Company registration number 04650969 (England and Wales)
EVOL (WALES) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
EVOL (WALES) LIMITED
COMPANY INFORMATION
Directors
Mr I Cummings
Mrs J Cummings
Secretary
Mrs J Cummings
Company number
04650969
Registered office
Sunnybank
Church Road
St Brides, Wentlooge
Newport
South Wales
NP10 8SQ
Auditor
UHY Hacker Young
Bradbury House
Mission Court
Newport
Gwent
United Kingdom
NP20 2DW
EVOL (WALES) LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 33
EVOL (WALES) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 November 2023.

Review of Business

The company continued to provide consultancy services and manage its portfolio of company and property investments whilst seeking to support new ventures. In particular, the company has continued to support and provide consultancy services to both Whitehead Building Services Limited and Tiny Rebel Limited.

Tiny Rebel Limited continues to flourish within its sector with the board confident that their market place consolidation will put the company on a sound platform for future growth.

The group's principal subsidiary, Whitehead Building Services Limited (WBS hereafter) has had another successful year and has achieved growth in key strategic areas in the South West, whilst consolidating its offering in south Wales. The company now has offices in Newport, Bristol, Exeter and Cornwall and is targeting growth in each location. The company has worked hard to maintain and build relationships and as a result the order book is extremely healthy going forward. WBS has diversified its offering over recent years and as well as expanding the geographic range, Whitehead work outside of our core geographic area in order to support strategic clients.

 

WBS's business performance has been achieved by focusing on their commitment to provide an exceptional customer experience, carefully selecting projects, and utilising their proven and accredited End 2 End business process QMS ISO 9001:2015. This has led to repeat business exceeding 70% of their revenue. WBS work hard to maintain mutually beneficial business relationships by focusing on their professionalism, expertise, and teamwork to deliver excellence through empowering people and embracing technology and creating a positive and lasting impact on the environment and our communities.

The Directors have continued to monitor the business performance against its high-level objectives and are pleased to report a successful outcome. Turnover has increased in line with their planned growth strategy and the Directors are pleased with the financial performance. The Directors continue to have a 5 year plan which targets sustained profitable growth and also includes continued development of our workforce via our apprenticeship programme and continued professional development, improving customer satisfaction though our tailored quality management system and providing safe operations through our “Work Safe – Home Safe” programme. As part of the Continuing Professional Development of their employees they have continued their partnership with Cardiff University Business School who are providing a leadership training course for their Senior Leadership Team. It is pleasing to note that work carried out on this programme is coming to fruition.

Key performance indicators

The Board regards the key measures of operating effectiveness to be sales growth, margins and overheads as a proportion of activity. However, the performance of individual contracts is also regarded as a key indicator of performance. Each contract is assessed individually with a number of large contracts per year. The WBS board is satisfied with the contract performance in the year with no real issues noted. The contracts largely ran to budget and on time which means that the company hit its targets and the customers were generally delighted.

 

Group turnover has increased by 45%% on the prior year, from £31.3m to £45.4m. However, the gross profit margin has decreased from 11.1% to 8.5%, Operating profit has also decreased from 2.2% to 1.5%.

 

Principal risks and uncertainties

The group's activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. The use of financial instruments is monitored by the board of directors; the group does not use financial instruments for speculative purposes. The group's principal financial instruments comprise bank balances, trade creditors, trade debtors and loans to the group.

 

Cash flow risk

The group has no interest-bearing assets and few interest-bearing liabilities which minimises the uncertainty of cash flows.

EVOL (WALES) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -

Principal risks and uncertainties (continued)

Credit risk

The group's principal financial assets are bank balances and cash, trade and other receivables. The group's credit risk is primarily attributable to its trade and other receivables. The group manages credit risk in respect of trade debtors by regularly monitoring credit limits and balances outstanding and the close monitoring of customer credit reports . The group has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers with a healthy balance of long-term and short-term contracts. The credit risk on liquid funds and financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

 

Liquidity risk

The group manages the liquidity risk by monitoring working capital and ensuring there are sufficient funds to meet payments.

 

Supply Chain Risk

WBS and TR have a unique relationship with our supply chain where we work together in Partnership to ensure that our needs can be met and managed. WBS and TR work with their supply chain to provide effective solutions to the most challenging projects and they have processes for the selection of suppliers in which they assess their suitability to be part of their supply chain.

