Company Registration No. 02513371 (England and Wales)
EDP EUROPE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
LB GROUP
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
EDP EUROPE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 12
EDP EUROPE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
43,151
61,672
Tangible assets
4
63,491
49,742
Investments
5
39,651
39,650
146,293
151,064
Current assets
Stocks
900,703
1,186,771
Debtors falling due after more than one year
7
13,300
12,700
Debtors falling due within one year
7
1,102,018
1,148,766
Cash at bank and in hand
486,657
572,388
2,502,678
2,920,625
Creditors: amounts falling due within one year
8
(930,113)
(1,646,271)
Net current assets
1,572,565
1,274,354
Total assets less current liabilities
1,718,858
1,425,418
Creditors: amounts falling due after more than one year
9
(15,589)
(19,419)
Provisions for liabilities
10
(15,425)
(11,889)
Net assets
1,687,844
1,394,110
Capital and reserves
Called up share capital
13
1,000
1,000
Profit and loss reserves
1,686,844
1,393,110
Total equity
1,687,844
1,394,110

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 20 April 2024 and are signed on its behalf by:
Mr P Howard
Director
Company Registration No. 02513371
EDP EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

EDP Europe Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 4, Croft Way, Witham, Essex, United Kingdom, CM8 2FN.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

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

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

The directors have considered the going concern basis of preparation of the financial statements,true noting the result for the year, forecasts and plans going forward. The directors consider that the company has sufficient working capital and cash reserves to enable the company to continue trading for at least a period of twelve months from the date of signing the financial statements. On this basis, the directors consider it appropriate to prepare the financial statements on the going concern basis.

1.3
Turnover

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

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

Turnover from the provision of installation services is recognised on the date of completion of a project.

1.4
Intangible fixed assets other than goodwill

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

 

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

EDP EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -

Amortisation 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:

Software
33% Straight line
1.5
Tangible fixed assets

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

 

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

 

Depreciation is provided on the following basis:

Plant and equipment
25% Straight line
Fixtures and fittings
20% Straight line
Computers
20% Straight line
Motor vehicles
20% Straight line

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

 

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

1.6
Fixed asset investments

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

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

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

1.7
Impairment of fixed assets

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

EDP EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.8
Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. The Company recognises stock in transit relating to items ordered and despatched pre year end and that are received post year end.

 

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

1.9
Cash and cash equivalents

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

1.10
Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans to related parties and investments in ordinary shares.

 

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

 

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.11
Equity instruments

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

EDP EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.12
Taxation

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

Current tax

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

Deferred tax

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

 

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

1.13
Employee benefits

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

 

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

 

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

1.14
Retirement benefits

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

 

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

EDP EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.15
Share-based payments

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

 

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

 

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

 

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

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

lease term.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions.

 

At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date.

 

Non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 

Gains and losses arising on translation in the period are included in profit or loss.

2
Employees

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

2023
2022
Number
Number
Total
16
12
EDP EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
3
Intangible fixed assets
Other
£
Cost
At 1 January 2023
63,824
Additions
3,815
At 31 December 2023
67,639
Amortisation
At 1 January 2023
2,152
Amortisation charged for the year
22,336
At 31 December 2023
24,488
Carrying amount
At 31 December 2023
43,151
At 31 December 2022
61,672
4
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
16,550
88,207
-
0
26,815
131,572
Additions
23,221
-
0
4,280
1,869
29,370
At 31 December 2023
39,771
88,207
4,280
28,684
160,942
Depreciation
At 1 January 2023
11,117
68,031
-
0
2,682
81,830
Depreciation charged in the year
4,430
5,172
500
5,519
15,621
At 31 December 2023
15,547
73,203
500
8,201
97,451
Carrying amount
At 31 December 2023
24,224
15,004
3,780
20,483
63,491
At 31 December 2022
5,433
20,176
-
0
24,133
49,742
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
981
980
Other investments other than loans
38,670
38,670
39,651
39,650
EDP EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Fixed asset investments
(Continued)
- 8 -
Movements in fixed asset investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost
At 1 January 2023
980
38,670
39,650
Additions
1
-
1
At 31 December 2023
981
38,670
39,651
Carrying amount
At 31 December 2023
981
38,670
39,651
At 31 December 2022
980
38,670
39,650
EDP EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
6
Significant undertakings

