10
2,116
4,231
Total intangible assets
57,364
65,617
Tangible assets
11
660,196
685,369
717,560
750,986
Current assets
Stocks
14
5,292,841
1,580,226
Debtors
15
11,657,590
11,191,144
Cash at bank and in hand
7,878,399
4,339,977
24,828,830
17,111,347
Creditors: amounts falling due within one year
16
(16,067,318)
(9,027,941)
Net current assets
8,761,512
8,083,406
Total assets less current liabilities
9,479,072
8,834,392
Creditors: amounts falling due after more than one year
17
702,693
749,458
Provisions for liabilities
19
535,894
337,777
Capital and reserves
Called up share capital
22
3,749,990
3,749,990
Other reserves
3,185,019
3,185,019
Profit and loss reserves
1,305,476
812,148
Total equity
8,240,485
7,747,157
9,479,072
8,834,392

The notes on pages 17 to 34 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 11 October 2023 and are signed on its behalf by:
11 October 2023
J R Wakeford
Director
Company registration number 13905791 (England and Wales)
ASPEN EVO HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 13 -
2023
Notes
£
£
Fixed assets
Investments
12
3,749,980
Current assets
Debtors
15
10
Net current assets
10
Net assets
3,749,990
Capital and reserves
Called up share capital
22
3,749,990

The notes on pages 17 to 34 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 £0 (2022 - £0 profit).

The financial statements were approved by the board of directors and authorised for issue on 11 October 2023 and are signed on its behalf by:
11 October 2023
J R Wakeford
Director
Company registration number 13905791 (England and Wales)
ASPEN EVO HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
Share capital
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
3,749,990
3,185,019
291,534
7,226,543
Year ended 31 March 2022:
Profit and total comprehensive income
-
-
520,614
520,614
Balance at 31 March 2022
3,749,990
3,185,019
812,148
7,747,157
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
495,328
495,328
Dividends
-
-
(2,000)
(2,000)
Balance at 31 March 2023
3,749,990
3,185,019
1,305,476
8,240,485

The notes on pages 17 to 34 form part of these financial statements.

ASPEN EVO HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
Share capital
Notes
£
Balance at 1 April 2021
-
0
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
Balance at 31 March 2022
-
0
Year ended 31 March 2023:
Profit and total comprehensive income
-
Issue of share capital
22
3,749,990
Balance at 31 March 2023
3,749,990

The notes on pages 17 to 34 form part of these financial statements.

ASPEN EVO HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
3,676,554
22,484
Interest paid
(42,056)
(38,994)
Income taxes refunded
-
0
161,189
Net cash inflow from operating activities
3,634,498
144,679
Investing activities
Purchase of tangible fixed assets
(93,049)
(249,842)
Proceeds from disposal of tangible fixed assets
(2)
-
Interest received
42,022
570
Net cash used in investing activities
(51,029)
(249,272)
Financing activities
Repayment of debentures
(43,047)
(136,103)
Repayment of borrowings
-
(905,943)
Dividends paid to equity shareholders
(2,000)
-
0
Net cash used in financing activities
(45,047)
(1,042,046)
Net increase/(decrease) in cash and cash equivalents
3,538,422
(1,146,639)
Cash and cash equivalents at beginning of year
4,339,977
5,486,616
Cash and cash equivalents at end of year
7,878,399
4,339,977

The notes on pages 17 to 34 form part of these financial statements.

ASPEN EVO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
1
Accounting policies
Company information

Aspen Evo Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Aspen Evo Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

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

 

Control of the parent subsidiaries was acquired by Aspen Evo Holdings Limited via a share-for-share exchange under a group restructuring. At this point in time, ultimate control of the group did change and FRS 102 requires the subsidiaries to be consolidated by applying the purchase method of accounting. The directors have departed from this requirement and accounted for the restructuring using the principles of merger accounting in consolidating the results.

 

The directors consider that the adoption of the purchase method of consolidation would be significantly misleading to the financial users of the financial statements, including it's equity shareholders.

 

Merger accounting requires that the results of the group are presented as if the group has always been in its present form and does not require a re-evaluation of fair values as at the point of acquisition. Accordingly, a merger reserve exists which represents the difference between the net assets of the group as at that date and the retained profits recognised by the group as at that date.

