Registration number:
Synergy Group Holdings Limited
(formerly
for the Year Ended 31 March 2022
Synergy Group Holdings Limited
(formerly
Contents
Company Information |
|
Strategic Report |
|
Director's Report |
|
Statement of Director's Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account and Statement of Retained Earnings |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Cash Flows |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Synergy Group Holdings Limited
(formerly
Company Information
Director |
M Knott |
Registered office |
|
Bankers |
|
Auditors |
|
Synergy Group Holdings Limited
(formerly
Strategic Report for the Year Ended 31 March 2022
The director presents his strategic report for the year ended 31 March 2022.
Principal activity
The principal activity of the group is that of an Investment Holding Company. The group operates within construction.
Fair review of the business
After the global pandemic and the financial hit we took from a client who refused to pay almost £3M owed to us, we were forced to look at the structure of the group and refocus the business’ to ensure we continued to deliver the best in class service and as such, we registered Synergy Construction Limited and Synergy Interior Design Limited, to take the bulk of work normally carried out within the Synergy Group. This allowed us to concentrate our dedicated resources to specific industries. We brought in equity partners for Synergy Interior Design Limited, allowing them to manage the day to day running of the business which they have done a fantastic job, growing the business and increasing the client list.
Synergy Development companies continue to grow with developments at different stages, with schemes in Hove, Leyland, Cambridge, and Ireland. Planning was achieved at Leyland, with more than 220,000 sqft of flexible light industrial accommodation approved.
Woodmaster Joinery has continued to grow and deliver the finest bespoke joinery.
With the financial impact of not being paid £3M by our client, even though we successfully won our claim in full through the adjudication process, in accordance with our contract, a lot of our management time and significant personal investment by our founder and CEO, Mr Martin Knott, it was clear we could not maintain the main contracting business (Synergy Property Deisgn Consultants Limited) or the sub-contracting M&E business (Synergy M&E Limited), as the impact on both was just far too much to continue, and so the devastating decision to put both companies into liquidation was taken, even though, through no fault of our own, and neither company ever having any debt up to this point we were left with no alternative.
Even with such a significant loss, we continued to trade, make a profit and deliver developments, whilst also looking for new additions to the group.
Strategy
The success of the group is reliant on good contract management. The selection, pricing and managing of contracts is key, we maintain low fixed overheads and therefore the contract success determines our profitability in any given period. We continue to diversify the jobs and specialist build works that we take on to mitigate our exposure to risk in this area, our delivery on build quality and contract overall will continue to be our key driver.
The external environment will be key in this strategy and with the uncertainties facing us like every business our strategy will continually be revisited and assessed.
We continue to consider new company additions to the group, which we feel will add value and diversification to the group of companies and our clients.
Synergy Group Holdings Limited
(formerly
Strategic Report for the Year Ended 31 March 2022
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2022 |
2021 |
Turnover |
£ |
8,685,361 |
19,947,004 |
Gross Profit % |
% |
9 |
9 |
(Loss)/profit after tax |
£ |
(279,976) |
622,672 |
Net current assets |
£ |
1,714,826 |
1,294,288 |
Shareholder funds |
£ |
950,516 |
1,380,392 |
Principal risks and uncertainties
The company continually and actively reviews the risks and uncertainties facing the group, this is embedded within the group’s policies, procedures, and internal controls. With the impact of the nonpayment by our client, we have restructured the companies within the group to help minimize such a situation happening again, whilst ensuring we can continue to deliver such quality projects for our existing and future clients..
The rising rate of inflation will inevitably put pressure on costs, and we will need to actively manage and mitigate this to ensure our margins remain tightly managed.
Cash flow is key, as in any business, but the nature of construction means that it is a high risk and we actively manage and monitor this carefully, a strong cash reserve is necessary in the environment and industry.
I am satisfied that the group’s exposure to risk from interest rates and liquidity are adequately managed and mitigated.
