REGISTERED NUMBER: 09805175 (England and Wales) |
EFFECTIVE ENERGY GROUP LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
31 MARCH 2023 |
REGISTERED NUMBER: 09805175 (England and Wales) |
EFFECTIVE ENERGY GROUP LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
31 MARCH 2023 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Consolidated Income Statement | 12 |
Consolidated Other Comprehensive Income | 14 |
Consolidated Balance Sheet | 15 |
Company Balance Sheet | 17 |
Consolidated Statement of Changes in Equity | 18 |
Company Statement of Changes in Equity | 19 |
Consolidated Cash Flow Statement | 20 |
Notes to the Consolidated Cash Flow Statement | 21 |
Notes to the Consolidated Financial Statements | 23 |
EFFECTIVE ENERGY GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Sidings House |
Sidings Court |
Lakeside |
Doncaster |
South Yorkshire |
DN4 5NU |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their strategic report of the company and the group for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The Group of companies operate across the energy efficiency and green energy services related markets. Principal activities include the supply and installation of energy efficiency and green energy generation products to homes and businesses throughout the UK. These products include, energy efficient heating systems, numerous types of building insulation, solar systems, battery storage systems, electric car chargers and other renewable energy generation and energy saving measures. The Group supplies and installs these measures through a diverse range of clients, including directly to residential homeowners, social landlords, through the management and distribution of funds associated to the UK Energy Company Obligation (ECO) and the supply and installation of the company's green energy services to the new-build, commercial and Governmental sectors. |
The Group acquired Aztec Solar Energy Limited in November 2022. In acquiring this company, the Group has increased its sales function diversification into the commercial Solar PV industry. Since joining the group, Aztec Solar Energy Limited has successfully expanded its customer base, obtaining contracts with education and government institutions alike, along with an increased pipeline of large scale commercial new build and retrofit Solar and Battery storage projects. |
REVIEW OF BUSINESS |
The directors are pleased to announce another year of strong performance within a set of key strategic goals for the year. The year represents the achievement of several milestones within what is year 4 of a 5-year strategic build and development plan. The Group has now completed its platform build across each target sector of both energy efficiency and renewable energy products and services. As a result of the successes of this year, the following financial year will see significant uplift in both revenue and profit as these key building blocks, completed in this period, begin to bed in. |
In this period, the company completed several of its core objectives which include but are not limited to; The roll out of a new integrated IT platform. The integration of Aztec Solar Energy Limited, within the commercial sector. The completed integration of the Premier Connections and Premier renewables acquisitions in the residential retail sector. The continued development and growth of the Effective Energy Solutions business within the managed funding sector and the continued increase in market dominance in the newbuild market, via the Max Energy business, for both installed energy efficiency measures as well as Solar and battery storage products. |
As a result of the platform build this year, the reach of commercial clients across the UK now includes all UK territories, including Northern Ireland. The technical skills competence within the newbuild market is now served and supported by a centralised skills academy, supporting the groups growing engineer requirement. Within the residential retail sector, the business now operates from two centralised sales and operations offices, with a team of highly experienced technical sales, technical surveying and technical field management operatives coordinated throughout the UK from these two HQ hubs. By operating the control functions of the group's retail service out of these two connected centres and by using the group integrated services to coordinate the people interfaced functional control elements of the entire group to support each other, the company's adopted Business Resilience Plan are well met. |
In this year, several non-required operations, which were inherited via the above-mentioned acquisitions were discontinued. The underlying profit of the Group without these discontinued operations was £2,242,852. |
These discontinued operations were within the Premier Connections and Premier Renewables businesses and are discontinued within this financial year as the elements of those businesses that were sought after in the acquisitions have now been integrated into the BAU of the ongoing Group activities. |
Including the discontinued items, the Loss before taxation for the year amounts to £3,164,879 (2022: Profit £3,687,370). Turnover delivered in the year amounts to £71,464,110 (2022; £72,165,560). The loss was reflected in the shareholders' funds which currently stands at £4,213,302. This together with a year-end cash at bank balance of £3,132,273 provides a solid platform to support the groups existing and planned business strategies and will be demonstrated by the ongoing performance of the group, as a direct result of the activities planned, taken, and completed over the course of this year. |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
STRATEGIC REPORT |
The directors remain confident that the operating model fully supports the strategic aim of the shareholders. The Group continues to build on its' reputation as a well-established market leader in the provision of 'whole home' energy efficiency and renewable energy products, providing these products and services to both individual homeowners and commercial businesses, new-build clients and through community scale residential housing programmes. |
Through our Max Energy brand, we continue to be the leading provider of insulation products and services to the new-building housing sector and are now the leading provider of Solar solutions in this sector. The experienced management team and dynamic delivery platform continue to generate growth in our customer base, which once again translated in increased financial performance. Relationships across all areas of the supply chain have been strengthened and broadened to support future delivery of our substantial order book. |
Effective Energy Solutions continued to provide fulfilment of ECO and other carbon reducing programmes on behalf of the UK Energy Sector and other obligated parties. The company has strengthened its long-term contracts and partnerships across these Energy related sectors. Alongside this, the company continues to build excellent long term strategic partnerships, enhancing its delivery platform with a diverse and robust network of system installation partners. |
