REGISTERED NUMBER: 01053189 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30 September 2023 |
for |
Renelec Limited |
REGISTERED NUMBER: 01053189 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30 September 2023 |
for |
Renelec Limited |
Renelec Limited (Registered number: 01053189) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 September 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 7 |
Report of the Independent Auditors | 9 |
Consolidated Statement of Comprehensive Income | 12 |
Consolidated Balance Sheet | 13 |
Company Balance Sheet | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Financial Statements | 20 |
Renelec Limited |
Company Information |
for the Year Ended 30 September 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & Statutory Auditor |
The Old Post Office |
41-43 Market Place |
Chippenham |
Wiltshire |
SN15 3HR |
Renelec Limited (Registered number: 01053189) |
Group Strategic Report |
for the Year Ended 30 September 2023 |
Principal activities |
The principal activity of the Company is that of a holding company and supplier of management and business services to its subsidiaries. |
Renelec Limited acts as Parent Company to Renelec Building Services Limited, Renelec Chalgrove Limited, Renelec Groundworks Limited, Renelec Hennion Limited, Renelec Construction Limited, Brownston Homes Limited and Renelec Plant Hire Limited (formerly Brownston Developments Limited). The principal activities of the Group are those of the trading subsidiaries: electrical contracting, plumbing and heating contracting, groundworks contracting, and heating and ventilation contracting in the United Kingdom. |
REVIEW OF BUSINESS |
The group operates in the construction industry providing electrical, plumbing and heating, groundworks, heating and ventilation, and construction services in the South of England. |
During the year, the group has seen turnover increase by 4.8% to £61.9m and gross profit margin decrease from 12.6% to 12.3%. Considering the pressure on volatile material prices during the year and the industry being extremely competitive, these results are a testament to the disciplines embedded within the group and the commitment from all our employees and subcontractors. |
We continue to have strong relationships with all our clients who value the product and service we provide. Our proactive approach to avoid material shortages and minimise impact on productivity, further enhanced our reputation with clients. |
Investment in the right technology is always at the forefront to ensure controls and processes evolve improving efficiencies. During the year, the group continued this investment in further development of its Customer Care System, a CCTV drainage vehicle, GPS setting out equipment and standard IT systems. |
The group has and will always prioritise operating without utilising its overdraft facility. This is part of the strength of the group and is managed extremely carefully, supporting subsidiaries as and when is required. Cash at the end of the year has improved by £700k, aided by plot sales on the development projects within Construction, with only one plot remaining at year end. Negotiations continue on one potential site which is expected to complete in spring 2024 to provide continuity in the future. |
The group has a strong order book going into the next financial year which is currently over £32m at year-end and over £17m under consideration for. The tenders that are submitted, yet to have decisions on, is at its highest level across the group due to the delays that the housebuilders are experiencing on planning consents and the lack of resources within local authority planning departments. |
Companies within the group consistently achieve awards for their work within the industry, which is a reflection of the quality of service it provides. |
The group has proven that it can react to any situation and act accordingly, which should ensure its continued success. |
Renelec Limited (Registered number: 01053189) |
Group Strategic Report |
for the Year Ended 30 September 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The construction industry is influenced by various factors outside the group's control. These would include government intervention, confidence, unemployment, inflation, interest rates and labour. |
To mitigate the impact of the constant price increases we have reduced the fixed price period and will ensure this is reviewed regularly. |
As we approach 2024, the group has made a strategic decision to target less speculative housing projects which have become increasingly competitive. More tenders are focusing on housing association and shared ownership where there is less volatility. |
Tenders were being received steadily throughout the year. Once converted into secured contracts, further challenges which are out of our control getting these into "live" status are being disrupted by mortgage lending, housebuilders delaying site starts or limiting production. Delays have been very prominent to our clients caused by frustrations with obtaining planning permissions which has a knock-on effect right through the supply chain. |
The availability of skilled labour also impacts our business as there is a shortage of all trades. Renelec Group look to train all their workforce to high standards and actively encourage an apprenticeship programme. |
Retentions is a significant consideration in terms of cash flow and when they fall due, great emphasis is put on collection to ensure this does not impact the liquidity of the group. |
Given that the group works on construction sites which are inherently dangerous, we take the health and safety of our employees, subcontractors, clients and general public as of paramount importance. We strive to ensure that all our stakeholders are well trained, kept up to date on new legalisation and encourage a zero-harm environment in which they operate in. |
To mitigate both risk and uncertainty relationships with client and suppliers need to be maintained and new client and procurement opportunities developed. |
GOING CONCERN |
The directors prepare both budgets and cash flow forecasts for a period extending to at least twelve months from the date of approval of these financial statements. The directors are satisfied that these forecasts, which take account of trading performance, secured turnover and tendered contracts, provide a reasonable expectation that the group can continue in operational existence for the foreseeable future. For this reason, the group continues to adopt the going concern basis. |