 

Skills Shortages

Our group ethos is of employment rather than transient sub-contract or agency labour, which provides the companies with protection against skills shortages in an upturn in market conditions. Our workforce is expanding year on year with a mixture of new skilled tradesmen and a throughput from our continued and valued apprentice training scheme.

 

Brexit

The Directors are aware of the potential risks which Brexit presents and have worked closely with our supply-chain to ensure continuity of supply of goods following the UK’s departure from the EU. The Directors will seek to mitigate any other risks to the business, whilst maximising any opportunities that may arise.

 

Inflation

The group is aware of the risk of rising inflation to the UK economy. Where possible, any inflationary risks to the costs of our products and services are identified and managed collaboratively with our clients and supply chain.

 

Health and Safety

The health and safety of our employees, supply chain, customers and the public remain our number one priority. The business prides itself on its excellent record and upholds its commitment of “Work Safe – Home Safe.” It is accepted by every member of our team and supply chain that safety is also their personal responsibility. Our in-house qualified Health, Safety, Environmental, and Quality team oversees and undertakes audits to ensure that our ISO standards are adhered to.

 

Environmental

All Whitehead employees are encouraged to assist the company in its aim to reduce our environmental impact.

 

We encourage our workers to respect the environment in which they work and to reduce waste, share transport and reduce our environmental impact wherever possible. As engineers we endeavour to incorporate green and energy efficient products in our design and in the materials that we use. The Business has achieved accreditation with ISO14001 during 2022. The business has produced a carbon reduction plan in line with the UK Government’s procurement policy note PPNO6/21.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EVOL (WALES) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -
CSR Policy and Charitable activities

The group has a coordinated and managed approach towards its social responsibilities. The businesses have supported a number of local charities through sponsored events including walks, cycling and rowing. Whitehead organises two regional annual golf days and has raised a substantial amount of money for various local charities.

The company is also the lead sponsor and organiser of the Whitehead Tour de Gwent cycling event which raises in excess of £50,000 per annum in aid of local charity St. David’s Hospice. The group also encourages its employees to act as volunteers at charitable events. The business has embarked on an initiative to install defibrillators in the local communities in which we work.

 

Tiny Rebel supports the local and the wider communities with its financial commitment to their community fund contributing £40,301 with EVOL (Wales) contribution being £30,977 in CSR and charitable donations.

Tiny Rebel has continued this community spirit within the company under the headings of “Our Planet, Our Community, Our People”

All businesses regularly collects supplies and equipment to donate to homeless charities as well other initiatives such as donating easter eggs to a local children’s hospital and their support during Christmas by serving up hundreds of christmas dinners with distribution helped by the local charity HCT.

Whitehead contributed a total of £43,665 in CSR and charitable donations during the year.

 

Health & Wellbeing

The group encourages its employees to lead an active life and maintain good health, and also promotes a healthy work / life balance. The group continues to operate a Mental Health Policy. This includes Mental Health Awareness Training for all employees, Mental Health First Aiders and Mental Health Champions, all as part of our strategy to raise awareness and maintain the health and wellbeing of our employees.

Future Outlook

The forward order book for WBS is extremely healthy with over £100m of secured orders.

 

The Directors are happy to announce that our direct end-user and maintenance division has made significant progress and has met targets which were set for this area of the business and is now ready for growth. This year has seen a number of longer-term agreements cemented to provide maintenance for a diverse range of clients including local authorities, Education, Rail, Care, Health and Manufacturing.

 

As part of the Government's aim to reduce the country's carbon impact and drive towards renewable clean energy, we are ideally equipped to support these aims. In recent years we have seen many of our projects benefit from new technologies. We are pleased to have secured a place on the UK Electric Vehicle Charging Framework which we see as an area for growth in the coming years.

 

People and Processes

The group considers that its employees are its biggest asset and staff retention is very strong within the business. The group’s long trading history and its reputation coupled with its project portfolio and client base allows it to attract new talent. The working environment we have created means that our employees meet fresh exciting challenges and experience the satisfaction of a job well done. Ours is an environment that is flexible to change and open to innovation. At Whitehead Building Services Limited every employee contributes to value added performance. The group has invested in Continuing Professional Development training for its staff throughout all areas of the business and the company places great emphasis on developing young talent and has a very good record recruiting and training apprentices.

