Company registration number 03419833 (England and Wales)
ELECTRA-NET (UK) LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ELECTRA-NET (UK) LIMITED
COMPANY INFORMATION
Directors
M D Henson
R C Holroyd
H Jones
Capita Corporate Director Limited
Secretary
Capita Group Secretary Limited
Company number
03419833
Registered office
65 Gresham Street
London
England
EC2V 7NQ
Banker
Barclays Bank PLC
1 Churchill Place
London
United Kingdom
E14 5HP
ELECTRA-NET (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 6
Directors' report
7 - 8
Income statement
9
Balance sheet
10 - 11
Statement of changes in equity
12
Notes to the financial statements
13 - 32
ELECTRA-NET (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The Directors present their Strategic report and financial statements for the year ended 31 December 2023.

 

Electra-Net (UK) Limited ('the Company') is a wholly owned subsidiary (indirectly held) of Capita plc. Capita plc, along with all its subsidiaries' is hereafter referred to as 'the Group'. The Company operates within Capita Public services divisions of the Group.

Review of the business

The principal activity of the Company continued to be that of designing, delivering and supporting infrastructure solutions, security solutions and IT professional services for both public and private sector clients throughout the UK.

 

As shown in Company's income statement on page 9, revenue has increased from £16,777k in 2022 to £20,009k in 2023 mainly on account of transactional business and new contracts.

The Company's Operating profit has decreased from £1,649k in 2022 to £544k in 2023 due to increase in operational headcount.

In addition, towards the end of 2022 the Group reorganised its technology software and solutions business and group support services business by transferring the underlying trade and assets from various Group companies in the UK into Capita Shared Services Limited (‘CSSL’). CSSL’s principal activity is the provision of certain head office and shared services, such as finance and HR support, payroll, IT and software services, to other companies within the Group. CSSL recovers the cost of providing these shared services by charging the Group companies that benefit from them, including the Company. Prior to the aforementioned reorganisation, the charges for the provision of these services were lower.

 

The balance sheet on pages 10 to 11 of the financial statements shows the financial position at the year end. Net assets have increased from £11,314k in 2022 to £11,294k in 2023 primarily on account of profit earned during the year.

 

Details of the amounts owed by/to its parent company and fellow subsidiary companies are shown in notes 9, 12 and 20 to the financial statements.

 

The key financial performance indicators used by the Group, on a consolidated basis, are adjusted revenue, adjusted profit before tax, adjusted basic/diluted earnings per share, free cash flow excluding business exits, and gearing ratios. The Group manages its operations on a divisional basis and consequently, some of these indicators are monitored at a divisional level. The performance of the Capita Public Services division of the Group is discussed in the Group’s annual report which does not form part of this report.

ELECTRA-NET (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The Company is exposed to a wide range of risks that, should they materialise, could have a detrimental impact on financial performance, reputation or operational resilience. The Company’s risk management framework provides a consistent approach to the identification, assessment, monitoring and reporting of risks and opportunities. The risk management process is based on risk registers and risk reporting at the established risk governance committees. Key risks are documented in the risk registers and have assigned risk owners who review them regularly, and report on them at least quarterly, as part of the risk reporting process. The strength of existing controls is evaluated to determine whether any further mitigating actions are needed to manage the risk level to within the risk appetite set by the Board.

 

The principal risks for the Company are:

 

Profitable growth

Attract new clients and retain existing clients on appropriate commercial terms.

 

Contract performance

Deliver services to clients in line with contractual and legal obligations.

 

Innovation

Innovate and develop new customer value propositions with speed and agility.

 

People attraction and retention

Attract, develop, engage and retain the right talent.

 

Financial stability

Maintain financial stability and achieve financial targets.

 

Cyber security

Protect our systems, networks and programs from unauthorised use and access.

 

ESG

Comply with regulatory and contractual requirements to drive a purpose driven organisation with the right focus on governance.

 

Safety and Health

Protect the safety, health and duty of care of all Capita’s employees, the people we work with and those affected by our activities.

 

Data governance and data privacy

Manage our data effectively (both clients and Capita) as a strategic asset across the organisation.

 

As a subsidiary of Capita plc, the Company is subject to controls and risk governance techniques applied across all the Group's businesses. Details of the specific risk assessments and mitigating actions are outlined on pages 57-63 of the Group's 2023 Annual Report.

ELECTRA-NET (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Section 172 statement

Capita plc’s section 172 statement applies to its Divisions and the Company to the extent it relates to the Company’s activities. Common policies and practices are applied across the Group through divisional management teams and a common governance framework. The following disclosure describes how the Directors have regard to the matters set out in section 172(1)(a) to (f) and forms the Directors’ statement as required under section 414CZA of the Companies Act 2006.

 

Further details of the Group’s approach to each stakeholder are provided in Capita plc’s section 172 statement on pages 45, 46 and 47 of Capita plc’s 2023 Annual Report.

 

Our People

 

Why they are important

They deliver our business strategy; they support the organisation to build a values-based culture; and they deliver our products and services ensuring client satisfaction.

 

What matters to them

Flexible working; learning and development opportunities leading to career progression; fair pay and benefits as a reward for performance; and two-way communication and feedback.

 

How we engaged

 

Topics of engagement

 

Outcomes and actions

The 2023 employee survey showed key indices had either improved or remained steady with a five-point increase in the eNPS compared with 2022. 63% of colleagues who responded felt proud to work at Capita. We are developing and delivering a range of action plans, including ensuring our leaders feel confidence in, and ownership of Capita’s strategy, plans and successes, developing inclusive opportunities for internal career mobility.