FINANCIAL KEY PERFORMANCE INDICATORS |
The directors monitor the group's progress against its strategic objectives and the financial performance of the group's operations on a regular basis producing monthly management accounts. Two key financial performance indicators are turnover (growth) and gross profit % (profitability). |
For the year ended 30 September 2023, turnover was £61,875,735 (2022 - £59,054,479) - this represents a 4.8% increase on the previous year. |
Gross profit % for the year ended 30 September 2023 was 12.3% (2022 - 12.6%) - this represents a 0.3% decrease on the previous year. |
The group is forecasting turnover of £65m and a gross profit of 12.3% for the forthcoming year. The directors are confident that gross profit % will be improved due to efficiencies and procurement savings. |
Renelec Limited (Registered number: 01053189) |
Group Strategic Report |
for the Year Ended 30 September 2023 |
DIRECTORS STATEMENT OF COMPLIANCE WITH DUTY TO PROMOTE THE SUCCESS OF THE GROUP |
The directors, in line with their duties under s172 (1) of the Companies Act 2006, act individually and collectively in the way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members, and in doing so have regard, amongst other matters, to the: |
- Likely consequences of any decision in the long term |
- Interests of the Group's employees |
- Need to foster the Group's business relationships with suppliers, customers and others |
- Impact of the Group's operations on the community and the environment |
- Desirability of the Group maintaining a reputation for high standards of business conduct |
- Need to act fairly as between members of the Group |
The directors regard to these matters is embedded in their decision-making process, through the Group's business strategy, culture, governance framework, management information flows and stakeholder engagement process. |
The Group's business strategy is focused on achieving success for the Group in the long-term. In setting this strategy, the Board (made up of the Company directors) takes into account the impact of relevant factors and stakeholder interests on the Group's performance. The Board also identifies principal risks facing the business and sets risk management objectives. |
The Board promotes a culture of upholding the highest standards of business conduct and regulatory conduct. The Board ensures these core values are communicated to the Group's employees and embedded in the Group's policies and procedures, employee induction and training programmes and its risk control. |
The Board recognises that building strong and lasting relationships with our stakeholders will help the Group to deliver its strategy in line with its long-term values and operate a sustainable business. |
The directors are supported in the discharge of their duties by: |
- Processes which ensure the provision of timely management information and escalation through reporting lines to the Board from the Group's subsidiary companies, its risk and control functions and support teams of the board. |
- Agenda planning for Board meetings to provide sufficient time for the consideration and discussion of key matters. |
STAKEHOLDERS |
The board understands the importance of engagement with all stakeholders and gives appropriate weighting to the outcome of its decision for the relevant stakeholder in weighing up how best to promote the success of the Group. |
The Board regularly discusses issues concerning employees, suppliers/subcontractors, clients, community and environment, regulators, shareholders and health and safety, which it takes into account in its discussions and in its decision-making process. In addition to this, the Board seeks to understand the interests and views of the Group's stakeholders by engaging with them directly when required. The key decisions during the year included the sale and purchase of property, payment of dividends and draw down of bank loans. The below summarises the key stakeholders and how the Group engages with each stakeholder: |
ENGAGEMENT WITH EMPLOYEES |
Our employees contribute to a positive working environment. Employees are key to the success of our business. In addition to aiming to be a responsible employer in our approach to pay and benefits, we continue to engage with our team to ascertain which training and development opportunities should be made to improve our team's productivity and our individual employees potential within the business. |
We continually invest in employee development and wellbeing to create and encourage an inclusive culture within the organisation. |
Renelec Limited (Registered number: 01053189) |
Group Strategic Report |
for the Year Ended 30 September 2023 |
Our culture invites different perspectives, new ideas and opportunities for growth. We work hard to ensure our employees feel welcome, are valued and recognised for their hard work. Monthly directors' meetings and senior management meetings of all companies give all members of the Group the opportunity to present ideas and achievements. These update the team on the performance of the Group including financial performance and progress against strategy. |
Employees also have access to various external support. These are Westfield Health 24/7 Counselling and Advice Line and Unum's Employee Assistance Programme (EAP). |
ENGAGEMENT WITH SUPPLIERS AND SUBCONTRACTORS |
Our suppliers and subcontractors are key stakeholders in the business, we seek to ensure we engage with all our suppliers and subcontractors in partnership and follow various principals in our engagement with them. These include: |
- Operating tender processes for orders above set limits |
- Paying to terms on agreed invoices and applications |
- Seeking supplier and subcontractor views on our manner of engagement and areas for improvement |
- Having clear codes of conduct and policies |
We have multiple long-term supplier partnerships which have been built by following our culture and values and embedding them in the relationships we build. |
ENGAGEMENT WITH CLIENTS |
Our clients are at the centre of our business. |
