Company registration number 12120998 (England and Wales)
ECONEN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
PAGES FOR FILING WITH REGISTRAR
ECONEN LIMITED
CONTENTS
Page
Group statement of financial position
1 - 2
Company statement of financial position
3
Notes to the financial statements
4 - 16
ECONEN LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 JULY 2023
31 July 2023
- 1 -
2023
2022
unaudited
Notes
£
£
£
£
Fixed assets
Intangible assets
5
(2,076,026)
(2,120,069)
Tangible assets
7
10,873,098
12,340,740
8,797,072
10,220,671
Current assets
Stocks
73,839
51,917
Debtors
9
6,531,013
3,357,073
Cash at bank and in hand
871,838
164,245
7,476,690
3,573,235
Creditors: amounts falling due within one year
10
(5,580,759)
(5,876,509)
Net current assets/(liabilities)
1,895,931
(2,303,274)
Total assets less current liabilities
10,693,003
7,917,397
Creditors: amounts falling due after more than one year
12
(6,450,000)
(7,951,981)
Provisions for liabilities
(2,233,842)
(1,169,468)
Net assets/(liabilities)
2,009,161
(1,204,052)
Capital and reserves
Called up share capital
100
100
Revaluation reserve
512,669
(32,064)
Profit and loss reserves
1,039,236
(836,955)
Equity attributable to owners of the parent company
1,552,005
(868,919)
Non-controlling interests
457,156
(335,133)
2,009,161
(1,204,052)

The director of the group have elected not to include a copy of the income statement within the financial statements.

These financial statements have been prepared in accordance with the provisions applicable to groups and companies subject to the small companies regime.

ECONEN LIMITED
GROUP STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 JULY 2023
31 July 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 14 February 2024 and are signed on its behalf by:
14 February 2024
Mr J Walsh
Director
Company registration number 12120998 (England and Wales)
ECONEN LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2023
31 July 2023
- 3 -
2023
2022
unaudited
Notes
£
£
£
£
Fixed assets
Intangible assets
5
(2,126,096)
(2,172,315)
Investments
6
75
75
(2,126,021)
(2,172,240)
Current assets
Debtors
9
2,321,974
3,300,974
Creditors: amounts falling due within one year
10
(10,977)
(989,977)
Net current assets
2,310,997
2,310,997
Net assets
184,976
138,757
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
184,876
138,657
Total equity
184,976
138,757

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £46,219 (2022 - £46,219 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 14 February 2024 and are signed on its behalf by:
14 February 2024
Mr J Walsh
Director
Company registration number 12120998 (England and Wales)
ECONEN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 4 -
1
Accounting policies
Company information

ECONEN Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Connexions 159 Princes Street, Ipswich, Suffolk, United Kingdom.

 

The group consists of ECONEN Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of plant and equipment and vessels. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company ECONEN Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 July 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

ECONEN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 5 -
1.4
Going concern

The business continued to operate in a challenging environment with the expected upturn in trading not transpiring until towards the end of the trading year.

 

The group has changed its strategic focus by seeking to undertake low risk construction projects, alongside the hire of the plant, to grow the business and maximise flexibility to meet demand. As a result of this change the group entered the new financial period having secured several projects and with a strong order book for barge hire.

 

Having undertaken a detailed forecast and cashflow review of coming 12 months the directors are satisfied the business is on a firm footing for trading over the next 12 months.

 

On this basis of the above the accounts have been prepared on a going concern basis.

1.5
Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable , excluding discounts, rebates, value added tax and other sales taxes.

Revenue from a contract to provide services is recognised in the period in which the services are provided when the amount of revenue can be measured reliably and it is probable that the company will receive the consideration due under the contract.

1.6
Intangible fixed assets - goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and impairment losses. Goodwill is amortised on a straight line basis to the Statement of Comprehensive Income over its useful economic life.

 

Negative goodwill is recognised where the acquirer's interest in the fair value of identifiable assets and liabilities of the acquiree at the date of acquisition exceed the amount paid for the business. Negative goodwill is amortised on a straight line basis to the Statement of Comprehensive Income over the useful economic life of the fixed assets acquired, being 50 years.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any 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.

 

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to that company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
20% straight line
Fixtures and fittings
20% straight line
Office equipment
20% straight line
Motor vehicles
20% straight line
Vessels
2% straight line
ECONEN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 6 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

Finance and borrowing costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest rate method so that the amount charged is at a consistent rate on the capital amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

1.9
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use.

 

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

ECONEN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 7 -
1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

ECONEN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 8 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

ECONEN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 9 -
1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements have had the most significant effect on amounts recognised in the financial statements.

Revaluation of assets

The company carries its vessels and plant and equipment at valuation and the directors have engaged an independent valuation specialist to determine the fair value of these assets. The vessels and plant and equipment are valued on an open market value basis in accordance with the requirements of FRS 102.

