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Registration number: 02805846

Elmhurst Energy Systems Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Elmhurst Energy Systems Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Profit and Loss Account

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13 to 25

 

Elmhurst Energy Systems Limited

Company Information

Directors

S. J. O'Hara

M. H. Reed

G. N. Dunn

P. Barry

T. Lakhani

S. A. Fairlie

R. L. Rostas

Registered office

Unit 16
St. Johns Business Park
Lutterworth
Leicestershire
LE17 4HB

Auditors

Robert Whowell & Partners LLP
Chartered Accountants and Statutory Auditor
Westwood House
78 Loughborough Road
Quorn
Loughborough
Leicestershire
LE12 8DX

 

Elmhurst Energy Systems Limited

Strategic Report for the Year Ended 31 December 2023

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

Principal activity

The principal activity of the company is energy efficiency surveyors and suppliers of software.

Fair review of the business

The company has enjoyed a year of strong growth as the business continues to expand sales through the existing sales network and from the introduction of new income streams which have been transferred from a fellow subsidiary company during the year.

Turnover has increased by 36.2% during the year and the business maintained its profit margins.

The business continued to be cash generative and without the existence of any long term debt within the company. The net assets increased by £1m to £2.7m at the year end.

The board are pleased with the year under review and look forward to reporting continued profitability in the foreseeable future.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£'000

14,289

10,493

Gross profit margin

%

70

71

Net assets

£'000

2,709

1,686

Principal risks and uncertainties

The directors consider the key risk facing the business as being the genral macro-economic market and its potential impact on its customers. Trading conditions continue to be challenging. Competition, alternative product availability and inflation are all areas requiring the close attention of the senior management team. The directors continue to closely monitor and control all aspects of the trading operations.

 

Elmhurst Energy Systems Limited

Strategic Report for the Year Ended 31 December 2023

Economic impact of global events

UK businesses are currently facing uncertainties such as the consequences of Covid 19, environmental sustainability, economic downturn and geopolitical events such as recent, high profile conflicts which have an impact on the global economy. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, high interest rates, labour shortages, disrupted supply chains and new ways of working.

The directors have carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures and have concluded that these are non-adjusting events with the greatest impact on the business expected to be from the economic ripple effect on the global economy. The directors have taken account of these potential impacts in their going concern assessment.

The company continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may present themselves to the business.

Approved and authorised by the Board on 17 May 2024 and signed on its behalf by:
 

.........................................
S. J. O'Hara
Director

 

Elmhurst Energy Systems Limited

Directors' Report for the Year Ended 31 December 2023

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

Directors of the company

The directors who held office during the year were as follows:

S. J. O'Hara

M. H. Reed

G. N. Dunn

P. Barry

T. Lakhani

D. G. Harrison (ceased 20 November 2023)

S. A. Fairlie

R. L. Rostas (appointed 20 November 2023)

Information included in the Strategic Report

As permitted by paragraph 1A of schedule 7 to large and medium-sized companies and groups (accounts and reports) regulations 2008 certain matters which are required to be disclosed in the directors' report have been omitted as they are included in the strategic report.

Future developments

The company plans to continue as energy efficiency surveyors and supplies of software for the foreseeable future. The company is constantly developing its software to ensure that the software remains the leading software on the market.

Going concern

Having carefully reviewed its forecasts, the directors consider the company has adequate resources to continue in operational existence for the foreseeable future. As a result, the directors continue to prepare the financial statements on the going concern basis.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 17 May 2024 and signed on its behalf by:
 

.........................................
S. J. O'Hara
Director

 

Elmhurst Energy Systems Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Elmhurst Energy Systems Limited

Independent Auditor's Report to the Members of Elmhurst Energy Systems Limited

Opinion

We have audited the financial statements of Elmhurst Energy Systems Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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.

 

Elmhurst Energy Systems Limited

Independent Auditor's Report to the Members of Elmhurst Energy Systems Limited

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

 

Elmhurst Energy Systems Limited

Independent Auditor's Report to the Members of Elmhurst Energy Systems Limited

Auditor 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 an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

enquiring of management, including obtaining and reviewing supporting documentation, concerning the company's policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they had knowledge of any actual, suspected or alleged fraud; and the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.

we obtained an understanding of the legal and regulatory frameworks applicable to the company based on our understanding of the company, sector experience and discussions with management. The most significant considerations for the company are the Companies Act 2006, Corporate and VAT legislation, Employment Taxes, Health and Safety and the Bribery Act 2010.

discussing amongst the engagement team, to assess how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas: management override of control; and revenue recognition, specifically the manipulation of revenue using fraudulent journals.

we tested the appropriateness of accounting journals and other adjustments made in the preparation of the financial statements.

we reviewed the company's accounting policies for non-compliance with relevant standards. Our work also included considering significant accounting estimates for evidence of misstatement or possible bias and testing any significant transactions that appeared to be outside the normal course of business.

we critically assessed the appropriateness and tested the application of the revenue policies.