Effective Home remain focused on following the strategy of assessing each customer's home from a "fabric first" energy efficiency perspective. Effective Home can provide customers with a range of solutions, from the most suitable types of Insulation and/or efficient heating systems, including Air Source Heat Pumps, through to renewable energy products such as Solar PV and/or Solar Thermal, alongside Battery Storage solutions, Smart Controls and Electric Vehicle Chargers. Whilst early adoption of key products has seen singular product purchases within a number of these growing product sectors, the company is significantly increasing its penetration of bundled packages as part of an entire 'one stop' home decarbonisation solution. Being product agnostic and having developed a highly scalable and flexible tech driven platform over our build phase, Effective Home is well structured to build upon and continually review the best available product options for our customers. |
FUTURE DEVELOPMENTS |
Max Energy has secured a significant orderbook covering the forecast turnover for the next year, with potential for further upside. The business has a strong solar orderbook which is set to accelerate into the new build market as well as delivering GBIS installs generated companies within the group. |
Effective Energy Solutions has continued to develop new income streams by becoming the managing agent for Group services in new GBIS and H4H schemes. The business has also held positive discussions with two new energy suppliers which will strengthen its capacity to operate with agility and adaptability in the ECO market. |
Effective Home has continued to develop new income streams bringing on board revenue Help4Homes and GBIS which have involved working closely with other group companies to create and maximise the opportunity. The Company has integrated Premier Connections and Premier Renewables Energy which has resulted in an increase in activity across all income streams during the 31 March 2024 accounting period. As such, the Group has identified and actioned its future developments. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Group boasts an extremely experienced management team throughout head office functions and within its subsidiaries, recruiting where necessary to acquire the skillset required in a fast-paced industry. The risk management program ensures continuous monitoring of the markets, supply chain and economic landscape in which we operate. |
The principal risk to Max Energy and Effective Home would be a change in the economy, effecting the new build and residential housing sector or from a non-scheduled change to the Government Incentivised Retro Fit market. To minimise these risks, the Company's management team continues to monitor and analyse the market closely, sharing data with our customers, key suppliers, and trade bodies. Credit risk is reduced by working with a wide portfolio of well-managed, diverse range of customers across the UK's multiple house builders. These steps have enabled both companies to manage their risk exposure and continue to operate effectively. |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES (CONTINUED) |
Risk to customers delivery, is largely limited to security of supply and price increases of key materials for Max Energy and sufficient supply from delivery partners in Effective Energy to meet ECO contracts. Both are mitigated by having a wide portfolio of suppliers and having a mix of fixed price forward contracts with suppliers and customers, avoiding reliance on any one single entity. |
A key risk to Effective Energy would be a change in government legislation surrounding Energy Company Obligation as this will directly impact revenue. Although this is high risk, it is mitigated by the low probability of occurrence as well as high visibility in the sector. Any such changes would take 18 months to materialise. |
The directors and shareholders of the group and related companies remain confident that the business will deliver in line with strategy, via its dynamic approach to target markets. |
ENVIRONMENTAL POLICY |
The Group has introduced an environmental policy and seeks to adopt practices which cause least damage to the environment and is continually exploring methods of recycling materials where practical. |
SECTION 172(1) STATEMENT |
Employee Engagement. |
The group adopts a process of regular staff updates by email to employees by the Management Team. This includes making staff aware of the financial, economic and social factors affecting them and the Group. In addition to this the Group has maintain an Employee Hub which offers its staff affinity discounts, wellbeing advice and access to a specialist employee assistance program. |
The Directors and other Senior Management hold regular staff forums to discuss developments within both the Group and the market it operates with. |
The Group produces regular Staff Surveys which invite employees to express an anonymous opinion on how the Group is performing and what improvements they would like to see to improve their work experience. These views are discussed with changes made to procedures and conditions to meet aspirations . |
The Directors and other Senior Management operate an 'open door' policy where any employee can meet with them at any convenient time. |
Recruitment and Equal Opportunities |
In recruitment the Group is committed to a policy of equal opportunity regardless of sex, sexual orientation, marital status, age, disability, colour, race, ethnic or national origin, religious or political beliefs. |
We will ensure that each candidate is assessed only in accordance with their merits, qualifications, and ability to perform the relevant duties required by that vacancy. |
Account is taken of disabilities only in so far as they affect ability to perform their substantive role, the Group will seek to make reasonable adjustments to retain them in any available suitable employment. |
Where staff become disabled under UK disability legislation, and are unable to perform their substantive role, the Group will seek to make reasonable adjustments to retain them in any suitable employment. |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
SECTION 172(1) STATEMENT (CONTINUED) |
Other Stakeholder Engagement. |
The Group has a Customer Experience Team which corresponds with individual customers. Senior managers in the business are involved in trade forums and where required the business units are active member of the relevant accreditation bodies. |
The Directors and other Senior Management liaise closely with trade bodies and participate in government working parties to improve the offering and keep them abreast of developments in the network. |
The Directors are in regular contact with major suppliers to advise on likely developments within the business, and the effect this may have for them. |
The Directors ensure that suppliers are paid according to their terms and conditions. |
