REGISTERED NUMBER: 09586545 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
A&M ENERGY GROUP LIMITED |
REGISTERED NUMBER: 09586545 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
A&M ENERGY GROUP LIMITED |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Statement of Comprehensive Income | 6 |
Consolidated Balance Sheet | 7 |
Company Balance Sheet | 8 |
Consolidated Statement of Changes in Equity | 9 |
Company Statement of Changes in Equity | 10 |
Consolidated Cash Flow Statement | 11 |
Notes to the Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Financial Statements | 13 |
A&M ENERGY GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and |
Statutory Auditors |
17 George Street |
St Helens |
Merseyside |
WA10 1DB |
BANKERS: | National Westminster Bank Plc |
5 Ormskirk Street |
St Helens |
Merseyside |
WA10 1DR |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
The principal activity of the group continues to be the supply and install of insulation products into domestic dwellings, predominantly loft and cavity wall insulation. |
REVIEW OF BUSINESS |
Turnover of the business for the year showed a significant improvement over the prior year at £40,234,157 (2022 - £32,221,222) principally due to continued growth in the commercial new build sector. |
Operating profit percentage reduced slightly to 6.3% of turnover (2022 - 7.1%) as a result of continuing inflationary pressures within the supply chain. |
Profit before tax showed an increase to £2,577,144 (2022 - £2,533,280) largely due to the increase in overall activity. |
The company remains committed to building market share which is evidenced by the continued growth in the new build order bank. |
The directors are pleased to report the ongoing development of the company's operations with substantial investment into a new IT system integrating operations and finance which went live in March 2023. |
Further investment has also been made into both central and regional management to support forecast growth especially within the retrofit market and into our vehicle fleet improving reliability. |
Although volumes within the retrofit sector remain relatively low, the directors are pleased to report significant growth in work funded through the Great British Insulation Scheme (GBIS) which is an energy supplier led obligation to deliver improvements to the least energy-efficient homes in Great Britain to tackle fuel poverty and help reduce energy bills and is intended to run from April 2023 until March 2026. |
The Company is also targeting further growth within the retrofit sector through decarbonisation schemes ultimately funded through the Government under the Social Housing Decarbonisation Fund (SHDF) and Optimised Retrofit Programme (ORP) in Wales. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Credit risk is a key area of concern for the directors with the recent general downturn in volumes within the new build sector, principally due to rising interest rates and mortgage affordability, and general cost inflationary pressures which are both expected to place significant pressure on the profitability and liquidity of housebuilding customers. To minimise credit risk the company maintains a broad portfolio of diverse customers both within the new build and retrofit sectors and credit limits are continually under review using new systems and procedures to improve visibility over profitability and debt exposure on all individual contracts. |
Financial risk is mitigated by the company maintaining acceptable levels of cash resources further to recent periods of profitability however the directors closely assess the working capital requirements of the business. |
ON BEHALF OF THE BOARD: |
19 September 2024 |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
DIVIDENDS |
The total distribution of dividends for the period ended 31 December 2023 will be £758,400. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
QUALIFYING THIRD PARTY INDEMNITY PROVISIONS |
A qualifying third party indemnity provision as defined in section 234 of the Companies Act 2006, applicable to all of the company's directors was in place during the financial year and continues to be in force as at the date these financial statements were approved. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
A&M ENERGY GROUP LIMITED |
Opinion |
We have audited the financial statements of A&M Energy Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2023 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
A&M ENERGY GROUP LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent 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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are planned and performed to detect irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. |
Our approach was as follows: |
- Discussions with management and those involved in the financial reporting process including consideration of known or suspected instances of non-compliance with laws and regulations central to the company's ability to operate, and fraud; |