 

We are proud of our long standing apprenticeship programme which provides the business with skilled operatives who have adopted out culture and working practices. We are proud members of the "5% Club" and have achieved Gold Accreditation. We have also been awarded "Employer Commitment to Training" by JTL, the training body for electrical apprentices, for our contribution within our industry to training, the support offered to our apprentices and for our approach to mental health awareness, training and support.

 

The group continually monitors its business systems and processes and strives for continual improvement. The business undertakes an annual review of its accredited Quality Management System that is certified to ISO 9001:2015. The group will continue to involve all staff in its continual improvement process concentrating on exceptional customer experience, quality, health, safety, environmental, innovation and best practice.

EVOL (WALES) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -

Research & Development

The group has invested in Research & Development in recent years to tackle technical problems in an innovative way. The nature of the construction industry constantly provides new challenges and the business has invested in people and software to enable us to innovate and meet the challenges of each new job.

On behalf of the board

Mr I Cummings
Director
28 August 2024
EVOL (WALES) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 5 -

The directors present their annual report and financial statements for the year ended 30 November 2023.

Principal activities

The principal activity of the group in the year under review was that of the provision of consultancy services and building services. The core business of the principal subsidiary Whitehead Building Services Limited is the design, supply, installation and commissioning of mechanical and electrical systems and facilities and maintenance.

Results and dividends

The results for the year are set out on page 10.

 

A fair review of the business is set out on the strategic report on page 1.

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

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr I Cummings
Mrs J Cummings
Auditor

UHY Hacker Young have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditor in the absence of an Annual General Meeting.

Energy and carbon report

None of the group companies meet the requirements for Energy and carbon reporting.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr I Cummings
Director
28 August 2024
EVOL (WALES) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 6 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

EVOL (WALES) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EVOL (WALES) LIMITED
- 7 -
Opinion

We have audited the financial statements of Evol (Wales) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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:

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 group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The 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.

Opinions on other matters prescribed by the Companies Act 2006

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

EVOL (WALES) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EVOL (WALES) LIMITED
- 8 -
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 their 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:

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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.

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.

Our approach to identifying and assessing the risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the group and parent company's financial statements to material misstatements, including obtaining an understanding of how fraud might occur, by:

EVOL (WALES) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EVOL (WALES) LIMITED
- 9 -

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

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from the financial statements, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

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.

Mr Paul Byett (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
28 August 2024
Chartered Accountants
Statutory Auditor
Newport
Gwent
United Kingdom
EVOL (WALES) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 10 -
2023
2022
as restated
Notes
£
£
Turnover
3
45,425,286
31,348,981
Cost of sales
(41,549,070)
(27,872,379)
Gross profit
3,876,216
3,476,602
Administrative expenses
(3,224,947)
(2,810,532)
Other operating income
3,945
19,397
Operating profit
4
655,214
685,467
Share of results of associates and joint ventures
16
55,665
(36,340)
Interest receivable and similar income
8
158,095
11,692
Interest payable and similar expenses
9
-
0
(18,338)
Movement in FV of investment properties
12
135,000
(46,000)
Profit before taxation
1,003,974
596,481
Tax on profit
10
(3,159)
(19,196)
Profit for the financial year
1,000,815
577,285
Profit for the financial year is attributable to:
- Owners of the parent company
834,251
500,527
- Non-controlling interests
166,564
76,758
1,000,815
577,285

