Company registration number 02514486 (England and Wales)
ENVEA UK LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ENVEA UK LTD
COMPANY INFORMATION
Directors
Mr S Kempenar
(Resigned on 17 April 2024)
Mr T M Sands
(Appointed 1 October 2022)
Mr C R Shelley
(Resigned on 12 December 2023)
Mr C P V Meyer
(Appointed 12 December 2023)
Company number
02514486
Registered office
Envea House Rose & Crown Road
Swavesey
Cambridge
CB24 4RB
Auditor
Constantin
25 Hosier Lane
London
EC1A 9LQ
ENVEA UK LTD
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10 - 11
Statement of changes in equity
12
Notes to the financial statements
13 - 27
ENVEA UK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

The principal activity of the company continues to be focused on developing, manufacturing, selling and servicing instruments for monitoring particulate and flue gas emissions from industrial processes.

Review of the business

The company is managed as part of an overall group of companies whose ultimate parent company is Envea Global SAS ("the Group"). The Directors report revenue for the period ended 31 December 2023 of £17,489,673 (2022: £12,760,000) and profit before tax of £1,447,366 (2022: £646,110).

 

On 30th June 2023, A1-CBISS Limited ceased trade and all trade and assets were transferred to Envea UK Limited at book value effective from 1st July 2023.

 

The financial statements have been prepared in accordance with Financial Reporting Standard 102 'Reduced Disclosure Framework' ("FRS 102").

 

The principal risks and uncertainties of the Company are integrated with the principal risks and uncertainties of the Group and are not managed separately.

 

The continued success of the Company is the ability to identify and manage effectively the risks to the business. Accordingly, in common with the Group generally, the Company has well-defined, rigorous policies and processes designed to identify, mitigate and control risk.

 

The primary risks that have the potential to adversely impact on our business over the next twelve months are considered to be as follows:

 

- Downturn/​instability in major markets: Adverse changes in the major markets in which the Company operates can have a significant impact on performance. The Company identifies key market drivers and monitors the trends and forecasts, as well as maintaining close relationships with key customers.

 

- Loss of key customers - the loss of one or more major customers can be a material risk. The nature of the Group's businesses is such that there is not a high level of dependence on any individual customer.

 

- Loss of key personnel - the Company is built upon a strong management team and the loss of key personnel can have an impact on the company. The company places high importance on developing and rewarding key employees to help in mitigating this risk.

Key performance indicators

The key performance indicators which the Directors use to monitor and manage performance of the Company are revenue, profit before tax and profit after tax, which are all disclosed and discussed in the business review above.

On behalf of the board

Mr CP V Meyer
Director
26 July 2024
ENVEA UK LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors
The directors who held office during the year and up to the date of the financial statements were as follows:
Mr S Kempenar
(Resigned on 17 April 2024)
Mr T M Sands
(Appointed 1 October 2022)
Mr C R Shelley
(Resigned on 12 December 2023)
Mr C P V Meyer
(Appointed 12 December 2023)
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr CP V Meyer
Director
26 July 2024
ENVEA UK LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

ENVEA UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ENVEA UK LTD
- 4 -
Opinion

We have audited the financial statements of ENVEA UK LTD (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements of ENVEA UK Limited (the 'company'):

 

 

We have audited the financial statements which comprise:

 

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).

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 Auditor's responsibilities for the audit of the financial statements section of our report.

 

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

ENVEA UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ENVEA UK LTD
- 5 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Auditor's 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 auditor's 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.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

 

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 considered the nature of the company's industry and its control environment, and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the directors about their own identification and assessment of the risks of irregularities, including those that are specific to the company's business sector.

ENVEA UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ENVEA UK LTD
- 6 -

We obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the key laws and regulations that:

 

We addressed these risks by performing the following procedures:

 

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

 

In addition to the above, our procedures to respond to the risks identified included the following:

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

 

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 and material misstatements in the strategic report or the directors' report.