Our commercial and site-based teams build lasting relationships with our current and potential clients to understand their objectives and requirements. We are in regular contact with our clients to ensure that projects are completed to deadlines in the most effective and efficient manner. This includes attending face to face meetings or update calls, depending on the client's preference. We will also liaise and work with the client during the tender process to ensure that the contract is carried out to its maximum potential. |
OUR COMMUNITY AND THE ENVIRONMENT |
The community and the environment are of high importance to the Board. |
The business supports various charities including Wiltshire Air Ambulance and Julia's House, a children's hospice in Dorset and Wiltshire. |
The business also sponsors various teams in junior sport. Teams in Wiltshire, Oxford and Berkshire benefit hugely from this sponsorship. The business also supports Wiltshire Cricket through their sponsorship package of all their age groups for the whole season. |
Renelec Limited (Registered number: 01053189) |
Group Strategic Report |
for the Year Ended 30 September 2023 |
ENGAGEMENT WITH REGULATORS |
We work with regulators in a proactive manner to develop regulations that meet the needs of all our stakeholders. |
The Board's intention is to behave responsibly and to ensure that the management team operates in a responsible manner. In doing so, we believe we will achieve our long-term business strategy and further develop our reputation in the construction sector. |
We have a risk and control framework to ensure the Group complies with all legal and regulatory requirements. |
ON BEHALF OF THE BOARD: |
Renelec Limited (Registered number: 01053189) |
Report of the Directors |
for the Year Ended 30 September 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 September 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 September 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2022 to the date of this report. |
ENGAGEMENT WITH EMPLOYEES |
The Group's employment policies do not discriminate between employees or potential employees on the grounds of gender, sexual orientation, age, colour, creed, ethnic origin, religious beliefs, pregnancy or maternity or trade union membership. It is Group policy to give full and fair consideration to applicants for employment by and the employment needs of disabled persons (and in the case of employment needs, persons who become disabled whilst employed by the Group) where requirements may be adequately covered by these persons and to comply with any current legislation with regard to disabled persons. |
The directors recognise the importance of good communications with employees. The management of each Company in the Group are encouraged to make employees aware of the financial and economic factors affecting their respective companies and the Group as a whole. This is assisted through the medium of monthly management meetings and internal publications when required. Employees are consulted on a regular basis so that employee views may be taken into account when decisions are made that may affect their interests. |
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. |
Renelec Limited (Registered number: 01053189) |
Report of the Directors |
for the Year Ended 30 September 2023 |
AUDITORS |
The auditors, Mander Duffill, 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 |
Renelec Limited |
Opinion |
We have audited the financial statements of Renelec Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2023 which comprise the Consolidated Statement of 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 30 September 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 |
Renelec 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 seven, 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. |
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: |
In planning and designing our audit tests, we identify and assess the risks of material mis-statements, whether due to fraud or error. Our risk assessment procedures included: |
- Enquiries of management about the entities policies and procedures on compliance with laws and regulations and whether they were aware of any instances of noncompliance together with the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations. |
- Enquiries of management about the entities policies and procedures on fraud risks, including any actual, suspected or alleged fraud. |
- Considered the nature of the industry and sector, control environment and business performance including the key drivers for directors' remuneration, bonus levels and performance targets. |
- Reading minutes of meetings of those charged with governance. |
We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
Report of the Independent Auditors to the Members of |
Renelec Limited |
We obtained an understanding of the legal and regulatory frameworks that the entity operates in, through discussions with the director, and from our commercial knowledge and experience of the sector in which the company operates, to enable us to identify the key laws and regulations applicable to the company. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statement or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls including the following: |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
- Enquiry of management concerning actual and potential litigation and claims. |
- Reviewing correspondence with HMRC, and the company's legal advisors. |
- Addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether judgements made in making accounting estimates are indicative of a potential bias, and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. |
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants & Statutory Auditor |
The Old Post Office |
41-43 Market Place |
Chippenham |
Wiltshire |
SN15 3HR |
Renelec Limited (Registered number: 01053189) |
Consolidated |
Statement of Comprehensive |
Income |
for the Year Ended 30 September 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ |
TURNOVER | 4 | 61,875,735 | 59,054,479 |
Cost of sales | 54,276,838 | 51,609,834 |
GROSS PROFIT | 7,598,897 | 7,444,645 |
Administrative expenses | 7,100,910 | 6,804,051 |
497,987 | 640,594 |
Other operating income | 5 | 60,884 | 64,813 |
OPERATING PROFIT | 7 | 558,871 | 705,407 |
Interest receivable and similar income | 9 | 111,111 | 32,395 |