Approved and authorised by the
......................................... |
Synergy Group Holdings Limited
(formerly
Director's Report for the Year Ended 31 March 2022
The director presents his report and the for the year ended 31 March 2022.
Change of company name
The company changed its name from
Directors of the group
The directors who held office during the year were as follows:
Future developments
Please refer to note 30. We will continue to actively engage with our clients and suppliers closely to ensure the successful delivery of contracts undertaken. We will continue to work to our high build standard of which our customers are accustomed to, whilst actively managing and mitigating the rising cost of inflation, Covid disruptions and issues in the supply chain of material and labour with Brexit.
Managing costs carefully in the immediate future with rising inflation will be key. As always tight contract management and control will be at the forefront of our management with rigorous cash flow management.
In the immediate future we will service our existing long-term contracts and look to take on new specialised projects. The group are continually looking for new investment opportunities and ventures with a view of its core business activities as its driver.
Disclosure of information to the auditor
The director has taken 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 auditor is aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.
Approved and authorised by the
......................................... |
Synergy Group Holdings Limited
(formerly
Statement of Director's Responsibilities
The director acknowledges his responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Synergy Group Holdings Limited
(formerly
Independent Auditor's Report to the Members of Synergy Group Holdings Limited
Opinion
We have audited the financial statements of Synergy Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2022, which comprise the Consolidated Profit and Loss Account and Statement of Retained Earnings, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows, Statement of Cash Flows, 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 group's and the parent company's affairs as at 31 March 2022 and of the group's loss 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.
Emphasis of matter - Subsequent Events
We draw attention to Note 30 within the financial statements which details two subsidiaries within the group going in to liquidation post year end and the impact that has on the figures included within these financial statements.
Our opinion is not modified in respect of this matter.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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.
Synergy Group Holdings Limited
(formerly
Independent Auditor's Report to the Members of Synergy Group Holdings Limited
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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Director's Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities [set out on page 5], 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 have no realistic alternative but to do so.
Auditor 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.
Synergy Group Holdings Limited
(formerly
Independent Auditor's Report to the Members of Synergy Group Holdings Limited
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Irregularities, including fraud, are instances of non-compliance; acts of omission or commission by the entity, either intentional or unintentional, which are contrary to the prevailing laws and regulations.
We obtained an understanding of the legal and regulatory frameworks within which the company (and group) operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Financial Reporting Standard applicable in the UK and Ireland (FRS 102). In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the company’s (and group’s) ability to operate for example General Data Protection Regulation (GDPR), taxation legislation, and employment legislation.
Based on our understanding of the entity, the industry it operates in, and external environment we identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
Our audit procedures to respond to these risks included, but were not limited to, the following:
• Review of the financial statements and disclosures to underlying supporting documentation.
• Obtained an understanding of laws and regulations that affect the company both directly and indirectly in the financial statements and its operations.
• Review and enquiry into journal entries processed during the period under review.
• Evaluation and consideration of areas where the potential for management bias exists.
• Enquiries of management about their own identification and assessment of the risks of irregularities, considering the adequacy of the internal controls in place to manage this via walk through tests and review.
• Assessing significant judgements and review of accounting estimates, with particular emphasis on accrued and deferred revenue balances.
• Enquiries of management, including in relation to future profits and cash flow forecasts and perusal of minutes of board and management meetings.
• Performance of analytical review and reviewing the findings of testing, including specific review of legal and professional accounts.
• Overall considering the consistency of discussions had with the findings and evidence obtained throughout the audit.
Owing to the inherent limitations of an audit there is an unavoidable risk that we may not have detected some material misstatements within the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. Inherent limitations in the audit procedures described above, as irregularities in relation to fraud, are by nature difficult to detect as it would likely have occurred through deliberate concealment and could involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Synergy Group Holdings Limited
(formerly
Independent Auditor's Report to the Members of Synergy Group Holdings Limited
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.
......................................