 

In December 2023, the Board agreed that while the appointment of employee directors had been successful, it was appropriate for the Board to consider a wider level of engagement with colleagues, including site visits arranged for individual directors to meet with local management and colleagues at Capita’s businesses. In addition, the Board has appointed Nneka Abulokwe as the designated non-executive director to engage with colleagues. Adolfo Hernandez, our new CEO, has also commenced a series of breakfast sessions to meet with colleagues of differing seniority and at different locations throughout the Group. Janine Goodchild stepped down from the Board as an employee director on 31 December 2023.

 

The UK real living wage increase was applied from 1 April 2023. At the end of 2023, we took the difficult decision to withdraw from the UK’s real living wage. Since 2020, the Group has increased the salaries of our lowest earners by 22% and the 2024 real living wage increase of 10.1% was not something we could commit to given the need for Capita to remain cost competitive and reflecting the fact that this is not a cost we are able to pass on to clients.

ELECTRA-NET (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The global career path framework which defines career levels, career job content, and reward framework within Capita was launched during the year.

In October 2023, Capita was recognised by Forbes, as being one of the top companies for women, ranking at number 18 out of 400 global companies on their list.

 

We continued to promote our Speak Up policy throughout the organisation.

 

Risks to stakeholder relationship

 

Key metrics

Voluntary attrition, employee NPS, employee engagement Index and people survey completion level.

 

Clients and customers

 

Why they are important

They are recipients of Capita’s services; and Capita’s reputation depends on consistent and timely delivery of the services they need from us.

 

What matters to them

High-quality service delivery; delivery of transformation projects within agreed timeframes; and responsible and sustainable business credentials.

 

How we engaged

 

Topics of engagement

 

Outcomes and actions

Feedback provided to business units to address any issues raised; client value proposition teams supporting divisions with co-creation ideas; direct customer and sector feedback; and senior client partner programme undertaking client-focused growth sprints to build understanding of client issues and ideas to help address them.

 

Risks to stakeholder relationship

 

Key metrics

Customer NPS; specific feedback on client engagements.

ELECTRA-NET (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

Suppliers and Partners

 

Why they are important

They share our values and help us deliver our purpose; maintain high standards in our supply chain; and achieve social, economic and environmental benefits aligned to the Social Value Act. Our suppliers and partners provide additional expertise, skill and technology, elevating our offering.

 

What matters to them

Payments made within agreed payment terms; clear and fair procurement process; building lasting commercial relationships; and working inclusively with all types of business.

 

How we engaged

 

Topics of engagement

 

Outcomes and actions

Our supplier charter, which is available on our website, remains at the core of strengthening our commitments and sets out how we conduct business in an open, honest and transparent manner, and what we expect of our suppliers. This year, it was refreshed and relaunched.

 

To understand Capita’s Scope 3 carbon footprint, a supplier engagement programme was also undertaken with suppliers accounting for £1bn annual spend (over 50% of the supply chain by spend) to ask them to disclose their carbon emissions to CDP.

 

During 2023, 99% of our suppliers were paid within 60 days.

 

Risks to stakeholder relationship

 

Key metrics

99% of supplier payments within agreed terms; SME spend allocation; and supplier diversity profile.

ELECTRA-NET (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -

Society

 

Why they are important

Capita is a provider of key services to government impacting a large proportion of the population.

 

What matters to them

Social mobility; youth skills and jobs; digital inclusion; diversity and inclusion; climate change; business ethics; accreditations and benchmarking; and cost of living crisis.

 

How we engaged

 

Topics of engagement

 

Outcomes and actions

Youth and employability programme such as Social Shifters; ranked 18 on the Forbes Global list of top employers for women; a 5% reduction in our gender pay gap (compared with 2022); awarded Employer’s Network for Equality and Inclusion; achieved a silver Tidemark and an A CDP (Carbon Disclosure Project) score as well as a silver medal in EcoVadis for Capita plc.

 

Risks to stakeholder relationship

 

Key metrics

Community investment, workforce diversity and ethnicity data, including pay gaps.

H Jones
Director
3 September 2024
ELECTRA-NET (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -

The Directors present their Directors' Report and Financial statements for the year ended 31 December 2023.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid (2022: £nil).

Directors

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

M D Henson
R C Holroyd
H Jones
Capita Corporate Director Limited
Political donations

The Company made no political donations and incurred no political expenditure during the year (2022: £nil).

Environment

The Company recognises the importance of its environmental responsibilities, monitors its impact on the environment, and designs and implements policies to reduce any damage that might be caused by its activities. The Company operates in accordance with Group policies, which are described in the Group’s 2023 annual report that does not form part of this report. Initiatives designed to minimise the Company’s impact on the environment include safe disposal of waste, recycling and reducing energy consumption.

Statement of Directors' responsibilities

The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the Directors are required to:

 

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.

 

They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

ELECTRA-NET (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Qualifying third party indemnity provisions

The Company has granted an indemnity to the directors of the Company against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third-party indemnity provisions remain in force as at the date of approving the directors' report.

 

Strategic Report

In accordance with s414c(11) of the Companies Act 2006, the Company has set out certain information in its Strategic report that is otherwise required to be disclosed in the Directors' report. This includes information regarding results and activities and a description of the principle risks and uncertainties facing the Company.

 

On behalf of the board
H Jones
Director
3 September 2024
ELECTRA-NET (UK) LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£ 000
£ 000
Revenue
3
20,009
16,777
Cost of sales
(17,665)
(13,851)
Gross profit
2,344
2,926
Administrative expenses
(1,800)
(1,277)
Operating profit
4
544
1,649
Net finance (cost)/income
5
(580)
66
(Loss)/profit before tax
(36)
1,715
Income tax credit/(charge)
6
16
(319)
(Loss)/profit and total comprehensive (expense)/income for the year
(20)
1,396

The income statement has been prepared on the basis that all operations are continuing operations.