 

Matters on which we are required to report by exception

 

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

 

We have nothing to report in respect of these matters.

ENVEA UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ENVEA UK LTD
- 7 -

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 an auditor's 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.

Mark Bathgate FCA
For and on behalf of Deloitte LLP
Statutory Auditor
25 Hosier Lane
London
EC1A 9LQ
Date
26/07/2024
2024-07-26
ENVEA UK LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
as restated
Notes
£
£
Turnover
3
17,489,674
12,760,001
Cost of sales
(8,706,438)
(6,348,763)
Gross profit
8,783,236
6,411,238
Distribution costs
(2,895,071)
(1,983,903)
Administrative expenses
(5,187,971)
(4,371,132)
Other operating income
1,071,458
564,138
Operating profit
5
1,771,652
620,341
Interest receivable and similar income
8
40,176
25,769
Interest payable and similar expenses
9
(392,462)
-
0
Profit before taxation
1,419,366
646,110
Tax on profit
10
(188,532)
(49,303)
Profit for the financial year
1,230,834
596,807

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ENVEA UK LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
as restated
£
£
Profit for the year
1,230,834
596,807
Other comprehensive income
-
-
Total comprehensive income for the year
1,230,834
596,807
ENVEA UK LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
11
1,017,667
396,000
Other intangible assets
11
21
5,841
Total intangible assets
1,017,688
401,841
Tangible assets
12
1,157,653
1,061,033
Investments
13
10,706,100
-
0
12,881,441
1,462,874
Current assets
Stocks
16
6,409,976
2,303,567
Debtors
17
6,228,704
5,350,789
Cash at bank and in hand
934,991
2,406,882
13,573,671
10,061,238
Creditors: amounts falling due within one year
18
(17,064,607)
(3,312,810)
Net current (liabilities)/assets
(3,490,936)
6,748,428
Total assets less current liabilities
9,390,505
8,211,302
Provisions for liabilities
Deferred tax liability
19
25,700
77,331
(25,700)
(77,331)
Net assets
9,364,805
8,133,971
Capital and reserves
Called up share capital
21
46,167
46,167
Share premium account
221,448
221,448
Capital redemption reserve
15,934
15,934
Other reserves
272,204
272,204
Profit and loss reserves
8,809,052
7,578,218
Total equity
9,364,805
8,133,971

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

ENVEA UK LTD
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 26 July 2024 and are signed on its behalf by:
Mr  CP V Meyer
Director
Company registration number 02514486 (England and Wales)
ENVEA UK LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
46,167
221,448
15,934
272,204
6,981,411
7,537,164
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
-
596,807
596,807
Balance at 31 December 2022
46,167
221,448
15,934
272,204
7,578,218
8,133,971
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
-
1,230,834
1,230,834
Balance at 31 December 2023
46,167
221,448
15,934
272,204
8,809,052
9,364,805
ENVEA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

ENVEA UK LTD is a private company limited by shares incorporated in England and Wales. The registered office is Envea House Rose & Crown Road, Swavesey, Cambridge, CB24 4RB.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Environment S.A as at 31 December 2023. These consolidated financial statements are available from its registered office, 111 Bd Robespierre, 78300 Poissy, France.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

ENVEA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Other operating income is recognised in the period in which the costs to perform the work in order to generate the fees are incurred. Income is measured at the fair value of the consideration received to receivable for the services rendered, net of discounts and Value Added Tax.

1.4
Research and development expenditure

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the assets will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.

 

It is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its useful economic life.

 

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Research and development costs
25% straight line
1.7
Tangible fixed assets

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

ENVEA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

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

Plant and equipment
20 -25% straight line
Fixtures and fittings
20 - 30% straight line
Computers
33% straight line
Motor vehicles
20% straight line
Instrumentation
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.8
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

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

ENVEA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

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

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

1.11
Cash and cash equivalents

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

1.12
Taxation

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

Current tax

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

Deferred tax

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

 

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

ENVEA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.13
Employee benefits

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

 

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

 

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

1.14
Retirement benefits

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

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

 

The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).

