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Registered number: 03891836









TNEI Services Limited









Annual Report and Financial Statements

For the year ended 31 December 2023

 
TNEI Services Limited
 
 
Company Information


Directors
N Tate 
D Gütschow 
TND Jayawarna 




Registered number
03891836



Registered office
Bainbridge House
86-90 London Road

Manchester

M1 2PW




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Stockport

Cheshire

SK1 3GG





 
TNEI Services Limited
 

Contents



Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Analysis of net debt
12
Notes to the financial statements
13 - 24


 
TNEI Services Limited
 
 
Strategic Report
For the year ended 31 December 2023

Introduction
 
The directors present their strategic report for the year ended 31 December 2023.

Business review
 
TNEI has once again had a very successful year, as can be seen in these accounts, and the business continues to grow quickly in the very favourable renewable energy market conditions that prevail at present.
In order to further capitalise on this growth and to cement TNEI’s position as a leading independent power systems consultancy the Group established two new companies in the USA, to expand our offering geographically, and India to give additional support to the development of our own software product (IPSA) during the year. 

Principal risks and uncertainties
 
The principal risk to the continued growth of the business continues to be a potential lack of resources to deliver work. The management team have sought to mitigate this employing our first full time HR Manager this year to better co-ordinate and manage our recruitment and also to focus on inducting new staff well and on the continuing professional development of all of our staff to aid retention of existing staff.

Financial key performance indicators
 
The key performance indicators in TNEI are order intake and time revenue against plan. In 2023 the actual order intake was £10,043,000 against a plan of £7,939,000 and the time revenue was £9,156,000 against a plan of £8,184,000.

Other key performance indicators
 
Recruitment, while challenging, was successful in 2023 as we started the year with 74 staff and ended the year with 98 staff.  This significantly exceeded our planned increase in staff numbers of 79 staff during the year.


This report was approved by the board and signed on its behalf.



N Tate
Director

Date: 26 July 2024

Page 1

 
TNEI Services Limited
 
 
 
Directors' Report
For the year ended 31 December 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, the directors' report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,676,462 (2022 - £1,362,246).

Dividends paid during the year amounted to £Nil (2022: £2,350,000).  The directors do not recommend that any final dividend will be paid.

Directors

The directors who served during the year were:

N Tate 
D Gütschow 
TND Jayawarna 

Disclosure of information to auditors

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 2

 
TNEI Services Limited
 
 
 
Directors' Report (continued)
For the year ended 31 December 2023

Auditors

The auditorsHurst Accountants Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 



N Tate
Director

Date: 26 July 2024

Page 3

 
TNEI Services Limited
 
 
 
Independent Auditors' Report to the Members of TNEI Services Limited
 

Opinion


We have audited the financial statements of TNEI Services Limited (the 'Company') for the year ended 31 December 2023, which comprise the statement of comprehensive income, the balance sheet, the statement of cash flows, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 31 December 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 United Kingdom, including the Financial Reporting Council'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 other information comprises the information included in the Annual Report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Page 4

 
TNEI Services Limited
 
 
 
Independent Auditors' Report to the Members of TNEI Services Limited (continued)


Opinion 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


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 directors' report.


We have nothing to report in respect of the following matters in relation to which 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 directors' responsibilities statement set out on page 2, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the 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.


Page 5

 
TNEI Services Limited
 
 
 
Independent Auditors' Report to the Members of TNEI Services Limited (continued)


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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud. 
Supporting documentation relating to the Company's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations
°Detecting and responding to the risks of fraud
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption.

Audit response to risks identified
Our procedures to respond to the risks identified included the following:

Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
Enquiring of management about any actual and potential litigation and claims.
Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.

We have also considered the risk of fraud through management override of controls by:

Page 6

 
TNEI Services Limited
 
 
 
Independent Auditors' Report to the Members of TNEI Services Limited (continued)


Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.


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 auditors' report.


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.



Anthony Woodings (senior statutory auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
Stockport
Cheshire
SK1 3GG

26 July 2024
Page 7

 
TNEI Services Limited
 
 
Statement of Comprehensive Income
For the year ended 31 December 2023

2023
2022
Note
£
£

  

Turnover
 4 
10,674,266
7,780,034

Cost of sales
  
(6,332,989)
(4,085,734)

Gross profit
  
4,341,277
3,694,300

Administrative expenses
  
(2,130,437)
(2,074,819)

Operating profit
 5 
2,210,840
1,619,481

Interest payable and similar expenses
 9 
(109,939)
(83,838)

Profit before tax
  
2,100,901
1,535,643

Tax on profit
 10 
(424,439)
(173,397)

Profit for the financial year
  
1,676,462
1,362,246

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 13 to 24 form part of these financial statements.