- Evaluation and testing of the operating effectiveness of management's controls designed to prevent and detect irregularities; and |
- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or of significant monetary amounts. |
-Review of the rationale for the calculation of key accounting estimates in the financial statements and testing of the accuracy of these calculations. |
There are inherent limitations in the audit procedures described above. 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. Also, 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 deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
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. |
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 and |
Statutory Auditors |
17 George Street |
St Helens |
Merseyside |
WA10 1DB |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 40,234,157 | 32,221,222 |
Cost of sales | (27,506,401 | ) | (21,545,914 | ) |
GROSS PROFIT | 12,727,756 | 10,675,308 |
Distribution costs | (1,610,435 | ) | (1,462,006 | ) |
Administrative expenses | (8,592,234 | ) | (6,915,567 | ) |
OPERATING PROFIT | 5 | 2,525,087 | 2,297,735 |
Exceptional item | 6 | 139,790 | 230,931 |
2,664,877 | 2,528,666 |
Dividends received | 125 | - |
Interest receivable and similar income | 239 | 4,614 |
2,665,241 | 2,533,280 |
Interest payable and similar expenses | 7 | (88,097 | ) | - |
PROFIT BEFORE TAXATION | 2,577,144 | 2,533,280 |
Tax on profit | 8 | (573,122 | ) | (545,323 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,004,022 |
1,987,957 |
Profit attributable to: |
Owners of the parent | 2,004,022 | 1,987,957 |
Total comprehensive income attributable to: |
Owners of the parent | 2,004,022 | 1,987,957 |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 11 | 4,082,016 | 1,993,792 |
Investments | 12 | - | - |
4,082,016 | 1,993,792 |
CURRENT ASSETS |
Stocks | 13 | 637,815 | 959,363 |
Debtors | 14 | 14,403,579 | 10,477,505 |
Cash at bank and in hand | 172,453 | 1,293,045 |
15,213,847 | 12,729,913 |
CREDITORS |
Amounts falling due within one year | 15 | (5,735,394 | ) | (3,701,900 | ) |
NET CURRENT ASSETS | 9,478,453 | 9,028,013 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
13,560,469 |
11,021,805 |
CREDITORS |
Amounts falling due after more than one year | 16 | (1,203,296 | ) | - |
PROVISIONS FOR LIABILITIES | 19 | (464,379 | ) | (374,633 | ) |
NET ASSETS | 11,892,794 | 10,647,172 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 100 | 100 |
Merger reserve | 21 | 4,253,841 | 4,253,841 |
Retained earnings | 21 | 7,638,853 | 6,393,231 |
SHAREHOLDERS' FUNDS | 11,892,794 | 10,647,172 |
The financial statements were approved by the Board of Directors and authorised for issue on 19 September 2024 and were signed on its behalf by: |
Mr G K Mollard - Director |
Mr S Atherton - Director |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 16 | ( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 42,587 | 1,182,412 |
The financial statements were approved by the Board of Directors and authorised for issue on |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Merger | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 100 | 5,562,074 | 4,253,841 | 9,816,015 |
Changes in equity |
Dividends | - | (1,156,800 | ) | - | (1,156,800 | ) |
Total comprehensive income | - | 1,987,957 | - | 1,987,957 |
Balance at 31 December 2022 | 100 | 6,393,231 | 4,253,841 | 10,647,172 |
Changes in equity |
Dividends | - | (758,400 | ) | - | (758,400 | ) |
Total comprehensive income | - | 2,004,022 | - | 2,004,022 |
Balance at 31 December 2023 | 100 | 7,638,853 | 4,253,841 | 11,892,794 |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 653,965 | 1,332,109 |
Interest paid | (29,966 | ) | - |
Interest element of hire purchase payments paid | (58,131 | ) | - |
Tax paid | (228,043 | ) | (390,059 | ) |
Net cash from operating activities | 337,825 | 942,050 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (915,425 | ) | (1,318,424 | ) |
Sale of tangible fixed assets | 136,978 | 56,649 |
Interest received | 239 | 4,614 |
Dividends received | 125 | - |
Net cash from investing activities | (778,083 | ) | (1,257,161 | ) |
Cash flows from financing activities |
Loan received from related parties | 250,000 | - |
Hire purchase repayments in year | (421,934 | ) | - |
Amount introduced by directors | 250,000 | - |
Equity dividends paid | (758,400 | ) | (1,156,800 | ) |
Net cash from financing activities | (680,334 | ) | (1,156,800 | ) |
Decrease in cash and cash equivalents | (1,120,592 | ) | (1,471,911 | ) |
Cash and cash equivalents at beginning of year | 2 | 1,293,045 | 2,764,956 |
Cash and cash equivalents at end of year | 2 | 172,453 | 1,293,045 |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 2,577,144 | 2,533,280 |
Depreciation charges | 999,290 | 672,448 |
Profit on disposal of fixed assets | (58,436 | ) | (28,191 | ) |
Historic claims provision movement | - | (197,572 | ) |
Finance costs | 88,097 | - |
Finance income | (364 | ) | (4,614 | ) |