ON BEHALF OF THE BOARD: |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023. |
DIVIDENDS |
Particulars of dividends are detailed in note 10 to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
AUDITORS |
The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EFFECTIVE ENERGY GROUP LIMITED |
Opinion |
We have audited the financial statements of Effective Energy Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 of the parent company affairs as at 31 March 2023 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 Auditors' 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EFFECTIVE ENERGY GROUP LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 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 directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EFFECTIVE ENERGY GROUP LIMITED |
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 Group, we identified that the principal risks of non-compliance with laws and regulations related to corporation tax legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. |
As part of this assessment we considered both quantitative and qualitative factors. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and FRS 102. |
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements which included the risk of management override of controls. We determined that the principal risks were related to posting inappropriate journal entries, omitting, advancing or delaying recognition of events and transactions that have occurred during or after the reporting period, and potential management bias in the determination of accounting estimates or judgements to manipulate results. |
Audit procedures performed by the engagement team include: |
- | Enquiring of and obtaining written representation from management in relation to known or suspected instances of non-compliance with laws and regulations and fraud; |
- | Enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; |
- | Evaluation of management's controls designed to prevent and detect irregularities; |
- | Review of board meeting minutes and meetings of those charged with governance; |
- | Identifying and, where relevant, testing journal entries posted by senior management or with unusual combinations; |
- | Assessing and evaluating the business rationale of significant transactions outside the normal course of business; |
- | Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
- | Review of correspondence with regulators in so far as they are related to the financial statements; |
- | Incorporating elements of unpredictability into the nature, timing and/or extent of audit procedures performed. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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 misrepresentation, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EFFECTIVE ENERGY GROUP 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 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. |
for and on behalf of |
Sidings House |
Sidings Court |
Lakeside |
Doncaster |
South Yorkshire |
DN4 5NU |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2023 | 2023 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
TURNOVER | 4 | 68,248,180 | 3,215,930 | 71,464,110 |
Cost of sales | (50,090,952 | ) | (5,990,347 | ) | (56,081,299 | ) |
GROSS PROFIT/(LOSS) | 18,157,228 | (2,774,417 | ) | 15,382,811 |
Administrative expenses | (16,922,576 | ) | (2,587,587 | ) | (19,510,163 | ) |
1,234,652 | (5,362,004 | ) | (4,127,352 | ) |
Other operating income | 841,924 | 391 | 842,315 |
OPERATING PROFIT/(LOSS) | 6 | 2,076,576 | (5,361,613 | ) | (3,285,037 | ) |
Interest receivable and similar income | 148,951 | 331 | 149,282 |
Interest payable and similar expenses | 9 | (3,380 | ) | (25,744 | ) | (29,124 | ) |
PROFIT/(LOSS) BEFORE TAXATION | 2,222,147 | (5,387,026 | ) | (3,164,879 | ) |
Tax on profit/(loss) | 10 | 20,705 | 119,310 | 140,015 |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
( |
) |
Profit/(loss) attributable to: |
Owners of the parent | (3,866,740 | ) |
Non-controlling interests | 841,876 |
(3,024,864 | ) |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
2022 | 2022 | 2022 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
TURNOVER | 4 | 72,110,158 | 55,402 | 72,165,560 |
Cost of sales | (53,287,997 | ) | (22,168 | ) | (53,310,165 | ) |
GROSS PROFIT | 18,822,161 | 33,234 | 18,855,395 |
Administrative expenses | (14,985,626 | ) | (48,858 | ) | (15,034,484 | ) |
3,836,535 | (15,624 | ) | 3,820,911 |
Other operating income | 444,643 | 5,053 | 449,696 |
OPERATING PROFIT/(LOSS) | 6 | 4,281,178 | (10,571 | ) | 4,270,607 |
Profit on sale of operation | 8 | - | 231,873 | 231,873 |
4,281,178 | 221,302 | 4,502,480 |
Interest receivable and similar income | 163,770 | - | 163,770 |
Interest payable and similar expenses | 9 | (118,801 | ) | - | (118,801 | ) |
PROFIT BEFORE TAXATION | 4,326,147 | 221,302 | 4,547,449 |
Tax on profit | 10 | (860,079 | ) | - | (860,079 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 2,757,806 |
Non-controlling interests | 929,564 |
3,687,370 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | (3,024,864 | ) | 3,687,370 |
OTHER COMPREHENSIVE INCOME |
Share option cost recognised in equity | 15,315 | 45,947 |
Reduction in non-controlling interest on |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
15,315 |
45,947 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(3,009,549 |
) |
3,733,317 |
Total comprehensive income attributable to: |
Owners of the parent | (3,851,425 | ) | 2,803,753 |
Non-controlling interests | 841,876 | 929,564 |
(3,009,549 | ) | 3,733,317 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
CONSOLIDATED BALANCE SHEET |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 14 | 2,914,208 | 3,014,692 |
Tangible assets | 15 | 1,695,861 | 1,608,964 |
Investments | 16 |
Interest in associate | 500,000 | 500,000 |
Other investments | 1,869 | 2,001,869 |
5,111,938 | 7,125,525 |
CURRENT ASSETS |
Stocks | 17 | 1,344,509 | 1,112,435 |
Debtors | 18 | 23,254,496 | 21,066,937 |
Investments | 19 | 2,000,000 | - |
Cash at bank and in hand | 3,132,273 | 3,788,968 |
29,731,278 | 25,968,340 |
CREDITORS |
Amounts falling due within one year | 20 | 27,148,622 | 22,536,105 |
NET CURRENT ASSETS | 2,582,656 | 3,432,235 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
7,694,594 |
10,557,760 |
CREDITORS |
Amounts falling due after more than one year |
21 |
(749,797 |
) |
(406,053 |
) |
PROVISIONS FOR LIABILITIES | 25 | (271,243 | ) | (240,083 | ) |
NET ASSETS | 6,673,554 | 9,911,624 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
CONSOLIDATED BALANCE SHEET - continued |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 26 | 10,102 | 10,102 |
Other reserves | 27 | 116,398 | 101,083 |
Retained earnings | 27 | 4,086,802 | 7,953,542 |
SHAREHOLDERS' FUNDS | 4,213,302 | 8,064,727 |
NON-CONTROLLING INTERESTS | 2,460,252 | 1,846,897 |
TOTAL EQUITY | 6,673,554 | 9,911,624 |
The financial statements were approved by the Board of Directors and authorised for issue on 28 March 2024 and were signed on its behalf by: |
