REGISTERED NUMBER: 02904541 (England and Wales) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31st December 2023 |
for |
Energy Solutions (UK) Ltd |
REGISTERED NUMBER: 02904541 (England and Wales) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31st December 2023 |
for |
Energy Solutions (UK) Ltd |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31st December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 17 |
Energy Solutions (UK) Ltd |
Company Information |
for the Year Ended 31st December 2023 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
& Statutory Auditors |
1-3 Manor Road |
Chatham |
Kent |
ME4 6AE |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Group Strategic Report |
for the Year Ended 31st December 2023 |
The director presents his strategic report of the company and the group for the year ended 31st December 2023. |
REVIEW OF BUSINESS |
The business continues to expand its activities with year on year growth in turnover of 87%. The industry wide supply chain challenges of late 2022 and early 2023 have, in the main, been alleviated and with the investment we have made in the team and their skills, the business has successfully managed these challenges and continues to accelerate its growth into the current year. |
Strong growth, combined with managed overheads, has meant that the company has become very profitable and highly cash generative. There continues to be positive prospects into 2024 and beyond, driven by substantial new customers, product programmes and continued acceleration in the worldwide growth in electrification. |
KEY PERFORMANCE INDICATORS |
The Board use profitability and growth in turnover as our primary indicators. The company achieved impressive results in both of these indicators. Profitability was the major successfully achieved indicator in the year with growth of 549%. As such the Director believes business prospects and profit growth measures to be strong. |
PRINCIPAL RISKS AND UNCERTAINTIES |
We monitor risk areas such as supply chain challenges, interest rates and the general economy. We are in a period of growth that insulates against aspects of these risks. |
FUTURE DEVELOPMENTS |
We are working to achieve ISO9001 which will boost our impact in the market. We also intend to relocate to larger premises in 2024 to facilitate further growth and this is supported by launching multiple newly developed products in 2024. |
ON BEHALF OF THE BOARD: |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Report of the Director |
for the Year Ended 31st December 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 31st December 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2023 will be £66,057. |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Beak Kemmenoe, will be deemed to be re-appointed at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Energy Solutions (UK) Ltd |
Opinion |
We have audited the financial statements of Energy Solutions (UK) Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the Consolidated Income Statement, Consolidated Other 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 31st December 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Energy Solutions (UK) Ltd |
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 Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the director is responsible for assessing the 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Energy Solutions (UK) Ltd |
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 as follows: |
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the business sector; |
- We 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, taxation legislation and data protection, anti-bribery, employment and health and safety legislation; |
- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and |
- Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
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 as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; 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; and |
- Enquiring of management as to actual and potential litigation and claims; |
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 |
Energy Solutions (UK) Ltd |
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 Auditors |
1-3 Manor Road |
Chatham |
Kent |
ME4 6AE |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Consolidated |
