eSynergy Solutions Limited
Annual Report and Financial Statements
For the year ended 30 June 2023
Company Registration No. 04235243 (England and Wales)
eSynergy Solutions Limited
Company Information
Director
PJ Crompton
Company number
04235243
Registered office
New London House
6 London Street
London
EC3R 7LP
Auditors
Moore Kingston Smith LLP
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
eSynergy Solutions Limited
Contents
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 8
Profit and loss account
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 22
eSynergy Solutions Limited
Strategic Report
For the year ended 30 June 2023
Page 1

The director presents the strategic report and financial statements for the year ended 30 June 2023.

Fair review of the business

Turnover has picked up from last year, rising from £23,556 859 to £27,775,106. As we pivoted our business model we have had to learn new ways of working and hire new skills to achieve the outcomes desired by changing our business model.

 

Our new business model has proved extremely successful so far. We retained over 80% of our existing customers, secured contracts with an influx of new customers and increased our Gross Profit Margin from 21.9% to 29.2%. This has led to a rise in Gross Profit to £8,100,846 from last year’s £5,157,908.

 

Our headcount increased by 6% as we continued to strengthen our Leadership team..

 

Our customer spread is primarily in the enterprise sector and we have a fair spread without any reliance on any one customer. Our primary focus continues to be identifying and delivering measurable value to agreed outcomes and deliverables across our customers and Statements of Work.

 

We continue to adhere to ISO 27001 and ISO 9001 certifications that demonstrate we have thorough and robust working practices; this has led us to securing multiple contracts with significant value.

Principal risks and uncertainties

The principal risks and uncertainties faced by the company are primarily external and largely outside of our direct control.

 

Brexit has further hindered our ability to attract talent based in the UK because of the drain on tech skills to Europe. Conversely, Covid lead us to improve our ability to deliver outcomes remotely and globally, hence actually widening the talent pool in many cases.

 

The recent banking crisis shines light on the risks within the financial services industry to which it would seem no one is immune. We have strong credit control procedures which have led to healthy debtor day ratios below industry average and continue to be supported & serviced well by our invoice discount and banking partner, National Westminster Bank to mitigate these risks.

 

Hybrid /​ remote working causes risks and uncertainties within our communities and hinders upskilling, learning & building relationships. We have addressed this by investing in the best of breed collaboration tools such as clack, Trello and others and facilitating regular community events face to face.


There is a significant lack of global talent for the work we deliver which is still one of our biggest risks and uncertainties. We are investing significantly in our attraction, onboarding and community building to counter this.

War in Ukraine:

The company has seen no direct impact as a result of the war in Ukraine; our business supply chain continues to be stable.

 

Brexit:

The company continues to prosper in a post Brexit era, with readily available access to our associates.

eSynergy Solutions Limited
Strategic Report (Continued)
For the year ended 30 June 2023
Page 2
Financial risk management objectives and policies

The business' principal financial instruments comprise of bank balances, confidential invoice discount facility, trade debtors, trade creditors, development loans, Director loans and finance lease agreements. The main purpose of these instruments is to finance the business' operations. After review of availability and pricing of working capital funding in the UK, the Directors concluded that the mix of financial instruments is correct but regular review of the suppliers of banking arrangements and confidential invoice discount facilities is undertaken. We aspirations to move in value based consulting due top higher margins and revenues it will be imperative we look for banking solutions to better suit this model.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers, prior to supply of recruitment services and the regular monitoring of amounts outstanding for both time, expressed as customers' payment terms, and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. Payment runs are produced bi-monthly and controls are in place to ensure correctly received and authorised invoices are settled within payment terms.

The business is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed by ensuring that there are sufficient funds to meet the payments.

Key performance indicators

The key financial performance indicators of the Company are:

 

2023         2022

£         £

 

Turnover         27,775,106     23,556,859

Gross Profit         8,100,846 5,157,908

Gross Profit Margin     29.2%     21.9%

Future developments

The company has a well-established and growing firm client base within the enterprise sector. With our mission to link the value of what we deliver with the customers value will lead to deeper and stronger relationships with existing & new customers.

We expect to see significant growth in our margins and growth within existing and new customers, as we link the value of the work we do back to our customers value.

The company now has an established team and highly engaged community of tech experts delivering value to our customers. We expect to add further to these communities with more strategic appointments in 2024.

On behalf of the board

PJ Crompton
Director
25 October 2023
eSynergy Solutions Limited
Director's Report
For the year ended 30 June 2023
Page 3

The director presents his annual report and financial statements for the year ended 30 June 2023.

Principal activities

The principal activity of the company continued to be that of design and implemention of technology solutions that support our clients’ business objectives. Services revolve around 4 core areas: Cloud & Platforms, Data, Business Agility Solutions and Technical Agility Solutions.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £1,058,242 (2021: £647,500). The director does not recommend payment of a further dividend.

Director

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

PJ Crompton
LC Clark
(Resigned 11 July 2022)
Research and development

The company did not carry out any research or development activities in the year to 30 June 2023.