 

Elmhurst Energy Systems Limited

Independent Auditor's Report to the Members of Elmhurst Energy Systems Limited

 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 an auditor’s report 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.

............................................................................
Paul Johnson FCA (Senior Statutory Auditor)
For and on behalf of Robert Whowell & Partners LLP, Statutory Auditor

Westwood House
78 Loughborough Road
Quorn
Loughborough
Leicestershire
LE12 8DX

21 May 2024

 

Elmhurst Energy Systems Limited

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

14,289,492

10,493,350

Cost of sales

 

(4,340,497)

(3,092,623)

Gross profit

 

9,948,995

7,400,727

Administrative expenses

 

(2,417,504)

(1,924,502)

Operating profit

4

7,531,491

5,476,225

Other interest receivable and similar income

5

31,475

41,104

Interest payable and similar expenses

6

-

(3,753)

   

31,475

37,351

Profit before tax

 

7,562,966

5,513,576

Tax on profit

10

(1,740,459)

(1,055,294)

Profit for the financial year

 

5,822,507

4,458,282

The above results were derived from continuing operations.

 

Elmhurst Energy Systems Limited

(Registration number: 02805846)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

11

532,571

368,442

Tangible assets

12

72,249

109,065

 

604,820

477,507

Current assets

 

Stocks

13

2,011

2,272

Debtors

14

11,141,765

2,321,684

Cash at bank and in hand

15

3,475,283

1,371,257

 

14,619,059

3,695,213

Creditors: Amounts falling due within one year

16

(12,367,157)

(2,375,188)

Net current assets

 

2,251,902

1,320,025

Total assets less current liabilities

 

2,856,722

1,797,532

Provisions for liabilities

17

(147,896)

(111,213)

Net assets

 

2,708,826

1,686,319

Capital and reserves

 

Called up share capital

19

100

100

Capital redemption reserve

20

1,900

1,900

Non-distributable reserve

20

3,662

9,154

Retained earnings

20

2,703,164

1,675,165

Shareholders' funds

 

2,708,826

1,686,319

Approved and authorised by the Board on 17 May 2024 and signed on its behalf by:
 

.........................................
S. J. O'Hara
Director

 

Elmhurst Energy Systems Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Capital redemption reserve
£

Non- distributable reserve
£

Retained earnings
£

Total
£

At 1 January 2023

100

1,900

9,154

1,675,165

1,686,319

Profit for the year

-

-

-

5,822,507

5,822,507

Other comprehensive income

-

-

(5,492)

5,492

-

Total comprehensive income

-

-

(5,492)

5,827,999

5,822,507

Dividends

-

-

-

(4,800,000)

(4,800,000)

At 31 December 2023

100

1,900

3,662

2,703,164

2,708,826

Share capital
£

Capital redemption reserve
£

Non- distributable reserve
£

Retained earnings
£

Total
£

At 1 January 2022

100

1,900

11,443

1,164,594

1,178,037

Profit for the year

-

-

-

4,458,282

4,458,282

Other comprehensive income

-

-

(2,289)

2,289

-

Total comprehensive income

-

-

(2,289)

4,460,571

4,458,282

Dividends

-

-

-

(3,950,000)

(3,950,000)

At 31 December 2022

100

1,900

9,154

1,675,165

1,686,319

 

Elmhurst Energy Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 16
St. Johns Business Park
Lutterworth
Leicestershire
LE17 4HB

These financial statements were authorised for issue by the Board on 17 May 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Summary of disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
- the requirements of Section 7 Statement of Cash Flows;
- the requirements of Section 33 Related Party Disclosures paragraph 33.7.

Name of parent of group

These financial statements are consolidated in the financial statements of TIC Holdco Limited.

The financial statements of TIC Holdco Limited may be obtained from Companies House, Crown Way, Maindy, Cardiff.