ECONEN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 10 -
3
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
2,083
-
Audit of the financial statements of the company's subsidiaries
15,222
-
17,305
-
For other services
Other taxation services
1,850
-
All other non-audit services
2,895
-
4,745
-
4
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Total
56
42
2
3
5
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 August 2022 and 31 July 2023
(2,256,550)
Amortisation and impairment
At 1 August 2022
(136,481)
Amortisation charged for the year
(44,043)
At 31 July 2023
(180,524)
Carrying amount
At 31 July 2023
(2,076,026)
At 31 July 2022
(2,120,069)
ECONEN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
5
Intangible fixed assets
(Continued)
- 11 -
Company
Goodwill
£
Cost
At 1 August 2022 and 31 July 2023
(2,310,972)
Amortisation and impairment
At 1 August 2022
(138,657)
Amortisation charged for the year
(46,219)
At 31 July 2023
(184,876)
Carrying amount
At 31 July 2023
(2,126,096)
At 31 July 2022
(2,172,315)
6
Fixed asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
-
0
-
0
75
75
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 August 2022 and 31 July 2023
75
Carrying amount
At 31 July 2023
75
At 31 July 2022
75
ECONEN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 12 -
7
Tangible fixed assets
Group
Plant and machinery etc
Vessels
Total
£
£
£
Cost or valuation
At 1 August 2022
360,965
13,038,127
13,399,092
Additions
363,251
63,717
426,968
Disposals
(109,434)
(2,083,958)
(2,193,392)
Revaluation
(81,264)
(652,796)
(734,060)
At 31 July 2023
533,518
10,365,090
10,898,608
Depreciation and impairment
At 1 August 2022
112,793
945,559
1,058,352
Depreciation charged in the year
75,074
217,539
292,613
Eliminated in respect of disposals
(81,093)
(56,703)
(137,796)
Revaluation
(81,264)
(1,106,395)
(1,187,659)
At 31 July 2023
25,510
-
0
25,510
Carrying amount
At 31 July 2023
508,008
10,365,090
10,873,098
At 31 July 2022
248,172
12,092,568
12,340,740
The company had no tangible fixed assets at 31 July 2023 or 31 July 2022.

The Group has adopted a policy of valuing its vessels and plant and machinery assets at fair value. Vessels and plant and equipment have been valued by the directors at the year end by reference to the most recent external valuation dated 21 December 2022.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2023
2022
£
£
Group
Cost
7,172,139
7,807,633
Accumulated depreciation
721,281
(6,600,743)
Carrying value
7,893,420
1,206,890
8
Subsidiaries

Details of the company's subsidiaries at 31 July 2023 are as follows:

ECONEN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
8
Subsidiaries
(Continued)
- 13 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
I&C Group Holdings Ltd
Cliff Road Dock Estate, Cliff Road, Cliff Quay, Ipswich, IP3 0AX
Ordinary share capital
75.00
-
I&C Holdings Ltd
Cliff Road Dock Estate, Cliff Road, Cliff Quay, Ipswich, IP3 0AX
Ordinary share capital
0
75.00
I&C Ltd
Cliff Road Dock Estate, Cliff Road, Cliff Quay, Ipswich, IP3 0AX
Ordinary share capital
0
75.00
9
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,208,717
2,372,592
-
0
-
0
Corporation tax recoverable
255,683
-
0
-
0
-
0
Amounts owed by group
-
0
-
0
2,321,974
3,300,974
Other debtors
1,066,613
984,481
-
-
6,531,013
3,357,073
2,321,974
3,300,974
10
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
1,915,674
1,255,495
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
66
66
Taxation and social security
1,055,719
318,230
-
0
-
0
Other creditors
2,609,366
4,302,784
10,911
989,911
5,580,759
5,876,509
10,977
989,977
11
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Other loans
6,857,143
9,882,617
-
-
Payable within one year
407,143
1,930,636
-
-
Payable after one year
6,450,000
7,951,981
-
0
-
0

Other loans include P&M Loan Facilities totalling £5,500,000 (2022: £6,981,258) secured against plant and machinery assets and a Receivables Finance Facility totalling £Nil (2022: £1,137,073), secured against trade debtors.

ECONEN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 14 -
12
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Other creditors
6,450,000
7,951,981
-
0
-
0
13
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was qualified and the auditor reported as follows:

Qualified opinion on financial statements

We have audited the financial statements of ECONEN Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2023 which comprise, the group statement of financial position, the company statement of financial position and notes to the financial statements, including 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, except for the effects of the matter described in the basis for qualified opinion paragraph, the financial statements:

Basis for qualified opinion

The comparative financial statements were unaudited and it has not been possible to obtain sufficient and appropriate audit evidence to confirm the accuracy of opening balances as at 1 August 2022 and comparative figures in the Profit and Loss Account. Any adjustment to the opening balances at 1 August 2022 would have a consequential effect on the profit for the year ended 31 July 2023. The figures for the year ended 31 July 2023 and 31 July 2022 are therefore not comparable and our audit report is qualified in respect of comparative financial information and opening balances as at 1 August 2022.

 

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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Emphasis of matter

The comparatives for the year ended 31 July 2022 are unaudited. Had we performed an audit we may have identified adjustments that would materially affect the comparative financial information.

Senior Statutory Auditor:
Barry Gostling
Statutory Auditor:
Ensors Accountants LLP
ECONEN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 15 -
14
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
137,181
57,712
-
-
15
Events after the reporting date

After the statement of financial position date the group disposed of an asset. The carrying value at the statement of financial position date was £1,060,000.

16
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Management charges
Interest payable / (receivable)
2023
2022
2023
2022
£
£
£
£
Group
Entities with control, joint control or significant influence over the company
120,000
120,000
77,117
83,545
Company
Entities with control, joint control or significant influence over the company
-
-
22,275
83,545
Entities over which the entity has control, joint control or significant influence
-
-
(22,275)
(83,545)

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Entities with control, joint control or significant influence over the group
10,911
769,911
Key management personnel
308
-
Other related parties
15,075
78,000
ECONEN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
16
Related party transactions
(Continued)
- 16 -
Company
Entities with control, joint control or significant influence over the company
10,911
769,911
Entities over which the company has control, joint control or significant influence
66
66

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Company
Entities over which the company has control, joint control or significant influence
2,321,974
3,300,974
17
Controlling party

The ultimate controlling party is Mr J Walsh by virtue of his majority shareholding in the Group.

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