IRIS Accounts Productionv24.1.0.57807621614Board of Directors1.1.2331.12.2331.12.23the supply of fuel and oil.truetruefalsetruetruefalsefalsefalsetruefalse 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REGISTERED NUMBER: 07621614 (England and Wales)


















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

FOR


CRAGGS ENERGY LIMITED


CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)







CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2023





Page



Company Information  

1



Strategic Report  

2



Report of the Directors  

4



Report of the Independent Auditors  

6



Income Statement  

9



Other Comprehensive Income  

10



Balance Sheet  

11



Statement of Changes in Equity  

12



Cash Flow Statement  

13



Notes to the Cash Flow Statement  

14



Notes to the Financial Statements

15




CRAGGS ENERGY LIMITED


COMPANY INFORMATION

FOR THE YEAR ENDED 31ST DECEMBER 2023









DIRECTORS:

C Bingham


Mrs H L Bingham


B L Duckworth


R S Wallace


M Crockett


Ms D S Newman


J P Sharp


Mrs A Turner







REGISTERED OFFICE:

The Craggs Country Business Park New Road


Cragg Vale


Hebden Bridge


West Yorkshire


HX7 5TT







REGISTERED NUMBER:

07621614 (England and Wales)







AUDITORS:

Cresswells Accountants (UK) Limited


Chartered Accountants


and Statutory Auditors


12 Market Street


Hebden Bridge


West Yorkshire


HX7 6AD


CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


STRATEGIC REPORT

FOR THE YEAR ENDED 31ST DECEMBER 2023


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


The business is a significant oil distribution business supplying homes, farms, businesses and public sector

companies with low emission HVO fuels, heating oils, gas oil (red diesel), DERV (white diesel), industrial

fuels, lubricants and fuel services.


During the year Moorland Fuels Limited was merged with Craggs Energy Limited creating one business, under the 100% employee owned Trust (EOT) with bases in Hebden Bridge, West Yorkshire, Padiham in Lancashire and Okehampton in Devon.  A strong emphasis on customer service and the use of technology, provides an efficient and innovative service.


REVIEW OF BUSINESS

The Directors are pleased with the performance for the year, with significant investments in a new ERP system and new vehicles driving improvements in customer service and efficiencies.


The engagement with employees across the business has increased under the EOT, with each beneficiary receiving a tax free bonus in the year. New wellbeing programmes have been introduced, including mental health, BUPA and life assurance based on feedback from employees, improving the overall culture within the company.


The regular monitoring of performance against forecasts and industry KPI's, ensures the business delivers efficient and competitive products to its customers.


Craggs recognises the need to help customers move to renewable and sustainable fuels and has invested in expanding its delivery of HVO in Okehampton alongside one of the largest in-land HVO distribution hub and HVO bunker points sitting within the Keyfuels network in Lancashire


PRINCIPAL RISKS AND UNCERTAINTIES

The Directors are aware of the various risks inherent in the business and meet regularly to consider them, ensuring that suitable management processes are in place to avoid, control or mitigate where possible. The key business risks are:


Credit risk

Craggs principle financial assets are cash, stock and trade debtors and the company's credit risk is primarily associated with trade debtors. This risk is managed by a strict policy of credit checking and reviewing all new and existing commercial customers. The company also maintains credit insurance to help mitigate this risk.


Commodity Price risk

Due to potential price fluctuations in the wholesale fuel market a price risk exists. Craggs seeks to mitigate this risk by having low levels of stock and short lead times between purchasing stock and delivering it to customers. Craggs also uses a proactive daily pricing policy aimed at minimising this risk.


Liquidity risk

Craggs seeks to manage liquidity risk by having sufficient funds and banking facilities in place to meet current and future working capital requirements.


Environmental and regulatory risk

The company is subject to environmental and regulatory risk due to the inherent nature of the sector in which it operates. Craggs ensures it meets all its environmental and regulatory requirements by having suitably qualified individuals and systems in place.



CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


STRATEGIC REPORT

FOR THE YEAR ENDED 31ST DECEMBER 2023


KEY PERFORMANCE INDICATORS

The Directors use a combination of financial and non-financial KPIs, monitored on a monthly basis with variances acted upon as required, to determine how well the company is performing against its objectives and overall strategy.