Page 8

 
TNEI Services Limited
Registered number: 03891836

Balance Sheet
As at 31 December 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
111,865
133,763

Current assets
  

Debtors: amounts falling due within one year
 13 
8,970,596
7,982,157

Cash at bank and in hand
 14 
1,519,619
1,037,267

  
10,490,215
9,019,424

Creditors: amounts falling due within one year
 15 
(5,431,962)
(4,850,480)

Net current assets
  
 
 
5,058,253
 
 
4,168,944

Total assets less current liabilities
  
5,170,118
4,302,707

Creditors: amounts falling due after more than one year
 16 
(594,793)
(1,403,844)

  

Net assets
  
4,575,325
2,898,863


Capital and reserves
  

Called up share capital 
 19 
100
100

Profit and loss account
 20 
4,575,225
2,898,763

  
4,575,325
2,898,863


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


N Tate
Director

Date: 26 July 2024

The notes on pages 13 to 24 form part of these financial statements.

Page 9

 
TNEI Services Limited
 

Statement of Changes in Equity
For the year ended 31 December 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023
100
2,898,763
2,898,863


Comprehensive income for the year

Profit for the year
-
1,676,462
1,676,462


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
1,676,462
1,676,462


Total transactions with owners
-
-
-


At 31 December 2023
100
4,575,225
4,575,325


The notes on pages 13 to 24 form part of these financial statements.


Statement of Changes in Equity
For the year ended 31 December 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
100
3,886,517
3,886,617


Comprehensive income for the year

Profit for the year
-
1,362,246
1,362,246


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
1,362,246
1,362,246


Contributions by and distributions to owners

Dividends: Equity capital
-
(2,350,000)
(2,350,000)


Total transactions with owners
-
(2,350,000)
(2,350,000)


At 31 December 2022
100
2,898,763
2,898,863


The notes on pages 13 to 24 form part of these financial statements.

Page 10

 
TNEI Services Limited
 

Statement of Cash Flows
For the year ended 31 December 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,676,462
1,362,246

Adjustments for:

Depreciation of tangible assets
66,567
73,866

Interest paid
109,939
83,838

Taxation charge
424,439
173,397

(Increase) in debtors
(1,074,065)
(219,169)

Decrease/(increase) in amounts owed by groups
106,021
(3,326,306)

Increase in creditors
597,109
429,122

Increase in amounts owed to groups
10,959
2,333,789

Corporation tax (paid)
(349,319)
(123,547)

Net cash generated from operating activities

1,568,112
787,236


Cash flows from investing activities

Purchase of tangible fixed assets
(44,669)
(60,851)

Sale of tangible fixed assets
-
858

Net cash from investing activities

(44,669)
(59,993)

Cash flows from financing activities

New secured loans
-
2,250,000

Repayment of loans
(931,152)
(327,612)

Dividends paid
-
(2,350,000)

Interest paid
(109,939)
(83,838)

Net cash used in financing activities
(1,041,091)
(511,450)

Net increase in cash and cash equivalents
482,352
215,793

Cash and cash equivalents at beginning of year
1,037,267
821,474

Cash and cash equivalents at the end of year
1,519,619
1,037,267


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,519,619
1,037,267

1,519,619
1,037,267


The notes on pages 13 to 24 form part of these financial statements.

Page 11

 
TNEI Services Limited
 

Analysis of Net Debt
For the year ended 31 December 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

1,037,267

482,352

1,519,619

Debt due after 1 year

(1,403,844)

809,051

(594,793)

Debt due within 1 year

(518,544)

122,101

(396,443)


(885,121)
1,413,504
528,383

The notes on pages 13 to 24 form part of these financial statements.

Page 12

 
TNEI Services Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

1.


General information

TNEI Services Limited is a private company limited by share capital incorporated in England and Wales. The address of the registered office and principal place of business is Bainbridge House, 86-90 London Road, Manchester, M1 2PW. The Company's registered number is 03891836.
The nature of the Company's operations and principal activity is that of specialist consultancy in the energy sector.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.3

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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

Page 13

 
TNEI Services Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

2.Accounting policies (continued)


2.3
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Short-term leasehold property
-
Straight line over the life of the asset
Plant and machinery
-
25%
Reducing balance
Office equipment
-
33%
Reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.5

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 14

 
TNEI Services Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.9

Debtors

Short-term debtors are measured at transaction price, less any impairment.

 
2.10

Creditors

Short-term creditors are measured at the transaction price.

 
2.11

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable.
Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. 
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an
Page 15

 
TNEI Services Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

2.Accounting policies (continued)


2.11
Financial instruments (continued)

enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.12

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that the actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on the amounts recognised in the financial statements.  
a) Recoverable value of trade debtors 
The company has recognised trade debtors with a carrying value of £2,091,874 (2021 £1,170,740). The recoverability of these balances is regularly reviewed in the light of the available economic information specific to each debtor and specific provisions are recognised for balances considered to be at risk or irrecoverable.
b) Amounts recoverable on long term contracts
The management of the company exercises judgement in estimating the completeness of projects and the expected recovery, in determining the valuation of amounts recoverable on long term contracts and deferred income.
c) Tangible fixed assets
The management of the company exercises judgement in estimating the useful life of property, plant and equipment. 

