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Registration number: 10247997

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Annual Report and Consolidated Financial Statements

for the Year Ended 31 March 2022

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Contents

Company Information

1

Strategic Report

2 to 3

Director's Report

4

Statement of Director's Responsibilities

5

Independent Auditor's Report

6 to 9

Consolidated Profit and Loss Account and Statement of Retained Earnings

10

Consolidated Balance Sheet

11

Balance Sheet

12

Consolidated Statement of Cash Flows

13 to 14

Statement of Cash Flows

15

Notes to the Financial Statements

16 to 37

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Company Information

Director

M Knott

Registered office

Building 8 Gateway 1000
Whittle Way
Stevenage, Herts
Herts
SG1 2FP

Bankers

National Westminster Bank PLC
12 High Street
Hitchin
Herts
SG5 1BH

Auditors

Bracey's Accountants (Audit) Limited
Chartered Accountants
Unit 1 The Cam Centre
Wilbury Way
Hitchin
Herts
SG4 0TW

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Strategic Report for the Year Ended 31 March 2022

The director presents his strategic report for the year ended 31 March 2022.

Principal activity

The principal activity of the group is that of an Investment Holding Company. The group operates within construction.

Fair review of the business

After the global pandemic and the financial hit we took from a client who refused to pay almost £3M owed to us, we were forced to look at the structure of the group and refocus the business’ to ensure we continued to deliver the best in class service and as such, we registered Synergy Construction Limited and Synergy Interior Design Limited, to take the bulk of work normally carried out within the Synergy Group. This allowed us to concentrate our dedicated resources to specific industries. We brought in equity partners for Synergy Interior Design Limited, allowing them to manage the day to day running of the business which they have done a fantastic job, growing the business and increasing the client list.

Synergy Development companies continue to grow with developments at different stages, with schemes in Hove, Leyland, Cambridge, and Ireland. Planning was achieved at Leyland, with more than 220,000 sqft of flexible light industrial accommodation approved.

Woodmaster Joinery has continued to grow and deliver the finest bespoke joinery.

With the financial impact of not being paid £3M by our client, even though we successfully won our claim in full through the adjudication process, in accordance with our contract, a lot of our management time and significant personal investment by our founder and CEO, Mr Martin Knott, it was clear we could not maintain the main contracting business (Synergy Property Deisgn Consultants Limited) or the sub-contracting M&E business (Synergy M&E Limited), as the impact on both was just far too much to continue, and so the devastating decision to put both companies into liquidation was taken, even though, through no fault of our own, and neither company ever having any debt up to this point we were left with no alternative.

Even with such a significant loss, we continued to trade, make a profit and deliver developments, whilst also looking for new additions to the group.

Strategy
The success of the group is reliant on good contract management. The selection, pricing and managing of contracts is key, we maintain low fixed overheads and therefore the contract success determines our profitability in any given period. We continue to diversify the jobs and specialist build works that we take on to mitigate our exposure to risk in this area, our delivery on build quality and contract overall will continue to be our key driver.

The external environment will be key in this strategy and with the uncertainties facing us like every business our strategy will continually be revisited and assessed.

We continue to consider new company additions to the group, which we feel will add value and diversification to the group of companies and our clients.

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Strategic Report for the Year Ended 31 March 2022

The group's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2022

2021

Turnover

£

8,685,361

19,947,004

Gross Profit %

%

9

9

(Loss)/profit after tax

£

(279,976)

622,672

Net current assets

£

1,714,826

1,294,288

Shareholder funds

£

950,516

1,380,392

Principal risks and uncertainties

The company continually and actively reviews the risks and uncertainties facing the group, this is embedded within the group’s policies, procedures, and internal controls. With the impact of the nonpayment by our client, we have restructured the companies within the group to help minimize such a situation happening again, whilst ensuring we can continue to deliver such quality projects for our existing and future clients..

The rising rate of inflation will inevitably put pressure on costs, and we will need to actively manage and mitigate this to ensure our margins remain tightly managed.

Cash flow is key, as in any business, but the nature of construction means that it is a high risk and we actively manage and monitor this carefully, a strong cash reserve is necessary in the environment and industry.

I am satisfied that the group’s exposure to risk from interest rates and liquidity are adequately managed and mitigated.