Income Statement |
for the Year Ended 31st December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 24,107,136 | 12,863,876 |
Cost of sales | 19,454,351 | 11,024,034 |
GROSS PROFIT | 4,652,785 | 1,839,842 |
Administrative expenses | 2,376,482 | 1,450,855 |
2,276,303 | 388,987 |
Other operating income | - | 2,690 |
OPERATING PROFIT | 4 | 2,276,303 | 391,677 |
Interest payable and similar expenses | 5 | 164,010 | 66,254 |
PROFIT BEFORE TAXATION | 2,112,293 | 325,423 |
Tax on profit | 6 | 507,760 | 56,921 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,604,533 | 268,502 |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31st December 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,604,533 | 268,502 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,604,533 |
268,502 |
Total comprehensive income attributable to: |
Owners of the parent | 1,604,533 | 268,502 |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Consolidated Balance Sheet |
31st December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 183,934 | 126,785 |
Tangible assets | 10 | 540,530 | 437,678 |
Investments | 11 |
Interest in associate | 272,102 | - |
996,566 | 564,463 |
CURRENT ASSETS |
Stocks | 12 | 2,874,309 | 3,864,975 |
Debtors | 13 | 3,351,763 | 2,488,981 |
Cash at bank and in hand | 130,536 | 278,000 |
6,356,608 | 6,631,956 |
CREDITORS |
Amounts falling due within one year | 14 | 3,905,966 | 5,222,472 |
NET CURRENT ASSETS | 2,450,642 | 1,409,484 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
3,447,208 |
1,973,947 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(430,179 |
) |
(538,350 |
) |
PROVISIONS FOR LIABILITIES | 19 | (42,956 | ) | - |
NET ASSETS | 2,974,073 | 1,435,597 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 1,000 | 1,000 |
Share premium | 21 | 27,672 | 27,672 |
Retained earnings | 21 | 2,945,401 | 1,406,925 |
SHAREHOLDERS' FUNDS | 2,974,073 | 1,435,597 |
The financial statements were approved by the director and authorised for issue on 25th July 2024 and were signed by: |
J P Holland - Director |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Company Balance Sheet |
31st December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Share premium | 21 |
Retained earnings | 21 | 2,252,126 | 883,749 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,434,434 | 230,708 |
The financial statements were approved by the director and authorised for issue on |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31st December 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1st January 2022 | 1,000 | 1,193,130 | 27,672 | 1,221,802 |
Changes in equity |
Dividends | - | (54,707 | ) | - | (54,707 | ) |
Total comprehensive income | - | 268,502 | - | 268,502 |
Balance at 31st December 2022 | 1,000 | 1,406,925 | 27,672 | 1,435,597 |
Changes in equity |
Dividends | - | (66,057 | ) | - | (66,057 | ) |
Total comprehensive income | - | 1,604,533 | - | 1,604,533 |
Balance at 31st December 2023 | 1,000 | 2,945,401 | 27,672 | 2,974,073 |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Company Statement of Changes in Equity |
for the Year Ended 31st December 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1st January 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31st December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31st December 2023 | 1,000 |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Consolidated Cash Flow Statement |
for the Year Ended 31st December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,144,505 | (1,015,491 | ) |
Interest paid | (143,785 | ) | (58,436 | ) |
Interest element of hire purchase payments paid |
(20,225 |
) |
(7,818 |
) |
Net cash from operating activities | 980,495 | (1,081,745 | ) |
Cash flows from investing activities |
Purchase of intangible fixed assets | (86,947 | ) | (105,232 | ) |
Purchase of tangible fixed assets | (121,757 | ) | (73,730 | ) |
Purchase of fixed asset investments | (272,102 | ) | - |
Sale of tangible fixed assets | 55,525 | 5,250 |
Net cash from investing activities | (425,281 | ) | (173,712 | ) |
Cash flows from financing activities |
New loans in year | - | 250,000 |
Loan repayments in year | (207,250 | ) | (91,417 | ) |
Capital repayments in year | (117,321 | ) | (43,898 | ) |
Equity dividends paid | (66,057 | ) | (54,707 | ) |
