Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-312023-12-31falsetruetrue22023-01-01falsesurface preparation, specialist protective coatings, NDT and hydro testing, passive fire protection, steel fabrication, chartek application, TSA application and wall & roof cladding3false SC478720 2023-01-01 2023-12-31 SC478720 2022-01-01 2022-12-31 SC478720 2023-12-31 SC478720 2022-12-31 SC478720 2022-01-01 SC478720 c:CompanySecretary1 2023-01-01 2023-12-31 SC478720 c:Director1 2023-01-01 2023-12-31 SC478720 c:Director2 2023-01-01 2023-12-31 SC478720 c:Director3 2023-01-01 2023-12-31 SC478720 c:RegisteredOffice 2023-01-01 2023-12-31 SC478720 d:Buildings 2023-01-01 2023-12-31 SC478720 d:Buildings 2023-12-31 SC478720 d:Buildings 2022-12-31 SC478720 d:Buildings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 SC478720 d:PlantMachinery 2023-01-01 2023-12-31 SC478720 d:MotorVehicles 2023-01-01 2023-12-31 SC478720 d:FurnitureFittings 2023-01-01 2023-12-31 SC478720 d:CurrentFinancialInstruments 2023-12-31 SC478720 d:CurrentFinancialInstruments 2022-12-31 SC478720 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 SC478720 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 SC478720 d:ShareCapital 2023-12-31 SC478720 d:ShareCapital 2022-12-31 SC478720 d:ShareCapital 2022-01-01 SC478720 d:SharePremium 2023-01-01 2023-12-31 SC478720 d:SharePremium 2023-12-31 SC478720 d:SharePremium 2022-12-31 SC478720 d:SharePremium 2022-01-01 SC478720 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 SC478720 d:RetainedEarningsAccumulatedLosses 2023-12-31 SC478720 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 SC478720 d:RetainedEarningsAccumulatedLosses 2022-12-31 SC478720 d:RetainedEarningsAccumulatedLosses 2022-01-01 SC478720 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-12-31 SC478720 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-12-31 SC478720 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:ListedExchangeTraded 2023-12-31 SC478720 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:ListedExchangeTraded 2022-12-31 SC478720 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 SC478720 d:AcceleratedTaxDepreciationDeferredTax 2022-12-31 SC478720 d:TaxLossesCarry-forwardsDeferredTax 2023-12-31 SC478720 d:TaxLossesCarry-forwardsDeferredTax 2022-12-31 SC478720 c:OrdinaryShareClass1 2023-01-01 2023-12-31 SC478720 c:OrdinaryShareClass1 2023-12-31 SC478720 c:OrdinaryShareClass1 2022-12-31 SC478720 c:FRS102 2023-01-01 2023-12-31 SC478720 c:Audited 2023-01-01 2023-12-31 SC478720 c:FullAccounts 2023-01-01 2023-12-31 SC478720 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 SC478720 d:Subsidiary1 2023-01-01 2023-12-31 SC478720 d:Subsidiary1 1 2023-01-01 2023-12-31 SC478720 d:Subsidiary2 2023-01-01 2023-12-31 SC478720 d:Subsidiary2 1 2023-01-01 2023-12-31 SC478720 d:Subsidiary4 2023-01-01 2023-12-31 SC478720 d:Subsidiary4 1 2023-01-01 2023-12-31 SC478720 c:Consolidated 2023-12-31 SC478720 c:ConsolidatedGroupCompanyAccounts 2023-01-01 2023-12-31 SC478720 6 2023-01-01 2023-12-31 SC478720 7 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure
Registered number: SC478720













EGROUP SERVICES LIMITED






ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

 
EGROUP SERVICES LIMITED
 

COMPANY INFORMATION


Directors
Mr N McDonald 
Mrs L McDonald 
Mr I McDonald (resigned 6 April 2023) 




