Company Registration No. 06711038 (England and Wales)
ANAERGIA LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
LB GROUP
1 Vicarage Lane
Stratford
London
E15 4HF
ANAERGIA LIMITED
COMPANY INFORMATION
Directors
Mr H El-Kaissi
Mr M T Wilkins
(Appointed 12 March 2024)
Company number
06711038
Registered office
Unit 24
Lyndon Business Park
62 Farrier Road
Lincoln
LN6 3RU
Auditor
LB Group Limited (Stratford)
1 Vicarage Lane
Stratford
London
E15 4HF
ANAERGIA LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
ANAERGIA LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
90,087
122,050
Current assets
Stocks
213,952
102,265
Debtors
5
1,228,960
2,536,989
Cash at bank and in hand
180,715
67,645
1,623,627
2,706,899
Creditors: amounts falling due within one year
6
(1,746,951)
(1,996,920)
Net current (liabilities)/assets
(123,324)
709,979
Total assets less current liabilities
(33,237)
832,029
Creditors: amounts falling due after more than one year
7
(12,440,875)
(11,861,162)
Net liabilities
(12,474,112)
(11,029,133)
Capital and reserves
Called up share capital
8
2
2
Profit and loss reserves
(12,474,114)
(11,029,135)
Total equity
(12,474,112)
(11,029,133)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 26 September 2024 and are signed on its behalf by:
Mr M T Wilkins
Director
Company Registration No. 06711038
ANAERGIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

Anaergia Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 24, Lyndon Business Park, 62 Farrier Road, Lincoln, LN6 3RU.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

These financial statements have been prepared on a going concern basis, which presumes the realisation of assets and discharge of liabilities under the normal course of the business for the foreseeable future. The company has the committed support of its ultimate parent, Anaergia Inc., to provide any funding not available through other sources for at least 12 months from the signing of these financial statements. The ultimate parent company is listed on a public stock exchange and trades on a worldwide basis.true

 

We draw attention to the fact that as at 31 December 2023, the company had net liabilities of £12,474,112 (2022: £11,029,133).

 

The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets, settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

 

The ability of the company to continue as a going concern is dependent on a number of factors most

significantly of these is that the directors continue to procure funding for the on-going operations of the company and that the company receives support from its parent undertaking which has confirmed that it will provide the necessary financial support for at least 12 months from the signing of these accounts. These events or conditions, along with other matters set forth above, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern.

1.3
Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

In respect to long term contracts and contracts of on-going services, turnover represents the value of work done in the year, including estimates of amounts invoiced. Turnover in respect of long-term completion and contracts for on-going services is recognised by reference to the stage of completion.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

ANAERGIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
25% straight line
Fixtures and fittings
25% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

ANAERGIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

ANAERGIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Insurance Claim Provision

Insurance claims in respects to provisions are included on the basis that there is a future outflow of funds based on historical circumstances arising in the business. Judgement is made on a case by case basis taking into review all related information. Insurance claims in respects to recognised assets are included where there is a complete certainty of future inflow of funds based on claims arising from the company to third parties.

ANAERGIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 6 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Accrued/Deferred Income and Accrued Expenditure

Turnover and cost of sales are sensitive to changes in the estimated levels of accrued income and expenditure arising from long term contracts. The proportion of the contract complete and the final profit margin to be achieved have been estimated based on post year end movements and comparisons to similar contracts.

Bad Debt Provision

A bad debt provision has been included in respect of a capital contract. The year end debtor has been compared to monies recovered post year end, with a the remaining balance being provided for as there is uncertainty regarding its recoverability.