Approved and authorised by the director on 5 February 2024
 

.........................................
M Knott
Director

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Director's Report for the Year Ended 31 March 2022

The director presents his report and the for the year ended 31 March 2022.

Change of company name

The company changed its name from Synergy Property Holdings Limited to Synergy Group Holdings Limited effective from 7 December 2022.

Directors of the group

The directors who held office during the year were as follows:

M Knott

N Knott (ceased 1 March 2022)

Future developments

Please refer to note 30. We will continue to actively engage with our clients and suppliers closely to ensure the successful delivery of contracts undertaken. We will continue to work to our high build standard of which our customers are accustomed to, whilst actively managing and mitigating the rising cost of inflation, Covid disruptions and issues in the supply chain of material and labour with Brexit.

Managing costs carefully in the immediate future with rising inflation will be key. As always tight contract management and control will be at the forefront of our management with rigorous cash flow management.

In the immediate future we will service our existing long-term contracts and look to take on new specialised projects. The group are continually looking for new investment opportunities and ventures with a view of its core business activities as its driver.

Disclosure of information to the auditor

The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.

Approved and authorised by the director on 5 February 2024
 

.........................................
M Knott
Director

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Statement of Director's Responsibilities

The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Independent Auditor's Report to the Members of Synergy Group Holdings Limited

Opinion

We have audited the financial statements of Synergy Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2022, which comprise the Consolidated Profit and Loss Account and Statement of Retained Earnings, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2022 and of the group's loss for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Emphasis of matter - Subsequent Events
 

We draw attention to Note 30 within the financial statements which details two subsidiaries within the group going in to liquidation post year end and the impact that has on the figures included within these financial statements.

Our opinion is not modified in respect of this matter.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Independent Auditor's Report to the Members of Synergy Group Holdings Limited

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the Statement of Director's Responsibilities [set out on page 5], the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Independent Auditor's Report to the Members of Synergy Group Holdings Limited

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

Irregularities, including fraud, are instances of non-compliance; acts of omission or commission by the entity, either intentional or unintentional, which are contrary to the prevailing laws and regulations.

We obtained an understanding of the legal and regulatory frameworks within which the company (and group) operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Financial Reporting Standard applicable in the UK and Ireland (FRS 102). In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the company’s (and group’s) ability to operate for example General Data Protection Regulation (GDPR), taxation legislation, and employment legislation.

Based on our understanding of the entity, the industry it operates in, and external environment we identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

Our audit procedures to respond to these risks included, but were not limited to, the following:
• Review of the financial statements and disclosures to underlying supporting documentation.
• Obtained an understanding of laws and regulations that affect the company both directly and indirectly in the financial statements and its operations.
• Review and enquiry into journal entries processed during the period under review.
• Evaluation and consideration of areas where the potential for management bias exists.
• Enquiries of management about their own identification and assessment of the risks of irregularities, considering the adequacy of the internal controls in place to manage this via walk through tests and review.
• Assessing significant judgements and review of accounting estimates, with particular emphasis on accrued and deferred revenue balances.
• Enquiries of management, including in relation to future profits and cash flow forecasts and perusal of minutes of board and management meetings.
• Performance of analytical review and reviewing the findings of testing, including specific review of legal and professional accounts.
• Overall considering the consistency of discussions had with the findings and evidence obtained throughout the audit.

Owing to the inherent limitations of an audit there is an unavoidable risk that we may not have detected some material misstatements within the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. Inherent limitations in the audit procedures described above, as irregularities in relation to fraud, are by nature difficult to detect as it would likely have occurred through deliberate concealment and could involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Independent Auditor's Report to the Members of Synergy Group Holdings Limited

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Emma Fraser FCA (Senior Statutory Auditor)
For and on behalf of Bracey's Accountants (Audit) Limited, Statutory Auditor

Unit 1 The Cam Centre
Wilbury Way
Hitchin
Herts
SG4 0TW

7 February 2024

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Consolidated Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 March 2022

Note

2022
£

2021
£

Turnover

3

8,685,361

19,947,004

Cost of sales

 

(7,935,104)

(18,224,577)

Gross profit

 

750,257

1,722,427

Administrative expenses

 

(1,026,717)

(759,890)

Other operating income

4

91,346

76,830

Operating (loss)/profit

6

(185,114)

1,039,367

Other interest receivable and similar income

8

1,303

1,977

Amounts written off investments

 