Company secretaries
LC Secretaries Limited    
Mrs L McDonald



Registered number
SC478720



Registered office
Johnstone House
52-54 Rose Street

Aberdeen

AB10 1HA




Trading Address
Tumulus Way
Midmill Industrial Estate

Kintore

Inverurie

Aberdeenshire

AB51 0TG







 
EGROUP SERVICES LIMITED
 

CONTENTS



Page
Group strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Consolidated statement of comprehensive income
10
Consolidated balance sheet
11
Company balance sheet
12
Consolidated statement of changes in equity
13
Company statement of changes in equity
14
Consolidated statement of cash flows
15
Consolidated analysis of net debt
16
Notes to the financial statements
17 - 35


 
EGROUP SERVICES LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
The directors present their strategic report and consolidated financial statements of eGroup Services Limited ("the company") and its subsidiaries (collectively known as "the group") for the period ended 31 December 2023.

Principal activities
 
The principal activities of the company continue to be that of an investment holding company. The principal activities of the group continues to be focused on: the design and manufacture of structural steel for the construction and oil and gas industries (eFab Limited); material surface preparation and specialist coatings for the construction and oil and gas industries (eBlast Limited); and the provision of non-destructive and pressure testing for the oil and gas industry (eTest Limited).
 
The group's strategic goal is working towards a truly integrated, one-stop service provision for structural fabrication in Scotland and beyond. 

Business review
 
The group's business model is to consolidate its position within Scotland and beyond, with a focus of expanding its customer base and ultimately returning value to its shareholders. During the current financial period, the directors are considering winding down its eFab Limited business as they investigate the repurposing for entering the renewables sector. The remaining trading entities of eBlast Limited and eTest Limited continue to deliver strong financial results for the group and the directors will seek to build on these entities as the focal point of the group going forward.
The results for the group show turnover for the period of £11.7m (2022 - £9.9m), with gross margin of 49.9% (2022 - 44%) and profit before tax of £1.37m (2022 - £1.0m). The group's net assets position for the period end was £7.0m (2022 - £5.7m).
On a consistent twelve-month comparison, turnover has increased, which is primarily due to a increase in customer activity.

Page 1

 
EGROUP SERVICES LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
The directors regularly review the principal risks and uncertainties affecting the group and assess the controls and mitigation strategies required to reduce the potential impact to the business. The principal risks and uncertainties are listed below.
Project risk and return
Selecting the correct projects at bid stage, taking account of delivery risk and opportunities, and balancing this with contractual and project management requirements is critical to ensuring that projects deliver positive margins. One of the key areas of focus of the continuous improvement plan put in place by management includes end to end project lifecycle management to control this.
Health and safety
The workforce engages in health and safety activity as part of the operations and service delivery. This continues to be a risk for the business and a focus for the board of directors to ensure continued investment in equipment and safe systems of work, in order to safeguard our valued workforce and the business. Our HSEQ team has deployed a clear improvement strategy in this regard.
Supply chain
Diversification of the supply chain is a contributor to success in any business. The group relies on several critical path items in service delivery which requires wide and diverse supply lines (among others, steel, paints, cladding, and magnetic film). Through more direct and strategic management of the supply chain partners and close organisational management of projects, business continuity will be guaranteed.
The orderly winding up of eFab Limited
The directors have commenced the orderly winding up of eFab Limited, including notifying affected employees, with the company's assets being realised and external liabilities settled in the normal course of business. Critical to the success of the orderly winding up plan, is the ability of these companies to generate sufficient cash from its asset base to pay down liabilities and in that respect. The directors are leading the orderly winding up of the business and are involved in all aspects of the process, retaining control and are confident that sufficient cash will be realised to settle all external liabilities in the normal course of business.

Financial key performance indicators
 
The key financial performance indicators of the group are considered to be turnover, gross margin, profit before tax and net assets, which are monitored on a monthly basis.

Future developments
 
The directors remain positive with respect to the prospects and outlook for the eBlast Limited and eTest Limited businesses.


This report was approved by the board and signed on its behalf.