 

The directors have concluded that the financial statements give a true and fair view of the entity’s financial position, financial performance and cash flows.

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
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Aspen Evo Holdings Limited together with all entities controlled by the parent company (its subsidiaries). Due to the nature of the business combination carried out on 22 August 2022, and following the directors' decision concerning the accounting treatment, merger accounting has been used to consolidate the 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.

ASPEN EVO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.3
Going concern

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

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.

1.4
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.

Apartments

Income derived from the sale of leasehold interests in apartments is recognised in the period in the which the sale was completed. Ground rent is recognised in the period to which it relates.

1.5
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.

1.6
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.

ASPEN EVO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -

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
1.7
Tangible fixed assets

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

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

Plant and equipment
5% to 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.

1.8
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.

1.9
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).

1.10
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.

ASPEN EVO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
1.11
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.

1.12
Cash and cash equivalents

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

1.13
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.

ASPEN EVO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
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.

1.14
Equity instruments

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

1.15
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.

ASPEN EVO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 22 -
1.16
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.

1.17
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.

1.18
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.

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 cost and revenue 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.

ASPEN EVO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 23 -
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.

Impairment of fixed asset investments

In the financial statements of the parent undertaking the directors estimate whether there is any impairment in the carrying value of fixed asset investments in subsidiary undertakings on an annual basis with reference to future expected performance of its subsidiaries. Any such impairment is charged to profit and loss.

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 group 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).

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Installation services
17,706,900
14,052,469
Aparment sales and ground rent receivable
140,902
40,447
17,847,802
14,092,916
2023
2022
£
£
Other revenue
Interest income
42,022
570
ASPEN EVO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
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
3,500
-
Audit of the financial statements of the company's subsidiaries
20,500
-
24,000
-
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
-
-
Administration
37
31
2
-
Total
46
38
2
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,802,105
1,430,629
-
0
-
0
Social security costs
214,110
131,655
-
-
Pension costs
216,583
101,645
-
0
-
0
2,232,798
1,663,929
-
0
-
0
ASPEN EVO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
42,022
570
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
42,022
570
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
376
6,770
Other interest on financial liabilities
41,680
32,225
42,056
38,995
9
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(107,142)
-
0
Deferred tax
Origination and reversal of timing differences
159
(251,529)
Total tax credit
(106,983)
(251,529)
ASPEN EVO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Taxation
(Continued)
- 26 -

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
388,345
269,085
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
73,786
51,126
Tax effect of expenses that are not deductible in determining taxable profit
4,137
3,485
Unutilised tax losses carried forward
-
0
18,517
Change in unrecognised deferred tax assets
(6,913)
(85,727)
Effect of change in corporation tax rate
1,632
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
(106,983)
(251,529)
10
Intangible fixed assets
Group
Goodwill
Website development costs
Total
£
£
£
Cost
At 10 April 2022 and 31 March 2023
85,938
21,153
107,091
At 10 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
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
ASPEN EVO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
11
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 10 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 10 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
The company had no tangible fixed assets at 31 March 2023 or 31 March 2022.
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
3,749,980
-
0
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 10 April 2022
-
Additions
3,749,980
At 31 March 2023
3,749,980
Carrying amount
At 31 March 2023
3,749,980
At 31 March 2022
-
ASPEN EVO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
13
Subsidiaries

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

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Evoenergy Limited
1
Ordinary
54.91
45.09
Aspen Retirement Limited
1
Ordinary
100.00
-
Sunshare Community Nottingham Plc
1
Ordinary
0
100.00
Aspen Extra Living Limited
1
Ordinary
0
100.00
Aspen Retirement Living Limited
1
Ordinary
0
100.00

Aspen Evo Holdings Limited has provided a parental guarantee in relation to the following subsidiaries. Each of these subsidiaries are exempt from the requirement to be audited under the S479A to S479C of the Companies Act 2006 for each of their respective periods ending on 31 March 2023:

 

Aspen Retirement Limited

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

 

In the consolidated financial statements the following subsidiaries were combined using merger accounting as a result of a group reconstruction that took place on 22 August 2022:

 