Discounting of long term trade debtors

Estimates are applied to the discounting factor in relation to trade debtors receivable over one year. When assessing the discounting factor of the long term debtors the directors consider the market value of the debt to the balance sheet date and estimate an interest rate based on the company’s financial position. The level of this interest rate in the financial statements is 8.4%.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
21
24
ANAERGIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
4
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
51,359
76,388
61,742
189,489
Additions
6,922
-
0
-
0
6,922
At 31 December 2023
58,281
76,388
61,742
196,411
Depreciation and impairment
At 1 January 2023
3,209
52,061
12,169
67,439
Depreciation charged in the year
14,122
9,330
15,433
38,885
At 31 December 2023
17,331
61,391
27,602
106,324
Carrying amount
At 31 December 2023
40,950
14,997
34,140
90,087
At 31 December 2022
48,150
24,327
49,573
122,050
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
184,992
665,637
Gross amounts owed by contract customers
23,625
701,265
Amounts owed by group undertakings
55,885
221,575
Other debtors
4,610
5,349
Prepayments and accrued income
181,260
67,453
450,372
1,661,279
2023
2022
Amounts falling due after more than one year:
£
£
Trade debtors
778,588
-
0
Gross amounts owed by contract customers
-
0
875,710
778,588
875,710
Total debtors
1,228,960
2,536,989

Intercompany balances under one year are receivable on demand and interest free.

ANAERGIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Payments received on account
102,186
86,157
Trade creditors
352,189
557,858
Amounts owed to group undertakings
907,795
1,127,337
Taxation and social security
184,960
181,343
Other creditors
8,388
(6)
Accruals and deferred income
191,433
44,231
1,746,951
1,996,920

Intercompany balances under one year are repayable on demand and interest free.

7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Amounts owed to group undertakings
12,440,875
11,861,162

Intercompany balances over one year are not repayable on demand and carry an interest rate of 5.5%. The interest rate included in the financial statements is a market led rate of borrowing based on the performance of the Company.

8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
9
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

 

Material uncertainty relating to going concern

We make reference to note 1.2 and note 13 of the financial statements in relation to the Going Concern of the company. The immediate trading future of the Company itself is secured against future contracts, however, there is a material uncertainty in relation to the trading ability of the wider group structure. It is this uncertainty, linked with related loans and balances due from the Company into the group that has resulted in a material uncertainty which exists and may cause significant doubt on the Company's ability to continue as a Going Concern.

Within note 13, there is, as per the post balance sheet disclosure, a current uncertainty in elation to the outcome of an operational insurance claim, and its impact on the company. The audit report is not modified, and our audit opinion is not qualified, in respects to this material uncertainty.

ANAERGIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Audit report information
(Continued)
- 9 -
Senior Statutory Auditor:
Richard Lane
Statutory Auditor:
LB Group Limited (Stratford)
10
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments for rent under non-cancellable operating leases, as follows:

2023
2022
£
£
21,200
-
0
11
Related party transactions

The Company has taken advantage of the exemption under section 33.1A of FRS 102 not to disclose details of related party transactions with other wholly owned group companies.

 

No further transactions occurred which requires disclosure under FRS 102 section 1A.

12
Parent company

The Company is under the immediate control of Anaergia Europe GmbH, a company incorporated in Germany whose financial statements are the smallest consolidation in which the results of Anaergia Limited are consolidated. Copies of the accounts of Anaergia Europe GmbH may be obtained by writing to Zeppelinstaße 8, D-85399 Hallergmoos, Germany.

 

The ultimate parent company and controlling party was Anaergia Inc., a company incorporated in Canada whose financial statements are the largest consolidation in which the results of Anaergia Limited are consolidated. Copies of the accounts of Anaergia Inc. may be obtained by writing to 4210 South Service Road, Burlington, ON L7L 4X5, Canada.

 

In July 2024, the main controlling party changed to Marny Investissement SA, a company incorporated in Luxembourg. Copies of the accounts of Marny Investissement SA may be obtained by writing to 205, route d´Arlon L-1150 Luxembourg.

13
Post Balance Sheet Events

Subsequent to the date of the balance sheet, the company is aware of a potential insurance claim in relation to an asset under management. The nature of, and financial impact, of the liability arising from this event is unknown as the date of approval of the financial statements.

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