Mr N McDonald
Director

Date: 20 September 2024

Page 2

 
EGROUP SERVICES 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,264,778 (2022 - £1,033,484).

The directors do not recommend the payment of a dividend for the year ended 31 December 2023 (2022 - £nil).

Directors

The directors who served during the year were:

Mr N McDonald 
Mrs L McDonald 
Mr I McDonald (resigned 6 April 2023) 

Future developments
Details of future developments can be found in the strategic report and form part of this report through cross- reference.

Financial instruments

Financial risk management
The group’s activities expose it to a number of financial risks, primarily liquidity and credit risks. The group does not use derivatives for either financial risk management or speculative purposes.
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the group monitors the timing of cash flows and aligns this with its strategic planning. Forecasts are produced to assist management in identifying liquidity requirements and maintaining adequate resources. The group's primary source of finance is any operating cash flow it generates.
Credit risk
The group’s principal financial assets are cash and bank balances and trade and other receivables. Its credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. Credit risk is managed through maintaining good customer relationships and the monitoring of credit levels and settlement periods.
The credit risk on liquid funds is limited because the counterparties are banks with credit ratings assigned by international credit rating agencies.
The group also tries to avoid having a significant concentration of credit risk, with exposure aimed to be spread over a large number of customers.

Page 3

 
EGROUP SERVICES LIMITED
 

DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company and the group's auditor is unaware; and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the group's auditor is aware of that information.

Auditor

The auditor, Anderson Anderson & Brown Audit LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Mr N McDonald
Director

Date: 20 September 2024

Page 4

 
EGROUP SERVICES LIMITED
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent; and


prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group 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 parent company and the group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the parent company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5

 
EGROUP SERVICES LIMITED
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EGROUP SERVICES LIMITED
 

Opinion


We have audited the financial statements of eGroup Services Limited ("the parent company") and its subsidiaries ("the group") for the year ended 31 December 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2023 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 6

 
EGROUP SERVICES LIMITED

 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EGROUP SERVICES LIMITED (CONTINUED)

Other information


The other information comprises the information included in the annual report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the annual reportOur 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the 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 the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


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


adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
EGROUP SERVICES LIMITED

 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EGROUP SERVICES LIMITED (CONTINUED)

Auditor's 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 Group financial statements.


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

We obtained an understanding of the legal and regulatory frameworks within which the group and parent company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, employment and health and safety legislation.
We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:

Management override of controls to manipulate the group and parent company’s key performance indicators to meet targets;
Timing and completeness of revenue recognition;
Management judgement applied in calculating provisions; and
Compliance with relevant laws and regulations which directly impact the financial statements and those that the company needs to comply with for the purpose of trading.

Our audit procedures to respond to these risks included:

Testing of journal entries and other adjustments for appropriateness;
Evaluating the business rationale of significant transactions outside the normal course of business;
Reviewing judgements made by management in their calculation of accounting estimates for potential management bias;
Enquiries of management about litigation and claims and inspection of relevant correspondence;
Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non-compliance with laws and regulation; and
Performing a disclosure checklist on the financial statements to ensure Companies Act 2006 requirements are satisfied. 


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.


Page 8

 
EGROUP SERVICES LIMITED

 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EGROUP SERVICES LIMITED (CONTINUED)

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 2006Our 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.





Graeme Penman (Senior statutory auditor)
  
for and on behalf of
Anderson Anderson & Brown Audit LLP
 
Statutory Auditor
  
Kingshill View
Prime Four Business Park
Kingswells
Aberdeen
AB15 8PU

23 September 2024
Page 9

 
EGROUP SERVICES LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
11,693,525
9,871,838

Cost of sales
  
(6,729,389)
(5,454,527)

Gross profit
  
4,964,136
4,417,311

Administrative expenses
  
(3,589,257)
(3,379,386)

Operating profit
 5 
1,374,879
1,037,925

Interest payable and similar expenses
 9 
(1,254)
-

Profit before taxation
  
1,373,625
1,037,925

Tax on profit
 10 
(108,847)
(4,441)

Profit for the financial year
  
1,264,778
1,033,484

Profit for the year attributable to:
  

Owners of the parent company
  
1,264,778
1,033,484

  
1,264,778
1,033,484

There was no other comprehensive income for 2023 (2022 - £nil).