The following was a subsidiary undertaking of the Company:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Critical Facilities Solutions Limited
United Kingdom
Ordinary A, B & G Shares
89.00
-
Critical Facilities Solutions B.V.
Netherlands
Ordinary
-
89.00
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
471,719
754,140
Other debtors
630,299
394,626
1,102,018
1,148,766
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
13,300
12,700
Total debtors
1,115,318
1,161,466

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

8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
381,443
505,852
Corporation tax
95,554
65,143
Other taxation and social security
25,357
155,817
Other creditors
427,759
919,459
930,113
1,646,271
9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
15,589
19,419
EDP EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
10
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
15,425
11,889
11
Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £30,716 (2022 - £22,927). Contributions totalling £1,011 (2022 - £934) were payable to the fund at the balance sheet date and are included in other creditors.

12
Share-based payment transactions

The company operates an equity settled share based payment remuneration scheme for certain employees. The scheme is an approved EMI scheme. Those employees are granted options under the scheme that are exercisable if there are certain exit events, being a sale of the company or if shares of the company are admitted to trading on any investment exchange. The only other vesting condition is that the employees remain in employment through the vesting period.

Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 January 2023
17,000
17,000
14.44
14.44
Granted
7,000
-
0
33.52
-
0
Outstanding at 31 December 2023
24,000
17,000
20.00
-
0
Exercisable at 31 December 2023
-
0
-
0
-
0
-
0

The exercise price of the options outstanding at the year end ranged between £7 and £33.52 (2022: £7.00 and £32.28) and their weighted average contractual life was 10 years (2022: 7 years).

 

Of the total number of options outstanding at the end of the year, none of the options had vested (2022: none) and none were exercisable at the end of the year (2022: none).

 

As at 31 December 2023, there are no plans for an exit event to take place and therefore the number of equity instruments expected to vest is Nil (2022: Nil). As a result, no accounting entries are recognised (2022: £Nil).

13
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Allotted, Issued and fully paid
Ordinary shares of 1p each
100,000
100,000
1,000
1,000
EDP EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Called up share capital
(Continued)
- 11 -

Ordinary share holders have one vote for every Ordinary share. Ordinary share holders have a right to receive a portion of any dividend voted, and a right to a distribution of any remaining assets upon the winding up of the company.

14
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Shaun Roberts
Statutory Auditor:
LB Group Limited (Colchester)
15
Operating lease commitments
Lessee

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

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

2023
2022
£
£
Within one year
61,610
58,368
Between two and five years
51,347
42,144
112,957
100,512
EDP EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
16
Related party transactions

During the year, the company incurred management fees of £60,000 (2022: £60,000) from Howard Industries, a Company under common control of Peter Howard. During the year the company made purchases from Howard Industries of £17,306 (2022: £19,515). As at 31 December 2023 the amount due from Howard Industries was £Nil (2022: £Nil).

 

During the year the Company traded with Celeritas Group LLC, a Company in which Peter Howard is a director. During the year the company made purchases from Celeritas Group LLC of £Nil (2022: £1,589). As at 31 December 2023 the amount due to Celeritas Group LLC was £Nil (2022: £Nil).

 

During the year the Company traded with Critical Facilities Solutions Limited ("CFS"), a subsidiary of the Company. The Company made purchases from CFS of £231,570 (2022: £72,852) and made sales of £1,668 (2022: £40,754). The company also charged management fees to CFS of £36,000 (2022: £36,000). As at 31 December 2023 the amount due from Critical Facilities Solutions Limited was £548,003 (2022: £330,613). Of this outstanding year end balance, £379,076 (2022: £253,969) is a loan provided to Critical Facilities Solutions which is not repayable until the Company has sufficient funds available. At year end there was also a prepayment of goods purchased from Critical Facilities Solutions Limited of £5,754 (2022: £Nil) included in prepayments.

17
Parent company

The parent undertaking is the P Howard Revocable Trust by virtue of the majority shareholding held by that entity.

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