Mr S Adams - Director |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
COMPANY BALANCE SHEET |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 14 |
Tangible assets | 15 |
Investments | 16 |
CURRENT ASSETS |
Debtors | 18 |
Investments | 19 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 20 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
PROVISIONS FOR LIABILITIES | 25 |
NET (LIABILITIES)/ASSETS | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 26 |
Other reserves | 27 |
Retained earnings | 27 | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
Company's (loss)/profit for the financial year | (3,233,359 | ) | 2,597,941 |
The financial statements were approved by the Board of Directors and authorised for issue on |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up |
share | Retained | Other |
capital | earnings | reserves |
£ | £ | £ |
Balance at 1 April 2021 | 10,002 | 7,603,285 | 55,136 |
Changes in equity |
Issue of share capital | 100 | - | - |
Dividends | - | (2,407,549 | ) | - |
Total comprehensive income | - | 2,757,806 | 45,947 |
Balance at 31 March 2022 | 10,102 | 7,953,542 | 101,083 |
Changes in equity |
Total comprehensive income | - | (3,866,740 | ) | 15,315 |
10,102 | 4,086,802 | 116,398 |
Acquisition of non-controlling interest |
- |
- |
- |
Balance at 31 March 2023 | 10,102 | 4,086,802 | 116,398 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 April 2021 | 7,668,423 | 1,164,718 | 8,833,141 |
Changes in equity |
Issue of share capital | 100 | - | 100 |
Dividends | (2,407,549 | ) | (247,385 | ) | (2,654,934 | ) |
Total comprehensive income | 2,803,753 | 929,564 | 3,733,317 |
Balance at 31 March 2022 | 8,064,727 | 1,846,897 | 9,911,624 |
Changes in equity |
Dividends | - | (239,750 | ) | (239,750 | ) |
Total comprehensive income | (3,851,425 | ) | 841,876 | (3,009,549 | ) |
4,213,302 | 2,449,023 | 6,662,325 |
Acquisition of non-controlling interest |
- |
11,229 |
11,229 |
Balance at 31 March 2023 | 4,213,302 | 2,460,252 | 6,673,554 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Issue of share capital | - | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 March 2023 | ( |
) | ( |
) |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 530,557 | 7,135,394 |
Interest paid | (3,380 | ) | (114,599 | ) |
Interest element of hire purchase payments paid |
(25,744 |
) |
(4,202 |
) |
Tax paid | (65,701 | ) | (1,575,353 | ) |
Net cash from operating activities | 435,732 | 5,441,240 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (26,250 | ) | (43,300 | ) |
Purchase of tangible fixed assets | (621,762 | ) | (838,908 | ) |
Purchase of fixed asset investments | - | (500,000 | ) |
Sale of tangible fixed assets | 156,456 | (23,677 | ) |
Business combinations | (340,000 | ) | (1,000,517 | ) |
Cash gain on acquisition | 48,937 | - |
Amounts advanced to associates | (118,064 | ) | (101,518 | ) |
Interest received | 149,282 | 163,770 |
Net cash from investing activities | (751,401 | ) | (2,344,150 | ) |
Cash flows from financing activities |
Loan advances in year | 135,922 | 1,383,740 |
Repayment of facilities | - | (1,023,171 | ) |
HP capital repayments in year | (341,371 | ) | (114,485 | ) |
Amount introduced by directors | 95,545 | - |
Amount withdrawn by directors | (6,687 | ) | - |
Share issue | - | 100 |
Value of EMI | 15,315 | 45,947 |
Equity dividends paid | - | (2,407,549 | ) |
Dividends paid to minority interests | (239,750 | ) | (247,385 | ) |
Net cash from financing activities | (341,026 | ) | (2,362,803 | ) |
(Decrease)/increase in cash and cash equivalents | (656,695 | ) | 734,287 |
Cash and cash equivalents at beginning of year |
2 |
3,788,968 |
3,054,681 |
Cash and cash equivalents at end of year | 2 | 3,132,273 | 3,788,968 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
(Loss)/profit for the financial year | (3,024,864 | ) | 3,687,370 |
Depreciation charges | 1,032,367 | 698,740 |
(Profit)/loss on disposal of fixed assets | (12,905 | ) | 29,318 |
Impairment losses on development costs | 53,569 | - |
Finance costs | 29,124 | 118,801 |
Finance income | (149,282 | ) | (163,770 | ) |
Taxation | (140,015 | ) | 860,079 |
(2,212,006 | ) | 5,230,538 |
Increase in stocks | (68,079 | ) | (536,896 | ) |
Increase in trade and other debtors | (1,739,784 | ) | (958,002 | ) |
Increase in trade and other creditors | 4,550,426 | 3,399,754 |
Cash generated from operations | 530,557 | 7,135,394 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 3,132,273 | 3,788,968 |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 3,788,968 | 3,054,681 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
Business | Other |
Combination | non-cash |
At 1.4.22 | Cash flow | s | changes | At 31.3.23 |
£ | £ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 3,788,968 | (705,632 | ) | 48,937 | 3,132,273 |
3,788,968 | (705,632 | ) | 48,937 | 3,132,273 |
Debt |
Finance leases | (583,838 | ) | 341,371 | - | (251,749 | ) | (494,216 | ) |
Debts falling due |
within 1 year | (2,105,567 | ) | (151,872 | ) | (17,369 | ) | - | (2,274,808 | ) |
Debts falling due |
after 1 year | (22,672 | ) | 15,950 | (53,292 | ) | - | (60,014 | ) |
(2,712,077 | ) | 205,449 | (70,661 | ) | (251,749 | ) | (2,829,038 | ) |
Total | 1,076,891 | (500,183 | ) | (21,724 | ) | (251,749 | ) | 303,235 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | STATUTORY INFORMATION |
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 1 Boston Road, Leicester, Leicestershire, LE4 1AA. The principal place of business is Carriage Court, Welbeck Estate, Worksop, Nottinghamshire, S80 3LR. |
2. | STATEMENT OF COMPLIANCE |
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. These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland.' |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. |
The financial statements are prepared in sterling, which is the functional currency of the entity. |
Basis of consolidation |
The financial statements consolidate the results of Effective Energy Group Limited and all its subsidiary undertakings. Subsidiaries are all entities over which the group has control. The group controls an entity when the group is exposed to, or has the rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. |
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. |
The consolidation stops from the date that control ceases. |
The consolidation is based on uniform accounting policies across group companies in all material respects, and elimination of intra-group transactions. |
Any goodwill arising on consolidation is written off against profits on a straight line basis over the useful economic life of the asset, which is ten years. A provision is made for any impairment. |
All group undertakings included in the consolidated financial statement have 31 March accounting period ends. |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Judgements and key sources of estimation uncertainty |
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. |
Provisions Against Trade Debtors |
