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REGISTERED NUMBER: 05236072 (England and Wales)






















TEI Limited

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30th September 2023






TEI Limited (Registered number: 05236072)






Contents of the Financial Statements
for the year ended 30th September 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15


TEI Limited

Company Information
for the year ended 30th September 2023







DIRECTORS: D Hyland
D J Billington
A J Waddington
J A Budby
W J Steer
I M Yorke





SECRETARY: J A Budby





REGISTERED OFFICE: Unit 21 Power Park
Calder Vale Road
Wakefield
West Yorkshire
WF1 5PE





REGISTERED NUMBER: 05236072 (England and Wales)





AUDITORS: Smailes Goldie
Chartered Accountants
Statutory Auditor
Regent's Court
Princess Street
Hull
East Yorkshire HU2 8BA

TEI Limited (Registered number: 05236072)

Strategic Report
for the year ended 30th September 2023

The directors present their strategic report for the year ended 30th September 2023.

PRINCIPAL ACTIVITY
During the year under review, the company primarily engaged in the design, engineering, installation, commissioning, and provision of spares and services for steam generating equipment. Additionally, we executed project management on outages, installation, repair, and maintenance of steam generating, process plant, auxiliary equipment, and pipework within the UK and overseas.

REVIEW OF BUSINESS
The Key Performance Indicators for the period under review are:


2022-2023 2021-2022
Revenue £29.3m £23.3m
PBIT £0.45m £0.49m
Reportable accidents 1 1


After a thorough evaluation of the company's performance for the year, the Directors are pleased to report satisfactory results. The present trend of an increase in demand for our products and services continued, which was reflected in a rise of turnover of over 26%. Following this, reserves have allowed for a dividend to be paid to clear an historical inter-company loan. However, it's important to note that the UK skill shortage and supply chain issues are still posing additional obstacles, which has resulted in a lower return overall as investments in our people remains a priority to counter this problem.

As usual, the quiet winter months resulted in low turnover and profit which was exacerbated by some postponed contracts. However, the last few months of the fiscal year proved to be extremely busy, allowing us to regain momentum and continue this positive trend into the new fiscal year. Both our staff and workforce remain fully engaged and optimistic about the future, with several high-quality prospects on the horizon. Additionally, we have been successful in attracting and retaining key personnel and capitalising on several contracts during the period, which are expected to generate significant repeat business opportunities.

The senior leadership team has identified new prospects for 2023/24 and beyond, resulting in an increase in market share with continued improvement in operational and financial performance. We've successfully acquired and upheld significant contracts and framework agreements with esteemed blue-chip clients within our designated market segments, and furthermore, our international initiatives are starting to yield promising results.

PRINCIPAL RISKS AND UNCERTAINTIES
The economic challenges and uncertainties persist, marked by skill shortages, supply chain issues, climate change impacts, and general cost and price increases, all posing significant risks to the company. Additionally, our overseas ventures have heightened our exposure to foreign currency fluctuations and liquidity risks. To mitigate these risks, the Directors are actively working closely with key clients, assessing their requirements and asset management plans. We are recruiting across various sectors, bolstering our workforce with additional education and training to facilitate expansion into new markets. Simultaneously, we are rigorously scrutinising costs and systems to optimise operational efficiency.


TEI Limited (Registered number: 05236072)

Strategic Report
for the year ended 30th September 2023

DEVELOPMENT AND PERFORMANCE
We are diligently progressing, measuring, and reviewing our overall business strategy on a dynamic basis, utilising software, and digital methods. This same approach applies to the development of our integrated management system (IMS), and, during the year, the Board made decisions and approved significant investment in equipment, training, IT, processes, and systems.

Investments in research and development capabilities have enabled us to deliver design and engineering solutions to the industry, while also benefiting from tax credits resulting from R&D expenditure.

Additional investment was allocated post-balance sheet to advance our international corporate strategy, marked by the acquisition of the Greens Power Equipment businesses situated in Singapore and the UK.