 

Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.

 

Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

1.15
Leases

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

1.16
Foreign exchange

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

 

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

ENVEA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales
10,894,330
10,198,694
Service sales
4,451,617
1,553,071
Parts sales
2,143,727
1,008,236
17,489,674
12,760,001
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
8,486,518
3,160,039
Rest of Europe
3,279,988
3,371,378
Rest of the world
5,723,168
6,228,584
17,489,674
12,760,001
2023
2022
£
£
Other revenue
Interest income
40,176
25,769
4
Other operating Income
2023
2022
£
£
Technology fee
500,000
500,000
RDEC tax credit
240,140
64,138
740,140
564,138
ENVEA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
5
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(84,338)
131,721
Research and development costs
103,652
89,606
Fees payable to the company's auditor for the audit of the company's financial statements
83,000
36,750
Depreciation of owned tangible fixed assets
270,829
242,174
Amortisation of intangible assets
71,820
72,313
Operating lease charges
203,755
138,632
6
Employees

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

2023
2022
Number
Number
Production staff
79
55
Administrative staff
22
16
Management staff
11
8
Total
112
79

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
5,028,184
3,739,998
Social security costs
549,705
421,103
Pension costs
248,952
183,379
5,826,841
4,344,480
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
576,839
196,709
Company pension contributions to defined contribution schemes
26,855
12,270
603,694
208,979
ENVEA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Directors' remuneration
(Continued)
- 20 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
332,281
196,709

Mr. T. Sands received remuneration during the year which was fully recharged to Envea France, hence does not affect the financial statements for Envea UK Limited.

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
12,658
3,269
Interest receivable from group companies
27,518
22,500
Total income
40,176
25,769
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
15,108
-
Interest payable to group undertakings
377,354
-
0
392,462
-
0
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
240,163
80,744
Deferred tax
Origination and reversal of timing differences
(51,631)
(31,441)
Total tax charge
188,532
49,303
ENVEA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 21 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,419,366
646,110
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
333,835
122,761
Tax effect of expenses that are not deductible in determining taxable profit
25,142
1,113
Gains not taxable
-
0
15,700
Adjustments in respect of prior years
-
0
11,223
Effect of change in corporation tax rate
(3,054)
-
0
Research and development tax credit
-
0
(92,440)
Other permanent differences
(434)
684
Effect of overseas tax rates
-
0
(2,884)
Under/(over) provided in prior years
-
0
(6,854)
Patent box deduction
(166,957)
-
0
Taxation charge for the year
188,532
49,303

Finance Act 2021, which was substantively enacted on 24 May 2021, has enacted an increase in the UK corporation tax main rate to 25% from 1 April 2023.

 

As this rate change had been substantively enacted before the balance sheet date, the closing deferred tax assets and liabilities have been calculated at 25%, on the basis that this is the rate at which those assets and liabilities are expected to unwind.