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

EVOL (WALES) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 11 -
2023
2022
as restated
£
£
Profit for the year
1,000,815
577,285
Other comprehensive income
-
-
Total comprehensive income for the year
1,000,815
577,285
Total comprehensive income for the year is attributable to:
- Owners of the parent company
834,251
500,527
- Non-controlling interests
166,564
76,758
1,000,815
577,285
EVOL (WALES) LIMITED
GROUP BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 12 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
13
151,487
197,236
Tangible assets
14
274,477
200,804
Investment property
15
2,039,444
1,784,591
Investments
16
2,843,372
2,787,707
5,308,780
4,970,338
Current assets
Stocks
19
479,619
449,566
Debtors
20
9,296,443
8,782,116
Cash at bank and in hand
6,006,969
5,088,351
15,783,031
14,320,033
Creditors: amounts falling due within one year
21
(12,163,383)
(11,365,287)
Net current assets
3,619,648
2,954,746
Total assets less current liabilities
8,928,428
7,925,084
Provisions for liabilities
Deferred tax liability
22
17,996
15,467
(17,996)
(15,467)
Net assets
8,910,432
7,909,617
Capital and reserves
Called up share capital
24
400,300
400,300
Revaluation reserve
374,890
374,890
Profit and loss reserves
7,236,828
6,402,577
Equity attributable to owners of the parent company
8,012,018
7,177,767
Non-controlling interests
898,414
731,850
8,910,432
7,909,617
The financial statements were approved by the board of directors and authorised for issue on 28 August 2024 and are signed on its behalf by:
28 August 2024
Mr I Cummings
Director
Company registration number 04650969 (England and Wales)
EVOL (WALES) LIMITED
COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
185,877
129,616
Investment property
15
2,039,444
1,784,591
Investments
16
4,367,895
4,367,895
6,593,216
6,282,102
Current assets
Debtors
20
342,906
186,636
Cash at bank and in hand
28,357
264,438
371,263
451,074
Creditors: amounts falling due within one year
21
(4,758,164)
(4,611,610)
Net current liabilities
(4,386,901)
(4,160,536)
Total assets less current liabilities
2,206,315
2,121,566
Provisions for liabilities
Deferred tax liability
22
1,805
3,384
(1,805)
(3,384)
Net assets
2,204,510
2,118,182
Capital and reserves
Called up share capital
24
400,000
400,000
Revaluation reserve
374,890
374,890
Profit and loss reserves
1,429,620
1,343,292
Total equity
2,204,510
2,118,182

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £86,328 (2022 - £319,296 profit).

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

The financial statements were approved by the board of directors and authorised for issue on 28 August 2024 and are signed on its behalf by:
28 August 2024
Mr I Cummings
Director
Company registration number 04650969 (England and Wales)
EVOL (WALES) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 14 -
Share capital
Revaluation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
As restated for the period ended 30 November 2022:
Balance at 1 December 2021
400,300
374,890
6,797,373
7,572,563
-
7,572,563
Restatement of non-controlling interest
30
-
-
(655,092)
(655,092)
655,092
-
As restated
400,300
374,890
6,142,281
6,917,471
655,092
7,572,563
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
-
500,527
500,527
76,758
577,285
Dividends
11
-
-
(240,231)
(240,231)
-
(240,231)
Balance at 30 November 2022
400,300
374,890
6,402,577
7,177,767
731,850
7,909,617
Year ended 30 November 2023:
Profit and total comprehensive income for the year
-
-
834,251
834,251
166,564
1,000,815
Balance at 30 November 2023
400,300
374,890
7,236,828
8,012,018
898,414
8,910,432
EVOL (WALES) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 15 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 30 November 2022:
Balance at 1 December 2021
400,000
374,890
1,264,227
2,039,117
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
-
319,296
319,296
Dividends
11
-
-
(240,231)
(240,231)
Balance at 30 November 2022
400,000
374,890
1,343,292
2,118,182
Year ended 30 November 2023:
Profit and total comprehensive income
-
-
86,328
86,328
Balance at 30 November 2023
400,000
374,890
1,429,620
2,204,510
EVOL (WALES) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 16 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,042,360
1,167,016
Interest paid
-
0
(18,338)
Income taxes (paid)/refunded
(29,080)
188,735
Net cash inflow from operating activities
1,013,280
1,337,413
Investing activities
Purchase of tangible fixed assets
(132,904)
(25,333)
Purchase of investment property
(119,853)
(63,661)
Interest received
158,095
11,692
Net cash used in investing activities
(94,662)
(77,302)
Financing activities
Repayment of bank loans
-
(532,201)
Dividends paid to equity shareholders
-
(240,231)
Net cash used in financing activities
-
(772,432)
Net increase in cash and cash equivalents
918,618
487,679
Cash and cash equivalents at beginning of year
5,088,351
4,600,672
Cash and cash equivalents at end of year
6,006,969
5,088,351
EVOL (WALES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 17 -
1
Accounting policies
Company information

Evol (Wales) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Evol (Wales) Limited and all of its subsidiaries.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Evol (Wales) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 November 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

EVOL (WALES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.4
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.