The notes on pages 17 to 35 form part of these financial statements.

Page 10

 
EGROUP SERVICES LIMITED

REGISTERED NUMBER:SC478720

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
7,188,119
7,348,587

  
7,188,119
7,348,587

Current assets
  

Stocks
 14 
249,525
204,977

Debtors: amounts falling due within one year
 15 
3,349,592
2,935,208

Cash at bank and in hand
 16 
1,239,027
1,401,048

  
4,838,144
4,541,233

Creditors: amounts falling due within one year
 17 
(4,797,238)
(5,971,738)

Net current assets/(liabilities)
  
 
 
40,906
 
 
(1,430,505)

Total assets less current liabilities
  
7,229,025
5,918,082

Creditors: amounts falling due after more than one year
 18 
(46,224)
(59,674)

Provisions for liabilities
  

Deferred taxation
 21 
(200,282)
(140,667)

  
 
 
(200,282)
 
 
(140,667)

Net assets
  
6,982,519
5,717,741


Capital and reserves
  

Called up share capital 
 22 
100
100

Share premium account
 23 
12,941,000
12,941,000

Profit and loss account
 23 
(5,958,581)
(7,223,359)

  
6,982,519
5,717,741


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Mr N McDonald
Director

Date: 20 September 2024

The notes on pages 17 to 35 form part of these financial statements.

Page 11

 
EGROUP SERVICES LIMITED

REGISTERED NUMBER:SC478720

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
3,667,920
3,730,560

Investments
 13 
12,388,055
12,388,055

  
16,055,975
16,118,615

Current assets
  

Debtors: amounts falling due within one year
 15 
63,058
267,225

Cash at bank and in hand
 16 
54,861
117,008

  
117,919
384,233

Creditors: amounts falling due within one year
 17 
(9,792,572)
(10,589,134)

Net current liabilities
  
 
 
(9,674,653)
 
 
(10,204,901)

Total assets less current liabilities
  
6,381,322
5,913,714

  

Deferred taxation
 21 
(5,121)
(2,227)

  
 
 
(5,121)
 
 
(2,227)

Net assets
  
6,376,201
5,911,487


Capital and reserves
  

Called up share capital 
 22 
100
100

Share premium account
 23 
12,941,000
12,941,000

Profit and loss account brought forward
  
(7,029,613)
(7,354,472)

Profit for the year

  

464,714
324,859

Profit and loss account carried forward
  
(6,564,899)
(7,029,613)

  
6,376,201
5,911,487


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Mr N McDonald
Director

Date: 20 September 2024

The notes on pages 17 to 35 form part of these financial statements.

Page 12

 
EGROUP SERVICES LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
100
12,941,000
(8,256,843)
4,684,257



Profit for the year
-
-
1,033,484
1,033,484



At 1 January 2023
100
12,941,000
(7,223,359)
5,717,741



Profit for the year
-
-
1,264,778
1,264,778


At 31 December 2023
100
12,941,000
(5,958,581)
6,982,519


The notes on pages 17 to 35 form part of these financial statements.

Page 13

 
EGROUP SERVICES LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
100
12,941,000
(7,354,472)
5,586,628



Profit for the year
-
-
324,859
324,859



At 1 January 2023
100
12,941,000
(7,029,613)
5,911,487



Profit for the year
-
-
464,714
464,714


At 31 December 2023
100
12,941,000
(6,564,899)
6,376,201


The notes on pages 17 to 35 form part of these financial statements.