669,982 | 737,802 |
Gain/loss on revaluation of investment property |
- |
65,000 |
669,982 | 802,802 |
Interest payable and similar expenses | 10 | 93,971 | 66,682 |
PROFIT BEFORE TAXATION | 576,011 | 736,120 |
Tax on profit | 11 | 25,735 | (217,486 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
550,276 |
953,606 |
Profit attributable to: |
Owners of the parent | 550,276 | 953,606 |
Total comprehensive income attributable to: |
Owners of the parent | 550,276 | 953,606 |
Renelec Limited (Registered number: 01053189) |
Consolidated Balance Sheet |
30 September 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 14 | 3,006,998 | 2,738,091 |
Investments | 15 | - | - |
Investment property | 16 | 1,310,029 | 1,310,029 |
4,317,027 | 4,048,120 |
CURRENT ASSETS |
Stocks | 17 | 1,156,898 | 2,004,589 |
Debtors | 18 | 16,032,202 | 15,067,120 |
Investments | 19 | 500,000 | 500,000 |
Cash at bank and in hand | 5,275,939 | 5,195,570 |
22,965,039 | 22,767,279 |
CREDITORS |
Amounts falling due within one year | 20 | 21,858,131 | 21,634,984 |
NET CURRENT ASSETS | 1,106,908 | 1,132,295 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,423,935 |
5,180,415 |
CREDITORS |
Amounts falling due after more than one year |
21 |
(851,874 |
) |
(1,150,581 |
) |
PROVISIONS FOR LIABILITIES | 24 | (326,805 | ) | (334,854 | ) |
NET ASSETS | 4,245,256 | 3,694,980 |
CAPITAL AND RESERVES |
Called up share capital | 25 | 48,590 | 48,590 |
Share premium | 26 | 259,909 | 259,909 |
Revaluation reserve | 26 | 90,845 | 95,627 |
Capital redemption reserve | 26 | 4,000 | 4,000 |
Retained earnings | 26 | 3,841,912 | 3,286,854 |
SHAREHOLDERS' FUNDS | 4,245,256 | 3,694,980 |
The financial statements were approved by the Board of Directors and authorised for issue on 27 March 2024 and were signed on its behalf by: |
J Skeen - Director |
Renelec Limited (Registered number: 01053189) |
Company Balance Sheet |
30 September 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 14 |
Investments | 15 |
Investment property | 16 |
CURRENT ASSETS |
Debtors | 18 |
Investments | 19 |
Cash in hand |
CREDITORS |
Amounts falling due within one year | 20 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
21 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 24 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 25 |
Share premium | 26 |
Revaluation reserve | 26 |
Capital redemption reserve | 26 |
Retained earnings | 26 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 121,914 | 937,047 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Renelec Limited (Registered number: 01053189) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 September 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 October 2021 | 48,590 | 3,078,466 | 259,909 |
Changes in equity |
Dividends | - | (750,000 | ) | - |
Total comprehensive income | - | 958,388 | - |
Balance at 30 September 2022 | 48,590 | 3,286,854 | 259,909 |
Changes in equity |
Total comprehensive income | - | 555,058 | - |
Balance at 30 September 2023 | 48,590 | 3,841,912 | 259,909 |
Capital |
Revaluation | redemption | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 October 2021 | 100,409 | 4,000 | 3,491,374 |
Changes in equity |
Dividends | - | - | (750,000 | ) |
Total comprehensive income | (4,782 | ) | - | 953,606 |
Balance at 30 September 2022 | 95,627 | 4,000 | 3,694,980 |
Changes in equity |
Total comprehensive income | (4,782 | ) | - | 550,276 |
Balance at 30 September 2023 | 90,845 | 4,000 | 4,245,256 |
Renelec Limited (Registered number: 01053189) |
Company Statement of Changes in Equity |
for the Year Ended 30 September 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 October 2021 | 48,590 | 243,154 | 259,909 |
Changes in equity |
Dividends | - | (750,000 | ) | - |
Total comprehensive income | - | - |
Balance at 30 September 2022 | 48,590 | 431,745 | 259,909 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 30 September 2023 | 48,590 | 555,203 | 259,909 |
Capital |
Revaluation | redemption | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 October 2021 | 32,457 | 4,000 | 588,110 |
Changes in equity |
Dividends | - | - | ( |
) |
Total comprehensive income | ( |
) |
Balance at 30 September 2022 | 30,913 | 4,000 | 775,157 |
Changes in equity |
Total comprehensive income | ( |
) |
Balance at 30 September 2023 | 29,369 | 4,000 | 897,071 |
Renelec Limited (Registered number: 01053189) |
Consolidated Cash Flow Statement |
for the Year Ended 30 September 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,924,408 | 1,559,126 |
Interest paid | (45,872 | ) | (39,896 | ) |
Interest element of hire purchase payments paid |
(48,099 |
) |
(26,786 |
) |
Tax paid | 12,745 | 104,635 |
Net cash from operating activities | 1,843,182 | 1,597,079 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (358,226 | ) | (245,375 | ) |
Sale of tangible fixed assets | 364,169 | 749,308 |
Sale of short term unlisted investments | - | 500,000 |
Interest received | 111,111 | 32,395 |
Net cash from investing activities | 117,054 | 1,036,328 |
Cash flows from financing activities |
New loans in year | - | 590,000 |
Loan repayments in year | (580,481 | ) | (349,117 | ) |
Group loan provided | (7,400 | ) | - |
Capital repayments in year | (671,929 | ) | (789,674 | ) |
Equity dividends paid | - | (750,000 | ) |
Net cash from financing activities | (1,259,810 | ) | (1,298,791 | ) |
Increase in cash and cash equivalents | 700,426 | 1,334,616 |
Cash and cash equivalents at beginning of year |
2 |
2,216,861 |
882,245 |
Cash and cash equivalents at end of year |
2 |
2,917,287 |
2,216,861 |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 September 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.9.23 | 30.9.22 |
£ | £ |
Profit before taxation | 576,011 | 736,120 |
Depreciation charges | 763,646 | 564,205 |
Profit on disposal of fixed assets | (228,685 | ) | (435,901 | ) |
Gain on revaluation of fixed assets | - | (65,000 | ) |
Finance costs | 93,971 | 66,682 |
Finance income | (111,111 | ) | (32,395 | ) |
1,093,832 | 833,711 |
Decrease/(increase) in stocks | 847,691 | (958,661 | ) |
(Increase)/decrease in trade and other debtors | (1,004,211 | ) | 489,810 |
Increase in trade and other creditors | 987,096 | 1,194,266 |
Cash generated from operations | 1,924,408 | 1,559,126 |
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 30 September 2023 |