When evaluating debtors for recoverability risk, the Directors use their knowledge and experience to determine the provision required. |
ECO Provision |
A group company procures ECO points generated by qualifying energy efficiency measures installed by third-party contractors following a rigorous validation process. These ECO points are then supplied to utility companies as per the existing contract agreements, enabling them to fulfil their obligations under the government's ECO scheme. Despite the Company's diligent efforts to verify that the work conducted by the installers aligns with the requirements of the ECO scheme, there remains a risk that, due to non-compliance or negligence, the measures may be deemed invalid subsequent to the sale of the corresponding ECO points to the utility company. Typically, the rejection of submitted measures accepted by a utility company arises from audits conducted by OFGEM, who possess additional information that may reveal validity issues. |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Revenue recognition |
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on dispatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. |
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable. |
ECO Measures |
A group company operates as a managing agent within OFGEM's Energy Company Obligation (ECO) scheme. It procures qualifying measures from a network of installers and sells them to utility companies obligated to acquire such measures under the scheme. Revenue is derived from these transactions. |
Revenue is represented by the fair value of consideration received or receivable between knowledgeable, willing parties in an arm's length transaction. |
Revenue is measured based on the price agreed with the utility customer as defined in the contract or associated agreements. This price encompasses all fixed and variable considerations related to the sale of qualifying measures. |
Significant risks and rewards of ownership are deemed to be transferred to the utility customer upon submission of qualifying measures (handover date). Revenue recognition aligns with this transfer of control. |
Historical experience is utilised to estimate rejections of submitted measures by the utility customer. Revenue recognition is adjusted accordingly to reflect the portion of submitted measures that are at risk of rejection. Revenue is not recognised for measures deemed at risk of rejection until such risks are mitigated or resolved. |
Installation of Insulation Materials |
Turnover from the installation of insulation materials is recognised upon completion of the installation, it is probable that the economic benefits will flow to the Group and the costs incurred or to be incurred in respect of the installation can be measured reliably |
Installation of Solar PV and Battery Systems |
Turnover from the installation of Solar PV and battery installations is recognised upon handover to the customer, this when the system has been commissioned and the risk and rewards of the systems have passed to the customer, it is probable that the economic benefits will flow to the and Group the costs incurred or to be incurred in respect of the installation can be measured reliably. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of a businesses in 2021, 2022 and 2023 is being amortised evenly over its estimated useful life of ten years. |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
An impairment loss has been recognised in the Consolidated Income Statement, following an assessment at the Consolidated Balance Sheet date indicating the recoverable amount was less than its carrying value. |
Tangible fixed assets |
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. |
Depreciation |
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows: |
Plant and machinery | 20-25% straight line |
Fixtures and fittings | 20-25% straight line |
Motor vehicles | 20-25% straight line |
Equipment | 20-25% straight line |
Investments |
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. |
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss. |
Impairment of fixed assets |
A review for indicators of impairment is carried out at each reporting date, with the recoverable amounts being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. |
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. |
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units. |
Investments in associates |
Investments in associate undertakings are initially recognised at the transaction price and subsequently adjusted to reflect the Group's share of profit or loss and other Comprehensive income. |
Stocks |
Stocks are measured 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 the stock to its present location and condition. |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
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. 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. |
Income tax |
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. |
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. |
Deferred tax is recognised in respect of all timing difference at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. |
Research and development |
Research expenditure is written off in the period in which it is incurred. |
Operating leases |
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregates benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. |
Defined contribution plans |
Contributions to defined contribution plans are recognised as an expense in the period in which the relates service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. |
When contributions are not expected to be settled wholly within 2 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises. |
Non-controlling interests |
Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group's equity. Minority interests consist of the amount of those interests at the date of the original business combination and the minority's share of changes in equity since the date of the combination. |
The proportions of profit or loss and changes in equity allocated to the owners of the parent and to the minority interests are determined on the basis of existing ownership interests and do not reflect the possible exercise or conversion of options or convertible instruments. |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Provisions |
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. |
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises. |
Goodwill |
Negative goodwill arising on consolidation of a subsidiary represents the difference between the fair value of consideration due and the fair value of the net assets on acquisition of the subsidiary. The net assets acquired relate primarily to current assets and current liabilities, with no material amount relating to fixed assets. Negative goodwill has been released to the income statement in line with the assets to which it relates, and all fell due in the accounting period in which the subsidiary was acquired. |
4. | TURNOVER |