(77,875)

(402,675)

Interest payable and similar charges

9

(21,416)

(24,317)

 

(97,988)

(425,015)

(Loss)/profit before tax

 

(283,102)

614,352

Taxation

13

3,126

8,320

(Loss)/profit for the financial year

 

(279,976)

622,672

Profit/(loss) attributable to:

 

Owners of the company

 

(279,976)

622,672

Retained earnings brought forward

 

1,380,492

1,037,820

Dividends paid

 

(150,000)

(280,000)

Retained earnings carried forward

 

950,516

1,380,492

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

(Registration number: 10247997)
Consolidated Balance Sheet as at 31 March 2022

Note

2022
£

(As restated)

2021
£

Fixed assets

 

Intangible assets

15

19,820

29,399

Tangible assets

16

52,084

58,004

Investments

17

50

50,000

Other financial assets

18

-

27,675

 

71,954

165,078

Current assets

 

Stocks

19

797,737

5,159

Debtors

20

1,682,012

3,728,651

Cash at bank and in hand

 

1,341,619

2,965,981

 

3,821,368

6,699,791

Creditors: Amounts falling due within one year

22

(2,106,542)

(5,405,503)

Net current assets

 

1,714,826

1,294,288

Total assets less current liabilities

 

1,786,780

1,459,366

Creditors: Amounts falling due after more than one year

22

(825,973)

(67,218)

Provisions for liabilities

23

(10,191)

(11,556)

Net assets

 

950,616

1,380,592

Capital and reserves

 

Called up share capital

25

100

100

Retained earnings

950,516

1,380,492

Equity attributable to owners of the company

 

950,616

1,380,592

Shareholders' funds

 

950,616

1,380,592

Approved and authorised by the director on 5 February 2024
 

.........................................
M Knott
Director

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

(Registration number: 10247997)
Balance Sheet as at 31 March 2022

Note

2022
£

(As restated)

2021
£

Fixed assets

 

Investments

17

350

50,300

Other financial assets

18

-

27,675

 

350

77,975

Current assets

 

Debtors

20

1,412,866

254,800

Cash at bank and in hand

 

1,249,824

201,117

 

2,662,690

455,917

Creditors: Amounts falling due within one year

22

(1,182,571)

(523,379)

Net current assets/(liabilities)

 

1,480,119

(67,462)

Net assets

 

1,480,469

10,513

Capital and reserves

 

Called up share capital

25

100

100

Retained earnings

1,480,369

10,413

Shareholders' funds

 

1,480,469

10,513

As permitted by Section 408 Companies Act 2006, the company has not presented its own profit and loss account. The company made a profit after tax for the financial year of £1,619,956 (2021 - profit of £287,988).

Approved and authorised by the director on 5 February 2024
 

.........................................
M Knott
Director

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Consolidated Statement of Cash Flows for the Year Ended 31 March 2022

Note

2022
£

2021
£

Cash flows from operating activities

(Loss)/profit for the year

 

(279,976)

622,672

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

22,588

27,759

Impairment of fixed asset investments

 

77,675

252,675

Profit from disposals of investments

5

(6,158)

-

Finance income

(1,303)

(1,977)

Finance costs

21,416

174,317

Income tax expense

13

(3,126)

(8,320)

 

(168,884)

1,067,126

Working capital adjustments

 

Increase in stocks

19

(792,578)

(5,159)

Decrease in trade debtors

20

2,164,414

859,392

Decrease in trade creditors

22

(3,214,420)

(1,111,050)

Cash generated from operations

 

(2,011,468)

810,309

Income taxes paid

13

(324,815)

(175,516)

Net cash flow from operating activities

 

(2,336,283)

634,793

Cash flows from investing activities

 

Interest received

1,303

1,977

Acquisitions of tangible assets

(7,089)

(46,996)

Acquisition of intangible assets

15

-

(33,033)

Acquisitions of investments in joint ventures and associates

17

(50)

-

Proceeds from tangible fixed assets disposed

 

6,158

-

Net cash flows from investing activities

 

322

(78,052)

Cash flows from financing activities

 

Interest paid

(21,416)

(24,317)

Proceeds from bank borrowing draw downs

 

-

50,000

Proceeds from other borrowing draw downs

 

892,892

39,484

Payments to finance lease creditors

 