 

Elmhurst Energy Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

Revenue from the sale of goods and services is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account except that a change attritutable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold improvements

over the period of the lease

Fixtures, fittings and computer equipment

20% and 50% on cost

Motor vehicles

20% on cost

 

Elmhurst Energy Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

5 years

Software development

20% on cost

Investments

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

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

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtor.

 

Elmhurst Energy Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2023
 £

2022
 £

Sale of goods - UK

14,289,492

10,493,350

 

Elmhurst Energy Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

4

Operating profit

Arrived at after charging:

2023
 £

2022
 £

Depreciation

40,790

41,323

Amortisation

108,492

44,559

Loss on disposal of property, plant and equipment

3,524

55

5

Other interest receivable and similar income

2023
 £

2022
 £

Interest income on bank deposits

31,475

41,104

6

Interest payable and similar expenses

2023
 £

2022
 £

Interest expense on other finance liabilities

-

3,753

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

3,259,417

2,792,430

Social security costs

385,963

290,618

Pension costs, defined contribution scheme

128,276

95,056

3,773,656

3,178,104

 

Elmhurst Energy Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Production

57

46

Administration and support

28

25

85

71

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
 £

2022
 £

Remuneration

421,667

437,589

Contributions paid to money purchase schemes

33,735

16,117

455,402

453,706

During the year two of the directors accrued amounts totalling approximately £280,840 on a long term incentive bonus scheme. This is to be paid in 2025.

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
 No.

2022
 No.

Accruing benefits under money purchase pension scheme

2

2

In respect of the highest paid director:

2023
 £

2022
 £

Remuneration

173,874

177,834

Company contributions to money purchase pension schemes

-

11,253

9

Auditors' remuneration

2023
 £

2022
 £

Audit of the financial statements

20,000

15,659


 

 

Elmhurst Energy Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

10

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

1,712,322

945,344

UK corporation tax adjustment to prior periods

-

15,802

1,712,322

961,146

Deferred taxation

Arising from origination and reversal of timing differences

34,721

88,759

Arising from changes in tax rates and laws

(6,584)

5,389

Total deferred taxation

28,137

94,148

Tax expense in the income statement

1,740,459

1,055,294

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 23.52% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

7,562,966

5,513,576

Corporation tax at standard rate

1,778,847

1,047,579

Effect of expense not deductible in determining taxable profit

133,833

1,170

Deferred tax (credit)/expense relating to changes in tax rates or laws

(6,584)

5,389

Deferred tax expense from unrecognised temporary difference from a prior period

34,721

88,759

Increase in UK current tax from adjustment for prior periods

-

15,802

Tax decrease from effect of capital allowances and depreciation

(32,883)

(92,327)

Tax decrease arising from group relief

(2,863)

(2,740)

Tax decrease from effect of adjustment in research and development tax credit

-

(8,338)

Other tax effects for reconciliation between accounting profit and tax expense (income)

(164,612)

-

Total tax charge

1,740,459

1,055,294

 

Elmhurst Energy Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

From 1 April 2023 the UK government increased the main rate of corporation tax from 19% to 25%.

Deferred tax

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Accelerated capital allowances

-

147,896

-

147,896

2022

Asset
£

Liability
£

Accelerated capital allowances

-

111,213

-

111,213

11

Intangible assets

Goodwill
 £

Software development
 £

Total
£

Cost or valuation

At 1 January 2023

1,267,998

1,913,001

3,180,999

Additions

-

272,621

272,621

At 31 December 2023

1,267,998

2,185,622

3,453,620

Amortisation

At 1 January 2023

1,267,998

1,544,559

2,812,557

Amortisation charge

-

108,492

108,492

At 31 December 2023

1,267,998

1,653,051

2,921,049

Carrying amount

At 31 December 2023

-

532,571

532,571

At 31 December 2022

-

368,442

368,442

 

Elmhurst Energy Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

12

Tangible assets

Leasehold improvements
£

Fixtures, fittings and computer equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

128,539

655,070

34,125

817,734

Additions

-

18,474

-

18,474

Disposals

-

-

(18,125)

(18,125)

At 31 December 2023

128,539

673,544

16,000

818,083

Depreciation

At 1 January 2023

111,795

590,049

6,825

708,669

Charge for the year

3,171

32,908

4,711

40,790

Eliminated on disposal

-

-

(3,625)

(3,625)

At 31 December 2023

114,966

622,957

7,911

745,834

Carrying amount

At 31 December 2023

13,573

50,587

8,089

72,249

At 31 December 2022

16,744

65,021

27,300

109,065

Revaluation

The fair value of the company's motor vehicles was revalued on 18 November 2021. An independent valuer was not involved.
The valuation was established by reviewing vehicle sale websites for comparable vehicle market values
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £4,427 (2022 - £15,001).