Net cash from financing activities | (390,628 | ) | 59,978 |
Increase/(decrease) in cash and cash equivalents | 164,586 | (1,195,479 | ) |
Cash and cash equivalents at beginning of year |
2 |
(1,059,678 |
) |
135,801 |
Cash and cash equivalents at end of year | 2 | (895,092 | ) | (1,059,678 | ) |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31st December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 2,112,293 | 325,423 |
Depreciation charges | 180,670 | 114,656 |
Profit on disposal of fixed assets | (2,939 | ) | (3,305 | ) |
Finance costs | 164,010 | 66,254 |
2,454,034 | 503,028 |
Decrease/(increase) in stocks | 990,666 | (2,061,884 | ) |
Increase in trade and other debtors | (974,177 | ) | (1,490,244 | ) |
(Decrease)/increase in trade and other creditors | (1,326,018 | ) | 2,033,609 |
Cash generated from operations | 1,144,505 | (1,015,491 | ) |
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 31st December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 130,536 | 278,000 |
Bank overdrafts | (1,025,628 | ) | (1,337,678 | ) |
(895,092 | ) | (1,059,678 | ) |
Year ended 31st December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 278,000 | 560,069 |
Bank overdrafts | (1,337,678 | ) | (424,268 | ) |
(1,059,678 | ) | 135,801 |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31st December 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.1.23 | Cash flow | changes | At 31.12.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 278,000 | (147,464 | ) | 130,536 |
Bank overdrafts | (1,337,678 | ) | 312,050 | (1,025,628 | ) |
(1,059,678 | ) | 164,586 | (895,092 | ) |
Debt |
Finance leases | (239,167 | ) | 117,321 | (184,552 | ) | (306,398 | ) |
Debts falling due |
within 1 year | (122,667 | ) | 35,000 | - | (87,667 | ) |
Debts falling due |
after 1 year | (397,501 | ) | 172,250 | - | (225,251 | ) |
(759,335 | ) | 324,571 | (184,552 | ) | (619,316 | ) |
Total | (1,819,013 | ) | 489,157 | (184,552 | ) | (1,514,408 | ) |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31st December 2023 |
1. | STATUTORY INFORMATION |
Energy Solutions (UK) Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements drawn up to 31 December 2023 consolidate the financial statements of the company and its subsidiary undertakings. The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed. |
Business combinations are accounted for under the purchase method. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the group. All intra-group transactions, balances, income and expenses are eliminated on consolidation. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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 |
Improvements to property | - | 5 years straight line |
Plant and machinery | - | 25% reducing balance |
Fixtures and fittings | - | 25% reducing balance |
Motor vehicles | - | 25% reducing balance |
Computer Equipment | - | 33% reducing balance |
Investments in associates |
Investments in associate undertakings are recognised at cost. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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. |
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. |
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. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,478,982 | 1,555,116 |
Social security costs | 230,679 | 161,932 |
Other pension costs | 115,431 | 55,658 |
2,825,092 | 1,772,706 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Production and support | 35 | 27 |
Engineering | 11 | 9 |
Sales and purchasing | 8 | 6 |
Finance and office | 7 | 3 |
Other | 11 | 4 |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
2023 | 2022 |
£ | £ |
Director's remuneration | 11,400 | 9,556 |
Director's pension contributions to money purchase schemes | 28,400 | 3,600 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 62,621 | 56,479 |
Depreciation - assets on hire purchase contracts | 93,093 | 39,986 |
Profit on disposal of fixed assets | (2,939 | ) | (3,305 | ) |
Patents and licences amortisation | 343 | - |
Computer software amortisation | 24,612 | 18,191 |
Auditors' remuneration | 4,800 | 3,600 |
Foreign exchange differences | - | 10,129 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 32,906 | 20,180 |
Invoice discounting charges | 110,879 | 38,256 |
Hire purchase interest | 20,225 | 7,818 |