(9,877)

(5,726)

Dividends paid

(150,000)

(280,000)

Net cash flows from financing activities

 

711,599

(220,559)

Net (decrease)/increase in cash and cash equivalents

 

(1,624,362)

336,182

Cash and cash equivalents at 1 April

 

2,965,981

2,629,799

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Consolidated Statement of Cash Flows for the Year Ended 31 March 2022

Note

2022
£

2021
£

Cash and cash equivalents at 31 March

 

1,341,619

2,965,981

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Statement of Cash Flows for the Year Ended 31 March 2022

Note

2022
£

2021
£

Cash flows from operating activities

Profit for the year

 

1,619,956

287,988

Adjustments to cash flows from non-cash items

 

Financial instrument net gains through profit and loss

 

77,875

252,675

Finance income

(1,810,000)

(745,000)

Finance costs

-

150,000

 

(112,169)

(54,337)

Working capital adjustments

 

Increase in trade debtors

20

(389,537)

(194,077)

Decrease in trade creditors

22

(109,337)

(26,622)

Net cash flow from operating activities

 

(611,043)

(275,036)

Cash flows from investing activities

 

Acquisition of subsidiaries

17

(200)

(200)

Acquisition of intangible assets

15

-

(125,000)

Dividend income

1,810,000

745,000

Acquisitions of investments in joint ventures and associates

17

(50)

-

Net cash flows from investing activities

 

1,809,750

619,800

Cash flows from financing activities

 

Dividends paid

(150,000)

(280,000)

Net increase in cash and cash equivalents

 

1,048,707

64,764

Cash and cash equivalents at 1 April

 

201,117

136,353

Cash and cash equivalents at 31 March

 

1,249,824

201,117

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The company was formerly known as Synergy Property Holdings Limited.

The address of its registered office is:
Building 8 Gateway 1000
Whittle Way
Stevenage, Herts
Herts
SG1 2FP

These financial statements were authorised for issue by the director on 5 February 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention.
The Financial statements are prepared in sterling, which is the functional currency of the entity rounded to the nearest £1.

Basis of consolidation

These consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2022.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

Subsidiaries are recorded at cost. Where a subsidiary is dormant, the cost of incorporation and hence cost of the subsidiary is only recorded where the company is trading. If the subsidiary is dormant the cost is reduced to nil to reflect the investment at the lower of cost and net realisable value.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

As detailed in the strategic report, directors report and post balance sheet event note (note 30) the group have been through a difficult trading period and reported a loss overall for the group. The group have seen restructuring and strategies revised resulting in newly trading companies in operation post year end. The Director is satisfied that the group will return to profitability based on post year end performance, work completed and work booked in 2023 and 2024 across the group. As such the group accounts have been prepared on a going concern basis.

Prior period errors

Refer to note 14 for the restatement of comparative amount.

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The group accounts for long term contracts under FRS102, specifically using the percentage of completion method with reference to surveys of work performed. This is used to arrive at the percentage complete of the job, this percentage is applied to the contract costs and these are used to ascertain the contract values - see revenue accounting policy for more details. The nature of this involves significant judgement which can change as time progresses. Management review this monthly and taking in to account factors in the job to ensure that the long term contracts are accounted for in accordance with FRS102 in all aspects.

Revenue recognition

The company receives income in the form of dividends from its subsidaries, fixed asset investments and associates. Dividends are recorded when voted and agreed by the board.

Bank interest received is accounted for on an accruals basis.

Group
Turnover comprises the fair value of the consideration receivable for the provision of services, goods and rental income in the ordinary course of the group's activities. Turnover is shown as net of sales/value added tax, returns, rebates and discounts.

The group recognises revenue when:
The amount of revenue can be reliabley measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Specifically the group deals with long term construction contracts and in arriving at the value of these contracts the company uses a percentage of completion method, with reference to surveys of work performed to value these at each month end. These valued form amounts recoverable on contracts and are included within debtors.The percentage of work performed against the total contract value is used to recognise the correct costs for the completion stage of the job, the difference here form the amount payable on contracts that sit within creditors.

Retentions are recognised when due and included within debtors. Where amounts are not considered to be recoverable they are provided for as appropriate. Retentions due to suppliers are accounted for within creditors.

Management income is recieved from connected companies in respect of employee services and costs incurred on behalf of the group. The amount is recognised on an accruals basis.