Evoenergy Limited

Aspen Retirement Limited

14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Contract work in progress
3,309,710
390,119
-
-
Other work in progress
632,568
692,954
-
-
Finished goods and goods for resale
1,350,563
497,153
-
0
-
0
5,292,841
1,580,226
-
-
ASPEN EVO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,146,063
843,633
-
0
-
0
Gross amounts owed by contract customers
1,038,415
1,051,726
-
0
-
0
Corporation tax recoverable
124,236
17,094
-
0
-
0
Other debtors
6,885,310
7,993,906
10
-
0
Prepayments and accrued income
216,598
1,037,658
-
0
-
0
11,410,622
10,944,017
10
-
Deferred tax asset (note 20)
246,968
247,127
-
0
-
0
11,657,590
11,191,144
10
-
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Debenture loans
18
44,345
44,345
-
0
-
0
Trade creditors
2,597,106
2,268,197
-
0
-
0
Gross amounts owed to contract customers
7,524,059
3,293,368
-
0
-
0
Amounts owed to group undertakings
-
0
1,379,761
-
0
-
0
Other taxation and social security
1,230,617
114,618
-
-
Deferred income
21
841,141
953,541
-
0
-
0
Other creditors
1,722,062
66,479
-
0
-
0
Accruals and deferred income
2,107,988
907,632
-
0
-
0
16,067,318
9,027,941
-
0
-
0
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Debenture loans
18
386,126
429,173
-
0
-
0
Other borrowings
18
228,149
228,149
-
0
-
0
Accruals and deferred income
88,418
92,136
-
0
-
0
702,693
749,458
-
-
ASPEN EVO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
18
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
-
0
-
0
658,620
701,667
-
-
Payable within one year
44,345
44,345
-
0
-
0
Payable after one year
614,275
657,322
-
0
-
0

Debentures were issued by a 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).

19
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Warranties
496,329
298,212
-
-
Dilapidations
39,565
39,565
-
-
535,894
337,777
-
-
Movements on provisions:
Warranties
Dilapidations
Total
Group
£
£
£
Transfers on group reconstruction
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
ASPEN EVO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
20
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
256,637
256,637
246,968
247,127
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 10 April 2022
(247,127)
-
Charge to profit or loss
159
-
Asset at 31 March 2023
(246,968)
-
21
Deferred income
Group
Company
2023
2022
2023
2022
£
£
£
£
Other deferred income
841,141
953,541
-
-
22
Share capital
Company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £10 each
374,999
-
3,749,990
-
Group
2023
2022
2023
2022
Ordinary share capital
Issued and fully paid
Number
Number
£
£
Ordinary shares of £10 each
374,999
374,999
3,749,990
3,749,990
ASPEN EVO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
22
Share capital
(Continued)
- 32 -

The company issued 1 ordinary £10 share at par upon incorporation and subsequently issued a further 374,998 ordinary £10 shares at par during the period.

 

Issued share capital - Group

 

Under merger accounting the issued share capital of the parent undertaking is accounted for in the consolidated financial statements as being in issue in prior years.

23
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
-
-
Between two and five years
202,102
109,648
-
-
281,534
176,142
-
-
24
Related party transactions
Transactions with related parties

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

Other operating income
Sales
2023
2022
£
£
Group
Other related parties
162,842
-
Management charges
Interest payable
2023
2022
2023
2022
£
£
£
£
Group
Other related parties
225,460
-
12,254
-
ASPEN EVO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
24
Related party transactions
(Continued)
- 33 -

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

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
-
25
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
495,328
520,614
Adjustments for:
Taxation credited
(106,983)
(251,529)
Finance costs
42,056
38,995
Investment income
(42,022)
(570)
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
Increase in deferred income
-
953,541
Movements in working capital:
(Increase)/decrease in stocks
(3,712,615)
918,867
(Increase)/decrease in debtors
(359,463)
531,431
Increase/(decrease) in creditors
7,148,059
(2,830,259)
Decrease in deferred income
(112,400)
-
Cash generated from operations
3,676,554
22,484
ASPEN EVO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 34 -
26
Analysis of changes in net funds - group
10 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
4,339,977
3,538,422
7,878,399
Borrowings excluding overdrafts
(701,667)
43,047
(658,620)
3,638,310
3,581,469
7,219,779
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