Page 14

 
EGROUP SERVICES LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,264,778
1,033,484

Adjustments for:

Depreciation of tangible assets
336,683
293,400

Loss on disposal of tangible assets
6,486
(136,935)

Interest paid
1,254
-

Taxation charge
108,847
4,441

(Increase)/decrease in stocks
(44,548)
74,569

(Increase)/decrease in debtors
(475,509)
883,454

(Decrease) in creditors
(451,639)
(1,958,288)

Corporation tax (paid)/received
(1,464)
1,637

Net cash generated from operating activities

744,888
195,762


Cash flows from investing activities

Purchase of tangible fixed assets
(343,764)
(119,895)

Sale of tangible fixed assets
161,063
255,965

Net cash from investing activities

(182,701)
136,070

Cash flows from financing activities

Repayment of other loans
(722,954)
(938,326)

Interest paid
(1,254)
-

Net cash used in financing activities
(724,208)
(938,326)

Net (decrease) in cash and cash equivalents
(162,021)
(606,494)

Cash and cash equivalents at beginning of year
1,401,048
2,007,542

Cash and cash equivalents at the end of year
1,239,027
1,401,048


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,239,027
1,401,048

1,239,027
1,401,048


The notes on pages 17 to 35 form part of these financial statements.

Page 15

 
EGROUP SERVICES LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

1,401,048

(162,021)

1,239,027

Debt due after 1 year

(59,674)

13,450

(46,224)

Debt due within 1 year

(3,682,450)

709,504

(2,972,946)


(2,341,076)
560,933
(1,780,143)

The notes on pages 17 to 35 form part of these financial statements.

Page 16

 
EGROUP SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

eGroup Services Limited ("the parent company") is a private limited company domiciled and incorporated in Scotland. The registered office is Johnstone House, 52-54 Rose Street, Aberdeen, United Kingdom, AB10 1HA. The trading address is Tumulus Way, Midmill Industrial Estate, Kintore, Aberdeenshire , AB51 0TG. 
The group consists of eGroup Services Limited and all of its subsidiaries (see note 13), collectively known as "the group". 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgment in applying the group's accounting policies (see note 3).

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the parent company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The group has recorded a profit before tax for the year of £1.37m (2022 - £1.0m) and at the year-end had net assets of £7.0m (2022 - £5.7m) and net current asset of £0.04m (2022 - net current liability £1.4m). Contained within current liabilities are amounts due to stakeholders of £3.0m (2022 - £3.7m). The stakeholders have confirmed to the directors their continuing support to the group, for a period of at least 12 months from the date of approving these financial statements.
The directors have reasonable assurance over the group's resilience going forward and as such, have adopted the going concern basis of accounting in preparing these financial statements.

Page 17

 
EGROUP SERVICES LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.5

Revenue

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

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

The amount of profit attributable to the stage of completion of a long term contract is recognised when the outcome of the contract can be foreseen with reasonable certainty, Revenue for such contracts is stated at the cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous years. Provision is made for losses as soon as they are foreseen. 

 
2.6

Operating leases: the group as lessee

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

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

 
2.7

Finance costs

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

Page 18

 
EGROUP SERVICES LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

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

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

 
2.10

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 19

 
EGROUP SERVICES LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Heritable property
-
2%
Reducing balance
Plant and machinery
-
15%
Reducing balance
Motor vehicles
-
25%
Reducing balance
Fixtures,  fittings and equipment
-
15%
Reducing balance

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

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

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

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

 
2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.16

Cash and cash equivalents

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

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the group's cash management.