KPI's

- Volumes ordered

- Quantities delivered

- Gross margins by product per litre

- Transport and operational costs

- Trade debtors and ageing

- Stock levels


FUTURE DEVELOPMENTS

Craggs Holdings Limited will continue to serve its loyal customer base with traditional products whilst promoting greener alternatives such as HVO and the use of offsetting and insetting. The ongoing investment in new more efficient vehicles, investment in employees and improved IT systems will provide the platform for further organic growth.


ON BEHALF OF THE BOARD:






J P Sharp - Director



19th September 2024


CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


REPORT OF THE DIRECTORS

FOR THE YEAR ENDED 31ST DECEMBER 2023


The directors present their report with the financial statements of the company for the year ended 31st December 2023.  


DIVIDENDS

The total distribution of dividends for the year ended 31st December 2023 will be £ 1,099,999 .


DIRECTORS

The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report.


C Bingham

Mrs H L Bingham

B L Duckworth

R S Wallace

M Crockett

Ms D S Newman

J P Sharp


Other changes in directors holding office are as follows:


D Damary-Thompson - appointed 4th October 2023

Mrs A Turner - appointed 4th October 2023


D Damary-Thompson ceased to be a director after 31st December 2023 but prior to the date of this report.


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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


REPORT OF THE DIRECTORS

FOR THE YEAR ENDED 31ST DECEMBER 2023



AUDITORS

The auditors,  Cresswells Accountants (UK) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.


ON BEHALF OF THE BOARD:






J P Sharp - Director



19th September 2024


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

CRAGGS ENERGY LIMITED


Opinion

We have audited the financial statements of Craggs Energy Limited (the 'company') for the year ended 31st December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31st December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report.  We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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

CRAGGS ENERGY LIMITED



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.


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:


We obtained an understanding of the legal and regulatory frameworks that are applicable to Craggs Energy Limited and determined that the most significant are those that relate to the reporting framework (Companies Act 2006) and the relevant tax compliance regulations in the jurisdictions in which Craggs Energy Limited operates. In addition, we concluded that there are certain significant laws and regulations that may have an effect on the determination of the amounts and disclosures in the financial statements and those laws and regulations relating to health and safety, employee matters, environmental, and bribery and corruption practices.


We understood how Craggs Energy Limited is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through our review of board minutes and papers provided to the audit team.


We assessed the susceptibility of Craggs Energy Limited's Financial Statements to material misstatement, including how fraud might occur, we utilised internal and external information to perform a fraud risk assessment. We considered the risk of fraud through management override and, in response, we incorporated a review of manual journal entries into our audit approach. We also considered the possibility of fraudulent or corrupt payments made through third parties.


Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above.


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

CRAGGS ENERGY LIMITED



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.





John Dakin BSc FCA (Senior Statutory Auditor)