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

Government grants

Grants relating to revenue are recognised in income on a systematic basis over the period in which the business recognises related costs which the grant is intended to compensate.

A grant the becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to an entity with no future related costs shall be recognised in income in the period in which it becomes receivable.

Tax

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

The group carries out Research and Development activities and claims R&D relief. This is accounted for when a claim is submitted on an accrual basis.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Motor Vehicle

25-33% reducing balance

Plant and machinery

15-33% straight line

Furniture, fixtures and fittings

15% reducing balance

Computer equipment

25% reducing balance

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

Goodwill

Goodwill consists of externally purchased goodwill from an unconnected party. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulatdd impairment losses. Goodwill is held in the currency of the aquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life of 5 years, which is considered to be a reliable estimate of the useful life.

Amortisation

Asset class

Amortisation method and rate

Goodwill

5 years straight line

Computer software

33% straight line

Investments

Investments in subsidiaries are accounted for at cost in accordance with FRS102. Impairment of such asset is carried out regularly and any amounts are written off to the profit and loss when relevant.

Investments, including investments in associates, that do not have an observable market value, are accounted for at cost in accordance with FRS102 Impairment of such assets is carried out regularly and any amounts are written off to the profit and loss when relevant.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised at the transaction price. Amounts are reviewed regularly and any amounts not considered recoverable are written off to the profit and loss in the relevant period.

Stocks and work in progress

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method. Stock comprises workshop consumables only.

Work in progress comprises properties purchased for renovation and eventual sale. The cost comprises all directly related items incurred at invoice cost, this includes the purchase price of property including all related costs with acquisition and subsequent costs in renovating.

The cost of each project is reviewed and tracked periodically, where the cost recorded is above the current value of the property/project a provision is made to ensure that work in progress is held at the lower of cost and net realisable value.

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised at the transaction price.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
Other financial assets consist entirely of investemtns in to UK based companies. The investment represents a holding of less than 20% in all cases and the group does not have control over these. These are held at cost in accordance with FRS102. Income from investements os recognised within profit and loss in the relevant period. An impairment of such assets is carried out regularly and any amounts are written off to the profit and loss when relevant.
 

3

Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

2022
£

2021
£

Sale of goods

374,448

294,753

Rendering of services - contract revenue

8,310,913

19,652,251

8,685,361

19,947,004

All turnover in the current and prior period was generated in the UK.

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

2022
£

2021
£

Government grants

1,500

16,931

Sub lease rental income

16,500

16,500

Miscellaneous other operating income

-

909

Management charges receivable

73,346

42,490

91,346

76,830

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

5

Other gains and losses

The analysis of the group's other gains and losses for the year is as follows:

2022
£

2021
£

Gain on disposal of Tangible assets

6,158

-

6

Operating (loss)/profit

Arrived at after charging/(crediting)

2022
£

2021
£

Depreciation expense

13,008

12,245

Amortisation expense

9,580

15,514

Impairment loss

77,875

252,675

Operating lease expense - plant and machinery

412

413

Profit on disposal of property, plant and equipment

(6,158)

-

The impairment loss comprises an impairment of Associates held totalling £50,000 (2021: £225,000) and impairment losses in unlisted investments held totalling £27,875 (2021: £27,875).

7

Government grants

The group received income totalling £nil (2021: £5,681) during the year in relation to the Coronavirus Job Retention Scheme (JRS).
The bounce back loan interest that was met by the government totalled £nil (2021: £1,250).
The group received a grant totalling £nil (2021: £10,000) from its local council during covid.
During the year £1,500 (2021: £nil) of income was received for apprenticeship schemes.

The amount of grants recognised in the financial statement in total was £1,500 (2021: £16,931).