30.9.23 | 1.10.22 |
£ | £ |
Cash and cash equivalents | 5,275,939 | 5,195,570 |
Bank overdrafts | (2,358,652 | ) | (2,978,709 | ) |
2,917,287 | 2,216,861 |
Year ended 30 September 2022 |
30.9.22 | 1.10.21 |
£ | £ |
Cash and cash equivalents | 5,195,570 | 3,301,940 |
Bank overdrafts | (2,978,709 | ) | (2,419,695 | ) |
2,216,861 | 882,245 |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 September 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
Other |
non-cash |
At 1.10.22 | Cash flow | changes | At 30.9.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 5,195,570 | 80,369 | 5,275,939 |
Bank overdrafts | (2,978,709 | ) | 620,057 | (2,358,652 | ) |
2,216,861 | 700,426 | 2,917,287 |
Liquid resources |
Current asset |
investments | 500,000 | - | - | 500,000 |
500,000 | - | - | 500,000 |
Debt |
Finance leases | (1,262,461 | ) | 671,929 | - | (1,400,343 | ) |
Debts falling due |
within 1 year | (576,846 | ) | 358,004 | - | (218,842 | ) |
Debts falling due |
after 1 year | (407,010 | ) | 222,477 | - | (184,533 | ) |
(2,246,317 | ) | 1,252,410 | - | (1,803,718 | ) |
Total | 470,544 | 1,952,836 | - | 1,613,569 |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 September 2023 |
1. | STATUTORY INFORMATION |
Renelec Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going Concern |
The directors prepare both budgets and cash flow forecasts for at least 12 months from the date of approval of these financial statements and they are satisfied that those forecasts provide reasonable expectation that the company can continue in operational existence for the foreseeable future. |
The forecasts prepared take account of current market conditions including the impact of higher interest rates and inflation, post year end trading performance, secured turnover and tendered contracts. The directors have also considered the amount by which turnover is required to fall such that the business may not be able to meet its liabilities as they fall due and on the basis of post year end trading to date, the current order book and market expectations, they consider chance of such a significant fall in turnover to be remote. Management continually reviews credit terms offered to customers and outstanding balances. |
The result of these reviews is that the directors are satisfied that the company can meet its liabilities as they fall due for a period of at least 12 months from approval of the financial statements and therefore it is appropriate to prepare the financial statements on a going concern basis. |
Basis of consolidation |
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between Group companies are therefore eliminated in full. |
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Consolidated Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. |
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 1 October 2014. |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised: |
Rendering of services |
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied.: |
- the amount of turnover can be measured reliably; |
- it is probable that the group will receive the consideration due under the contract; |
- the stage of completion of the contract at the end of the reporting period can be measured reliably; |
- the costs incurred and the costs to complete the contract can be measured reliably |
On contracts that are forecast to be profitable, profit is taken on the basis of the value of work carried out at the Statement of Financial Position date, taking into account the stage of completion of the contract and total expected costs at the various stages of the contract. Turnover derived from variations on contracts are recognised only when they have been accepted by the customer. |
On contracts that are forecast to be loss-making, all of the loss is recognised as soon as it is foreseen irrespective of the stage of completion of the contract. |
Tangible fixed assets |
Tangible fixed assets, other than freehold and investment properties, are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. |
Depreciation is provided on the following basis: |
Freehold property | 30 years straight line |
Long-term leasehold property | 30 years straight line |
Fixture, fittings, tools & equipment | 3 to 5 years straight line |
Motor vehicles | 4 or 5 years straight line (new purchases) |
1 or 2 years straight line (second hand purchases) |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated Statement of Comprehensive Income. |
Revaluation of tangible fixed assets |
Individual freehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Consolidated Balance Sheet date. |
Revaluation gains and losses are recognised in the revaluation reserve unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in the Consolidated Statement of Comprehensive Income. |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
2. | ACCOUNTING POLICIES - continued |
Investment property |
Investment properties are carried at fair value determined annually by the directors, and every three years by external valuers, and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in Consolidated Statement of Comprehensive Income. |
Stocks |
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. |
At each Consolidated Balance Sheet date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the profit or loss. |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to and from related parties. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in the case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the group would receive for the asset if it were to be sold at the reporting date. |
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
Creditors |
Short-term creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of acquisition costs, and are measured subsequently at amortised cost using the effective interest method. |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Operating leases |
Operating leases: the Group as lessee |
Rentals paid under operating leases are charged to the Consolidated Statement of Comprehensive Income on a straight-line basis over the lease term. |
Leased assets: the Group as lessee |