Our performance expectations are to secure and execute profitable turnover, adding shareholder value. By strengthening our performance, we enhance the perception of the company among key stakeholders.

Recognising the importance of our staff as a valuable resource, we are committed to their further development through mentoring, management, supervision, training, education, and communication. This approach is expected to improve both individual and overall company performance, maximising opportunities for repeat business.

KEY PERFORMANCE INDICATORS
Aside from tracking financial KPIs, to gauge our development and financial performance, we also monitor additional KPIs, for further evaluation by the Directors, to comprehensively measure performance. These KPIs are integrated into our Business, Human Resource, and SHEQ (Safety, Health, Environment, and Quality) Objectives and Targets, serving as the principal performance measures for our accredited management system (ISO 45001, ISO 9001, and ISO 14001).

'Nobody Gets Hurt'

Health and Safety is a top priority for the company and its customers. We strive to maintain excellent accident statistics as a key target. Additionally, preserving our reputation in the marketplace is of utmost importance to the Directors, who monitor feedback to gauge stakeholder satisfaction levels.

We are proud to have received the prestigious Patron's Award (29 consecutive years of Gold awards) in the internationally renowned RoSPA Health and Safety Awards, the UK's longest-running industry awards scheme. This recognition acknowledges our commitment to practices and achievements that ensure the safety of our staff, customers, clients, and contractors.

The RoSPA Awards scheme, which receives entries from organisations worldwide, acknowledges excellence in health and safety management systems, including leadership and workforce involvement practices.

ON BEHALF OF THE BOARD:





A J Waddington - Director


30th April 2024

TEI Limited (Registered number: 05236072)

Report of the Directors
for the year ended 30th September 2023

The directors present their report with the financial statements of the company for the year ended 30th September 2023.

DIVIDENDS
Dividends totalling £2,039,017 (2022 £nil) were paid during the period.

The director recommends there is no final dividend paid.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1st October 2022 to the date of this report.

D Hyland
D J Billington
A J Waddington
J A Budby
W J Steer

Other changes in directors holding office are as follows:

I M Yorke was appointed as a director after 30th September 2023 but prior to the date of this report.

EMPLOYEES
It is our policy that people with disabilities have full and fair consideration for all vacancies. We are committed to interviewing those people with disabilities who fulfil the minimum criteria and endeavour to retain employees in the workforce if they become disabled during employment, we will retrain and adjust their environment where possible.

Employees are kept well informed of the performance and objective of the company through personal briefings, regular meetings, email and the company website.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

TEI Limited (Registered number: 05236072)

Report of the Directors
for the year ended 30th September 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





A J Waddington - Director


30th April 2024

Report of the Independent Auditors to the Members of
TEI Limited

Opinion
We have audited the financial statements of TEI Limited (the 'company') for the year ended 30th September 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30th September 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
TEI Limited


Matters on which we are required to report by exception
In the light of the 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 or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

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

Report of the Independent Auditors to the Members of
TEI Limited


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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, tax legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-
assessed whether judgements and assumptions made in determining the accounting estimates were
indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:


-

agreeing financial statement disclosures to underlying supporting documentation;

-

enquiring of management as to actual and potential litigation and claims.
Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
TEI Limited


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




Peter Dearing BSc FCCA (Senior Statutory Auditor)
for and on behalf of Smailes Goldie
Chartered Accountants
Statutory Auditor
Regent's Court
Princess Street
Hull
East Yorkshire HU2 8BA

30th April 2024

TEI Limited (Registered number: 05236072)

Statement of Comprehensive Income
for the year ended 30th September 2023

2023 2022
Notes £    £   

TURNOVER 3 29,313,372 23,189,958

Cost of sales 23,432,617 17,982,078
GROSS PROFIT 5,880,755 5,207,880

Administrative expenses 5,431,423 4,720,799
OPERATING PROFIT 5 449,332 487,081

Interest receivable and similar income 1,017 -
450,349 487,081

Interest payable and similar expenses 6 212,678 90,882
PROFIT BEFORE TAXATION 237,671 396,199