For and on behalf of
Unit 1 The Cam Centre
Wilbury Way
Herts
SG4 0TW
Synergy Group Holdings Limited
(formerly
Consolidated Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 March 2022
Note |
2022 |
2021 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating (loss)/profit |
( |
|
|
Other interest receivable and similar income |
|
|
|
Amounts written off investments |
( |
( |
|
Interest payable and similar charges |
( |
( |
|
(97,988) |
(425,015) |
||
(Loss)/profit before tax |
( |
|
|
Taxation |
|
|
|
(Loss)/profit for the financial year |
( |
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
( |
|
|
Retained earnings brought forward |
1,380,492 |
1,037,820 |
|
Dividends paid |
( |
( |
|
Retained earnings carried forward |
950,516 |
1,380,492 |
Synergy Group Holdings Limited
(formerly
(Registration number: 10247997)
Consolidated Balance Sheet as at 31 March 2022
Note |
2022 |
(As restated) |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investments |
|
|
|
Other financial assets |
- |
27,675 |
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
100 |
100 |
|
Retained earnings |
950,516 |
1,380,492 |
|
Equity attributable to owners of the company |
950,616 |
1,380,592 |
|
Shareholders' funds |
950,616 |
1,380,592 |
Approved and authorised by the
......................................... |
Synergy Group Holdings Limited
(formerly
(Registration number: 10247997)
Balance Sheet as at 31 March 2022
Note |
2022 |
(As restated) |
|
Fixed assets |
|||
Investments |
|
|
|
Other financial assets |
- |
27,675 |
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets/(liabilities) |
|
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
100 |
100 |
|
Retained earnings |
1,480,369 |
10,413 |
|
Shareholders' funds |
1,480,469 |
10,513 |
As permitted by Section 408 Companies Act 2006, the company has not presented its own profit and loss account. The company made a profit after tax for the financial year of £1,619,956 (2021 - profit of £287,988).
Approved and authorised by the
......................................... |
Synergy Group Holdings Limited
(formerly
Consolidated Statement of Cash Flows for the Year Ended 31 March 2022
Note |
2022 |
2021 |
|
Cash flows from operating activities |
|||
(Loss)/profit for the year |
( |
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Impairment of fixed asset investments |
|
|
|
Profit from disposals of investments |
( |
- |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
( |
( |
|
( |
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Decrease in trade debtors |
|
|
|
Decrease in trade creditors |
( |
( |
|
Cash generated from operations |
( |
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
( |
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Acquisition of intangible assets |
- |
( |
|
Acquisitions of investments in joint ventures and associates |
( |
- |
|
Proceeds from tangible fixed assets disposed |
|
- |
|
Net cash flows from investing activities |
|
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from bank borrowing draw downs |
- |
|
|
Proceeds from other borrowing draw downs |
|
|
|
Payments to finance lease creditors |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
|
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 April |
|
|
Synergy Group Holdings Limited
(formerly
Consolidated Statement of Cash Flows for the Year Ended 31 March 2022
Note |
2022 |
2021 |
|
Cash and cash equivalents at 31 March |
1,341,619 |
2,965,981 |
Synergy Group Holdings Limited
(formerly
Statement of Cash Flows for the Year Ended 31 March 2022
Note |
2022 |
2021 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Financial instrument net gains through profit and loss |
|
|
|
Finance income |
( |
( |
|
Finance costs |
- |
|
|
( |
( |
||
Working capital adjustments |
|||
Increase in trade debtors |
( |
( |
|
Decrease in trade creditors |
( |
( |
|
Net cash flow from operating activities |
( |
( |
|
Cash flows from investing activities |
|||
Acquisition of subsidiaries |
( |
( |
|
Acquisition of intangible assets |
- |
( |
|
Dividend income |
|
|
|
Acquisitions of investments in joint ventures and associates |
( |
- |
|
Net cash flows from investing activities |
|
|
|
Cash flows from financing activities |
|||
Dividends paid |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 April |
|
|
|
Cash and cash equivalents at 31 March |
1,249,824 |
201,117 |
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The company was formerly known as Synergy Property Holdings Limited.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention.