Where assets are financed by leasing agreements that give rights approximating to ownership (finance leases), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable over the term of the lease. The corresponding leasing commitments are shown as amounts payable to the lessor. Depreciation of the relevant assets is charged to the Consolidated Statement of Comprehensive Income over the estimated useful economic life. |
Lease payments are analysed between capital and interest components so that the interest element of the payment is charged to the Consolidated Statement of Comprehensive Income over the term of the lease and is calculated so that it represents a constant proportion of the balance of capital repayments outstanding. The capital part reduces the amounts payable to the lessor. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme for its employees. A defined contribution pension scheme is a pension scheme under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid, the Group has no further payment obligations. |
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Consolidated Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds. |
Interest income |
Interest income is recognised in profit or loss using the effective interest method. |
Finance costs |
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In preparing the financial statements, the directors have made the following judgements: |
- Determine whether leases entered into by the Group either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. |
- Determine whether there are indicators of impairment of the Group's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. |
Other key sources of estimation uncertainty: |
- Tangible fixed assets |
Tangible fixed assets, other than investment properties, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. |
- Investment properties |
Investment properties are professionally valued every three years, with valuations made by the directors in the intervening years. There is an inevitable degree of judgement involved, in that each property is unique and the value can only ultimately be reliably tested in the market itself. Where properties are mixed use, being for the Company's own use as well as generating rental income, the value recognised within investment properties is based on the proportion of floor area not occupied by the Company. |
- Long term contracts |
Profit associated with a long-term contract can be recognised only where the profitable outcome can be estimated reliably. Estimation of the outcome requires estimates of the stage of completion or value of work completed at the end of the reporting period, future costs and the collectability of amounts claimed from the customer. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
30.9.23 | 30.9.22 |
£ | £ |
Electrical | 5,374,276 | 3,929,933 |
Plumbing and heating | 22,175,004 | 22,225,587 |
Groundworks | 25,820,094 | 27,246,979 |
Heating and ventilation | 4,617,806 | 2,886,105 |
Construction | 3,888,555 | 2,765,875 |
61,875,735 | 59,054,479 |
All turnover arose within the United Kingdom. |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
5. | OTHER OPERATING INCOME |
30.9.23 | 30.9.22 |
£ | £ |
Rents received | 60,884 | 64,813 |
6. | EMPLOYEES AND DIRECTORS |
30.9.23 | 30.9.22 |
£ | £ |
Wages and salaries | 9,956,917 | 10,153,947 |
Social security costs | 978,331 | 1,088,541 |
Other pension costs | 498,789 | 468,823 |
11,434,037 | 11,711,311 |
The average number of employees during the year was as follows: |
30.9.23 | 30.9.22 |
Operatives including apprentices | 149 | 147 |
Other staff and directors | 86 | 91 |
The average number of employees by undertakings that were proportionately consolidated during the year was 235 (2022 - 238 ) . |
30.9.23 | 30.9.22 |
£ | £ |
Directors' remuneration | 1,067,501 | 1,184,532 |
Directors' pension contributions to money purchase schemes | 22,433 | 22,025 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
Information regarding the highest paid director is as follows: |
30.9.23 | 30.9.22 |
£ | £ |
Emoluments etc | 443,510 | 413,204 |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.9.23 | 30.9.22 |
£ | £ |
Hire of plant and machinery | 125,116 | 113,343 |
Other operating leases | 1,019,903 | 1,312,218 |
Depreciation - owned assets | 763,646 | 564,205 |
Profit on disposal of fixed assets | (228,685 | ) | (435,901 | ) |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
8. | AUDITORS' REMUNERATION |
30.09.23 | 30.09.22 |
£ | £ |
Fees payable to the Company's auditor and its associates for the audit of the consolidated and parent company's financial statements |
7,000 |
12,300 |
Fees payable to the Company's auditor and its associates in respect of: |
The auditing of accounts of associates of the Group pursuant to legislation |
39,900 |
53,500 |
Other services relating to taxation and accounts preparation | 20,100 | 22,250 |
9. | INTEREST RECEIVABLE AND SIMILAR INCOME |
30.9.23 | 30.9.22 |
£ | £ |
Interest received | 111,111 | 32,395 |
10. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.9.23 | 30.9.22 |
£ | £ |
Bank and other interest |
payable | 45,872 | 39,896 |
Hire purchase interest payable | 48,099 | 26,786 |
93,971 | 66,682 |
11. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
30.9.23 | 30.9.22 |
£ | £ |
Current tax: |
Prior year tax adjustment | 33,784 | (386,048 | ) |
Deferred tax: |
Deferred tax | 167,035 | 168,562 |
Deferred tax - prior periods | (175,084 | ) | - |
Total deferred tax | (8,049 | ) | 168,562 |
Tax on profit | 25,735 | (217,486 | ) |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
11. | TAXATION - continued |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
30.9.23 | 30.9.22 |
£ | £ |
Profit before tax | 576,011 | 736,120 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
144,003 |
139,863 |
Effects of: |
Expenses not deductible for tax purposes | 50,640 | 50,531 |
Utilisation of tax losses | 21,011 | 73,376 |
Adjustments to tax charge in respect of previous periods | (141,300 | ) | (401,982 | ) |
Fixed asset differences | (48,619 | ) | (124,560 | ) |
Other permanent differences | - | 19 |
Chargeable gains | - | 9,498 |
Movement in deferred tax not recognised | - | (8,509 | ) |
Remeasurement of deferred tax for changes in tax rates | - | 44,278 |
Total tax charge/(credit) | 25,735 | (217,486 | ) |
12. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
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. |
13. | DIVIDENDS |
30.9.23 | 30.9.22 |
£ | £ |
Ordinary C shares of £1 each |