The notes and information on pages 13 to 32 form an integral part of these financial statements.

ELECTRA-NET (UK) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£ 000
£ 000
Non-current assets
Property, plant and equipment
7
190
102
Intangible assets
8
12,220
12,227
Right-of-use assets
7
123
69
Deferred tax assets
6
287
251
12,820
12,649
Current assets
Trade and other receivables
9
9,230
15,700
Cash and cash equivalents
10
350
-
0
9,580
15,700
Total assets
22,400
28,349
Current liabilities
Trade and other payables
12
9,645
14,288
Deferred income
15
905
466
Lease liabilities
13
63
59
Financial liabilities
11
-
0
2,076
Provisions
14
-
0
18
Income tax payable
442
128
11,055
17,035
Non-current liabilities
Lease liabilities
13
51
-
0
51
-
Total liabilities
11,106
17,035
Net assets
11,294
11,314
ELECTRA-NET (UK) LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
2023
2022
Notes
£ 000
£ 000
- 11 -
Capital and reserves
Issued share capital
16
-
0
-
0
Retained earnings
11,294
11,314
Total equity
11,294
11,314

The notes and information on pages 13 to 32 form an integral part of these financial statements.

For the financial year ended 31 December 2023, the company was entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 of the Companies Act 2006.

The Directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements were approved by the board of directors and authorised for issue on
3 September 2024
03 September 2024
and are signed on its behalf by:
H Jones
Director
Company registration number 03419833 (England and Wales)
ELECTRA-NET (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Retained earnings
Total equity
£ 000
£ 000
£ 000
At 1 January 2022
-
0
9,918
9,918
Profit for the year
-
1,396
1,396
At 31 December 2022
-
0
11,314
11,314
Loss for the year
-
(20)
(20)
At 31 December 2023
-
0
11,294
11,294
Share capital

The balance classified as share capital is the nominal proceeds on issue of the Company's equity share capital, comprising 4 ordinary shares of £1 each.

Retained earnings

Net profits accumulated in the Company after dividends are paid.

The notes and information on pages 13 to 32 form an integral part of these financial statements.

ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
1.1
Basis of preparation

Electra-Net (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 65 Gresham Street, London, England, EC2V 7NQ. The company's principal activities and nature of its operations are disclosed in the Strategic report.

The financial statements have been prepared under the historical cost basis except where stated otherwise and in accordance with applicable accounting standards.

The financial statements are prepared in British pounds sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest thousand pounds ('£ 000'), except wherein stated otherwise.

In determining the appropriate basis of preparation for the annual report and financial statements for the year ended 31 December 2023, the Company’s Directors (‘the Directors’) are required to consider whether the Company can continue in operational existence for the foreseeable future, being a period of at least 12 months following the approval of these financial statements. The Directors have concluded that it is appropriate to adopt the going concern basis, having undertaken a rigorous assessment of the financial forecasts, key uncertainties, sensitivities, and mitigations as set out below.

 

Accounting standards require that ‘the foreseeable future’ for going concern assessment covers a period of at least twelve months from the date of approval of these financial statements, although those standards do not specify how far beyond twelve months the Directors should consider. In its going concern assessment, the Directors have considered the period from the date of approval of these financial statements to 31 December 2025 (‘the going concern period’) and which aligns to the period considered by the Directors of the ultimate parent company, Capita plc.

 

Board assessment

The financial forecasts used for the going concern assessment are derived from financial projections for 2024-2025 for the Company which have been subject to review and challenge by management and the Directors. The Directors have approved the projections.

 

Inter-dependency with Capita plc ('the Group')

The Director’s assessment of going concern has considered the extent to which the Company’s ability to remain a going concern is inter-dependent with that of the Group. The Company has dependency with the Group in respect of the following:

ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -

Given the reliance the Company has on the Group, the Directors have considered the financial position of the ultimate parent undertaking as disclosed in its most recent condensed consolidated financial statements, being for the six months period ended 30 June 2024.

 

Ultimate parent undertaking – Capita plc

The Capita plc Board (‘the Board’) concluded that it was appropriate to adopt the going concern basis, having undertaken a rigorous assessment of the financial forecasts, key uncertainties, sensitivities, and mitigations when preparing the Group’s condensed consolidated financial statements for the period ended 30 June 2024. These condensed consolidated financial statements were approved by the Board on 1 August 2024 and are available on the Group’s website (www.capita.com/investors). Below is a summary of the position at 1 August 2024:

 

Accounting standards require that ‘the foreseeable future’ for going concern assessment covers a period of at least twelve months from the date of approval of these condensed consolidated financial statements, although those standards do not specify how far beyond twelve months a Board should consider. In its going concern assessment, the Board has considered the period from the date of approval of these condensed consolidated financial statements to 31 December 2025, which aligns with a period end and covenant test date for the Group.

 

The base case financial forecasts used in the going concern assessment are derived from financial projections for 2024-2025 business plans as approved by the Board in June 2024.

 

The going concern assessment considers the Group’s sources and uses of liquidity and covenant compliance throughout the period under review.

 

Board Assessment

Under the base case scenario, the Group’s transformation programme and completion of the Portfolio non-core business disposal programme in January 2024 has simplified and strengthened the business and facilitates further efficiency savings enabling sustainable growth in revenue, profit and cash flow over the medium term. When combined with available committed facilities, this allows the Group to manage scheduled debt repayments. The most material sensitivities to the base case are the risk of not delivering the planned revenue growth and efficiency savings from the Group's previously announced restructuring programme.