ENVEA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
11
Intangible fixed assets
Goodwill
Research and development costs
Total
£
£
£
Cost
At 1 January 2023
660,000
26,423
686,423
Additions
687,667
-
0
687,667
At 31 December 2023
1,347,667
26,423
1,374,090
Amortisation and impairment
At 1 January 2023
264,000
20,582
284,582
Amortisation charged for the year
66,000
5,820
71,820
At 31 December 2023
330,000
26,402
356,402
Carrying amount
At 31 December 2023
1,017,667
21
1,017,688
At 31 December 2022
396,000
5,841
401,841
12
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Instrumentation
Total
£
£
£
£
£
£
Cost
At 1 January 2023
89,107
1,357,593
355,086
-
0
31,497
1,833,283
Additions
5,437
143,193
82,886
-
0
17,480
248,996
Disposals
-
0
(60,566)
-
0
-
0
-
0
(60,566)
Transfers
53,982
98,846
22,868
3,323
-
0
179,019
At 31 December 2023
148,526
1,539,066
460,840
3,323
48,977
2,200,732
Depreciation and impairment
At 1 January 2023
58,281
414,875
286,591
-
0
12,503
772,250
Depreciation charged in the year
31,684
173,984
54,697
2,099
8,365
270,829
At 31 December 2023
89,965
588,859
341,288
2,099
20,868
1,043,079
Carrying amount
At 31 December 2023
58,561
950,207
119,552
1,224
28,109
1,157,653
At 31 December 2022
30,826
942,718
68,495
-
0
18,994
1,061,033
ENVEA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
13
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
14
10,382,100
-
0
Unlisted investments
324,000
-
0
10,706,100
-
0
Movements in fixed asset investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
-
-
-
Additions
10,382,100
324,000
10,706,100
At 31 December 2023
10,382,100
324,000
10,706,100
Carrying amount
At 31 December 2023
10,382,100
324,000
10,706,100
At 31 December 2022
-
-
-
14
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Hycontrol Limited
United Kingdom
A
100.00
15
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
324,000
-
ENVEA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
16
Stocks
2023
2022
£
£
Raw materials and consumables
3,671,214
2,216,988
Work in progress
2,353,240
57,265
Finished goods and goods for resale
385,522
29,314
6,409,976
2,303,567
17
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,266,950
2,496,282
Amounts owed by group undertakings
2,359,571
2,291,665
Other debtors
256,565
356,560
Prepayments and accrued income
345,618
206,282
6,228,704
5,350,789

Included within Amounts owed by group undertakings are trading balances that are interest free.

 

18
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
950,820
511,697
Amounts owed to group undertakings
11,553,182
705,425
Corporation tax
215,226
16,762
Other taxation and social security
166,837
-
0
Other creditors
2,047,099
362,918
Accruals and deferred income
2,131,443
1,716,008
17,064,607
3,312,810

Amounts owed to group undertakings are interest free and payable on demand.

ENVEA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
121,510
141,502
Tax losses
(53,104)
-
Retirement benefit obligations
(12,184)
-
Other short term timing differences
(30,522)
(64,171)
25,700
77,331
2023
Movements in the year:
£
Liability at 1 January 2023
77,331
Credit to profit or loss
(51,631)
Liability at 31 December 2023
25,700

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
248,952
183,379

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1.00 each of £1 each
34,083
34,083
34,083
34,083
Ordinary B shares of £1.00 each of £1 each
12,054
12,054
12,054
12,054
Ordinary C shares of £1.00 each of £1 each
30
30
30
30
46,167
46,167
46,167
46,167
ENVEA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
22
Operating lease commitments
Lessee

On 11 June 2019, the company entered into a lease for new office space located at Envea House, Rose and Crown Road, Swavesey, CB24 4RB. The rent commencement date is 2 March 2020, where £175,000 is due per annum until 1 July 2029.

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

2023
2022
£
£
Within one year
175,000
175,000
Between two and five years
700,000
700,000
In over five years
78,333
253,333
953,333
1,128,333
23
Events after the reporting date

At the date of this report, events after the closing date of the financial year are not likely to significantly change the substance of the financial statements. Business continuity is not called into question for the company.

24
Controlling party

The company is a wholly owned subsidiary of Envea S.A.S. It is included in the consolidated financial statement of Envea S.A.S which are publicly available. Therefore, the company is exempt, by virtue of section 400 of Companies Act 2006, from the requirement to prepare consolidated financial statement. The address of the ultimate parent's registered office is 111 bd, Robespierre 78300 Poissy, France.

25
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Dec 2022
£
£
£
Net assets
8,133,971
-
8,133,971
Capital and reserves
Total equity
8,133,971
-
8,133,971
ENVEA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
25
Prior period adjustment
(Continued)
- 27 -
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 December 2022
£
£
£
Profit for the financial period
596,807
-
596,807
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