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REGISTERED NUMBER: 01389099 (England and Wales)










STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2023

FOR

ERG (AIR POLLUTION CONTROL) LIMITED

ERG (AIR POLLUTION CONTROL) LIMITED (REGISTERED NUMBER: 01389099)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023










Page

Strategic Report 1

Report of the Directors 2

Report of the Independent Auditors 3

Statement of Income and Retained Earnings 5

Balance Sheet 6

Notes to the Financial Statements 7


ERG (AIR POLLUTION CONTROL) LIMITED (REGISTERED NUMBER: 01389099)

STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023


The directors present their strategic report for the year ended 28 February 2023.

Review of business performance
Overall sales reported for the year are £10,171,310. This is a 23% decline compared to sales the previous year of £13,286,884.

Underlying these sales results, the performances across the constituent business divisions present a varied picture.

- The Projects division increased its sales by 25%, but its gross margin was squeezed slightly owing to inflationary
pressure from input prices. During the year the Projects division supported the parent company by undertaking
consultancy work in support of industrial projects that was then instrumental in ERG Process Technologies Ltd
posting over £2m in sales from its own trading activities. In previous years this turnover would have normally
been captured within ERG (Air Pollution Control) Ltd's accounts.

- The Middle East division saw sales decline by over 60%, although this was tempered by a significant increase in
the gross margin rate. This sales decline was anticipated as in the last 2 years we have enjoyed exceptional
sales from one-off infrastructure investment in Qatar for the 2022 FIFA World Cup. Business in the wider Middle
East region is still very buoyant, and we continue to win new contracts and to expand our client base, most
notably in Saudi Arabia, and during the year we won contracts in Algeria for the first time. We have also recently
expanded the Middle East team to cater for the increased project workload.

- The Maintenance division has posted a great year with 22% sales growth. Gross margin was unchanged versus
the previous year, as the effects of inflation were successfully passed on.

The board is confident in asserting that the business has a solid foundation and is well-placed for future growth.The business is appropriately diversified across the dimensions of (i) technology (odour control versus sophisticated industrial gas treatment), (ii) the climate for capital investment (new equipment installations versus ongoing maintenance) and (iii) geography (domestic versus export sales) in order to weather external trading shocks.

Research and Development
ERG has carried out a number of projects qualifying for R&D tax credit. These include the development, design and implementation of novel techniques and equipment/system solutions for treating specific air pollution control challenges for a variety of customers, and also include conducting pilot scale trials on behalf of customers to establish the ideal approach for solving their pollution problems.

Risks and uncertainties
In line with standard practice in our industry, ERG accrues provisions for possible post commissioning challenges in the plants we supply and install. These provisions are kept under review by the board, and the directors think that the current provisions level offers appropriate cover for any foreseeable costs.

In order to undertake the volume of international export contracts that we win, ERG enjoys the support of our corporate bankers, HSBC. HSBC continues to support ERG through the provision of trading facilities which include credit lines for: bank guarantees, import letters of credit and working capital loans secured against confirmed export letters of credit. With ERG's many years of export experience, together with access to the expertise of HSBC's international trade relationship directors, ERG is confident that any significant risks are identified and appropriately mitigated.

Branches
The company has branches in Jordan and in Dubai.

ON BEHALF OF THE BOARD:





J R Scott-Bowden - Director


28 November 2023

ERG (AIR POLLUTION CONTROL) LIMITED (REGISTERED NUMBER: 01389099)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 28 FEBRUARY 2023


The directors present their report with the financial statements of the company for the year ended 28 February 2023.

DIVIDENDS
The directors do not recommend a final dividend.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 March 2022 to the date of this report.

J R Scott-Bowden
R J Hanson
M A Wharton
H Mcwillie
N James
E J Hooper

Other changes in directors holding office are as follows:

P I Batt - appointed 3 November 2022

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen, in accordance with the Companies Act 2006 s414C(11), to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for 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. They are 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





J R Scott-Bowden - Director


28 November 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ERG (AIR POLLUTION CONTROL) LIMITED


Opinion
We have audited the financial statements of ERG (Air Pollution Control) Limited (the 'company') for the year ended 28 February 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet and Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 28 February 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ERG (AIR POLLUTION CONTROL) LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company and industry, we considered the risk of non-compliance with laws and regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed included:

- Enquiring of management whether there were instances of non-compliance with laws and regulation or fraud;
- Review of legal expenses for evidence of fees relating to non-compliance;
- Reviewing journal entries, non-sales bank receipts and non-purchase bank payments for unusual accounting entries; and
- Reviewing contracts to confirm that revenue had been correctly recognised.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.




Colin Young BA FCA (Senior Statutory Auditor)
for and on behalf of Galloways Accounting
Statutory Auditor
Atlas Chambers
33 West Street
Brighton
East Sussex
BN1 2RE

29 November 2023

ERG (AIR POLLUTION CONTROL) LIMITED (REGISTERED NUMBER: 01389099)

STATEMENT OF INCOME AND
RETAINED EARNINGS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2023 2022
Notes £    £   

TURNOVER 3 10,171,310 13,286,884

Cost of sales (7,383,313 ) (10,214,260 )
GROSS PROFIT 2,787,997 3,072,624

Administrative expenses (3,526,096 ) (3,118,472 )
(738,099 ) (45,848 )

Other operating income 782,455 263,404
OPERATING PROFIT 5 44,356 217,556

Interest receivable and similar income 6,189 14
50,545 217,570

Interest payable and similar expenses 6 1,313 (122 )
PROFIT BEFORE TAXATION 51,858 217,448

Tax on profit 7 22,200 529
PROFIT FOR THE FINANCIAL YEAR 74,058 217,977

Retained earnings at beginning of year 941,636 834,394

Dividends 8 - (110,735 )

RETAINED EARNINGS AT END OF YEAR 1,015,694 941,636

ERG (AIR POLLUTION CONTROL) LIMITED (REGISTERED NUMBER: 01389099)

BALANCE SHEET
28 FEBRUARY 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 135,734 114,190
Investments 10 74,114 74,114
209,848 188,304

CURRENT ASSETS
Stocks 11 1,143 2,219
Debtors 12 6,021,068 4,876,180
Cash at bank and in hand 1,194,598 1,103,869
7,216,809 5,982,268
CREDITORS
Amounts falling due within one year 13 6,269,903 5,028,484
NET CURRENT ASSETS 946,906 953,784
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,156,754

1,142,088

PROVISIONS FOR LIABILITIES 15 131,060 190,452
NET ASSETS 1,025,694 951,636

CAPITAL AND RESERVES
Called up share capital 16 10,000 10,000
Retained earnings 17 1,015,694 941,636
SHAREHOLDERS' FUNDS 1,025,694 951,636

The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2023 and were signed on its behalf by:





J R Scott-Bowden - Director


ERG (AIR POLLUTION CONTROL) LIMITED (REGISTERED NUMBER: 01389099)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023


1. STATUTORY INFORMATION

ERG (Air Pollution Control) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number: 01389099

Registered office: Bridge House Environmental Centre
Bridge House Lane
Five Oaks Road
Slinfold
West Sussex
RH13 0QW

The presentation currency of the financial statements is the Pound Sterling (£).


The company's principal activity is the provision of specialist air pollution control, gas treatment and odour control packages.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirement of paragraph 33.7.

Preparation of consolidated financial statements
The financial statements contain information about ERG (Air Pollution Control) Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, ERG Process Technologies Limited, Bridge House Environmental Centre, Bridge House Lane, Five Oaks Road, Slinfold, West Sussex RH13 0QW.

Significant judgements and estimates
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

Construction contract turnover
Turnover from contracts is calculated using an estimation of the outcome of ongoing contracts and the cost towards their completion based on management's judgement.

ERG (AIR POLLUTION CONTROL) LIMITED (REGISTERED NUMBER: 01389099)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Maintenance contracts
When the outcome of a transaction can be estimated reliably, turnover from the start date of the period of the maintenance contract is recognised by reference to the stage of completion at the balance sheet date on a straight line basis over the period of the contract. Stage of completion is measured by reference to the maintenance contract end date.

Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable.

Construction contracts
Revenue from contracts for the provision of services is recognised by reference to the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total forecast costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

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

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 33% on cost
Fixtures and fittings - 33% on cost
Motor vehicles - 33% on cost
Equipment - 33% on cost

Tangible fixed assets are initially measured at cost and subsequently measured at cost less accumulated depreciation.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Recognition of financial instruments
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost less any impairment.

De-recognition of financial instruments
Financial instruments are de-recognised only when the contractual rights to the cash flows from the instrument expire, are settled, or transferred.


ERG (AIR POLLUTION CONTROL) LIMITED (REGISTERED NUMBER: 01389099)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Projects 7,811,615 11,632,443
Maintenance 2,305,506 1,592,425
Thermal oxidisers 54,189 62,016
10,171,310 13,286,884

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 8,627,608 7,935,063
Middle East 1,543,702 5,351,821
10,171,310 13,286,884

An analysis of turnover by category of revenue is given below:
20232022
£   £   
Rendering of services10,171,31013,286,884

Rendering of services includes £7,811,615 (2022: £11,632,443) relating to turnover from construction contracts.

ERG (AIR POLLUTION CONTROL) LIMITED (REGISTERED NUMBER: 01389099)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,347,580 2,896,523
Social security costs 380,384 324,177
Other pension costs 173,221 160,747
3,901,185 3,381,447

The average number of employees during the year was as follows:
2023 2022

Technical Staff 49 55
Sales and Administrative Staff 18 18
67 73

2023 2022
£    £   
Directors' remuneration 460,128 402,574
Directors' pension contributions to money purchase schemes 27,644 26,125

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 6 6

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 103,825 102,221
Pension contributions to money purchase schemes 7,268 7,156

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 167,675 177,364
Depreciation - owned assets 37,570 29,024
Profit on disposal of fixed assets (5,208 ) (833 )
Auditors' remuneration 34,510 15,000
Foreign exchange differences (53,922 ) 154,138

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest (1,313 ) 122

ERG (AIR POLLUTION CONTROL) LIMITED (REGISTERED NUMBER: 01389099)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


7. TAXATION

Analysis of the tax credit
The tax credit on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 2,315 31,470
Over provision in prior year (31,470 ) (48,142 )
Total current tax (29,155 ) (16,672 )

Deferred tax 6,955 16,143
Tax on profit (22,200 ) (529 )

UK corporation tax has been charged at 19% .

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 51,858 217,448
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

9,853

41,315

Effects of:
Expenses not deductible for tax purposes 10 55
Income not taxable for tax purposes (990 ) -
Capital allowances in excess of depreciation (711 ) -
Depreciation in excess of capital allowances - 6,243
Adjustments to tax charge in respect of previous periods (31,470 ) (48,142 )
Timing difference 1,108 -
Total tax credit (22,200 ) (529 )

From 1 April 2023, the corporation tax rate increased from 19% to 25%. Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements.

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim - 110,735

ERG (AIR POLLUTION CONTROL) LIMITED (REGISTERED NUMBER: 01389099)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


9. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor
machinery fittings vehicles Equipment Totals
£    £    £    £    £   
COST
At 1 March 2022 118,054 64,596 87,624 403,394 673,668
Additions 20,024 - 18,995 20,095 59,114
Disposals - - (22,850 ) - (22,850 )
At 28 February 2023 138,078 64,596 83,769 423,489 709,932
DEPRECIATION
At 1 March 2022 115,146 32,810 87,585 323,937 559,478
Charge for year 3,026 14,467 3,789 16,288 37,570
Eliminated on disposal - - (22,850 ) - (22,850 )
At 28 February 2023 118,172 47,277 68,524 340,225 574,198
NET BOOK VALUE
At 28 February 2023 19,906 17,319 15,245 83,264 135,734
At 28 February 2022 2,908 31,786 39 79,457 114,190

10. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 March 2022
and 28 February 2023 74,114
NET BOOK VALUE
At 28 February 2023 74,114
At 28 February 2022 74,114

The company's investments at the Balance Sheet date in the share capital of companies include the following:

APC Process Engineering Limited
Registered office: Bridge House Environmental Centre, Bridge House Lane, Five Oaks Road, Slinfold, West Sussex RH13 0QW
Nature of business: Dormant company
%
Class of shares: holding
Ordinary 100.00

ERG (Plastic Fabrication) Limited
Registered office: Bridge House Environmental Centre, Bridge House Lane, Five Oaks Road, Slinfold, West Sussex RH13 0QW
Nature of business: Supply of plastic fabrications
%
Class of shares: holding
Ordinary 100.00

11. STOCKS
2023 2022
£    £   
Raw materials 1,143 2,219

ERG (AIR POLLUTION CONTROL) LIMITED (REGISTERED NUMBER: 01389099)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 2,303,619 1,388,527
Amounts owed by group undertakings 2,081,855 1,771,767
Amounts recoverable on contract 1,504,353 1,517,983
Other debtors 9,787 5,388
Tax - 43,908
VAT - 21,744
Prepayments and accrued income 121,454 126,863
6,021,068 4,876,180

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Payments on account 3,478,795 2,101,567
Trade creditors 1,182,993 879,681
Amounts owed to group undertakings 1,060,164 1,729,084
Tax 2,315 31,470
Social security and other taxes 86,447 81,844
VAT 94,910 -
Other creditors 54,996 25,578
Directors' current accounts 2,400 1,292
Accruals and deferred income 306,883 177,968
6,269,903 5,028,484

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 42,301 177,538

15. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 31,060 24,105
Provision against contracts 100,000 166,347
131,060 190,452

Deferred Other
tax provisions
£    £   
Balance at 1 March 2022 24,105 166,347
Charge/(credit) to Statement of Comprehensive Income during year 6,955 (66,347 )
Balance at 28 February 2023 31,060 100,000

The net deferred tax liability expected to reverse in 2023/24 is £9,073. This relates to the reversal of timing differences on acquired tangible assets and capital allowances through depreciation.

The other provision is an onerous contract provision for contracts expected to make a loss on completion. The timing of completion is uncertain.

ERG (AIR POLLUTION CONTROL) LIMITED (REGISTERED NUMBER: 01389099)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
10,000 Ordinary £1 10,000 10,000

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

17. RESERVES
Retained
earnings
£   

At 1 March 2022 941,636
Profit for the year 74,058
At 28 February 2023 1,015,694

18. PENSION COMMITMENTS

The company operates a defined contribution pension plan for its employees. The amount recognised as an expense in the year was £173,221 (2022: £160,747).

19. ULTIMATE PARENT COMPANY

ERG Process Technologies Ltd is regarded by the directors as being the company's ultimate parent company.

20. CONTINGENT LIABILITIES

At the year end, the company had performance guarantee bonds in place relating to projects that took place during the year. The bonds outstanding at the year end total £887,705 (2022: £1,401,279).

At the year end, the company had given bank guarantees for other group companies. At 28 February 2023, the total borrowings of all other group companies was £2,145,337 (2022: £2,874,612).

21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

During the year, the company made advances of £25,803 (2022: £51,538) to a director and they made repayments of £25,803 (2022: £90,700). At the year end, the director owed the company £nil (2022: £nil). The advances were interest-free, unsecured and repayable on demand.

22. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

23. PARENT COMPANY

The parent of the smallest group in which the company is a member and for which consolidated accounts are produced is ERG Process Technologies Limited. Its registered office is Bridge House Environmental Centre, Bridge House Lane, Five Oaks Road, Slinfold, West Sussex RH13 0QW and this is the address from which group accounts can be obtained.