8

Other interest receivable and similar income

2022
£

2021
£

Interest income on bank deposits

1,303

1,578

Other finance income

-

399

1,303

1,977

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

9

Interest payable and similar expenses

2022
£

2021
£

Interest on bank overdrafts and borrowings

-

1,250

Interest on obligations under finance leases and hire purchase contracts

4,926

97

Interest expense on other finance liabilities

16,490

22,970

21,416

24,317

10

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2022
£

2021
£

Wages and salaries

273,243

529,074

Social security costs

17,092

120,028

Pension costs, defined contribution scheme

12,611

11,840

Redundancy costs

7,500

-

Other employee expense

873

1,465

311,319

662,407

The average number of persons employed by the group (including the director) during the year, analysed by category was as follows:

2022
No.

2021
No.

Production

2

2

Administration and support

3

3

Sales

2

2

Other departments

2

2

9

9

11

Director's remuneration

The director's remuneration for the year was as follows:

2022
£

2021
£

Remuneration

8,840

88,664

Contributions paid to money purchase schemes

7,475

7,084

16,315

95,748

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

12

Auditors' remuneration

2022
£

2021
£

Audit of these financial statements

24,000

21,250

Other fees to auditors

Taxation compliance services

1,000

1,000


 

13

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2022
£

2021
£

Current taxation

UK corporation tax

5,251

249,648

UK corporation tax adjustment to prior periods

(7,012)

(262,893)

(1,761)

(13,245)

Deferred taxation

Arising from origination and reversal of timing differences

(1,365)

4,925

Tax receipt in the income statement

(3,126)

(8,320)

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2021 - the same as the standard rate of corporation tax in the UK) of 19% (2021 - 19%).

The differences are reconciled below:

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

2022
£

2021
£

(Loss)/profit before tax

(283,102)

614,352

Corporation tax at standard rate

(53,789)

116,727

Effect of expense not deductible in determining taxable profit (tax loss)

49,065

137,802

Tax increase/(decrease) from effect of capital allowances and depreciation

2,963

(4,911)

Tax increase from other short-term timing differences

-

30

Tax decrease from effect of adjustment in research and development tax credit

-

(262,893)

Other tax effects for reconciliation between accounting profit and tax expense (income)

(1,365)

4,925

Total tax credit

(3,126)

(8,320)

14

Restatement of comparative amounts

Synergy Group Holdings Limited (single entity and consolidation) - the prior period has been restated by £125,000 to reclassify the amount previously held as other financial assets to debtors. This amount is a loan to an unconnected entity and as such should be classified as a debtor of the company and not a financial fixed asset investment as was previously disclosed.

There is no effect on the profit and loss, it is a reclassification within the balance sheet only between fixed and current assets.

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

15

Intangible assets

Group

Goodwill
 £

Other intangible assets
 £

Total
£

Cost or valuation

At 1 April 2021

33,033

26,720

59,753

At 31 March 2022

33,033

26,720

59,753

Amortisation

At 1 April 2021

6,607

23,747

30,354

Amortisation charge

6,606

2,973

9,579

At 31 March 2022

13,213

26,720

39,933

Carrying amount

At 31 March 2022

19,820

-

19,820

At 31 March 2021

26,426

2,973

29,399

The company did not hold any intangible assets to separately disclose.

Other intangible assets consist of software costs externally purchased.

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

16

Tangible assets

Group

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 April 2021

15,736

48,686

54,449

118,871

Additions

342

-

6,747

7,089

At 31 March 2022

16,078

48,686

61,196

125,960

Depreciation

At 1 April 2021

10,458

12,100

38,309

60,867

Charge for the year

1,065

7,498

4,446

13,009

At 31 March 2022

11,523

19,598

42,755

73,876

Carrying amount

At 31 March 2022

4,555

29,088

18,441

52,084

At 31 March 2021

5,278

36,586

16,140

58,004

The company did not hold any tangible assets to separately disclose.

The above includes assets held on hire purchase which are secured on the assets concerned in motor vehicles. The net book value was £27,913 (2021: £35,020) and depreciation charged of £7,107 (2021: £5,980).

17

Investments

Company

2022
£

2021
£

Investments in subsidiaries

300

300

Investments in associates

50

50,000

350

50,300

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

Subsidiaries

£

Cost or valuation

At 1 April 2021

300

Additions

200

At 31 March 2022

500

Provision

Impairment provision

200

Carrying amount

At 31 March 2022

300

At 31 March 2021

300

Associates

£

Cost

At 1 April 2021

50,000

Additions

50

At 31 March 2022

50,050

Provision

Impairment provision

50,000

Carrying amount

At 31 March 2022

50

At 31 March 2021

50,000

The impairment provision above relates to the cost of investments held in companies listed below that have since been put in liquidation or dissolved. The impairment provision is recognised in profit and loss.

