REGISTERED NUMBER: 10811617 (England and Wales) |
TEi Group Limited |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30th September 2023 |
REGISTERED NUMBER: 10811617 (England and Wales) |
TEi Group Limited |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30th September 2023 |
TEi Group Limited (Registered number: 10811617) |
Contents of the Consolidated Financial Statements |
for the year ended 30th September 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
TEi Group Limited |
Company Information |
for the year ended 30th September 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
Regent's Court |
Princess Street |
Hull |
East Yorkshire |
HU2 8BA |
TEi Group Limited (Registered number: 10811617) |
Group Strategic Report |
for the year ended 30th September 2023 |
The directors present their strategic report of the company and the group for the year ended 30th September 2023. |
PRINCIPAL ACTIVITY |
During the year under review, the group 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 | £0.33m | £0.37m |
Reportable accidents | 1 | 1 |
After a thorough evaluation of the group'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 group. 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 Group Limited (Registered number: 10811617) |
Group 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 group 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 group 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 group 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: |
TEi Group Limited (Registered number: 10811617) |
Report of the Directors |
for the year ended 30th September 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30th September 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 30th September 2023. |
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. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he 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 group's auditors are aware of that information. |
TEi Group Limited (Registered number: 10811617) |
Report of the Directors |
for the year ended 30th September 2023 |
AUDITORS |
The auditors, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
TEi Group Limited |
Opinion |
We have audited the financial statements of TEi Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30th September 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30th September 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
TEi Group Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
TEi Group Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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 Group Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
Statutory Auditor |
Regent's Court |
Princess Street |
Hull |
East Yorkshire |
HU2 8BA |
TEi Group Limited (Registered number: 10811617) |
Consolidated 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 | 5,548,012 | 4,837,389 |
OPERATING PROFIT | 5 | 332,743 | 370,491 |
Interest receivable and similar income | 1,017 | - |
333,760 | 370,491 |
Interest payable and similar expenses | 6 | 212,678 | 90,882 |
PROFIT BEFORE TAXATION | 121,082 | 279,609 |
Tax on profit | 7 | (180,145 | ) | (560,076 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
301,227 |
839,685 |
Profit attributable to: |
Owners of the parent | 217,664 | 631,386 |
Non-controlling interests | 83,563 | 208,299 |
301,227 | 839,685 |
Total comprehensive income attributable to: |
Owners of the parent | 217,664 | 631,386 |
Non-controlling interests | 83,563 | 208,299 |
301,227 | 839,685 |
TEi Group Limited (Registered number: 10811617) |
Consolidated Balance Sheet |
30th September 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 466,358 | 582,947 |
Tangible assets | 10 | 190,759 | 107,218 |
Investments | 11 | - | - |
657,117 | 690,165 |
CURRENT ASSETS |
Stocks | 12 | 31,674 | 37,199 |
Debtors | 13 | 8,937,504 | 10,321,524 |
Cash at bank and in hand | 305,243 | 288,739 |
9,274,421 | 10,647,462 |
CREDITORS |
Amounts falling due within one year | 14 | 8,183,157 | 9,890,473 |
NET CURRENT ASSETS | 1,091,264 | 756,989 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
1,748,381 |
1,447,154 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 100 | 100 |
Retained earnings | 20 | 1,491,876 | 866,409 |
SHAREHOLDERS' FUNDS | 1,491,976 | 866,509 |
NON-CONTROLLING INTERESTS | 21 | 256,405 | 580,645 |
TOTAL EQUITY | 1,748,381 | 1,447,154 |
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: |
D Hyland - Director |
TEi Group Limited (Registered number: 10811617) |
Company Balance Sheet |
30th September 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Cash in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 2,039,017 | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
TEi Group Limited (Registered number: 10811617) |
Consolidated Statement of Changes in Equity |
for the year ended 30th September 2023 |
Called up |
share | Retained | Non-controlling | Total |
capital | earnings | Total | interests | equity |
£ | £ | £ | £ | £ |
Balance at 1st October 2021 | 100 | 235,023 | 235,123 | 372,346 | 607,469 |
Changes in equity |
Total comprehensive income | - | 631,386 | 631,386 | 208,299 | 839,685 |
Balance at 30th September 2022 | 100 | 866,409 | 866,509 | 580,645 | 1,447,154 |
Changes in equity |
Total comprehensive income | - | 217,664 | 217,664 | 83,563 | 301,227 |
Transfer between equity |
holders | - | 407,803 | 407,803 | (407,803 | ) | - |
Balance at 30th September 2023 | 100 | 1,491,876 | 1,491,976 | 256,405 | 1,748,381 |
TEi Group Limited (Registered number: 10811617) |
Company 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 |
Changes in equity |
Balance at 30th September 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 30th September 2023 |
TEi Group Limited (Registered number: 10811617) |
Consolidated Cash Flow Statement |
for the year ended 30th September 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,081,084 | (1,437,502 | ) |
Interest paid | (212,678 | ) | (90,882 | ) |
Tax refunded | 453,744 | 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 | ) |
Movements 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 |
288,739 |
136,150 |
Cash and cash equivalents at end of year |
2 |
305,243 |
288,739 |
TEi Group Limited (Registered number: 10811617) |
Notes to the Consolidated 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 | 121,082 | 279,609 |
Depreciation charges | 183,272 | 207,502 |
Profit on disposal of fixed assets | (500 | ) | - |
Finance costs | 212,678 | 90,882 |