Page 20

 
EGROUP SERVICES LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.18

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.19

Provisions for liabilities

Provisions are made where an event has taken place that gives the group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

 
2.20

Financial instruments

The group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's Balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
 
Page 21

 
EGROUP SERVICES LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.20
Financial instruments (continued)


If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Page 22

 
EGROUP SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following are considered to be other judgements that have had the most significant effect on amounts recognised in the financial statements, or estimates that are dependent upon assumptions which could change in the next financial year and have a material effect on the carrying amounts of assets and liabilities recognised at the balance sheet date:
I
mpairment of fixed asset investment (company only)
Management consider the carrying value of the company's subsidiary investments and consider the need for impairment, if appropriate. Having considered the carrying value of investments and future trading forecasts, management are satisfied that the carrying value of remaining investments is true and fair.
Useful lives of fixed assets
Management consider the expected useful lives of fixed assets when capitalising costs. This impacts the depreciation charge on an annual basis. The useful lives are based on the intended use, asset class and historical experience of the asset class within the business. Consideration is also given to potential impairments and reviews are undertaken of the fixed asset base for potential impairments or reassessments of useful asset lives.
Revaluation of heritable property
The group holds heritable property at valuation and engage professional valuers to provide refreshed fair valuation reports on a regular basis. An updated valuation was undertaken in December 2019, which was considered reflective of conditions which existed at the balance sheet date. 
The directors consider that there are no other judgements, estimates and underlying assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities. 


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Steel blasting, coating & fireproofing
9,924,006
8,388,975

Hydro and non-destructive testing
1,769,519
1,482,863

11,693,525
9,871,838


All turnover, in the current and the prior period, arose within the United Kingdom.

Page 23

 
EGROUP SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of owned tangible fixed assets
336,683
293,400

Loss/(profit) on disposal of tangible fixed assets
6,486
(136,935)

Operating lease charges
85,353
93,812


6.


Auditor's remuneration

2023
2022
£
£

Fees payable to the company's auditor for the audit of the consolidated and parent company's financial statements
16,825
15,650

Fees payable to the company's auditor in respect of:

The auditing of accounts of subsidiaries of the company
27,685
25,750


7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2023
2022
£
£


Wages and salaries
3,842,310
3,235,410

Social security costs
422,220
375,845

Cost of defined contribution scheme
74,002
63,442

4,338,532
3,674,697


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Direct
21
17
-
-



Administrative
68
67
2
3

89
84
2
3

Page 24

 
EGROUP SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
22,521
34,028

Group contributions to defined contribution pension schemes
57
723

22,578
34,751


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.


9.


Interest payable and similar expenses

2023
2022
£
£


Other interest payable
1,254
-

1,254
-


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
49,232
-

Adjustments in respect of previous periods
-
(173)

Total Corporation tax

49,232
(173)

Deferred tax


Origination and reversal of timing differences
102,626
4,614

Prior year adjustments
(43,011)
-

Total deferred tax

59,615
4,614


Taxation on profit on ordinary activities
108,847
4,441
Page 25

 
EGROUP SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 -19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,373,625
1,037,925


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
323,077
197,206

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
9,666
35,774

Fixed asset differences
38,078
22,833

Adjustments to tax charge in respect of prior periods
-
79,476

Adjustments to tax charge in respect of prior periods - deferred tax
(43,011)
-

Movement in deferred tax not recognised
(143,849)
(332,944)

Remeasurement of deferred tax for changes in tax rates
15,242
61,939

Other tax adjustments, reliefs and transfers
(89,253)
(59,843)

Marginal relief
(1,103)
-

Total tax charge for the year
108,847
4,441

Page 26

 
EGROUP SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Intangible assets

Group





Goodwill

£



Cost


At 1 January 2023
4,859,595



At 31 December 2023

4,859,595



Amortisation


At 1 January 2023
4,859,595



At 31 December 2023

4,859,595



Net book value



At 31 December 2023
-



At 31 December 2022
-



Page 27

 
EGROUP SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tangible fixed assets

Group






Heritable property
Plant and machinery
Motor vehicles
Fixtures, fittings and equipment
Assets under construction
Total

£
£
£
£
£
£



Cost or valuation


At 1 January 2023
6,414,998
4,817,737
253,320
515,394
14,910
12,016,359


Additions
-
92,383
153,068
1,042
97,271
343,764


Disposals
-
(870,733)
-
-
-
(870,733)