Auditor

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

 

 

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

eSynergy Solutions Limited
Director's Report (Continued)
For the year ended 30 June 2023
Page 4
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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
PJ Crompton
Director
25 October 2023
eSynergy Solutions Limited
Independent Auditor's Report
To the Members of eSynergy Solutions Limited
Page 5
Opinion

We have audited the financial statements of eSynergy Solutions Limited (the 'company') for the year ended 30 June 2023 which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 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 director 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 director is 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.

eSynergy Solutions Limited
Independent Auditor's Report (Continued)
To the Members of eSynergy Solutions Limited
Page 6

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Director's 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 director

As explained more fully in the Director's Responsibilities Statement, the director is 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 director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

eSynergy Solutions Limited
Independent Auditor's Report (Continued)
To the Members of eSynergy Solutions Limited
Page 7
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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

 

 

eSynergy Solutions Limited
Independent Auditor's Report (Continued)
To the Members of eSynergy Solutions Limited
Page 8
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.

Paul Springfield (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
25 October 2023
Chartered Accountants
Statutory Auditor
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
eSynergy Solutions Limited
Profit and Loss Account
For the year ended 30 June 2023
Page 9
2023
2022
Notes
£
£
Turnover
3
27,775,106
23,556,859
Cost of sales
(19,674,260)
(18,398,951)
Gross profit
8,100,846
5,157,908
Administrative expenses
(6,593,742)
(4,740,222)
Operating profit
4
1,507,104
417,686
Interest receivable and similar income
8
6,344
232
Interest payable and similar expenses
9
(81,235)
(29,173)
Profit before taxation
1,432,213
388,745
Taxation
10
(300,206)
(70,020)
Profit and total comprehensive income for the financial year
1,132,007
318,725

The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.

eSynergy Solutions Limited
Balance Sheet
As at 30 June 2023
Page 10
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
93,219
90,421
Tangible assets
13
207,544
96,525
300,763
186,946
Current assets
Debtors
14
5,275,940
3,475,372
Cash at bank and in hand
599,277
582,965
5,875,217
4,058,337
Creditors: amounts falling due within one year
15
(5,448,880)
(3,276,942)
Net current assets
426,337
781,395
Total assets less current liabilities
727,100
968,341
Creditors: amounts falling due after more than one year
16
(40,895)
(355,901)
Net assets
686,205
612,440
Capital and reserves
Called up share capital
19
100
100
Capital redemption reserve
10
10
Profit and loss reserves
686,095
612,330
Total equity
686,205
612,440
The financial statements were approved by the board of directors and authorised for issue on 25 October 2023 and are signed on its behalf by:
PJ Crompton
Director
Company Registration No. 04235243
Esynergy Solutions Limited
eSynergy Solutions Limited
Statement of Changes in Equity
For the year ended 30 June 2023
Page 11
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2021
100
10
941,105
941,215
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
-
318,725
318,725
Dividends
11
-
-
(647,500)
(647,500)
Balance at 30 June 2022
100
10
612,330
612,440
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
1,132,007
1,132,007
Dividends
11
-
-
(1,058,242)
(1,058,242)
Balance at 30 June 2023
100
10
686,095
686,205
eSynergy Solutions Limited
Notes to the Financial Statements
For the year ended 30 June 2023
Page 12
1
Accounting policies
Company information

eSynergy Solutions Limited is a private company limited by shares incorporated in England and Wales. The registered office and business address is New London House, 6 London Street, London, EC3R 7LP.

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 pound.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Accounting basis of preparation

The company is a qualifying entity for the purposes of FRS 102, being a member of a group. where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

1.3
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and for a period of not less than 12 months following the approval of these financial statements. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover

Turnover represents amounts receivable for services net of VAT and trade discounts.

Fee income represents revenue earned under a variety of contracts to provide technology consultancy services. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax.

eSynergy Solutions Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 13
1.5
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:

Software
25% straight line basis
1.6
Tangible fixed assets

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

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

Fixtures, fittings & equipment
25% straight line basis
Motor vehicles
25% straight line basis

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 credited or charged to profit or loss.

1.7
Cash and cash equivalents

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

1.8
Financial instruments

All of the company's financial assets and liabilities are basic and measured at amortised cost.

1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recongised as liabilities once they are no longer at the discretion of the company.
1.10
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

eSynergy Solutions Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 14
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 when the company has 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.

1.11
Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

1.12
Leases

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

 

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

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

1.13
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.

eSynergy Solutions Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 15
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

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.

Useful economic lives of tangible fixed assets

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of the property, plant and equipment and note 1.6 for the useful economic lives for each class of asset.

Useful economic lives of intangible fixed assets

The annual amortisation charge for intangible assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. Goodwill impairment reviews are also performed annually. These reviews require an estimation of the value in use of the cash generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise for the cash generating unit and a suitable discount rate to calculate present value. See note 12 for the carrying amount of the intangible assets and note 1.5 for the useful economic lives for each class of asset.