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2022

2021

Subsidiary undertakings

Synergy M&E Limited (in liquidation)

Prospect House, Rouen Road, Norwich, NR1 1RE

England

Ordinary

100%

100%

Synergy Property Design Consultants Limited (in liquidation)

Prospect House, Rouen Road, Norwich, NR1 1RE

England

Ordinary

100%

100%

Synergy Developments Two Limited

Building 8 Gateway 1000, Whittle Way, Stevenage, Hertfordshire, England, SG1 2FP

England

Ordinary

100%

100%

Synergy Developments Three Limited

Building 8 Gateway 1000, Whittle Way, Stevenage, Hertfordshire, England, SG1 2FP

England

Ordinary

100%

100%

Synergy Joinery Limited

Building 8 Gateway 1000, Whittle Way, Stevenage, Hertfordshire, England, SG1 2FP

England

Ordinary

100%

100%

Associates

Synergy Electrical Solutions Limited (dissolved 02/01/2024)

Building 8 Gateway 1000, Whittle Way, Stevenage, Hertfordshire, England, SG1 2FP

Ordinary

25%

25%

 

England

     

Synergy Developments One Limited

Building 8 Gateway 1000, Whittle Way, Stevenage, Hertfordshire, England, SG1 2FP

Ordinary

50%

0%

 

England

     

Subsidiary undertakings

Synergy M&E Limited (in liquidation)

The principal activity of Synergy M&E Limited (in liquidation) is electrical and plumbing contractors within the construction industry..

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

Synergy Property Design Consultants Limited (in liquidation)

The principal activity of Synergy Property Design Consultants Limited (in liquidation) is that of long term commercial construction design contracts..

Synergy Developments Two Limited

The principal activity of Synergy Developments Two Limited is development of building projects..

Synergy Developments Three Limited

The principal activity of Synergy Developments Three Limited is development of building projects..

Synergy Joinery Limited

The principal activity of Synergy Joinery Limited is that of carpentry and joinery works..

Associates

Synergy Electrical Solutions Limited (dissolved 02/01/2024)

The principal activity of Synergy Electrical Solutions Limited (dissolved 02/01/2024) is electrical contractors. Its financial period end is 30 September.

Synergy Developments One Limited

The principal activity of Synergy Developments One Limited is development projects..

Subsidiaries and associates are only recorded when they are trading. Amounts are held at cost.

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

18

Other financial assets

Group

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

At 1 April 2021

27,675

27,675

At 31 March 2022

27,675

27,675

Impairment

Impairment provision

27,675

27,675

At 31 March 2022

27,675

27,675

Carrying amount

At 31 March 2022

-

-

The impairment provision is recognised in profit and loss and related to the asset being held at the lower of cost and net realisable value.

The company did not hold any other financial assets to separately disclose.

19

Stocks

 

Group

Company

2022
£

2021
£

2022
£

2021
£

Work in progress

795,759

-

-

-

Other inventories

1,978

5,159

-

-

797,737

5,159

-

-

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

20

Debtors

   

Group

Company

Current

Note

2022
£

(As restated)

2021
£

2022
£

(As restated)

2021
£

Trade debtors

 

14,955

227,189

-

-

Amounts owed by related parties

28

53,851

27,530

898,329

129,800

Other debtors

 

918,707

2,095,093

514,537

125,000

Prepayments

 

82,310

30,602

-

-

Gross amount due from customers for contract work

 

494,414

1,348,237

-

-

Income tax asset

13

117,775

-

-

-

   

1,682,012

3,728,651

1,412,866

254,800

Other debtors include directors loan account balance of £146,675 (2021: £509,063) as detailed in the related party note.

21

Cash and cash equivalents

 

Group

Company

2022
£

2021
£

2022
£

2021
£

Cash at bank

1,341,619

2,965,981

1,249,824

201,117

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

22

Creditors

   

Group

Company

Note

2022
£

2021
£

2022
£

2021
£

Due within one year

 

Loans and borrowings

26

140,800

16,540

-

-

Trade creditors

 

486,592

1,815,092

3,630

-

Amounts due to related parties

28

-

-

1,159,441

517,379

Social security and other taxes

 

624,458

403,976

-

-

Outstanding defined contribution pension costs

 

1,160

936

-

-

Other payables

 

771,650

2,889,850

-

-

Accruals

 

76,631

65,057

19,500

6,000

Income tax liability

13

5,251

214,052

-

-

 

2,106,542

5,405,503

1,182,571

523,379

Due after one year

 

Loans and borrowings

26

825,973

67,218

-

-

Other creditors include an amount of £200,871 (2021: £258,452) of which the Director is jointly and severally liable for this debt.