 

The base case projections used for going concern assessment purposes reflect business disposals completed up to the date of approval of these condensed financial statements and the agreed sale of the Capita One business because the completion of the disposal has been assessed to be highly probable. The liquidity headroom assessment in the base case projections reflects the Group’s existing committed financing facilities and debt redemptions and does not reflect any potential future refinancing. The base case financial forecasts demonstrate liquidity headroom and compliance with all debt covenant measures throughout the going concern period to 31 December 2025.

 

In considering severe but plausible downside scenarios, the Board has taken account of the potential adverse financial impacts resulting from the following risks:

ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

The likelihood of simultaneous crystallisation of the above risks is considered by the directors to be low. Nevertheless, in the event that simultaneous crystallisation were to occur, the Group would need to take action to mitigate the risk of insufficient liquidity and covenant headroom. In its assessment of going concern, the Board has considered the mitigations, under the direct control of the Group, that could be implemented including reductions or delays in capital investment, substantially reducing (or removing in full) bonus and incentive payments. The Board considered the impact of the above risks and mitigations on the Group both in the scenario where the Capita One disposal does occur, and if it were not to occur. In the event of the simultaneous crystallisation of risks and the Capita One disposal does not complete, the Board also considered the ability of the Group to refinance a portion of the 2025 maturing debt. Taking these mitigations into account, the Group’s financial forecasts, in a severe but plausible downside scenario, demonstrate sufficient liquidity headroom and compliance with all debt covenant measures throughout the going concern period to 31 December 2025.true

 

Adoption of going concern basis by the Group:

Reflecting the levels of liquidity and covenant headroom in the base case and severe but plausible downside scenario, the Group continues to adopt the going concern basis in preparing these consolidated financial statements. The Board has concluded that the Group will be able to continue in operation and meet its liabilities as they fall due over the period to 31 December 2025.

 

Conclusion

Although the Company has a reliance on the Group as detailed above, even in a severe but plausible downside for both the Company and the Group, the Directors are confident the Company will continue to have adequate financial resources to continue in operation and discharge its liabilities as they fall due over the period to 31 December 2025 (the ‘going concern period’). Consequently, the annual report and financial statements have been prepared on the going concern basis.

 

1.2
Compliance with accounting standards

The Company has applied FRS101 – Reduced Disclosure Framework in the preparation of its financial statements.

 

The Company has prepared and presented these financial statements by applying the recognition, measurement and disclosure requirements of international accounting standards in conformity with the requirements of the Companies Act 2006.

 

The Company's ultimate parent company, Capita plc, includes the Company in its consolidated statements. The consolidated financial statements are prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and with UK-adopted International Financial Reporting Standards ('IFRSs') and the Disclosure and the Transparency Rules of the UK's Financial Conduct Authority. They are available to the public and may be obtained from Capita plc’s website on https://www.capita.com/investors .

 

In these financial statements, the Company has applied the disclosure exemptions available under FRS 101 in respect of the following disclosures:

 

Since the consolidated financial statements of Capita plc include equivalent disclosures, the Company has also taken the disclosure exemptions under FRS 101 available in respect of the following disclosure:

ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Change in accounting policies

The Company has adopted the new amendments to standards detailed below but they do not have a material effect on the Company's financial statements.

New amendments or interpretations

Effective date

IFRS 17 Insurance Contracts and amendments to IFRS 17 Insurance Contracts

1 January 2023

Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)    

1 January 2023

Definition of Accounting Estimates (Amendments to IAS 8)

1 January 2023

Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)

1 January 2023

International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12)

1 January 2023

ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.4
Revenue

The Company operates a diverse range of businesses and accordingly applies a variety of methods for revenue recognition, based on the principles set out in IFRS 15.

 

The revenue and profits recognised in any period are based on the delivery of performance obligations and an assessment of when control is transferred to the customer.

 

In determining the amount of revenue and profits to record, and related balance sheet items (such as contract fulfilment assets, capitalisation of costs to obtain a contract, trade receivables, accrued income and deferred income) to recognise in the period, management is required to form a number of key judgements and assumptions. This includes an assessment of the costs the Company incurs to deliver the contractual commitments and whether such costs should be expensed as incurred or capitalised. These judgements are inherently subjective and may cover future events such as the achievement of contractual milestones, performance KPIs and planned cost savings.

 

Revenue is recognised either when the performance obligation in the contract has been performed (so ‘point-in-time’ recognition) or ‘over-time’ when control of the performance obligation is transferred to the customer.

 

For all contracts, the Company determines if the arrangement with a customer creates enforceable rights and obligations. This assessment results in certain Master Service Agreements ('MSAs') or frameworks not meeting the definition of a contract under IFRS 15 and as such the individual call-off agreements, linked to the MSA, are treated as individual contracts.

 

Transactional (point in time) contracts

The Company delivers a range of goods or services in all reportable segments that are transactional services for which revenue is recognised at the point in time when control of the goods or services has transferred to the customer. This may be at the point of physical delivery of goods and acceptance by a customer or when the customer obtains control of an asset or service in a contract with customer-specified acceptance criteria.

 

Contract modifications

The Company’s contracts are often amended for changes in contract specifications and requirements. Contract modifications exist when the amendment either creates new or changes existing, enforceable rights and obligations.

 

The effect of a contract modification on the transaction price and the Company’s measure of progress for the performance obligation to which it relates, is recognised as an adjustment to revenue in one of the following ways:

a) prospectively as an additional separate contract;

b) prospectively as a termination of the existing contract and creation of a new contract;

c) as part of the original contract using a cumulative catch up; or

d) as a combination of (b) and (c).