3,605,731 | 2,975,351 |
Decrease/(increase) in stocks | 321,548 | (330,599 | ) |
Increase in trade and other debtors | (3,926,074 | ) | (2,930,735 | ) |
Increase in trade and other creditors | 652,760 | 1,618,092 |
Cash generated from operations | 653,965 | 1,332,109 |
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 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 172,453 | 1,293,045 |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 1,293,045 | 2,764,956 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
Other |
non-cash |
At 1/1/23 | Cash flow | changes | At 31/12/23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 1,293,045 | (1,120,592 | ) | 172,453 |
1,293,045 | (1,120,592 | ) | 172,453 |
Debt |
Finance leases | - | 421,934 | (2,250,631 | ) | (1,828,697 | ) |
- | 421,934 | (2,250,631 | ) | (1,828,697 | ) |
Total | 1,293,045 | (698,658 | ) | (2,250,631 | ) | (1,656,244 | ) |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
A&M Energy Group Limited is a |
2. | ACCOUNTING POLICIES |
General information and basis of preparation |
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention. The financial statements are presented in sterling which is the functional currency of the company. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the company and entities controlled by the group (its subsidiaries). Control is achieved where the group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
On 1 July 2015, a share for share exchange took place between A&M Energy Group Limited and the shareholders of A&M Energy Solutions Limited. This transaction was as a result of a group reorganisation and the creation of A&M Energy Group Limited as the new parent company of the group. The ultimate shareholders remained the same. |
The results of subsidiaries acquired or disposed of during the year are included in total comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate using accounting policies consistent with those of the parent. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. |
Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements. On consolidation, any excess of the cost of the acquisition over the group's interest in the net fair value of the identifiable assets and liabilities is recognised as goodwill. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
In the application of the company's accounting policies as set out below, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The key sources of estimation uncertainty that may have a material effect on the amounts recognised in the financial statements are described below. |
Bad debt provision |
The group provides against debtors when the directors are made aware of specific issues but also based on the ageing of the debts. All post year end information, including credit notes, are considered in the directors calculation and any amounts considered irrecoverable are provided against in full. |
Dilapidation provision |
The group has numerous property leases whereby a dilapidation provision is calculated on a straight line basis over the term of the lease, and is based on the evaluation of future estimated costs to restore such properties to their original condition. |
Depreciation |
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives of the assets. These are amended when necessary to reflect current estimates based on technological advancement, future investment, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of the tangible fixed assets and the accounting policies for the depreciation rates for each class of assets. |
Turnover and other income |
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. |
The company recognises revenue when the amount of revenue can be measured reliably, when it is probable that future economic benefits will flow to the entity and when specific criteria have been met for each of the company's activities described below. |
Installations |
Turnover from the installation of insulation materials is recognised upon completion of the installation, it is probable that the economic benefits associated with the transaction will flow to the business and the costs incurred or to be incurred in respect of the installation can be measured reliably. |
Interest and dividends receivable |
Interest income is recognised using the effective interest method and dividend income is recognised as the entity's right to receive payment is established. |
Tangible fixed assets |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: |
Improvements to property | - Over the term of the lease |
Plant and machinery | - Straight line over 5 years on original cost |
Office equipment and computers | - Straight line over 3 years on original cost |
Motor vehicles | - Straight line over 5 years on original cost |
Assets are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss. |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
Taxation |
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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. |
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. |
Hire purchase and leasing commitments |
Assets acquired under hire purchase contracts or finance leases are capitalised and depreciated over the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors. |
Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
Employee benefits |
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. |
The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. |
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in administrative expenses. |
Provisions |
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. |
Related parties |
For the purposes of these financial statements, a party is considered to be related to the company if: |
1. the party has the ability, directly or indirectly, through one or more intermediaries, to control the company or exercise significant influence over the company in making financial and operating decisions, or has joint control over the company; |
2. the company and the party are subject to common control; |
3. the party is an associate of the company or a joint venture in which the company is a venturer; |
4. the party is a member of key management personnel of the company or the company's parent, or close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals; |
5. the party is a close family member of a party referred to in (1) or is an entity under the control, joint control or significant influence of such individuals; or |
6. the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company. |
Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 9,357,612 | 7,702,585 |
Social security costs | 1,013,137 | 844,211 |
Other pension costs | 183,559 | 145,815 |
10,554,308 | 8,692,611 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management and administration | 108 | 89 |
Direct | 133 | 106 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 734,963 | 567,619 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 4 | 4 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 216,569 | 173,671 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases | 398,846 | 370,739 |
Depreciation - owned assets | 999,291 | 672,448 |
Profit on disposal of fixed assets | (58,436 | ) | (28,191 | ) |
Auditors' remuneration | 9,500 | 9,188 |
Auditors' remuneration for non audit work | 30,968 | 16,800 |
6. | EXCEPTIONAL ITEM |
The exceptional item relates to the net costs / income from defending and settling claims in respect of historic insulation installations. |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Other interest paid | 29,966 | - |
Hire purchase interest | 58,131 | - |
88,097 | - |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 483,094 | 339,134 |
Prior periods | 282 | - |
Total current tax | 483,376 | 339,134 |
Deferred tax | 89,746 | 206,189 |
Tax on profit | 573,122 | 545,323 |
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 | 2,577,144 | 2,533,280 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
644,286 |
481,323 |
Effects of: |
Expenses not deductible for tax purposes | 10,989 | 59 |
Capital allowances in excess of depreciation | (141,794 | ) | (142,248 | ) |
Adjustments to tax charge in respect of previous periods | 282 | - |
Changes in tax rates | (30,387 | ) | - |
Movement in deferred tax | 89,746 | 206,189 |
Total tax charge | 573,122 | 545,323 |
9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Dividends paid | 758,400 | 1,156,800 |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | TANGIBLE FIXED ASSETS |
Group |
Office |
Improvements | equipment |
to | Plant and | and | Motor |
property | machinery | computers | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 | 163,952 | 1,265,305 | 435,733 | 3,629,041 | 5,494,031 |
Additions | 34,321 | 528,489 | 78,138 | 2,525,108 | 3,166,056 |
Disposals | - | - | (2,731 | ) | (581,337 | ) | (584,068 | ) |
At 31 December 2023 | 198,273 | 1,793,794 | 511,140 | 5,572,812 | 8,076,019 |
DEPRECIATION |
At 1 January 2023 | 110,063 | 875,485 | 269,537 | 2,245,152 | 3,500,237 |
Charge for year | 32,325 | 176,397 | 80,188 | 710,381 | 999,291 |
Eliminated on disposal | - | - | (2,730 | ) | (502,795 | ) | (505,525 | ) |
At 31 December 2023 | 142,388 | 1,051,882 | 346,995 | 2,452,738 | 3,994,003 |
NET BOOK VALUE |
At 31 December 2023 | 55,885 | 741,912 | 164,145 | 3,120,074 | 4,082,016 |
At 31 December 2022 | 53,889 | 389,820 | 166,196 | 1,383,889 | 1,993,794 |
Included within the cost of plant & machinery and motor vehicles are assets purchased under hire purchase contracts amounting to £249,694 (2022 - £Nil) and £2,186,093 (2022 - £Nil) respectively. Accumulated depreciation on these assets amounts to £22,542 (2022 - £Nil) and £228,209 (2022 - £Nil) respectively. |
Company |
Office |
Improvements | equipment |
to | Plant and | and | Motor |
property | machinery | computers | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Included within the cost of plant & machinery and motor vehicles are assets purchased under hire purchase contracts amounting to £249,694 (2022 - £Nil) and £2,186,093 (2022 - £Nil) respectively. Accumulated depreciation on these assets amounts to £22,542 (2022 - £Nil) and £228,209 (2022 - £Nil) respectively. |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Homewarm Limited |
Registered office: United Kingdom |
Nature of business: Dormant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 100 | 100 |
13. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Insulation stock and consumables | 637,815 | 959,363 |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 11,400,916 | 7,701,766 |
Other debtors | 2,123,703 | 1,995,909 |
Amounts owed by group undertakings | - | - |
Prepayments and accrued income | 878,960 | 779,830 |
14,403,579 | 10,477,505 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Hire purchase contracts (see note 17) | 625,401 | - |
Trade creditors | 3,201,977 | 2,675,428 |
Corporation tax | 462,903 | 207,570 |
Social security and other taxes | 254,293 | 250,136 |
Other creditors | 36,933 | 38,229 |
Amounts due to group undertakings | - | - |
Amounts due to related parties | 250,000 | - |
Directors' current accounts | 250,000 | - |
Accruals and deferred income | 653,887 | 530,537 |
5,735,394 | 3,701,900 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Hire purchase contracts (see note 17) | 1,203,296 | - |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 625,401 | - |
Between one and five years | 1,203,296 | - |
1,828,697 | - |
Company |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
17. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 88,853 | 6,750 |
Between one and five years | 543,026 | 626,420 |
631,879 | 633,170 |
Company |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Hire purchase contracts | 1,828,697 | - | 1,828,697 | - |
The hire purchase contracts are secured against the assets to which they relate. |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 464,379 | 374,633 | 427,301 | 323,320 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 374,633 |
Movement in the year | 89,746 |
Balance at 31 December 2023 | 464,379 |
Company |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Movement in the year | 103,981 |
Balance at 31 December 2023 |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
19. | PROVISIONS FOR LIABILITIES - continued |
Deferred tax is wholly in respect of accelerated capital allowances. |
As described within the accounting policies, the provision for historic installation claims is calculated with reference to past experience in relation to the outcomes of previously closed claims and the final costs of those claims. |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
21. | RESERVES |
Group |
Retained | Merger |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 6,393,231 | 4,253,841 | 10,647,072 |
Profit for the year | 2,004,022 | - | 2,004,022 |
Dividends | (758,400 | ) | - | (758,400 | ) |
At 31 December 2023 | 7,638,853 | 4,253,841 | 11,892,694 |
Company |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2023 |
22. | PENSION COMMITMENTS |
During the period the group made contributions to a defined contribution pension scheme for the benefit of its employees. The total cost for the period amounted to £208,239 (2022 - £170,500). At 31 December 2023 £30,655 (2022 - £36,175) was payable in respect of outstanding pension contributions. |
23. | CONTINGENT ASSETS & LIABILITIES |
The industry has been defending claims alleging sub-standard survey or installation of cavity wall insulation. |
The group continues to successfully defend all claims with the support of its insurance partners and industry stakeholders. |
The volume of claims has reduced significantly with negligible claims received recently and most of the current activity relating to claims is concerned with recovery of defence costs where claims have been discontinued by the claimants. |
Whilst the directors have included accruals for known costs and cost recoveries, there could be further costs and cost recoveries in respect of installations carried out before the end of the reporting period. |
24. | CAPITAL COMMITMENTS |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements | 238,121 | 1,360,075 |
A&M ENERGY GROUP LIMITED (REGISTERED NUMBER: 09586545) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
25. | RELATED PARTY DISCLOSURES |
The group rents two of the premises from which it trades from certain directors and their close family members. The amount paid during the period amounted to £92,000 (2022 - £92,000). Normal commercial terms applied. |
During the year, the company has paid interest of £14,871 (2022 - £Nil) on a loan provided by the director Mr S Atherton. Normal commercial terms applied. |
Also during the year, the company has paid interest of £15,095 on a loan provided by M&M Developments (Wigan) Ltd. A company in which the director, Mr G K Mollard is also a director and shareholder. Normal commercial terms applied. |
During the year, a total of key management personnel compensation of £ 734,963 (2022 - £ 567,619 ) was paid. |