The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Sale of goods | 71,463,321 | 72,110,158 |
Rendering of services | 789 | 55,402 |
71,464,110 | 72,165,560 |
The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom. |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 14,426,053 | 11,120,641 |
Social security costs | 1,623,986 | 1,183,494 |
Other pension costs | 444,154 | 374,101 |
16,494,193 | 12,678,236 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
5. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administrative staff & directors | 172 | 123 |
Operational staff | 182 | 177 |
The average number of employees by undertakings that were proportionately consolidated during the year was 6 (2022 - 19 ) . |
2023 | 2022 |
£ | £ |
Directors' remuneration | 842,273 | 859,926 |
Directors' pension contributions to money purchase schemes | 32,738 | 101,428 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 5 | 3 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 228,649 | 220,695 |
Pension contributions to money purchase schemes | - | 10,916 |
6. | OPERATING (LOSS)/PROFIT |
The operating loss (2022 - operating profit) is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 103,390 | 84,765 |
Other operating leases | 67,949 | 101,532 |
Depreciation - owned assets | 424,727 | 282,213 |
Depreciation - assets on hire purchase contracts | 218,336 | 150,721 |
(Profit)/loss on disposal of fixed assets | (12,905 | ) | 29,318 |
Goodwill amortisation | 373,323 | 265,806 |
Development costs amortisation | 15,981 | - |
Foreign exchange differences | 134 | - |
Operating lease costs | 2,122,503 | 1,921,423 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
7. | AUDITORS' REMUNERATION |
2023 | 2022 |
£ | £ |
Fees payable to the company's auditors and their associates for the audit of the company's financial statements |
65,283 |
45,883 |
Auditors' remuneration for non audit work | 4,228 | 9,778 |
8. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
Profit on sale of operation | - | 231,873 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 25,636 | 9,614 |
Loan | (22,554 | ) | 107,324 |
Interest payable | 298 | (2,339 | ) |
Hire purchase | 25,744 | 4,202 |
29,124 | 118,801 |
10. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 6,064 | 682,650 |
Underprovision in earlier year | (177,239 | ) | - |
Total current tax | (171,175 | ) | 682,650 |
Deferred tax | 31,160 | 177,429 |
Tax on (loss)/profit | (140,015 | ) | 860,079 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
10. | TAXATION - continued |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
(Loss)/profit before tax | (3,164,879 | ) | 4,547,449 |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
(601,327 |
) |
864,015 |
Effects of: |
Expenses not deductible for tax purposes | 73,499 | 65,038 |
Utilisation of tax losses | (5,017 | ) | (124,871 | ) |
Adjustments to tax charge in respect of previous periods | (5,317 | ) | 32,879 |
Enhanced expenses capital allowances | (18,174 | ) | (38,956 | ) |
Unused tax losses | 390,307 | 37,120 |
movements |
Change in deferred tax rates | 26,014 | 24,854 |
Total tax (credit)/charge | (140,015 | ) | 860,079 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Share option cost recognised in equity | 15,315 | - | 15,315 |
Reduction in non-controlling interest on |
15,315 | - | 15,315 |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Share option cost recognised in equity | 45,947 | - | 45,947 |
Reduction in non-controlling interest on |
45,947 | - | 45,947 |
11. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
12. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of 1 each |
Final | - | 2,407,549 |
During the year, dividends of £Nil were paid by the Company (2022: £2,407,549). |
13. | GOVERNMENT ASSISTANCE |
Company |
The Company received no government assistance during the accounting period. |
Group |
During the year the Group received no grant income under HM Government CJRS (2022: £8,266). This is disclosed in Other Income. |
Group subsidiaries utilised the CJRS inline with the guidance provided by HMRC, staff within the group have been furloughed during periods of inactivity or where demand fell for their services, as demand increased staff were brought back to work. |
14. | INTANGIBLE FIXED ASSETS |
Group |
Development |
Goodwill | costs | Totals |
£ | £ | £ |
COST |
At 1 April 2022 | 3,447,389 | 43,300 | 3,490,689 |
Additions | 316,139 | 26,250 | 342,389 |
Impairments | - | (69,550 | ) | (69,550 | ) |
At 31 March 2023 | 3,763,528 | - | 3,763,528 |
AMORTISATION |
At 1 April 2022 | 475,997 | - | 475,997 |
Amortisation for year | 373,323 | 15,981 | 389,304 |
Impairments | - | (15,981 | ) | (15,981 | ) |
At 31 March 2023 | 849,320 | - | 849,320 |
NET BOOK VALUE |
At 31 March 2023 | 2,914,208 | - | 2,914,208 |
At 31 March 2022 | 2,971,392 | 43,300 | 3,014,692 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
15. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 April 2022 | 14,263 | 1,011,356 | 150,561 |
Additions | 2,155 | 274,644 | 131,823 |
Disposals | - | - | - |
At 31 March 2023 | 16,418 | 1,286,000 | 282,384 |
DEPRECIATION |
At 1 April 2022 | 4,130 | 465,561 | 100,245 |
Charge for year | 2,960 | 273,630 | 51,321 |
Eliminated on disposal | - | - | - |
At 31 March 2023 | 7,090 | 739,191 | 151,566 |
NET BOOK VALUE |
At 31 March 2023 | 9,328 | 546,809 | 130,818 |
At 31 March 2022 | 10,133 | 545,795 | 50,316 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2022 | 1,164,765 | 219,275 | 2,560,220 |
Additions | 414,954 | 49,935 | 873,511 |
Disposals | (170,203 | ) | (1,126 | ) | (171,329 | ) |
At 31 March 2023 | 1,409,516 | 268,084 | 3,262,402 |
DEPRECIATION |
At 1 April 2022 | 268,683 | 112,637 | 951,256 |
Charge for year | 306,872 | 8,280 | 643,063 |
Eliminated on disposal | (26,652 | ) | (1,126 | ) | (27,778 | ) |
At 31 March 2023 | 548,903 | 119,791 | 1,566,541 |
NET BOOK VALUE |
At 31 March 2023 | 860,613 | 148,293 | 1,695,861 |
At 31 March 2022 | 896,082 | 106,638 | 1,608,964 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
15. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 April 2022 | 750,135 |
Additions | 303,698 |
Disposals | (162,928 | ) |
At 31 March 2023 | 890,905 |
DEPRECIATION |
At 1 April 2022 | 153,690 |
Charge for year | 218,336 |
Eliminated on disposal | (22,287 | ) |
At 31 March 2023 | 349,739 |
NET BOOK VALUE |
At 31 March 2023 | 541,166 |
At 31 March 2022 | 596,445 |
Company |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2022 |
Additions |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
16. | FIXED ASSET INVESTMENTS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Shares in group undertakings | - | - |
Participating interests | 500,000 | 500,000 |
Other investments not loans | 1,869 | 1,869 |
Other loans | - | 2,000,000 |
501,869 | 2,501,869 |
Additional information is as follows: |
Group |
Interest |
in | Unlisted |
associate | investments | Totals |
£ | £ | £ |
COST |
At 1 April 2022 |
and 31 March 2023 | 500,000 | 1,869 | 501,869 |
NET BOOK VALUE |
At 31 March 2023 | 500,000 | 1,869 | 501,869 |
At 31 March 2022 | 500,000 | 1,869 | 501,869 |