 

In respect of contracts for which the Company has decided there is a series of distinct goods and services that are substantially the same and have the same pattern of transfer where revenue is recognised over-time, the modification will always be treated under either (a) or (b); (d) may arise when a contract has a part-termination and a modification of the remaining performance obligations.

ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Revenue (continued)

The facts and circumstances of any contract modification are considered individually because the types of modifications will vary contract by contract and may result in different accounting outcomes. Judgement is applied in relation to the accounting for such modifications where the final terms or legal contracts have not been agreed prior to the period end. In these cases management need to determine if a modification has been approved and if it either creates new or changes existing, enforceable rights and obligations of the parties. Depending upon the outcome of such negotiations, the timing and amount of revenue recognised may be different in the relevant accounting periods. Modification and amendments to contracts are undertaken through an agreed formal process. For example, if a change in scope has been approved but the corresponding change in price is still being negotiated, management uses its judgement to estimate the change to the total transaction price. Importantly, any variable consideration is only recognised to the extent that it is highly probable that no revenue reversal will occur.

 

Contract related assets and liabilities

As a result of the contracts which the Company enters into with its customers, a number of different assets and liabilities are recognised on the Company’s balance sheet. These include but are not limited to:

 

Contract fulfilment costs

Contract fulfilment costs are divided into: (i) costs that give rise to an asset; and (ii) costs that are expensed when incurred.

 

When determining the appropriate accounting treatment for such costs, the Company firstly considers any other applicable standards. If those other standards preclude capitalisation of a particular cost, then an asset is not recognised under IFRS 15.

 

If other standards are not applicable to contract fulfilment costs, the Company applies the following criteria which, if met, result in capitalisation of costs that: (i) directly relate to a contract or to a specifically identifiable anticipated contract; (ii) generate or enhance resources that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and (iii) are expected to be recovered.

 

Deferred and accrued income

The Company’s customer contracts include a diverse range of payment schedules dependent upon the nature and type of goods and services being provided. The Company often agrees payment schedules at the inception of long term contracts under which it receives payments throughout the term of the contracts. These payment schedules may include performance-based payments or progress payments as well as regular monthly or quarterly payments for ongoing service delivery. Payments for transactional goods and services may be at delivery date, in arrears or part payment in advance.

 

Where payments made are greater than the revenue recognised at the period end date, the Company recognises a deferred income contract liability for this difference. Where payments made are less than the revenue recognised at the period end date, the Company recognises an accrued income contract asset for this difference.

ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.5
Goodwill

Following initial recognition, goodwill is stated at cost less any accumulated impairment losses. Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired.

 

At the acquisition date, any goodwill acquired is allocated to the cash-generating units ('CGU') which are expected to benefit from the combination’s synergies. Impairment is determined by assessing the recoverable amount of the CGU to which the goodwill relates. Where the recoverable amount of the CGU is less than the carrying amount, an impairment loss is recognised. Where goodwill forms part of a CGU and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in these circumstances is measured on the basis of the relative values of the operation disposed of and the portion of the CGU retained.

1.6
Intangible assets other than goodwill

Intangible assets are valued at cost less accumulated amortisation and impairment. Amortisation is calculated to write-off the cost in equal annual instalments over asset's estimated useful life, which is typically 5 years. In the case of capitalised software development costs, research expenditure is written-off to the income statement in the period in which it is incurred.

 

Development expenditure is written-off in the same way unless and until the Company is satisfied with the technical, commercial and financial viability of individual projects. In these cases, the development expenditure is capitalised and amortised over the period during which the Company is expected to benefit.

1.7
Property, plant and equipment

Property, plant and equipment are stated at cost less depreciation and impairment. Depreciation is provided at rates calculated to write-off the cost less estimated residual value of each asset over its expected useful life, as follows:

Computer equipment
33% straight line basis
1.8
Impairment of tangible and intangible assets

At each reporting date, the Company assesses whether there is any indication that an asset may be impaired. Where an indicator of impairment exists, the Company makes a formal estimate of the asset's recoverable amount. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The recoverable amount is the higher of an asset's or cash-generating unit's fair value less costs to sell and its value in use is determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the asset.

ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.9
Financial instruments

Trade and other receivables

Trade receivables are initially recognised at cost (being the same as fair value) and subsequently at amortised cost less any provision for impairment, to ensure the amounts recognised represent their recoverable amount.

 

For trade receivables, the Company applies the simplified approach permitted by IFRS 9 Financial instruments, resulting in trade receivables recognised and carried at original invoice amount less an allowance for any uncollectible amounts based on expected credit losses. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

 

The Company monitors the level of trade receivables on a monthly basis, continually assessing the risk of default by any counterparty. Each customer has an external credit score which determines the level of credit provided.

 

Derecognition: A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised (i.e., removed from the Company’s balance sheet) when (i) the rights to receive the cash flows from the asset have expired; or, (ii) the Company has transferred its right to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risk and rewards of the asset; or, (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

 

Trade and other payables

Trade and other payables are recognised initially at cost (being same as fair value). Subsequent to initial recognition they are measured at amortised cost using the effective interest method.

 

Cash and cash equivalents

Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short-term deposits with original maturities of three months or less that are readily convertible in to known amounts of cash and which are subject to an insignificant risk of change in value. Bank overdrafts are shown within current financial liabilities.

Impairment

The Company assesses, on a forward-looking basis, the expected credit losses associated with its financial instruments carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

1.10
Taxation

Tax on the profit or loss 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 directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -

Taxation (continued):

 

Deferred tax is provided, using the liability method, on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

 

Deferred tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax assets and unused tax losses can be utilised, except where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

 

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.