for and on behalf of Cresswells Accountants (UK) Limited

Chartered Accountants

and Statutory Auditors

12 Market Street

Hebden Bridge

West Yorkshire

HX7 6AD


19th September 2024


CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


INCOME STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER 2023



2023


2022


Notes

£   

£   



TURNOVER

3

52,757,897


45,514,872




Cost of sales

48,982,720


41,805,507



GROSS PROFIT

3,775,177


3,709,365




Administrative expenses

3,062,934


2,485,052



712,243


1,224,313




Other operating income

54,877


73,722



OPERATING PROFIT

5

767,120


1,298,035




Income from shares in group

undertakings

423,001


1,198,714



1,190,121


2,496,749




Interest payable and similar expenses

6

87,725


61,348



PROFIT BEFORE TAXATION

1,102,396


2,435,401




Tax on profit

7

95,724


143,276



PROFIT FOR THE FINANCIAL YEAR

1,006,672


2,292,125




CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31ST DECEMBER 2023



2023


2022


Notes

£   

£   



PROFIT FOR THE YEAR

1,006,672


2,292,125





OTHER COMPREHENSIVE INCOME

-


-



TOTAL COMPREHENSIVE INCOME

FOR THE YEAR

1,006,672


2,292,125




CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


BALANCE SHEET

31ST DECEMBER 2023



2023

2022



Notes

£   

£   

£   

£   


FIXED ASSETS

Intangible assets

9

-


172



Tangible assets

10

3,466,818


2,031,240



Investments

11

2,196,363


2,196,363



5,663,181


4,227,775




CURRENT ASSETS

Stocks

12

957,111


571,770



Debtors

13

10,197,554


5,893,551



Cash at bank and in hand

37


113,145



11,154,702


6,578,466



CREDITORS

Amounts falling due within one year

14

11,271,681


5,433,311



NET CURRENT (LIABILITIES)/ASSETS

(116,979

)

1,145,155



TOTAL ASSETS LESS CURRENT

LIABILITIES

5,546,202


5,372,930




CREDITORS

Amounts falling due after more than

one year

15

(1,229,361

)

(1,116,234

)



PROVISIONS FOR LIABILITIES

18

(566,015

)

(412,543

)


NET ASSETS

3,750,826


3,844,153




CAPITAL AND RESERVES

Called up share capital

19

10,763


10,763



Share premium

20

208,147


208,147



Retained earnings

20

3,531,916


3,625,243



SHAREHOLDERS' FUNDS

3,750,826


3,844,153




The financial statements were approved by the Board of Directors and authorised for issue on 19th September 2024 and were signed on its behalf by:






J P Sharp - Director



CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31ST DECEMBER 2023



Called up



share


Retained


Share


Total


capital


earnings


premium


equity

£   

£   

£   

£   


Balance at 1st January 2022

602,172


2,880,435


208,147


3,690,754




Changes in equity

Issue of share capital

(591,409

)

-


-


(591,409

)


Dividends

-


(1,547,317

)

-


(1,547,317

)


Total comprehensive income

-


2,292,125


-


2,292,125



Balance at 31st December 2022

10,763


3,625,243


208,147


3,844,153




Changes in equity

Dividends

-


(1,099,999

)

-


(1,099,999

)


Total comprehensive income

-


1,006,672


-


1,006,672



Balance at 31st December 2023

10,763


3,531,916


208,147


3,750,826




CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


CASH FLOW STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER 2023



2023


2022


Notes

£   

£   


Cash flows from operating activities

Cash generated from operations

1

(572,125

)

1,363,568



Interest paid

(77,725

)

(48,434

)


Interest element of hire purchase

payments paid

(10,000

)

(12,914

)


Tax paid

231


(145,368

)


Net cash from operating activities

(659,619

)

1,156,852




Cash flows from investing activities

Purchase of tangible fixed assets

(484,795

)

(488,566

)


Sale of tangible fixed assets

71,133


32,610



Dividends received

423,001


1,198,714



Net cash from investing activities

9,339


742,758




Cash flows from financing activities

Loan repayments in year

(1,083,115

)

(266,666

)


Capital repayments in year

(197,508

)

281,697



Share issue

-


(591,409

)


Equity dividends paid

(1,099,999

)

(1,547,317

)


Net cash from financing activities

(2,380,622

)

(2,123,695

)



Decrease in cash and cash equivalents

(3,030,902

)

(224,085

)


Cash and cash equivalents at

beginning of year

2

113,145


337,230




Cash and cash equivalents at end of

year

2

(2,917,757

)

113,145




CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


NOTES TO THE CASH FLOW STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER 2023


1.

RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM

OPERATIONS


2023


2022

£   

£   



Profit before taxation

1,102,396


2,435,401




Depreciation charges

435,453


276,410




Loss/(profit) on disposal of fixed assets

108,782


(8,322

)



Finance costs

87,725


61,348




Finance income

(423,001

)

(1,198,714

)


1,311,355


1,566,123




Increase in stocks

(385,341

)

(307,937

)



Increase in trade and other debtors

(4,304,273

)

(1,844,566

)



Increase in trade and other creditors

2,806,134


1,949,948




Cash generated from operations

(572,125

)

1,363,568




2.

CASH AND CASH EQUIVALENTS



The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:



Year ended 31st December 2023


31.12.23


1.1.23

£   

£   



Cash and cash equivalents

37


113,145




Bank overdrafts

(2,917,794

)

-



(2,917,757

)

113,145




Year ended 31st December 2022


31.12.22


1.1.22

£   

£   



Cash and cash equivalents

113,145


337,230





3.