Page 16

 
TNEI Services Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Engineering projects
10,674,266
7,780,034


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
8,699,800
6,738,374

Rest of Europe
1,338,980
963,053

Rest of the world
635,486
78,607

10,674,266
7,780,034



5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of owned tangible fixed assets
66,567
73,866

Exchange differences
22,132
599

Other operating lease rentals
111,449
114,216

Defined contribution pension costs
328,299
184,490


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
21,570
20,350

Other services
2,750
-

Page 17

 
TNEI Services Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
4,773,314
3,632,253

Social security costs
436,938
352,100

Cost of defined contribution scheme
328,299
184,490

5,538,551
4,168,843


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Employees
92
72


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
293,033
219,264

Company contributions to defined contribution pension schemes
69,603
20,786

362,636
240,050


During the year retirement benefits were accruing to 3 directors (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £129,252 (2022 - £133,722).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £23,497 (2022 - £8,120).


9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
109,939
83,838

Page 18

 
TNEI Services Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
444,834
171,319


444,834
171,319


Total current tax
444,834
171,319

Deferred tax


Origination and reversal of timing differences
(20,395)
2,078

Total deferred tax
(20,395)
2,078


Taxation on profit on ordinary activities
424,439
173,397

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
2,100,901
1,535,643


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
525,225
291,772

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
494
8,049

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(72,631)
(124,630)

Other differences leading to an increase (decrease) in the tax charge
(28,607)
(1,763)

Group relief
(42)
(31)

Total tax charge for the year
424,439
173,397


Factors that may affect future tax charges

Corporation tax main rates have increased to 25% in the year from 1 April 2023 for companies where profits exceed £250,000. A tapered rate has been introduced for profits above £50,000 up to the £250,000 limit.

Page 19

 
TNEI Services Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

11.


Dividends

2023
2022
£
£


Dividends paid on equity capital
-
2,350,000


12.


Tangible fixed assets





Short-term leasehold property
Plant and machinery
Office equipment
Total

£
£
£
£



Cost or valuation


At 1 January 2023
252,489
255,021
968,677
1,476,187


Additions
-
-
44,669
44,669



At 31 December 2023

252,489
255,021
1,013,346
1,520,856



Depreciation


At 1 January 2023
223,096
226,270
893,058
1,342,424


Charge for the year
19,283
7,188
40,096
66,567



At 31 December 2023

242,379
233,458
933,154
1,408,991



Net book value



At 31 December 2023
10,110
21,563
80,192
111,865



At 31 December 2022
29,393
28,751
75,619
133,763

Page 20

 
TNEI Services Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

13.


Debtors

2023
2022
£
£


Trade debtors
2,091,874
1,170,740

Amounts owed by group undertakings
5,510,065
5,616,086

Other debtors
28,802
21,651

Prepayments and accrued income
145,281
149,137

Amounts recoverable on long-term contracts
1,173,953
1,024,317

Deferred taxation
20,621
226

8,970,596
7,982,157



14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,519,619
1,037,267



15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
396,443
518,544

Trade creditors
152,207
113,314

Amounts owed to group undertakings
2,360,959
2,350,000

Corporation tax
266,834
171,319

Other taxation and social security
598,622
427,241

Other creditors
3,649
2,140

Accruals and deferred income
1,653,248
1,267,922

5,431,962
4,850,480


Bank loans are secured against a fixed and floating charge over all assets.  The bank loans bear interest at a rate of 3.6% over base rate per annum and are repayable in monthly instalments over a period of 4 years. 

Page 21

 
TNEI Services Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

16.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loan
594,793
1,403,844


Bank loans are secured against a fixed and floating charge over all assets.  The bank loans bear interest at a rate of 3.6% over base rate per annum and are repayable in monthly instalments over a period of 4 years. 


17.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
396,443
518,544


396,443
518,544

Amounts falling due 1-2 years

Bank loans
594,793
558,521


594,793
558,521

Amounts falling due 2-5 years

Bank loans
-
845,323


-
845,323


991,236
1,922,388



18.


Deferred taxation




2023


£






At beginning of year
226


Charged to profit or loss
20,395



At end of year
20,621

Page 22

 
TNEI Services Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023
 
18.Deferred taxation (continued)

The deferred tax asset is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(6,953)
(5,486)

Other timing differences
27,574
5,712

20,621
226


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1.00 each
100
100



20.


Reserves

Profit and loss account
Profit and loss account - includes all current and prior period retained profits and losses.


21.


Pension commitments

The Company operates a defined contributions pension scheme.  The assets of the scheme are held separately from those of the Company in an independently administered fund.  The pension cost charge represents contributions payable by the Company to the fund and amounted to £328,299 (2022: £184,490). Contributions totalling £110,296 (2022: £30,061) were payable to the fund at the balance sheet date.


22.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
51,583
48,876

Later than 1 year and not later than 5 years
166,500
53,717

218,083
102,593

Page 23

 
TNEI Services Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

23.


Related party transactions

In preparing these financial statements, the directors have taken advantage of the exemption available under section 33 paragraph 1A of the Financial Reporting Standard 102, and have not disclosed transactions entered into between wholly owned group undertakings.


24.


Controlling party

The ultimate controlling party is The New Energy Group EOT.
The immediate parent company is The New Energy Holdings Limited, a company resgistered in England and Wales, company number 09905044.

 
Page 24