 

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.

1.11
Provisions

Provisions are recognised when the Company has a present legal or constructive obligation arising from past events, it is probable that cash will be paid to settle it, and the amount can be estimated reliably. Where the Company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when recovery is virtually certain.

 

If the effect of the time value of money is material, provisions are discounted using the yield on government bonds which have a similar timing and currency of cash flows to the provision being discounted. Where required adjustments are made to the yields to reflect the risks specific to the cash flows being discounted. The unwinding of the discount is recognised as a financing cost in the income statement.

 

The value of the provision is determined based on assumptions and estimates in relation to the amount, timing and likelihood of actual cash flows, which are dependent on future events. Where no reliable basis of estimation can be made, no provision is recorded. However, contingent liabilities disclosures are given when there is a greater than remote probability of outflow of economic benefits.

 

On an ongoing basis, management monitor provisions and their accurate estimation when compared to final outcomes.

1.12
Pensions

The Company participates in a number of defined contribution pension schemes and for these schemes the Company has no further payment obligations once the contributions have been paid. The contributions are recognised as an employee benefit expense in the income statement as the related service is provided and as they fall due.

ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.13
Leases

The Company leases land and buildings.

 

The determination whether an arrangement is, or contains, a lease is based on whether the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. At the inception of the lease, the Company recognises a right-of-use asset at cost, which comprises the present value of minimum lease payments determined at the inception of the lease. Right-of-use assets are depreciated using the straight-line method over the shorter of estimated life or the lease term.

 

Depreciation is included within administrative expenses in the income statement. Amendment to lease terms resulting in a change in payments or the length of the lease results in an adjustment to the right-of-use asset and liability. Right-of-use assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be fully recoverable. Right-of-use assets exclude leases with low values and terms of twelve months or less.

The Company as a lessee - Right-of-use assets and lease liabilities

The Company recognises lease liabilities where a lease contract exists and right-of-use assets representing the right to use the underlying leased assets. At lease commencement date, the Company recognises lease liabilities measured at the present value of the lease payments to be made over the lease term.

 

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, over a similar term and with a similar security, the funds necessary to acquire an asset of a similar value to the right-of-use asset in a similar economic environment. Incremental borrowing rates are determined monthly and depend on the term, currency and start date of the lease. The incremental borrowing rate is determined based on a series of inputs including: the risk-free rate based on swap market data; a credit risk adjustment; and an entity-specific adjustment. The lease liability is subsequently remeasured (with a corresponding adjustment to the related right-of-use asset) when there is a change in future lease payments due to a renegotiation or market rent review, a change of an index or rate or a reassessment of the lease term.

 

Lease payments are apportioned between a finance charge and a reduction of the lease liability based on the constant interest rate applied to the remaining balance of the liability. Interest expense is included within net finance costs in the income statement. Lease payments comprise fixed payments, including in-substance fixed payments such as service charges and variable lease payments that depend on an index or a rate, initially measured using the minimum index or rate at inception date. The payments also include any lease incentives and any penalty payments for terminating the lease, if it is anticipated that the Company will exercise that option.

 

The lease term determined comprises the non-cancellable period of the lease contract. Periods covered by an option to extend the lease are included if the Company has reasonable certainty that the option will be exercised, and periods covered by an option to terminate are included if it is reasonably certain that this will not be exercised.

 

The Company has elected to apply the practical expedient in IFRS 16 paragraph 15 not to separate non-lease components such as service charges from lease rental charges.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -

Leases (continued):

 

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.14
Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated into British pounds sterling at the rates of exchange ruling at the balance sheet date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Transactions in foreign currencies are recorded at the rate of exchange ruling at the date of the transaction. All foreign exchanges gains/losses are recognised in the income statement.

1.15
Current vs Non-current classification

The Company presents assets and liabilities in the balance sheet based on whether they are current or non-current.

 

An asset is current when it is:

 

All other assets are classified as non-current.

 

A liability is current when:

 

The Company classifies all other liabilities as non-current.

ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
2
Significant accounting judgements, estimates and assumptions

The preparation of financial statements in accordance with generally accepted accounting principles requires the directors to make judgements and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies at the date of the financial statements and the reported income and expense during the presented periods. Although these judgements and assumptions are based on the directors’ best knowledge of the amount, events or actions, actual results may differ.

 

The key sources of estimation uncertainty that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are the measurement of revenue and profit recognition on certain contractual arrangements.

 

The measurement of revenue and resulting profit recognition - due to the size and complexity of some of the Company's contracts, there are judgements to be applied, including the measurement and timing of revenue recognition and the recognition of assets and liabilities, including an assessment of onerous contract, that result from the performance of the contract (see note 1.4).

3
Revenue

The total revenue of the Company for the year has been derived from its principal activity largely undertaken in the United Kingdom.