Finance income | (1,017 | ) | - |
515,515 | 577,993 |
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 | (550,377 | ) | 1,475,298 |
Cash generated from operations | 1,081,084 | (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 | 305,243 | 288,739 |
Year ended 30th September 2022 |
30/9/22 | 1/10/21 |
£ | £ |
Cash and cash equivalents | 288,739 | 136,150 |
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 | 288,739 | 16,504 | 305,243 |
288,739 | 16,504 | 305,243 |
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 | (4,031,670 | ) | 1,173,443 | (2,858,227 | ) |
TEi Group Limited (Registered number: 10811617) |
Notes to the Consolidated Financial Statements |
for the year ended 30th September 2023 |
1. | STATUTORY INFORMATION |
TEi Group Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
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 |
TEi Group Limited (Registered number: 10811617) |
Notes to the Consolidated 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 Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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 Group Limited (Registered number: 10811617) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30th September 2023 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group'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 group. |
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 administration | 71 | 68 |
Labour | 145 | 130 |
216 | 198 |
The aggregate payroll costs in respect of these employees were as follows: |
Year Ended 30.09.23 |
Year Ended 30.09.22 |
£ | £ |
Wages and salaries | 14,277,725 | 11,593,173 |
Social security | 1,740,479 | 1,465,633 |
Other pension costs | 329,614 | 317,111 |
16,347,818 | 13,375,917 |
2023 | 2022 |
£ | £ |
Directors' remuneration | - | - |
TEi Group Limited (Registered number: 10811617) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30th September 2023 |
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 | ) | - |
Goodwill amortisation | 116,589 | 116,589 |
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 | ) |
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 | 121,082 | 279,609 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
30,271 |
53,126 |
Effects of: |
Expenses not deductible for tax purposes | 35,380 | 25,652 |
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. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
TEi Group Limited (Registered number: 10811617) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30th September 2023 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1st October 2022 |
and 30th September 2023 | 1,165,892 |
AMORTISATION |
At 1st October 2022 | 582,945 |
Amortisation for year | 116,589 |
At 30th September 2023 | 699,534 |
NET BOOK VALUE |
At 30th September 2023 | 466,358 |
At 30th September 2022 | 582,947 |
10. | TANGIBLE FIXED ASSETS |
Group |
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 Group Limited (Registered number: 10811617) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30th September 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st October 2022 |
and 30th September 2023 |
NET BOOK VALUE |
At 30th September 2023 |
At 30th September 2022 |
The company owns 80% of the issued share capital of TEI Limited a company incorporated in England & Wales. |
12. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Raw materials | 31,674 | 37,199 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Trade debtors | 7,030,431 | 8,628,956 |
Amounts recoverable on contract | 1,419,371 | 936,665 |
Other debtors | 2,636 | 326,639 |
Deferred tax asset | 362,083 | 311,578 |
Prepayments and accrued income | 122,983 | 117,686 |
8,937,504 | 10,321,524 |
Deferred tax asset |
Group |
2023 | 2022 |
£ | £ |
Accelerated capital allowances | (22,274 | ) | 4,131 |
Tax losses carried forward | 384,357 | 307,447 |
362,083 | 311,578 |
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). |
TEi Group Limited (Registered number: 10811617) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30th September 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Other loans (see note 15) | 3,163,470 | 4,318,940 |
Hire purchase contracts (see note 16) | - | 1,469 |
Trade creditors | 2,547,642 | 2,368,175 |
Amounts owed to group undertakings | - | - |
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 | 9,890,473 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or | on demand: |
Invoice discounting | 3,163,470 | 4,318,940 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase | contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | - | 1,469 |
Group |
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 Group Limited (Registered number: 10811617) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30th September 2023 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts | - | 1,469 |
Invoice discounting | 3,163,470 | 4,318,940 |
3,163,470 | 4,320,409 |
18. | DEFERRED TAX |
Group |
£ |
Balance at 1st October 2022 | (311,578 | ) |
Credit to Statement of Comprehensive Income during year | (50,505 | ) |
Balance at 30th September 2023 | (362,083 | ) |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
20. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1st October 2022 | 866,409 |
Profit for the year | 217,664 |
Transfer between equity |
holders | 407,803 |
At 30th September 2023 | 1,491,876 |
Company |
Retained |
earnings |
£ |
Profit for the year |
At 30th September 2023 |
TEi Group Limited (Registered number: 10811617) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30th September 2023 |
21. | NON-CONTROLLING INTERESTS |
2023 | 2022 |
£ | £ |
At 1st October 2022 | 580,645 | 372,346 |
On profit | 83,563 | 208,299 |
Other transfers between equity holders | (407,803 | ) | - |
At 30th September 2023 | 256,405 | 580,645 |
22. | PENSION COMMITMENTS |
Contributions by the group 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). |
23. | RELATED PARTY DISCLOSURES |
Key management personnel of the entity or its parent (in the | aggregate) |
During the year, a total of key management personnel compensation of £968,579 (2022 £911,968) was paid. |
24. | POST BALANCE SHEET EVENTS |
On 30th November 2023, TEi Limited 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, TEi Limited acquired 63% of the share capital of Greens Power Equipment UK Ltd for a consideration of £. The consideration was funded by cash reserves. |
25. | ULTIMATE CONTROLLING PARTY |
The controlling party is W T Shinkins. |