164,010 | 66,254 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 353,409 | - |
Deferred tax | 154,351 | 56,921 |
Tax on profit | 507,760 | 56,921 |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
6. | TAXATION - continued |
Reconciliation of total tax charge 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 | 2,112,293 | 325,423 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
528,073 |
61,830 |
Effects of: |
Expenses not deductible for tax purposes | 1,684 | 174 |
Capital allowances in excess of depreciation | (26,807 | ) | (52,402 | ) |
Utilisation of tax losses | (127,311 | ) | (16,580 | ) |
Losses carried forward | - | 6,978 |
Profits taxed at 19% | (22,230 | ) | - |
Deferred tax | 154,351 | 56,921 |
Total tax charge | 507,760 | 56,921 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim | 66,057 | 54,707 |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and | Computer |
Goodwill | licences | software | Totals |
£ | £ | £ | £ |
COST |
At 1st January 2023 | 2,000 | - | 151,762 | 153,762 |
Additions | - | 14,554 | 72,393 | 86,947 |
Disposals | - | - | (5,708 | ) | (5,708 | ) |
At 31st December 2023 | 2,000 | 14,554 | 218,447 | 235,001 |
AMORTISATION |
At 1st January 2023 | 2,000 | - | 24,977 | 26,977 |
Amortisation for year | - | 343 | 24,612 | 24,955 |
Eliminated on disposal | - | - | (865 | ) | (865 | ) |
At 31st December 2023 | 2,000 | 343 | 48,724 | 51,067 |
NET BOOK VALUE |
At 31st December 2023 | - | 14,211 | 169,723 | 183,934 |
At 31st December 2022 | - | - | 126,785 | 126,785 |
Company |
Patents |
and | Computer |
licences | software | Totals |
£ | £ | £ |
COST |
At 1st January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31st December 2023 |
AMORTISATION |
At 1st January 2023 |
Amortisation for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1st January 2023 | 41,126 | 414,642 | 13,288 |
Additions | - | 87,870 | - |
Disposals | - | (45,055 | ) | - |
At 31st December 2023 | 41,126 | 457,457 | 13,288 |
DEPRECIATION |
At 1st January 2023 | 13,586 | 173,087 | 12,908 |
Charge for year | 8,943 | 82,170 | 47 |
Eliminated on disposal | - | (30,922 | ) | - |
At 31st December 2023 | 22,529 | 224,335 | 12,955 |
NET BOOK VALUE |
At 31st December 2023 | 18,597 | 233,122 | 333 |
At 31st December 2022 | 27,540 | 241,555 | 380 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1st January 2023 | 360,295 | 3,813 | 833,164 |
Additions | 218,439 | - | 306,309 |
Disposals | (112,550 | ) | - | (157,605 | ) |
At 31st December 2023 | 466,184 | 3,813 | 981,868 |
DEPRECIATION |
At 1st January 2023 | 192,606 | 3,299 | 395,486 |
Charge for year | 64,469 | 85 | 155,714 |
Eliminated on disposal | (78,940 | ) | - | (109,862 | ) |
At 31st December 2023 | 178,135 | 3,384 | 441,338 |
NET BOOK VALUE |
At 31st December 2023 | 288,049 | 429 | 540,530 |
At 31st December 2022 | 167,689 | 514 | 437,678 |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1st January 2023 | 118,108 | 252,080 | 370,188 |
Additions | 24,861 | 204,045 | 228,906 |
Disposals | - | (88,050 | ) | (88,050 | ) |
At 31st December 2023 | 142,969 | 368,075 | 511,044 |
DEPRECIATION |
At 1st January 2023 | 14,740 | 99,451 | 114,191 |
Charge for year | 36,074 | 57,019 | 93,093 |
Eliminated on disposal | - | (57,977 | ) | (57,977 | ) |
At 31st December 2023 | 50,814 | 98,493 | 149,307 |
NET BOOK VALUE |
At 31st December 2023 | 92,155 | 269,582 | 361,737 |
At 31st December 2022 | 103,368 | 152,629 | 255,997 |
Company |
Improvements |
to | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1st January 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1st January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
11. | FIXED ASSET INVESTMENTS |
Group |
Interest |
in |
associate |
£ |
COST |
Additions | 272,102 |
At 31st December 2023 | 272,102 |
NET BOOK VALUE |
At 31st December 2023 | 272,102 |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
Group |
Interest in associate |
Energy Solutions (USA) Limited |
The group's share of Energy Solutions (USA) Limited is as follows: |
2023 | 2022 |
£ | £ |
Turnover | 49,450 | 37,647 |
Profit before tax | 39,054 | 179,343 |
Taxation | (16,501 | ) | (32,501 | ) |
Profit after tax | 22,553 | 146,842 |
Share of assets |
Fixed assets | 401,901 | 402,534 |
Current assets | 26,812 | 4,020 |
Share of liabilities |
Liabilities due within one year | (102,190 | ) | (18,678 | ) |