4
Operating Profit
Notes
2023
2022
Operating Profit for the year is stated after charging/(crediting):
£ 000
£ 000
Income from foreign exchange differences
(1)
-
0
Depreciation of property, plant and equipment
7
64
105
Depreciation of right-of-use assets
7
79
77
Amortisation of intangible assets
8
7
9
Short term lease rentals
589
377
5
Net finance (cost)/income
2023
2022
£ 000
£ 000
Interest income
Interest receivable from Group companies
-
0
101
-
0
101
Interest expense
Interest expense on bank overdrafts and loans
(49)
(31)
Interest payable to Group companies
(529)
-
0
Interest expense on lease liabilities
(2)
(4)
(580)
(35)
Total net finance (cost)/income
(580)
66
ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
6
Income tax
The major components of income tax (credit)/charge are:
2023
2022
£ 000
£ 000
Current tax
UK corporation tax
19
351
Adjustments in respect of prior periods
1
25
20
376
Deferred tax
Origination and reversal of temporary differences
(26)
(25)
Adjustment in respect of prior periods
(10)
(32)
(36)
(57)
Total tax (credit)/charge
(16)
319
ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Income tax
(Continued)
- 26 -

The charge for the year can be reconciled to the (loss)/profit per the income statement as follows:

2023
2022
£ 000
£ 000
(Loss)/profit before taxation
(36)
1,715
Expected tax (credit)/charge based on the weighted average Corporation Tax rate of 23.52% (2022: 19.00%)
(8)
326
Expenses not deductible for tax purpose
3
1
Impact of changes in statutory tax rates
(2)
(1)
Current year deferred income tax unrecognised
-
25
Adjustment in respect of deferred income tax of prior years
(9)
(32)
Total adjustments
(8)
(7)
Total tax (credit)/charge reported in the income statement
(16)
319
Balance sheet
Income statement
2023
2022
2023
2022
£ 000
£ 000
£ 000
£ 000
Deferred tax assets
Decelerated capital allowances
287
251
(36)
(57)
Deferred tax assets
287
251
Deferred tax credit to income statement
(36)
(57)
ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
7
Property, plant and equipment
Computer equipment
£ 000
Cost
At 1 January 2023
183
Additions
152
Asset retirement
(66)
At 31 December 2023
269
Accumulated depreciation and impairment
At 1 January 2023
81
Charge for the year
64
Asset retirement
(66)
At 31 December 2023
79
Net book value
At 31 December 2023
190
At 31 December 2022
102
Right-of-use assets
Land and buildings
Equipment
Total
£ 000
£ 000
£ 000
Net book value at 1 January 2023
69
-
0
69
Additions
131
2
133
Depreciation charge
(77)
(2)
(79)
Net book value at 31 December 2023
123
-
0
123
ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
8
Intangible assets
Goodwill
Software
Total
£ 000
£ 000
£ 000
Cost
At 1 January 2023
12,209
34
12,243
At 31 December 2023
12,209
34
12,243
Amortisation and impairment
At 1 January 2023
-
0
16
16
Charge for the year
-
0
7
7
At 31 December 2023
-
0
23
23
Net book value
At 31 December 2023
12,209
11
12,220
At 31 December 2022
12,209
18
12,227
9
Trade and other receivables
Current
2023
2022
£ 000
£ 000
Trade receivables
2,290
2,514
Contract fulfilment assets
536
236
Amounts due from Group companies
5,239
12,064
Accrued income
1,106
833
Prepayments
59
53
9,230
15,700

Amounts due from group companies are repayable on demand.

10
Cash and cash equivalents
2023
2022
£ 000
£ 000
Cash at bank and in hand
350
-
0
350
-
0
ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
11
Financial liabilities
Current
2023
2022
£ 000
£ 000
Bank overdrafts
-
0
2,076
-
0
2,076
12
Trade and other payables
Current
2023
2022
£ 000
£ 000
Trade payables
2,015
1,054
Amount due to Group companies
6,974
12,778
Accruals
257
127
Other taxes and social security
386
315
Other payables
13
14
9,645
14,288

Amounts due to group companies are repayable on demand. These are not chargeable to interest except for the amounts due to Capita Plc, on which interest is charged as per the prevailing Bank of England rates.

13
Lease liabilities

Lease liabilities are classified based on the amounts that are expected to be settled within the next twelve months and after more than twelve months from the reporting date, as follows:

2023
2022
£ 000
£ 000
Current liabilities
63
59
Non-current liabilities
51
-
0
114
59
2023
2022
Amounts recognised in the income statement include the following:
£ 000
£ 000
Interest on lease liabilities
2
4
ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Lease liabilities
(Continued)
- 30 -
2023
2022
Maturity analysis - contractual undiscounted cash flows
£ 000
£ 000
Less than one year
70
60
One to two years
53
-
0
Total undiscounted liabilities at 31 December
123
60
14
Provisions
2023
2022
£ 000
£ 000
Current
-
18
-
0
18
Property
£ 000
At 1 January 2023
18
Additions made during the year
30
Released during the year
(48)
At 31 December 2023
-
0

The Company is required to perform repairs on leased properties prior to the properties being vacated at the end of their lease term. A Property provision for such costs is made where a legal obligation is identified and the liability can be reasonably quantified.

15
Deferred income
2023
2022
£ 000
£ 000
Current
Deferred income
905
466
905
466
16
Share capital
2023
2022
2023
2022
Number
Number
£
£
Allotted, called up and fully paid
Ordinary shares of £1 each
At 1 January and 31 December
4
4
4
4
ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
17
Employee benefits

The total costs charged to income in respect of defined contribution plans is £179k (2022 - £121k).

18
Employees

The average monthly number of employees (including non-executive Directors) were:

2023
2022
Number
Number
Sales
1
3
Operation
122
88
Admin
5
4
Total
128
95

Their aggregate remuneration comprised:

2023
2022
£ 000
£ 000
Wages and salaries
5,662
4,430
Social security costs
632
499
Pension costs
179
121
6,473
5,050

The above includes payroll costs for temporary staff as well as recharges from other Group entities in respect of various services received by the Company throughout the year.