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.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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 expected life, which the directors have estimated to be 20 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
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.

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:

Freehold land and buildings
2% on cost
Plant and equipment
20% on cost
Fixtures and fittings
20% on cost
Computers
20% on cost
Motor vehicles
25% on cost

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 recognised in the profit and loss account.

1.7
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

EVOL (WALES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.8
Fixed asset investments

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. 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 group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

1.9
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.

1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

 

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

1.11
Taxation

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

EVOL (WALES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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 group’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 if, and only if, there is 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.

1.12
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.

1.13
Retirement benefits

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

1.14
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 leased asset are consumed.

1.15
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

EVOL (WALES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 21 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Revenue Recognition

As noted in 1.4 above, revenue from contracts is recognised by reference to the stage of completion, this inevitably involves the directors making estimates about the total anticipated costs of contracts and the future costs; these estimates can have a significant effect on revenue recognition and profit.

Investment in associate undertakings

The investment in associate undertakings includes £504,281 of goodwill; the directors have determined that the useful economic life of this goodwill is 10 years. This clearly involves the use of significant judgement.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Revaluation of investment properties and freehold properties

The group carries investment properties and freehold properties at fair value. Changes in the fair value of investment properties are recognised in profit or loss; changes in the value of freehold properties are recognised in other comprehensive income. The valuations have been carried out by the directors based on comparable market data provided by independent valuation specialists valuing similar assets owned by related parties. The key factors affecting the values are the anticipated yields and anticipated occupancy rates.

EVOL (WALES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
Impairment of goodwill

The Group considers whether goodwill is impaired. Where an indication of impairment is identified the estimation of recoverable value requires estimation of the recoverable value of the cash generating units (CGUs). This requires estimation of the future cash flows from the CGUs and also selection of appropriate discount rates in order to calculate the net present value of those cash flows.

Recoverability of retention balances

Management regularly reviews retention balances and makes provision for balances that it believes will not be recovered. The assessment of retention recovery requires management's best estimate based on knowledge of the underlying contracts and past history of recovery.

Recoverability of related party balances

At the year end the group owed £118,388 (2022: £118,388) to Tiny Rebel Limited ("Tiny Rebel"). Management regularly assesses the performance of Tiny Rebel and the recoverability of amounts advanced. This assessment requires management to make judgements based on their knowledge of the performance and future prospect of Tiny Rebel.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Consultancy services
142,756
333,357
Revenue from contracts
45,282,530
31,015,624
45,425,286
31,348,981
2023
2022
£
£
Other revenue
Interest income
158,095
11,692
Grants received
3,945
19,174

Grants received includes £3,945 (2022: £19,174) worth of grants relating to the employment of young people and apprentices.

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(3,945)
(19,174)
Depreciation of owned tangible fixed assets
59,231
49,634
Amortisation of intangible assets
45,749
45,749
Operating lease charges
83,762
78,274
EVOL (WALES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 23 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
6,000
5,000
Audit of the financial statements of the company's subsidiaries
13,000
10,750
19,000
15,750
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management
7
7
1
1
Office staff
55
53
2
2
Labour
137
128
-
-
Total
199
188
3
3

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
8,658,241
8,007,852
94,691
83,225
Social security costs
5,476
5,403
5,476
5,403
Pension costs
229,430
206,937
6,998
5,422
8,893,147
8,220,192
107,165
94,050
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
48,000
48,000
EVOL (WALES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 24 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
158,095
11,692
9
Interest payable and similar expenses
2023
2022
£
£
Other interest on financial liabilities
-
18,338
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
141,297
166,217
Adjustments in respect of prior periods
(140,667)
(146,748)
Total current tax
630
19,469
Deferred tax
Origination and reversal of timing differences
2,529
(273)
Total tax charge
3,159
19,196

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
1,003,974
596,481
Expected tax charge based on the standard rate of corporation tax in the UK of 23.01% (2022: 19.00%)
231,024
113,331
Tax effect of expenses that are not deductible in determining taxable profit
27,237
22,851
Tax effect of income not taxable in determining taxable profit
(43,874)
18,260
Tax effect of utilisation of tax losses not previously recognised
(84,783)
-
0
Unutilised tax losses carried forward
4,275
-
0
Adjustments in respect of prior years
(140,667)
(146,748)
Effect of change in corporation tax rate
-
(1,330)
Permanent capital allowances in excess of depreciation
9,947
12,832
Taxation charge
3,159
19,196
EVOL (WALES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 25 -
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
-
240,231
12
Movement in FV of investment properties
2023
2022
£
£
Changes in the fair value of investment properties (see note 15)
135,000
(46,000)
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 December 2022 and 30 November 2023
914,985
Amortisation and impairment
At 1 December 2022
717,749
Amortisation charged for the year
45,749
At 30 November 2023
763,498
Carrying amount
At 30 November 2023
151,487
At 30 November 2022
197,236
The company had no intangible fixed assets at 30 November 2023 or 30 November 2022.
EVOL (WALES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 26 -
14
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 December 2022
104,120
6,432
408,817
389,119
1,500
909,988
Additions
-
0
242
1,386
62,326
68,950
132,904
At 30 November 2023
104,120
6,674
410,203
451,445
70,450
1,042,892
Depreciation and impairment
At 1 December 2022
-
0
3,318
371,333
334,299
234
709,184
Depreciation charged in the year
-
0
1,118
15,973
30,273
11,867
59,231
At 30 November 2023
-
0
4,436
387,306
364,572
12,101
768,415
Carrying amount
At 30 November 2023
104,120
2,238
22,897
86,873
58,349
274,477
At 30 November 2022
104,120
3,114
37,484
54,820
1,266
200,804
Company
Freehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 December 2022
104,120
30,500
194,257
1,500
330,377
Additions
-
0
-
0
6,799
68,950
75,749
At 30 November 2023
104,120
30,500
201,056
70,450
406,126
Depreciation and impairment
At 1 December 2022
-
0
7,950
192,577
234
200,761
Depreciation charged in the year
-
0
6,100
1,521
11,867
19,488
At 30 November 2023
-
0
14,050
194,098
12,101
220,249
Carrying amount
At 30 November 2023
104,120
16,450
6,958
58,349
185,877
At 30 November 2022
104,120
22,550
1,680
1,266
129,616
EVOL (WALES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
14
Tangible fixed assets
(Continued)
- 27 -

Group

 

Included within the above Freehold land and buildings balance is land totalling £429,120 (2021: £429,120) which is not depreciated.

 

Company

 

Included within the above Land and buildings Freehold balance is land totalling £104,120 (2021: £104,120) which is not depreciated.

15
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 December 2022
1,784,591
1,784,591
Additions through external acquisition
119,853
119,853
Net gains or losses through fair value adjustments
135,000
135,000
At 30 November 2023
2,039,444
2,039,444

The directors have reviewed the value of investment properties as at 30 November 2023 and as a result the carrying values have been decreased to the directors' best estimate of the open market value.

 

16
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
18
-
0
-
0
1,982,101
1,982,101
Investments in associates
17
2,843,372
2,787,707
2,385,794
2,385,794
2,843,372
2,787,707
4,367,895
4,367,895
EVOL (WALES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
16
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Group
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 December 2022
2,787,707
Share of profits
106,093
Less: amortisation of goodwill
(50,428)
At 30 November 2023
2,843,372
Carrying amount
At 30 November 2023
2,843,372
At 30 November 2022
2,787,707
Movements in fixed asset investments
Company
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 December 2022 and 30 November 2023
4,367,895
Carrying amount
At 30 November 2023
4,367,895
At 30 November 2022
4,367,895
17
Associates

Details of associates at 30 November 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Tiny Rebel Limited
Sunnybank, St Brides, Wentlooge, Newport, NP10 8SQ
Ordinary
35
18
Subsidiaries

Details of the company's subsidiaries at 30 November 2023 are as follows:

EVOL (WALES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
18
Subsidiaries
(Continued)
- 29 -
Name of undertaking
Class of
% Held
shares held
Direct
Whitehead Building Services (Bristol) Limited
Ordinary
100.00
Whitehead Building Services (Swansea) Limited
Ordinary
100.00
Whitehead Building Services Limited
Ordinary
79.00

The registered office for all subsidiaries listed above is Lanyon House, Mission Court, Newport, Gwent, NP20 2DW.

19
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
459,619
429,566
-
-
Stocks
20,000
20,000
-
0
-
0
479,619
449,566
-
-
20
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,064,082
2,290,387
101,879
101,880
Gross amounts owed by contract customers
4,872,535
5,684,135
-
0
-
0
Corporation tax recoverable
3,530
-
0
3,530
-
0
Other debtors
840,444
489,000
74,460
84,756
Prepayments and accrued income
515,852
318,594
163,037
-
0
9,296,443
8,782,116
342,906
186,636

Included within trade debtors are amounts relating to retentions that are due for payment after one year of £1,047,654 (2022: £790,264). These retentions are normal commercial arrangements for this industry.

EVOL (WALES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 30 -
21
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Payments received on account
1,998,868
1,766,959
-
0
-
0
Trade creditors
6,664,076
7,414,061
-
0
-
0
Amounts owed to group undertakings
-
0
118,388
3,786,738
3,741,738
Corporation tax payable
141,297
166,217
-
0
29,080
Other taxation and social security
330,819
244,431
34,114
48,249
Other creditors
990,589
891,179
931,312
786,543
Accruals and deferred income
2,037,734
764,052
6,000
6,000
12,163,383
11,365,287
4,758,164
4,611,610

Included within trade creditors are amounts related to retentions that are due for payment after one year of £691,382 (2022: £556,085). These retentions are normal commercial arrangements for this industry.

22
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
17,996
15,467
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
1,805
3,384
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 December 2022
15,467
3,384
Charge/(credit) to profit or loss
2,529
(1,579)
Liability at 30 November 2023
17,996
1,805
EVOL (WALES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 31 -
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
229,430
206,937

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
400,000
400,000
400,000
400,000
25
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
112,519
112,519
112,519
112,519
Between two and five years
331,966
331,966
331,966
331,966
In over five years
1,083,333
1,083,333
1,083,333
1,083,333
1,415,299
1,527,818
1,415,299
1,527,818
EVOL (WALES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 32 -
26
Related party transactions

Group

During the year the group charged £56,237 (2022: £193,317) of management fees and £2,644 (2022: £13,262) of other services to Tiny Rebel Limited, an associate of the group. At the year end £391.547 was due from Tiny Rebel Limited.(2022: £118,388 owed to).

 

Company

During the year the company made sales of £292,453 (2022: £254,825) to Whitehead Building Services Limited and purchases of £nil (2022: £nil). At the year end, the company owed £3,668,350 (2022: £3,623,350) to Whitehead Building Services Limited; this amount is included in amounts owed by group undertakings within one year.

 

The above transactions are related as Whitehead Building Services Limited is a subsidiary of Evol (Wales) Limited.

 

Mr I Cummings, a director, operates a current loan account with the company, which is debited with payments made by the company on behalf of the director and credited with funds introduced and undrawn directors fees. The amount due to the director at the year end was £912,850 (2022: £762,850), this amount is included in creditors due within one year.

 

During the year the company charged £56,237 (2022: £193,317) of management fees and £2,644 (2022: £13,262) of other services to Tiny Rebel Limited, an associate of the company. At the year end £46,134 (2022: £118,388) was owed to Tiny Rebel Limited. This amount is included within creditors amounts falling due after more than one year.

 

The company is party to property obligations, in the form of operating leases, which are occupied by the company's associate, the Tiny Rebel Group. Operating lease payments are made directly by the Tiny Rebel Group.

27
Controlling party

The company is ultimately controlled by Mr I Cummings.

EVOL (WALES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 33 -
28
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,000,815
577,285
Adjustments for:
Share of results of associates and joint ventures
(55,665)
36,340
Taxation charged
3,159
19,196
Finance costs
-
0
18,338
Investment income
(158,095)
(11,692)
Fair value (gain)/loss on investment properties
(135,000)
46,000
Amortisation and impairment of intangible assets
45,749
45,749
Depreciation and impairment of tangible fixed assets
59,231
49,634
Movements in working capital:
Increase in stocks
(30,053)
(43,488)
Increase in debtors
(510,797)
(2,330,944)
Increase in creditors
823,016
2,760,598
Cash generated from operations
1,042,360
1,167,016
29
Analysis of changes in net funds - group
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
5,088,351
918,618
6,006,969
30
Prior period adjustment

The prior period adjustment relates to the correction of non controlling interest to reflect the share of assets between equity owners of the parent and interests of shareholders of subsidiary entities.

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