Dividend - paid in the year | - | 750,000 |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
14. | TANGIBLE FIXED ASSETS |
Group |
Fixtures, |
fittings, |
Freehold | tools & | Motor |
property | equipment | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 October 2022 | 688,671 | 1,288,966 | 2,498,473 | 4,476,110 |
Additions | - | 331,046 | 836,991 | 1,168,037 |
Disposals | - | (47,405 | ) | (725,400 | ) | (772,805 | ) |
At 30 September 2023 | 688,671 | 1,572,607 | 2,610,064 | 4,871,342 |
DEPRECIATION |
At 1 October 2022 | 131,990 | 484,610 | 1,121,419 | 1,738,019 |
Charge for year | 3,443 | 305,985 | 454,218 | 763,646 |
Eliminated on disposal | - | (45,988 | ) | (591,333 | ) | (637,321 | ) |
At 30 September 2023 | 135,433 | 744,607 | 984,304 | 1,864,344 |
NET BOOK VALUE |
At 30 September 2023 | 553,238 | 828,000 | 1,625,760 | 3,006,998 |
At 30 September 2022 | 556,681 | 804,356 | 1,377,054 | 2,738,091 |
Freehold land and buildings were subject to a professional valuation at open market value by Carter Jonas LLP, a firm of independent Chartered Surveyors, during the year ended 30 September 2021. The directors have reviewed the valuations at the year end and confirm that they consider the values have not changed. The valuations do not include notional directly attributable acquisition costs and expected selling costs have not been deducted. |
If the freehold and buildings had not been included at valuation, they would have been included under the historical cost convention as follows: |
Group | 30.09.23 | 30.09.22 |
£ | £ |
Cost | 650,840 | 650,840 |
Accumulated depreciation | (246,985 | ) | (228,811 | ) |
403,855 | 422,029 |
The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows: |
30.09.23 | 30.09.22 |
£ | £ |
Fixtures, fittings, tools and equipment | 632,119 | 641,343 |
Motor vehicles | 1,486,850 | 1,317,515 |
2,118,969 | 1,958,858 |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
14. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures, |
fittings, |
Freehold | tools & | Motor |
property | equipment | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 October 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 30 September 2023 |
DEPRECIATION |
At 1 October 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
15. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 October 2022 |
and 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Brownston House, New Park Street, Devizes, Wiltshire, SN10 1DS |
Nature of business: |
% |
Class of shares: | holding |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
15. | FIXED ASSET INVESTMENTS - continued |
Registered office: Brownston House, New Park Street, Devizes, Wiltshire, SN10 1DS |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Brownston House, New Park Street, Devizes, Wiltshire, SN10 1DS |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Brownston House, New Park Street, Devizes, Wiltshire, SN10 1DS |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Brownston House, New Park Street, Devizes, Wiltshire, SN10 1DS |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Brownston House, New Park Street, Devizes, Wiltshire, SN10 1DS |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Brownston House, New Park Street, Devizes, Wiltshire, SN10 1DS |
Nature of business: |
% |
Class of shares: | holding |
16. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 October 2022 |
and 30 September 2023 | 1,310,029 |
NET BOOK VALUE |
At 30 September 2023 | 1,310,029 |
At 30 September 2022 | 1,310,029 |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
16. | INVESTMENT PROPERTY - continued |
Group |
Investment properties were subject to a professional valuation during the year ended 30 September 2021 at open market value by Carter Jonas LLP and Andrew Forbes Ltd, two independent chartered surveyor firms. The directors performed a further review of property valuations during the year ended 30 September 2022 and considered the total value had increased by £65,000. |
Fair value at 30 September 2023 is represented by: |
£ |
Valuation in 2022 | 65,000 |
Valuation in 2021 | 159,325 |
Cost | 1,085,704 |
1,310,029 |
Company |
Total |
£ |
FAIR VALUE |
At 1 October 2022 |
and 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
Fair value at 30 September 2023 is represented by: |
£ |
Valuation in 2022 | 65,000 |
Valuation in 2021 | 748,159 |
Cost | 1,085,704 |
1,898,863 |
Investment properties were subject to a professional valuation during the year ended 30 September 2021 at open market value by Carter Jonas LLP and Andrew Forbes Ltd, two independent chartered surveyor firms. The directors have performed a further review of property valuations during the year ended 30 September 2023. |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
17. | STOCKS |
Group |
30.9.23 | 30.9.22 |
£ | £ |
Development land | 871,125 | 1,761,647 |
Finished goods | 7,470 | 75,038 |
878,595 | 1,836,685 |
Long term contract balances - |
Net cost less foreseeable |
losses | 753,855 | 969,386 |
Excess payments on account | (475,552 | ) | (801,482 | ) |
278,303 | 167,904 |
1,156,898 | 2,004,589 |
18. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.9.23 | 30.9.22 | 30.9.23 | 30.9.22 |
£ | £ | £ | £ |
Trade debtors | 12,611,915 | 11,855,811 |
Amounts owed by group undertakings | 1,424,250 | 1,416,850 |
Amounts recoverable on contract | 962,624 | 642,703 |
Other debtors | 514,271 | 756,467 |
Tax | 73,364 | 119,893 |
Prepayments | 445,778 | 275,396 |
16,032,202 | 15,067,120 |
Amounts owed by group undertakings are unsecured, repayable on demand and do not bear interest. |
19. | CURRENT ASSET INVESTMENTS |
Group | Company |
30.9.23 | 30.9.22 | 30.9.23 | 30.9.22 |
£ | £ | £ | £ |
Other investments (liquid) | 500,000 | 500,000 |
20. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.9.23 | 30.9.22 | 30.9.23 | 30.9.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 22) | 2,577,494 | 3,555,555 |
Hire purchase contracts (see note 23) | 733,002 | 518,890 |
Payments on account | 5,508,625 | 4,553,133 |
Trade creditors | 7,031,887 | 7,971,866 |
Social security and other taxes | 622,913 | 602,348 |
Other creditors | 718,192 | 900,271 |
Accrued expenses | 4,666,018 | 3,532,921 |
21,858,131 | 21,634,984 |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
20. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued |
The bank overdraft and loan facility are secured by a first legal charge over certain group properties, a debenture over the assets of the company and an unlimited intercompany composite guarantee. |
Assets held under finance leases and hire purchase contracts are secured on the assets held by the group. |
21. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
30.9.23 | 30.9.22 | 30.9.23 | 30.9.22 |
£ | £ | £ | £ |
Bank loans (see note 22) | 184,533 | 407,010 |
Hire purchase contracts (see note 23) | 667,341 | 743,571 |
851,874 | 1,150,581 |
The bank overdraft and loan facility are secured by a first legal charge over certain group properties, a debenture over the assets of the company and an unlimited intercompany composite guarantee. |
Assets held under finance leases and hire purchase contracts are secured on the assets held by the group. |
22. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
30.9.23 | 30.9.22 | 30.9.23 | 30.9.22 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank overdrafts | 2,358,652 | 2,978,709 |
Bank loans | 218,842 | 576,846 |
2,577,494 | 3,555,555 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 99,200 | 235,785 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 85,333 | 171,225 |
Bank loans consist of various loans being repaid by instalments. The loans bear interest at 2.5% and 3.4% above Handelsbanken base rate. |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
23. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
30.9.23 | 30.9.22 |
£ | £ |
Net obligations repayable: |
Within one year | 733,002 | 518,890 |
Between one and five years | 667,341 | 743,571 |
1,400,343 | 1,262,461 |
Company |
Hire purchase contracts |
30.9.23 | 30.9.22 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Group |
Non-cancellable | operating leases |
30.9.23 | 30.9.22 |
£ | £ |
Within one year | 50,705 | 55,408 |
Between one and five years | 71,610 | 96,345 |
122,315 | 151,753 |
Company |
Non-cancellable | operating leases |
30.9.23 | 30.9.22 |
£ | £ |
Within one year |
Between one and five years |
24. | PROVISIONS FOR LIABILITIES |
Group | Company |
30.9.23 | 30.9.22 | 30.9.23 | 30.9.22 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 458,326 | 452,244 |
Tax losses carried forward | (105,393 | ) | (101,106 | ) | ( |
) | ( |
) |
Short term timing differences | (26,128 | ) | (16,284 | ) | - | (6,330 | ) |
326,805 | 334,854 | 406,566 | 396,523 |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
24. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 October 2022 | 334,854 |
Credit to Statement of Comprehensive Income during year | (8,049 | ) |
Balance at 30 September 2023 | 326,805 |
Company |
Deferred |
tax |
£ |
Balance at 1 October 2022 |
Provided during year |
Balance at 30 September 2023 |
25. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.9.23 | 30.9.22 |
value: | £ | £ |
Ordinary C | £1 | 46,000 | 46,000 |
Ordinary D | £0.01 | 2,590 | 2,590 |
48,590 | 48,590 |
The Ordinary D shares have no voting rights and no right to a dividend. |
In the event of a winding up of the company, any surplus assets after payment of liabilities shall be applied in paying the C shareholders £1 per share and then to the D shareholders £0.01 per share. Any surplus remaining shall then be shared between the C shareholders in proportion to the amounts paid on the shares held by them respectively. |
26. | RESERVES |
Group |
Capital |
Retained | Share | Revaluation | redemption |
earnings | premium | reserve | reserve | Totals |
£ | £ | £ | £ | £ |
At 1 October 2022 | 3,286,854 | 259,909 | 95,627 | 4,000 | 3,646,390 |
Profit for the year | 550,276 | 550,276 |
Transfer | 4,782 | - | (4,782 | ) | - | - |
At 30 September 2023 | 3,841,912 | 259,909 | 90,845 | 4,000 | 4,196,666 |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
26. | RESERVES - continued |
Company |
Capital |
Retained | Share | Revaluation | redemption |
earnings | premium | reserve | reserve | Totals |
£ | £ | £ | £ | £ |
At 1 October 2022 | 431,745 | 259,909 | 30,913 | 726,567 |
Profit for the year | 121,914 | 121,914 |
Transfer | 1,544 | - | (1,544 | ) | - | - |
At 30 September 2023 | 555,203 | 259,909 | 29,369 | 4,000 | 848,481 |
Share premium account - The share premium account includes the premium on issue of equity shares, net of any issue costs. |
Revaluation reserve - This reserve relates to the cumulative revaluation of property and related taxation. |
Capital redemption reserve - The capital redemption reserve contains the nominal value of own shares that have been acquired by the company and cancelled. |
Profit and loss account - The profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments. |
27. | PENSION COMMITMENTS |
The group operates defined contribution pension schemes for its employees. The assets of the schemes are kept independently of the group in separately administered funds. |
Contributions payable by the group to the schemes for the year were £498,789 (2022 - £468,823). |
Contributions unpaid by the group at the end of the year amounted to £104,510 (2022 - £71,644). Company contributions unpaid at the balance sheet date amounted to £Nil (2022 - £Nil). |
28. | ULTIMATE PARENT COMPANY |
Renelec Group Limited is regarded by the directors as being the company's ultimate parent company. |
The parent undertaking of the largest group for which consolidated accounts are prepared is Renelec Group Limited, a company registered in England and Wales. In the opinion of the directors this is the company's ultimate parent undertaking. |
The directors of Renelec Group Limited are deemed to be the ultimate controlling party by virtue of their equal ownership of the issued share capital. |
29. | CONTINGENT LIABILITIES |
There is an unlimited cross guarantee between the company and Renelec Building Services Limited, Renelec Chalgrove Limited, Renelec Groundworks Limited, Renelec Hennion Limited, Renelec Construction Limited, Renelec Plant Hire Limited (formerly Brownston Developments Limited) and Brownston Homes Limited in favour of Svenska Handelsbanken AB (publ). This guarantee is secured by a fixed and floating charge over all assets of the company. |
The company's contingent liability as at 30 September 2023 was £247,306 (2022 - £1,524,530). |
Renelec Limited (Registered number: 01053189) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
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. |