Transfers between classes
14,910
47,070
-
7,226
(69,206)
-



At 31 December 2023

6,429,908
4,086,457
406,388
523,662
42,975
11,489,390



Depreciation


At 1 January 2023
408,054
3,644,616
176,503
438,599
-
4,667,772


Charge for the year on owned assets
97,547
176,520
44,773
17,843
-
336,683


Disposals
-
(703,184)
-
-
-
(703,184)



At 31 December 2023

505,601
3,117,952
221,276
456,442
-
4,301,271



Net book value



At 31 December 2023
5,924,307
968,505
185,112
67,220
42,975
7,188,119



At 31 December 2022
6,006,944
1,173,121
76,817
76,795
14,910
7,348,587

The heritable property held by the group was valued at open market value of £6,415,000 on 23 December 2019 by independent Chartered Surveyors, Ryden LLP.

Page 28

 
EGROUP SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           12.Tangible fixed assets (continued)


Company






Heritable property

£

Cost or valuation


At 1 January 2023
3,915,000



At 31 December 2023

3,915,000



Depreciation


At 1 January 2023
184,440


Charge for the year on owned assets
62,640



At 31 December 2023

247,080



Net book value



At 31 December 2023
3,667,920



At 31 December 2022
3,730,560

The heritable property held by the parent company was valued at an open market value of £3,915,000 on 23 December 2019 by independent Chartered Surveyors, Ryden LLP.






Page 29

 
EGROUP SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
20,077,107


Disposals
(2,010,000)



At 31 December 2023

18,067,107



Impairment


At 1 January 2023
7,689,052


Impairment on disposals
(2,010,000)



At 31 December 2023

5,679,052



Net book value



At 31 December 2023
12,388,055



At 31 December 2022
12,388,055


Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Registered office

Class of shares

Holding

eBlast Limited
Tumulus Way Midmill Industrial Estate, Midmill, Aberdeenshire , United Kingdom, AB51 0TG
Ordinary
100%
eFab Limited
Johnstone House, 52-54 Rose Street, Aberdeen, AB10 1HA
Ordinary
100%
eTest Limited
Johnstone House, 52-54 Rose Street, Aberdeen, AB10 1HA
Ordinary
100%


14.


Stocks

Group
Group
2023
2022
£
£

Raw materials and consumables
202,645
199,044

Work in progress
46,880
5,933

249,525
204,977


Page 30

 
EGROUP SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
2,955,360
2,280,530
-
-

Amounts owed by group undertakings
-
-
61,125
267,125

Other debtors
4,610
159,241
-
-

Called up share capital not paid
100
100
100
100

Prepayments and accrued income
389,522
495,337
1,833
-

3,349,592
2,935,208
63,058
267,225


Amounts owed by group undertakings are interest free and repayable on demand. 


16.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
1,239,027
1,401,048
54,861
117,008



17.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Loans (note 19)
2,972,946
3,682,450
2,386,749
3,096,251

Trade creditors
1,107,693
1,126,448
100,624
111,272

Amounts owed to group undertakings
-
-
7,095,289
7,198,526

Corporation tax
49,232
1,464
38,333
-

Other taxation and social security
333,896
915,774
-
-

Other creditors
82,708
75,767
-
-

Accruals and deferred income
250,763
169,835
171,577
183,085

4,797,238
5,971,738
9,792,572
10,589,134


Amounts owed to group undertakings are interest free and repayable on demand. 

Page 31

 
EGROUP SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Creditors: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Loans (note 19)
46,224
59,674

46,224
59,674




19.


Loans

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Directors loans
2,833,838
3,192,544
2,261,093
2,619,797

Other loans
125,656
476,454
125,656
476,454

Energy saving trust loans
13,452
13,452
-
-


Amounts falling due 1-2 years

Energy saving trust loans
13,452
13,452
-
-


Amounts falling due 2-5 years

Energy saving trust loans
32,772
46,222
-
-

3,019,170
3,742,124
2,386,749
3,096,251

The Energy saving trust loan is unsecured, interest free and repayable in equal monthly installments of £1,121.
The directors loans are unsecured, interest free and have no set repayment terms.
Other loans are amounts due to former members of the management team, the amounts are interest free and repayable on demand. 