Included within other creditors is amounts payable on contracts totalling £4,001 (2021: £1,752,046).

23

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 April 2021

11,556

11,556

Additional provisions

(1,365)

(1,365)

At 31 March 2022

10,191

10,191

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

24

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £12,611 (2021 - £11,840).

Contributions totalling £1,160 (2021 - £936) were payable to the scheme at the end of the year and are included in creditors.

25

Share capital

Allotted, called up and fully paid shares

 

2022

2021

 

No.

£

No.

£

Ordinary Shares of £1 each

100

100

100

100

         

26

Loans and borrowings

 

Group

Company

2022
£

2021
£

2022
£

2021
£

Non-current loans and borrowings

Bank borrowings

34,062

43,337

-

-

Hire purchase contracts

14,003

23,881

-

-

Other borrowings

777,908

-

-

-

825,973

67,218

-

-

 

Group

Company

2022
£

2021
£

2022
£

2021
£

Current loans and borrowings

Bank borrowings

9,572

6,663

-

-

Hire purchase contracts

9,878

9,877

-

-

Other borrowings

121,350

-

-

-

140,800

16,540

-

-

 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

Of the above non current amount £85,926 (2021: £nil) is due in more than 5 years.

A charge is held over all assets of the group in favour of National Westminster Bank PLC dated 10 December 2019, this charge has been provided as a cross guarantee between the group and Red Investments, a connected partnership which owns the business premises.
 

The group has a loan under the Bounce Back Loan Scheme (BBLS) which is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business energy and Industrial Strategy.

The hire purchase amounts are secured on the relevant assets to which the loan relates.

Other borrowings totalling £488,581 - of which £81,868 is due < 1 year and due within 5 years of £406,713 - has a cross guarantee in place across the group in favour of Conister Finance and Leasing Limited. The loan originated in Synergy Property Design Consultants Limited, when the company went in to liquidation post year end, the debt became the parent company liability.

27

Dividends

   

2022

 

2021

   

£

 

£

Interim dividend of £1,500.00 (2021 - £2,800.00) per ordinary share

 

150,000

 

280,000

         
 

Synergy Group Holdings Limited
(formerly Synergy Property Holdings Limited)

Notes to the Financial Statements for the Year Ended 31 March 2022

28

Related party transactions

Group

Key management personnel

Key management is considered to be the Director only in the current and comparative period.

Summary of transactions with other related parties

During the year rent of £28,050 (2021: £24,167) was paid to Red Investments for the business premises, a partnership which M Knott and N Knott were partners of. At the balance sheet date the partnership owed £nil (2021: £12,153) to the group.

At the balance sheet date Synergy Electrical Solutions Limited, a company connected by Common Director (and associate investment of the group) was owed a net amount of £50 (2021: £59,780 owed to) by the company.

At the balance sheet date Synergy Developments One Limited, a company connected by Common Director (and associate investment of the group) owed the group £53,801 (2021: £14,898).

All balances arose under normal trading terms.

At the balance sheet date the group was owed £146,675 (2021: £509,063) by M Knott, Director. Interest is charged at 2.5%. There are no terms for repayment. Please refer to note 22 with regards to Director's personal guarantee provided on loans and borrowings.

 

29

Parent and ultimate parent undertaking

The group is controlled by M Knott as sole shareholder.

30

Non adjusting events after the financial period

Since the year end two wholly subsidiaries were put into voluntary liquidation; Synergy M&E Limited (Reg No: 08225528) liquidator appointed 14/12/2022 and Synergy Property Design Consultants Limited (Reg No: 04177249) liquidator appointed on 04/04/2023.

The impact of these companies on the group in the period accounted for £8,310,913 of turnover and loss after tax of £160,920.

Since the difficulties occurred with specific contracts, which primarily led to the voluntary liquidations, the group have continued to grow and expand via newly trading entities. Whilst the income from these companies has been lost going forward the Director is confident of the groups ability to continue as a going concern based on post year end group activities/work undertaken to date.