Recoverable value of trade debtors

The company makes an estimate of the recoverable value of trade debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 14 for the net carrying amount of the debtors and associated impairment provision.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Consultancy services
27,639,063
23,405,492
Permanent placements
136,043
151,367
27,775,106
23,556,859
eSynergy Solutions Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
3
Turnover and other revenue
(Continued)
Page 16
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
22,795,826
20,893,218
Europe
3,027,383
2,663,641
North America
1,951,897
-
27,775,106
23,556,859
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
34,393
34,092
Depreciation of tangible fixed assets held under finance leases
17,355
11,570
Loss on disposal of tangible fixed assets
350
140
Amortisation of intangible assets
33,318
22,986
Operating lease charges
182,333
146,400
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 company
26,000
23,000
6
Employees

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

2023
2022
Number
Number
Directors
1
2
Sales
13
11
Administration
20
18
34
31
eSynergy Solutions Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
6
Employees
(Continued)
Page 17

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,856,083
2,593,554
Social security costs
481,563
320,909
Pension costs
81,904
65,497
4,419,550
2,979,960
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
16,525
9,000
Company pension contributions to defined contribution schemes
18,000
18,000
34,525
27,000
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
6,344
232
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
19,568
11,207
Other interest
61,667
17,966
eSynergy Solutions Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 18
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
300,206
70,020
Total tax charge
300,206
70,020

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

2023
2022
£
£
Profit before taxation
1,432,213
388,745
Expected tax charge based on a corporation tax rate of 25.00% (2022 - 19.00%)
358,053
73,862
Tax effect of expenses that are not deductible in determining taxable profit
40,865
9,634
Effect of change in corporation tax rate
(65,972)
-
0
Group relief
(1,507)
(956)
Permanent capital allowances in excess of depreciation
(31,773)
(18,997)
Depreciation on assets not qualifying for tax allowances
540
6,477
Tax charge for the year
300,206
70,020
11
Dividends
2023
2022
£
£
Final paid
1,058,242
647,500
eSynergy Solutions Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 19
12
Intangible fixed assets
Software
£
Cost
At 1 July 2022
115,661
Additions
36,116
At 30 June 2023
151,777
Amortisation and impairment
At 1 July 2022
25,240
Amortisation charged for the year
33,318
At 30 June 2023
58,558
Carrying amount
At 30 June 2023
93,219
At 30 June 2022
90,421
13
Tangible fixed assets
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
Cost
At 1 July 2022
105,346
69,419
174,765
Additions
164,837
-
0
164,837
Disposals
(6,293)
-
0
(6,293)
At 30 June 2023
263,890
69,419
333,309
Depreciation and impairment
At 1 July 2022
66,670
11,570
78,240
Depreciation charged in the year
34,393
17,355
51,748
Eliminated in respect of disposals
(4,223)
-
0
(4,223)
At 30 June 2023
96,840
28,925
125,765
Carrying amount
At 30 June 2023
167,050
40,494
207,544
At 30 June 2022
38,676
57,849
96,525
eSynergy Solutions Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
13
Tangible fixed assets
(Continued)
Page 20

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

2023
2022
£
£
Motor vehicles
57,849
69,419
Depreciation charge for the year in respect of leased assets
17,355
11,570
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,814,348
2,221,832
Amounts owed by group undertakings
17,639
9,100
Other debtors
111
123,501
Prepayments and accrued income
1,443,842
1,120,939
5,275,940
3,475,372
15
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
-
0
96,600
Obligations under finance leases
17
9,106
9,106
Trade creditors
1,869,970
1,636,437
Corporation tax
300,206
70,020
Other taxation and social security
269,317
118,410
Other creditors
1,906,688
776,829
Accruals and deferred income
1,093,593
569,540
5,448,880
3,276,942

The Royal Bank of Scotland PLC has fixed and floating charges over all assets of the business. The company's invoice discount facility is also secured by personal guarantees and indemnities from PJ Crompton, a director of the company.

eSynergy Solutions Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 21
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
-
0
305,900
Obligations under finance leases
17
40,895
50,001
40,895
355,901

The previous CBIL's loan obligation was paid off in full during the year.

17
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
9,106
9,106
In two to five years
40,895
50,001
50,001
59,107

Finance lease payments represent repayments payable by the company for a motor vehicle. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
81,904
65,497

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

Contributions outstanding at the year end total £11,897 (2022: £nil).

19
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
100,000 Ordinary Shares of 0.1p each
100
100

There is a single class of ordinary shares, there are no restrictions on distributions or repayment of capital.

eSynergy Solutions Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 22
20
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
93,177
112,138
Between two and five years
163,078
253
256,255
112,391
21
Related party transactions

As a wholly owned subsidiary of eSynergy Holdings Limited, the company has elected to take advantage of the exemption from the requirements of FRS 102 to disclose transactions with other members of that group.

 

There were no other related party transactions during the year.

 

22
Ultimate controlling party

The parent undertaking is eSynergy Holdings Limited, a company incorporated in England and Wales. eSynergy Holdings Limited heads the largest and smallest group for which consolidated accounts including the company's' results are available. A copy of these consolidated financial statements can be obtained from Companies House. The ultimate controlling party is PJ Crompton by virtue of his majority shareholding in the parent company. The registered address of both companies is New London House, 6 London Street, London, EC3R 7LP.

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