Page 32

 
EGROUP SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
1,239,027
1,401,048
54,861
117,008

Debt instruments measured at amortised cost
2,960,070
2,605,917
61,225
267,225

4,199,097
4,006,965
116,086
384,233


Financial liabilities

Financial liabilities measured at amortised cost
(4,519,995)
(5,223,810)
(9,754,237)
(10,589,030)


Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.


Debt instruments measured at amortised cost comprise of trade debtors, other debtors & accrued income.


Financial liabilities measured at amortised cost comprise trade creditors, other loans, other creditors and
accruals.


21.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
(140,667)
(136,053)


Charged to profit or loss
(59,615)
(4,614)



At end of year
(200,282)
(140,667)

Page 33

 
EGROUP SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
21.Deferred taxation (continued)

Company


2023
2022


£

£






At beginning of year
(2,227)
(2,227)


Charged to profit or loss
(2,894)
-



At end of year
(5,121)
(2,227)

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(232,084)
(182,641)
(5,121)
(2,227)

Tax losses carried forward
31,802
41,974
-
-

(200,282)
(140,667)
(5,121)
(2,227)


22.


Share capital

2023
2022
£
£
Allotted, called up and not fully paid



100 (2022 - 100) Ordinary Share shares of £1.00 each
100
100


As at 31 December 2023, 100 (2022 - 100) Ordinary shares of £1 each were not fully paid. 
Each Ordinary share confers the holder the right to exercise one vote per share. Profit and capital distribution (including on winding up) shall be pari passu across all Ordinary shares. The shares are not redeemable.


23.


Reserves

Share premium account

This reserve records the amount above the nominal value received in respect of the parent company's share capital.

Profit and loss account

This reserve records the accumulated distributable profits and losses made by the group and parent company net of distributions to shareholders.

Page 34

 
EGROUP SERVICES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Pension commitments

The group operates a defined contribution scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. Amounts outstanding at 31 December 2023 were £19,031 (2022 - £14,406). The charge to the profit or loss in respect of defined contribution schemes was £74,002 (2022 - £63,442).


25.


Commitments under operating leases

At 31 December 2023, the group and the parent company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
117,963
9,527

Later than 1 year and not later than 5 years
248,410
7,226

366,373
16,753

26.Financial commitments and contingent liabilities

All group companies have granted a cross guarantee and floating charge in favour of the group bankers over the assets of each company. 


27.


Related party transactions

Group
As at the balance sheet date, the group was due £125,656 (2022 - £2,717,245) to other related parties. During the year the group made loan repayments of £360,000 (2022 - £286,744) with an amount of £1,970,205 (2022 - £1,561,341) being reassigned to a director.
At the balance sheet date, the group was due £2,833,838 (2022 - £1,213,133) to a director. During the year the group made loan repayments of £349,500 (2022 - £453,700). In addition, an amount due to other related parties of £1,970,205 (2022 - £1,561,341) was reassigned to the director.
Parent company
At the balance sheet date, the parent company was due £125,656 (2022 - £1,883,117) to other related parties. During the year the parent company made loan repayments of £360,000 (2022 - £286,744) with an amount of £1,397,461 (2022 - £1,561,341) being reassigned to a director.
At the balance sheet date, the parent company was due £2,261,093 (2022 - £1,213,133) to a director. During the year the parent company made repayments of £349,500 (2022 - £453,700). In addition, an amount due to other related parties of £1,397,461(2022 - £1,561,341) was reassigned to the director.


28.


Controlling party

The parent company is controlled by Mr N McDonald, by virtue of him owning the majority of the issued ordinary share capital.


Page 35