The Financial statements are prepared in sterling, which is the functional currency of the entity rounded to the nearest £1.
Basis of consolidation
These consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2022.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Subsidiaries are recorded at cost. Where a subsidiary is dormant, the cost of incorporation and hence cost of the subsidiary is only recorded where the company is trading. If the subsidiary is dormant the cost is reduced to nil to reflect the investment at the lower of cost and net realisable value.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Going concern
As detailed in the strategic report, directors report and post balance sheet event note (note 30) the group have been through a difficult trading period and reported a loss overall for the group. The group have seen restructuring and strategies revised resulting in newly trading companies in operation post year end. The Director is satisfied that the group will return to profitability based on post year end performance, work completed and work booked in 2023 and 2024 across the group. As such the group accounts have been prepared on a going concern basis.
Prior period errors
Refer to note 14 for the restatement of comparative amount.
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
The group accounts for long term contracts under FRS102, specifically using the percentage of completion method with reference to surveys of work performed. This is used to arrive at the percentage complete of the job, this percentage is applied to the contract costs and these are used to ascertain the contract values - see revenue accounting policy for more details. The nature of this involves significant judgement which can change as time progresses. Management review this monthly and taking in to account factors in the job to ensure that the long term contracts are accounted for in accordance with FRS102 in all aspects. |
Revenue recognition
The company receives income in the form of dividends from its subsidaries, fixed asset investments and associates. Dividends are recorded when voted and agreed by the board.
Bank interest received is accounted for on an accruals basis.
Group
Turnover comprises the fair value of the consideration receivable for the provision of services, goods and rental income in the ordinary course of the group's activities. Turnover is shown as net of sales/value added tax, returns, rebates and discounts.
The group recognises revenue when:
The amount of revenue can be reliabley measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Specifically the group deals with long term construction contracts and in arriving at the value of these contracts the company uses a percentage of completion method, with reference to surveys of work performed to value these at each month end. These valued form amounts recoverable on contracts and are included within debtors.The percentage of work performed against the total contract value is used to recognise the correct costs for the completion stage of the job, the difference here form the amount payable on contracts that sit within creditors.
Retentions are recognised when due and included within debtors. Where amounts are not considered to be recoverable they are provided for as appropriate. Retentions due to suppliers are accounted for within creditors.
Management income is recieved from connected companies in respect of employee services and costs incurred on behalf of the group. The amount is recognised on an accruals basis.
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Government grants
Grants relating to revenue are recognised in income on a systematic basis over the period in which the business recognises related costs which the grant is intended to compensate.
A grant the becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to an entity with no future related costs shall be recognised in income in the period in which it becomes receivable.
Tax
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
The group carries out Research and Development activities and claims R&D relief. This is accounted for when a claim is submitted on an accrual basis.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Motor Vehicle |
25-33% reducing balance |
Plant and machinery |
15-33% straight line |
Furniture, fixtures and fittings |
15% reducing balance |
Computer equipment |
25% reducing balance |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Goodwill
Goodwill consists of externally purchased goodwill from an unconnected party. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulatdd impairment losses. Goodwill is held in the currency of the aquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life of 5 years, which is considered to be a reliable estimate of the useful life.
Amortisation
Asset class |
Amortisation method and rate |
Goodwill |
5 years straight line |
Computer software |
33% straight line |
Investments
Investments in subsidiaries are accounted for at cost in accordance with FRS102. Impairment of such asset is carried out regularly and any amounts are written off to the profit and loss when relevant.
Investments, including investments in associates, that do not have an observable market value, are accounted for at cost in accordance with FRS102 Impairment of such assets is carried out regularly and any amounts are written off to the profit and loss when relevant.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised at the transaction price. Amounts are reviewed regularly and any amounts not considered recoverable are written off to the profit and loss in the relevant period.
Stocks and work in progress
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method. Stock comprises workshop consumables only.
Work in progress comprises properties purchased for renovation and eventual sale. The cost comprises all directly related items incurred at invoice cost, this includes the purchase price of property including all related costs with acquisition and subsequent costs in renovating.
The cost of each project is reviewed and tracked periodically, where the cost recorded is above the current value of the property/project a provision is made to ensure that work in progress is held at the lower of cost and net realisable value.
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised at the transaction price.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
2022 |
2021 |
|
Sale of goods |
|
|
Rendering of services - contract revenue |
|
|
|
|
All turnover in the current and prior period was generated in the UK.
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2022 |
2021 |
|
Government grants |
|
|
Sub lease rental income |
|
|
Miscellaneous other operating income |
- |
|
Management charges receivable |
73,346 |
42,490 |
|
|
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
2022 |
2021 |
|
Gain on disposal of Tangible assets |
|
- |
Operating (loss)/profit |
Arrived at after charging/(crediting)
2022 |
2021 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Impairment loss |
|
|
Operating lease expense - plant and machinery |
|
|
Profit on disposal of property, plant and equipment |
( |
- |
The impairment loss comprises an impairment of Associates held totalling £50,000 (2021: £225,000) and impairment losses in unlisted investments held totalling £27,875 (2021: £27,875).
Government grants |
The bounce back loan interest that was met by the government totalled £nil (2021: £1,250).
The group received a grant totalling £nil (2021: £10,000) from its local council during covid.
During the year £1,500 (2021: £nil) of income was received for apprenticeship schemes.
The amount of grants recognised in the financial statement in total was £1,500 (2021: £16,931).
Other interest receivable and similar income |
2022 |
2021 |
|
Interest income on bank deposits |
|
|
Other finance income |
- |
|
|
|
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Interest payable and similar expenses |
2022 |
2021 |
|
Interest on bank overdrafts and borrowings |
- |
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Interest expense on other finance liabilities |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2022 |
2021 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Redundancy costs |
|
- |
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including the director) during the year, analysed by category was as follows:
2022 |
2021 |
|
Production |
|
|
Administration and support |
|
|
Sales |
|
|
Other departments |
|
|
|
|
Director's remuneration |
The director's remuneration for the year was as follows:
2022 |
2021 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
16,315 |
95,748 |
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Auditors' remuneration |
2022 |
2021 |
|
Audit of these financial statements |
24,000 |
21,250 |
Other fees to auditors |
||
Taxation compliance services |
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2022 |
2021 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
( |
(1,761) |
(13,245) |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Tax receipt in the income statement |
( |
( |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2021 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
2022 |
2021 |
|
(Loss)/profit before tax |
( |
|
Corporation tax at standard rate |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
Tax increase from other short-term timing differences |
- |
|
Tax decrease from effect of adjustment in research and development tax credit |
- |
( |
Other tax effects for reconciliation between accounting profit and tax expense (income) |
( |
|
Total tax credit |
( |
( |
Restatement of comparative amounts |
Synergy Group Holdings Limited (single entity and consolidation) - the prior period has been restated by £125,000 to reclassify the amount previously held as other financial assets to debtors. This amount is a loan to an unconnected entity and as such should be classified as a debtor of the company and not a financial fixed asset investment as was previously disclosed.
There is no effect on the profit and loss, it is a reclassification within the balance sheet only between fixed and current assets.
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Intangible assets |
Group
Goodwill |
Other intangible assets |
Total |
|
Cost or valuation |
|||
At 1 April 2021 |
|
|
|
At 31 March 2022 |
|
|
|
Amortisation |
|||
At 1 April 2021 |
|
|
|
Amortisation charge |
|
|
|
At 31 March 2022 |
|
|
|
Carrying amount |
|||
At 31 March 2022 |
|
- |
|
At 31 March 2021 |
|
|
|
The company did not hold any intangible assets to separately disclose.
Other intangible assets consist of software costs externally purchased.
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Tangible assets |
Group
Furniture, fittings and equipment |
Motor vehicles |
Other tangible assets |
Total |
|
Cost or valuation |
||||
At 1 April 2021 |
|
|
|
|
Additions |
|
- |
|
|
At 31 March 2022 |
|
|
|
|
Depreciation |
||||
At 1 April 2021 |
|
|
|
|
Charge for the year |
|
|
|
|
At 31 March 2022 |
|
|
|
|
Carrying amount |
||||
At 31 March 2022 |
|
|
|
|
At 31 March 2021 |
|
|
|
|
The company did not hold any tangible assets to separately disclose.
The above includes assets held on hire purchase which are secured on the assets concerned in motor vehicles. The net book value was £27,913 (2021: £35,020) and depreciation charged of £7,107 (2021: £5,980).
Investments |
Company
2022 |
2021 |
|
Investments in subsidiaries |
|
|
Investments in associates |
|
|
|
|
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Subsidiaries |
£ |
Cost or valuation |
|
At 1 April 2021 |
|
Additions |
|
At 31 March 2022 |
|
Provision |
|
Impairment provision |
|
Carrying amount |
|
At 31 March 2022 |
|
At 31 March 2021 |
|
Associates |
£ |
Cost |
|
At 1 April 2021 |
|
Additions |
|
At 31 March 2022 |
|
Provision |
|
Impairment provision |
|
Carrying amount |
|
At 31 March 2022 |
|
At 31 March 2021 |
|
The impairment provision above relates to the cost of investments held in companies listed below that have since been put in liquidation or dissolved. The impairment provision is recognised in profit and loss.
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2022 |
2021 |
|||
Subsidiary undertakings |
||||
|
Prospect House, Rouen Road, Norwich, NR1 1RE England |
|
|
|
|
Prospect House, Rouen Road, Norwich, NR1 1RE England |
|
|
|
|
Building 8 Gateway 1000, Whittle Way, Stevenage, Hertfordshire, England, SG1 2FP England |
|
|
|
|
Building 8 Gateway 1000, Whittle Way, Stevenage, Hertfordshire, England, SG1 2FP England |
|
|
|
|
Building 8 Gateway 1000, Whittle Way, Stevenage, Hertfordshire, England, SG1 2FP England |
|
|
|
Associates |
||||
|
Building 8 Gateway 1000, Whittle Way, Stevenage, Hertfordshire, England, SG1 2FP |
Ordinary |
|
|
England |
||||
|
Building 8 Gateway 1000, Whittle Way, Stevenage, Hertfordshire, England, SG1 2FP |
Ordinary |
|
|
England |
Subsidiary undertakings |
Synergy M&E Limited (in liquidation) The principal activity of Synergy M&E Limited (in liquidation) is |
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Synergy Property Design Consultants Limited (in liquidation) The principal activity of Synergy Property Design Consultants Limited (in liquidation) is |
Synergy Developments Two Limited The principal activity of Synergy Developments Two Limited is |
Synergy Developments Three Limited The principal activity of Synergy Developments Three Limited is |
Synergy Joinery Limited The principal activity of Synergy Joinery Limited is |
Associates |
Synergy Electrical Solutions Limited (dissolved 02/01/2024) The principal activity of Synergy Electrical Solutions Limited (dissolved 02/01/2024) is |
Synergy Developments One Limited The principal activity of Synergy Developments One Limited is |
Subsidiaries and associates are only recorded when they are trading. Amounts are held at cost.
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Other financial assets |
Group
Financial assets at cost less impairment |
Total |
|
Non-current financial assets |
||
Cost or valuation |
||
At 1 April 2021 |
27,675 |
27,675 |
At 31 March 2022 |
27,675 |
27,675 |
Impairment |
||
Impairment provision |
27,675 |
27,675 |
At 31 March 2022 |
27,675 |
27,675 |
Carrying amount |
||
At 31 March 2022 |
- |
- |
The impairment provision is recognised in profit and loss and related to the asset being held at the lower of cost and net realisable value.
The company did not hold any other financial assets to separately disclose.
Stocks |
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Work in progress |
|
- |
- |
- |
Other inventories |
|
|
- |
- |
|
|
- |
- |
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Debtors |
Group |
Company |
||||
Current |
Note |
2022 |
(As restated) |
2022 |
(As restated) |
Trade debtors |
|
|
- |
- |
|
Amounts owed by related parties |
|
|
|
|
|
Other debtors |
|
|
|
|
|
Prepayments |
|
|
- |
- |
|
Gross amount due from customers for contract work |
|
|
- |
- |
|
Income tax asset |
|
- |
- |
- |
|
|
|
|
|
Other debtors include directors loan account balance of £146,675 (2021: £509,063) as detailed in the related party note.
Cash and cash equivalents |
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Cash at bank |
|
|
|
|
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Creditors |
Group |
Company |
||||
Note |
2022 |
2021 |
2022 |
2021 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
- |
- |
|
Trade creditors |
|
|
|
- |
|
Amounts due to related parties |
- |
- |
|
|
|
Social security and other taxes |
|
|
- |
- |
|
Outstanding defined contribution pension costs |
|
|
- |
- |
|
Other payables |
|
|
- |
- |
|
Accruals |
|
|
|
|
|
Income tax liability |
5,251 |
214,052 |
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
- |
Other creditors include an amount of £200,871 (2021: £258,452) of which the Director is jointly and severally liable for this debt.
Included within other creditors is amounts payable on contracts totalling £4,001 (2021: £1,752,046).
Provisions for liabilities |
Group
Deferred tax |
Total |
|
At 1 April 2021 |
|
|
Additional provisions |
( |
( |
At 31 March 2022 |
|
|
|
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
2022 |
2021 |
|||
No. |
£ |
No. |
£ |
|
|
|
100 |
|
100 |
Loans and borrowings |
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Non-current loans and borrowings |
||||
Bank borrowings |
|
|
- |
- |
Hire purchase contracts |
|
|
- |
- |
Other borrowings |
|
- |
- |
- |
|
|
- |
- |
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Current loans and borrowings |
||||
Bank borrowings |
|
|
- |
- |
Hire purchase contracts |
|
|
- |
- |
Other borrowings |
|
- |
- |
- |
|
|
- |
- |
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Of the above non current amount £85,926 (2021: £nil) is due in more than 5 years.
A charge is held over all assets of the group in favour of National Westminster Bank PLC dated 10 December 2019, this charge has been provided as a cross guarantee between the group and Red Investments, a connected partnership which owns the business premises.
The group has a loan under the Bounce Back Loan Scheme (BBLS) which is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business energy and Industrial Strategy.
The hire purchase amounts are secured on the relevant assets to which the loan relates.
Other borrowings totalling £488,581 - of which £81,868 is due < 1 year and due within 5 years of £406,713 - has a cross guarantee in place across the group in favour of Conister Finance and Leasing Limited. The loan originated in Synergy Property Design Consultants Limited, when the company went in to liquidation post year end, the debt became the parent company liability.
Dividends |
2022 |
2021 |
|||
£ |
£ |
|||
Interim dividend of £ |
150,000 |
280,000 |
||
Synergy Group Holdings Limited
(formerly
Notes to the Financial Statements for the Year Ended 31 March 2022
Related party transactions |
Group
Key management personnel
Key management is considered to be the Director only in the current and comparative period.
Summary of transactions with other related parties
At the balance sheet date Synergy Electrical Solutions Limited, a company connected by Common Director (and associate investment of the group) was owed a net amount of £50 (2021: £59,780 owed to) by the company.
At the balance sheet date Synergy Developments One Limited, a company connected by Common Director (and associate investment of the group) owed the group £53,801 (2021: £14,898).
All balances arose under normal trading terms.
At the balance sheet date the group was owed £146,675 (2021: £509,063) by M Knott, Director. Interest is charged at 2.5%. There are no terms for repayment. Please refer to note 22 with regards to Director's personal guarantee provided on loans and borrowings.
Parent and ultimate parent undertaking |
The group is controlled by M Knott as sole shareholder.
Non adjusting events after the financial period |
|