13

Stocks

2023
 £

2022
 £

Stocks

2,011

2,272

 

Elmhurst Energy Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

14

Debtors

Current

2023
£

2022
£

Trade debtors

2,995,207

2,117,250

Amounts owed by related parties

7,937,818

630

Other debtors

-

7,839

Prepayments

208,740

195,965

 

11,141,765

2,321,684

15

Cash and cash equivalents

2023
 £

2022
 £

Cash at bank

3,475,283

1,371,257

16

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Trade creditors

 

801,004

552,873

Amounts due to related parties

 

8,692,477

84,023

Social security and other taxes

 

870,358

591,724

Outstanding defined contribution pension costs

 

21,763

14,757

Accrued expenses

 

850,624

444,318

Income tax liability

10

101,631

1,271

Deferred income

 

1,029,300

686,222

 

12,367,157

2,375,188

17

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2023

111,213

111,213

Additional provisions

36,683

36,683

At 31 December 2023

147,896

147,896

 

Elmhurst Energy Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

18

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £128,276 (2022 - £95,056).

Contributions totalling £21,763 (2022 - £14,757) were payable to the scheme at the end of the year and are included in creditors.

19

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

         

Rights, preferences and restrictions

Ordinary have the following rights, preferences and restrictions:
All ordinary shares rank equally in terms of:
- voting rights; one vote for each share;
- rights to participate in all approved dividend distributions for that class of share;
- rights to participate in any capital distribution on winding up.

20

Reserves

Capital redemption reserve

The capital redemption reserve represents the nominal value of previously issued shares that have been repurchased by the company.

Non-distributable reserve

The non-distributable reserve arose on the revaluation of certain fixed assets. The amounts representing the equivalent depreciation are transferred to the profit and loss account reserve each year.

Retained earnings

The retained earnings represents accumulated comprehensive income for the year and prior years, transfers from the non-distributable reserve relating to depreciation realised on revaluations less dividends paid.

 

Elmhurst Energy Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:

Revaluation reserve
£

Retained earnings
£

Surplus on property, plant and equipment revaluation

(5,492)

5,492

The changes to each component of equity resulting from items of other comprehensive income for the prior year were as follows:

Revaluation reserve
£

Retained earnings
£

Surplus on property, plant and equipment revaluation

(2,289)

2,289

21

Dividends

   

2023

 

2022

   

£

 

£

Interim dividend of £48,000.00 (2022 - £39,500.00) per ordinary share

 

4,800,000

 

3,950,000

         

22

Related party transactions

Summary of transactions with subsidiaries

Advantage has been taken of the exemption provided by FRS 102 Section 33.1A not to disclose transactions with fellow group companies where subsidiary undertakings are wholly owned by the ultimate controlling entity of the group.

 

 

Elmhurst Energy Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Summary of transactions with other related parties

During the year Elmhurst Energy Systems Limited raised sales invoices amounting to £1,802 and received invoices for the purchase of an asset amounting to £30,000 from a company associated through a common director. At the year end the associated company was owed £24,000 by Elmhurst Energy Systems Limited.

During the year Elmhurst Energy Systems Limited has raised sales invoices amounting to £56,132 and purchases amounting to £17,127 from companies associated through the TIC Holdco Limited group. At the year end the these associated companies owed £7,925,253 to Elmhurst Energy Systems Limited.

During the year Elmhurst Energy Systems Limited has taken on the assets and trade of a fellow subsidiary associated through the TIC Holdco Limited group. Wages of £726,435 have been recharged to the associated company and £29,908 recharged from this company regarding pension contributions. At the year end this associated company was owed £8,601,254 by Elmhurst Energy Systems Limited.

 

23

Parent and ultimate parent undertaking

The company's immediate parent is Starpoint Holdings Limited, incorporated in England and Wales.

 The ultimate parent is TIC Holdco Limited, incorporated in England and Wales.

 The most senior parent entity producing publicly available financial statements is TIC Holdco Limited. These financial statements are available upon request from the registered office, 3 Cadogan Gate, London, SW1X 0AS.

 The ultimate controlling party is P. Dubens.