19
Directors' remuneration
2023
2022
£ 000
£ 000
Remuneration for qualifying services
357
118
Company pension contributions to defined contribution schemes
12
5
369
123

One Director is paid by the Company (2022 : One). For qualifying services provided by this Director on the Company's affairs, Directors’ remuneration has been allocated to the Company during the period of their directorship. The Directors of the Company were also reimbursed for the expenses incurred by them whilst performing business responsibilities.

 

One Director, who provided qualifying services on the Company’s affairs, was paid by another entity within Capita Group, and no remuneration has not been allocated to the Company but is disclosed above. The other Directors have not provided qualifying services to the Company and are paid by the other Companies within the Capita Group. In addition, the Directors of the Company were reimbursed for the expenses incurred by them whilst performing business responsibilities.

ELECTRA-NET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Directors' remuneration
(Continued)
- 32 -

The number of directors who exercised share options during the year was one (2022 - Nil).

The number of directors who are entitled to receive shares under long term incentive schemes during the year was one (2022 - Nil).

20
Related party transactions
The following table provides the total amount of transactions that have been entered into with related parties for the relevant financial year:
Nature of Transaction
Name of Company
Year
Enterprises over which Company exercises significant influence
Trade Receivables
Entrust Support Services Limited
December 31, 2023
0*
December 31, 2022
0*
Total
December 31, 2023
0*
December 31, 2022
0*
* less than £1000
21
Controlling party

The Company's immediate parent company is Capita Business Services Limited, a company incorporated in England and Wales. The Company's ultimate parent company is Capita plc, a company incorporated in England and Wales. The financial statements of Capita plc are available from the registered office at 65 Gresham Street, London, England, EC2V 7NQ.

22
Post balance sheet date events

There are no significant post balance sheet events.

2023-12-312023-01-01M D HensonR C HolroydH JonesCapita Corporate Director LimitedCapita Group Secretary LimitedfalseCCH SoftwareiXBRL Review & Tag 2022.2The company is not entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companiesThe accounts have not been prepared in accordance with the provisions of the small companies regime034198332023-01-012023-12-3103419833bus:Director12023-01-012023-12-3103419833bus:Director22023-01-012023-12-3103419833bus:Director32023-01-012023-12-3103419833bus:Director42023-01-012023-12-3103419833bus:CompanySecretary12023-01-012023-12-3103419833bus:RegisteredOffice2023-01-012023-12-3103419833bus:Agent12023-01-012023-12-31034198332023-12-31034198332022-01-012022-12-3103419833core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31034198332022-12-3103419833core:Goodwillcore:ContinuingOperations2023-12-3103419833core:ComputerSoftware2023-12-3103419833core:Goodwill2022-12-3103419833core:ComputerSoftware2022-12-3103419833core:Non-currentFinancialInstruments2023-12-3103419833core:Non-currentFinancialInstruments2022-12-3103419833core:CurrentFinancialInstruments2023-12-3103419833core:CurrentFinancialInstruments2022-12-3103419833core:WithinOneYear2023-12-3103419833core:WithinOneYear2022-12-3103419833core:WithinOneYearcore:ContractualUndiscountedValue2023-12-3103419833core:WithinOneYearcore:ContractualUndiscountedValue2022-12-3103419833core:BetweenOneTwoYearscore:ContractualUndiscountedValue2023-12-3103419833core:BetweenOneTwoYearscore:ContractualUndiscountedValue2022-12-3103419833core:ShareCapital2023-12-3103419833core:ShareCapital2022-12-3103419833core:RetainedEarningsAccumulatedLosses2023-12-3103419833core:RetainedEarningsAccumulatedLosses2022-12-3103419833core:ShareCapital2021-12-3103419833core:RetainedEarningsAccumulatedLosses2021-12-31034198332021-12-3103419833core:Goodwill2023-01-012023-12-3103419833core:LeasedAssets2023-01-012023-12-3103419833core:LeasedAssets2022-01-012022-12-3103419833core:TaxLossesCarry-forwardsDeferredTax2023-12-3103419833core:TaxLossesCarry-forwardsDeferredTax2022-12-3103419833core:TaxLossesCarry-forwardsDeferredTax2023-01-012023-12-3103419833core:TaxLossesCarry-forwardsDeferredTax2022-01-012022-12-3103419833core:ComputerEquipment2022-12-3103419833core:ComputerEquipment2023-12-3103419833core:ComputerEquipment2023-01-012023-12-3103419833core:LandBuildingscore:Right-of-useAssets2023-01-012023-12-3103419833core:OfficeEquipmentcore:Right-of-useAssets2023-01-012023-12-3103419833core:Right-of-useAssets2023-01-012023-12-3103419833core:ComputerEquipment2022-12-3103419833core:LandBuildingscore:Right-of-useAssets2022-12-3103419833core:OfficeEquipmentcore:Right-of-useAssets2022-12-3103419833core:Right-of-useAssets2022-12-3103419833core:LandBuildingscore:Right-of-useAssets2023-12-3103419833core:OfficeEquipmentcore:Right-of-useAssets2023-12-3103419833core:Right-of-useAssets2023-12-3103419833core:Goodwill2023-12-3103419833core:Goodwill2022-12-3103419833core:ComputerSoftware2022-12-31034198332022-12-3103419833core:ComputerSoftware2023-01-012023-12-3103419833core:CurrentFinancialInstruments12023-12-3103419833core:CurrentFinancialInstruments12022-12-3103419833core:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities2022-12-3103419833core:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities2023-12-3103419833core:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities2023-01-012023-12-310341983312023-01-012023-12-3103419833bus:PrivateLimitedCompanyLtd2023-01-012023-12-3103419833bus:FRS1012023-01-012023-12-3103419833bus:AuditExempt-NoAccountantsReport2023-01-012023-12-3103419833bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP