REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Period |
11 November 2022 to 31 December 2023 |
for |
SWARCO Smart Charging Ltd |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Period |
11 November 2022 to 31 December 2023 |
for |
SWARCO Smart Charging Ltd |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Contents of the Financial Statements |
for the Period 11 November 2022 to 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Profit and Loss Account | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Notes to the Financial Statements | 14 |
SWARCO Smart Charging Ltd |
Company Information |
for the Period 11 November 2022 to 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Accountants |
& Statutory Auditors |
Oak Tree House, Harwood Road |
Northminster Business Park |
Upper Poppleton |
York |
YO26 6QU |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Strategic Report |
for the Period 11 November 2022 to 31 December 2023 |
The directors present their strategic report for the period 11 November 2022 to 31 December 2023. |
REVIEW OF BUSINESS |
SWARCO Smart Charging Ltd was incorporated on 11 November 2022, and effective 1 January 2023, acquired the electric vehicle charging infrastructure business from SWARCO UK Ltd. This allows SSC to have a clear market focus and specialism in this sector, and to continue with SWARCO's market leading team of domain experts and products, built up over 13 years of operations. |
The SSC business has two divisions. The eVolt division, continues to show strong year on year growth, and a reasonable level of profitability. eVolt reported EBITDA pre LF/CA of £2.852m in 2023. (2022: £1.726m) as it continues to service hundreds of customers across the entirety of Great Britain. |
Secondly, SSC also invests in its own portfolio of assets as a Charge Place Operator ("CPO") and launched its PoGo brand in Q1 2023. PoGo recorded an EBITDA loss in the financial year. Such losses are budgeted, and expected in the early years of a CPO as up-front capital investment is necessary to grow the network and create the return on investment. This is witnessed by other CPOs in the UK, but the Directors believe the division offers significant long-term value. |
Operationally, the Company maintained its strong investment in the Smart Charging staff team and continued to recruit high calibre employees across all disciplines. It also continued to invest in its EConnect back office software platform, which allows revenue collection, data reporting and system fault diagnostics. We believe this will offer our valued customers a market leading solution. |
Key performance indicators (KPIs) |
The main KPIs management uses to appraise the performance of the eVolt business are as follows: |
2023 |
£ |
Turnover | £35.763m |
Gross profit | £6.633m |
EBITDA | £2.852m |
The main KPIs management uses to appraise the performance of the PoGo division are as follows: |
Pipeline of Ultra Rapid Chargers | 2,687 |
Future development and Outlook |
The Company has access to significant funding lines for ongoing investment and operational needs through SWARCO Group, which remains a highly profitable and global ITS player with group revenues in excess of 1 billion EUR and EBIT of 80m EUR plus. |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Strategic Report |
for the Period 11 November 2022 to 31 December 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Company's principal risk would be an economic downturn reducing investment in new infrastructure. At a macro level, Management continues to assess market developments and emerging technologies and competitors, and believes the Company remains well positioned to continue to offer growth. The Director's further note that the transition to electric vehicles is a key cornerstone of the UK's move towards Net Zero, which creates a strong demand for the products and services that SSC supplies. |
Financial risk management objectives and policies |
The Company's finance function manages the risk inherent in control of credit, availability of liquid funds and foreign currency exposures arising from imports in accordance with the corporate policies. |
The management reviews these policies regularly as summarised below: |
Credit risk |
The Company seeks to minimise counterparty risk by trading only with established and financially strong customers. The risk is assessed on an on-going basis and relevant actions taken to mitigate any potential losses. |
Liquidity risk |
The Company aims to maintain a balance between continuity and flexibility of funding through the use of operating cash flow and borrowings. The Company's policy is to ensure that there is sufficient medium and long term funding available to meet liquidity requirements. |
Currency risk |
The Company aims to mitigate foreign currency exposure arising from imports by utilising foreign currency forward rate agreements, held by its Parent company SWARCO UK Ltd |
ON BEHALF OF THE BOARD: |
29 August 2024 |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Report of the Directors |
for the Period 11 November 2022 to 31 December 2023 |
The directors present their report with the financial statements of the company for the period 11 November 2022 to 31 December 2023. |
INCORPORATION |
The company was incorporated on 11 November 2022. |
Effective 1 January 2023, the Smart Charging business previously part of SWARCO UK Ltd was hived down into SWARCO Smart Charging Ltd. |
The SSC business also invests in its own portfolio of assets as a Charge Place Operator ("CPO") and launched its PoGo brand in Q1 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the period under review was that of a broad range of e-mobility solutions (eVolt division) for the private and public sector. |
DIVIDENDS |
No dividends will be distributed for the period ended 31 December 2023. |
DIRECTORS |
The directors who have held office during the period from 11 November 2022 to the date of this report are as follows: |
POLITICAL DONATIONS AND EXPENDITURE |
The Company made no political donations or incurred any political expenditure during the period. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Report of the Directors |
for the Period 11 November 2022 to 31 December 2023 |
AUDITORS |
The auditors, Clive Owen LLP, are deemed to be appointed under section 487(2) of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
SWARCO Smart Charging Ltd |
Opinion |
We have audited the financial statements of SWARCO Smart Charging Ltd (the 'company') for the period ended 31 December 2023 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 'Reduced Disclosure Framework' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the period then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
SWARCO Smart Charging Ltd |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the 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. |
Report of the Independent Auditors to the Members of |
SWARCO Smart Charging Ltd |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, to detect material misstatements in respect of irregularities, including fraud. Our audit must be alert to the risk of manipulation of the financial statements and seek to understand the incentives and opportunities for management to achieve this. |
We undertake the following procedures to identify and respond to these risks of non-compliance: |
- | Understanding the key legal and regulatory frameworks that are applicable to the Company. Wecommunicated identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. We determined the most significant of these to be GDPR, highway regulations, financial reporting legislation, taxation legislation, health & safety, and employment law. |
- | Enquiry of directors and management as to policies and procedures to ensure compliance and any known instances of non-compliance |
- | Review of board minutes and correspondence with regulators. |
- | Enquiry of directors and management as to areas of the financial statements susceptible to fraud and how these risks are managed. |
- | Challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. These key areas of uncertainty are disclosed in the accounting policies. |
- | Identifying and testing unusual journal entries, with a particular focus on manual journal entries. |
Through these procedures, we did not become aware of actual or suspected non-compliance. |
We planned and performed our audit in accordance with auditing standards but owing to the inherent limitations of procedures required in these areas, there is an unavoidable risk that we may not have detected a material misstatement in the accounts. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve concealment, collusion, forgery, misrepresentations, or override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
SWARCO Smart Charging Ltd |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
& Statutory Auditors |
Oak Tree House, Harwood Road |
Northminster Business Park |
Upper Poppleton |
York |
YO26 6QU |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Profit and Loss Account |
for the Period 11 November 2022 to 31 December 2023 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
5,939,470 |
OPERATING LOSS | ( | ) |
Interest payable and similar expenses | 6 |
LOSS BEFORE TAXATION | 7 | ( | ) |
Tax on loss | 8 |
LOSS FOR THE FINANCIAL PERIOD | ( | ) |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Other Comprehensive Income |
for the Period 11 November 2022 to 31 December 2023 |
Notes | £ |
LOSS FOR THE PERIOD | ( | ) |
OTHER COMPREHENSIVE INCOME | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | ( | ) |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Balance Sheet |
31 December 2023 |
Notes | £ | £ |
FIXED ASSETS |
Owned |
Intangible assets | 9 | 1,669,924 |
Tangible assets | 10 | 11,724,217 |
Right-of-use |
Tangible assets | 10, 16 | 3,537,994 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT LIABILITIES | ( | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 14 | ( | ) |
PROVISIONS FOR LIABILITIES | 17 | ( | ) |
NET LIABILITIES | ( | ) |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 | ( | ) |
SHAREHOLDERS' FUNDS | ( | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Statement of Changes in Equity |
for the Period 11 November 2022 to 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | ( | ) | ( | ) |
Balance at 31 December 2023 | ( | ) | ( | ) |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Notes to the Financial Statements |
for the Period 11 November 2022 to 31 December 2023 |
1. | STATUTORY INFORMATION |
SWARCO Smart Charging Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparation |
These financial statements have been prepared in accordance with Financial Reporting Standard 101 "Reduced Disclosure Framework" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The Company is exempt by virtue of s400 of the Companies Act 2006 from the requirement to prepare group financial statements. These financial statements present information on the Company as an individual undertaking and not about its group. |
The Company's ultimate parent undertaking, Swarco AG, includes the Company in its consolidated financial statements. The consolidated financial statements of Swarco AG are prepared in accordance with International Financial Reporting Standards and are available to the public and may be obtained from Blattenwaldweg 8, 6112 Wattens, Austria. |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework": |
• | the requirements of IFRS 7 Financial Instruments: Disclosures; |
• | the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases; |
the requirements of paragraph 58 of IFRS 16; |
• | the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information in respect of: |
- | paragraph 73(e) of IAS 16 Property, Plant and Equipment; and |
- | paragraph 118(e) of IAS 38 Intangible Assets; |
• | the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D and 111 of IAS 1; |
• | the requirements of IAS 7 Statement of Cash Flows; |
• | the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors; |
• | the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures; |
• | the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group. |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Notes to the Financial Statements - continued |
for the Period 11 November 2022 to 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of consideration received or receivable, and represents amounts receivable for goods supplied, stated net of discounts, returns and value added taxes. |
Capital projects |
Where the outcome of the project can be estimated reliably, revenue and costs are recognised by reference to the stage of completion (stage per fix) of the project at the balance sheet date.This is normally measured by the proportion that project costs incurred for the work performed to date bear to the estimated total project costs, except where this would not be a representative of the stage of completion. Variation in project work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered highly likely. "Highly likely" is deemed by the directors to mean a probability of at least 90% in line with group recognition policy. |
Where the outcome of the project cannot be estimated reliably, capital project revenue is recognised to the extent of the project costs incurred where it is probable that they will be recoverable. projects costs are recognised as expenses in th period in which they are incurred. |
When it is probable that the total project costs will exceed total project revenue, the expected loss is recognised as an expense immediately. |
Maintenance contracts |
Revenue on maintenance contracts are recognised evenly over the period of the contract. |
Sales of services |
Revenue from equipment sales is recognised when the goods and services are supplied, can be reliably measured and when it is probable that future benefits will flow to the Company. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. |
Leases in which the Company assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. Leased assets acquired by way of finance lease are stated at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease, less accumulated depreciation and less accumulated impairment losses. |
Depreciation is charged to the profit and loss account on a straight line basis over the estimated useful lives of each part of an item of tangible fixed assets. The estimates useful lives are: |
Long Leasehold | 2 to 15 years |
Plant and machinery | 3 to 10 years |
Fixtures and fittings | 3 to 10 years |
Motor vehicles | 2 to 4 years |
Computer Equipment | 3 to 4 years |
Assets under construction | Accumulated construction costs are capitalised to assets under construction until such a time as the asset is complete. if the asset is complete by the year end, the asset is transferred to the relevant fixed asset and depreciated. |
Stocks |
Stocks are measured using the weighted average method. Cost is based on the expenditure incurred in acquiring the stocks and other costs in bringing to their existing location and condition. Stock is made up of trading goods and spare parts. |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Notes to the Financial Statements - continued |
for the Period 11 November 2022 to 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation including deferred tax |
Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the balance sheet date. |
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years. |
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial recognition of goodwill; the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination, and the differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date. |
A deferred tax asset is recognised only to the entente that it is probable that future taxable profits will be available against which the temporary difference can be utilised. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Leases |
Leases are recognised on the balance sheet. The lease liability is initially recognised at the present value of the lease payments which have not yet been made and subsequently measured under the amortised cost method. The initial cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, lease payments made prior to the lease commencement date, initial date, initial direct costs and the estimated costs of removing or dismantling the underlying asset per the conditions of the contract. |
Where ownership of the right-of-use asset transfers to the lessee at the end of the lease term, the right-of-use asset is depreciated over the asset’s remaining useful life. If ownership of the right-of-use asset does not transfer to the lessee at the end of the lease term, depreciation is charged over the shorter of the useful life of the right-of-use asset and the lease term. |
Right of use assets - Leases |
For all leases, except for short-term leases and leases of low-value assets other than those which are subleased, previously classified as operating leases: |
- the Company recognises a lease liability measured at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate; and |
- for all leases the Company has elected to recognise a right-of-use asset at an amount equal to the lease liability, adjusted by the amount of prepaid or accrued lease payments relating to those leases recognised in the statement of financial position immediately before the date of initial application. |
The Company elected the following practical expedients: |
- has applied a single discount rate to a portfolio of leases with reasonably similar characteristics; and not to apply the new lessee accounting model to leases for which the lease term ends within 12 months |
- after the date of initial application. Instead, it has accounted for those leases as short-term leases. |
The weighted average incremental borrowing rate applied to measure lease liabilities is 3.70% for office buildings and motor vehicles. |
Employee benefit costs |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate. |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Notes to the Financial Statements - continued |
for the Period 11 November 2022 to 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Non-derivative financial instruments |
Non-derivative financial instruments comprise investments in equity and debt securities, trade and other debtors, cash and cash equivalents, loans and borrowings, and trade and other creditors. |
Trade and other debtors |
Trade and other debtors are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses. |
Trade and other creditors |
Trade and other creditors are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash balances, call deposits and bank overdrafts that are repayable on demand and form an integral part of the Company's cash management. |
Interest-bearing borrowings |
Interest-bearing borrowings are recognised initially at fair value less attributable transactions costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses. |
Impairment excluding stocks and deferred assets |
Financial assets (including trade and other debtors) A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. For financial instruments measured at cost less impairment an impairment is calculated as the difference between its carrying amount and the best estimate of the amount that the Company would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. |
Going concern |
Based upon future performance forecasts and that the Company is part of a very financial strong group with adequate funding in place, the directors consider that the Company has adequate resources to continue in operational existence for the foreseeable future. On this basis, it is therefore appropriate to adopt the going concern basis in preparing the financial statements. |
Borrowing costs |
Borrowing costs which are directly attributable to the construction of tangible fixed assets are capitalised as part of the cost of those assets. Capitalisation begins when both finance costs and expenditures for the asset are being incurred and activities that are necessary to get the asset ready for use are in progress. Capitalisation ceases when substantially all the activities that are necessary to get the asset ready for use are complete. |
Provisions |
A provision is recognised in the balance sheet when the Company has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability. |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Notes to the Financial Statements - continued |
for the Period 11 November 2022 to 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Expenses |
Lease payments |
Minimum lease payments are apportioned between the finance charge and the reduction of the outstandingly. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are charged as expenses in the periods in which they are incurred. |
Interest receivable and interest payable |
Interest payable and similar expenses include interest payable and finance leases recognised in the profit or loss using the effective interest method, unwinding of the discount on provisions, and net foreign exchange losses that are recognised in the profit and loss account (see foreign currency accounting policy). Other interest receivable and similar income include interest receivable on funds invested and net foreign exchange gains.Interest income and interest payable is recognised in profit or loss as it accrues, using the effective interest method. Dividend income is recognised in the profit and loss account on the date the entity's right to receive payments is established. Foreign currency gains and losses are reported on a net basis. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
There are not been deemed to be any critical judgements, apart from those involving estimations (which are dealt with separate below), that the directors have made in the process of applying the Company's accounting policies and that have had a significant effect on the amounts recognised in financial statements. |
Key sources of estimation uncertainty |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The following are the critical judgements that the directors have made in the process of applying the Company's accounting policy ad have the most significant effect on the amounts recognised in financial statements: |
Revenue recognition |
eVolt Revenue |
Revenue from projects is recognised based on performance obligations as identified in the contracts between the company and customers. As the determination of whether or not a performance obligation has been met and therefore revenue should be recognised relies on management judgement, the estimation uncertainty gives rise to a key accounting estimate. As there are clearly defined transaction prices and revenue to be recognised per fix (stage of progress), the estimation uncertainty is limited to the stage of project completion at year end. When it is probable that the projects costs will exceed the total project revenue, the estimated expected loss is recognised as an expense immediately. |
PoGo Revenue |
Revenue is recognised upon completion of individual car charging sessions. |
4. | TURNOVER |
The turnover and loss before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
£ |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Notes to the Financial Statements - continued |
for the Period 11 November 2022 to 31 December 2023 |
4. | TURNOVER - continued |
An analysis of turnover by geographical market is given below: |
£ |
United Kingdom |
5. | EMPLOYEES AND DIRECTORS |
£ |
Wages and salaries | 6,278,412 |
Social security costs |
Other pension costs |
The average number of employees during the period was as follows: |
Production | 55 |
Selling, admin and distribution | 101 |
£ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Benefits are accruing to three directors under a money purchase scheme. Two directors remuneration was paid by fellow group companies Swarco UK & Ireland Limited and Swarco UK Limited. Part of this remuneration is allocated to the company under a management fee arrangement. These are included in the table above. |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
£ |
Interest expenses SWARCO UK | 912,249 |
Leasing |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Notes to the Financial Statements - continued |
for the Period 11 November 2022 to 31 December 2023 |
7. | LOSS BEFORE TAXATION |
The loss before taxation is stated after charging/(crediting): |
£ |
Cost of inventories recognised as expense |
Depreciation - owned assets |
Depreciation - assets on finance leases |
Loss on disposal of fixed assets |
Development costs amortisation | 485,474 |
Auditors' remuneration |
Foreign exchange differences | ( | ) |
8. | TAXATION |
Analysis of tax expense |
£ |
Current tax: |
Tax |
Total tax expense in profit and loss account |
Factors affecting the tax expense |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
£ |
Loss before income tax | (1,703,913 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of | (400,420 | ) |
Effects of: |
Expenses not deductible for tax purposes | 496 |
Group relief | 376,704 |
Impact of change in deferred tax rate | 26,776 |
Transfer of assets | 442,714 |
Tax expense |
9. | INTANGIBLE FIXED ASSETS |
Development |
costs |
£ |
COST |
Additions |
At 31 December 2023 |
AMORTISATION |
Amortisation for period |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Notes to the Financial Statements - continued |
for the Period 11 November 2022 to 31 December 2023 |
10. | TANGIBLE FIXED ASSETS |
Assets |
Long | under | Plant and |
leasehold | construction | machinery |
£ | £ | £ |
COST |
Additions |
Disposals | ( | ) |
At 31 December 2023 |
DEPRECIATION |
Charge for period |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
Motor | Computer |
Equipment | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
Additions |
Disposals | ( | ) | ( | ) |
At 31 December 2023 |
DEPRECIATION |
Charge for period |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
The additions to tangible fixed assets include assets acquired at net-book value from SWARCO UK Limited. |
11. | STOCKS |
£ |
Stocks |
Finished goods |
A provision for obsolete stock amounting to £164,563 has been included in cost of sales for the year. |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
£ |
Trade debtors |
Prepayments and accrued income |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Notes to the Financial Statements - continued |
for the Period 11 November 2022 to 31 December 2023 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
£ |
Leases (see note 15) |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Other creditors |
Accruals and deferred income |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
£ |
Leases (see note 15) |
Other creditors |
15. | FINANCIAL LIABILITIES - BORROWINGS |
£ |
Current: |
Leases (see note 16) | 494,413 |
Non-current: |
Leases (see note 16) | 3,104,330 |
Terms and debt repayment schedule |
1 year or | More than |
less | 1-2 years | 5 years | Totals |
£ | £ | £ | £ |
Leases | 494,413 | 1,048,859 | 2,055,471 | 3,598,743 |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Notes to the Financial Statements - continued |
for the Period 11 November 2022 to 31 December 2023 |
16. | LEASING |
Right-of-use assets |
Tangible fixed assets |
£ |
COST |
Additions | 3,882,002 |
Disposals | 9,121 |
3,891,123 |
DEPRECIATION |
Charge for year | 353,129 |
NET BOOK VALUE | 3,537,994 |
Lease liabilities |
Minimum lease payments fall due as follows: |
£ |
Gross obligations repayable: |
Within one year | 696,103 |
Between one and five years | 1,635,827 |
In more than five years | 2,834,792 |
5,166,722 |
Finance charges repayable: |
Within one year | 201,690 |
Between one and five years | 586,968 |
In more than five years | 779,321 |
1,567,979 |
Net obligations repayable: |
Within one year | 494,413 |
Between one and five years | 1,048,859 |
In more than five years | 2,055,471 |
3,598,743 |
17. | PROVISIONS FOR LIABILITIES |
£ |
Deferred tax |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Notes to the Financial Statements - continued |
for the Period 11 November 2022 to 31 December 2023 |
17. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Provided during period | 446,270 |
Balance at 31 December 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal |
value: | £ |
Ordinary | 100 | 100 |
100 Ordinary shares of £1 each were allotted as fully paid at par value during the year. |
Called up share capital represents the nominal value of shares that have been issued. |
19. | RESERVES |
Retained |
earnings |
£ |
Deficit for the period | ( | ) |
At 31 December 2023 | ( | ) |
Retained earnings represent all current period retained profits and losses. |
20. | ULTIMATE PARENT COMPANY |
SWARCO AG Limited (incorporated in Austria ) is regarded by the directors as being the company's ultimate parent company. |
The largest group in which the results of the Company are consolidated is that headed by SWARCO AG and the financial statements of this group are available from Blattenwaldweg 8, 6112 Wattens, Austria. |
21. | CAPITAL COMMITMENTS |
£ |
Contracted but not provided for in the |
financial statements |
22. | RELATED PARTY DISCLOSURES |
The company has taken exemptions available under FRS 101 not to disclose transactions with wholly owned group companies. |
The company made purchases of £276,208 and made sales of £1,019,047 to group associates. The balance owed to group associates at 31 December 2023 was £24,987,524. |
During the year total key management expenses was £188,245. |
SWARCO Smart Charging Ltd (Registered number: 14479077) |
Notes to the Financial Statements - continued |
for the Period 11 November 2022 to 31 December 2023 |
23. | COMPARATIVES |
There are no comparatives included in this set of accounts as this is the first year of incorporation. |