ANALYSIS OF CHANGES IN NET DEBT



Other



non-cash



At 1.1.23

Cash flow

changes

At 31.12.23

£   

£   

£   

£   



Net cash



Cash at bank


and in hand

113,145


(113,108

)

37




Bank overdrafts

-


(2,917,794

)

(2,917,794

)


113,145


(3,030,902

)

(2,917,757

)



Debt


Finance leases

(447,289

)

333,903


-


(1,679,364

)



Debts falling due


within 1 year

(266,667

)

266,667


-


-




Debts falling due


after 1 year

(800,000

)

800,000


-


-



(1,513,956

)

1,400,570


-


(1,679,364

)



Total

(1,400,811

)

(1,630,332

)

-


(4,597,121

)



CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2023


1.

STATUTORY INFORMATION



Craggs Energy Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.


The presentation currency of the financial statements is the Pound Sterling (£).


2.

ACCOUNTING POLICIES



Basis of preparing the financial statements


These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.  



Revenue recognition


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



Sale of goods



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


- the Company has transferred the significant risks and rewards of ownership to the buyer;


- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;


- the amount of revenue can be measured reliably;


- it is probable that the Company will receive the consideration due under the transaction; and


- the costs incurred or to be incurred in respect of the transaction can be measured reliably.



Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.


Patents and licences are being amortised evenly over their estimated useful life of ten years.



Tangible fixed assets


Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.  


Freehold property

-

2% on cost


Plant and machinery

-

over 20 years


Fixtures and fittings

-

over 5 years


Motor vehicles

-  

over 10 years and over 20 years


Computer equipment

-

over 5 years



Investments in subsidiaries


Investments in subsidiary undertakings are recognised at cost.



Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.


CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST DECEMBER 2023


2.

ACCOUNTING POLICIES - continued



Financial instruments

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

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised costs using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected t be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment f a trade debt deferred beyond normal business terms or finance at a rate of interest that is not a market rate or in the case of an out-right short-term loan nor at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised costs 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 as 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.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an assets carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.


Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.


Hire purchase and leasing commitments


Rentals paid under operating leases are charged to the statement of comprehensive income on a straight line basis over the lease term.



Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.


CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST DECEMBER 2023


2.

ACCOUNTING POLICIES - continued



Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.


Finance costs


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



Borrowing costs


All borrowing costs are recognised in the statement of comprehensive income in the year in which they are incurred.


3.

TURNOVER



The turnover and profit before taxation are attributable to the one principal activity of the company.


4.

EMPLOYEES AND DIRECTORS


2023


2022

£   

£   



Wages and salaries

1,563,830


1,244,179




Social security costs

163,001


160,643




Other pension costs

23,866


20,088



1,750,697


1,424,910





The average number of employees during the year was as follows:


2023


2022



Directors

7


8




Staff

40


34



47


42





2023


2022

£   

£   



Directors' remuneration

372,910


389,062





Information regarding the highest paid director is as follows:


2023


2022

£   

£   



Emoluments etc

91,122


110,645




5.

OPERATING PROFIT



The operating profit is stated after charging/(crediting):



2023


2022

£   

£   



Other operating leases

32,618


49,625




Depreciation - owned assets

435,280


274,611




Loss/(profit) on disposal of fixed assets

108,782


(8,322

)



Patents and licences amortisation

172


1,799




Auditors' remuneration

25,000


21,825




CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST DECEMBER 2023


6.

INTEREST PAYABLE AND SIMILAR EXPENSES



2023


2022

£   

£   



Bank loan interest

77,725


48,434




Hire purchase interest

10,000


12,914



87,725


61,348




7.

TAXATION



Analysis of the tax charge


The tax charge on the profit for the year was as follows:


2023


2022

£   

£   



Current tax:


Under provision in prior years

-


33





Deferred tax

95,724


143,243




Tax on profit

95,724


143,276





UK corporation tax has been charged at 25% .



Reconciliation of total tax charge included in profit and loss


The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:



2023


2022

£   

£   



Profit before tax

1,102,396


2,435,401




Profit multiplied by the standard rate of corporation tax in the UK

of 25% (2022 - 19%)  

275,599


462,726





Effects of:


Expenses not deductible for tax purposes

20,614


57,747




Income not taxable for tax purposes

(103,945

)

(227,756

)



Utilisation of tax losses

(35,191

)

-




Deferred taxation timing difference  

(49,478

)

-




Group relief  

(11,875

)

158,653




EMI deduction  

-


(379,256

)



Super deduction  

-


(27,848

)



Deferred tax change in rate  

-


99,010




Total tax charge

95,724


143,276




8.

DIVIDENDS


2023


2022

£   

£   



Ordinary shares of £1 each



Interim

1,099,999


1,547,317




CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST DECEMBER 2023


9.

INTANGIBLE FIXED ASSETS


Patents


and


licences

£   



COST


At 1st January 2023


and 31st December 2023

17,985




AMORTISATION


At 1st January 2023

17,813




Amortisation for year

172




At 31st December 2023

17,985




NET BOOK VALUE


At 31st December 2023

-




At 31st December 2022

172




10.

TANGIBLE FIXED ASSETS


Freehold


Short


Plant and


property


leasehold


machinery

£   

£   

£   



COST


At 1st January 2023

347,940


-


249,337




Additions

-


17,149


115,393




Disposals

-


-


-




At 31st December 2023

347,940


17,149


364,730




DEPRECIATION


At 1st January 2023

46,959


-


138,490




Charge for year

6,000


3,716


35,897




Eliminated on disposal

-


-


-




At 31st December 2023

52,959


3,716


174,387




NET BOOK VALUE


At 31st December 2023

294,981


13,433


190,343




At 31st December 2022

300,981


-


110,847




CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST DECEMBER 2023


10.

TANGIBLE FIXED ASSETS - continued



Fixtures



and


Motor


Computer



fittings


vehicles


equipment


Totals

£   

£   

£   

£   



COST


At 1st January 2023

174,535


2,098,996


1,130,182


4,000,990




Additions

93,697


1,686,025


138,509


2,050,773




Disposals

(22,364

)

(945,429

)

-


(967,793

)



At 31st December 2023

245,868


2,839,592


1,268,691


5,083,970




DEPRECIATION


At 1st January 2023

126,523


1,111,899


545,879


1,969,750




Charge for year

13,713


274,185


101,769


435,280




Eliminated on disposal

(22,364

)

(765,514

)

-


(787,878

)



At 31st December 2023

117,872


620,570


647,648


1,617,152




NET BOOK VALUE


At 31st December 2023

127,996


2,219,022


621,043


3,466,818




At 31st December 2022

48,012


987,097


584,303


2,031,240




11.

FIXED ASSET INVESTMENTS


Shares in


group


undertakings

£   



COST


At 1st January 2023


and 31st December 2023

2,196,363




NET BOOK VALUE


At 31st December 2023

2,196,363




At 31st December 2022

2,196,363





The company's investments at the Balance Sheet date in the share capital of companies include the following:



Moorland Fuels Limited


Registered office: Craggs Country Business Park, New Road, Cragg Vale, Hebden Bridge, West Yorkshire, HX7 5TT  


Nature of business: Fuel distributor


%


Class of shares:

holding



Ordinary

100.00


2023

2022


£   

£   



Aggregate capital and reserves

-


155,686




Profit for the year

267,188


835,822




12.

STOCKS

2023

2022


£   

£   



Stocks

957,111


571,770




CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST DECEMBER 2023


13.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


2023

2022


£   

£   



Trade debtors

7,286,366


3,164,681




Other debtors

1,959,744


2,481,755




Tax

-


270




VAT

560,033


76,580




Prepayments and accrued income

391,411


170,265



10,197,554


5,893,551




14.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


2023

2022


£   

£   



Bank loans and overdrafts (see note 16)

2,917,794


266,667




Hire purchase contracts  (see note 17)

450,003


131,055




Trade creditors

6,731,929


4,537,376




Tax

62,161


-




Social security and other taxes

57,920


41,237




Other creditors

476,575


413,540




Accrued expenses

575,299


43,436



11,271,681


5,433,311




15.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE

YEAR


2023

2022


£   

£   



Bank loans (see note 16)

-


800,000




Hire purchase contracts  (see note 17)

1,229,361


316,234



1,229,361


1,116,234




16.

LOANS



An analysis of the maturity of loans is given below:


2023

2022


£   

£   



Amounts falling due within one year or on demand:


Bank overdrafts

2,917,794


-




Bank loans

-


266,667



2,917,794


266,667





Amounts falling due between one and two years:


Bank loans - 1-2 years

-


266,667





Amounts falling due between two and five years:


Bank loans - 2-5 years

-


533,333




CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST DECEMBER 2023


17.

LEASING AGREEMENTS



Minimum lease payments under hire purchase fall due as follows:


2023

2022


£   

£   



Net obligations repayable:


Within one year

450,003


131,055




Between one and five years

1,229,361


316,234



1,679,364


447,289




18.

PROVISIONS FOR LIABILITIES

2023

2022


£   

£   



Deferred tax

566,015


412,543





Deferred



tax


£   



Balance at 1st January 2023

412,543




Charge to Income Statement during year

153,472




Balance at 31st December 2023

566,015




19.

CALLED UP SHARE CAPITAL



Allotted, issued and fully paid:


Number:

Class:

Nominal

2023

2022



value:

£   

£   



10,763

Ordinary

£1

10,763


10,763




20.

RESERVES


Retained


Share



earnings


premium


Totals

£   

£   

£   




At 1st January 2023

3,625,243


208,147


3,833,390




Profit for the year

1,006,672


1,006,672




Dividends

(1,099,999

)

(1,099,999

)



At 31st December 2023

3,531,916


208,147


3,740,063




Share premium account

The share premium account represents the excess of the proceeds of share issues over the nominal value of the shares.

Profit and loss account

The profit and loss reserve represents historic profit generated by the company retained within the company.


CRAGGS ENERGY LIMITED (REGISTERED NUMBER: 07621614)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST DECEMBER 2023


21.

PENSION COMMITMENTS


The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £29,810 (2022 - £25,371). Contributions totalling £3,730 (2022- £5,054) were payable to the fund at the reporting date and are included in creditors.

22.

ULTIMATE PARENT COMPANY



Craggs Holdings Limited is regarded by the directors as being the company's ultimate parent company.


23.

RELATED PARTY DISCLOSURES



During the year the company made transactions with several  companies that have common directors as follows





2023


2022





Purchases


Sales


Purchases


Sales




Greenarc  Limited


547,249


789,463


9,160


1,687,647




Craggs Country Business Park LLP


84,407


25,909


84,158


-




LCM Environmental Services Limited  


556,571


529,214


1,051,143


8,181




Elektec Electrical Ltd


-


1,346


-


-




Greenarc Vehicles Limited  


2,529


50,685


-


-




PIS Ireland Ltd


-


3,103


-


-




Greenarc Fuelcards Limited


149,112


589,035


139,291


3,644,670




Holmes Tec Limited


-


2,221


-


-




Cragg Vale Consultancy Limited


-


1,369


-


-




Moorland Fuels Limited


155,960


191,941


281,336


68,372





The amounts (owed to)/due from related parties at the year end are as follows;



2023


2022




£   


£   






The Craggs Country Business Park LLP


(318

)

5,934




R E Thornber Limited


-


-




Cragg Vale Consultancy Limited


-


-




Greenarc Limited


134,644


(80,017

)



LCM Environmental Services Limited


(11,437

)

(35,905

)



Greenarc Fuel Cards Limited


(494,358

)

(111,714

)



LCM Environmental Services Holdings Limited


-


229,950




Craggs Holdings Limited


1,882,394


1,881,742




Moorland Fuels Limited


-


16,174




Greenarc Energy Ltd


-


103,200




The Craggs Personal Storage Limited


-


48




Director loan balances




C Bingham


10,000


10,000




R Wallace


10,000


10,000




M Crockett


20,000


20,000




J Cosway


10,000


10,000




B Duckworth


10,000


10,000





1,580,925


2,069,412