Tax on profit 7 (180,145 ) (560,076 )
PROFIT FOR THE FINANCIAL YEAR 417,816 956,275

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

417,816

956,275

TEI Limited (Registered number: 05236072)

Balance Sheet
30th September 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 190,759 107,218
Investments 10 100 100
190,859 107,318

CURRENT ASSETS
Stocks 11 31,674 37,199
Debtors 12 8,937,504 12,360,540
Cash at bank and in hand 305,143 288,639
9,274,321 12,686,378
CREDITORS
Amounts falling due within one year 13 8,183,157 9,890,472
NET CURRENT ASSETS 1,091,164 2,795,906
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,282,023

2,903,224

CAPITAL AND RESERVES
Called up share capital 18 62,000 62,000
Retained earnings 19 1,220,023 2,841,224
SHAREHOLDERS' FUNDS 1,282,023 2,903,224

The financial statements were approved by the Board of Directors and authorised for issue on 30th April 2024 and were signed on its behalf by:





A J Waddington - Director


TEI Limited (Registered number: 05236072)

Statement of Changes in Equity
for the year ended 30th September 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1st October 2021 62,000 1,884,949 1,946,949

Changes in equity
Total comprehensive income - 956,275 956,275
Balance at 30th September 2022 62,000 2,841,224 2,903,224

Changes in equity
Dividends - (2,039,017 ) (2,039,017 )
Total comprehensive income - 417,816 417,816
Balance at 30th September 2023 62,000 1,220,023 1,282,023

TEI Limited (Registered number: 05236072)

Cash Flow Statement
for the year ended 30th September 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,081,085 (1,437,502 )
Interest paid (212,678 ) (90,882 )
Tax refunded 453,743 391,900
Net cash from operating activities 1,322,150 (1,136,484 )

Cash flows from investing activities
Purchase of tangible fixed assets (150,224 ) (15,649 )
Sale of tangible fixed assets 500 -
Interest received 1,017 -
Net cash from investing activities (148,707 ) (15,649 )

Cash flows from financing activities
Loan repayments in year - (126,030 )
Capital repayments in year (1,469 ) (4,115 )
Movement on invoice discounting (1,155,470 ) 1,434,867
Net cash from financing activities (1,156,939 ) 1,304,722

Increase in cash and cash equivalents 16,504 152,589
Cash and cash equivalents at
beginning of year

2

288,639

136,050

Cash and cash equivalents at end of
year

2

305,143

288,639

TEI Limited (Registered number: 05236072)

Notes to the Cash Flow Statement
for the year ended 30th September 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 237,671 396,199
Depreciation charges 66,683 90,913
Profit on disposal of fixed assets (500 ) -
Finance costs 212,678 90,882
Finance income (1,017 ) -
515,515 577,994
Decrease in stocks 5,525 5,304
Decrease/(increase) in trade and other debtors 1,110,421 (3,496,097 )
(Decrease)/increase in trade and other creditors (550,376 ) 1,475,297
Cash generated from operations 1,081,085 (1,437,502 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30th September 2023
30/9/23 1/10/22
£    £   
Cash and cash equivalents 305,143 288,639
Year ended 30th September 2022
30/9/22 1/10/21
£    £   
Cash and cash equivalents 288,639 136,050


3. ANALYSIS OF CHANGES IN NET DEBT

At 1/10/22 Cash flow At 30/9/23
£    £    £   
Net cash
Cash at bank and in hand 288,639 16,504 305,143
288,639 16,504 305,143
Debt
Finance leases (1,469 ) 1,469 -
Debts falling due within 1 year (4,318,940 ) 1,155,470 (3,163,470 )
(4,320,409 ) 1,156,939 (3,163,470 )
Total (4,031,770 ) 1,173,443 (2,858,327 )

TEI Limited (Registered number: 05236072)

Notes to the Financial Statements
for the year ended 30th September 2023

1. STATUTORY INFORMATION

TEI Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The financial statements have been prepared on a going concern basis which the Directors consider to be appropriate.

Significant judgements and estimates
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

In respect of long term contracts there is inevitably some uncertainty on the anticipated costs to completion. However, only in those cases where, in the directors opinion, those can be estimated reliably is any attributable profit accounted for.

Turnover
When the outcome of a contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to costs incurred to date and estimated costs to complete.

Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable.

When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold- 10% on cost
Plant and machinery- 33% on cost
Motor vehicles- 25% on cost
Fixtures and fittings- 33% on cost

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

TEI Limited (Registered number: 05236072)

Notes to the Financial Statements - continued
for the year ended 30th September 2023

2. ACCOUNTING POLICIES - continued

Stocks and work in progress
Stock is stated at the lower of cost and net realisable value.

In the case of raw materials and consumable stores, cost means purchase price including transport and handling costs, less trade discounts, calculated on a first in first out basis.

Net realisable value means estimated selling price less all further costs to completion al costs to be incurred in marketing, selling and distribution.

Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Impairment
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

TEI Limited (Registered number: 05236072)

Notes to the Financial Statements - continued
for the year ended 30th September 2023

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 29,313,372 23,189,958
29,313,372 23,189,958

4. EMPLOYEES AND DIRECTORS

The average number of persons employed by the company, including directors, during the year was as follows:


Year
Ended
30.09.23


Year
Ended
30.09.22


Office and administration7168
Labour145130
216198

The aggregate payroll costs in respect of these employees were as follows:


Year
Ended
30.09.23


Year
Ended
30.09.22
£   £   

Wages and salaries14,277,72511,593,173
Social security1,740,4791,465,633
Other pension costs329,614317,111
16,347,81813,375,917

2023 2022
£    £   
Directors' remuneration 356,533 358,237
Directors' pension contributions to money purchase schemes 24,664 23,693

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 4 4

TEI Limited (Registered number: 05236072)

Notes to the Financial Statements - continued
for the year ended 30th September 2023

4. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 120,224 119,397
Pension contributions to money purchase schemes 12,236 11,801

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 65,157 65,400
Depreciation - assets on hire purchase contracts 1,526 25,513
Profit on disposal of fixed assets (500 ) -
Auditors' remuneration 17,500 16,300
Operating lease rentals 395,011 330,186

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Factoring interest 212,678 90,882

7. TAXATION

Analysis of the tax credit
The tax credit on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
Over provided in previous year (129,640 ) (324,103 )

Deferred tax (50,505 ) (235,973 )
Tax on profit (180,145 ) (560,076 )

TEI Limited (Registered number: 05236072)

Notes to the Financial Statements - continued
for the year ended 30th September 2023

7. TAXATION - continued

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 237,671 396,199
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2022 - 19%)

59,418

75,278

Effects of:
Expenses not deductible for tax purposes 6,233 3,500
Adjustments to tax charge in respect of previous periods (244,013 ) (563,183 )
Adjustments in respect of change in tax rates - (74,779 )
Super deduction enhanced expenditure (1,783 ) (892 )
Total tax credit (180,145 ) (560,076 )

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 2,039,017 -

9. TANGIBLE FIXED ASSETS
Fixtures
Short Plant and and Motor
leasehold machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1st October 2022 61,581 721,834 460,553 129,253 1,373,221
Additions - 127,837 22,387 - 150,224
Disposals - - - (7,400 ) (7,400 )
At 30th September 2023 61,581 849,671 482,940 121,853 1,516,045
DEPRECIATION
At 1st October 2022 31,235 687,894 419,147 127,727 1,266,003
Charge for year 4,467 37,071 23,619 1,526 66,683
Eliminated on disposal - - - (7,400 ) (7,400 )
At 30th September 2023 35,702 724,965 442,766 121,853 1,325,286
NET BOOK VALUE
At 30th September 2023 25,879 124,706 40,174 - 190,759
At 30th September 2022 30,346 33,940 41,406 1,526 107,218

The net book value of fixed assets includes £nil (2022 £1,305) in respect of assets held under finance leases.

TEI Limited (Registered number: 05236072)

Notes to the Financial Statements - continued
for the year ended 30th September 2023

10. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1st October 2022
and 30th September 2023 100
NET BOOK VALUE
At 30th September 2023 100
At 30th September 2022 100

The company's investments at the Balance Sheet date in the share capital of companies include the following:

GTEI Limited
Registered office:
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 100 100

11. STOCKS
2023 2022
£    £   
Raw materials 31,674 37,199

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 7,030,431 8,628,956
Amounts owed by group undertakings - 2,039,017
Amounts recoverable on contracts 1,419,371 936,665
Other debtors 2,636 326,639
Deferred tax asset 362,083 311,578
Prepayments and accrued income 122,983 117,685
8,937,504 12,360,540

Deferred tax asset
2023 2022
£    £   
Accelerated capital allowances (22,274 ) 4,131
Tax losses carried forward 384,357 307,447
362,083 311,578

TEI Limited (Registered number: 05236072)

Notes to the Financial Statements - continued
for the year ended 30th September 2023

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued

Included within trade debtors are balances totalling £7,030,431 (2022 £8,628,956) that are subject to factoring arrangements. The trade debtor balances do not qualify for derecognition on the basis that the late payment risk/reward is retained by the company. The associated liability recognised in creditors amounts to £3,163,470 (2022 £4,318,940).

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Other loans (see note 14) 3,163,470 4,318,940
Hire purchase contracts (see note 15) - 1,469
Trade creditors 2,547,642 2,368,174
Social security and other taxes 1,464,210 1,279,660
Other creditors 331,950 346,794
Accruals and deferred income 675,885 1,575,435
8,183,157 9,890,472

14. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Invoice discounting 3,163,470 4,318,940

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year - 1,469

Non-cancellable operating leases
2023 2022
£    £   
Within one year 321,568 336,557
Between one and five years 91,131 492,358
412,699 828,915

TEI Limited (Registered number: 05236072)

Notes to the Financial Statements - continued
for the year ended 30th September 2023

16. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Hire purchase contracts - 1,469
Invoice discounting 3,163,470 4,318,940
3,163,470 4,320,409

17. DEFERRED TAX
£   
Balance at 1st October 2022 (311,578 )
Credit to Statement of Comprehensive Income during year (50,505 )
Balance at 30th September 2023 (362,083 )

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
62,000 Ordinary £1 62,000 62,000

19. RESERVES
Retained
earnings
£   

At 1st October 2022 2,841,224
Profit for the year 417,816
Dividends (2,039,017 )
At 30th September 2023 1,220,023

20. PENSION COMMITMENTS

Contributions by the company to defined contribution schemes for the year amounted to £329,614 (2022 £317,111 ). The amount outstanding at 30th September 2023 was £77,595 (2022 £73,812).

21. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
2023 2022
£    £   
Amount due from related party - 2,039,017

Other related parties
2023 2022
£    £   
Amount due to related party 54,000 135,000

TEI Limited (Registered number: 05236072)

Notes to the Financial Statements - continued
for the year ended 30th September 2023

21. RELATED PARTY DISCLOSURES - continued

During the year, a total of key management personnel compensation of £ 968,579 (2022 - £ 911,968 ) was paid.

22. POST BALANCE SHEET EVENTS

On 30th November 2023, the company acquired 63% of the share capital of Greens Power Equipment Pte Ltd for a consideration of £50,000. The consideration was funded by cash reserves.

On 18th March 2024, the company acquired 63% of the share capital of Greens Power Equipment UK Ltd for a consideration of £. The consideration was funded by cash reserves.

23. ULTIMATE CONTROLLING PARTY

TEI Limited is controlled by Mr W T Shinkins by virtue of his majority shareholding in the company's
parent company.