Liabilities due after one year or more | (39,550 | ) | (246,911 | ) |
Share of net assets | 286,973 | 140,965 |
Company |
Shares in | Interest |
group | in |
undertakings | associate | Totals |
£ | £ | £ |
COST |
At 1st January 2023 | 30,000 |
Additions | 272,102 |
At 31st December 2023 | 302,102 |
NET BOOK VALUE |
At 31st December 2023 | 302,102 |
At 31st December 2022 | 30,000 |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: 52 - 54 Riverside, Sir Thomas Langley Road, Medway City Estate, Rochester, Kent, ME2 4DP |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
12. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Stocks | 2,874,309 | 3,864,975 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 3,131,669 | 2,238,980 |
Other debtors and prepayments | 220,094 | 138,606 |
Deferred tax asset | - | 111,395 | - | 18,480 |
3,351,763 | 2,488,981 |
Deferred tax asset |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | - | 111,395 | - | 18,480 |
Trade debtors in the sum of £2,932,684 (2022: £1,846,724) were subject to an invoice discounting agreement. |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 1,113,295 | 1,460,345 |
Hire purchase contracts (see note 17) | 101,470 | 98,318 |
Trade creditors | 1,234,085 | 2,570,737 |
Corporation tax | 353,409 | - |
Social security and other taxes | 538,792 | 530,912 |
Other creditors and accruals | 564,915 | 562,160 |
3,905,966 | 5,222,472 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 16) | 225,251 | 397,501 |
Hire purchase contracts (see note 17) | 204,928 | 140,849 |
430,179 | 538,350 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 1,025,628 | 1,337,678 |
Bank loans | 87,667 | 122,667 |
1,113,295 | 1,460,345 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 87,667 | 87,657 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 137,584 | 278,594 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | - | 31,250 | - | 31,250 |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 101,470 | 98,318 |
Between one and five years | 204,928 | 140,849 |
306,398 | 239,167 |
Company |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank overdrafts | 1,025,628 | 1,337,678 |
Hire purchase contracts | 306,398 | 239,167 | 306,398 | 239,167 |
1,332,026 | 1,576,845 |
The overdraft consists of an invoicing discount facility which has a fixed and floating charge over the undertaking and all property and assets present and future including bookdebts uncalled capital buildings fixtures and plant and machinery. . |
Hire purchase contracts are secured over the assets concerned. |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 42,956 | - | 88,393 | - |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
19. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1st January 2023 | (111,395 | ) |
Provided during year | 154,351 |
Balance at 31st December 2023 | 42,956 |
Company |
Deferred |
tax |
£ |
Balance at 1st January 2023 | ( |
) |
Provided during year |
Balance at 31st December 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
21. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1st January 2023 | 1,406,925 | 27,672 | 1,434,597 |
Profit for the year | 1,604,533 | 1,604,533 |
Dividends | (66,057 | ) | (66,057 | ) |
At 31st December 2023 | 2,945,401 | 27,672 | 2,973,073 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1st January 2023 | 883,749 | 27,672 | 911,421 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31st December 2023 | 2,252,126 | 27,672 | 2,279,798 |
Energy Solutions (UK) Ltd (Registered number: 02904541) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
22. | RELATED PARTY DISCLOSURES |
During the year, the company made sales amounting to £9,426 (2022: £2,663) to Twinney Wharf Limited, a company which P Holland has a controlling interest. In addition, the company paid a management charge of £81,600 (2022: £nil) and electricity usage charge of £1,668 (2022:£1,877). All transactions were on an arm's length basis. |
Included in trade debtors is a balance of £1,416 (2022:£2,304) due from Twinney Wharf Limited. |
Included in other debtors are balances outstanding due from Twinney Wharf Limited of £78,580 (2022: £79,000) and The Oak Grove in Kent Limited, a company which P Holland has a controlling interest, of £22,000 (2022:£nil). Both loans are repayable on demand. |
No amounts were written off in the year. |