Company |
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 1 April 2022 | 1,389,836 |
Additions | 340,000 |
At 31 March 2023 | 1,729,836 |
NET BOOK VALUE |
At 31 March 2023 | 1,729,836 |
At 31 March 2022 | 1,389,836 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
16. | FIXED ASSET INVESTMENTS - continued |
Group |
Other |
loans |
£ |
At 1 April 2022 | 2,000,000 |
Other movement | (2,000,000 | ) |
At 31 March 2023 | - |
Company |
Other |
loans |
£ |
At 1 April 2022 |
Other movement | ( |
) |
At 31 March 2023 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
16. | FIXED ASSET INVESTMENTS - continued |
During the prior year the Company subscribed to 15% of the Ordinary share capital of Alta Capital Limited. |
Details of the investments in which the parent company has an interest of 20% or more are as follows: |
Subsidiary Undertakings |
Company Registration Number |
Class of Share |
Percentage of Shares Held |
Effective Energy Solutions Limited | 06743329 | Ordinary £1 | 100% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Energy Consultancy |
Effective Home Limited | 10441082 | Ordinary £1 | 100% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Installers of Home Heating Solutions |
Effective Utilities Limited | 10425269 | Ordinary £1 | 100% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Energy Consultancy |
Effective Energy Limited* | 08279688 | Ordinary £1 | 100% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Dormant |
Max Energy Holdings Limited |
12450281 |
Ordinary £0.01 |
78.5% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Intermediate Parent Company |
Max Energy Limited* | 08992041 | Ordinary £1 | 78.5% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Insulation Installation Contractor |
Max Scaffold Limited* | 09824501 | Ordinary £1 | 78.5% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Insulation Installation Contractor |
Green Beard Limited* | 10439937 | Ordinary £1 | 78.5% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Dormant |
Max Render Limited* | 09846726 | Ordinary £1 | 78.5% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Dormant |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
16. | FIXED ASSET INVESTMENTS - continued |
Volta Energy Group Limited | 10881834 | Ordinary £1 | 66% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Renewable Energy Provider |
Volta Energy Green Limited | 11001771 | Ordinary £1 | 100% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Dormant |
Volta Energy Immingham Limited | 11002962 | Ordinary £1 | 100% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Dormant |
Volta Energy Scarborough Limited | 11002141 | Ordinary £1 | 100% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Dormant |
Volta Energy Jordanthorpe Limited | 11001771 | Ordinary £1 | 100% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Dormant |
Volta Energy Turner Crescent Limited | 11002585 | Ordinary £1 | 100% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Dormant |
Volta Energy Doncaster Limited | 11002633 | Ordinary £1 | 100% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Dormant |
Volta Energy Blue Limited | 11002670 | Ordinary £1 | 100% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Dormant |
Volta Energy Thurcroft Limited | 11002785 | Ordinary £1 | 100% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Dormant |
Volta Energy Brodsworth Limited | 11002774 | Ordinary £1 | 100% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Dormant |
Max Renewables Limited (previously Volta Energy South Kirkby Limited) |
11002639 |
Ordinary £1 |
100% |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
16. | FIXED ASSET INVESTMENTS - continued |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Dormant |
Volta Energy Assets Limited | 10999585 | Ordinary £1 | 100% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Dormant |
Effective Group Investment Ltd | 13454225 | Ordinary £1 | 100% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Intermediate Parent Undertaking |
Premier Connections Limited | 11753129 | Ordinary £1 | 100% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Renewable solutions |
Premier Renewables Energy Limited | 11756000 | Ordinary £1 | 100% |
Registered Office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA |
Nature of business: Renewable solutions |
Aztec Solar Energy Limited | 07779745 | Ordinary £1 | 68% |
Registered Office: 15 The Prince Phillip Building, Wellesbourne, Warwick, Warwickshire, CV35 9EF |
Nature of business:Installation of Solar PV Systems |
Associated Undertakings |
Company Registration Number |
Class of Share |
Percentage of Shares Held |
Prem IT Solutions Limited | 13235982 | Ordinary £1 | 33.3% |
Registered Office: 16a Cove Road, Fleet, Hampshire, GU51 2RN |
Nature of business: Software Development and Consultancy |
17. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 1,344,509 | 1,063,632 |
Work-in-progress | - | 48,803 |
1,344,509 | 1,112,435 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
18. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 8,795,249 | 9,349,231 |
Amounts owed by group undertakings | - | - |
Amounts owed by associates | 264,676 | - |
Other debtors | 9,994,971 | 10,279,431 |
Directors' current accounts | 6,687 | - | - | - |
Tax | 385,688 | 626,601 |
VAT | 2,266,856 | - |
Prepayments and accrued income | 1,508,555 | 633,248 |
23,222,682 | 20,888,511 |
Amounts falling due after more than one | year: |
Amounts owed by associates | 31,814 | 178,426 |
Aggregate amounts | 23,254,496 | 21,066,937 |
Amounts owed by group undertakings are interest free and repayable on demand. |
19. | CURRENT ASSET INVESTMENTS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Other | 2,000,000 | - |
The loan balance forwarded to Alta Capital Limited was repaid in full on 3 November 2023. |
The loan attracted interest at 8% per annum, interest received recognised in the Consolidated Income Statement in the period totalled £160,000 (2022: £Nil). |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
20. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 22) | 2,274,808 | 2,105,567 |
Hire purchase contracts (see note 23) | 234,492 | 200,457 |
Trade creditors | 12,439,839 | 4,783,886 |
Amounts owed to group undertakings | - | - |
Tax | 31,203 | 508,685 |
Social security and other taxes | 932,893 | 390,701 |
VAT | - | 44,127 | - | - |
Other creditors | 8,616,772 | 11,618,236 |
Directors' current accounts | 100,001 | - | 100,000 | - |
Accruals and deferred income | 2,518,614 | 2,884,446 |
27,148,622 | 22,536,105 |
Amounts due to group undertakings are interest free and repayable on demand. |
21. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 22) | 60,014 | 22,672 |
Hire purchase contracts (see note 23) | 259,724 | 383,381 |
Other creditors | 430,059 | - |
749,797 | 406,053 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
22. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 24,444 | 6,795 |
Invoice finance | 2,250,364 | 2,098,772 |
2,274,808 | 2,105,567 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 25,726 | 6,967 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 34,288 | 15,705 |
23. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 234,492 | 200,457 |
Between one and five years | 259,724 | 383,381 |
494,216 | 583,838 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 1,426,678 | 982,368 |
Between one and five years | 2,043,971 | 899,511 |
3,470,649 | 1,881,879 |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
24. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts | 494,216 | 583,838 |
Invoice finance | 2,250,364 | 2,098,772 |
Other creditors | 2,531,331 | 2,192,927 |
5,275,911 | 4,875,537 |
Hire purchase borrowings are secured by way of charges over the relevant assets. |
Invoice Finance borrowings in Max Energy Limited are secured by a debenture over the Company's assets. |
Included in Other creditors are borrowings of Effective Energy Solutions Limited totalling £2,531,331, secured by way of fixed and floating charge over the Company's assets. |
25. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 153 | - |
Deferred tax | 271,090 | 240,083 | 17,520 | 11,364 |
271,243 | 240,083 | 17,520 | 11,364 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2022 | 240,083 |
Provided during year | 31,160 |
Balance at 31 March 2023 | 271,243 |
Company |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Charge to Income Statement during year |
Balance at 31 March 2023 |
The provision for deferred tax derives from accelerated capital allowances less other temporary timing differences, at the enacted tax rate of 25% on which the timing difference is expected to unwind. |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
26. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 1 | 10,000 | 10,000 |
B Ordinary | £1 | 102 | 102 |
10,102 | 10,102 |
Ordinary Shares |
Each Ordinary share is entitled to one vote in any circumstances each ordinary share has equal rights to dividends and is entitled to participate in a distribution arising from a winding up of the Company. |
B Ordinary Shares |
Each B Ordinary attracts the right to participate in dividends and distributions upon exit, as well as return of capital. |
B Ordinary shares do not attract voting rights. |
Each share is entitled to one vote in any circumstances. Each share has equal dividend rights. Each share is entitled to participate in a distribution arising from a winding up of the company. |
27. | RESERVES |
Group |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 April 2022 | 7,953,542 | 101,083 | 8,054,625 |
Deficit for the year | (3,866,740 | ) | (3,866,740 | ) |
Cost of share options | - | 15,315 | 15,315 |
At 31 March 2023 | 4,086,802 | 116,398 | 4,203,200 |
Company |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 April 2022 | 314,931 | 101,083 | 416,014 |
Deficit for the year | (3,233,359 | ) | (3,233,359 | ) |
Cost of share options | - | 15,315 | 15,315 |
At 31 March 2023 | (2,918,428 | ) | 116,398 | (2,802,030 | ) |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
28. | PENSION COMMITMENTS |
The Group operates defined contribution schemes for all qualifying employees. The assets of the schemes are held separately from those of the Group in independently administered funds. The contributions payable by the Group charged to the Consolidated Income Statement amounted to £444,154 (2022 £396,707). Contributions totalling £62,596 (2022: £79,053) were payable to the funds at the Balance Sheet date and are included in creditors. |
29. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 March 2023 and 31 March 2022: |
2023 | 2022 |
£ | £ |
G Roddan |
Balance outstanding at start of year | - | 60,000 |
Amounts repaid | - | (60,000 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | - | - |
The loan advanced to Mr G Roddan was interest free. |
30. | 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. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Group |
Our Generation Solar 2 Limited |
During the period sales were made within the group, at an arm's length basis, to Our Generation |
Solar 2 Limited, a Company with a common director to Effective Energy Group Limited, in the sum of £Nil (2022: £Nil). At the Balance Sheet date £16,990 (2022: £16,990) was outstanding from this Company to a group subsidiary. |
Elemental Technologies Limited |
At the Balance Sheet date £911,574 (2022: £122,331) was due from Elemental Technologies Ltd, a Company under common control |
Prem IT Solutions. |
At the Balance Sheet date £296,490 (2022: £178,426) was due from Prem IT Solutions Ltd, an associated undertaking with directors in common. |
All directors and certain senior employees who have authority and responsibility for planning, directing and controlling the activities of the Group are considered to be key management personnel. Total remuneration in respect of these individuals is £1,716,412 (2022: £1,370,192). |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
31. | ULTIMATE CONTROLLING PARTIES |
R J Cox and L J Cottingham are regarded as the ultimate controlling parties of the group on the basis of their shareholdings in the parent company. |
32. | SHARE-BASED PAYMENT TRANSACTIONS |
On 15 November 2020, a number of key group employees were granted share options to vest upon an exit event. The options entitled the employees to acquire a maximum of 1,764 ordinary shares in Effective Energy Group Limited at a value of £1 per share. |
Following a valuation at the Balance Sheet date, the total expected cost of option is £116,398 (2022: £101,083). |
A total of £15,315 (2022: £45,947) has been charged to the Consolidated Income Statement in the year and recognised within equity on the Consolidated Balance Sheet. |
EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
33. | BUSINESS COMBINATIONS |
During the year the group undertook the following business combinations: |
Acquisition of Aztec Solar Energy Limited |
On 2 November 2022 Effective Energy Group Limited acquired 68% of the share capital of Aztec Solar Energy Limited. |
Recognised amounts of identifiable assets acquired and liabilities assumed |
Fair value |
Book value | adjustment | Fair value |
£ | £ | £ |
CURRENT ASSETS |
Stocks | 163,995 | - | 163,955 |
Debtors | 563,937 | - | 563,937 |
Cash at bank and in hand | 48,937 | - | 48,937 |
776,869 | - | 776,869 |
CREDITORS |
Trade creditors | 329,888 | - | 329,888 |
Taxation | 307 | - | 307 |
SSOT | 60,760 | - | 60,760 |
Bank loans and overdrafts | 17,369 | - | 17,369 |
Directors loan accounts | 4,456 | - | 4,456 |
Other creditors and accruals | 275,707 | - | 275,707 |
NET CURRENT ASSETS | 88,382 | - | 88,382 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | (53,292 | ) | - | (53,292 | ) |
PROVISIONS FOR LIABILITIES | - | - | - |
TOTAL IDENTIFIABLE NET ASSETS | 35,090 | - | 35,090 |
NET ASSETS ACQRUIRED (68%) | 23,861 |
Goodwill | 316,139 |
TOTAL PURCHASE CONSIDERATION | 340,000 |
CASH OUTFLOW ON ACQUISITION |
Purchase consideration settled in cash | 340,000 |
Cash and cash equivalents acquired | (48,937 | ) |
NET CASH OUTFLOW ON ACQUISITION | 291,063 |